The Daily Grind marketing plan

Case 4:
The Daily
Grind
May 2017
Armenush Archuniani

Content of marketing plan
• Executive summary
• Situational analysis
• Marketing strategy
• Financial projection
• Implementation control

Executive Summary
The future owner of coffee shop, George has an experience of working as an
barista for last 4 years, and have the dream to open his own coffee shop. He
did lots of environmental observes and find out very important information
for starting this business.
The coffee shop will operate in a 90 square meters foot place within a great
location in Cuba street, close to student hostels and Victoria University, on
the way of Massy University students to the city center, so the coffee shop is
in high foot traffic area and the key target of coffee shop will be the students.

Continue…
The Daily Grind coffee shop is determined to become a daily necessity for
local coffee addicts, a place to dream of as you try to escape the daily stresses
of life and just a comfortable place to meet your friends or to read a book, all
in one. With the growing demand for high-quality coffee and great service,
Daily Grind coffee shop will capitalize on its proximity to the Victoria
university to build a core group of repeat customers. It will offer its
customers the best prepared coffee in the area that will be complimented with
pastries, as well as free books that its customers can read to enjoy their visit.

Situational analysis
– It recognized the fact that a comprehensive, strategic marketing
plan is required to ensure profitability and success.
– Situational analysis also include:
• Project at glance
• Market needs
• SWOT analysis
• Key to success

Project at glance
 Shop name : The Daily Grind
 Product :
 Location :
 Capacity : 30 people
 Raw material :
 Land : 90 square meters
 Labor :
 Cost of Project :
All types of coffee such as black coffee, flat
whites & etc. Cupcakes and daily special cake
offer, snacks, croissant, breakfast options.
An area close to student hostels & Victoria
university of Architecture and design and also
the way of Massey university students to city
center, so It is really high foot traffic place.
Coffee, sugar, water, milk, cream & etc.
For servicing 30 people and for take-out
orders 5 employee is enough, George himself
will be the barista and managing the coffee
shop and others which willing to be university
students will work in coffee bar and service
the tables and customers & take care of bills.
Discuss in next slide and in calculating break-
even point.

Costs to Open a Coffee Shop
 Rent and build-out costs for coffee shop location. In this case the rent of 90 square meters coffee
shop is 500$ per meter per year which equals 45000$ for the whole year and monthly 3750$.
 coffee shop equipment, including a top-of-the-line espresso machine, espresso and coffee grinders,
blenders, gourmet drip coffee brewers, refrigerator, tables, chairs, etc. which equals to 90000$
 coffee, milk, chocolate, syrups and other drink ingredients as well as pastries, muffins and other
baked goods, which calculated in details in calculating break-even point.
 Professional fees for architects, attorneys, accountants and business consultants.
 Payroll costs, including wages, benefits, payroll taxes, worker’s compensation and costs of payroll
processing.
 Principal and interest costs (if George have plan to borrow money).
 Income taxes (usually a specific percent of operating profit).
 Other expenses, including business insurance, supplies (napkins, stir sticks, porcelain cups, etc.),
licenses and permits, office supplies, utilities, advertising, and repairs and maintenance.

Objectives
 To become a daily necessity for local coffee addicts, a place to dream of as you try to
escape the daily stresses of life and just a comfortable place to meet your friends or to
read a book, do your university projects, etc. all in one.
 Offer customers the best prepared coffee in the area that will be complimented with
pastries that always satisfied customers.
 Store design that will be both visually attractive to customers, and designed for fast and
efficient operations.
 Become selected as the "Best New Coffee Bar in the area" by the local restaurant guide.
 Turn in profits from the first month of operations.
 Provide a great working environment for workers which can bring more following
customers because of respect behavior in coffee shop.

SWOT Analysis
Strengths:
George experience for 4 years of working as barista, and know about how a
coffee shop works.
The name of the coffee shop (The Daily Grind), which reminds the customers
the fresh coffee which coffee shop served them everyday.
Friendly and convenient area.
The freshest & high quality coffee, because of the large number of roasters
existing in New Zealand, so he have the large number of suppliers.
The fact that coffee shop is in the special location which has high foot traffic
and in addition It is near art university, and art field students are one of the
key customer segments of coffee shops.
Cheaper prices which is very intensive for students.
Workers who are students and are a link to customers and are a source of
promotion.

Continue…
Weaknesses:
 Large number of coffee shops which bring high competition in New Zealand.
 Lack of Georg money sources or budget.
 Universities are closed in summers.
 Because the employees are students, so because of class timing and days,
graduation or other reasons, they should be changed frequently.
 The coffee shop is on a small scale; have a limited space to sit, small bar, etc.

Continue…
Opportunities:
 Environmental observe/market research which George done about demands, prices, etc.
 Low cost workers which can be hired from university students.
 Strong WOM, and because majority of customers are students, so coffee shop can have
strong relationship with customers through social media platforms, such as instagram etc.
 Strong culture of coffee drinking in New Zealand.
 Coffee shop can take part in university events such as Conferences, and It is a good way of
promotion.
 Coffee shop can be an area for students exhibition.
 Through artistic design it can turn to a hangout place for students.
 Provide online/telephone order system.
 The Coffee shop can be an area for watch and review movies, watching football matches, have
stand up comedies nights, different kinds of games such as pantomime, monopoly, etc.

Continue…
Threats:
 High bargaining power of customers, because of large number of coffee shops.
 Price of raw materials increase, so there will be a raise in the products prices.
 High competition in New Zealand, because of large number of coffee shops.
 Vending machines which sell different kinds of coffees, snacks with low prices in offices,
colleges, departmental stores and places. Or even home coffee maker machines.
 The risk of Substitute places, such as places for drinking alcoholic drinks, karaoke clubs,
etc.
 Threat of new entrants inside the university campus or out around the university.
 Bargaining power of suppliers and customers.

Market Need
 Kiwis are very particular about their daily cup of coffee, so the quality, coffee consistency
and taste is very important, and stability in quality and taste is more important.
 Our customers are well educated and interested in partaking of new experiences. Keeping
the menu and the entertainment offerings “Fresh" will remain a constant challenge to the
business.
 The customers are students, so they are price intensive and there is competitive pricing.
 The students need high speed service, because usually they are in hurry, so waiting time is
one of the key factors.
 Students always looking for convenience place where they can enjoy their time and limited
siting time and charging them for service is not very interesting for them, so long business
hour is important.

Key to success
Store design that will be both visually attractive to customers,
and designed for fast and efficient operations.
Marketing strategies aimed to build a solid base of loyal
customers, as well as maximizing the sales of high margin
products, such as espresso drinks.
Create positive WOM and power of social media to increase the
number of loyal customers.
Hire conscientious employees with positive attitudes.
The product quality and stability in it(Consistency).
Building a strong relationship with the local community gives
you competitive advantage over other coffee shops in
neighborhood.
Continual innovation and development of service, for example
show off programs & etc.
Offer free wireless Internet (Wi-Fi) which these days is very
important for student segment.

Marketing strategy
 Using Guerrilla Marketing Strategies for Coffee Shop, such as promotion programs, giving samples, take part in university events,
etc.
 As a matter of fact, It is cost effective to use WOM and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo,
SnapChat, Google+ and other platforms to promote.
 Give discounts for posting on social media, such as “If you post and tag us on Instagram you can get 10% discount.
 Giving group discounts: “ When you buy 5 drinks you can get a cup for free. ”
 Using influencers, such as artists, singers, actors in entertainment programs, and partner with small businesses, so that we can
promote each other.
 Using Loyalty cards such as Bellycards, which is one of the ways to track spending habits, and count points for rewards, such as
discounts, free cupcakes, etc.
 Offer free drinks for friend recommendations. “Bring a friend in for their first time and you get a free small coffee!”
 Give out “Free Drink” coupons in the local communities, Sent out free drink mailers to the neighborhood so we could get to know
the community.”

Vision
Become selected as the "Best New
Coffee Bar in the area" by the local
restaurant guide and build a Friendly
coffee business that will serve as a
Stress Reliever to our customers, and
at the same Meet Their Needs when it
comes to COFFEE.

Mission
The Daily Grind Culture will make its best effort to create a
Unique place where customers can Socialize with each other in a
Comfortable and Relaxing Environment while enjoying the best
coffee and pastries.
We will be in the business of helping our customers to relieve their
daily stresses by providing Piece Of Mind through great
ambience, convenient location, Friendly Customer Service, and
products of consistently high quality.

Purpose
Serve high quality coffee to
customers in a convenient and
friendly atmosphere that will be
a great meeting ground.

Target market
 University students, teachers, workers and their friends
which want to meet each other for any reason.
 Coffee shop neighbor stores, offices owners, workers, etc.
 Artists, actors, etc.
Students…
Around stores,
offices… workers
Artists, actores,…
Others

Advertisement
 Using social media platforms, such as Instagram, Facebook ,Twitter, LinkedIn, Badoo, SnapChat,
Google+ and other platforms to get more customers to coffee shop.
 In the bus stops and public transportation stations around the coffee shops we can have banners or give
discount coupons, because majority of students use public transportation.
 Coffee shop can place QR codes dotted around the city that could only be scanned between the hours of 12
noon and 1 pm each day. Between these times the QR codes were visible because the sun was at its highest
in the sky. Customers scanned a code & they were taken to Daily Grind homepage where they could
browse reduced price items. And even coffee shops can use QR codes on papers or cards.
 Sponsor relevant community programs, such as events in university, etc.
 Send out introductory letters to multinationals, embassies, and diaspora organizations and networks in
and around coffee shop location.
 Employees can wear coffee shop branded shirts during work hours, or something similar, such as caps, or
anything else.

Positioning
A place away from the home, collage,
university or work place for the young and
the young at heart to not only enjoy a cup
of perfectly brewed coffee but also spend
their time in an ambient environment to
relax from the daily stresses and gain
memorable experiences, such as play
musical instruments, art exhibitions, etc.

Marketing mix
Pricing
Coffee shop willing to offer high quality products in affordable prices. Because of
large number of coffee shops as we said, the competition in this market is very high,
in addition our majority of customers are students and They are very price-
intensive and belonging to low income group, so we should follow competitive
pricing model and minimize prices in comparisons to other coffee shops in neighbor
area.
So by taking these factors and considering the raw material, place, employees and
other expenses/costs, George want to sell black coffees at 4.00$ per cup and all
others at 4.50$ per cup.

Continue…
Distribution
 To begin, The Coffee shop will serve the products in its place, and have take-out option.
 Afterwards coffee shop will accept online/telephone based orders and deliver them by
delivery man (with minimum price order, for example up to 25$)

Continue…
Promotion
 Coffee shop is located in high foot traffic area, so we have the chance to be in front of the eyes of
bunch of potential customers.
 Using social media platforms to promote an upcoming event at coffee shop like a poetry reading,
hosting the work of a talented local artist, a comedy night or an evening class in cupcake making.
 Giving away a free sample in events, such as university events, etc. to prospective customers.
 Pavement signs that attract customers to coffee shop, are eye catching, informative and can be
read really quickly by fast walking passers. This is for passers by which coffee shop can mention
daily specials, such as soup, meal deal (buy a coffee and a cake for discount), etc.
 We explain about other ways of promotions in advertisement part(slide18).

Continue…
Customer services
 Relationships are the key to success in this business. So listening to customer needs and their taste and preferences is important,
but most of the coffee shop business owners know about this fact and it will not provide a competitive advantage for coffee shop.
 The first and last impression is very important, greet the customer with a smile, learn the names of customers, relate to every
customer as an individual, thank them for coming in and invite them to come again, etc.
 Coffee shop as we said can use loyalty cards to keep records of customers, and understand the most types of coffees or cakes or
snacks which customers ask for them.
 Coffee ordered, orders barked across and qualified correctly, the person who took the order has ensured that someone is
delivering it, and follows up nicely with the upsell.
 Try to get feedbacks from the customers to understands the biases, and take care of them, if there is a need to add or omit
something from menu, how to work in rush hours, etc.
 Make surprises for customers time to time, for example inviting local actors, singers, instrument players, etc. or if is customer
Birthday serve free cupcake or coffee or anything for the birthday girl/boy or play birthday music for him/her, etc.

The Daily Grind STP
Segment Target Group Positioning
People who are
studying or working
in the university and
wanted to have a cup
of coffee with a good
atmosphere and
facilities.
The Target group
mainly is university
students which
mostly belong to
low income group
Relax and enjoy
your coffee –
Lot can happen
over coffee

Financial Projection
Break Even Point
‫کافیشاپ‬‫در‬‫سال‬2‫هفته‬‫تعطیل‬‫است‬(‫سال‬‫نو‬‫و‬‫عید‬‫پاک‬)،‫بنابراین‬50‫هفته‬‫باز‬‫است‬.
‫ساعات‬‫کاری‬‫کافیشاپ‬‫از‬7‫صبح‬‫تا‬10‫شب‬‫خواهد‬‫بود‬.
‫هزینه‬‫هر‬‫نیروی‬‫کار‬‫با‬‫در‬‫نظر‬‫تمام‬‫هزینه‬‫های‬‫آن‬(‫بیمه‬...)‫ساعتی‬12‫دالر‬‫است‬(‫در‬‫جمع‬5‫کارگر‬‫با‬،‫جرج‬‫که‬‫در‬‫هزینه‬‫ها‬‫جرج‬‫را‬
‫حساب‬‫نمی‬‫کنیم‬).
‫طبق‬‫برآوردها‬‫میزان‬‫تقاضای‬‫قهوه‬americano،espresso‫و‬long black20‫درصد‬‫خواهد‬‫بود‬‫که‬‫هر‬‫لیوان‬‫آن‬4.00‫دالر‬‫فروخته‬
‫خواهد‬،‫شد‬‫در‬‫حالی‬‫که‬‫میزان‬‫تقاضای‬‫قهوه‬flat white،latte‫و‬cappuccino80‫درصد‬‫خواهد‬‫بود‬‫که‬‫هر‬‫لیوان‬‫آن‬4.50‫دالر‬‫فروخته‬
‫خ‬‫واهد‬‫شد‬،‫بنابراین‬‫قیمت‬‫فروش‬‫میانگین‬‫برابر‬4.40‫دالر‬‫خواهد‬‫بود‬.
P= (0.2*4) + (0.8*4.5) = 4.4$
15h*12$*4L=720$

Continue…
‫هزینه‬،‫دکور‬‫میز‬‫و‬‫صندلی‬‫و‬‫لوازم‬‫آشپزخانه‬90000‫دالر‬،‫است‬‫و‬‫با‬‫توجه‬‫به‬‫هزینه‬‫اسقاط‬‫و‬‫مقدار‬‫پولی‬‫که‬‫می‬‫تواند‬‫از‬‫فروش‬
‫آن‬‫ها‬‫به‬‫دست‬،‫آورد‬‫هزینه‬‫استهالک‬‫آن‬‫روزانه‬20‫دالر‬‫در‬‫نظر‬‫گرفته‬‫شده‬‫است‬.(‫به‬‫صورت‬‫فرضی‬)
‫هزینه‬‫بهره‬‫روزانه‬25‫دالر‬‫در‬‫نظر‬‫گرفته‬‫شده‬‫است‬.(‫به‬‫صورت‬‫فرضی‬)
‫هزینه‬‫برق‬‫ماهانه‬360‫دالر‬‫در‬‫نظر‬‫گرفته‬‫شده‬‫است‬.
‫هزینه‬‫اجاره‬‫ساالنه‬‫برابر‬‫است‬‫با‬45000،‫دالر‬‫بنابراین‬‫ماهانه‬‫برابر‬‫است‬‫با‬3750‫دالر‬.
‫اگر‬‫قیمت‬‫هر‬‫لیتر‬‫شیر‬2.5$‫در‬‫نظر‬‫گرفته‬‫شود‬(‫با‬‫توجه‬‫به‬‫جدول‬Cost of Living in New Zealand‫که‬‫در‬‫منابع‬‫لینک‬‫آن‬
‫موجود‬‫است‬)‫و‬‫این‬‫نکته‬‫که‬‫برای‬‫درست‬‫کردن‬‫سه‬‫نوع‬‫قهوه‬flat white،latte‫و‬cappuccino200‫میلیگرم‬‫شیر‬‫الزم‬‫هست‬‫و‬
‫این‬‫نوع‬‫قهوه‬‫ها‬80‫درصد‬‫تقاضا‬‫را‬‫تشکیل‬‫می‬،‫دهند‬‫بنابراین‬‫هزینه‬‫شیر‬‫برابر‬‫است‬‫با‬0.4$‫برای‬‫هر‬‫لیوان‬.
90*500=45000/12=3750$
2.5 * (200/1000) * 0.8 = 0.4$

Continue…
‫متغیر‬ ‫هزینه‬ ‫روزانه‬ ‫ماهانه‬
‫هزینه‬
‫ثابت‬
0.30$ ‫لیوان‬ ‫هر‬ ‫قهوه‬ ‫هزینه‬ 125$ 3750$ ‫اجاره‬
(33.45/2500)*0.5=0.00669$ ‫لیوان‬ ‫هر‬ ‫شکر‬ ‫هزینه‬ 12$ 360$ ‫برق‬
(0.4)*(0.3) = 0.12$ ‫بیرون‬ ‫صورت‬ ‫در‬ ‫درپوش‬ ‫و‬ ‫لیوان‬ ‫هزینه‬‫بری‬ 20$ ‫استهالک‬
0.40$ ‫لیوان‬ ‫هر‬ ‫شیر‬ ‫هزینه‬ 25$ ‫بهره‬
0.82669$ ‫جمع‬ 720$ ‫نیروی‬‫کار‬
902$ ‫جمع‬

Continue…
Break-Even point=(902)/(4.4 – 0.82669)= (902)/(3.57331)=
252.427021

Revised from:
 http://www.bplans.com/coffee_shop_business_plan/executive_summary_fc.php
 https://www.ukessays.com/essays/marketing/objective-of-one-shot-coffee-shop-
marketing-essay.php
 http://www.entrepreneurmag.co.za/advice/business-plans/sample-business-plans-
link/coffee-shop-business-plan/
 http://espresso101.com/newsletter/352
 https://www.numbeo.com/cost-of-living/country_result.jsp?country=New+Zealand
 http://www.crimsoncup.com/coffee/how-much-does-it-cost-to-open-a-coffee-shop
 Etc.

The Daily Grind marketing plan

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