marketing strategies – use both strategies.

Question

positioning strategy: Describe what the position of your product will be in the minds of your target markets.
marketing mix: Include target markets. BASED ON THIS

Project: Create A Market Plan
“A sip of coffee, a taste of home”
By Abdiel Macias

Executive Summary
My project is to open a coffeehouse. Its name would be “Siplicity”. I like how simple it sounds and it shows the idea of something simple, not too complicated, but that is comfortable.
The parent company would be Restaurant Brands International Inc. also known as “RBI”. RBI is one of the world's largest quick service restaurant companies with nearly $45 billion in annual system-wide sales and over 32,000 restaurants in more than 120 countries and territories. Also, RBI owns 4 of the most famous and prominent restaurant brands: TIM HORTONS®, BURGER KING®, POPEYES® and FIREHOUSE SUBS®.
At “Siplicity”, a proud extension of Restaurant Brands International Inc., my mission is to create a warm and inviting community space where exceptional coffee and delicious food come together. By giving you the classic options for a good coffee but also embracing innovation, I aim to elevate the coffeehouse experience while upholding the values of excellence and inclusivity that define My parent company.
After a long investigation and thanks to Loopnet I found a WENDY'S that is for sale, the address is:
3176 West Shore Dr
Holland, MI 49424

I chose a coffeehouse because it’s a great business opportunity because coffee is one of the most popular beverages globally, with millions of people incorporating it into their daily routines. With this marketing strategy and commitment to quality, I can ensure the sustainability of this new café.
SWOT Analysis
|Strengths|
Brand Recognition:
-Being part of Restaurant Brands International (RBI), Siplicity can leverage the strong brand reputation and marketing resources of RBI’s established restaurants.
-Diverse Menu Offering: With the idea of combining classic options with innovative coffee and food items, Siplicity can cater to a wider audience and different consumer tastes.
-Strong Business Model: The coffeehouse industry has shown resilience and growth, with rising demand for high-quality coffee and unique café experiences.
-Location: The selected site on West Shore Dr in Holland, MI, could attract both local residents and tourists, especially if it’s in a high-traffic area.
Community Focus: The mission to create a warm and inviting space helps in building customer loyalty and a sense of community.
|Weaknesses|
-Initial Investment Costs: Setting up a new coffeehouse involves significant capital investment, including renovations, equipment, and initial inventory.
-Market Competition: The coffeehouse market is saturated with many competitors, ranging from local coffee shops to major chains.
-Brand New Concept: As a new entity, Siplicity may face challenges in establishing a customer base and brand loyalty compared to well-established competitors.
-Operational Experience: While RBI provides a great framework, there may be a learning curve in managing operations specific to a coffeehouse, especially for someone new to the café sector.
|Opportunities|
-Growing Coffee Culture: The increasing preference for specialty coffees and unique café experiences provides a significant market opportunity.
-Partnerships and Collaborations: Collaborating with local suppliers or businesses can enhance product offerings and create community ties.
-Technology Integration: Implementing a mobile ordering system or loyalty app can enhance customer convenience and promote repeat visits.
|Threats|
-Economic Downturns: Changes in the economic environment could impact consumer spending on non-essential items like gourmet coffee.
-Health Risks: Potential health crises (e.g., pandemics) can disrupt operations or reduce foot traffic to coffeehouses.
-Competition from Delivery Services: The rise of delivery apps may make it easier for competitors to reach customers without them visiting a coffeehouse.

Mission Objectives
Create a Community Space:
Aim to establish "Siplicity" as a welcoming and comfortable environment where individuals can connect over coffee and food. The café will be designed to promote a sense of community, encouraging customers to spend time in the space, whether alone or with others.

Uphold Brand Values:
Reflect the core values of Restaurant Brands International, including excellence, inclusivity, and customer focus, to ensure that every interaction with "Siplicity" is memorable and aligned with the overarching brand mission.
Marketing Objectives

Leverage Parent Company Branding:
Utilize the brand recognition and marketing resources of Restaurant Brands International to generate buzz and attract initial customers. This will include promotional materials that highlight the affiliation with RBI and the successful track records of its other brands.

Community Engagement:
Host events, such as open mic nights, coffee tastings, and local art showcases, to foster community ties and reflect the café's mission to be a community-oriented space. Encourage local artists and musicians to feature their work in the café, making it a hub for local culture.

Embrace Technology:
Develop a mobile app or website where customers can place orders in advance, earn rewards, and keep track of promotions. This will not only enhance customer convenience but also build a loyal customer base through a rewards program.
Financial Goals

Revenue Targets:
Set a clear revenue target for the first year, aiming for a specific percentage of the operational costs to be covered by coffee and food sales. For example, aim to achieve $500,000 in sales within the first year, with growth at a rate of 15% annually thereafter.

Cost Management:
Maintain a strict budget for initial investments, including renovations, equipment purchases, and initial inventory. Aim to keep startup costs below a predetermined percentage of projected first-year revenues, ensuring a balanced financial approach.

Profit Margins:
Target a profit margin of at least 15-20% on food and beverage sales by carefully managing costs of goods sold (COGS) and operational expenses. This can be achieved through efficient supply chain management and strategic pricing.

Answer 1

Marketing Strategies for Siplicity

Positioning Strategy

Positioning Statement: “Siplicity is the cozy corner where simplicity meets quality. Our coffeehouse is not just about serving coffee; it's about creating connections, embracing community, and delivering a taste of home. With a diverse menu that combines classic flavors and innovative offerings, we cater to coffee lovers who appreciate quality and comfort in every sip.”

Positioning in the Minds of Target Markets:

1. Local Residents: Siplicity will be seen as a welcoming neighborhood coffeehouse, a go-to spot for comfort and community. Our branding focuses on creating a sense of loyalty by engaging with locals through events and promoting a homey atmosphere, making it their second home.

2. Young Professionals: For professionals seeking a place to work remotely, Siplicity will be positioned as a productive yet comfortable environment. The availability of high-speed Wi-Fi, power outlets, and a serene ambiance will attract those who wish to combine work and pleasure.

3. Tourists: Visitors exploring Holland, MI will view Siplicity as a local gem that offers authentic coffee and a taste of the region’s culture. Positioning will emphasize local sourcing and unique menu items that reflect the local charm.

4. Students: The café will appeal to students looking for a casual study space with affordable coffee and food options. Siplicity will offer student discounts and create study-friendly environments through designated quiet areas.

Marketing Mix

Target Markets:

• Local Residents
• Young Professionals
• Tourists
• Students

Product:

• An extensive menu that features classic coffee options (espresso, drip coffee, etc.) and innovative drinks (seasonal specialties, non-coffee beverages, etc.).
• A selection of freshly baked goods, light lunches, and healthy snack options to complement the coffee offerings.
• Regular rotating specials to keep the menu exciting and seasonal, promoting sustainability through local sourcing.

Price:

• Competitive pricing strategy that reflects the quality of the offerings while remaining accessible to our target demographic.
• Implementing bundle deals (e.g., coffee and pastry discounts) to incentivize purchases.
• Student discounts and loyalty rewards to encourage repeat visits and build brand loyalty.

Place:

• The physical location in Holland, MI will be a cozy and inviting space designed with ample seating, warm decor, and community-oriented areas for groups.
• Implementing a mobile ordering option through an app or website, allowing customers to order ahead and skip the line, enhancing convenience and user experience.

Promotion:

• Digital Marketing: Utilize social media platforms (Instagram, Facebook, TikTok) to showcase the café's ambiance, menu items, and community events. Engage customers with compelling visuals and consistent posting.

• Local Partnerships: Collaborate with local artists, musicians, and businesses to host events that attract the community, like open mic nights, art displays, and tasting events.

• Loyalty Program: Launch a mobile app that includes a rewards system where customers earn points for every purchase, redeemable for free items or discounts, fostering customer retention.

• In-house Promotions: Create promotional materials highlighting the quality of the coffee, local sourcing, and community events to distribute in-house and through local advertisements.

People:

• Hiring enthusiastic staff trained in exceptional customer service who will embody the café's mission of warmth and inclusivity, creating a welcoming experience for customers.
• Engaging in community training and initiatives that allow staff to actively participate in community engagement projects.

Physical Evidence:

• The ambiance and decor of Siplicity will include warm colors, comfortable seating, and local art that reflects the community spirit, creating a visual representation of the brand's values.
• Quality packaging for to-go orders that includes branding, reinforcing the experience even outside the café.

Conclusion

By focusing on a clear positioning strategy and a comprehensive marketing mix tailored to the specific needs and characteristics of our target market, Siplicity will not only stand out in a competitive market but also create a loyal customer base that sees our coffeehouse as not just a place to get coffee, but a cherished community space. This multi-faceted approach will help establish Siplicity as an integral part of the Holland community, creating lasting connections with customers through exceptional service and quality offerings.