Magnolia

coffee
company
Marketing Plan
 CONTENTS OF THIS project
1. Marketing Overview
1.1 Marketing Plan
1.2 Target Market
1.3 Ideal Customer Profile
1.4 Competitor Profile
1.5 Competitor Analysis
1.6 SMART Marketing Objective
1.7 KPI
1.8 SWOT Analysis
2. Customer Persona
2.1 Interview
2.2 Empathy Map
3. Customer Journey Map
4. Summary of the Marketing Plan
5. Value Proposition
6. Marketing Strategy
 INTRODUCTION
Company Background

The Magnolia Coffee Company was founded in 2009 in Summerville, South Carolina when owner Dan
Sumner went looking for a local neighborhood place to meet with friends and clients that was warm,
welcoming, and inviting. After years of traveling and working abroad, Dan settled down outside of Charleston
with his dog Buddy. Bringing his interest in international, fair trade coffees, he purchased and outfitted his
first coffee shop out of what would be the first of over 200 local neighborhood retail locations across the
Southeast United States.
Located in suburbs outside of major metropolitan areas with populations of 50-75k people, each Magnolia
Coffee Company location is known for its local hometown flavor and community ties. Retail locations are
situated near heavily populated office buildings, high traffic retail shopping and eating establishments and
next to gym and fitness studios.
Marketing has been more of a buckshot approach without consistent or strategic actions. Dan started
building his marketing efforts by marketing to everyone who enjoys coffee. He also created a website, a
Facebook page, and even an online app to assist with online ordering and a frequent customer rewards
program. While word-of-mouth and some social media posts have gained a dedicated and loyal following,
the last two years have seen stagnant growth. Dan is looking for a marketing plan that will help build his
customer base and his bottom line.
 01.
Target
Market
Magnolia Company

Magnolia Coffee Company’s target
market are both male and female
customers in a wide age group of 20-60
years, with a focus mostly on urban and
suburban centres, heavily populated
office buildings, high traffic retail
shopping and eating establishments and
next to gym and fitness studios.
STUDY OBJECTIVES
The target market is relatively
affluent-middle and upper class - as
well as educated, socially aware, with
active and busy lifestyles.
The target market for coffee includes
drip coffee drinkers, coffee shop
lovers, specialty coffee drinkers, and
whole bean buyers - these might cover
students, freelancers, young parents
etc.
Ideal customer
profile
Ideal customer profile can be
classified in 3 categories: young
professionals, students, working
parents. Daniel, a highly-educated,
single male, web developer, aged
29, earns 95,000$/year, drinks a lot
of coffee per day while working, he
has a busy and active lifestyle, and
brings his laptop to the coffee
shop to work there.

Stay Roasted
Coffee
For the past 7 years, Stay Roasted Coffee
Shop has been a local staple, offering coffee
subscriptions to coffee lovers, making top
quality, freshly roasted whole bean coffees
available in the most convenient and
affordable way possible. In addition, they
offer annual memberships for 79.95$,
providing specialty-grade selection, roasted
right before shipping. Although they have a
high-retention rate with long-time clients,
there is a gap in offering auto or renewable
memberships and utilising a booking engine
outside their website via social media.
Competitor Profile
Peet’s
Coffee
Peet’s Coffee- is a U.S based company founded
in Berkley, California. As one of the specialty
roasters in the U.S, Peet’s coffee has a long
lasting history and strong reputation in the
coffee industry. The company operates in 327
retail locations in the U.S and offers its
products both in physical stores and available
online. Peet’s Coffee only sources the highest
quality coffee beans and roasts them to
perfection. This focus on quality has helped
the company build a strong reputation among
coffee enthusiasts. Although, their price per
coffee is higher than their competitors,
6,99$/coffee.
 Competitor Analysis

There is a strong emphasis on beverage sales,

amounting over $18 billion in 2021, compared to food
product sales of just over $5 billion during the same
period. Additionally, the global coffee market is
anticipated to reach$144.68 billion in 2025, growing at
a CAGR of 7.60% for the period spanning 2021-2025.
As stated previously, Peet’s Coffee has more retail
shops 327 compared to Magnolia’s Coffee 242, it offers
several advantages over its competition:
- Tech friendly locations, free internet access,
multiple outlets for laptops and tablets;
- Exceptional customer service, thanks to the highly
trained baristas.
 SMART Marketing Objective

60,000
Sample size

10%

Over the next 9 months, the Magnolia Coffee Company will

expand its online presence and reach a larger number of
90% customers by sharing User Generated Content which will result in
a 25% increase in leads. According to UCG stats in 2020, 90% of
Other UCG consumers stated that UCG is more influential on their
content Content purchasing decisions than email, or even results from search
If you want to modify this graph, click on it, follow the engine.
link, change the data and replace it
Another marketing objective for Magnolia Coffee Company is
attracting new customers, raise brand awareness by driving 100k
new unique visitors to the website this month.
 KPI

a b c
Metrics:
The KPI for Magnolia’s The second KPI that
Coffee marketing supports the marketing
objective to increase - Conversion rate of
objective is the number
traffic to the website and website visitors into
of social media followers leads
raise brand awareness
and social engagement - New website visitors
which in turn will
for May - August, as well - Returning website
generate more leads and
as conversion leads from attract new customers. visitors.
followers.
Customer Persona
 Interview

For the purpose of this interview, I questioned two people from different
backgrounds and interests, and have analysed them separately below:

1. Describe your personal demographics.

- Baniel, single male, aged 30, lives in California, USA, annual

household income - $100,000/year.

- Adia, single female, aged 21, lives in Texas, USA, annual household
income - $35,000/year.

2. Describe your educational background?

- Studied at Hague University, holds a BA in International

Management and Business.

- I am currently studying at Texas University of Economics and

Business, I am in my 3rd year of Bachelor in International
Management in Emerging Markets.
3. What is your job role?
- I work as a software engineer at an American company
called Radicle, and I've been working with them for the past
3 years.
- I work part-time as an English Interpreter for Language Line
Solutions, i provide assistance and professional translation
services to Healthcare facilities, Banks, Police etc. I’ve been
working here for almost a year.
4. What are your hobbies, and what do you like to do in your free
time?
- I like coding and building web pages. In my free time I
usually like to go for a run, or surf, or read a book.
- My hobbies are dancing and reading. If I get any free time
in between studying and working I like going to the dance
studio or curl up with a good book.
Interview
5. What are your biggest challenges
professionally/personally?
- I’d say at the moment my biggest
challenge professionally is starting my
own company. I'm working towards
building an online start- up and I struggle
to find angel investors and promote it
organically.
- My biggest challenge is finishing up my
thesis in time as it takes most of my time.
Besides working, I struggle to find
motivation sometimes. I like going to the
coffee shop to write. I feel I can
concentrate better there.
 Interview

6. What are your professional or personal goals, and what would you like
to achieve in the next year?

- My goal is to maintain a good working - life balance towards my

path in launching my website. My personal goal for the next year
is travel more, visit new places that I've never been to before.

- My goal is to finish my thesis before the deadline so I can have

enough to prepare for my defence.

7. What apps/websites/podcasts do you use/listen to?

- Oh I love Joe Rogan’s podcast, I listen to it a lot, my favourite apps

are slack, Reddit, oh and youtube of course.

- I like to watch interviews on youtube, regardless of the topic, i also

like watching documentaries on Netflix. I like Instagram and
Linkedin, and Vogue Business - these are where I stay up to date
with all the fashion news & trends.
 Empathy map: Baniel

Mars MERCURY VENUS

Despite being red, Mars is actually a Mercury is the smallest planet in our
cold place. It’s full of iron oxide dust Solar System

JUPITER SATURN NEPTUNE

Jupiter is a gas giant and the biggest Saturn is a gas giant, composed
planet in our Solar System mostly of hydrogen and helium
 Empathy Map: Adia

Mars MERCURY VENUS

Mercury is the smallest planet in our
Solar System

JUPITER SATURN NEPTUNE

Saturn is a gas giant, composed
mostly of hydrogen and helium
 Customer journey map

Mars MERCURY VENUS

Mercury is the smallest planet in our
Solar System

JUPITER SATURN NEPTUNE

Saturn is a gas giant, composed
mostly of hydrogen and helium
 Customer Journey

Mars MERCURY VENUS

Mercury is the smallest planet in our
Solar System

JUPITER SATURN NEPTUNE

Saturn is a gas giant, composed
mostly of hydrogen and helium

Customer’s Journey Map: Baniel
spends a lot of time on Linkedin, as
a young professional in the tech
industry he is very interested in
checking out new businesses and
startups, promoting Magnolia
Coffee on Linkedin through
partnering with other businesses
in the area will reach customers
such as Baniel. He also appreciates
a freshly brewed black coffee of
roasted beans. Once he becomes a
customer he will be a loyal one to a
good coffee shop.
Customer Journey map
Customer’s Journey Map: Adia is
a full-time student TUEB in Texas
and a part-time English Interpreter
at LLS, she has a very busy
schedule and is trying to manage
her time as efficiently as possible.
The best way to reach her is to
double-down on influencer
marketing, as she trusts social
media and Youtube videos from
influencers. Once she becomes a
customer, she will likely promote
your products and Coffee shop on
her social media account.
 Customer stages

II. III.
I. Reach Conversion Retention

Marketing Objective: Marketing Objective: Rank Marketing Objective:

Increase Brand higher in search results Increase Customer Value
awareness Marketing Goal: Optimising Marketing Goal: Earn
Marketing Goal: We need the content for search customer’s loyalty - run
to get Magnolia Coffee in engines, Targeting retargeting campaigns to
front of more people and business-related keywords, sell more
reach a wider target link building. products/services.
audience.
 I. Reach
Customer stages
We can achieve this goal by turning to social media, we know that our
target customers trust social media and influencers, what we can do is
share more content on Instagram and facebook:
- Posting about your company cultures
- Sharing information about our unique products, inviting local
influencers to promote the coffee shop ( we know our target
customers are impressed by aesthetic interiors)
- Doing a room tour of the coffee shop, to let the customers know
they can always come for a coffee and have a quiet place to study,
work, or read.
The point is to engage with your audience on social media and make your
brand seem approachable. Turn them into -> admirers and loyal
customers, in return they will share your content and their positive
association with their circle on social media.

II. Conversion
A digital marketing strategy with a focus on Search Engine Optimization
(SEO) will increase Magnolia’s visibility in search engine rankings. In order
to achieve it we need to focus on optimising the content for search
engines so the company’s website doesn’t end up on the second page of
Google's search. Additionally, we may target business-related keywords,
for example in our case we need to focus on #coffee, #roastedcoffee etc.
These tasks will ensure that Magnolia’s website is strong enough to
reach the ideal customers. We already know that our target audience
is in Conversion stage, and their communication channels are:
Linkedin, Reddit, Slack.
To keep the customer’s interest in our products, besides SEO
optimization we can share our articles and subscriptions plan on
Linkedin, partner with local businesses that will help share our
content to reach our target customers.

III. Retention
After we found new customers and focused on new customer
acquisition, it is time to move on and think long-term,
because it is very important to care about existing customers.
Magnolia company have been having a stagnation for the
past 2 years, what we can do to earn customer’s loyalty and
continue increasing their customer’s lifetime value, is:
- Educate them about Magnolia’s unique products,
services and valuable opportunities we can provide
them with.
- Run retargeting campaigns to sell more products or
services.
- Run campaigns where we let customers promote
Magnolia Coffee, and in turn offer them exclusive
promotions or other perks.
- Provide good quality customer service.
Customer stages
At this stage, our customers already know about our
brand and products we offer, our goal is to increase
their value and loyalty. The communication channels
for these types of customers are social media
channels, such as Instagram, Youtube. According to
2020 statistics in customer behaviour, most of the
customers are inclined to trust other people’s
opinion on social media channels, reviews and
pictures of the place and products increase the
likeability for these customers to return and
continue using the products and services.

Magnolia’s Coffee Customer Journey, having new
customers and retaining old ones, they assume
these prospects know where to find them, the
company’s presence online and offline stayed the
same. But we don’t want a customer's journey to
end at conversion or retention stage. Our point
of friction can occur on Magnolia’s offline
locations, during rush hours when the coffee
shop becomes too crowded and customers that
came to work or study get frustrated. We can
implement a drive-through option, or a
take-aways at the front desk outside the shop, at
a window panel. Other suggestions for
improvement:
Customer Stages
- Create quality and educational content that
answers searchers’ questions. Company’s
reputation will increase and customers will
think of Magnolia as a trustworthy source.
- Employ social “proof” and display positive
testimonials from satisfied clients for the
world to see. It proves that the business
creates happy customers.
- Keep the focus on SEO optimization on all
company’s online content so that the
website and all shared content can rank the
highest in the searches.
 Marketing Plan

Magnolia Coffee Company is a coffee business located in

more than 200 retail locations across southeast of U.S.
Located outside major metropolitan areas, they are situated
near heavily populated office buildings,high traffic retail
shopping and eating establishment, next to gym and fitness
studios. Magnolia Coffee Company os known for its local
hometown flavour, a selection of freshly roasted beans that
can be purchased both online and in the physical shops, a
range of specialty coffees for take aways and in store,
monthly or annual subscriptions for coffees on their website.
Using a marketing mix of video marketing, influencer
marketing, local online advertisement, UCG, and SEO the
company will primarily target office workers, freelancers,
students, gym members as well as staff workers.
 Value proposition

FOR freelancer, office workers, students, gym members, busy parents, staff workers

WHO need a break from their hectic lifestyle, or a quiet place to work or study

OUR highly skilled baristas will serve you the best coffee coffee

THAT made out of exclusive roasted beans

UNLIKE Peet’s Coffee shop

OUR OFFER convenient locations and take-away specialty coffee renown for local hometown flavour
 Marketing Strategy & Value proposition

Magnolia Coffee Company provides convenient, fresh coffee on the go and

spacious quiet areas to enjoy coffee while studying or working.
They will use youtube for video marketing by sharing recipe videos or a
behind-the-scenes look at the coffee bean selection process that will have a
real impact in driving new customers.
They will be networking and partnering with local businesses on Linkedin
that will help raise brand awareness, especially when many of those are the
target market.

They will offer a free first coffee as a welcome to new customers or a free
subscription trial for online users.
This actually hits many touch points in the customer journey because it
raises general awareness, attracts new customers, and encourages those
that are already aware to come in and make a purchase or just visit the
store to have a feeling of the place and possibility to see the variety of
products and services.
THANKS
Author: Veronica Nigaes

nigaes.veronica@gmail.com

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