SHEFFIELD'S UNIQUE COFFEE EXPERIENCE
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Coffee etc. is a proposed new coffee shop in Sheffield that aims to provide an excellent coffee and food experience while promoting local arts and talent. The shop would target both cultured students and experienced managers in the area. It would differentiate itself through high quality products, attentive service, and hosting live music and art events. The marketing strategy involves promoting the shop's unique atmosphere and support of Sheffield culture through posters, websites, and social media.
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SHEFFIELD'S UNIQUE COFFEE EXPERIENCE
- 1. SHEFFIELD’S UNIQUECOFFEE EXPERIENCE Presented by Jason Marshgreen, Emma Richards, Tom Newman, Yuvini Hetiarachchi and Matthew Mallaby
- 2. ●●● Idea Product Concept Why Coffee? Audit Who’s the customer? Segment / Target Where do we want to be? Position / Direction How are we going to get there? 4 P’s & Retail Strategy ●●●
- 3. A new unique coffee experience in the heart of Sheffield. Coffee etc. is all about excellent coffee, savoured experiences and an expression of the local arts. We offer a diverse menu, incorporating locally sourced drinks and food made fresh in house. What makes us different to other coffee shops is our charismatic feel of our people, our environment and the way we sell coffee. As a place to unwind throughout the day, coffee etc goes on into the night, with live performances and art expeditions promoting young Sheffield talent.
- 4. ● Marketing audit ● • Expected ‘growth of 3% per year’ (Mintel Oxygen, 2014) • ‘Emerging trend towards spending not saving’ (Central Intelligence Agency, 2014) • Differentiate and tailor to local consumer needs. • ‘Increase brand loyalty through a wider product range’, especially amongst 16-24 year olds (Mintel Oxygen, 2014) • ‘Through more attentive service and relaxing environments’ (Mintel Oxygen, 2014) • ‘Later opening hours & wider menu choice’ (Mintel Oxygen, 2014) Valued at ‘£1.45 billion, 2014’ Growth in market1 2Unique product range 3A greater need ‘to slow it all down’ ‘A gap for more standout products’ ‘More attentive service, savoured experiences & relaxed atmosphere’
- 5. ● Segment / Target ● “The Cultured Student” Segment 1 “Experienced Manager” Segment 2 Whole Market (KEYNOTE, 2014)
- 6. Alice Richards 22, Coffee fanatic, love fashion and trying new things. Pulp Fiction <3, “Life is about laughing and living in good times and bad times getting through whatever comes our way. And looking back with a smile.” Friends / family / Sam xxx Follow me on Tumblr and Instagram alicerichards178 Information Activities Travelling, discovering new tastes, making documentaries, Interests Education Old school films (Shawshank redemption & Pulp Fiction), art, music, fashion, ‘helpwidelife.co.uk’! Sheffield Hallam University BA Media Studies, 2nd year Work Media Assistant at Black Pig studios (From May 2014) “The cultured student”
- 7. Geoff Stevens 47, Creative Director at TBWA, enjoy fishing, golf and visiting local cafes / pubs. Yorkshire Pride, heavy espresso drinker. Love my children & my wife Karen. Information Activities Golf, Fishing, Motorsport, Photography, dog walking, visiting cafes, theatre, exploring Europe Interests Education Pub, dinner parties, cooking, Pink Floyd, The Beatles, Bee Gees, Coffee, Wine, local ales University of Sheffield MSC Economics & Business, 1993 Work Creative Director at TWBA Sheffield, from 2010 “Experienced Manager”
- 8. ● position / direction ● Broad Narrow High Low BreadthofProductLine Value Added Differentiated marketing Strategy 'With differentiated marketing, you formulate a separate marketing mix for the two or more segments you choose to target. Specific needs are being addressed, which increases satisfaction and encourages customer loyalty' (Wood's 2010).
- 9. ● 4 p’s / retail mix ● Product Promotion Price Place PRODUCT PRICE PROMOTION PLACE STORE LAYOUT MERCHANDISING SERVICE BRANDING CHANNEL MANAGEMENT TECHNOLOGY
- 10. Menu?
- 16. POSITIONING ‘A niche, high quality, up market coffee experience’ High Value Added, Narrow Product Line CORE VALUES 1. Keep up-to-date with Trends & Consumer Needs 2. Proactive than Reactive Approach 3. Support all things Sheffield (local music, art, etc.) 4. Aims to offer a Sensational Experience BRAND PERSONALITY Unique, Creative, Cultured, Warm, Open, Charismatic
- 17. WHAT THE BRAND DOES FOR THE CUSTOMER? HOW THE BRAND MAKES YOU FEEL ? HOW WOULD THE CUSTOMER DESCRIBE THE BRAND? HOW THE BRAND MAKES YOU LOOK?
- 18. • Won’t offer deals! • Promote origin of products and unique coffee experience. • Offer discounted rates only to students for the upstairs room hire. Promotional Activities • Posters • Online Presence: • Website • App /QR Code • Social Media (Instagram, Pinterest, Facebook, Twitter) • Upon launch: give coffee samples and flyers out around Hallam square and Fargate. • Sponsor ‘Coffee Appreciation’ society at University of Sheffield. + follow @ETCCOFFEEAccess
- 19. Principle of minimum differentiation “proximity to rivals is more important than proximity to customers” (Hotelling 1929) Location Criteria • Near University • Student friendly area • High street (Cobble street) • Corner shop high footfall • Near art and music scene • 2 Storeys • 45% - 50% students Ideal Location Wicker Herbal Stores 117 Norfolk Street, Sheffield, S1 2JE Footfall & Costing • Footfall 402 per hour passing buy (Primary Research, 12:00pm) • £70,000 rent a year (shopproperty.co.uk)
- 20. Ground Floor Upstairs (everyday) ● atmospherics, layout, display, space, impulse buying ●
- 21. Impulse purchases Key locations, blocked for impact and dominance Co-ordinated display ● atmospherics, layout, display, space, impulse buying ●
- 22. ● atmospherics, layout, display, space, impulse buying ● Upstairs gig/event Upstairs – Film Night
- 23. ● Merchandising mix- depth, width, breadth, consistency, flexibility ●
- 24. ● People & SERVQUAL ● • All staff will be barista trained and coffee experts/lovers • Staff – 2 Managers, 5 full time staff, 4 part time staff • All staff will have a solid understanding of Sheffield, it’s culture and the culture of ‘Coffee.etc’ • Fair wages • Table service/meet and great • Mystery comment box • Staff incentives/bonuses • Relaxed uniform wear – black t-shirt/apron Group training and taster sessions Vintage/Rustic theme 5 step complaint process Our People Our Service
- 25. Monday Tuesday Wednesday Thursday Friday Saturday Sunday 8:00 – 18:00 8:00 – 18:00 8:00 – 18:00 8:00 – 23:00 8:00 – 23:00 8:00 – 23:00 11:00 – 16:00
- 26. Tea & Coffee Chocolate Basic Goods Water Meats Fruit & Veg Milk & Ice Cream The customer The effective supplier checklist Price – Value for money products Quality – High quality produce Reliability – Close proximity to Coffee.etc Communication - Easy to communicate with suppliers (e.g. place orders & develop relationships) Capacity – Ability to handle increased volumes of supply, perhaps at short notice “Our suppliers are in integral part of coffee.etc. We want to build long term relationships with our fellow partners, helping them to promote their businesses”. Soft drinks Alcoholic drinks
- 27. Technology used to enhance customer buying process Linked to internal stock management database. This will trigger alerts for when we need to re-order products. Our main focus is our final product (coffee) and the service within store. We will have no E-commerce site. Web & Social Media
- 28. Costings Turnover Required Cost of Rent: £70,000 (shopproperty.co.uk) X 1.5 = £105,000 X 3 = £315,000 Markup & Margins Turnover: £315,000 1/3: £105,000 1/3: £105,000 1/3: £105,000 Total staff wages = £7 p/hr X 172.75 h/r’s = £1209.25 per week Profit requirement @ 10% of turnover = £31,500 Cost of admin & Profit less above = £73,500 Footfall Turnover PA = £315,000 Average Purchase Size = £5 No Purchase Needed PA = £63,000 No Monthly Purchases Needed = 5,250 Customer Purchase to Entry Ratio = 1:1 No Customer Entries Required Monthly = 5,250 Footfall to entry = 6:1 Footfall = 402 per hour
- 29. Thank You + Follow / ETCCOFFEE
- 30. CENTRAL INTELLIGENCE AGENCY (2015). News & Information. [online]. Last accessed 24 April 2015 at: https://www.cia.gov/news-information/press-releases-statements/2014-press-releases-statements/ COSMOPOLITAN.COM (2014). 25 Alcoholic Coffee Drink Recipes That'll Wake You Up. [online]. Last accessed 24 April 2015 at: http://www.cosmopolitan.com/food-cocktails/g2284/coffee-drinks/?thumbnails HOTELLING, Harold (1929). Stability in Competition. Economic Journal 39 (153) ed., KEY NOTE (2014). Coffee & Sandwich Shops. Food, KOTLER, Phillip (1988). Marketing Management: Analysis, Planning, Implementation and Control. 6th ed., Englewood Cliffs, New Jersey, Prentice-Hall Inc. MINTEL OXYGEN (2014). Coffee Shops - UK - December 2014. SHOPPROPERTY (2015). Sheffield search. [online]. Last accessed 24 April 2015 at: http://www.shopproperty.co.uk/ [online]. Last accessed 24 April 2015 at: http://www.britishcoffeeassociation.org/ UCC COFFEE (2015). Price watch July 2014. [online]. Last accessed 24 April 2015 at: http://www.ucc- coffee.co.uk/blog/price-table.html WOOD, Marian Burk (2010). Essential Guide to Marketing Planning. 2nd ed., Financial Times/ Prentice Hall. YELL (2015). Wine, Beer, Spirit & Cider Suppliers in Sheffield. [online]. Last accessed 24 April 2015 at: http://www.yell.com/s/wine+beer+spirit+and+cider+suppliers-sheffield.html
Editor's Notes
- Won’t offer deals and price related promotions - different from the other students bars and shops, quality and experience that is worth paying for - main focus and what we promote. The upstairs hire/event room - offer discounted rates to students wanting to hire to perform music/craft fayres/ exhibitions (part of our CSR). Posters situated around the universities, notice these more than being flyered at uni enterance. Have a website and app (same use) –sell products, advise on menus/allergies/prices, promote events, way of booking hire room. QR Code, menu on this and events listing, easy way to connect and update users, most students/audience will have internet access and smartphones. Social media - media networks to interact with businesses and brands (mintel report “social and media networks” May 2014.) be expected, would use to gain recognition, create events and promote products and events, share photos etc, connect with the audience, any questions/compliments/complaints. PR on the streets would introduce them, let them sample coffees, although flyers wouldnt be a promotion used all the time, take away after they have sampled the coffee (S.M also promoted here). Sponsoring the society.. Targetting specific target audience which would appreciate our product, more likely to be repeat customers, hire the top floor out for socials.
- Why? Determining the location is key to achieve success in any business. Depending on the size, type, and product offerings the business has will help focus efforts on the right location more clearly. One model that has proved effective when choosing the location is the principle of minimum differentiation. Hotelling states “proximity to rivals is more important than proximity to customers” (Hotelling 1929) this theory suggests that being located next to rivals selling similar products will drive more business in comparison to being spread widely over a specific region. With coffee.etc being located adjacent to Starbucks, the concept idea ties in with the model, and the USP’s offered will hopefully give competitive edge. Being situated around 300 yards from Sheffield Hallam University, but also a stones throw away from the city centre allows for large numbers of student traffic, combined with local shoppers and tourists; all of which will find coffee.ets’s location accessible. With the city’s library, peace gardens, crucible snooker centre, and theatre all in close proximity it gives the hope a number of different audiences will use coffee.etc. This could also bode well in building the brand and raising awareness. It’s important that the interior of coffee.etc has a uniformed effect with the location of the café itself with regards to the rustic feel. With the chosen location having cobbled streets either side this fits in perfectly and if anything; adds to the effect of the interior. The surrounding area can play an important role in creating the desired effect also, as the handpicked items within the interior and rustic look partnered with cobbled streets, and a vintage exterior will all contribute to successfully achieving the image sought. The chosen location has two floors and this is vital as its fits directly in with our strategic plan. The option of two floors allows the added benefit of a venue style café that can offer extras such as exhibitions, cinema nights, and fashion/art launch events. This will look to draw in different types of income whilst also adding something that sets coffee.etc apart from their competitors. Hosted theme nights will take place on the second floor every two weeks, which bring with it the added benefit of not conflicting with usual business downstairs. Furthermore, the more people taking part in any events occurring are added potential customers of coffee.etc. Looking at the exterior and street position of the café its situated on the corner of the road meaning it can be identified from various positions. This can be used to advertise more effectively and gain recognition from different positions. With two large front facing windows, different mediums can be used to grab passers by attention and with it being a new concept; customer interaction is key on getting customers through the door. Age group………………………………. Footfall
- Explain key Decompression zone Want to look busier downstairs, more chilled upstairs, free flow layout.. Coffee is main product so layout is primarilty focussed on seat and tables, don’t want it to be too structured, create a relaxed space, old leathers, wood for soft rustic appeal. Atmospherics, touch – wood, old leather, Sounds – coffee machine, acoustic/folk/indie music, colours, browns, black, dark brown/reds, silver, white, smell – coffee, old leather, tastes – coffee, cakes
- Side on view. Counter is main point of product purchase/choice.. Large chalk board displaying all products/ options. Shelf for add on impulse purchases of cakes to go along side drinks as easy to take away. Display cabinet for sandwiches and drinks, real coffee machine easily visable… on the right side is where theres a window so this would be seen from outside too.. Also make use of window display, with coffee products. Middle two shelving units are the key hot spots as they’re next to the stairs which many will walk past to go upstairs, one next to coffee will be blocked out with coffee, as this is expected to be the main physical product customers will buy so we’d give this larger space elasticity. Then we have mugs and flasks which re our own branded products. Shelving to the right is a themed displays, this wont sell as much and aren’t add on products. We would also a promotional space upstairs for local businesses e.g arts/jewellery to hire to sell their work.
- Examples of how our layout and space will change for various events we hold. Depending on what is desired furniture can be moved. The right corner will always be the main focus area as it keeps space for the exit and guides people through to the whole room, its effectively at the end of walk through of the store.
- Wages – Increased wages heightens the skill set of applicants allowing for a more motivated, educated, and willing team. Taster and training sessions – Results in staff knowing about taste, quality, and improves bonding. This then transfers onto the customer who want to know about where the products are sourced, and how they taste and smell. Feedback from customers through the ‘throw in box’ – any improvements will be worked upon and checked weekly. This will come up in each training session meaning problems become eradicated quickly. Vintage – warm surroundings with intriguing and ‘instagram worthy’ interior improves the overall experience and gives visual stimulation alongside intriguing 5 step complaint process – Acknowledge the problem and thank them for bringing it to our attention/apologise/ask questions in a caring manner/ask what would be a suitable solution/resolve and ensure they feel a lot happier about the situation Table service with seat and greet – Seating people at the table allows for a friendly greeting, and gives the chance to talk about specials and give recommendations Uniform – relaxed atmosphere fits in with the overall theme – comfortable work wear could also motivate staff Staff incentives – Incentives motivate staff to work harder and allowing them to keep their own tips is also a huge boost to morale and motivation