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Marketing and Operational Plan

847 words | 3 page(s)

The US is by far the world’s largest consumer of coffee. The rate of coffee consumption among adults is currently at 83%, up from 78% in 2012 (National Coffee Association of USA, 2013). The age brackets involved in this research are 18-24 year-olds, 25-39 year-olds, 40-59 year-olds and 60 years and older. Statistics from the National Coffee Association of USA further indicate that generally, 63% of people in the US take coffee every day. These statistics make the Perfect Cup the perfect company to satisfy the beverage needs of the average American.

Product Offerings
The Perfect Cup will strive to offer customers the best tasting coffee in the Plumas Lake region, California, and at affordable prices. To achieve this, ingredients of high quality will be used in the preparation of the coffee varieties, with strict adherence to the set preparation guidelines. In addition to the coffee drinks, the company will provide healthy snacks, majority of these being organic. Dessert will also be served, including some light salads.

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Market Segmentation
The market targeted by the Perfect Cup is segmented along geographic, demographic and psychographic perspectives. Geographically, the Perfect Cup is strategically located at the Plumas Lake region, California. The competitive advantage of this location is that there is no other coffee shop within a 12-mile radius from where the Perfect Cup is located.

Demographically, the company will target 18-40 year-olds in the location, who are more likely to consume coffee in the region (National Coffee Association of USA, 2013). In terms of the psychographic perspective, the Perfect Cup will capture consumers from colleges/universities, who are frequently on the lookout for economical places for socializing with peers. Another group in this category is the young working professionals, who occasionally visit coffee shops for purposes of relaxation. Additionally, shoppers are also within this segmentation, and are often in search of places to rest and have light meals and drinks after their shopping sprees.

Target Market
Going by the statistics from the National Coffee Association (2013), the Perfect Cup target market will be composed of sophisticated teenagers, as well as 18-40 year-olds. The target market will include college/university students, whose age range is mainly between 18-24 years old. Shoppers of all ages between 18-40 years will also be targeted. Young, working professionals around the Plumas Lake region also fall within the target market of the company, as they are more likely to spend time after or even in between work hours unwinding in the coffee shop.

Production Plan
Establishing credibility for any brand begins right from the production stage (Sharma, 2013). This is chiefly why the Perfect Cup will invest in high-quality coffee machines to be used in the production of the diversified coffee beverages. The menu available at the Perfect Cup will be built on coffee varieties that are espresso-based; such as cappuccino, latte and mocha. The company will offer each of these espresso-based drinks with skimmed, whole or soy-milk. The Perfect Cup will offer these coffee beverages based on “shots” of espresso. The espresso shots will be prepared in the espresso machines by using high pressure to force heated water through coffee beans that have been ground. The “shots” will then be combined with additives like caramel, cocoa or steamed milk. Only highly-skilled coffee experts will be employed at the Perfect Cup, to ensure that no deviation in coffee quality occurs.

Pricing Strategy
As an essential element of any business, pricing represents a significant contribution to either the profits or the losses incurred (Nagle, Hogan, & Zale, 2010). Price directly affects the volume of sales. Nagle et al. further argue that relatively low prices are a competitive advantage because consumers frequently compare prices in an industry before switching to the lowest-priced brand.

It is solely for the aforementioned reasons that the Perfect Cup will endeavor to offer prices that are competitively low. The relatively low prices will cut across all income levels; hence, the coffee beverages sold by the Perfect Cup will be affordable to the target market. This pricing strategy, capitalizing on low penetration prices, will help capture a loyal market and yield profits over the short-run (Nagle, Hogan, & Zale, 2010).

Distribution and Promotion Strategy
Fliers will be distributed around the Plumas Lake region, which will be done three weeks before the official opening of the Perfect Cup. The areas targeted are shopping malls, colleges and universities adjacent to the Perfect Cup, and in selected office buildings. Furthermore, the Perfect Cup will offer discount coupons to frequently visiting customers. The Perfect Cup will also invest in market research of the buying trends of the target market. We believe that great service in a suitable environment encourages loyalty among clientele, despite the social, technological, political or economic climate of the region (Sharma, 2013).

    References
  • Nagle, T., Hogan, J., & Zale, J. (2010). The Strategy and Tactics of Pricing. New Jersey: Pearson Education Inc.
  • National Coffee Association of USA. (2013). National Coffee Drinking Trends 2013. Retrieved September 17, 2013, from National Coffee Association of USA: http://www.ncausa.org/i4a/pages/index.cfm?pageID=731
  • Sharma, G. (2013, February 12). 4 Key Marketing strategies from the Start-up World. Retrieved September 17, 2013, from Forbes: http://www.forbes.com/sites/gaurisharma/2013/02/12/4-key-marketing-strategies-from-the-startup-world/

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