topic: phase 2: williams coffee pub case study prepared ... · pdf filemichelle guile prepared...

Topic: Phase 2: Williams Coffee Pub Case Study

Prepared for Michelle Guile

Prepared by Audrey Tan

Date

December 5, 2012

2

Table of Contents Section 2 Executive Summary Indirect …………….......pg. 4 Section 3 Current Marketing Situation

1. The Market: Direct and Indirect …………………………..pg. 3, 4 i. WCP Competitive Analysis ………………….pg. 4, 5

2. Macro Environment i. Demographic ………………………………….pg. 8 ii. Economic .....…………………………............pg. 8 iii. Technological ………………………………....pg. 8 iv. Natural ………………………………………....pg. 9,10 v. Political/Legal ………………………………....pg. 10 vi. Cultural .........................................................pg. 10

3. Microenvironment i. Industry .........................................................pg. 11 ii. Competitors ..................................................pg. 11,12 iii. Supplier.........................................................pg. 12 iv. Intermediaries ...............................................pg. 12 v. Publics ..........................................................pg. 12 vi. Consumers ...................................................pg. 12

Section 4 SWOT Analysis

1. SWOT Analysis Chart ......................................................pg. 13 i. Strengths ......................................................pg. 14 ii. Weakness ....................................................pg. 14 iii. Opportunities ................................................pg. 14 iv. Threats .........................................................pg. 14

Section 5 Issue Analysis 1. Conflicts and Problems ....................................................pg. 14,15 Section 6 Marketing Objectives 1. Marketing Objectives ........................................................pg. 16 Section 7 Proposed Marketing Strategies

1. Positioning Statement and Recommended Solutions pg. 17 2. Target Market ...................................................................pg. 16 3. 4 P’s

i. Product..........................................................pg. 19 ii. Price..............................................................pg. 19,20 iii. Promotion......................................................pg. 21-26 iv. Place.............................................................pg. 26

3

Section 8 Implementation Plan

1. Plan i. Positioning.....................................................pg. 27 ii. Pricing............................................................pg. 27 iii. Digital Media..................................................pg. 28 iv. Advertising.....................................................pg. 31

2. Calendar View of Advertising..........................................pg. 34 3. Next Steps..........................................................................pg. 38 4. Profit Loss…………………………………………………...…pg. 39,40

Section 9 Controls……………………………………………….…pg. 40 References ....................................................................................pg. 41,42

4

Executive Summary

Williams Coffee Pub can benefit from slight changes within their current position within the quick-casual food industry. With the coffee market in Canada growing rapidly and reaching $1 billion as well as the “quick casual” restaurants’ popularity rising, it’s not a surprise that Williams Coffee Pub’s most recent year’s revenue is sitting firm at $2,218,000. Its firm belief in serving their customers in a comfortable atmosphere as well as pleasing all customers, competing in 5 distinct restaurant markets, visibly aids their sales and ability to compete within the industry. Although, when re-visiting their most recent year’s income statement for 2003, its total operating expenses leads to the overall income from operations at only $763,000. Where did it all go? We conducted research on Williams Coffee Pub’s current marketing situation; the company is trailing behind when trying to expand itself outside of Ontario within the market. Its competitors such as Starbucks, Tim Hortons and Panera Bread within various target markets have strong brand recognition and have taken great efforts in applying an effective marketing strategy to make themselves known to the public. They use various promotional methods such as social media, TV advertising and more while Williams Coffee Pub only uses in-store promotions. Its competitors’ food menu is limited compared to Williams Coffee Pub’s as the entrees are available for all times of the day. We’ve analyzed the data gathered, revealing benefits for the company in 3 areas:

1. Positioning. By choosing young adults as the target market and minimizing the menu items to concentrate on popular products selected, their focus on the quality of their food and the consumers will strengthen the menu as well as their customer relations.

2. Expansion. Due to the constant demand in fast yet whole-hearted meals,

expanding by opening kiosks within colleges/universities and tourist attraction malls would generate revenue at all hours of the day. With William's Coffee Pub's desire in expanding, creating kiosks within these locations would be cost effective with increased product turnover.

3. Marketing. Because of the increased advancement in technology, Williams

Coffee Pub will be able to branch into new marketing methods as a cost-efficient alternative by integrating social media. They will be able to create brand awareness and have the allowance to increase their current marketing budget from 1.5% to 3% effectively.

With our findings, it is recommended that William's Coffee Pub expands its locations while focusing on quality and consumers as well as improve their marketing strategy to stimulate sales and acquire brand recognition. Positioning

5

their image, adjusting their price to compete with their competitors and implement digital marketing with the use of Facebook, Twitter and website. Current Marketing Situation: The Market: Direct and Indirect Industry Overview - All quick casual share the common traits of high-quality ingredients, fresh food, made-to-order dishes, a larger menu, limited table service, in some cases, a limited selection of alcoholic beverages, pricing somewhere between standard fast food and casual dining, a presentation combining the speed and convenience of fast food with quality and variety approaching or surpassing casual dining - Along with high-quality menu items, all fast casual chains are notable for high-quality outlets with an emphasis on comfortable furnishings and attractive design. - Fast casual dining sales surpassed US$18 billion in 2007, propelled above all by strong demand in the US, as well as increased spending in Western Europe and Japan, as consumers in developed countries continue to seek out higher-quality options - The coffee market in Canada has reached $1 billion and is growing rapidly - Specialist coffee shops are expected to move aggressively into the space occupied by fast casual chains, primarily with specialist coffee shops; with specialist coffee shops expected to invest heavily in food as a means of growing average spend per transaction. - “Quick Casual”, drawing business from coffee shops, specialty coffee shops, special bakery and dessert shops, family casual dining and general quick service restaurants - Perceived to offer higher quality food than typical fast-food restaurants, with the average cheque of $3.90 - The market includes competition from other quick casual restaurants (Quiznos), quick service restaurants (McDonalds), and casual dining (Kelseys). - There are 11 other coffee house franchises in Ontario Williams Coffee Pub - Williams Coffee Pub was founded in 1993 in Stratford, ON and is defined ass a fast-casual coffee pub - Our mission is to deliver a unique dining experience to each guest by serving quality food products in a welcoming and comfortable environment. - We will focus on delivering to our guests:

1. Quality food, coffee and drinks with healthy choices. 2. A meeting place with non-intrusive service. 3. A commitment to operational excellence every day.

- Key decision makers CEO Dean Braund began as a franchisee and shareholder, George and Bill Giannakopoulos owners, Peter Schwartz, friend and business school graduate, Don Pagnutti part-time chief financial officer, Mark White chief executive officer. - Products vary from 1 type of coffee bean, sandwiches, salads, baked goods,

6

entrees, juices, smoothies, soups, quiche, and cold beverages - Prices vary from .80 cents- 6.99 depending on purchase - Promotions to join their “e-club” and hear about new menu items and in store promotions first - Place is throughout Ontario, with multiple store locations across the province. - WCP does promotions in-stores

WCP Competitive Analysis

Marketing Mix

Starbucks Tim Hortons

Panera Bread

WCP

Product Offerings

- A variety of coffee beans, specialty coffees, baked goods, small variety of sandwiches

- Coffee, donuts, bagels, sandwiches

- Coffee, wide variety of soups and sandwiches, fresh baked in house breads

- 1 type of coffee bean, coffee, specialty coffees, salads, baked goods, sandwiches, some entrees

Pricing Strategy

- Higher prices - Above market pricing

- Cheaper prices - Below market pricing

- Higher prices - Above market pricing

- Moderate prices - Coffee at market pricing, food is above market pricing

Distribution Strategy

- Coffee beans are roasted daily

- Food is assembled on site, brewing fresh coffee every half hour

- Fresh breads baked on site, food assembled on site

- Food is assembled on site

Promotional Strategy

-Registered online for a free coffee, Fall pumpkin pastries are

- $1 specialty hot beverages, photo tour

- Chance to win your sandwich on Panera’s menu, daily

- In-store promotions

7

back contest soups

Positioning “Our mission: to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time”

“Always fresh. Always”

We are Panera. We are bakers of bread. We are fresh from the oven. We are a symbol of warmth and welcome...We are family. We are friends.

Our mission is to deliver a unique dining experience to each guest by serving quality food products in a welcoming and comfortable environment.

Social Media Strategy

-Links to follow Twitter and Facebook directly on website -News blog posts on website about relevant topics

-Links to follow on Twitter, Facebook and Youtube directly on website

-Links to follow on Twitter, Facebook, Youtube and Pintrest directly on website.

-Links to follow on Facebook, Twitter and Youtube on website

Indirect competition includes anything from McDonalds to Quiznos to Kelseys. Consumer Profile - Consumers looking for quick, healthy alternatives - Baby boomers and their children, whom don’t do much cooking, growing tired of fast food - Businessmen, seniors, women with children, and late-teens looking for a quiet spot to study

8

Macroenvironment

Ø Demographic

Ontario’s population in 201210

First Quarter Second Quarter Third Quarter 13,438,807 13,464,470 13,505,900

Ø Economic

Canadian Dollar vs. US Dollar (using the month of October for consistency) October 2010 October 2011 October 2012 0.9602 0.9638 1.0219

Average Income After Tax By Economic Family Types9

2009 2012 Economic Families (two people or more)

76,400 76,600

Unattached Individuals 31,900 32,100

These charts demonstrate the trends of a growing population, the increase in worth of the Canadian dollar compared to the US dollar and the increase in average income within families as well as individuals. They help determine that there are more people with more money to spend within our population.

Ø Technological8

1. Mobile device battles 2. HTML and mobile applications 3. Personal cloud 4. Internet connections 5. Hybrid IT and cloud computing 6. Strategic big data 7. Actionable analytics 8. Mainstream in-memory computing 9. Integrated ecosystems 10. Enterprise app-store

9

Ø Natural5

10

This chart demonstrates the trend in environmental awareness and how corporate social responsibility should be a concern to WCP. The chart shows all things WCP should keep in mind in preserving when running their company.

Ø Political/Legal

§ Smoke-Free Ontario Act

o Came into force May 31, 2006 o Prohibits smoking in enclosed public places in order to protect the

public from secondhand smoke o For patios: prohibits smoking if any portion of the patio is covered

or partially covered by a roof

§ Acts and Regulations

Canada Agricultural Products Act

Canadian Food Inspection Agency Act

Meat Inspection Act

Consumer Packaging and Labelling Act

An Act to regulate the marketing of agricultural products in import, export and interprovincial trade and to provide for national standards and grades of agricultural products, for their inspection and grading, for the registration of establishments and for standards governing establishments1

An Act to establish the Canadian Food Inspection Agency and to repeal and amend other Acts as a consequence2

An Act respecting the import and export of and interprovincial trade in meat products, the registration of establishments, the inspection of animals and meat products in registered establishments and the standards for those establishments and for animals slaughtered and meat products prepared in those establishments4

An Act respecting the packaging, labelling, sale, importation and advertising of prepackaged and certain other products3

Ø Cultural -Growing preference towards fresh foods.

11

- Trends towards healthy lifestyles and eating. Microenvironment

Ø Industry7 - 11 coffee shop franchises in Ontario - Fast-casual are redefining themselves, from what once was burgers and fries to Starbucks-style hangouts - Trends date back a decade to 2002, when Mcdonalds suffered its first quarterly loss in half a century, since Mcdonalds successful makeover sales have increased from 50.8 billion in 2004 to 70.4 billion in 2010, guarding itself from the quick casual phenomenon - Quick casual started in 1986 with the idea of slightly higher prices but higher quality - Sales up 14.6% from 2006 to 2007 and growing.

Ø Competitors - Starbucks, Tim Hortons, Panera Bread are direct competitors - Mcdonalds and Kelseys are indirect competitors - Starbucks offers a variety of coffee beans, specialty coffees, baked goods, small variety of sandwiches - Strengths of Starbucks are the wide variety of coffee beans, and well known recognition of brand. They also roast their beans daily. Weakness’ are price and lack of variety in food options - Tim Hortons offers coffee, donuts, bagels, muffins, sandwiches, soups, cold beverages - Strengths of Tim Hortons are their pricing, their brand recognition and their variety in options for muffins donuts and sandwiches. Weakness’ would be their struggle to compete within the US market and that it’s not so profitable when trying to retain quality franchisees -- their struggle in penetrating the US markets. - Panera Bread offers coffee, sandwiches, soups, salads - Strengths of Panera Bread are that everything is made fresh in house, with a large variety of soups and breads. Weakness’ are their narrow product line (all bread) and their decline in customer service within franchisees - Mcdonalds offers coffee, muffins, sandwiches, burgers, fries, salads, cold beverages - Strengths of Mcdonalds are their very well known and have the majority of market share, and have quick, affordable food. Weakness’ are they are not a healthy choice. - Kelseys offers coffee, entrees, salads, sandwiches, cold beverages, desserts and alcohol - Strengths of Kelseys are they have the option to sell alcohol which increases sales, and the guest cheque average is higher. Weakness’ are that its not quick

12

service and the food is more expensive.

Ø Supplier - Food assembled on site with only a microwave or warmer as needed - An advisory council that consists of 8 members, oversees new ideas regarding marketing and menu items

Ø Intermediaries - WCP participates in in-store promotions and the use of local media - An advisory council that consists of 8 members, oversees new ideas regarding marketing and menu items

Ø Publics - Listed as an Eat Smart restaurant by various health departments in Ontario - Outlets in many Ontario universities - Franchises would seek out WCP through word-of-mouth and newspaper ads - Restaurant critics written reviews

Ø Consumers

Teens and Students

Businessmen Seniors

Demographic - Male & female - Ages 12-17 - Low to mid

income - Grade school or

high school

- Male & female - Ages 18-59 - Mid to high income - May have a family

and/or kids - Employed

- Male & female - Ages 60+ - Mid to high income - May have a family

and/or kids - Employed or

unemployed/retired

Geographic - Within Ontario - Within urban or

suburban regions

- Within Ontario - Within urban or

suburban regions

- Within Ontario - Within urban or

suburban regions

Psychographic - Gregarious and compulsive

- Semi-Compulsive - Busy lifestyle - Gregarious

- Cautious - Caring

Behavioristic - First-time or prospect user

- Social purposes

- Prospect, first time or regular user

- Health conscious - Social purposes

- Regular or first time user

- Nutrition needs - Medium to strong

loyalty

13

SWOT Analysis: STRENGTHS

• WCP’s superior value to many mainstream coffee and specialty coffee brands

• Wider variety in food options • Great combination of quick

service meal with casual dining experience

• Flexible menu for every part of the day

• Handled competition well • Flexibility in changing the

menu/service format to match consumer lifestyle and culinary trends

• Good location spots • Ability to compete with 5 distinct

restaurant markets

OPPORTUNITIES

• Expand outside of Ontario, staying within Canada

• Outsource web designer • Utilize social media for

advertisements • Use of local radio stations for

advertisements • Trend towards eating healthier

WEAKNESS

• Tight budget for more advertising and promotional expenditures

• Struggling to collect account payables (franchisees)

• Franchisees struggling financially from their perspective

• Higher price than the competition

• Selective marketing • Lack of brand recognition

THREATS

• Local competitors • Direct and indirect competition • Brand recognition • Demographic changes (users)

14

Strengths:

• Superior value to both mainstream and specialty coffee brands • Well conceived marketing mix • Offering unique services (customer service without being pushy) • Flexibility in menu alternatives • Strong strategic plans in terms of where to place their franchises

Weakness:

• Financially struggling franchisees • Tight marketing budget • No clear strategic direction • High costs • Weak market image

Opportunities:

• Diversified products to serve larger markets (demographic, competitors) • Trend to healthier menu options (socio-cultural) • New marketing methods: social media, TV commercials, etc.

(technological, marketing intermediaries)

Threats:

• Wide market of competitors (competitors) • Limited locations (competitive)

Issue Analysis Main Problem: Looking at WCP, the company is trailing behind when trying to expand itself outside of Ontario within the market. Its competitors within all target markets have strong brand recognition and have taken great efforts in applying an effective marketing strategy to make themselves known to the public. Strategy: - How to go about developing a new marketing strategy? - Where to make changes within the company? - Should they add new outlets, kiosks or locations? Or should they focus on driving more sales for the existing stores? - How to create a plan to collect from existing franchisees on time?

15

Budget: - What new marketing budget should they decide on? - Where can they cut costs to get additional money? - How to improve growth within the company? - What other suppliers are out there? Niche: - What is the best fit for WCP to maximize sales and minimize costs? - What about considering on targeting a niche market? Advertising: - What other methods are there in advertising at a cheaper cost?

16

Marketing Objectives: i) To minimize our menu by 5 menu foods and focus on the quality of a more limited menu by December 2004. ii) To increase the coffee beans used by 3 kinds and integrate them into the menu by September 2004. iii) To open 2 kiosks within malls and 2 college/university locations, with at least one being outside of Ontario based on appropriate available locations by January 2005. iv) To increase the marketing budget by 3% by year-end 2004 by minimizing transportation expenses by 40% by implementing telecommunications by year end 2014. v) To implement slight price increases to most menu items by December 2003 to help increase profits by 10%. vi) To increase profits by 10% by year-end 2005 by increasing the amount of out of store advertising.

17

Proposed Marketing Strategies: Positioning Statement: “Our mission is to provide a better experience with customer-catered products within every parts of the day without the attitude, price or wait.” Recommended Solutions:

1. Focus on positioning, quality and the consumers a. Minimize the menu items to concentrate on certain popular

products selected b. New logo designed to attract the young adults c. Adding a new kind of coffee bean roast to fit the needs of other

consumers

2. Expanding a. Research on more location prospects b. Open 2 kiosks within tourist attraction malls c. Expand within Colleges and Universities

3. Improve marketing strategy

a. Implement price increases on some menu items b. Usage of different marketing methods

i. Advertise within TV and radio commercials ii. Social Media (Twitter, Facebook)

c. Increase marketing budget from 1.5% to 3% i. Budget current expenses in order to allocate costs effectively

18

Target Market: Young Adults

Demographic - Male & female

- Ages 18-30

- Low to mid (under $10,000-$25,000+) income

- May have a family and/or kids

- Student or employed

Geographic - Within Ontario

- Within urban or suburban regions

Psychographic - Semi-Compulsive

- Busy lifestyle

- Gregarious

Behavioristic - Prospect, first time or regular user

- Health conscious

- Social purposes

Ø Product:

o Hours of Operations:

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

7am-8pm

7am-8pm

7am-8pm 7am-8pm 7am-9pm

7am-10pm

7am-8pm

*Parking lots available on site *Wheelchair accessible *In-Store Wi-Fi available *No pets allowed

Coffee Other

Beverages Baked Goods

Sandwiches/Soups/Salads/Entrees Desserts

Williams House Blend, Bodiums

- Deluxe Frappes: Mint Chocolate,

Cookies: - Chocolate Chip, Macadamia

Sandwiches: - BLT, Tuna Salad, Chicken Salad, Vegetarian, Roast Beef and cheddar, Baguette Melts, Assorted Deli

Assorted Squares: - Brownies,

19

(assorted flavors) - Authentic European Coffees: Espresso, Cappuccino - Iced Coffees: Mocha Cappuccino, Latte Royale

Strawberry Banana, Mocha Chocolate, Caramel Mocha - Hot: Hot Chocolate, Tea (Red Rose and Flavored) - Cold: Soft Drinks (can), Milk, Bottled Water

Nut, Peanut Butter, Double Chocolate Muffins: - Chocolate Chip, Blueberry, Banana Nut, Wildberry, Pumpkin Spice Cinnamon Buns: - Glazed, Frosted

Salads: - Greek Salad, Caesar Salad, California Salad, House Salad, Grilled Chicken Caesar Salad Soups: - Soup of the day, Soup & Salad Combo Entrees: -Chicken on a Bagel, Chicken Pot Pie

Lemon Bars, Nanaimo Bars, Rice Krispie Squares

20

Ø Prices:

Method of Payments: Visa, Mastercard, Debit, Gift Card, Mobile Gift Card and Cash Beverages Small ($)

12oz Medium ($) 16oz

Large ($) 20oz

William’s House Blend 0.99 1.25 1.75

Bodium Bodium au Lait

1.99 2.99

Espresso 1.25 1.60

Cappuccino 2.00 2.81

Mocha Cappuccino 4.00

Latte Royale 2.80

Deluxe Frappes 3.75 4.50 5.00

Hot Chocolate 1.10 1.45 1.75

Tea - Red Rose Tea - Flavored

0.95 1.15

1.25 1.50

1.60 1.85

Soft Drinks (355mL Can) 1.25

Milk 1.35 1.60

Bottled Water (710mL) 1.35 Baked Goods ($): Cookies: 0.99 Muffins: 1.25 Cinnamon Buns: 1.79 Sandwiches ($): Vegetarian Sandwich, Tuna Sandwich: 3.99 Chicken Salad Sandwich, BLT, Assorted Deli: 4.79 Roast Beef and Cheddar Sandwich and Baguette Melts: 4.99 Salads ($): Greek Salad, Caesar Salad, California Salad, House Salad: 4.99 Grilled Chicken Caesar Salad: 6.99

21

Soups ($): Soup of the Day: 3.50 Soup & Salad Combo: 4.99 Chicken on a Bagel: 4.99 Chicken Pot Pie: 4.99 Desserts ($): Assorted Squares: 1.99

Ø Promotion: Promotion Advertising

Digital Media

- - “Cool down for the summer with one of our Iced Coffees!” - Only $2 for a 16oz sized Iced Coffee of your choice.

“ - “Kick start your back-to-school days with a friend!” Buy 1 coffee and get the same size or less half off.

- “Tis the season to be giving”. Buy 2 beverages of your choice for the price of 1. (Highest amount will be billed)

“ - “Love is in the air -- love our coffee beans!” Buy a

medium-sized William’s House Blend for only $1. - “Like us on Facebook or Follow us on Twitter for more deals and have a chance to win many prizes!” - 1 free entree, coffee and dessert for 4 winners each month. Valentines & Christmas prizes will be a Sandbanks Vacation Wine & Specialty Tours for 2 where you can discover some of Ontario's finest vineyards or spend a day exploring art galleries, craft studios, antique shops, cheese factories and more!

Promotions “Cool down for the

summer with one of our Iced Coffees!” *Great for the busy young adults who are constantly on the go and needs to be energized and

Cool down for the summer with one of our Iced Coffees!” - Only $2 for a 16oz sized Iced Coffee of your choice.

Theme “Cool down for the

22

refreshed for the summer*

summer” Summer-themed decorations with refreshing cold drinks to entice customers

Media used

Advertise on local radio, Twitter & Facebook during spring and

summer with the special offer -- $2 for a 16oz iced

coffee

Frequency

Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and rush hour home time). Twitter and Facebook posts 3 times a day (within morning rush, lunch time and rush hour home time)

Timing The July/August period for 7 weeks

“Kick start your back-to-school days with a friend!” *Great for both high school and college/university students. Creating new friendships, broadening your contacts and socializing with the use of a cheaper coffee*

“Kick start your back-to-school days with a friend!” Buy 1 coffee and get the same size or less half off.

Theme “Kick start your back-to-school days with a friend”Back to school and autumn themed decorations, when showing your student card, get the deal.

Media Advertise on local radio,

23

Twitter & Facebook during spring and summer with the special offer – Buy 1 coffee; get the same or smaller size half off.

Frequency Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and late evening). Twitter and Facebook posts 3 times a day (within morning rush, lunch time and late evening when students are studying)

Timing The beginning of September to month end.

“Tis the season to be giving!” *It’s cheap and thoughtful, especially when most young adults have low income and can’t afford to pay for anything extra; the ability to participate in the spirit of giving at a cheaper price*

“Tis the season to be giving!” Buy 2 beverages of your choice for the price of 1. (Highest amount will be billed)

Theme ”Tis the season to be giving” winter themed decorations with winter themed “to-go” take out cups and special winter feature hot beverages.

Media Advertise on local radio, Twitter & Facebook from beginning of December to end of January.

Frequency Run radio spots 3 times per day for every other week flights (within

24

morning rush, lunch time and afternoon rush hour) and once on weekends. Twitter and Facebook posts 3 times a day (within morning rush, lunch time and afternoon rush hour)

Timing Beginning of January to the end of December for an 8-week period.

“Love is in the air -- love our new coffee beans!” * Trying a potentially new-favorite blend of coffee at a cheap price is a great way to entice young adults with low-medium income*

“Love is in the air -- love our new coffee beans!” Buy a medium-sized William’s House Blend for only $1.

Theme ”Love is in the air” theme for spring with spring decorations and flowers.

Media Advertise on local radio, Twitter & Facebook from beginning of April to end of May.

Frequency Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and afternoon rush hour) and once per day on weekends in the morning. Twitter & Facebook posts 3 times a day (within morning rush, lunch time and afternoon rush hour)

Timing Beginning of April to end

of May for an 8 week period

25

“Like us on Facebook

or Follow us on Twitter for more deals and have a chance to win many prizes!” *Considering that most Canadians use social media, a quick “follow” or “like” on either Facebook or Twitter would be easy! With the incentive to explore Ontario’s natural getaways for the winner, who doesn’t want to participate in this free event?*

“Like us on Facebook or Follow us on Twitter for more deals and have a chance to win many prizes!” 1 free entree, coffee and dessert for 4 winners each month. Valentines & Christmas prizes will be a Sandbanks Vacation Wine & Specialty Tours for 2 where you can discover some of Ontario's finest vineyards or spend a day exploring art galleries, craft studios, antique shops, cheese factories and more!

Theme ”Like us on Facebook or Follow us on Twitter”. Social media theme with a sign in the store.

Media Advertise on the local radio and in restaurant promotions all year round

Frequency Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and afternoon rush hour) and once per day on weekends in the morning. Continuous in store promotions.

Timing All year round

26

Public Relations Community Events - $50 gift card donated to raffle for MS society - Toy drive and food drive in winter, donate a toy or canned good get a free coffee of your choice - Fireworks show on Victoria Day - Raise money to send a kid to camp by donating a percentage of sales

Ø Place

- Within Ontario - Kiosks in Universities, Colleges and malls - Free standing locations

27

Implementation Plan In order to ensure the marketing strategy, a plan has been broken down into 4 sections: Positioning, Pricing, Digital Media, and Advertising. These sections will include an individual plan according to the increased 3% marketing budget. i. Positioning Cost: $100,000 Outsource a graphic designer to create a new logo and replacing communication pieces from the menu to signs for advertising ensuring the same look effective immediately. A New logo is planned:

With our target market, creating a new logo with this particular color scheme and design should attract young adults effectively. The use of the heart-shaped smoke color as green signifies WCP’s love for healthier eating as well as their love for coffee. The font is altered into a semi-script font in order to flow with the coffee-smoke scheme, keeping the logo visibly attractive to the eye. ii. Pricing Cost: $20,000 Implement new prices for both drinks and food; replacing all menus and signage within franchises. All rates have been individually adjusted accordingly to compete with the market (with percentage increase beside) and will be effective immediately: Beverages Small ($)

12oz Medium ($) 16oz

Large ($) 20oz

William’s House Blend 0.99 (+6%) 1.25 (+17.6%) 1.75 (+28%)

28

Bodium Bodium au Lait

1.99 (0%) 2.99 (0%)

Espresso 1.25 (0%) 1.60 (+3.1%) Cappuccino 2.00

(+2.5%) 2.81 (+2.5%)

Mocha Cappuccino 4.00 (+7.8%) Latte Royale 2.80 (+1.8%) Deluxe Frappes 3.75 4.50 (+20.2%) 5.00 Hot Chocolate 1.10 1.45 (+13.7%) 1.75 Tea - Red Rose Tea - Flavored

0.95 1.15

1.25 (+80%) 1.50 (+16.6%)

1.60 1.85

Soft Drinks (355mL Can) 1.25 (0%) Milk 1.35 (0%) 1.60 (0%) Bottled Water (710mL) 1.35 (+2.9%) Baked Goods ($): Cookies: 0.99 (+18.8%) Muffins: 1.25 (+20.8%) Cinnamon Buns: 1.79 (+11.1%) Sandwiches ($): Vegetarian Sandwich, Tuna Sandwich: 3.99 (0%) Chicken Salad Sandwich, BLT, Assorted Deli: 4.79 (0%) Roast Beef and Cheddar Sandwich and Baguette Melts: 4.99 (+26.1%) Salads ($): Greek Salad, Caesar Salad, California Salad, House Salad: 4.99 (+4%) Grilled Chicken Caesar Salad: 6.99 (+3%) Soups ($): Soup of the Day: 3.50 Soup & Salad Combo: 4.99 (+4%) Chicken on a Bagel: 4.99 (+4%) Chicken Pot Pie: 4.99 (0%) Desserts ($): Assorted Squares: 1.99 (0%) iii. Digital Media Overall Cost: $35,000 Hire an individual to create and maintain each digital/social media medium (Facebook, Twitter, and Website). WCP will be able to advance their marketing methods accordingly to the young adults.

29

1. Facebook:

Ø Positioning: With the use of Facebook every day, WCP will be able to position their selves within the most popular social media outlet in Ontario, effectively targeting the young adults.

Ø Creative Look: WCP will have links on the Facebook page that will ultimately lead to their website and will have WCP customers’ pictures on their Facebook page to aid a friendly-environment feel, welcoming every guest. Guests will also have the ability to participate in daily polls and surveys to keep the community stimulated while gaining some insight on what the consumers feel about their products.

Ø Layout and Components:

The image above portrays how WCP’s Facebook page will look like. It will star the fresh new logo as its banner and its profile picture in order to have the consumers recognize the brand right away.

Ø Links: The Facebook page will have a link that will direct viewers to their company website at www.williamscoffeepub.com

30

2. Twitter:

Ø Positioning: With Twitter, WCP can effectively promote their products and promotions every few hours in real-time. WCP will be able to reach out to the young adults with customizable responses and easily respond to any question about all their current and upcoming promotions.

Ø Creative Look: WCP will have a link on their Twitter page that will ultimately lead to their website and will be able to promote by using the “hash tag method” (#WCP) for prospects or current users to “Discover” Williams Coffee Pub on Twitter.


The image above portrays how WCP’s Twitter page will look like. It will star the fresh new logo as its header and its profile picture in order to have the consumers recognize the brand right away.

Ø Links: The Twitter page will have a link that will direct viewers to their company website at www.williamscoffeepub.com

31

3. Website:

Ø Positioning: Due to the increased use of Internet and website browsing, WCP can effectively promote their products and promotions through their website. WCP will be able to reach out to the young adults with easy navigation through their web page and can easily view their menu in the process.

Ø Creative Look: WCP will have a link on their Twitter and Facebook page on their website and will be able to promote by using the “Home” or “Menu” page for prospects or current users.


The image above portrays how WCP’s website will look like. It will star the fresh new logo as its header along side with the options to quickly navigate through the site, ensuring that it’s user friendly. The “Home” page will automatically show any current promotions and will be updated every month accordingly to the promotions available.

Ø Links: The web page’s website will be www.williamscoffeepub.com iv. Advertising: Overall Cost: $845,000 Hire individuals to implement the advertisements accordingly and maintain every social media aspects while responding to consumers in real-time. Every

32

advertisement is detailed as follows, effective as of its individual frequency and timing: 1. Cool down for the summer with one of our Iced Coffees!” - Only $2 for a 16oz sized Iced Coffee of your choice.

§ Cost: $210,000 (Radio advertising, ad creation/promotion/maintenance for: Twitter, Facebook and website for 7 weeks).

§ Theme

“Cool down for the summer” Summer-themed decorations with refreshing cold drinks to entice customers

§ Media used

Advertise on local radio, Twitter & Facebook during spring and summer with the special offer -- $2 for a 16oz iced coffee

§ Frequency & Timing Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and rush hour home time) during July/August period for 7 weeks. Twitter and Facebook posts 3 times a day (within morning rush, lunch time and rush hour home time).

2. “Kick start your back-to-school days with a friend!” Buy 1 coffee and get the same size or less half off.

§ Cost: $200,000 (Radio advertising, ad creation/promotion/maintenance for: Twitter, Facebook and website for 1 month).

§ Theme

“Kick start your back-to-school days with a friend”Back to school and autumn themed decorations, when showing your student card, get the deal.

§ Media Advertise on local radio, Twitter & Facebook during spring and summer with the special offer – Buy 1 coffee; get the same or smaller size half off.

§ Frequency & Timing Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and late evening) during beginning of September to month end. Twitter and Facebook posts 3 times a day (within morning rush, lunch time and late evening when students are studying) 3. “Tis the season to be giving!” Buy 2 beverages of your choice for the price of 1. (Highest amount will be billed)

33


§ Theme

“Tis the season to be giving” winter themed decorations with winter themed “to-go” take out cups and special winter feature hot beverages.

§ Media Advertise on local radio, Twitter & Facebook from beginning of December to end of January.

§ Frequency & Timing Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and afternoon rush hour) and once on weekends during the beginning of December to the end of January for an 8-week period. Twitter and Facebook posts 3 times a day (within morning rush, lunch time and afternoon rush hour) 4. “Love is in the air -- love our new coffee beans!” Buy a medium-sized William’s House Blend for only $1.


§ Theme “Love is in the air” theme for spring with spring decorations and flowers.

§ Media Advertise on local radio, Twitter & Facebook from beginning of April to end of May.

§ Frequency & Timing Run radio spots 3 times per day for every other week flights (within morning rush, lunch time and afternoon rush hour) and once per day on weekends in the morning during the beginning of April to end of May for an 8 week period. Twitter and Facebook posts 3 times a day (within morning rush, lunch time and afternoon rush hour).

34

Calendar View of Advertising:

◄ Mar 2004 ~ April 2004 ~ May 2004►

Sun Mon Tue Wed Thu Fri Sat 1 ❒ ▼❆

2 ❒ ▼❆

3 ❒ ▼❆

4 ❒ ▼❆

5 ❒ ▼❆

6 ❒ ▼❆

7 ❒ ▼❆

8 ▼❆

9 ▼❆

10 ▼❆

11 ▼❆

12 ▼❆

13 ▼❆

14 ▼❆

15 ❒ ▼❆

16 ❒ ▼❆

17 ❒ ▼❆

18 ❒ ▼❆

19 ❒ ▼❆

20 ❒ ▼❆

21 ❒ ▼❆

22 ▼❆

23 ▼❆

24 ▼❆

25 ▼❆

26 ▼❆

27 ▼❆

28 ▼❆

29 ❒ ▼❆

30 ❒ ▼❆

Legend: “Love is in the air -- love our new coffee beans!” ❒ = Radio ▼ = Twitter ❆ = Facebook

◄ Apr 2004 ~ May 2004~ Jun 2004►

Sun Mon Tue Wed Thu Fri Sat 1 ❒

▼❆

2 ❒ ▼❆

3 ❒ ▼❆

4 ❒ ▼❆

5 ❒ ▼❆

6 ▼❆

7 ▼❆

8 ▼❆

9 ▼❆

10 ▼❆

11 ▼❆

12 ▼❆

13 ❒ ▼❆

14 ❒ ▼❆

15 ❒ ▼❆

16 ❒ ▼❆

17 ❒ ▼❆

18 ❒ ▼❆

19 ❒ ▼❆

20 ▼❆

21 ▼❆

22 ▼❆

23 ▼❆

24 ▼❆

25 ▼❆

26 ▼❆

27

28

29

30

31

Legend: “Love is in the air -- love our new coffee beans!” ❒ = Radio ▼ = Twitter ❆ = Facebook

35

◄ Jun 2004 ~ July 2004 ~ Aug 2004►


▼❆

2 ❒ ▼❆

3 ❒ ▼❆

4 ❒ ▼❆

5 ❒ ▼❆

6 ❒ ▼❆

7 ❒ ▼❆

8 ▼❆

9▼❆

10▼❆

11▼❆

12▼❆

13▼❆

14 ▼❆

15 ❒ ▼❆

16 ❒ ▼❆

17 ❒ ▼❆

18 ❒ ▼❆

19 ❒ ▼❆

20 ❒ ▼❆

21 ❒ ▼❆

22 ▼❆

23 ▼❆

24 ▼❆

25 ▼❆

26 ▼❆

27 ▼❆

28 ▼❆

29 ❒ ▼❆

30 ❒ ▼❆

31 ❒ ▼❆

Legend: Cool down for the summer with one of our Iced Coffees! ❒ = Radio ▼ = Twitter ❆ = Facebook

◄ Jul 2004 ~ August 2004 ~ Sep 2004 ►


▼❆

2 ❒ ▼❆

3 ❒ ▼❆

4 ❒ ▼❆

5 ▼❆

6 ▼❆

7 ▼❆

8 ▼❆

9 ▼❆

10 ▼❆

11 ▼❆

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

Legend: Cool down for the summer with one of our Iced Coffees! ❒ = Radio ▼ = Twitter ❆ = Facebook

36

◄ Aug 2004 ~ September 2004 ~ Cost: $200,000 Oct 2004►


▼❆

2 ▼❆

3 ▼❆

4 ▼❆

5 ▼❆

6 ▼❆

7 ▼❆

8 ▼❆

9 ❒ ▼❆

10 ❒ ▼❆

11 ❒ ▼❆

12 ❒ ▼❆

13 ❒ ▼❆

14 ❒ ▼❆

15 ❒ ▼❆

16 ❒ ▼❆

17 ❒ ▼❆

18 ❒ ▼❆

19 ❒ ▼❆

20 ❒ ▼❆

21 ❒ ▼❆

22 ❒ ▼❆

23 ▼❆

24 ▼❆

25 ▼❆

26 ▼❆

27 ▼❆

28▼❆

29 ▼❆

30 ❒ ▼❆

Legend: “Kick start your back-to-school days with a friend!” ❒ = Radio ▼ = Twitter ❆ = Facebook

◄ Nov 2004 ~ December 2004 ~ Jan 2004►


▼❆ 2 ▼❆

3 ▼❆

4 ▼❆

5 ▼❆

6 ▼❆

7 ▼❆

8 ▼❆

9 ❒ ▼❆

10 ❒ ▼❆

11 ❒ ▼❆

12 ❒ ▼❆

13 ❒ ▼❆

14 ❒ ▼❆

15 ❒ ▼❆

16 ▼❆

17 ▼❆

18 ▼❆

19 ▼❆

20 ▼❆

21 ▼❆

22 ▼❆

23 ❒ ▼❆

24 ❒ ▼❆

25 ❒ ▼❆

26 ❒ ▼❆

27 ❒ ▼❆

28 ❒ ▼❆

29 ❒ ▼❆

30 ▼❆

31 ▼❆

Legend: “Tis the season to be giving!” ❒ = Radio ▼ = Twitter ❆ = Facebook

◄ Dec 2004 ~ January 2005 ~ Feb 2005 ►

Sun Mon Tue Wed Thu Fri Sat 1 ▼❆

2 ▼❆

3 ▼❆

4 ▼❆

5 ▼❆

6 ❒ ▼❆

7 ❒ ▼❆

8 ❒ ▼❆

9 ❒ ▼❆

10 ❒ ▼❆

11 ❒

12 ❒ ▼❆

13 ▼❆

14 ▼❆

15 ▼❆

16 ▼❆

17 ▼❆

18 ▼❆

19 ▼❆

20

21

22

23

24 25

26

37

◄ Dec 2004 ~ January 2005 ~ Feb 2005 ►

Sun Mon Tue Wed Thu Fri Sat 27

28

29

30

31

Legend: “Tis the season to be giving!” ❒ = Radio ▼ = Twitter ❆ = Facebook

Next Steps:

Next Step Status/Next Step Completion Responsibility

Marketing Plan - Draft - Add inputs/changes - Budget marketing funds

- January 2004 - January 2004 - January 2004

- George and William (Bill) Giannakopoulos + Board of Directors + Marketing Team

Positioning/Pricing - Hire graphic designer - Meet WCP marketing - Implement new image and prices

- January 15, 2004 - January 2004 - January 30, 2004

- GG+WG - GG+WG - MT+ Graphic Designer

Digital Media, Advertising, Promotions

- Hire social media response team - Create Facebook, Twitter and Website - Develop “Cool down for the summer with one of our Iced Coffees!” promo materials - Develop “Kick start your back-to-school days with a friend!” promo materials - Develop “Tis the season to be giving!” promo materials - Develop “Love is in the air” promo materials

- February 2004 - February 2004 - June 20, 2004 - August 20, 2004 - November 20, 2004 - March 20, 2004

- GG+WG - Social Media Team + MT + GD - SMT+ MT + GD - SMT+ MT + GD - SMT+ MT + GD - SMT+ MT + GD

38

- Schedule radio spots

- June 20, August 20, November 20, March 20

- MT

39

Profit Loss

$1,000,000 advertising budget has been broken down into positioning, pricing, digital media, and general advertising broken down in the chart accordingly. Within positioning we will spend $100,000 and outsource a graphic designer to create a new logo and replacing communication pieces from the menu to signs for advertising ensuring the same look effective immediately. We will implement new prices for both drinks and food, replacing all menus and signage within franchises costing $20,000. Within positioning, we will spend $35,000 with the use of Facebook every day, WCP will be able to position their selves within the most popular social media outlet in Ontario, effectively targeting the young adults.

40

Within general advertising we will hire individuals to implement the advertisements accordingly and maintain every social media aspects while responding to consumers in real-time, costing an overall $845,000. There will be a loss in income from operations despite the reduction in transportation costs as there was a large increase to the advertising budget. There is an increase in revenue however with the increase in the advertising budget we are still expected to make less, but with long term intentions of increased brand awareness to improve revenue within future years. Controls: i) Eliminate the 5 least profitable items based on monitoring sales and cost of goods sold at the 6-month period to phase out items by December 2003, measures based on the successful updating of menu. ii) Select coffee beans through series of volunteer taste testing and select 3 most popular by July 2013 to integrate into menu by September 2003, measures based on the successful updating of menu . iii) Successful launch of 2 post-secondary locations with growth outside of the province with at least one location by January 2005, measures of success based on the openings of the 2 locations and a monitoring of sales and costs of both locations monthly. iv) Monitor transportation expenses and eliminate costs by successful implementation of telecommunication strategies into the company, therefore applying costs saved towards the marketing budget. v) Successful implement slight price increases to food menu and monitor sales and cost of goods sold monthly to determine profit changes. vi) Successfully implement out of store advertising campaigns and monitor sales of stores monthly and survey customers to gage brand awareness.

41

References 1. Department of Justice Canada. (2012, October 26). Canada Agricultural

Products Act. Retrieved October 28, 2012, from Department of Justice: http://laws-lois.justice.gc.ca/eng/acts/C-0.4/page-1.html#h-1

2. Department of Justice Canada. (2012, October 26). Canadian Food Inspection

Agency Act. Retrieved October 28, 2012, from Department of Justice: http://laws-lois.justice.gc.ca/eng/acts/C-16.5/page-1.html#h-1

3. Department of Justice Canada. (2012, October 26). Consumer Packaging and

Labelling Act. Retrieved October 28, 2012, from Department of Justice: http://laws-lois.justice.gc.ca/eng/acts/C-38/page-1.html#h-1

4. Department of Justice Canada. (2012, October 26). Meat Inspection Act.

Retrieved October 28, 2012, from Department of Justice: http://laws-lois.justice.gc.ca/eng/acts/M-3.2/page-1.html#h-1

5. ECO Canada. (2012, October 1). Canadian Environmental Sector Trends .

Retrieved October 28, 2012, from Environmental Careers Organization Canada: http://www.eco.ca/pdf/Canadian-Environmental-Trends-Supplemental-Report-2010.pdf

6. Ontario Ministry of Health. (2011, October 11). Smoke-Free Ontario Act —

Protecting Ontarians . Retrieved October 28, 2012, from Onario Ministry of Health and Long-Term Care: http://www.mhp.gov.on.ca/en/smoke-free/legislation/in-brief.asp

7. Sanburn, J. (2012, April 23). Retrieved October 28, 2012, from ProQuest:

http://search.proquest.com.library.sheridanc.on.ca/docview/208275395 http://www.time.com.library.sheridanc.on.ca/time/magazine/article/0,9171,2111801,00.html

8. Savitz, E. (2012, October 23). Gartner: Top 10 Strategic Technology Trends

for 2012. Retrieved October 28, 2012, from Forbes: http://www.forbes.com/sites/ericsavitz/2012/10/23/gartner-top-10-strategic-technology-trends-for-2013/

9. Statistics Canada. (2012, June 18). Average income after tax by economic

family types (2006 to 2010). Retrieved October 28, 2012, from Statistics Canada: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil21a-eng.htm

10. Statistics Canada. (2012, 09 27). Estimates of population, Canada, provices

42

and territories. Retrieved 10 28, 2012, from Statistics Canada: http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&paSer=&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=

topic: phase 2: williams coffee pub case study prepared ... · pdf filemichelle guile prepared...

Documents