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Revised MP Chapter+2
Revised MP Chapter+2
MARKETING PLAN
This chapter consists of the marketing plans and strategies that the entrepreneurs have in
mind to engage customers and achieve its target markets. This outlines of the business
marketing plan: products and services that will offered in the business, market research, demand
and supply analysis, target market, projected sales, marketing programs or strategies, and the
marketing or selling expenses
The methods used for conducting market research on coffee shops around General Santos
City include quantitative approaches. Surveys will be conducted to gather data on consumer
preferences, buying behavior, and satisfaction levels. In the surveys that the company gave to a
minimum number of 22 respondents, 86.4% of the respondents get their income from their
parents, 9.1% has a full time job, and 4.5% is self-employed.
81.8% belong to the age group of 19-24 years old, 9.1% are 30+ years old, 4.5% are 13-
18 years old, and the other 4.5% are 24-29 years old.
45.5% of the respondents preferred to go to a coffee shop in the evening, 31.8% preferred
to go in the afternoon, 18.2% preferred morning, and 4.5% preferred midnight.
When asked how often does the respondents feel comfortable and at ease every day,
36.4% answered sometimes, 31.8% answered often, 27.3% answered always, and 4.5% answered
rarely.
When asked how often do the respondents find the ambiance of a coffee shop conducive
to relaxation and mental well-being, 40.9% answered always, 31.8% answered sometimes, and
27.3% answered often.
When asked how often do the respondents experience stress relief or a positive mental
impact after visiting a coffee shop, 36.4% answered always, 36.4% answered often, and 27.3%
answered sometimes.
When asked how often do the respondents feel socially supported and connected with
others, 40.9% answered always, 31.8% answered sometimes, 27.3% answered often.
68.2% of the respondents agrees that a coffee shop helps alleviate anxiety and stress and
31.8% disagrees.
Finally the survey showed that 45.5% of the respondents are willing to spend P120+ for a
coffee, 22.7% are willing to spend P41-P80, 18.2% are willing to spend P41-P120, and 13.6%
are willing to spend 0-P40.
The revenue generated at home (including supermarkets and convenience stores) in the
Philippine coffee market is projected to reach ₱139,031,262.50 by 2024. This revenue is
expected to grow annually at a CAGR of 6.81% from 2024 to 2028. Data show that a millennial
Filipino will pay P100 for a cup of coffee as long as it is high quality and the brew is good. The
competitive landscape is characterized by both local independent coffee shops and established
chain brands, each offering unique value propositions to the market. In the Philippines, Starbucks
is still the most well-known chain of coffee shops, followed by Coffee Bean and Tea Leaf.
(MacDonnell, 2022). The rising popularity of specialty and brewed coffee is a reflection of
consumer demand for exceptional, high-quality coffee experiences. Customers are experimenting
with different flavor profiles and brewing techniques, such as cold brew, AeroPress, and capsule
coffee.
By interpreting the data, it reveals several opportunities and potential challenges within
the market. Opportunities include a growing consumer base with a taste for specialty coffee,
potential for expansion into underserved areas, and the ability to differentiate through unique
offerings and experiences. Potential customers include teenagers and their in demand of a safe
space for relaxation. However, potential challenges may include intensifying competition such as
the well-known brands. Embracing trends such as sustainability, digitalization, and community
engagement can position coffee shops to capitalize on market opportunities while effectively
addressing potential challenges
In identifying and analyzing the consumer trends in the coffee market, trends such as the
popularity of specialty coffees, organic options, or ethically sourced products are the main focus
of customers in today’s generation. In the purchasing power of the target market, these factors
are considered the economic conditions, consumer disposable income, and price elasticity of
demand for coffee products especially for students
The coffee production capacity, includes potential limitations and opportunities for
sourcing high-quality coffee beans/mix from various regions such as in Polomolok. Distribution
channels and supplier relationships are formed before starting the business to identify potential
risks and opportunities in the supply chain.
The interaction between demand and supply plays a crucial role in shaping pricing
strategies, inventory management practices, and overall business strategy for the company,
particularly the coffee shop. When demand exceeds supply, prices tend to rise, and the business
will implement pricing strategies to capitalize on this situation. Conversely, when supply
surpasses demand, the company will lower prices to stimulate consumer interest and prevent
excess inventory. Moreover, the business will integrate these demand-supply dynamics into our
overall strategic decision-making, from product development to market expansion.
This business can adopt several strategies to manage fluctuations in demand and supply.
Flexible inventory management practices, such as "just-in-time" inventory, can help align stock
levels with customer demand, reducing the risk of excess inventory. Collaborating with multiple
suppliers and establishing robust relationships can provide resilience during supply chain
disruptions. Adapting the product mix to changing consumer preferences, perhaps by introducing
seasonal offerings or innovative blends, allows the coffee shop to address evolving demand
patterns effectively.
To mitigate the impact of sudden shifts in demand or supply, the coffee shop will develop
contingency plans. For example, alternative sourcing options for coffee beans/mix from diverse
geographical regions can mitigate the risk associated with supply chain disruptions. Diversifying
the product offerings to include non-coffee items, such as snacks, pastries, or merchandise,
provides a cushion against fluctuations in coffee demand. - Discuss contingency plans for
mitigating the impact of sudden shifts in demand or supply, such as alternative sourcing options
or diversification of product offerings.
For Digital marking initiatives, development of social media platforms such as Facebook,
Instagram, and Twitter are a priority since these platforms spread information fast in the
Philippines. Regular postings of images, videos, and other relevant content should be included on
these platforms to engage customers. To market the services, the company would need a website,
the development of interesting and informative blog posts or articles about the coffee shop, the
products, and the story behind it should increase sales. Online Advertising through paid ads in
Facebook will also be implemented to spread the word of the new coffee shop
Breakdown of Expenses
Leveraging low-cost or free marketing channels is a good management strategy and will be
used in my business such as social media, customer referrals, and community engagement to
supplement paid advertising efforts and maximize the reach and impact of the marketing budget.
Negotiating favorable terms with suppliers and partners to obtain cost-effective promotional
materials and collaborative marketing opportunities, stretches the budget further while
maintaining visibility and impact. Finally, regularly reviewing and refining marketing strategies
based on customer feedback, market dynamics, and sales performance to ensure the budget is
directed towards the most impactful and revenue-generating activities, ultimately maximizing
ROI.
References:
GrowThink. “Coffee Shop Business Plan Marketing Plan.” Growthink, 21 July 2021,
www.growthink.com/businessplan/help-center/coffee-shop-business-plan/marketing-plan.
MacDonnell, K. (2022, March 28). Coffee Shops in the Philippines: 12 Statistics to Know in 2022. Coffee
Affection. https://coffeeaffection.com/coffee-shops-in-the-philippines-statistics/
The Hartford. (2023). The Basics of Market Research & Your Business | The Hartford.
Www.thehartford.com. https://www.thehartford.com/business-insurance/strategy/market-research/
business-market-research
R, David. “How to Create a Coffee Shop Marketing Plan: Step by Step.” Fullcoffeeroast.com, 2020,
fullcoffeeroast.com/coffee-shop-marketing-plan/.