DECA Manual - Final Outline

Castle View High School

School Address: 5254 N Meadows Dr, Castle Rock, CO 80109
Owen Clarke, Paige Powell, & Grant Taylor
Dec. 6, 2022

Buying and Merchandising Operations Research Event: Dutch Bros

They are getting the product into the hands of the customer through forecasting, planning,

buying, displaying, selling, and providing customer service. Examples may include any

retail or wholesale business that provides consumer goods: specialty stores, department

stores, shopping malls, grocery stores, convenience stores, pharmacies, discount stores,

farmers markets, and car dealerships.

 Table of Contents

I. EXECUTIVE SUMMARY...........................................................................................1

II. INTRODUCTION…………………..………………………………...................………………4

A. Description of the business or organization……………………………… ………….4

B.Description of the target market (demographics and psychographics)........4

C. Overview of the business or organization’s current state of business as a result of

interruption………………………………………………………………………..........……………5

III. RESEARCH METHODS USED IN STUDY ……….…………………........…………6

A. Description and rationale of research methodologies selected to conduct the research study ………..6

B.Process used to conduct the selected research methods…………...…………7

IV. FINDINGS AND CONCLUSIONS OF STUDY……………..…............……………8

A. Findings of the research study.............................................................................8

B.Conclusions based on the findings......................................................................9

V. PROPOSED STRATEGIC PLAN........................................................................10

A. Objectives and rationale of the proposed strategic plan..............................10

B. Proposed activities and timelines......................................................................11

C.Proposed metrics or key performance indicators to measure plan effectiveness....................................12

VI. PROPOSED BUDGET ........................................................................................13

VII.BIBLIOGRAPHY..................................................................................................14
 I. EXECUTIVE SUMMARY:

Dutch Bros is a variety shop that sells all types of drinks including; coffees, teas, energy

drinks, sodas and more. Starting in 1992, the brand has grown tremendously over the last 30

years. Dutch Bros has over 530 locations in 12 states. Attracting a younger generation of people,

Ducth Bros has an amazing ability of connecting and interacting with its customers. From social

media to in-person conversations, Dutch Bros has made it their mission to obtain their goal of

making a difference - one cup at a time. “We may sell coffee, but we’re in the relationship

business. Whether we’re slinging drinks or serving up smiles, Dutch Bros is all about you!”

Dutch Bros’ social media accounts have a huge impact on their marketing. Dutch Bros informs

their customers about new products or exciting news through posts on instagram or facebook.

This is how they market new drinks or let people know about upcoming events/opportunities.

Dutch Bros does an amazing job of keeping up with their customers by taking part in popular

trends and activities. They show appreciation for their customers through rewards on the Dutch

Bros app and always making an experience at Dutch Bros a positive one. We believe that taking

their social media influence further could really benefit the company. One popular social media

that Ducth Bros could take part in is Snapchat. Snapchat often creates partnerships with large

brands so that they can advertise products through snapchat filters. If Dutch Bros created a cool

filter through Snapchat to advertise a new drink or product, they might find themselves with a lot

more business. It is a cool, creative, and unique way to advertise. This could bring in new

customers that Ducth Bros doesn't usually have.

 II. INTRODUCTION:

Description of the business or organization: Dutch Bros. Coffee is a publicly held drive-
through coffee chain in the United States. Dutch Bros Inc. operates and franchises drive-thru
shops. It offers Dutch Bros hot and cold espresso-based beverages and cold brew coffee
products, as well as Blue Rebel energy drinks, tea, lemonade, smoothies, and other beverages
through company-operated shops and online channels. Dutch Bros established the Dutch Bros
Foundation to actively engage its communities through giving and action. The Dutch Bros
Foundation supports programs and projects that build deeper connections through engagement in
three core areas: Youth, Health, and Origins.

Name of Business: Dutch Bros

Location of Business Headquarters: Grants Pass, Oregon! That’s where Dutch Bros began in
1992.

Website for the business: https://www.dutchbros.com/

Size of Business: The company operates approximately 500 stores across 12 states and employs
about 16,500 people.

Leadership/Executive team:
- Travis Boersma (Co-founder and Executive Chairman): Mr. Boersma is the Co-founder
and Executive Chairman of Dutch Bros Coffee. He is deeply involved in day-to-day
operations and invested in maintaining the culture he and his late brother, Co-founder
Dane, worked hard to nurture. Mr. Boersma believes Dutch Bros is an integral part of
each community it calls home and encourages franchisees, operators, and baristas alike to
be a positive force for good. Caring for people is the keystone of the Dutch Bros model,
and collectively, the Company donates several million dollars annually to local and
national causes.
- Joth Ricci (President & Chief Executive Officer): Mr. Ricci is the President and CEO of
Dutch Bros Coffee. Prior to joining Dutch Bros in January 2019, he served as President
and CEO of Adelsheim Vineyard, President of Stumptown Coffee Roasters, and CEO of
Jones Soda Co. In addition to his leadership in the beverage industry, Mr. Ricci serves on
the Oregon Governor’s Racial Justice Council, sits on the board of the Oregon Business
Council, and co-founded TASTE for Equity. He is dedicated to mentoring, coaching, and
advising boards, organizations, and individuals around key strategic initiatives to ensure
strong economic growth throughout the region and equitable opportunities for all. Mr.
Ricci earned a Bachelor of Science in Business Education from Oregon State University.
- Charley Jemley (Chief Financial Officer): Mr. Jemley is the Chief Financial Officer of
Dutch Bros Coffee and has over 30 years of restaurant finance and restaurant real estate
development experience. Prior to joining Dutch Bros in January 2020, he had a 16-year
 career at Yum Brands, a 12-year career at Starbucks Coffee Company, and served as
Chief Financial Officer for CKE Restaurants from 2018 to 2020. Mr. Jemley earned a
Bachelor of Science in Accounting from the University of Louisville and an MBA from
the University of Washington.
- Brian Maxwell (Chief Operating Officer): Mr. Maxwell is the Chief Operating Officer of
Dutch Bros Coffee. After starting as an original “broista” in 1992, he began his career at
Dutch Bros headquarters in 1999 as vice president of growth and franchise coordinator,
envisioning and constructing the organization’s franchise system. Mr. Maxwell dedicated
seven years to overseeing the expansion of Dutch Bros, helping take the company from
12 locations to 100. He continued to oversee growth until 2009 when he stepped into the
general manager position before taking on his current role in which he leads the retail
team to deliver strategic growth plans in real estate expansion and overall store
performance. Throughout his time with Dutch Bros, Mr. Maxwell has served as a key
advisor in strategic cross-functional planning. Prior to joining Dutch Bros, he worked as a
financial planner and commodity and stockbroker. Mr. Maxwell studied international
affairs at Lewis & Clark College in Portland, Oregon.
- John Graham (Chief Marketing Officer): Mr. Graham is the Chief Marketing Officer of
Dutch Bros Coffee and has more than 20 years of experience in marketing and general
management with a focus on strategic leadership, brand building, and people
development. Prior to joining Dutch Bros in August of 2020, he served as CEO of Triton
Strategy Partners, LLC, as Chief Marketing Officer at Align Technology and
GlaxoSmithKline Consumer Healthcare, and had a 15-year career at Johnson & Johnson.
At Johnson & Johnson, Mr. Graham completed his career as vice president of corporate
equity after having worked in the U.S., Australia, and China across the company’s
consumer, medical device, and pharmaceutical sectors. Mr. Graham earned a Bachelor of
Arts in Economics from the University of California, San Diego, and an MBA from
Cornell University’s Johnson Graduate School of Management.
- Leigh Gower (Chief Technology Officer): Ms. Gower is the Chief Technology Officer of
Dutch Bros Coffee and has more than 20 years of experience in helping companies
transform customer service through technology. Prior to joining Dutch Bros in December
2021, she served as Vice President, Technology at Blue Nile, as Senior Director, Product
& Technology at T-Mobile, and as Management Consultant at Slalom Consulting. Ms.
Gower earned a Bachelor of Science in Economics and Spanish from the University of
Puget Sound and professional certificates from Villanova University, the University of
California, Berkeley, and the University of Washington.
- Victoria Tullett (Chief Legal Officer): Ms. Tullett is the Chief Legal Officer of Dutch
Bros Coffee and has more than 20 years of experience helping diverse organizations
manage operational risk and achieve record levels of growth, compliance, and
profitability. Prior to joining Dutch Bros, she served Papa Murphy’s for more than 20
years in various roles including General Counsel, Chief Legal Officer, head of new store
Development, and Human Resources. Her experience with high-growth companies, risk
management, and franchisee relations align with the next stage of Dutch Bros’
development. In addition to her role at Dutch Bros, Ms. Tullett will continue to serve on
the Board of Directors for Vancouver Symphony Orchestra. Ms. Tullett is a graduate of
Lewis & Clark, Northwestern School of Law in Portland, Oregon.
Annual Revenue:
- Annual revenue = $497.9 Million (Peak 2021)
- Annual coffee revenue = $327.4M
- Employees = 16,500
- Revenue per employee ratio = $30,174

Mission Statement:
“It's our mission to make a massive difference, one cup at a time. In 2006, we started hosting
company-wide givebacks. Thanks to our customers, we're now able to help support our
communities through Dutch Luv, Drink One for Dane, and Buck for Kids.”

Products and Services:

- “Killer coffee, blended drinks, iced or hot drinks, energy drinks, and more.”
- “Get the Dutch Bros Coffee experience online at shop.dutchbros.com. Shop Coffee, Gift
Cards, Mugs, and Accessories.”
- “We may sell coffee, but we're in the relationship business. Whether we're slinging drinks
or serving up smiles, Dutch Bros is all about you!”
- “We are committed to creating a better future for each of our employees, customers, and
communities.”
- “Our DEI program ensures all customers, crews, and communities are welcome, honored,
and loved”
- “Giving back through fundraisers, grants and donations is part of our DNA as a
company”
- “We’re committed to diversity, equity, and inclusion in our company, at the window and
in our communities and support an environment of love, acceptance and kindness.”
- GIVE BACK EFFORTS:
- DUTCH LUV DAY: Every February, we donate $1 from every drink sold to local
organizations working to fight food insecurity in our communities
- DRINK ONE FOR DANE DAY: Held in honor of co-founder Dane Boersma, this event
raises funds for the Muscular Dystrophy Association to find a cause and cure for ALS.
- BUCK FOR KIDS DAY: Every September, we dedicate a day to give $1 from every
drink sold to nonprofit organizations helping create brighter futures for local kids

Logo for Business:

Images of the business, products, or services:

Description of the Target Market: Dutch Bros audience is 47.33% male and 52.67% female.
The largest age group of visitors is 25 - 34-year-olds. Dutch Bro's audience is interested in
Computers, Electronics, and Technology > Social Media Networks & shopping. Dutch Bros is
winning compared to its competitors by going faster, broader, and younger. Dutch Bros outlets
are mostly drive-thrus, which helped it keep growing during the pandemic. Baristas whip up a
variety of quirky drinks including a “not so secret” menu with names like the Bob Marley and
the Candy Cane. The company has made no secret that it’s aiming at high school kids who might
make the chain a habit.

Demographics:
● Income- Very high Dutch Bros had sales of $228 million in the first six months
of 2021, three-quarters from company-owned shops, it booked a small profit of
nearly $6 million.
 ● Age/Generation- Dutch Bros age distribution- 26.90% ages 18-24, 27.52% ages
25-34, 17.73% ages 35-44, 14.29% ages 45-54, 9.07% ages 55-64, and 4.48%
ages 65+
● Level of Education- Based on most of the audience age distribution that goes to
Dutch Bros they are either college students, college graduates, or have an
advanced/professional degree.
● Gender- Audience composition can reveal a site's current market share across
various audiences. dutchbros.com's audience is 47.33% male and 52.67% female.
The largest age group of visitors is 25 - 34-year-olds. Based on that most
customers are married with a couple of children.
● Occupation- Dutch bro's audience occupations are a mix of blue and white collar
workers with some professional careers, dutch bros don’t get a lot of unemployed
customers. Most customers either have blue or white-collar careers and like to
start their day with a cup of coffee or tea, and professional careers also like to
start their day the same way.
● Home Ownership- Most Dutch Bros customers (especially in Castle Rock) own
their homes. It is a pretty broad spectrum of customers that come through, but
when a Dutch Bros location is in a suburban area, they are more likely to interact
with people who are pretty well off.
● Geographic: Where do the customers live, work, and eat? - Suburban and city
areas
● Psychological: Customer lifestyles - Lots of people in Castle Rock are very
active. Activities here include; working, biking, and hiking - Sometimes people
need some energy or just a refresher. People living in Castle Rock are generally
friendly, they strive to have the nice interactions that Dutch Bros provides.
● Overview of Business Marketing Strategy - Dutch Bros markets to customers
mainly through social media and interactions with people. Dutch Bros has a way
of making their drinks and style look aesthetically pleasing, which draws in
customers.

III. RESEARCH:

Primary Research: (information found from local Dutch Bros worker, Macy Key)
- Dutch Bros is very involved with their customers. A main marketing strategy they use is
social media. Dutch Bros can reach out to different audiences by notifying them on social
media platforms.
- Every first Wednesday of the month, Dutch Bros hands out fun stickers to their
customers. People go get a drink on these days specifically for this reason. Everyone
loves free stickers.
 - A recent marketing strategy that Dutch Bros has begun using is their holiday cups. Most
people love Christmas, and seeing holiday cups from Dutch Bros gets them excited for
the season. It gives people a reason to go through the drive-thru to get a drink.

Secondary Research:

- Dutch Bros targets young customers with its vibrant hot and cold beverages.
- The company plans to open new stores for many years to come.
- Dutch bros statement/promise is that Dutch Bros strives to be a force for good through
outstanding customer service and killer coffee.
- Dutch Bros isn’t just a normal coffee shop. They do much more than sell coffee. They
offer many other drinks such as smoothies, frosts, teas, Italian sodas, rebels, and freezes.
You can also get them with almost any flavor you can think of. Another option you have
is to get your drink hot, cold, or blended.
- Dutch Bros gives you a lot of freedom in making the perfect drink for yourself.

IV. FINDINGS:
What types of marketing does the business already use to reach customers?
- Billboards
- Designed coffee/drink cups
- Stickers
- Mobile App
- Social Media

Examples:
V. STRATEGIC PLAN:
Marketing Idea #1

Dutch Bros has a following of younger people and that is who they should market their product
to. Instead of making a commercial or a newspaper ad dutch bros should lean toward making
advertisements on social media like Instagram. Social media ads are the way of the future. A
good idea for an Instagram post to advertise Dutch bros would be to make a post of a new drink
and then have an influencer repost it.

Marketing Idea #2

Dutch Bros has a lot of influence on their customers through social media. Big companies like to
partner with Snapchat to market their products. Snapchat makes filters for people to use. These
filters often contain advertisements for certain products and companies. There are still 319
million users active on Snapchat each day. That’s millions of Snaps created, sent, and seen every
day. Because so many people have and use Snapchat, this is a great marketing idea. If Ducth
Bros pairs with Snapchat to create a cool filter, people might be interested and check the
company out for themselves.

Marketing idea #3:

Dutch Bros can improve their business and generate more income by hiring
influencers/celebrities to represent Dutch Bros. They could use influencers/celebrities on tik tok
by making ads. The use of influencers/celebrities on TikTok would gain them more publicity
because there are more than a billion users on TikTok. Putting ads on TikTok would grab a lot of
people's attention, plus having influencers/celebrities on the ad would gain Dutch Bros a lot of
new customers, generating more income.

VI. PROPOSED BUDGET:

To create a partnership with Snapchat and create a filter to promote your brand, it costs

about $15-$20 a day. That would come out to be $450-$600 a month and $5,400-7,2000 a

year.

Budget Spending Saving

$15,000 $13,000 $2,000

$5,800 paid upfront for marketing team

$600 paid monthly for snap chat filters.

VII. BIBLIOGRAPHY:
19, October, et al. “Dutch Bros Is the Gen Z Starbucks Play.” Nasdaq,
https://www.nasdaq.com/articles/dutch-bros-is-the-gen-z-starbucks-play-2021-10-19.

“Contact Us.” Dutch Bros, https://www.dutchbros.com/contact-us.

Dutch Bros Coffee Revenue: Annual, Historic, and Peak Revenue.

https://www.zippia.com/dutch-bros-coffee-careers-203816/revenue/.

“Dutch Bros Coffee Shop.” Dutch Bros Shop, https://shop.dutchbros.com/.

“Dutch Bros Inc. (BROS) Company Profile & Facts.” Yahoo! Finance, Yahoo!, 9 Dec.
2022, https://finance.yahoo.com/quote/BROS/profile/?
guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_s
ig=AQAAADfsRzA8GsiFaOUXaX_0Ht4En6re0ttssPogjh3ZZhcvg4uAzDn_j6nd2HYCT
YJMiV0E06Qv2DkZQcEHSgPaS3Ff8UyhBCSKLVhQ-eZsAo-
gWX1g7aKjDeou4DIpCCDD0PuTCDz6RL3eMgG1DkDXjNCDUj43__pCWmO6qDlc1
Wwg.

Dutchbros.com Traffic Analytics & Market Share | Similarweb.

https://www.similarweb.com/website/dutchbros.com/.

Dutchbros.com Traffic Analytics & Market Share | Similarweb.

https://www.similarweb.com/website/dutchbros.com/.

Hankwitz, Austin. “Dutch Bros (BROS): The next Starbucks?” Dutch Bros (BROS): the
Next Starbucks?, Rate of Return by Austin Hankwitz, 17 Mar. 2022,
https://austinhankwitz.substack.com/p/dutch-bros-bros-the-next-starbucks.

“Homepage.” Dutch Bros, https://www.dutchbros.com/.

“Our Story.” Dutch Bros, https://www.dutchbros.com/our-story.

Selsky, Andrew. “After Humble Beginnings, Oregon's Dutch Bros Launches IPO.” Opb,
OPB, 15 Sept. 2021, https://www.opb.org/article/2021/09/15/after-humble-beginnings-
oregon-s-dutch-bros-launches-ipo/.