Marketing Plan for an Existing Company; Promotion in a New Country
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ANSWER

Marketing Plan for Introducing a Coffee Roasting Company in New York City

Company overview

The Coffee Roasting company is a startup company in New York City in the United States. It aims to target both young and old adults who are coffee enthusiasts and enjoy different tastes and flavors of coffee. The company targets coffee users in cafes and restaurants, where takeaways and sit-ins are all allowed. The startup aims to use the finest coffee beans and distinguish its coffee from its competitors in the country. The company aims to have a strong marketing strategy to ensure that consumers can recognize the firm’s exceptional coffee.

Objectives 

1. The Coffee Roasting company aims to attract a huge consumer base of coffee enthusiasts, which will lead to increased revenue from the sales, and ultimately lead to a huge profit margin
2. The company aims to position itself as the leading coffee roasting company in the US and exceed the competition by producing high-quality coffee.

Situational Analysis

 Strengths 

1. The company has the required amount of capital to start the venture, so not entering the market.
2. The city of New York has a huge population, hence providing a high number of potential consumers, which is a significant advantage to the firm.
3. The company has many experts in the coffee sector who will enable it to achieve its set goals and objectives.

Weakness 

1. The company lacks prior experience in the coffee sector because it is a startup.

Opportunities 

1. A suitable working environment for the company in New York City with joint agencies and government authorities (Miller, 2020).
2. The opportunity for more growth giving the rising number of coffee lovers in major cities across the United States.

Threats

1. A huge threat of many competitors with similar businesses in New York City.
2. A threat of many regulations and legislative procedures before acquiring the required licenses for the company.
3. A possible threat of introduction of new regulations that may delay the company from exploring its overall capability, limiting it from attaining its set goals and objectives (KAVANAGH, 2019).

Segmentation

The major market segments to target will include persons who love working in coffee shops, enthusiasts of coffee, and those who like having regular coffee dates in coffee shops and malls. Through market segmentation, marketing managers better understand customer-specific needs and wants and how best these needs can be met (Camilleri, 2018). Lifestyle is another significant segment for the firm since people who like hanging out in quiet areas are mainly coffee enthusiasts. They are likely to be prospective consumers.

Targets

The company targets both genders since they will be valuable in supporting the business. The young adults aged between 20 and 35 are the primary targets for the coffee company since they are the most significant coffee enthusiasts in the city.

Position analysis

The firm will wish to establish itself as the provider of quality roast coffee, which will be more affordable than other competitors in the city.

Marketing mix

Product

Roasted coffee sold in cafes, restaurants, and coffee shops. The startup aims at using the finest coffee beans to create different flavors and tastes to attract and maintain customers and stand out among competitors. Target customers for the roasted coffee are; cafes, restaurants, and coffee shops.

Price 

Determining the price of a product is vital for a startup is vital since it will either offer the business an opportunity to make a profit and grow or suffer losses and close up.

A person starting a business must be careful in balancing between making a profit and beating the already existing competition in the market. The coffee will be sold at a relatively affordable price as compared to the competitors within the city.

Place 

Location of any startup plays a crucial role in its profitability, and more so, a coffee roasting business. The location of the startup will be New York City in the United States.

A coffee roasting startup needs to be in a cool place where people relax and take some time off their busy schedules. Therefore, New York is an ideal location for the company since it has a large population providing many potential customers. Additionally, most of New York’s population is active young individuals, both male and female, which increases the target market for our product

Promotion 

Social media platforms are excellent marketing and promotion spaces for businesses. A Facebook page, Instagram account, and Twitter handle for the startup will be of great importance in creating awareness about our coffee and interacting with our customers. Other marketing platforms will include the mainstream media such as TV, radio, and newspapers/magazines.

Additionally, posters across the city and giving away company leaflets will be included in the promotion.

Branding Strategy

The essence of branding the coffee is to deliver a special message to the consumers through its name, packaging, logo, and theme colors (D’Avino et Al.). The coffee will be packaged in attractive airtight containers made from recyclable materials. The content of the container will be included in the labelling, whether natural or artificial flavoring, the origin of the beans and the type of roast used. The manufacture and expiry dates will also be included in the labelling. The logo will be of a mug with coffee beans drawn on one side and smoke emerging from the mug; on the other side, there will be a slogan “any time is coffee time.”

Ethical Consideration

The company intends to acquire certified coffee beans to ensure that the money will benefit the farmer growing the coffee (Gerard et Al.). Additionally, the startup will ensure that its packaging is environmentally friendly by using recyclable materials and reusable containers. To be included in the packaging will be the source of the coffee beans and how the roasting was done. Further, the startup will ensure that roasting and expiry date will be indicated on the packaging. To curb the challenge of the harmful emissions, the company will purchase quality machines that have been refurbished and upgraded to meet the expected demand for quality, consistency, and are environmentally friendly.

Financial Projections

The company’s projected total sales in the first year are $122,820.00, cost of goods is expected to be $68,205.00, bringing the gross profit to 54,615. The total expenses are estimated to be 45,210; hence net profit achieved by subtracting expenses from the gross profit is $9,405. The net profit in the second year is expected to rise to $13,703 due to the lower cost of advertisement as the coffee will be more popular among the consumers. The third year will see a tremendous increase in sales and consequently profits as the company will have established a consumer base and will have a share of the market and better experience in roasting the coffee.

Conclusion

The coffee roasting business is an excellent investment with a broad market base and the potential to make a reasonable profit. However, it is a business with stiff competition, especially from the established and experienced businesses. The company’s entry into the market is strategic, and we can enlarge and open more branches across the country. New York is a strategic location due to being highly crowded, and the population consisting of young, energetic individuals, both male and female, who are the target consumers. The startup intends to penetrate the market by providing high-quality coffee at a relatively lower price than the current prices and intense marketing and promotions through social media and mainstream media.

References

Camilleri, M. A. (2018). Market Segmentation, Targeting and Positioning. In Travel Marketing, Tourism Economics and the Airline Product. Springer, Cham, 69-83.

https://www.um.edu.mt/library/oar/bitstream/123456789/21433/5/Market%20Segmentation%20Targeting%20and%20Positioning.pdf

D’Avino, M., De Simone, V., Iannucci, M., & Schiraldi, M. M. (2015). Guidelines for e-startup promotion strategy. Journal of technology management & innovation, 10(1), 1-16.

http://dx.doi.org/10.4067/S0718-27242015000100001

Gerard, A., Lopez, M. C., & McCright., A. M. (2019). Coffee roasters’ sustainable sourcing decisions and use of the direct trade label. Sustainability, 11(19), 5437.

https://doi.org/10.3390/su11195437

KAVANAGH, C. (2019). New Tech, New Threats, and New Governance Challenges: An Opportunity to Craft Smarter Responses? Retrieved from https://carnegieendowment.org/2019/08/28/new-tech-new-threats-and-new-governance-challenges-opportunity-to-craft-smarter-responses-pub-79736

Miller, B. (2020). New york has a suitable working environment. Retrieved from https://www.bizjournals.com/newyork/news/2020/06/25/new-york-city-ranks-second-for-worls-best-tech.html

Saari, T. (2015). Marketing Plan for a New Product: A Study for a Case Company.

https://www.theseus.fi/handle/10024/92324