STRATEGIC MARKETING MANNAGMENT REPORT

Contents
Executive Summary.....................................................................................................................................2
Vision...........................................................................................................................................................2
Mission........................................................................................................................................................2
Core Values & Cultures................................................................................................................................3
Jacaranda’s value Proposition.....................................................................................................................3
Core Identity of jacaranda...........................................................................................................................4
Geographical Location.................................................................................................................................5
Target Market..............................................................................................................................................5
Customer Needs/Wants..............................................................................................................................5
Structural Designing....................................................................................................................................5
SWOT Analysis.............................................................................................................................................6
Competitive Advantage...............................................................................................................................7
Ideas for achieving profitability/market share............................................................................................7
Investment/Expense detail..........................................................................................................................8
Marketing Strategies...................................................................................................................................8
Promotional Strategies................................................................................................................................9
Personalization of jacaranda.......................................................................................................................9
Sustain the customer loyalty.......................................................................................................................9
Pricing strategy..........................................................................................................................................10
Blue Ocean Strategies................................................................................................................................10
Add-ons.....................................................................................................................................................11
Level of customization...............................................................................................................................11
Expansion of Target market.......................................................................................................................12
Market Analysis.........................................................................................................................................12
Market Segmentation................................................................................................................................12

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STRATEGIC MARKETING MANNAGMENT REPORT

Executive Summary
Jacaranda coffee Introduced in posh areas and become a daily necessity for local coffee addicts,
a place to dream of as you try to escape the daily stresses of life and just a comfortable place to
meet your friends or to read a book, all in one. With the growing demand for high-quality
coffee and great service, Jacaranda capitalized on its proximity to the Downtown city area to
build a core group of repeat customers. Jacaranda offers its customers the best prepared coffee in
the area.

Jacaranda is operated in 1,350 square foot coffee shop within a walking distance from the
Dolman Mall. We have secured this location with three-year rent agreement with an option for
extending. We have Rs: 3,500,000/- start-up funds. The remaining cash flow requirement will be
manage if required through bank financing.

Introduction
Jacaranda Coffee is introduced for busy markets, school, colleges and offices with easy access in
terms of public transport. It believes on “Instant Maza “with delivering good Customer Services.

Vision
Jacaranda coffee becomes a first choice of Coffee lovers in the region by caring People
Happiness and Taste along with good Customer Services.

Mission
Our mission is to provide decent and comfortable atmosphere to customer by delivering good
customer services at cheapest cost.

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Core Values & Cultures

 Give priority to people‘s choice
 Always remember and cares for people ‘s Taste
 Care for People Happiness by connecting emotionally with them
 Create WOW
 Give relax and peaceful environment
 Respect customers

Jacaranda’s value Proposition

These are following important resources that characterize Jacaranda’s value Proposition

 Schedule regular entertainment: can host poetry readings or open mic nights to lure
new customers in.

 Start a frequent customer program that rewards loyal customers: Very often, coffee
shops hand out punch cards that entitle customers to a free drink after paying for 7 or 10.

 Give drinks special, unique names. Be creative and make it fun. A drink named
Chunky Monkey will most likely raise some curiosity, which may translate into an
increase in sales.

 Add iced tea in menu: Offer a new flavor every week or suggest flavor shots. Tea is
cheap to make, and therefore your potential profit margin is huge.

 Be different: when it comes to the products you offer, look at what your rivals have to
offer and go for something that is a twist on this.

 100% customer satisfaction guarantee: Customer Service is what we stand for and if
somebody does not enjoy our coffee or food products it becomes on the house. We want
to ensure that we are always serving the best to our customers and want them to enjoy
their entire experience.

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Core Identity of jacaranda

In many places of the world, including the U.S., the coffee shops has been recognized as a
destination, a comfortable place to go, hang out and in general be relaxed. Jacaranda will be
having younger set too. The decision was to create shops that acted like hubs, or hang outs, for a
younger clientele. What jacaranda will be doing to make its core identity, with good proof that it
will be working, Coffee should be something that should be enjoy each day. That’s not too
different from the rest of world and it is a smart branding step to take. We just want to make this
our core identity because making the core identity by color theme and the décor theme would be
a great idea and the customer will remember it by the comfort level of it.

Espresso Drink Other Drinks Coffees

Americano Hot Chocolate Daily Brew-Reg./Decaf.

Breve Hot Tea Organic French Roast

Cappuccino Chai Tea Latte

World Tour Blend

Latte Kid’s Hot Cocoa

Mocha Fountain Drinks

Macchiato Juice

White and Chocolate Milk

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Geographical Location
Near Dolmen Mall, Tariq Road Karachi.

Target Market
Students, professionals, working people, and anyone who enjoy coffee.

Customer Needs/Wants
 Want some relaxation during studying & working break or at shopping.
 Need to refresh mind

Structural Designing
School college students gathering / sitting area:

For colleges and schools students the sitting area is designed

funky style which was attract by them.

Working gathering, professionals sitting area:

For professional and working class a decent decorum with

silence is being maintained. So they can easily discuss official
method with a cup of coffee.

For Families and Shopaholics:

It also care customer privacy therefore the separate area designed for Families and shopaholic so
they can easily sit gossip and enjoy freely.

Shop Designed and Environment:

We care for the people’s mood therefore, this coffee shop designed according to customer needs.

 Students
 Business Professionals
 Families/Shopaholics

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The shop designed as per above mentioned criteria. Different sitting area have different
structure.

SWOT Analysis
Strength:

 Good quality of product

 Cheapest cost

 Comfortable environment

 Connect emotionally with customers / personalization

 Wide variety of products with Add-ons

 Convenient Area

 Consistently focus and give priority customer feed back

Opportunities:

 Job opportunities of many unemployed catering.

 Introduce new machine of coffee maker

 Variety of art and creativity work

Threats & Weakness:

Threats:

 New Business in posh market

 Nearest Hot & Cold Beverages Cabins/Shops
 Customer satisfaction
 Environment

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 Financial limitations
 Recruit a trained people at minimum wage

Weakness:

 Less human resource

 Existing competitors
 Plan to Overcome on Pitfalls:

Payroll is a major expense of coffee shops. Giving customers a quality product and superior
customer service is generally a big part of coffee shop success. We can meet this objective
and save money. Filling some of the shifts our self to cut back on paid workers is one option.
Reducing staff during consistently slow periods is another

Competitive Advantage
Provide all type of coffee (Latte, Cappuccino, espresso at cheapest cost and prefer the customer
taste.

Ideas for achieving profitability/market share

 By rewarding loyalty from your customers. A loyalty card encourages repeat visits,
which in turn creates hype about your business within your customers’ social circles
 Make strategic alliance with financial institute for discount on products by swapping
debit/credit cards for increase in business of both partners
 Offer package deals, such as a scone with a latte for a breakfast special. Packaging items
together make them easier to sell.

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Investment/Expense detail

Available
Description Expenses Funds

Available Budget in PKR.   3,500,000

     
Expense Detail (Forecast) in PKR    
     
Advance Shop Rent 1,000,000  
Advertising/Promotion Expense 125,000  
Coffee Makers 150,000  
Blenders 50,000  
Crockery/Grocery  500,000  
Cold Storage System 50,000  
Decoration / Interior Designing/Electronic
Appliances 800,000  
Raw material (Ingredients) 500,000  
     
Total Expenses   -3,175,000
     

Cash in hand   325,000

Marketing Strategies
Marketing strategies based on promotional, pricing, Blue and Red Ocean Strategies.

Promotional Strategies
As bliss coffee shop very conscious about customers therefore it offers following promotional
activities as per requirement.

 20% off in several Occasions like (EID, Birthday, Mother Day, New Year and so on).

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 Celebrate surprising birthday and arrange decorum accordingly.

 Personalize mugs, key chain, toys, show piece offers at all occasions.
 Introduce discount card to make a reliable / loyal customer and offer 10%off till the
expiry date.
 We use social media to connect with our customers and interact in a friendly manor.
Adding a bit of fun and personality with our brand make us more accessible and can
tempt locals who have or haven’t visited us to do so.

Jacaranda coffee promotes its product by personalizing and sustains the customer Loyalty

Personalization of jacaranda
The thing we will be using too much coffee beans shape color in our décor for example; we will
be having the sofa and the tables with the shape of coffee beans and the environment which
would attract every age of customer. The second thing we will be doing in our café for the
personalization we will be placing chalk board on the walls well it had been done in USA, but in
Pakistan this would be the first attempt it will create a funny environment to write on those
boards for their friend or the loved ones whatever they want to write.

Sustain the customer loyalty

We will be sustaining our customers by the services our employees will be having a good
speaking skills with the customer and they will be fulfilling the needs of customer in good
manner. And of Corse we will maintain our taste as customer wants, taste is the main purpose the
consumer will become a repeat customer and the taste is the thing which would help in spreading
word of mouth; our process of customization will also help in sustaining our customers because
in that way they will also enjoy to be a part of the association and they will be loyal in the greed
of earning points where they are also getting the taste and the gifts too.

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Pricing strategy
Our price will be in the sensible variety and similar to other coffee shops are in the town. The
price will not only be competitive, but the food will be tasty, well presented and large portions
will be served in a relaxing and comfortable environment. The image predictable by the pricing
will be that the customer will be getting the fair value of their money; that they do not need to be
rich to eat at the coffee shop.

The strategies we will be applying in our business plan is competition based.

In this strategy we will see what the competitor is charging, and will attempt to meet or beat
those prices. Our goal is to beat our biggest competitors on the basis of pricing. As we will be
using internet marketing, the competition based pricing strategy is used by many large retailers
on the Internet.

Blue Ocean Strategies

The strategy based on the cheapest cost and wants to become a coffee expert between many
competitors.

The following steps keep in mind while introducing coffee shop.

 Cheapest cost
 Variety of coffee
 Launching web portal for suggestions and feedback

Add-ons
Bakery Smoothies Iced Drinks

• Croissants • Fruit • Coffee

• Bagels • Blended Ice Coffee • Jumpin’ Java

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• Pie and Cakes by the slice Drinks • Iced Tea

• Muffins
• Cinnamon Rolls
• Breakfast Sandwiches
• Scones

Level of customization
We are offering a range of sandwiches and brownies but other coffee shops in the city are also
offering the same products. For the versatile customization we will be offering a loyalty
membership card and this card will be offering them the variety of largesse. Customer will earn
the point by shopping repeatedly and combination of those points will create the opportunity of
claiming the gifts the gifts we will be offering them would be:

 Free brownie on 100 points

 A branded Mug with customer’s name on 400 points
 A book on 250 points

Yes! It will be worthy effort, it will generate more customer more consumption of coffee in the
desire of getting more points. In our research this kind of customization will not affect our cost
but it will create a worthy range of customers.

Expansion of Target market

Yes in the future we will be increasing our target market. We will establish a compact standing
in our society, attracting large capacities of highly loyal, sometimes daily customers. Segmenting
a coffee shop requires more compassion than other local businesses, however, as these
establishments provide a highly social involvement greatly dependent on word-of-mouth
advertising and personal biddings from existing customers.

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Market Analysis
There is a share of prospective into the market. People of the city spend a hand sum amount on
food drinks etc. The thing which they desire is atmosphere services and different kind of
foodstuffs. And especially in coffee business lot of consumer are regular to use it, we just need to
explore it.

Market Segmentation
Our customer can be divided into two groups. The firs one is familiar with our café and desires
progressive inviting environment where they can feel relax after their studies like the morning
time is for the students and the business class here they can have a friendly environment and the
can set their business meetings with the high level of comfort. Second Group is not familiar yet
with the café and waiting to grab the opportunity to indulge in the community where they can get
the comfortable environment. Our coffee shop market falls anywhere between the ages of 18-50.
This extremely wide range of ages is due to the fact that both coffee and the environment appeal
to variety of people.

Jacaranda Coffee: Tag-Line “T-Shirt Test”

“C sy Coffeeee”

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