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Market Plan: Cafe

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Marketing Plan



Table Of Contents

1 Executive Summary 2

2 Situation Analysis 3

2.1 Market Summary 4

2.1.1 Market Demographics 5

2.1.2 Market Needs 6

2.1.3 Market Trends 7

2.1.4 Market Growth 9

2.2 SWOT Analysis 10

2.3 Competition 14

2.4 Services 14

2.5 Keys to Success 16

2.6 Critical Issues 16

2.7 Macro Environment 17

3.0 Marketing Strategy 17

3.1 Mission 18

3.2 Marketing Objectives 19

3.3 Financial Objectives 20

3.4 Target Marketing 20

3.5 Positioning 22

3.6 Strategy Pyramids 22

3.7 Marketing Mix 24

3.7.1 Services and Service Marketing 24

3.7.2 Pricing 24

3.7.3 Promotion 25

3.7.4 Service 26

3.8 Marketing Research 27

4.0 Financials, Budgets, and Forecasts 27

4.1 Break-even Analysis 28

4.2 Sales Forecast 29

4.3 Expense Forecast 30

4.4 Linking Sales and Expenses to Strategy 32

4.5 Contribution Margin 33

5.0 Controls 34

5.1 Implementation Milestones 35

5.2 Marketing Organization 36

5.3 Contingency Planning 37

Executive Summary

The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in this Internet Cafe business plan a reality in the year 2003 in few states in India. This plan is for Indian Markets only.

Internet Cafe, unlike a typical cafe, provides a unique forum for communication and entertainment through the medium of the Internet. Internet Cafe is the answer to an increasing demand. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) a place to socialize and share these experiences with friends and colleagues.

Marketing will play a vital role in the success of Internet Cafe. Internet Cafe must build a brand around the services it offers by heavily promoting itself through local television, radio, and print advertising. Marketing efforts are just beginning by the time a potential customer enters Internet Cafe for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer satisfaction.

Target markets include:

* Students from nearby housing centers.

* Business people from the downtown business centers and professional buildings.

* Seniors from nearby retirement facilities.

* Family members - People who have relatives abroad. This group is very large in few states in India especially states like Kerala where minimum one member from each family living abroad.

Situation Analysis

Internet Cafe opened its doors for business a little over a year ago. Business is good, and customers have been impressed with our offerings, but we need to focus our efforts on implementing the strategies, programs, and tactics outlined in the original business plan.

Differentiating ourselves from other more traditional cafes has given us the ability to effectively compete on the beverage and pastry side of the business with the already entrenched competition. Sales are brisk and in-line with projections.

The Internet services side of the business is rapidly being accepted by the local community. Memberships are meeting the projections outlined in the business plan, and sales of Internet services are meeting the goals forecast. Students love to gather for late-night sessions, nearby seniors are getting a glimpse of what the Internet offers and local business people love to stop by for a quick bite and an email check.

Market Summary

Internet Cafe is faced with the exciting opportunity of being the first-mover in the local cyber-cafe market. The consistent popularity of coffee/tea, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results here.

All three target markets for the Internet Cafe service are growing at a relatively fast pace. We're faced with a large number of potential customers, and we're offering a needed service.

Target Market Growth:

* University students continue to grow at a steady pace, at nearly 7-10%

* Office workers in the downtown area and nearby professional buildings continue to add value, growing at 8%

* Seniors are becoming an important part of downtown business, growing at almost 7%

* Teens continue to play a major role in downtown foot-traffic, growing at 2%

* The number of people going abroad is growing at 4%

Office workers - I have clubbed both workers group with people who have family members abroad.




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