Marketing Marketing StrategyStrategy

forfor

Café de Café de VilleVille

Prepared for: The Lefèvre FamilyPrepared for: The Lefèvre Family

Prepared by:: AlexandriaPrepared by:: Alexandria & & Pierre-Louis LefèvrePierre-Louis Lefèvre

aka Liz Long & Janeth Solorzanoaka Liz Long & Janeth Solorzano

Proposal Outline for Café de Café de VilleVille

1.1. Introduction to CafIntroduction to Caféé de Ville de Ville

2.2. Strategic VisionStrategic Vision

3.3. Jersey City: OverviewJersey City: Overview

4.4. Economic FeaturesEconomic Features

5.5. Target MarketsTarget Markets

6.6. Strategic PlanStrategic Plan

7.7. CafCaféé de Ville de Ville’’s Business Plans Business Plan

8.8. Competitive ForcesCompetitive Forces

9.9. Management & BenefitsManagement & Benefits

10.10. SWOT AnalysisSWOT Analysis

11.11. Marketing PlansMarketing Plans

Café de VilleCafé de Ville

• Owners: Owners: AlexandriaAlexandria & & Pierre-Pierre-Louis Louis LefèvreLefèvre

• Family owned businessFamily owned business

• Established: 1958 by Established: 1958 by LefèvreLefèvre familyfamily

• Product: Bread Company & CafeProduct: Bread Company & Cafe

• Plan: Relocate to USA from FrancePlan: Relocate to USA from France

• Place: Jersey City, NJPlace: Jersey City, NJ

• Target Date: December 1, 2011Target Date: December 1, 2011

STRATEGIC VISIONSTRATEGIC VISION

• To provide the best coffee house To provide the best coffee house experience by offering quality experience by offering quality and freshly baked specialty and freshly baked specialty breads and genuine service in a breads and genuine service in a casual atmosphere that gathers casual atmosphere that gathers (converges, strengthens, stitches) (converges, strengthens, stitches) the academic community. the academic community.

• To provide an effective and To provide an effective and efficient café while providing efficient café while providing guaranteed excellent quality and guaranteed excellent quality and satisfaction to our customers.satisfaction to our customers.

Jersey City: OverviewJersey City: Overview

• Population: (2000 US Census): Population: (2000 US Census): 240,055240,055

• Area: 14.9 square milesArea: 14.9 square miles

• Settled: 1660Settled: 1660

• Founded: 1838Founded: 1838

• Median age:  34.8 yearsMedian age:  34.8 years

• Median household income: $46,813 Median household income: $46,813

Jersey City: OverviewJersey City: Overview

• Part of Metropolitan areaPart of Metropolitan area

• Historical townHistorical town

• Commercial & industrial centerCommercial & industrial center

• Melting pot with many different culturesMelting pot with many different cultures

• Up and coming community, ever changingUp and coming community, ever changing

• Centrally located Centrally located

• Several Fortune 500 corporationsSeveral Fortune 500 corporations

• 3 Colleges & 6 High Schools in town3 Colleges & 6 High Schools in town

LOCATION, LOCATION, LOCATION, LOCATION, LOCATION LOCATION

768 Montgomery Street768 Montgomery Street• Property readily available to rentProperty readily available to rent

• Across from Saint Peter’s CollegeAcross from Saint Peter’s College

• Saint Dominic’s High School nearbySaint Dominic’s High School nearby

• Hudson Catholic High School nearbyHudson Catholic High School nearby

• Well traveled neighborhoodWell traveled neighborhood

• Busy street for commutersBusy street for commuters

• Student Center opening across the streetStudent Center opening across the street

Future Saint Peter’s College Student CenterMay 2012

FutureFuture Café de VilleCafé de Ville December December 20112011

ClustersClusters

• Carlo’s BakeryCarlo’s Bakery

• Shelley’s Shelley’s

• Shop RiteShop Rite

• BJsBJs

• PathmarkPathmark

• Jetro’s Jetro’s

• Monte Leone’sMonte Leone’s

• Wonder BagelsWonder Bagels

• This will ensure the availability of superior resources for production

• This will give us a network of business partners that we can form a relationship with

• Higher productivity as well as higher profitability will be achieved

Clusters of SchoolsClusters of Schools

Economic FeaturesEconomic Features

• Number of full-service restaurants: 369Number of full-service restaurants: 369•

The food industry is promising and not The food industry is promising and not over saturatedover saturated

• Adult obesity rate: Adult obesity rate: Here:  22.8%New Jersey:  23.3%Here:  22.8%New Jersey:  23.3%

• There is a need for healthy and fresh food There is a need for healthy and fresh food for a region that the adult obesity rate is for a region that the adult obesity rate is catching up with the state’s average rate.catching up with the state’s average rate.

EconomicsEconomics

Unemployment as of 2010 is higher in Jersey City Unemployment as of 2010 is higher in Jersey City compared to the state.compared to the state.

11.1% in Jersey City11.1% in Jersey City

9.6% New Jersey9.6% New Jersey

We will be providing more jobs for the Jersey City We will be providing more jobs for the Jersey City community by opening 3 locations.community by opening 3 locations.

Target Market:Target Market:

• The target market are college students, faculty and The target market are college students, faculty and staff.staff.

• For example, Saint Peter’s College “ has an For example, Saint Peter’s College “ has an enrollment of approximately 3,000 full-time and enrollment of approximately 3,000 full-time and part-time students” (3111)part-time students” (3111)

Saint Peter’s CollegeSaint Peter’s College

• American Indian/Alaskan Native 0%American Indian/Alaskan Native 0%

• Asian/Pacific Islander 9% Asian/Pacific Islander 9%

• Black/Non-Hispanic 19% Black/Non-Hispanic 19%

• Hispanic 23% White/Non-Hispanic 30% Hispanic 23% White/Non-Hispanic 30%

• Non-Resident Alien 3% Non-Resident Alien 3%

• Race/ethnicity unknown 17% Race/ethnicity unknown 17%

Strategic PlanStrategic Plan

• Lease building in January 2011, bargain down Lease building in January 2011, bargain down lease rateslease rates

• Start to form relationship with other similar Start to form relationship with other similar industries in areaindustries in area

• Start reconstruction- finish May 2011Start reconstruction- finish May 2011

• Partially open in June 2011 offering few itemsPartially open in June 2011 offering few items

• Grand opening on December 1, 2011Grand opening on December 1, 2011

COMPANY OBJECTIVESCOMPANY OBJECTIVES

• Open 3 bakery-cafés in Jersey City by 2012; Open 3 bakery-cafés in Jersey City by 2012; expand our café concept to other cities with expand our café concept to other cities with similar collegiate demographics. similar collegiate demographics.

• Increase operating profitIncrease operating profit

• Expand Café de Ville’s menu to include more Expand Café de Ville’s menu to include more than coffee and bread as stated in our menu.than coffee and bread as stated in our menu.

• Become the number one cafe for college Become the number one cafe for college students by reflecting their community’s and students by reflecting their community’s and culture’s personalityculture’s personality

Café de Ville MenuCafé de Ville Menu

Grilled Breakfast Sandwiches French Onion Soup Signature Sandwiches Irish Soda Bread Café Sandwiches Specialty teas Homemade Soups Assortment of Coffees Fresh Salads. Espresso, Frozen, and Iced drinks

Café de Ville Café de Ville CultureCulture

• Student friendly and family Student friendly and family friendlyfriendly

• Modern style café embracing Modern style café embracing technology by providing WI-FI technology by providing WI-FI

• Inviting and stimulating Inviting and stimulating environment environment

• Peaceful, comfortable ambiencePeaceful, comfortable ambience

• Jersey City memorabiliaJersey City memorabilia

• Assortment of teas, Assortment of teas,

• Coffee and music Coffee and music

Mission Statement of Mission Statement of Café Café de Villede Ville

CustomersCustomers

• What do they value What do they value

• What are they in need of both physically and What are they in need of both physically and psychologically; their social needspsychologically; their social needs

• Develop a strong relationship withDevelop a strong relationship with

• Provide customer satisfactionProvide customer satisfaction

• Targeting students and familiesTargeting students and families

• Offer better quality of food for students and Offer better quality of food for students and customerscustomers

Broad Differentiation Strategy

• We will “incorporate features that enhance buyer satisfaction in noneconomic or intangible ways”

• Our service will be: cleaner, safer, quieter, fun,

modern, furnished, student friendly, convenient, casual, free web service, creative, community-driven, friendly staff, relaxing,

ManagementManagement• Top-down belief systemTop-down belief system

• 3 managers, breakfast, lunch & dinner3 managers, breakfast, lunch & dinner

• Develop a plan for physical distributionDevelop a plan for physical distribution

• of goodsof goods

• Packaging – special containersPackaging – special containers

• Provide customer satisfactionProvide customer satisfaction

• We will use the best employee policy of We will use the best employee policy of empowering our employeesempowering our employees

• We will combat the silo mentalityWe will combat the silo mentality

EmployeesEmployees

• Hire students from Hudson County Community Hire students from Hudson County Community College’s Culinary programCollege’s Culinary program

• Hire students from all 3 schools in neighborhoodHire students from all 3 schools in neighborhood

• Hire 3 managers & 2 cooks/bakerHire 3 managers & 2 cooks/baker

• Medical benefitsMedical benefits

• 401K pension401K pension

• One free meal per workdayOne free meal per workday

• Paid lunch hourPaid lunch hour

ConcernsConcerns

• No ParkingNo Parking• This problem can be solved by reaching out to This problem can be solved by reaching out to

the closest parking lot and creating a contract.the closest parking lot and creating a contract.

• Crime rateCrime rate

• With the development of SPC’s student center, it is With the development of SPC’s student center, it is almost guaranteed that their security will be almost guaranteed that their security will be covering that area.covering that area.

• Competitive ForcesCompetitive Forces

Competitive forcesCompetitive forces

Local BusinessesLocal Businesses

• Burger KingBurger King

• SubwaySubway

• McGinley Square PubMcGinley Square Pub

• Astor BarAstor Bar

• Chicken DelightChicken Delight

• Panda HousePanda House

• Old Peking ChineseOld Peking Chinese

• These businesses do not These businesses do not provide the service or provide the service or the products that we will the products that we will be offering. They also do be offering. They also do not have the ambience not have the ambience that customers will that customers will benefit from. benefit from.

Number of RivalsLocal bakery competitors:– Neidas’ Bakery

761 Bergen Ave– Dunkin Donuts

739 Bergen Ave– Christines’s Bake shop

743 West Side Ave– Karen Bakery

2801 JFK Boulevard– Papa’s Donut Rest 896 Bergen Ave

• Industry is fragmented into many small mom and pop cafe/ bakeries

• Most of our competitors that specialize in the bakery and coffee that provide a comfortable environment are located near the Waterfront (10- 15 minutes away from SPC)

Number of RivalsCafe

• Jim S Cyber Café Uncle 841 A Bergen Ave• Dunkin Donuts

(again)• JC Soul Food Café

197 Monticello Ave• Earle Café

57 Sip Ave• Metro City Café

1 Amity Street

Restaurants• Prince of Pizza

763 Bergen Avenue• Burger king

748 Bergen Avenue• Peking Chinese Restaurant

746 Montgomery Street• Chicken Delight

731 Montgomery Street• Panda House Chinese

735 Montgomery Street

Restaurants with Wi-fiRestaurants with Wi-fi

• McDonalds McDonalds 428 Grand St428 Grand St

• McDonalds McDonalds 564 Newark Ave564 Newark Ave

• Jim S Cyber Café Uncle Jim S Cyber Café Uncle 841 A Bergen Ave841 A Bergen Ave

• NYCNYC

Industry changeIndustry change

• Economic crisis, people out of Economic crisis, people out of workwork

• College is expanding, building new College is expanding, building new centercenter

• City population growing City population growing

• No diners nearbyNo diners nearby

• Closest diner, VIP, is scheduled to Closest diner, VIP, is scheduled to closeclose

• People are generally more health People are generally more health conscious conscious

Rival’s strategic movesRival’s strategic moves

• Change their menu, add healthier foodsChange their menu, add healthier foods

• Burger King will always be changing their Burger King will always be changing their menu, keeping up with the times. The menu, keeping up with the times. The quality of their food is not good. It is still fast quality of their food is not good. It is still fast food.food.

• Astor Bar continually changes their menu. Astor Bar continually changes their menu. However, they will always be a bar and However, they will always be a bar and customers might not find that an acceptable customers might not find that an acceptable environment to eat in.environment to eat in.

Key factors in Key factors in Future Competitive successFuture Competitive success

• Construction of new Student Center at SPC – right across the Construction of new Student Center at SPC – right across the street from our Cafestreet from our Cafe

• Offering a product that we specialize in …fresh bread that we Offering a product that we specialize in …fresh bread that we can eventually sell to other venues in the area, expanding our can eventually sell to other venues in the area, expanding our businessbusiness

• Crime factor – SPC security will have a strong presence due to Crime factor – SPC security will have a strong presence due to the new Student Centerthe new Student Center

• Bread industry/café is not found in this area of Jersey CityBread industry/café is not found in this area of Jersey City

Key factors in Key factors in Future Competitive successFuture Competitive success

• The objective is to maximize profits, not market shareThe objective is to maximize profits, not market share

• We do not look to be price leadersWe do not look to be price leaders

• We look to compete in excellent serviceWe look to compete in excellent service

• Our price per meal will be higher than our competitors:Our price per meal will be higher than our competitors:

• Neidas’s Bakery averages is $7 per mealNeidas’s Bakery averages is $7 per meal

• Panda’s Chinese average is $5.50 per mealPanda’s Chinese average is $5.50 per meal

• Mc Donald’s average is $4.50 per mealMc Donald’s average is $4.50 per meal

Opportunities for profitsOpportunities for profits

• 3 schools in neighborhood to draw profits 3 schools in neighborhood to draw profits fromfrom

• Can eventually do deliveries for breakfast, Can eventually do deliveries for breakfast, lunch & dinner throughout Jersey Citylunch & dinner throughout Jersey City

• Downtown area is a great target for deliveriesDowntown area is a great target for deliveries

• New student center will bring a lot of action to New student center will bring a lot of action to the area the area

SWOT AnalysisSWOT Analysis

STRENGTHSTRENGTH• Demand: The demand for coffee shops, bakery Demand: The demand for coffee shops, bakery

and quality products at competitive prices is and quality products at competitive prices is enormous in the Montgomery areaenormous in the Montgomery area

• Customer base: The customer base which is the Customer base: The customer base which is the main element whilst determining the target main element whilst determining the target market is enormous. market is enormous.

• Location: We can attract St Peter’s students and Location: We can attract St Peter’s students and staff, especially when the new student center staff, especially when the new student center will be built in front of it. We can also attract will be built in front of it. We can also attract NJCU students and staff who want a more NJCU students and staff who want a more inviting atmosphere to study or have coffeeinviting atmosphere to study or have coffee..

SWOTSWOTWeaknesses: Weaknesses:

We will be catering to a high level of customers during the We will be catering to a high level of customers during the academic school year but this will change during the academic school year but this will change during the summer and various school holidays.summer and various school holidays.

Opportunities:Opportunities:• Diverse Target market:Diverse Target market:• Promotion through embracing culturePromotion through embracing culture

Threats:Threats:• PricingPricing• Diverse Target market: we have competitors that cater to Diverse Target market: we have competitors that cater to

every demographic market. every demographic market. • New entrants and costs:New entrants and costs:

Marketing Plans Marketing Plans

• Holistic marketing approachHolistic marketing approach

• Use internet & intranet to advertiseUse internet & intranet to advertise

• Advertisements in newspapers & FlyersAdvertisements in newspapers & Flyers

• Reach out to schools & BusinessesReach out to schools & Businesses

• Cable commercialCable commercial

• Develop sales promotionDevelop sales promotion

Marketing StrategyMarketing Strategy

• Building strong online presence through the Building strong online presence through the promotion of our website features, such as promotion of our website features, such as placing orders online.placing orders online.

• Sending Campus RepsSending Campus Reps

• Facebook and Twitter presenceFacebook and Twitter presence

Public RelationsPublic Relations

• Develop public relations within communityDevelop public relations within community

• Hold special eventsHold special events

• Participate in community service events such as: Relay Participate in community service events such as: Relay for Lifefor Life

• Get involved in Sponsorship; sponsor teamsGet involved in Sponsorship; sponsor teams

• Give back to community – donate bread at the end of Give back to community – donate bread at the end of the daythe day

• Work on public relations – person to personWork on public relations – person to person

Recommendations to our family

• Move business to Jersey City, New Jersey in USA

• Lease property located at 768 Montgomery Street in JC

• Make connections with other similar businesses

• Start advertising open positions

• Reach out to all the schools & businesses in area

• Begin promoting business

• Hold Grand Opening of Café de Ville on Dec. 1, 2011

References

• Harvard Business Review: Location, Location: The Geography of Industry Clusters

• Harvard Business Review: Enabling Bold Visions

• Harvard Business Review:

• www.youtube.com

• www.jerseycity.com

• Marketing Strategy, Lectures 2, 3, 4, 5

• http://www.city-data.com/city/Jersey-City-New-Jersey.html

• http://quickfacts.census.gov/qfd/states/34000.html