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VIII. Sales Projections
Price and Sales Projections (based on $1,437.00 budget)
Price
Projected
Units
Projected Net
Revenue
Retail (Business to Business AD Sales)
Banner AD (CPC Model) $0.10 1,200 $120.00
Video AD on App Open (CPC Model) $0.05 18,000 $900.00
Local Coffee Shop discount codes (Portola Coffee
Roasters) $0.03 109,500 $3,285.00
Wholesale/Dealer Price** (Apple App Store)
Full App Features Purchase $0.69 166 $115.00
Banner AD Removal $0.69 83 $52.00
Video AD Removal $0.69 125 $78.00
Monthly Coffee Club Subscription $0.69 55 $198
Projected Total Net Sales Revenue $4,748.00
** Apple App Store Takes 30% of All Sales.
Return on Investment (R.O.I.)
A ROI of 230% is expected by years-end based on a projected profit of $4,748.00, with a
range of 288% with a profit of $5,935.00 at the high end and 172% with a profit of $3,561
on the low end. The ROI has a plus minus range of 58% based on research on the volatility
of the startup App Market and high variance of the CPC model of app revenue according to
Statista.com.
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IX. Marketing
Marketing Tools
1. App Store Optimization: More than 50% of the apps are discovered via search. This
is exactly where Cup O'Joe needs to make itself visible and ASO is the answer when
it comes to discoverability.
2. Social Media: According to Statista, the number of social media users worldwide is
projected to grow to 2.95 billion by 2020. Cup O'Joe social presence is invaluable,
not just for acquisition, but also branding and community management. The Coffee
Drinker’s Community is quite strong on social media channels. Twitter, Facebook,
Instagram, are the project’s primary networks for social media promotion.
3. Influencer Marketing: Cup O'Joe will look for influencers who have followers that
fall under its target user demographics. The strategy is to reach out to them with a
proposition to get the app reviewed on their channels. This could be on their blog,
YouTube channel, a live video chat with their followers or more. The idea is to use
their influence to reach out and convince their followers to try Cup O'Joe.
4. Word of Mouth: Word-of-mouth has proven to boost marketing effectiveness by an
outstanding 54%. About 84% of people are known to act on personal
recommendations coming from their friends and family. WhatsApp will be the main
platform for promoting through word-of-mouth, with over 1.5 billion active users
worldwide according to Statista.com.
5. Paparazzi: The digital world offers multiple platforms that could give the app some
press coverage. The idea is to make sure the app is being talked about. The more
people hear about it and see it being used, the more likely they are to try it out too.
This is why the main focus is to get reviews from Caffeine Magazine, Barista
Magazine and Global Coffee Review Magazine.
6. Forums: With digital becoming the go-to place for any kind of information one is
looking for, there are plenty of forums, groups and communities that Cup O'Joe
could be discovered through. The main targets to keep the users engaged and even
drive them towards in-app conversions for effective monetization are Trip Advisor
and Coffee Geek.
7. Cross Promotion: Cross promotion is a great way to get Cup O'Joe discovered and
acquire new users. The goal is to partner up with local coffee shops that can provide
coupons, discounts etc., for clients that use the app in exchange of Cup O'Joe
promoting their shop on the app. This creates a win-win situation for both parties.
8. User Relationships: The only way to keep the users constantly engaged with the app
in a competitive market is to tap into the power of relationships. Referring to the
relation between the users that can be used to keep them engaged as well as help
the grow of the app further. The goal is to make use of this relation to drive in-app
campaigns that boost the average number of sessions per user, build user loyalty
and also drive app growth.
9. Website & Email Marketing: The total number of worldwide email accounts was 3.9
billion in 2020, according to Radicati. For ten years in a row, email generates the
highest ROI for marketers. For every $1 spent, email marketing generates $38 in ROI
and gives marketers the broadest reach of all the channels available to them. With
users logging into Cup O'Joe's website and providing email. There are plenty of
strategies that can be implemented to keep them engaged and up to date.
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10. Podcast: Podcasting will allow the brand to communicate to a captive audience.
With lifestyle on-the-go, the power to have the podcasting on demand allows the
app to promote anywhere at any time, which helps to establish authority in the
industry and create brand advocates along the way.
11. LinkedIn: From making connections to generating leads, establishing partnerships
and creating better brand awareness, LinkedIn makes an invaluable addition to Cup
O'Joe digital marketing strategy. This can create opportunities for future business
partnerships and deals for further growth.
12. App Icon: With more than 1.5 million apps in the App Store, there’s a lot of noise in
any category to have the app in. Due to that noise, many people choose to take
interest in apps, only when the app icon entices them. To make the app stand out, it
should have an icon that: Has a unique shape that stands out, has a limited pallet of
colors and little to no text.
13. Promo Video: Having a good promo video is a staple of any mobile app. It’s a quick
and easy way for someone to understand the most common use case behind the app
and how they could use it too. The goal is to take advantage of video SEO. For
example, if people search for “the best coffee app” and the YouTube video title
matches, the video will show up before the rest of the search results.
14. Run a Contest: Promoting the app does not always mean having to distribute it
ourselves across every channel. Creating a contest within the app will incentivize
the users to download the app and keep it for the remainder of the contest.
15. Signs & Flyers: While social media certainly has its benefits in helping to promote
events and generate some awareness and create a buzz around them, it’s also
important to remember some of the tried and tested marketing techniques that have
been used for years. One such technique is direct marketing and using flyers to
promote the app. The fact that the customers will physically hold the flyer means
half the work is already done. This is why it’s important to make the flyer stand out
but also ensure the main message is clear and easy to see.
Promotion
Pre-Release (July 1st 2020 through December 31st 2020)
Strategy
Cup O'Joe pre-release strategy will be called "Snowball" Operation. The idea is to
be barely noticeable at first and make each bit of outreach layer together to
create momentum over the course of the app’s development. By the week of Cup'
O’Joe’s launch, the ball is rolling, and people are buzzing. The strategy is to focus
mainly on the creation of content for social media platforms as well as
partnerships and cross promotion.
Tactics
Influencer Marketing: On the 6-month mark of the pre-release, Cup
O’Joe will partner with 6 coffee influencers on Instagram to promote the
app and let people know what the app is all about, showing features,
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videos and the many things users can do with the app. The recommended
partners are the following:
(July 1st - July 15st) – James Hoffmann @jimseven: 49.5k followers will
be in charge of informing people about the pre-release of the application
with a giveaway of a free subscription for life on his Instagram account
giving people 15 days to participate and the winner will be announced on
July 15th with the following strategy:
- Follow the app account
- Tag 3 friends
- Post the giveaway on your story
(August 16th) - Giulia Bernardelli: @bernulia: 98.7k followers will be
present on the “Resident Day” at the Santa Ana Zoo from 10:00 pm to
4:00pm at 1801 East Chestnut Ave promoting the application on his
Instagram story’s inviting people to come over to the zoo to learn more as
well as informing the people present at the event.
(September 17th) - Jeff Kennedy: @acmeandco 120k followers. On
Memorial Day, Jeff will post a promotion video of the app at 10:00am on
his Instagram account with the following caption on his post: “The person
that tags the most friends will be re-posted on my feed with a shoutout of
your Instagram account” and the winner will be announced at 9:00pm
(Monday October 5th, Friday October 9th, Tuesday October 13th,
Saturday October 17th, Tuesday October 20th, Sunday October 24th,
and Wednesday October 28th) - Etaf Rum: @booksandbeans:168k
followers will be making appearances at Hiden House Coffee 511 E Santa
Ana Blvd, Santa Ana, CA 92701 from 7:00am to 10:00pm talking with the
clients about the app while having a coffee explaining the benefits of
downloading it when it gets released.
(November 11th) On Memorial Day from 7:00am to 11:59pm - Andy
Anderson: @manmakecoffee: 209k followers will be opening another
giveaway on his Instagram account giving away another free subscription
to the app with the following strategy:
- Follow the app account
- Tag 5 friends
- Post the giveaway on your story
- Post your favorite coffee tagging the app’s Instagram account and
@manmakecoffee
(December 1st through December 31st)- Asaf Rauch:
@coffeestation_latteart: 300k followers will be posting the app’s
promotion infographic every day on his story’s and every Sunday of the
month he will post a promotion video of the app explaining what the app
is about and why it is useful for coffee drinkers.
Pre-orders/downloads:
(July 22nd, August 12th, September 23rd, October 7th, November 18th
and December 9th) On the app’s social media accounts on Instagram and
Facebook. The app will be offering pre-orders and subscriptions with a
50% discount. The main goal behind this tactic is to boost the app’s sales.
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Tuesday February 1st – Asaf Rauch: @coffeestation_latteart: 300k followers will be
sending an article to Caffeine Magazine highlighting the importance of using the app to
track caffeine intake.
Tuesday March 1st – Andy Anderson: @manmakecoffee: 209k followers will be
sending an article to Barista Magazine talking about the risks of consuming too much
caffeine and explaining how the app can help people control caffeine cravings.
Friday April 1st – Jeff Kennedy: @acmeandco: 120k followers will be sending an
article to Global Coffee Review Magazine talking about the general aspects of the app.
Saturday May 1th – Giulia Bernardelli: @bernulia: 98.7k followers will be sending
an article to Caffeine Magazine talking about the life changes the app has made on
customers that had an addiction to drinking coffee and caffeine.
Wednesday June 1th – James Hoffmann @jimseven: 49.5k followers will be sending
an article to Barista Magazine talking about the city of Santa Ana, Ca and how the
population has a high level of addiction to caffeine and how the app can help control that.
Forums: The first Monday and last Friday of the 5 months of the pre-release, reviews
on Trip Advisor and Coffee Geek will be posted talking about the benefits of
downloading the app and most importantly how it can help with caffeine and coffee
cravings while traveling. The main targets keep the users engaged and even drive them
towards in-app conversions for effective monetization. Here are the following dates and
time:
Friday January 29th – Trip Advisor
Monday February 1st - Coffee Geek
Friday February 26th - Trip Advisor
Monday March 1st – Coffee Geek
Friday March 26th - Trip Advisor
Monday April 5th - Coffee Geek
Friday April 30th - Trip Advisor
Monday May 3rd - Coffee Geek
Friday May 28th. - Trip Advisor
Monday June 7th - Coffee Geek
Friday June 25th - Trip Advisor
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X. Budget
Tactic Specifics Frequency (e.g.
daily, monthly,
quarterly)
Annual
Cost
Flyers 500 units Once $130.00
Influencer Fees 16 Pay Outs ($50.00) Per Use $800
Signs 5 unique signs Once $500
Coupon Code Cards 500 per Print ($8.25) Monthly
Cupojoe.tec Domain Domain Creation and Fees Annually $7.00
TOTAL $1,437.00