There are several cafes in Milwaukee and particularly on the Eastside. With a culture of going out to eat, the neighborhood is full of potential customers. The special unique characteristics of Fresh-Milwaukee’s product offerings as well as the building itself will make it standout from the sea of it’s competitors.
ALTERRA: 1. Deli/Café…best and most widely knownfor their exceptional coffee.2. At ALTERRA we believe in connecting people who love good quality coffee. We are committed to promoting strong local communities, forging quality relationships with our suppliers and showing true respect to our environment. Beans and Barley:1. Deli, Market and Café…products are fresh, organic, and healthy from body care items to the food serviced in the deli at lunch time.2. Three principles: quality, value, and fun. Whether in fresh produce or groceries, in any of the hundreds of items from our own kitchen or in aline of vitamins, we offer quality products, fairly priced.
Roots is our closest competitor in product offerings. Fresh-Milwaukee would still maintain a competitive advantage by having the building be green as well as the utensils provided to eat with. Also offering farmers markets in the summertime will be something roots does not offer.
Green Sustainability, support local farmers and local economy, and great service. Value Props
Stage of the Industry: Introductory- Fresh-Milwaukee is creating a new segment in the food and deli industry. We have created a unique service for our consumers by providing a local café/deli that Milwaukeeans can be proud of and call their own. Stage of Service/Business: We are in the Introduction(or beginning) stages of the life cycle of our company. In this stage we are seeking to build awareness and develop a market for our business. The impact on the marketing mix is:Service branding and quality level is established, and contracts and deals are made with other organizations like the local farmers and Alterra. Pricing high pricing to recover development costs. Distribution is selective until consumers show acceptance our business. Promotion is aimed at potential consumers, also known as innovators and early adaptors. Marketing communications seek to buildawareness and to educate potential consumers about our café/deli.
This is a perceptual map of the industry for our service. Included are our top competitors…ALTERRA, Beans and Barley, and Roots. Alterra is pretty trendy and definitely affordable.Beans and Barley is slightly less trendy then Fresh Milwaukee and just a smidgen less expensive.Roots is really trendy and highly priced compared to Fresh Milwaukee.Fresh Milwaukee is the extremely trendy not only for the interior and exterior look but because it is a deli/café that is picking up on an increasing trend of fresh produce and food. And the trend of staying local. We feel this trend is just coming about but in the next 5 years it will be on the rise and Fresh Milwaukee wants to be the first to provide such a unique service.
Our competitive advantage… 1. Everything is local at Fresh-Milwaukee: Local produce to create delicious meals. Coffee brewed from Milwaukee’s local ALTERRA café. We are providing a local farmers market to the community on Sundays. 2. Eco-Friendly We have an eco-friendly building Will continue to make conscious effort to be aware of our environment and make changes to our restaurant to fit our high standards of having a “green” business
Size: All I could find for a size was from the Census and it is the accommodation and foodservices sales, in 2002… in Milwaukee: $781,697; in Wisconsin: $6,885,765.To decide on what market segments where important for our business we first figured out what kind of people will be eating at our deli/café.This is what we came up with…Demographic Segmentation: -We are targeting consumers who have a little extra spending money for dinning out. -We are aiming for consumers who range in the ages of their 20’s to their 60’s. -Both male and female consumers -All ethnicities -Local consumers and Out-of-towners to get that local Milwaukee food because Milwaukee doesn’t have many food services that offer real local foods. We want people to ask where can they get a taste of real Milwaukee food and have our name be number one the list.
Psychographic Segmentation: -Authentic, people who are genuine and care to support our local business and what it stands for. -Value time with family and friends and having a good time -Relaxed, like to feel relaxed and kick back. -Trendy -Community and creating relationships is important which is why they come to our local deli/café. -Health and fitness is of importance to our consumers. Want to be healthy so they choose healthy options. -Eco-Friendly
Behavioral Segmentation:-Usage rate: How often consumers will come to the deli/café?- medium, will probably have a few people who come on a regular basis but most of our consumers will come less than once a week and we will continue to gain new consumers.-Loyalty: How loyal are they to the deli/café? Will they keep coming back?- We will gain loyal customers by providing a unique service to our consumers which will make them want to come back again and again. We will have a changing menu with the change of the seasons according to our produce that are available.-Occasion: We are a breakfast, lunch, dinner, and snack kind of deli/café. Stop in at anytime and we’ll have something for you.-Benefits sought- The main benefits consumers look for in a service…why consumers will pick our deli/café? 1. Taste of food, 2. Economic, 3. Selection and Variety of food, 4. Atmosphere and Environment in deli/café. -Added benefits of dinning at Fresh-Milwaukee: -Consumers get a sense that they belong to a community. -Consumers are also supporting the community by choosing to eat at our deli/café and that can create a sense of happiness or fulfillment. Consumers will feel healthy and refreshed when they eat our fresh food. -They will feel that they made a smart decision and happiness again will be achieved.
We will take our market share goal and deduct our costs and that will be our profit goal. We realize this goal will be small but as a start company we hope to find investors who care about this project and are willing to donate money to our business. We want to be able to partner with the farmers in the IBM smarter cities challenge to hopefully acquire funding from that grant.
To show presence in community
Advertisement: -Alterra can advertise for us by having a poster or flyer on display in their café since we will be using their coffee and advertising for them.-Social Media advertisements on Facebook…own Facebook page and click ads on side of pages and Twitter account. -Newspaper ads and a cover story on grand opening in papers like, The Journal Sentinel and The Post. -Radio announcements of deals or special events -Web advertisements like text, click and banner ads -Other locations: Have posters and flyers on display in other stores and locations around town that our target market consumers might also gather, shop, and socialize.Promotions: -Coupons: We can have a small set of 4 coupons to distribute to return customers and new customers. We can place these little coupon books at our deli/café and when customers make a purchase hand them a coupon set. We could also place a weekly cut-out coupon in the newspaper. Our coupon book will have deals like, when you purchase a deli sandwich you get a free café drink of your choice, ect. -Punch/Reward card: We will have a punch/reward card. Public Relations: -Fresh-Milwaukee’s biggest accomplishment in PR is that we will be supporting our local farmers here in Wisconsin. -We are also an eco-friendly business. We are making a conscious effort to protect our environment and providing a great service consumers will want to be a part of. - By having Alterra coffee served at our restaurant we are supporting other local businesses which is creating a relationship and Goodwill in the business industry. - Monthly newsletter to consumers.
Market Share Goal: The Milwaukee area made $781,697 in sales in the foodservice and accommodation industry. We estimate a 1/3 of this is local/organic sales industry. Of that 1/3 we want to gain 10% of the market share.
Fresh-Milwaukee is the first of a future national chain of green cafes focused on working with local farmers and local seasonal produce.<br />Green Sustainability building<br />Solar Panels<br />Inside Décor<br />Eating Utensils<br />Produce<br />Company Purpose<br />
Competitive Analysis…<br />Competitors:<br />ALTERRA<br />Deli/Café…best and most widely <br />known for their exceptional coffee.<br />Beans and Barley<br />Deli, Market and Café…products <br />are fresh, organic, and healthy from <br />body care items to the food serviced<br />in the deli at lunch time.<br />Value propositions: Quality, Value, <br />Being Global, and Niche specialist.<br />
Competitors:<br />Roots<br />A fresh and all natural restaurant <br />with fresh local grown vegetables, and <br />naturally raised meats and fish.<br />Wisconsin’s only farmer-chef owned restaurant, that supports as many local farmers as possible. A unique farm-to-table approach supplies varying seasonal ingredients that chef John Raymond uses to create foods with the changing flavors and textures of the seasons. <br />Competitive Analysis Continued…<br />
Unmet Consumer needs in the market<br />Appealing design<br /> Superior customer relationship<br /> Niche specialist<br />Quality<br />Strong attribute or benefit <br />Corporate social programs<br />Why Fresh: Milwaukee<br />
Consumer Research<br />Beans and Barley<br />Alterra<br />Organic dining<br />Green building trend<br />Research Results<br />
Stage of Industry<br />Introduction/Growth<br />Stage of Service<br />Introduction stage: <br />building awareness and develop a market for our business. <br />The impact on the marketing mix is:<br />Service<br />Pricing<br />Distribution<br />Promotion<br />Life Cycle<br />
Marketing Environment<br />Economic:<br />Economic growth is achievable<br />Greater longevity and “win-win” for both business and community<br />Risk is moderate within consumer spending<br />Challenge is to keep local, fresh, ingredients & affordable price point<br />Cultural:<br />Trend of going ‘local’<br />Lifestyle of being environmentally conscious & community grounded<br />There is very little risk<br />Political:<br />Healthy local economy needs local business for tax revenue<br />Little opposition in the political realm- low risk<br />
Marketing Environment Continued..<br />Legal and regulatory: <br />Strict regulations in WI in regards to content & labeling<br />Moderate risk in being able to trust vendors<br />Technical: <br />High startup costs <br />Upkeep & maintenance of newer ‘green’ technologies<br />
Product Characteristics<br />Relaxed atmosphere <br />Consistent colors earth tones<br />Furniture & accessories-eclectic mix of recycled & revamped items from the local community<br />Décor will showcase local artists <br />
Our Competitive advantage:<br />Everything is local!!!!<br />We create delicious soups, salads and sandwiches with fresh produce from local farmers.<br />We serve local brewed coffee from ALTERRA.<br />Farmers Market<br />Eco-Friendly<br />Product Position …<br />
Target Market<br />Size: $781,697 for accommodation and <br />foodservices sales.<br />Demographic segmentation:<br />Income- Consumers who have a little <br />room financially<br />Age- ranges from 20’s thru 60’s <br />Gender- Male and female consumers<br />Out-of-towners and local consumers <br />
Psychographic segmentation:<br />Authentic<br />Family and friends<br />Laid-back; relaxed<br />Trendy<br />Community and creating <br />relationships<br />Health and well-being <br />Eco-Friendly<br />Target Market Continued…<br />
Target Market Continued…<br />Behavior Segmentation:<br />Usage rate: Medium<br />Loyalty: High<br />Occasion: Any and All<br />Benefits sought: Taste, Selection/Variety, Economic, and Atmosphere/socialize<br />Added benefits Fresh-Milwaukee provides: <br />Sense of Belonging and Community,<br />Fulfillment, Happiness, and Health<br />
Pricing Strategy<br />Sandwiches ranging from $8-$13<br />Soups $5-$8<br />Salads $6-$12<br />Drinks $2-$6<br /><ul><li>Coupons to bring in new customers and to reward loyal customers
Option 1: Receive free soup, salad or sandwich when food card is full
Option 2: Receive free café beverage when coffee card is full</li></li></ul><li>One Investor at least $100,000<br />IBM Smarter Cities Challenge <br />Small business loan of at least $150,000<br />10 year loan <br />6% interest $1,665.31<br />Profit Goal: to see a profit after the first 3 years.<br />Pricing Strategy<br />
Main channel<br />The café/deli<br />Other channels<br />Having booths at festivals and other public events<br />Channels of Distribution <br />
Communication Strategies<br />Advertisement:<br />ALTERRA<br />Social Networks like Facebook and Twitter<br />Newspapers The Journal Sentinel, The Post<br />Radio<br />Web advertisements<br />Other locations<br />Promotions<br />Coupons<br />Punch/Rewards Card<br />Public Relations<br />Local Farmers<br />Eco-Friendly<br />Supporting another local business<br />Newsletter<br />
$781,697 –Total of Milwaukee sales.<br />Market Share Goal:<br />1/3 of local/organic industry<br />10% of market share=$26,056<br />Revenue and Market Share Goals<br />