topic marketing plan

By offering prompt service and a selection ofdrinks and food, coffee shops create a positive experience for all customers.... By using quality ingredients, optimizing costs, and offering

Group members:

(100%)Course: MKT 101

FPT UNIVERSITY – CAMPUS HO CHI MINH

GROUP ASSIGNMENT [MKT 101]

TOPIC: MARKETING PLAN

Table of Contents

1 Introduction 4

2 Customer Insight and STP 4

2.1 Customer Insight 4

2.2 STP 4

2.2.1 Segmentation 4

2.2.2 Targeting 5

2.2.3 Positioning 6

3 Marketing Environment Analysis 6

3.1 Microenvironment 6

3.1.1 Competitors 6

3.1.2 Employees 7

3.1.3 Media 7

3.1.4 Customers 7

3.2 Macroenvironment 8

3.2.1 Cultural Significance of Coffee 8

3.2.2 Technological Aspect 8

3.2.3 Demographics Insights 9

3.2.4 Economic Impact 10

3.2.5 Natural Factors 10

3.3 Opportunities and Challenges 11

4 Marketing Plan 11

4.1 Timeline 11

4.1.1 July 2023 - August 2023: Attract more customers 11

4.1.2 September 2023 – February 2024: Increase in Income 11

4.1.3 March 2024 - June 2024: Preserve in Income 12

4.2 Objectives 12

4.3 Marketing Mix 12

4.3.1 Product 12

4.3.2 Price 14

4.3.3 Place 15

4.3.4 Promotion 15

5 Conclusion 17

6.1 The Menu of Cafe Vu 18

6.2 Purchases on rainy days 19

6.3 Purchases on hot days 19

6.4 The change in the Menu of Khuc Thi Du 20

6.4.1 The Old Menu 20

6.4.2 The New Menu 21

7 References 22

1 Introduction

A local coffee shop that has been around for a few years, Khuc Thi Du is located in District 7 It has

a loyal following because of its affordable prices and quality coffee Despite her success, cafe ownerTrinh is aware of the need to regularly change her marketing strategy to stay competitive in the ever-evolving field

With consideration of the current situation such as customer insight, analysis of the customersegments that the restaurant is targeting as well as the following micro and macro environmentalfactors, this study gives suggestions for Khuc Thi Du Coffee to expand business activities Overall,this study will provide recommendations on how Trinh's company can improve its marketsegmentation and marketing plan to continue to succeed in the fiercely competitive coffee industry

2 Customer Insight and STP

2.1 Customer Insight

Based on the customers' needs and preferences, we have gathered that customers highly appreciateconvenience, comfort, and time-saving aspects They desire quality products and services atreasonable prices, within a comfortable and friendly environment Meeting these needs will create

a positive customer experience and attract satisfaction and loyalty from customers

2.2 STP

2.2.1 Segmentation

Marketers use marketing analytics to segment their target market based on criteria such asbuying patterns, location, demographics, and lifestyle characteristics The café has identifiedthree main criteria to segment its customers: age, gender, and occupation

convenient locations on their way to school or work The café's current price appeals tocustomers with average incomes.

Secondly, the customer base has a gender ratio of 3:7 (female to male) This information allowsthe café to customize its marketing strategies to cater to the interests of its female customers,such as organizing events or promotions specifically for them

Thirdly, the café's proximity to office buildings attracts a significant portion of office workers,comprising around 70% of its customer base Home-based workers make up 17% of thecustomers, while students account for the remaining 13% Understanding the occupationbackgrounds of customers helps the café tailor its menu and services to meet their specificneeds

By segmenting customers based on age, gender, and occupation, the café gains valuable insightsinto their demographics and behaviors This information enables the café to develop effectivemarketing strategies that enhance customer experience and satisfaction

2.2.2 Targeting

The shop caters to a diverse customer base with various needs Whether it's office workers,students, housewives, or workers, all customers value quick and convenient service Coffee shopsprovide a place for busy office workers to relax, students to maximize their time, housewives towork or unwind, and workers to enjoy coffee By offering prompt service and a selection ofdrinks and food, coffee shops create a positive experience for all customers

2.2.3 Positioning

The goal of the cafe is to provide high-quality coffee to its customers while maintainingaffordable prices By using quality ingredients, optimizing costs, and offering convenientamenities such as free Wi-Fi, the restaurant has been able to enhance the overall customerexperience

The shop also prioritizes convenience and speed in operation to serve customers who valueefficiency and save time

3 Marketing Environment Analysis

3.1 Microenvironment

A company's immediate environment, or microenvironment, is made up of all the individuals thatinteract with it daily and have a direct impact on how well the organization performs (S, 2020)3.1.1 Competitors

The biggest rival of the café is Café Vũ, which offers competitive pricing, diverse cup sizes, and amenu that includes popular dishes and snacks preferred by customers Café Vũ attracts customersbased on convenience and a comprehensive dining experience This poses a significant challenge

to the café's market positioning, as Café Vũ captures a larger market share and has a distinctcompetitive advantage Appendix 6.1 provides a menu comparison of the coffee shops

After observing, analyzing, and interviewing customers of Khuc Thi Du coffee shop and a fewcompetitors, our research team has made a table comparing the criteria of the coffee shops witheach other

Khuc Thi Du Vu Coffee Mr Dung

3.1.2 Employees

The cafe's small workforce of just two employees poses challenges in managing various aspects

of the business, leading to potential delays, errors, and compromised service quality Thisshortage of staff not only affects operational efficiency but also creates a negative impression onpotential customers who may hesitate to choose the cafe due to crowded and chaotic

environments and long wait times

3.1.3 Media

The café only relies on direct sales and hasn't utilized social media platforms This limits itscustomer potential and misses out on the benefits of increased visibility and wider reach.Customers have expressed frustration with the limited sales channels, as they prefer theconvenience of ordering through social media apps

Customers attach great importance to the price and quality of the cafe In addition, theyappreciate the convenient location, as it allows them to easily buy coffee before going to work.However, the coffee shop seems to overlook the aspect of creating a pleasant atmosphere, whichcan have a significant impact Khuc Thi Du coffee shop mainly focuses on take-out sales, ratherthan creating a suitable and inviting space for customers to sit and enjoy their coffee Additionally,some customers have expressed dissatisfaction with the wait times for their drinks, prompting thecafe owner to consider prioritizing service speed improvements.

3.2 Macroenvironment

3.2.1 Cultural Significance of Coffee

The coffee culture of Saigon is the very reason why Khuc Thi Du coffee shop always attracts abustling crowd in the early morning as people head to school or work, as well as during the lateafternoon hours when shifts end This culture has a significant impact on the business dynamics

of the establishment The deeply ingrained coffee culture in Saigon draws locals and visitors alike,who appreciate the ritual of enjoying a cup of coffee as part of their daily routine This culturalphenomenon creates a strong demand for coffee shops like Khuc Thi Du, making it a favoreddestination for those seeking a genuine Saigonese coffee experience As a result, the coffee shopthrives and prospers due to the positive influence of this vibrant coffee culture on its businessoperations

3.2.2 Technological Aspect

Technological advancements in coffee makers and grinders have revolutionized the way hot andiced coffee is made, offering a multitude of options to suit the diverse preferences of coffeeconsumers

Despite the continuous advancements in technology, the coffee shop has not yet reached its fullpotential Staff still adhere to the traditional way of making coffee, making customers wait a longtime This aspect is an important reason for the long wait times patrons have to endure

3.2.3 Demographics Insights

Based on market data (Th, 2017), our research team has gathered the following figures:Men: Among men, 20% consume hot coffee more than three times per week, while amajority of 65% prefer iced coffee at the same frequency

Women: 10% of women consume hot coffee more than three times per week, while 30%opt for iced coffee

Age Group 19-29: Only 10% of individuals in this age group prefer hot coffee, while40% choose iced coffee

Age Group 30-49: Among individuals aged 30-49, 50% prefer hot coffee, and 15% optfor iced coffee

Our research team was informed by the owner and staff that male customers account for 70% ofcoffee purchases and 55% of iced coffee purchases On the other hand, female customers make

up only 30% of coffee purchases, along with 65% of iced coffee purchases The age group thatconsumes the highest quantity of coffee, as reported by the staff and shop owners, is the agerange of 30-49, which accounts for 55% of the sales In contrast, the age group of 19-29represents 45% of the sales Compared to the information that was provided by the owner andemployees with the market data, there is a gaped between the consumption of women and menwhen comes to buying coffee The noticeable difference can be attributed to occupational factorsand the long-standing belief that men begin their day with coffee These factors have influencedconsumption patterns and preferences, leading to a higher proportion of individuals aged 30-49,who are likely to be more established in their careers and uphold the tradition of starting their daywith a cup of coffee

3.2.4 Economic Impact

The Covid-19 pandemic has left a lasting impact on the global economy, Khuc Thi Du Coffeealso has been substantial While the economy is recovering, the reduced incomes resulting fromthe pandemic have had a significant effect on consumer behavior, potentially impacting thedemand for coffee

Coffee, as being considered a non-essential item, had been affected by consumer behavior Peoplemay opt for more cost-effective alternatives or reduce their frequency of visits to the shop tomanage their limited budgets Which made Khuc Thi Du’s sales drop and made the total profit ofthe shop decrease intensively

However, with the pandemic under control, the economy starts to recover slowly The coffeeshop also changed to keep up with the recovery Because of the change, they start havingcustomers back and made a profit but not as much as they used to (VnExpress, 2023)

3.2.5 Natural Factors

Weather conditions play an important role which impacts coffee consumption The sales of hot oriced coffee can vary depending on the prevailing climate and temperature

On rainy days, the demand for hot coffee tends to rise The warmth and comforting properties of

a steaming cup of coffee provide a cozy experience

On the other hand, when it comes to hot days, customers will prefer iced coffee to cool downtheir quench and thirst The chilled beverage offers a cooling sensation that can be bothrejuvenating and satisfying.

The data collected by our team is presented in Appendix 6.2 and Appendix 6.3

3.3 Opportunities and Challenges

After analyzing the factors in the environment and micro-macro, we found that Khuc Thi Du coffeeshop currently has the advantages of location, Saigon coffee culture, and loyal customers Whenthe shop was able to effectively exploit these factors

However, at the same time, the coffee shop also faces challenges when the competitiveenvironment is quite high, maintaining stable quality with affordable prices, customer preferences,and needs, and attracting and retaining customers Along with the fact that the coffee shop has notyet exploited the success factor in terms of technology, making the business operation of therestaurant has not yet reached its maximum efficiency

4 Marketing Plan

4.1 Timeline

4.1.1 July 2023 - August 2023:Attract more customers

Marketing plays a crucial role in attracting customers and building brand loyalty By

implementing these strategies, Khuc Thi Du can enhance their brand image, improve the number

of customers, and increase growth

4.1.2 September 2023 – February 2024: Increase in Income

Increasing revenue is a common objective for businesses, which include Khuc Thi Du, it requirescareful planning, analysis, and implementation of effective strategies Applying the right

strategies, the coffee shop can optimize its income stream and increase finances During thisperiod, our team recommends the owner increase the price, add new items and increase sales bydoing marketing campaigns (LinkedIn, no date)

4.1.3 March 2024 - June 2024: Preserve in Income

Preserving income is a crucial aspect of finance that ensures financial stability and resilience Ourteam focuses on exploring effective strategies that Khuc Thi Du Coffee Shop can employ topreserve its income and ensure sustainable growth There are three effective strategies that ourteam recommends for the coffee shop

Our research team suggests implementing a new pricing strategy and menu that aligns with themarket while ensuring profitability Lastly, promotional campaigns will be created to increasebrand visibility and reach a larger audience

4.3 Marketing Mix

4.3.1 Product

According to the source of information taken from the owner of the coffee shop, they havereported that the total daily revenue is estimated to be around 2 million Vietnamese Dong permonth (VND) This data includes all products from coffee, smoothie, and soft drinks

Surprisingly, coffee is the product that generates the most revenue from potential clients,

accounting for almost 70% of the total The smoothie and soft drink categories, in comparison,generate the lowest overall revenue from the entire menu.

Based on the analysis of the revenue by each product, it is clear that smoothies and soft drinksbring in the two least amounts of money out of all the things the coffee shop sells They have thetwo lowest revenue among all the products offered by the coffee shop This is an importantinsight to consider in management for the coffee shop; it can be more cost-effective to partiallyremove low-performing items from the menu.By doing this, the coffee shop wants to focus onpromoting and selling popular items, which can lead to increased sales and revenues Our teamhas identified two methods

First, we will create a new menu in line with the competitor's offerings On the other hand, forsmall firms to be able to remain competitive in the market by offering diverse products andoutstanding customer service By serving Banh Mi with their drinks or coffee in the morning andlunch, Khuc Thi Du hopes to increase product diversity and attract a large number of customers

to their shop The new menu with Banh Mi will target another age of customers who are students

or workers in the office nearby Khuc Thi Du Coffee Shop will increase customer awareness byadvertising their new product to current and potential customers through a psychologicalassessment of nutrition and health in food

Second, Khuc Thi Du chose to reduce the number of smoothies and soft drinks due to low sales

of those items By eliminating drinks and adding an extra innovative option such as Banh Mi, thecoffee shop aims to improve revenue and bring more value to its customers Focusing onproviding high-quality products, which can help differentiate themselves from their competitorsand build a stronger brand image (Snapchat, 2023) All in all, these strategies are meant to helpthe coffee shop reach business goals and figure out where it will stand in the future