Product

The product portion of The Bean Break would be focused on coffee, smoothies, and delicious food. “Buyers can be grouped according to occasions when they get the idea to buy, actually make their purchase, or use the purchased item.” (Source: Marketing: An Introduction for Education Management Corporation, page 179) The way to have my products sell is to upsell with doing any discounts and also to provide guests’ with great customer service. The products’ main focus is to have the customers approve of the taste and to enjoy the service provided. The coffee should meet customers’ needs and to give them what they expect. I was thinking of having the beverages be customized to whatever type they would like taste wise. “Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.” (Source: Marketing: An Introduction for Education Management Corporation, page 177) Customizing the beverages would make a huge advantage and if they like it the first time, there will be a guarantee that they will come back again and order their usual. Every customer likes having it their way and what better way to meet their needs than to make something they know they will like? Even the word ‘customized’ would be a great description to the shop. The Bean Break will make the products grow and evolve it into something better with our customization, it will definitely leave customers happy and it will absolutely bring them back because at this shop, the products will make a huge success and the customers will love it. They will also bring in their friends and family for them to try out which means more business and more profits for the products I will have.

Target Market Strategy

The Target Market Strategy for The Bean Break will be for the ages of 15-23 years old and for customers who enjoy coffee and smoothies along with some great food. I also want to target creative and artistic customers as well. “Behavioral Segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments.” (Source: Marketing: An Introduction for Education Management Corporation, page 179) I know it may be a stereotype, but most artistic people like drinking coffee along with other hard workers that need it for school and/or a job that has late hours. “Marketers rarely limit their segmentation analysis to only one or a few variables. Rather, they often use multiple segmentation bases in an effort to identify smaller, better-defined target groups.” (Source: Marketing: An Introduction for Education Management Corporation, page 183) It would be great to have all different types of customers that enjoy my coffee shop. I think customers who are into exercising would be great to come into The Bean Break because we will have those fresh, organic fruit smoothies that they could enjoy. “Such deceptively simple statements form the backbone of a product’s marketing strategy.” (Source: Marketing: An Introduction for Education Management Corporation, page 53) The statement for The Bean Break would be for the ages of teens to adults who are artistic and exercise daily are the main targeted customers that I would want, but anyone is welcome to check out The Bean Break and see what we have to offer and taste the delicious, premium coffee, smoothies, and food that we will provided. The entertainment would be a huge target market for my business because it will attract them and bring them back.

Situation or SWOT Analysis

“The marketer should conduct a SWOT analysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T).” (Source: Marketing: An Introduction for Education Management Corporation, page 55) First of all, the strengths for The Bean Break would be the entertainment portion incorporated into the business along with the premium coffee, fresh, organic fruits for the smoothies, and the sandwiches along with some snacks for the business. Weaknesses for the coffee shop would be the pricing of the coffee, smoothies, and sandwiches/snacks, the pricing may be a little bit inexpensive and sometimes too pricey. Another weakness would be the stamp or punch cards that the shop will have. Customers may come in with many of those cards to get free coffee and/or a smoothie which will hurt the business for not getting any profit out of it. Opportunities at The Bean Break will be the entertainment because customers could have their art work shown in the coffee shop so all the customers can see and even purchase depending on the artist. It will also expand more listeners if a local band came in and played a little show for everyone, which does create opportunities for customers and the entertainment, it’ll kind of be a win-win situation. Lastly, threats for The Bean Break would be the competition with other coffee shops around town such as Starbucks, The Coffee Bean, Tropical Smoothie etc. The coffee shop business is pretty tough just because everyone goes to Starbucks mostly to grab their coffee and a pastry. The competition would hurt my business by a lot, which is why I have to find out more ways to upsell and have customers be loyal. I also want customers to know that the coffee and smoothies we will provide will be premium.

Objectives

“The company’s strategic plan establishes what kinds of businesses the company will operate and its objectives for each. Then, within each business unit, more detailed planning takes place.” (Source: Marketing: An Introduction for Education Management Corporation, page 47) The main objective for The Bean Break would be to bring in a lot of customers into the business and provide a comfortable environment for them to have customers continue to come into the shop. I know that the coffee has to be premium and the smoothies will be from fresh and organic fruits so nothing will be artificial products incorporated into the business. “A market can also be segmented by consumer loyalty. Consumers can be loyal to brands (Tide), stores (Target), and companies (Toyota). Buyers can be divided into groups according to their degree of loyalty.” (Source: Marketing: An Introduction for Education Management Corporation, page 183) In order to have these loyal customers, The Bean Break will, again, have entertainment provided and there will be stamp or punch cards that customers can use to have them come back frequently. How the stamp or punch card works is if the customer buys 9 coffees or smoothies, the 10^th coffee or smoothie would be free up to a certain size that is. Everyone likes free things, but I know by having these stamp or punch cards, it wouldn’t hurt the business very much. The pricing on coffee would be $3.25, 50 cents more for the medium size, and another 50 cents more for the large cup. The pricing with the smoothies will be a little bit more since they will be fresh and organic fruits. The small cup would be $3.50, 50 cents more for the medium, and another 50 cents more for the large smoothie cup. All the beverages will include tax.

Business Mission Statement

“A clear mission statement acts as an ‘invisible hand’ that guides people in the organization.” (Source: Marketing: An Introduction for Education Management Corporation, page 39) The Bean Break's mission is to serve the best entertainment and to provide guests' with freshly brewed coffee to keep them coming back for more. “Mission statements should be meaningful and specific yet motivating. They should emphasize the company’s strengths in the marketplace.” (Source: Marketing: An Introduction for Education Management Corporation, page 41) At The Bean Break, customers will be in a very mellow environment that will have people be stress free. It will have customers coming back because there won’t be a coffee shop like this anywhere else. The Bean Break will suit customers from the ages of 15-25 years old because this will be a hang out spot for them to enjoy a cup of coffee/tea, snacks, and fine, creative entertainment for them. “Difficulties arise in developing a product or brand that will satisfy all consumers.” (Source: Marketing: An Introduction for Education Management Corporation, page 187) Some people might be a bit older that might come in and would not like what we offer them especially with the entertainment part, but I know they will enjoy the food and beverages that we will provide them. They are going to be all different types of beverages and food available so everyone would have a hard time choosing. There will be many options for the customers and I think it will be an advantage for have a wider variety of food and beverages for them. The Bean Break will be something completely different and something you haven’t seen before. It will knock out all the other coffee shops in town! I do hope this company will attract the customers and give them all their needs.

Week 8 BOC: Progress on my Final Project

So far, the theme of the coffee shop I have in mind would be something like a minimalism, yet edgy, artsy style. There will be some premium coffee beans, vegetarian food, different variety of teas, non-vegetarian food, and freshly made smoothies. This coffee shop will look expensive and the location looks like a great spot to make this absolutely possible. There will be a ton of space for art shows, open mic nights, poetry slams, etc. The coffee shop again, will be called ‘The Bean Break’; I’ve done research to check if that name was taken, but it was available and I believe that it would grab people’s attention. It will be different than Jamba Juice and Starbucks by having entertainment for a few days a week to keep the business busy. I took a step back and asked myself, “What kind of coffee shop would I go to?” The idea popped up in my head with the entertainment and selling coffee/smoothies and delicious food. It sounds like an ordinary coffee shop, but what makes it different is, again, the entertainment portion of this place. I created an idea as to what type of place I would go to than an ordinary coffee shop for creative minds like myself and other people. ‘The Bean Break’ would not only be entertaining, but absolutely satisfying to guests’ wants and needs. The free Wi-Fi would also grab people’s attention since most Starbucks’ have very little space to focus on working on homework and such. I am also still deciding if I should have a stamp/punch card for guests, for example, a guest comes in to get a coffee or a smoothie and they get a stamp for that and after 9 stamps, their 10^th stamp would be a free coffee or free smoothie.