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The partners have no clue about what the most profitable target market, product pricing and final product offering is. Furthermore, the partners need an excellent promotion plan to familiarize Beyond the Bean with their target market. Goals The partners have a few goals set. The social goal is to create and maintain a safe environment for as well its customers as for its employees. Their financial goal is to have reached at least a turnover of $240. 000 after 3 years. Actions to take There are also a few actions that have to be taken by the partners. First of all, the market to target their promotion on has to be selected.
Next, a suitable promotion plan has to be created to attract their target market. Finally, the product pricing and final product offering needs to be decided upon. Plan The target market will carefully be selected based upon the size of the target group and the expected profitability. The costs of promoting Beyond the Bean have to fit the promotion budget of $6. 000 which is a relatively small budget, so the promotion plan will mostly be based on the costs of the promotion tools. Moreover, the partners have two possible pricing scenario’s to decide from, the product pricing will again be eased upon profitability.
The final product offering can differ from also serving alcoholic beverages in the caf???? or only non-alcoholic beverages. The final product offering will be based on suitability, convenience and costs. External Analysis The market analysis By focusing on social interaction “Beyond the Bean” has effectively implemented a local differentiation strategy. 1 “Beyond the bean” will be launched as a caf???? that specializes in gourmet coffees and related beverages where customers can also rent tables and play board games. Its target market consists of people between the ages f 18 and 30 years and neither gender or ethnicity will constitute a basis for segmentation. The ideal atmosphere for the caf???? will be a safe environment where people can enjoy themselves with different (board-) games and a high quality range of drinks and food. “Beyond the Bean” wants to maintain a long-term relationship with its customers, this is why the partners want to be able to provide all the necessary information about the (board-) games.
Competitive forces Recent research showed that there is no similar business in the area of “Beyond the Bean”; this means that the competition in the board games caf???? industry is very throng on a regional basis but somewhat weak locally. Direct competitors are “Fleetly’ and “Paellas North”, both competitors are offering different games, high quality food and beverages. Indirect competitors are “Tim Horton”, “Struck”, “Williams Coffee Pub” and “Coffee Culture Caf???? and Eatery’. The indirect competitors offer different kinds of beverages and baked goods, and some of them a relaxed atmosphere with the availability of Wi-If. Beyond the Bean” will differentiate itself by not providing Wi-If, because of the idea that Wi-If discouraged social interaction. Economic forces Also Loon’s economy was a victim of the worldwide recession triggered in 2008 and is still recovering. Unemployment counted 8. 8 per cent; this generally led to reduced spending on discretionary expenses, including entertainment. But even though the partners of “Beyond the Bean” are aware of this unfortunate situation, they are convinced that their business will grow rapidly, especially since specialty coffee had a growth rate of 20 per cent annually during the last decade.
This is also one of the reasons that the partners decide to serve different kinds of coffees, other beverages, eked goods and other food. Political forces There are no expected political influences or events that could affect the operations of Beyond the Bean. 3 Political factors include regulatory issues that affect your product line (e. G. Ergonomics issues and the current regulatory rulings), legal aspects such as patents and copyrights, or Just the current political climate. Political forces are currently no issue for “Beyond the Bean”4.
Legal and regulatory forces The partners of “Beyond the Bean” pondered the idea of offering a limited selection of alcoholic beverages, primarily beer and wine. But this would mean that the business’s liabilities could increase, resulting in higher annual insurance premiums. The partners decided that in a caf???? as Beyond the Bean it would be a better choice to avoid alcoholic beverages. Technological forces In today’s society, technological products are continually improving and developing. These improvements could lead to constant use of mobile devices and this will stop people from talking with each other.
The decision of not providing Wi-If in Beyond the Bean is then better than its competitors, which do provide free Wi-If. Coloratura forces To select the potential customers for beyond the bean, the market will be divided into different segments. Because of the different schools and colleges located near beyond the bean, the best segment will be between the ages of 18 and 30 years and that neither gender nor ethnicity would constitute a basis for segmentation. Internal analysis Current target Beyond the Bean is mainly focusing on people between the ages of 15 and 34 years.
The company has a target market of four different segments: Western University students, Banshee College students, high school students and young professionals. Our primarily target market is going to be the students attending Western University and Banshee College. Beyond the Bean is going to be located close by both schools which makes it easier for them to reach the company. This group would also be most likely interested in both drinking coffee and playing board games. Western University Students Both Gregg and Peck attended the Western University not too long ago which made them believe that they understood this target the best.
Western University has approximately 30,000 students enrolled and almost 4500 first year students enrolling every year. University students like to socialize with friends outside of school campus for a reasonable price and were looking for an alternative from their usual bars. Most students do not own a car and travel with the bike, public transportation or walk. Most of them also live in the area of the university so Beyond the Bean has to be at a close distance from the university. Banshee College Students Banshee students have similar characteristics to those from Western and also enjoy an evening out without alcohol.
Banshee enrolled over 1 5,000 students at its campus. Banshee is around 10 kilometers away from Western university and the reposed Richmond Row location of Beyond the Bean. Current Position Beyond the Bean is coming with a new concept to London, Ontario. There is no other company that has a combination of being able to rent board games and have a cup of coffee at the same time in this area.. Board games started to rise in fame again since the early sass and their sales have increased 100% in the last 5 years.
Current Competitive Advantage With Beyond the Bean being the only one in the area of London, Ontario they have a big advantage. The company does have some direct and indirect competition. The erect competition is Fleetly and Paellas North and the indirect are the coffee shops in the area. Fleetly and Paellas North are social and recreational companies. They provide a good time for the whole family, where you can eat play and socialize. They are in possession of bowling alleys, billiard tables and arcade games aside of the bar, restaurant and lounges.
The indirect competition are Tim Horton, Struck, Williams Coffee Pub and Coffee Culture Cafe and Eatery. These company offer the customers with a wide selection of coffees and small pastries and snacks. They also provide free Wi-If for the customers. Current Marketing Mix Product The product that Beyond the Bean wants to offer to its potential customers is a good cup of gourmet coffee while playing a fun board game. Beyond the Bean is not going to offer Wi-If to its customers to stimulate more socializing between others.
The company has also decided not to sell alcohol to eliminate extra costs and to The pricing of the coffee would have to be comparable with the coffee shops which ranges between $1. 75 to $4. 00. Beyond the Bean is going to charge the customers $8,00 a hour for one table with a maximum of 6 players. This way potential customers eight come with larger groups to divide the costs among each other. Promotion The company has several ways to reach out to the potential customers. Beyond the Bean wants to spend $6. 000 on marketing but is not yet sure on how to promote the company yet.
Beyond the Bean is also planning on developing a website and a Faceable page. One of the partners has technical abilities and is going to create the website herself and the company is not planning on using the paid advertisement from Faceable to cut costs. Beyond the bean has decided to place advertisements in both newspapers of Western University and Banshee College. Place There is not yet a location decided but the location of Beyond the Bean will be in the area of Richmond Row. Which is close to the Western University and Banshee College.
SOOT Analysts Strengths 1 . Both, David Craig and Angela Peck, are knowledgeable about a large selection of games; they are able to provide expertise to help patrons understand the rules. 2. The partners already have a $ 60000 start-up capital. 3. The decision to provide no free Wi-If, in contrast to other coffee shops and lounges, in order to reach a higher social interaction level. 4. Beyond the bean will be opened every day. 5. The partners followed various seminars and trainings to know more about their “soon to be” business environment. Weaknesses 1 .
The decision to provide no free Wi-If, potential customers could prefer to go to a competitor. 2. Because of the small start-up capital there is only a limited amount of employees the first months. 3. The partners are new in the business, the lack of experience could be a problem. 4. The partners have a low promotion budget, this could interfere with people getting to know “Beyond the bean”. 5. If the partners can’t make enough promotion, this could lead to weak brand awareness. . Seasonal customer target, a lot of students will go home during the summer, this means less revenue.
They may have to broaden their focus. 1. There is no similar business near London. 2. There are different ways to promote; Web and Faceable pages, The western gazette, Franchise interrogating, The London free press. 3. There will be different kinds of universities and/or colleges; Western University students, Franchise college students. 4. The partners can follow engineering courses; full-year university course ‘Business for engineers” and following seminars at the London Small Business Centre (CBS) 5. Board games are becoming increasingly popular. 6.
The world wide Coffee business is an multi-billion dollar business. Threats 1 . The underemployment in London could results in less recreational expenditures. 2. All the coffee shops mentioned besides “Tim Horton” provide products of comparable quality and they offer the ability of relaxing in a comfortable environment. They also provide free Wi-If. 3. Other facilities who are well known for offering successful entertaining and their food menus as well, Paellas North and south. Fleetly focuses on younger children, teenagers and adults. The target roof from Beyond the bean are students. 4.
If other facilities decide to provide alcohol and customers prefer to have a alcoholic beverage, Beyond the Bean could lose revenue. SOOT conclusion As mentioned before, board games are becoming increasingly popular which means that Beyond the bean could become a very successful business. Since Beyond the bean will not provide free Wi-If at its location, it means that there will be a higher level of social interaction. Even though there are direct competitors that do provide free Wi-If, this will not form a problem because no Wi-If means that Beyond the bean fraternities itself from its current competitors.
For a new beginning company, brand awareness could be a problem, but it helps that Beyond the bean is opened every day from 1 lam till 1 1 pm, which makes it easier for potential customers to visit Beyond the bean and thus experience the wonderful atmosphere before they will create promotion mouth-to-mouth. Brand awareness will become even stronger if Beyond the bean uses its available promotion budget, the total budget available will be calculated at the ‘Budget’ section. SSL ex.= games. – The partners are knowledgeable about a large selection of (board-) Board games are becoming increasingly popular. The partners already have a $60000 start-up capital. SO x 02 = – There are different ways to promote. – The decision to provide no free Wi-If; higher social interaction level. X 05 – The decision to provide no Wi-If; higher social interaction level. SIXTH= – Some competitors do provide free Wi-If. – Beyond the bean will be opened every day. SO x 03 – There will be different kinds of customers; everyone can visit at their own – When are the competitors opened? – The decision to provide no Wi-If; customers could decide to go to time. Competitor. Ђ?? – Not enough promotion; could lead to weak brand awareness. 2 – – Seasonal customer target; students will go home during summer, less WASTE revenue. – Other facilities; competitors at other places. Target Market & Segmentation The owners of Beyond the Bean have decided to start their business in London (Canada). There are four different groups which can be targeted. Groups Western University Students Banshee College Students 1 5 000 students High school students 20 000 students, between the age of 14-19. It differs for each student how much money he/she has to spend. Young professionals 15 000 professionals, between the age of 25-35.
They have relatively more money to spend compared to other groups. Case information This is by far, the biggest target group. The majority of the students do not follow classes in the summer time, meaning that seasons are related to the amount of students at the University. Banshee College Students The difference between Western and Banshee is that both schools are 10 km apart from each other and that Western University has the double amount of students Banshee has. The seasonal aspect is the same for both schools High school students Some students work part-time, which would provide them with some spending money.
However, Beyond the Bean has doubts if the coffee focused menus will appeal this group. Young professionals The partners think the coffee menus are suitable for this group but they fear the board game aspect will turn this group off. Ages 12-18 University & College students 18-can go up to 30 Young professionals 25-35 Additional information and research College and University students These students have money to spend. They either acquire it by working or by receiving parental help. The amount of students who have a credit card is increasing every year. This means the amount of money they have to spend is increasing so ore spending money.
High school students Research has shown that people start drinking coffee at a young age. (13 years). High school students turn out to be vulnerable for caffeine addiction. But the larger part of this group is dependent of transportation. This group will be least likely the best target group. The caf???? plans on opening the doors early in the morning and closing them one hour before midnight. The majority of the high school students will not be able to make use of the time rooster which Beyond the Bean wants to realize. However, young professionals mostly work during daytime.
Also, this group has the average age where most persons start becoming parent. This would imply that they would even have less time to visit Beyond the Bean. Conclusion target market The best target group to focus on, is the group of College and University students. This group has been chosen because of its large seize and this particular target group will respond best to the board’s game caf????, compared to other groups. College and University Students are the best target group, because Beyond the Bean has the possibility to operate from a location, located approximately 5 km from both Western and Banshee.
From the 50 000 students, from both colleges, there will always be people who have some spare time. For example, students often have in- between hours, which provide them with spare time. Regarding the spare time topic, young professionals will most likely have no time to visit the time-consuming boards game caf???? during day time. This is also one of the reasons why there has been decided to not focus on young professionals. The average high school student has time to visit the caf????, but many of these students are reliable of transportation. While college and university students mostly travel with public transportation free of hare.
Beyond The Bean sees this group as the one to target, since this group: Is large in quantity. Has some spending money. Is in the right age sector to appreciate coffee menus. The boards game caf???? provides the right form of amusement for a large target who have to study a lot and who favors to relieve some stress from time to time with a fun board’s game and a tasteful beverage on the side. Positioning By presenting the caf???? as a new alternative for customers. Beyond the Bean will position itself as a unique coffee shop. Many students search for ways to inexpensively socialize with friends.
Besides regular bars, the board’s game caf???? is a way to socialize with friends but also get to know people from the other colleges. Drinks and providing a place for both colleges to socialize. Beyond the Bean will try to differentiate itself from other coffee shops by making use of certain opening hours. Closing the shop weekly at 11 p. M. And during weekends at midnight. Which might attract other audience. The students target group has free use of public transportation. Therefore, Beyond the Bean will position itself as a place which is easy to get to.
Public transport services provide several routes to the caf????. Beyond the Bean will provide Wi-If in the caf????. Wi-If makes it even easier to socialize with your network. During a boards game you will still be in touch with the outside world. Corporate strategy A corporate-level strategy is all about the question: What business are we in? This question mostly relates to new businesses, such as “Beyond the Bean”. 6 To formulate the corporate-level strategy, we have to create a portfolio strategy. A portfolio strategy consists of SSW, strategic business units; this shows the unique business mission.
The unique business mission of “Beyond the Bean” is that the ratters want to create a safe and comfortable environment for people to enjoy their selves with (board-) games and friends without the interruption of mobile devices. Goals and Objectives In this part of the marketing plan one can find information about the goals of Beyond the Bean and the objectives to accomplish the goals. Financial goal Beyond the bean wants to reach the break-even point in 2 years. Objective The company has calculated how much customers would be needed in the first 2 has decided to pay back $30,000 in the first year and $30,000 in the second year.
Beyond the bean wants to achieve a turnover of $370. 22 in 3 years. Objective If beyond the bean wants to achieve a turnover of $370. 122 it must realize to have approximately 297 customers per week that spends an average of $8,00. This is concluded by the following expectations, Beyond the Bean expects that each customer has to pay $2,00 per hour and expects that customers will play a game for minimum 2 hours. Beyond the Bean supposes that each customer buys a minimum of 1 drink. (the drinks are around $4). So Beyond the bean has to realize 594 customers each week by using the following calculation, average turnover per customer = 2,00 (p. . H) + 2,00 + 4(consumption p. P. ) = $8,00. Objective To manage the goal of 594 customers beyond the bean need attract their customers with its promotion plan. See marketing mix promotion for the details. Social goal Create a save environment for the customers and employees during the company’s lifetime Objective To attain this goal for the customers, beyond the bean must have reliable employees that can lead the company. To reach this goal for the employees, the employees must have to trust each other and the employees have to be chosen properly.
Each employee must be professionally tested on his or her social kills and responsibility feeling. This could be tested with physiological tests. In brief Beyond the Bean wants to achieve a turnover of $370. 122 in 3 years, to achieve this it has to attain an amount of 594 customers each week. It can attract its customers by its promotion plan. Beyond the Bean also wants to create a save environment for its customers and employees, Beyond the Bean will do this by providing treatable employees. Marketing Mix The idea is to launch a cafe that specializes in gourmet coffees and related beverages