Marketing Planning and Management
Cold Brew Marketing Plan
Student Names: Anastacia Clarke, Bernie Ng, Kaysee Felgate, Kirsty Chapman, Stephan
Wang
Assignment Information
Student Names and Numbers: Anastacia Clarke N9112561, Kaysee-Jane Felgate
Faulkner N8592373, Kirsty Chapman N8794626, Sio wa Ng N9428763, Zixin Wang
N9274481
Tutor: Sandy Sergeant
Tute Time: Wednesday 9.30am
Word Count:
Table of Contents
1.0 Executive Summary ....................................................................................................................... 3
2.0 Situation Analysis ........................................................................................................................... 4
2.1 The Market 43 ......................................................................................................................................................... 4
2.1.1 Market Need 61 ................................................................................................................................................................ 4
2.1.2 Macro-environment ........................................................................................................................................................ 4
2.2 The Company ........................................................................................................................................................... 6
2.2.1 Mission statement 30 ..................................................................................................................................................... 6
2.2.2 Marketing Team 20 ......................................................................................................................................................... 6
2.2.3 SWOT Analysis .................................................................................................................................................................. 6
2.3 The Competition 126 ............................................................................................................................................ 8
3.0.Market Segmentation And, Targeting .................................................................................. 10
3.1 Segmentation...................................................................................................................................................... 10
3.2 Target market 130 ........................................................................................................................................................... 10
4.0 Market size, demand and potential 28................................................................................. 11
4.1 Estimated market demand .............................................................................................................................. 11
5.0 Marketing Objectives and Metrics 17 ................................................................................... 12
6.0 Marketing Mix ............................................................................................................................... 13
6.1 Product strategies 87 ........................................................................................................................................ 13
6.1.3 Packaging: 40 .................................................................................................................................................... 14
6.1.4 Labeling. 42 ..................................................................................................................................................................... 14
6.2 Pricing strategies ................................................................................................................................................ 15
6.2.1 Pricing factors and sensitivity 184 ........................................................................................................................ 15
6.2.2Pricing strategy 80 ....................................................................................................................................................... 15
6.2.3 Cold Brew Prices 80..................................................................................................................................................... 15
6.2.4 Break-even ........................................................................................................................................................................ 16
6.3 Placement strategies 109 ................................................................................................................................ 17
6.4 Promotional strategies ..................................................................................................................................... 18
6.4.1 Social Media Presence 86 .......................................................................................................................................... 18
6.4.2 Facebook &Instagram Applications 78................................................................................................................ 20
6.4.3 Snap Chat 71 ................................................................................................................................................................... 20
6.4.4 Market Day Promotion Strategies 20 ................................................................................................................... 20
7.0 Budget .............................................................................................................................................. 21
8.0 Implementation Plan.................................................................................................................. 22
APPENDIX C: MARKET VISIT ........................................................................................................... 27
Cold Brew – To get you Through
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1.0 Executive Summary
Cold Brew is bringing a whole new dimension to coffee culture in Brisbane. We will be selling
premium cold brewed coffee that illuminates the shortcomings of traditional iced coffee. Steeped over
a long period of time, this smooth, strong and flavoursome beverage delivers. With beans sourced from
Sponsors and local Brisbane roasters, Merlo, only the freshest quality can be expected from this
product. The strategy for developing and launching this product is comprised of four essential
components, product attributes, branding and position, packaging and labelling.
Using a segmentations analysis, the firm has identified the major market segments, including Big
Chance, trending and small chance. In accordance with the expected numbers of people in each group, the
target market for our product is the young optimist, which is about 148 out of 267. Aware of this young
dominating demographic, prices for market day are set at a base rate of Q$40. This will ensure a profit of 23.42
per unit sold. To optimise success, competitor’s prices were also taken into consideration, however, were not the
key deciding factor. This is because Cold Brew has the competitive advantage of first movers effect in the
market place. Implementing the blue ocean strategy, we are launching a product in uncontested market space,
essentially making competitors prices, positioning and products irrelevant. Additionally, price bundling was
incorporated to gain market share while still maintaining premium positioning.
Despite having no direct competitors, Cold Brew researched each environmental level (Macro - Pestel, Indsutry
–Benchmarking and Organisational – SWOT) to develop a strong marketing plan. In relation to the organisation
environment a situation analysis was undertaken in order to identify current macro environmental trends and
issues. The PEST analysis revealed that the young optimism market have busy lives and require ample energy
for daily activates. It was assumed Cold Brew would be positively received within this demographic. The
strength, weakness, opportunities and threats to Cold Brew were then developed surrounding this knowledge.
Located in stall 49 (central to various entry and exits) on the day promotions stemmed from attracting large sums
of foot traffic. Strong caffeine aromas, heavily branded barricades and Merlo branded umbrellas will appeal to
consumer’s sensor and will influence purchasing decisions. Even though the Merlo brand is familiar and will
attract attention on the day, Cold Brew is aware those wont help the sale of individual products unless the
consumers are previous made aware. Therefore, Cold Brew has engaged innovative promotional tactics
through social media avenues, Facebook, Instagram and Snapchat to generate brand an product
awareness prior to the day. We are confident that each element of the marketing mix is strategically
satisfied and Cold Brew will be a success and well received product.
Cold Brew – To get you Through
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2.0 Situation Analysis
Cold Brew undertook a situation analysis to select the best target market. This includes an analysis of
the different macro-economic trends and issues to identify current consumer trends and behaviours.
2.1 The Market 43
Cold Brew is available on Market Day, September 25th and October 10th in Brisbane CBD. The
market days are within QUTopia with a population of 276 citizens (161 female and 105 males). The
mean QUTopianage is 21 and mean income is $262.12.
2.1.1 Market Need 61
Cafes at QUT will not be operating on the two market days; therefore QUTopians will be channelled
toward our caffeine product. A large portion of QUTopians(148) identified themselves as ‘Young
Optimism” against Ray Morgans Segment indicating they are “busy planning careers, attending
university …and need the energy to do it.” (Levine, 1997). Therefore, there is a need for Cold Brew’s
product.
2.1.2 Macro-environment
A PEST analysis analysing current macro-economic trends / issues occurred.
Environment
Trends/issues
Implications for our
product
Political/Legal
Health and Safety: Cold Brew
will Abide by all regulations of
the Food Act 2006 and Food
Regulations 2006.
QUTopia Laws and Rules
Cold Brew will take extreme
measures
to
ensure
the
beverages our company sells are
“safe and suitable for human
consumption, and to prevent
misleading conduct in relation to
the sale of food.”[1] Food Act
2006.
Cold Brew is adamant in
following
all
rules
and
regulations set out by QUTopia.
All managers have closely read
through all QUTopia documents
and have a clear understanding.
Ensuring no rules are broken
means no fines will be applied,
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therefore more money
Economic
Low economy
Competitive pricing in the
coffee market
Socio-cultural
Healthy Eating
Coffee Tastes and Preferences
Citizens have less disposable
income
than
outside
of
QUTopia. Therefore, prices for
our products must be slightly
lower.
Coffee is a huge business with
nearly half the population of
Australia (46%) drinking coffee
according to the Australian
Health Survey. [2]therefore; the
coffee industry is incredibly
competitive. Therefore, Cold
Brew’s Pricing Manager has
carefully analysed the market
and figured the best price
possible.
Health is incredibly important to
many Australians. The use of
Soy Milk/Almond Milk and low
Fat Milk is becoming more and
more popular. Health conscious
people will not go near fullcream
milk
anymore.
Implications may arise Cold
Brew is not offering any of those
options.
Australians tend to prefer coffee
with a more bitter taste and
organic rather than sweet and
sugary. Australia may lag behind
in “coffee consumption per
capita (the average Aussie
manages just 0.3 cups a day,
compared to the Netherlands’
2.4) but it comes out top in allround coffee snobbery.”[3]
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Starbucks failed in Australia
because the Australians prefer a
“good coffee” from independent
roasters. This is a benefit for
Cold Brew as many consumers
view Merlo as ‘good coffee.’
Technology
Use of Smart Phones
There is an increasing need for
people to have the best and
newest smart phone. This is
because people love to stay in
touch with social media. There
are numerous platforms people
like to connect on and Cold
Brew is using all the mediums to
the full advantage.
Table 1: PEST Analysis
2.2 The Company
2.2.1 Mission statement 30
Cold Brew aims to produce premium ice-coffee, freshly made and provided with convenience. This
product accentuates quality-tasting coffee and influences positive psyche as it bring another dimension
to caffeine.
2.2.2 Marketing Team 20
The team consists of a Marketing Manager, a Product Manager, a Pricing Manager, a Distribution
Manager and a Promotion Manager.
2.2.3 SWOT Analysis
Strengths
Weaknesses
·Knowledge: Excellent team members with strong knowledge
·Traditional idea: Many brands already offer
from various industries including the food industry
cold-brew drinks
·Location: High level of foot traffic for our stall
·Unhealthy: Many consumers view coffee as
unhealthy drink and may be persuaded
·Merlo Sponsor: Merlo is a highly reputable brand. It has been
Cold Brew – To get you Through
6
to choose a juice stall instead. Redbull is
voted Australia favourite coffee brand from 2012-2014.[1]
also associated as being unhealthy.
Customers will be drawn to our stall
·Indecisive: People can be indecisive on the
·Environment Friendly: Power is not necessary for the day and
day with too many choices
everything is recyclable
·Quality: Product has gone through extensive testing to ensure
the best taste
·Price: Prices will be appealing for customers
·Accessible Location: Easy and low costs associated with moving
product from kitchen to stall
·Communication: Marketing Manager has created a low-cost tool
to engage with consumers via various online social media
channels (Instagram, Facebook, Twiter).
·Healthier: Our drink will typically be healthier than other coffee
products.
·Brand Loyalty: Customers who purchase on the first day market
day will be rewarded with a discounted price if they return on
the second market day
Opportunities
Threats
·Customer Need: Customers are willing to spend money on food
and drinks when they are thirsty or hungry
·Competitive Market: E ntering a market
with many competitors
·Large Market place: Our product appeals to a huge market of
busy students or staff members who wanting to stay awake
·Competition: Competing with numerous
other companies in the same industry
to complete/mark University work.
·Vendi-Machines: vendi-machines on
·Unknown Customer Base (Tourists): Any tourists travelling
campus that sell Redbull
through on either market days will be drawn to us because
we will have a Merlo tent. Merlo is a brand that people feel
·Weather: Weather has potential to impact
high volume numbers as It tends to be
safe with choosing.
much colder If it rains, thus customers
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will not want a cold drink but rather a
·Appealing Product: Coffee is a product people are willing to
hot drink
spend money on
·Weather Change: Brisbane’s weather starts to get warm towards
the end of September, therefore consumers will be drawn to
a cold coffee
Table 2: SWOT Analysis
2.3 The Competition
Cold Brew is a part of the Other Specialled Food Retailing offering freshly brewed cold coffee. There
are no direct competitors in QUTopia, however, six indirect competitors selling alternative beverages.
Table 3 identifies the top 3 competitors and undertakes a competitor analysis.
The competitor analysis demonstrates ‘Squeeze’ is Cold Brew’s strongest competitor as they offer a
high-quality juice and have implemented marketing. Their location isn’t ideal, giving Cold Brew an
advantage. ‘Coco Cortez’ also acquired ideal location for foot traffic. ‘Frozen’ who are selling tea have
undertaken no marketing, with poor location and could go unnoticed.
All indirect competitors are positioning themselves as providers of quality products therefore indicting
a higher cost associated. Cold Brew will counter this attack by offering premium product with
competitive pricing.
Competitor 1: Coco Cortez
Competitor 2: Frozen Summer
Competitor 3: Squeeze
Target
market(s)
QUTopians who fall into the ‘young
optimism’ category who are busy
and will pick the first drink they see
to keep moving.
QUTopians who prefer something
light rather than chocolate, juices,
smoothies or coffee to drink.
Targeting any segment of people
who have diary intolerances.
Young QUTopians who fall into
‘young optimism’ or ‘look at me’
Ray Morgan segments for
example young student who
healthy conscious people who
love fruit and staying fit
Product
Chocolate drinks and chocolate
goods
Fresh Ice Tea Drinks
Fruit Juices
Selling as a ‘high quality’ product
indicates a higher price between
$80-$90.
Selling as fresh drinks with high
quality services indicating a relatively
high price between $ 70-85.
Squeeze is sponsored, assuming
most of their fruit will be free or
cheaper, their product will be
slightly cheaper between $50-80.
Stall 2, QUTopia
Stall 46, QUTopia
Stall 54, QUTopia
Price
Place
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Facebook page
No promotions as of yet.
Facebook page, Second
advertisement on QUTopia
Official Facebook page, Instagram
account
Potential
competitive
barriers
Coco Cortez is placed in a premium
position meaning consumers will
be drawn to their first, and
potentially buy their product and
be not interested.
Consumers with dairy intolerances
will buy from Frozen Summer rather
than us.
Sponsored by Charlies Fruit
Market – any client base Charlies
Fruit has will potentially choose
Squeeze,
Potential
strengths and
weaknesses
Strengths: Consumers who prefer
cold chocolate drinks rather than
cold coffee. Consumers who tend
to buy on impulse rather than look
around will purchase from Coco
Cortez as they are in a premium
position.
Weaknesses: Consumers who do
not like chocolate and coffee will
not buy from Coco Cortez and
consumer looking for more of a
pick me up. Coco Cortez has not
started advertising yet, therefore
we currently have a competitive
advantage.
Strengths: Consumers who stick
away from dairy products and/or
coffee. Majority of entry point will
lead to consumers seeing Frozen
Summer before us.
Strengths: Attracts a strong
market of people with dairy
intolerances and wanting to stay
healthy. Have started heavily
marketing their product.
Sponsored by reputable brand.
Weaknesses: So far no
Weaknesses: Position in a bad
advertisements strategies are
location with only one side of
apparent. They will have no client
entry
Promotion
Our likely
respons
e(s)
Create more attention to our
Facebook and Instagram pages.
Display Merlo effectively so
consumers are drawn to us
base and will have no brand
awareness on the day.
Continue to heavily market through
Continue heavily marketing
uploading photos on Facebook and
hopefully reaching more
instagram.
customers than them. Also use
our double sided store to the
full advantage.
Table 3: Competitors
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3.0.Market Segmentation And, Targeting
3.1 Segmentation
Cold Brew analysed three segments in order to identify the target market.
Big Chance
Trending
Small Chance
Geographic
description (all
consumers come from
QUT, which is based
in and around
Brisbane.)
These people are
expected to live in
apartments and houses in
and around the inner city
with many friends.
These people are expected to live
just outside the inner city in
houses with one or two friends.
These people are expected to live
in apartments in the inner city with
many friends.
Demographic
description
Young single university
student.
Age from 18-29.
Occupied 44% of all
students. The average
income is 263 QUTopia
dollars, which is the
highest income in all
brackets.
Most of them are single student
and age from 17-40. Occupied
10% of all the students. The
average income for these students
is 261 dollars.
Young single student. Age from
18-25. Only 5% of all students is
in this bracket.
Psychographic
description
Young Optimism
Something Better
Look At Me
Young Optimism wants
to try everything. They
are willing to spend a lot
of money on new stuff.
Usually somebody who
has just entered their life
and they are wish to
impress.
This group of people is beginning
to mature. While they love the
finner things in life, they are also
trying to save money. As a
consequence they tend to be
concerned about what other
people are doing.
This pattern of people is more
often found among teenagers,
trying to ‘stand out’, seeking
recognition by the family for being
‘grown up’ can occur at any time
in a person’s life.
Saving is not their concern as they
have their whole lives ahead of
them.
Behavioural
description
Table 4: Segmentation
3.2 Target market 130
From the segmentation analysis, the young optimism will be the target market. This consists of
approximately 44% of total market. Both male and female are in this bracket (aged: 19 to 29) and
indicate to be young, energetic and enjoy new products. It can be seen that this market has a large size
of people, influencing profitability. Without direct competition our business obtained a monopolistic
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position. Moreover, our product can be accessible through persuasive communication and product
distribution.
According to Martin (2001), businesses can develop some special strategies if they’ve identified needs
and wants of customers. As café shops on campus will be closed at market day, our product can expect
a large size of market share. Its expected most of customers will react similar and positive to our
product.
4.0 Market size, demand and potential 28
The total market will consist of all the customers in that market day including, tutors, tourists, students
etc. It’s expected over 267 people with tourists numbers not confirmed.
4.1 Estimated market demand
Figures
Key Factors
Market Potential
267
Target Market Size:
148
Usage/Purchase frequency:
Consumers are likely to
purchase 2 products during the
two market days.
Estimated market share
30%
Sales forecast-(b) x (c) x (d)
148 x 2 x .30 = 88.8
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5.0 Marketing Objectives and Metrics 17
Four marketing objectives are analysed through the SMART objectives procedure. This will help Cold
Brew maximise potential.
SMART Objectives
Metric
How the data will be collected
Metrics: How it will be measured
1) Build initial hype
within QUTOPIA
Market with Social
Media Presence.
Upload at least 17 of
the 20 expected
posts.
Exposure to
Market
Cold Brew Social Media pages on the
16th of September (1.5 Weeks Prior
to Market Day 1) will be commence
Daily Posts up until Market day 1. On
the 30th of September (1.5 Weeks
prior to Market day 2) Cold Brew will
once again commence daily posts up
until Market day 2 – Results will
collected after Market Day 2.
-To ensure hype is created during
10 days prior to each Market Day.
During these 20 days, cold brew
will be required to post/upload
from either Facebook or Instagrm
daily.
2) Achieve the break
even point after
Market day 1
Break Even
Point
Cold Brew should break even by the
end of business of Market day 1 (26th
of September)
Selling at $40 (base price), 48
units need to be sold to cover the
$1900 fixed costs ($1300 wages,
$350 stall rent, and $250 email
communication for promotion)
The total cost of revenue and
expenses will be considered – If
revenue exceeds expenses, Cold
brew will have successful broken
even on Market Day 1.
3) Achieve 10%
Profitability
Net Profit
Margin
Cold brew should achieve at least
10% profitability after Market day 2
Net Profit = Net income/revenue
4) Achieve 20%
Loyalty
Customer
Loyalty
Cold Brew Crew cards will be handed
out with each Cold Brew Purchase.
These cards will allow loyal
consumers to have a 10% Discount
on Market day 2 if they return with
the said card.
- # of Cold Brew Coffee sold = # of
Loyalty Cards Handed out.
- # of Cold brew Loyalty Cards
handed out divided by the Cards
Redeemed on MD2 for the 10%
Discount
- E.g. 10 Handed out/ 20
Redeemed on MD2 = 50% Loyalty
Table 5.0 SMART Objectives
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6.0 Marketing Mix
6.1 Product strategies 87
Cold Brews product strategy focuses on creation of value for the consumer. The core product is a
caffeinated beverage for energy stimulation; however, Cold Brew exceeds this basic service function
(Grewal, Levy, Mathews, Harrigan&Bucic 2015, p. 240). Major issue associated with Iced Coffee have
been identified and resolved, including bitter taste, quality consistency and watery caffeine. The
product strategy is comprised of four components, product attributes, branding and positioning,
packaging and labelling. Note, a licence for this stall is not required for grinding coffee beans refer to
Appendix A.
6.1.1 Product attributes:
Our product meets core consumer demands with various superior product levels. Cold Brew’s steeps
cold ground coffee over time, which infuses the water with caffeine. The coffee has been sourced from
Brisbane’s local roaster, Merlo to ensure the freshest quality beans. Standard ratio measurements
ensure consistency in taste, flavour and strength. A sweeter option available (caramel flavouring.) As a
firm we have given a convenience product a specialty edge. Table 6 reveals the supplies and source:
Ingredient/Supplies
Sources/Suppliers
3 Bean Arab Coffee Blend, Merlo
Donated by Merlo Coffee
Umbrella, Syrup Flavouring
Full Cream, Skinny, Lactose Free, Soy
Purchased from Woolworths
Milk
Cups/Straws
Purchased from Campbells
Table 6.0: Ingredients and Supplies
Milk options ensure superior service and cater to individual needs. In addition to receiving premium
Cold Brew, consumers will also receive a 20% VIP card from our Sponsors Charlotte Café.
6.1.2 Branding and Positioning. 74
Merlo’s brand provides leverage to get Cold Brew recognised on the market
day. Our Branding strategy is to use the Merlo in cooperation of our new
product Cold Brew. However even if the overall brand name is familiar it
wont help the sale of individual products unless the consumers are aware of
products available (Grewel et. Al. 2015). Our brand logo positions our target
market to directly associate us with strong, superior, flavoursome beverages. The various product levels
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in Diagram 2 communicate our overall value proposition and differentiate the product from
competitors. (Diagram 1).
Diagram 1: Product
Levels 93
The aggregation of these associations forms the foundation of this brand image (Grewal et al. 2015. p.
250) Evoking brand loyalty, VIP treatment and prize opportunities are offered to returning consumers.
Our competitive advantage is innovating standard ice coffee to a premium level. As this adaptation is
time-consuming, Cold Brew has secured advantage the ‘First Move’ in the QUTOPIA marketplace. A
blue ocean strategy is evident as this is an uncontested market space that makes competitors irrelevant
and generates new consumers value. (Crawford, C M. & Di Benedetto, A, C. 2015. p 432)
6.1.3 Packaging: 40
Packaged plastic take away cup, with lid and straw. Strategically, heavily branded the T/A cups work
as a promotional tool. The logo will be exposed throughout the marketplace and other stalls. Labels
around cup with provide loyalty and VIP cards.
6.1.4 Labeling. 42
Cold Brew Label is a sticker on the T/A cups. Consumers will also receive a charlotte café card with a
map of the cafes location. This will give the 20% off purchases. Ingredients will be feature on the
bottom of the cup.
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6.2 Pricing strategies
6.2.1 Pricing factors and sensitivity 184
As discussed in Section 2.3, Cold Brew has no direct competitors. However, indirect competition arises
from three other businesses. In order to counter this, competitor-oriented pricing will be employed.
Although is unknown what Cold Brew’s competitors will set their prices, an approximation can be
gauged from released positioning statements.
Each of the major indirect competitors (SQUEEZE, Coco Cortez, and Frozen Summer) has indicated
high quality within their positioning. Their prices will therefore reflect this and it can be assumed more
costly. Cold Brews position as a more premium product within the competitive market may pose a
problem. However, Cold Brew’s first mover, blue ocean strategy will aid in strong market share.
In pricing the product, budget and expenditure have great influence. Expected target market share and
sales forecasting allowed the breakeven point to be calculated and price adjusted accordingly. This is
detailed in Section 6.2.4.
Previous research into food and drink consumption within the QUTopia marketplace has shown that it
is purchased to satisfy the need. Due to this type of demand, Cold Brew’s product is elastic good,
meaning consumers respond to the price.
6.2.2Pricing strategy 80
Due to competition, either a competitive parity or status quo pricing strategy was deemed suitable. To
maintain premium status competitive parity is appropriate. Competitive parity is the strategic decision
of setting product prices similar to those of competitors (Grewal et al., 2015). This differs from status
quo pricing, as price is not adjusted according to every fluctuation in competitor's price (Grewal et al.,
2015). The use of competitive parity will maintain the positioning and perceived value of Cold Brew’s
product.
6.2.3 Cold Brew Prices 80
To set price, optional additions to the product must be taken into consideration. Price bundling will be
utilized to “encourage customers to stock up so they won’t purchase competing brands” (Grewal et al.,
2015). Market Day prices are presented in Table 7.
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Price
Base
With Milk
With Syrup
With Milk and Syrup
$40
$45
$45
$50
Pricing Bundling (2
units, any
combination)
$80
Table 7: Pricing of Products
Evidently, a discount for buying the products with both milk and syrup added only included within the
bundle. This is to maintain premium status. The average product price is $45, with sales forecast to
reach 89 units, a profit of $23.42 per unit is expected.
6.2.4 Break-even
Diagram 2 reveals Cold Brew needs to sell 42 units over both Market Days in order to break even.
Saleds projections of 89 units sold indicate that Cold Brew will break even.
Diagram 2: Break Even (Source: https://www.dinkytown.net/java/BreakEven.html)
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6.3 Placement strategies 109
Distribution is essential to drive products to the customer as the right time (Grewalet. Et. Al. 2015).
There is potential that indirect beverage competition could intercept traffic. Cold Brew’s location (stall
49) is ideal at the centre of most access points (Diagram 3: QUTopia Map). However, there are many
indirect competitors surrounding. As perceived at an alternative market place, consumers were drawn
to food and drink stalls based on “aroma and attractive pictures” (Appendix 2).
Diagram 3: Qutopia Map
Consequently coffee aroma and heavy branding will be implemented. As a multi-access location the
augmented product layer, to supply strong customer service is implemented. Table 8 reveal Cold Brews
distribution features.
Table 8: Distribution Feature.
FEATURES
Location
COMMENTS
Base
Cold Brew is Located at Stall 49 within the market
$40
place. With 5 access points in close proximity.
Lighting
Small torches hanging from the Umbrella will
attract attention and provide appropriate lighting for
Managers to monitor quality control over their
ratios of coffee to milk.
Potential neighbours
Just 5moothies is located at stall 51 and is
considered an indirect competitor of Cold Brew as
both organisations are selling beverages. However,
as their site is unpowered we aren’t concerned
about disruption with blender noises. Additionally,
we have compensated for close proximity
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competitors (46, 51 and 54) with additional and
different signage.
Traffic Flow
Traffic flow will be extensive in this area as the
stalls can be access from both sides. This means
that mangers will need to be serving both front and
back customers. Additionally, there are large access
points to the building located four stalls away.
Floor coverings
The floor is covered with carpet so the acoustics of
the marketplace will be more thoroughly absorbed.
Access to a wall
Cold Brew has no access to a wall so signage has
had to be all stand-alone.
Posts
There a no post located near Cold Brews Stall.
Sound
As the building is large sound will echo throughout.
The carpeted floor should help with acoustics but
the Merlo umbrella will also shelter the store when
directly communicating with Customers.
Impediments
The 1.5m2 size of the stall is going to be the biggest
impediment. We will have to develop appropriate
storage for ice, coolers, cups, lids, milk and coffee.
Table 6.0: Direct Marketing Channel
6.4 Promotional strategies
6.4.1 Social Media Presence 86
Social media will be the primary platform for communication with target consumers. Not having a
social-media presence in today’s market isn’t optional if you want to appear professional and compete
in your industry (Folger, 2015). Facebook, Instagrm and Snapchat are recognized as the trending
channels of Social Media (Moreau, 2015) and are employed to promote the product Early-presence can
assist the; awareness, interest and desire sections of the AIDA-Model. By achieving those, Cold Brew
can encourage the action-stage (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015).
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Key Message
Communications Mix
Element
Promotional Tactics
Cold Brew is
Competitive
Advertising and Social Media We will be increasing our social media
activity to a daily presence 10 days prior to
MD1 and MD2. This will allow the us to
gain awareness and the consumers can build
more interest and desire (AIDA Model)
Cold Brew is Up
Advertising, Social Media
Market (High Quality) and Direct Sales
Since Cold Brew coffee is considered to be a
speciality coffee, we are able to market our
product as an “Up Market” Product. The UpMarket position will be expressed through
our advertising and social media Channels,
this will be done with images/fliers that
imply a premium feel to the brand. The UpMarket message will also be backed up by
the expressing how our suppliers are
prestigious and that is what also makes our
brand prestigious. This is because we will be
sourcing our coffee beans from Merlo
Coffee – Consumers will understand that we
offer a prestigious and high quality coffee
through being told when they approach the
store.
Cold Brew Crew –
Forming a foundation
for cult brand. (ie,
The Cold Brew Crew,
will get you through)
A cult brand is where their main customer
base is known to be highly involved,
energetic and loyal – Or in other words,
fanatics or true believers in the brand itself,
these consumers tend to feel as that they
contributed to the brands succession or
popularity (Investopedia, 2015). Examples
of this can be RedBull or Starbucks, which
is mores suitable comparison for our
industry. We wish to create a cult brand feel
for our consumers and they will be known as
the ‘Cold Brew Crew’. This ‘Cold Brew
Crew’ foundation will be expressed through
all of our channels of promotion and more
notably our direct sales. We will be handing
out “Cold Brew Crew” cards to encourage
Loyalty as stated in section 1.0 of the
Interactive, Direct Sales,
Social Media and
Advertisement
Cold Brew – To get you Through
19
Marketing Metrics and Objectives. If we are
successful in creating a cult brand, the high
levels of loyalty and word of mouth will
encourage profits largely and the
performance of our MD2.
Table 7.0: Communication Mix Table
6.4.2 Facebook &Instagram Applications 78
Stated in section 1.0 of the Marketing Metrics, Social-Media will be used to reach out to our consumers
10 days prior to each MD. The aim is to build publicity, excitement and awareness towards our
product/brand. Advertising will encourage consumers entering the buying-cycle, which is important for
early stages of the product life cycle (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015). This type of
promotion will be done through uploads i.e.,‘Tips for Latte-Art’ and ‘ Coffee Fact-of-the-Day’.
6.4.3 Snap Chat 71
Snapchat is a photo/video messaging app to post video “stories” that are shared amongst users (Betters,
2015). To encourage active social media presence (Folger, 2015) Snapchat will be used to film the
process of producing Cold Press Coffee. This Channel of presence can encourage the interest desire
areas of the AIDA model (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015) since it will entice the
customers prior to MD1 and MD2
6.4.4 Market Day Promotion Strategies 20
Market Day promotion strategy is evident in table 8: Strategy and description.
Strategy
Social media
Description
 Facebook, Instagrm and Snapchat Links will be
presented on a sign
Brand Loyalty – Strategic Partnership

With each purchase, the consumer will be given a
Charlotte Café 20% off card as well as a “Cold Brew
Crew” Card on MD1.

The “Cold Brew Crew” Card will have two main
purposes,
to
encourage
loyalty
and
consumer
participation in promotions

Encourage Involvement and Arouse
Cold Brew – To get you Through

CBC Cards will also include instructions on how to win
20
the DIY Cold Brew Kit – Instructions: Upload a photo of
Excitement.
you and your coldbrew on MD1, caption the image
#coldbrewontherun and follow the Cold Brew Instagrm
page to be in the chance to win. The winner will be
announced prior to the commencement of MD2.
Repeat Purchases

CBC Cards will be handed out with each purchase. These
cards will explain that, if they are presented during MD2,
they will receive a 10% discount on their MD2 Cold
Brew.

Table 8: Strategy and Description
7.0 Budget
Cold Brew Budget
Start Up Capital ($Q)
Capital Retained ($Q)
Projected Unit Sales
Min Unit Price ($Q)
Max Unit Price ($Q)
Average Unit Price ($Q)
4000
2100
89
40
50
45
Cold Brew Anticipated Profit and Loss Statement
($AUD)
($Q)
Real
QUTopian
Currency
Currency
Total Sales
Cost of Production
Materials
Wages
Total Cost:
Gross Profit:
$4005
$35
$1300
$1335
$2670
Expenses:
Stall Purchase
Email Promotion
Total Expenses:
Net Profit:
$350
$250
$350
$2070
Anticipated Profitability of Organisation
Cold Brew – To get you Through
Total
21
51.68%
8.0 Implementation Plan
8.1 Pre-Market Day
Action
Team member responsible
Deadline
Commence daily
posts/uploads of Snapchat,
Facebook and Instagram 10
days prior to MD1
All Members
(Begin on the 16th of
September and Ends on the
26th)
Upload the Process of how
we got the Cold Brew
(Snapchat)
- Kirsty Chapman
26th of September
Team member responsible
Deadline
8.2 At Market Day 1
Action
Receive some feedback from - Bernie (SioWa) Ng
Customers (Do we need to
change the Cold Brew recipe
for better taste?) – Enquire
through at least 5
customers. Ensure a script
is prepared before the
deadline.
27th of September
Provide Samples - As we
wish to create as much
awareness as possible, we
will aim to have one
member give out some free
samples.
26th of September
- Any Member
8.3 Post-Market day 1/Pre-Market Day 2
Action
Team member responsible
Deadline
Have we broken even? – By
viewing our sales numbers,
have we sold more than 48
units?
-KayseeFelgate
28th of September
If we have not sold enough
-Bernie Ng
units to break even –
Implement additional
promotions to increase sales
Cold Brew – To get you Through
9th of October
22
for MD2
Encourage Loyalty – Ensure
posts are placed on
Snapchat, Facebook and
Instagrm reminding our
followers to bring their
‘Cold Brew Crew’ Card they
received on MD1 to ensure
the discount on MD2
- Ana Clarke
9th of October
Action
Team member responsible
Deadline
Encourage Loyalty – Ensure
you remind the consumers
that they can utilize their
‘cold brew crew’ card from
MD1 – this will be included
into our script.
All Team Members
10th Of October
Are we making enough
sales? Briefly check the # of
units sold.
- KayseeFelgate
1pm 10th of October
Action
Team member responsible
Deadline
Group evaluation of MD1
and 2.
- All Members.
10th of October close of
business.
Ensure our market area is
clean and if not, delegate to
clean.
- Stephen Wang
10th of October close of
business.
8.4 Market Day 2
8.5 Post-Market Day 2
Cold Brew – To get you Through
23
Reference List
ABS. (2014, 03 14).Regional Population Growth, Australia, 2012-13. Retrieved from Australian
BureauofStatistics:
http://www.abs.gov.au/ausstats/[email protected]/Products/3218.0~2012-
13~Main+Features~Queensland?OpenDocument
Brisbane. (2014). Brisbane Demographics. Retrieved from Brisbane, Australias New World City:
http://www.choosebrisbane.com.au/corporate/about-brisbane/demographics
Betters, E. (2015, Jan 29).What is snapchat and how does it work? . Retrieved September 1, 2015 from PocketLint: http://www.pocket-lint.com/news/131313-what-s-the-point-of-snapchat-and-how-does-it-work
Folger, J. 2015. “Implementing A Small Business Social Media Strategy: Retrieved from:
http://www.investopedia.com/university/implementing-small-business-social-media-strategy/
Grewal, D., Levy, M., Mathews, S., Harrigan , P., &Bucic, T. (2015). Marketing. North Ryde: Mc-Graw-Hill
Education (Australia) PTY LTD.
Investopedia.
(2015,
jan
1).
Cult
Brands.
Retrieved
sep
1,
2015
from
Investopedia:
http://www.investopedia.com/terms/c/cult-brand.asp
Martin, G. 2011, The importance of marketing segmentation. American Journal of
Business Education, 4(6), 15-18. Retrieved
fromhttp://search.proquest.com/docview/874269598?accountid=13380
Levine,
M.
(1997).
Young
Optimism.
Retrieved
from
Ray
Morgan
Research:
http://www.roymorgan.com/products/values-segments/young-optimism
Moreau, E. (2015, jan 1).Top 15 Social Networking Sites You Should Be Using. Retrieved sep 1, 2015 from
webtrends: http://webtrends.about.com/od/socialnetworkingreviews/tp/Social-Networking-Sites.htm
APPENDIX A: Product and Stall Checklist (all businesses to complete)
Cold Brew – To get you Through
24
To ensure that your product and stall complies with Australian health and safety laws and
the rules of QUT and QUTopia, please complete and sign the following checklist, Please
note that these rules are monitored at marketday and any breach could result in your
business being shut down on the spot.
If your business requires a food license (as indicated in the product section of the plan,
this will be provided by your tutor prior to marketday conditional on meeting all
requirements).
Item
Is a food license required?
Detail
http://www.brisbane.qld.gov.au/lawspermits/laws-permitsbusinesses/food-businesslicences/starting-new-foodbusiness/market-food-stall.
Does your product have all
ingredients listed on a label
attached to the product?
What are the dimensions of
your stall?
Must NOT exceed 1.5m x 1.5m in
width and depth
Will you be using electricity
in your stall?
If so please state the equipment you
will be using:
Are there any stall features
that require safety or mess
precautions?





Examples are:
Boiling water/kettles
Esky’s (water condensation
on floor)
Spillages
Power cords that require
taping down or hiding behind
stall
Your Response
No
List the items to be shown on
your label: Coffee, Water,
Caramel Flavouring, Milk, Soy,
Lactose Free
Height: None
Width: 5.5 Steps
Depth: None
No
List the precautions you are
taking: We will constantly have
paper towels available to clean
up any spillage. A serviette will
also be given to our customer
in case they spill any once they
have left the stall. Every five
minutes we will check for any
spillages.
APPENDIX 2 Product Health and Safety License Application (only businesses selling food,
beverages or items that touch the skin to complete)
Cold Brew – To get you Through
25
Item
1. For QUTopia, any product that touches the body or is ingested requires a
product label listing ingredients. Does your product labelling comply with
Queensland food labelling requirements?
http://www.health.qld.gov.au/foodsafety/standards_code/labelling.asp
Food items only:
2.
Does your product comply with food handling procedures including gloves if
touching unpackaged foods such as fruit for smoothies, hot dogs or
cakes/biscuits?
All items
How are you transporting the food, beverage or item touching the skin to
marketday?
Is refrigeration or heating required for storage during transport or at marketday?
If so please state the details.
OFFICE USE ONLY
License approved: ______________________________
Tutor signature and date
Cold Brew – To get you Through
26
Your Answer
Yes.
“Coffee, Water,
Caramel Flavouring,
Milk, Soy, Lactose
Free (type to be
highlighted).
Yes. Gloves will be
used when making
the products.
All beverages are to
be transported in
coolers with ice on
the day.
We will have paper
towel for any
spillages.
APPENDIX 2: MARKET VISIT
Location of market: Kelvin Grove village
Time, day and date visited: From 9:30 to 10:30 21 August, 2015
Team members present: ZIXIN WANG (Stephen)
Observations - Busy Stalls
● What products were being sold?
● Who were the customers? (describe)
● How did they attract people’s attention?
● How do they handle queues?
● What consumer ‘need’ are they satisfying?
·
Observations - Busy Stalls:
What products were being
sold?
Foods, vegetables, fruits or snacks
Who were the customers?
Everyone can be the customers for foods or snacks driven by
hungry especially in the lunch hours. In this time, more people
prefer having food to consuming other goods. The customers
for vegetables and fruit are mainly housewife, young couples
or some residents living around here.
How did they attract
people’s attention?
Foods and snacks stall mainly use delicious odour and
attractive pictures to get people’s attention.
Vegetable and fruit stalls are on the other way. They mainly
used a big sales sign to attract customers like 2 pineapples for
4 dollars. Also they set many row and column in their stall. So,
the customers will spend more time in the stall.
How do they handle
queues?
Some foods stalls may spend some certain time for cooking.
So, the staff will give customers a number ticket so that
customers could walk away for a few minutes and then come
back for picking up.
Vegetable and fruit stalls just try their best to charge to avoid
the lone line.
What consumer ‘need’ are
they satisfying?
Most of consumers are happy with the goods here especially in
the relax weekend.
Observations – Non-busy Stalls
-What are their products?
-How do staff respond when people walk past? (ignore them, make eye-contact)
Cold Brew – To get you Through
27
-Why do you think their stall is not busy?
-What could they do to improve sales?
What are their products?
Clothes
How do staff respond
when people walk past?
They make eye-contact with every customers on the street
even though few people come in to have a look.
Why do you think their
stall is not busy?
The stallholder just sits there and reads books. People may
don’t have enough time for selecting clothes in this busy
market (people might need time to try on clothes). Some
clothes are used clothes. Customers can purchase a new
one with an inexpensive price.
What could they do to
improve sales
Choosing a better location in the market and providing the
changing place for people. Or they can provide a really
cheap price which is below the price in store.
Cold Brew – To get you Through
28