The launch of oriental cafe culture

Executive Summary

Throughout this report a discussion on the necessary steps to take when creating an advertising campaign for the coffee house Café Culture will be considered.

Some aspects of the communications mix shall be adopted when promoting the brand and how these will be beneficial towards the campaign will be acknowledged.

Within this process the target market will also be carefully thought-out to identify the type of market we aim to penetrate. As well as this, recognising where we stand in response to competitors is of much importance and shall be illustrated in graphic form within the report.

The deliverance of the campaigns effectiveness will also be drawn upon at the pre and post testing stage. The type of market research used will help clarify how well the campaign is likely to do in terms of building awareness.

Background Analysis

Market characteristics and trends

According to Mintel, in February 2009 the coffee shops market is estimated to be worth £1,155m. This growth can be accounted for by the big players such as Starbucks, Costa and Café Nero; opening new outlets on a regular basis with the aim to be located every high street. Overall, since 2004-2007, there has been 40% increase in Coffee market.

Furthermore with around 70million cups of coffee drunk every day (Mintel, 2007) it shows that this habit is part of many people's everyday life.

With the combination of having oriental themes coincide with the café there is potential for success. According to Mintel (2007) oriental foods are the second highest favourite among the British food market at £365million in 2006. The most popular being Stir-fries due to the flexibility of a range of different ingredients.

In addition, Mintel 2007, estimate that the Chinese/Oriental food market to increase by 15% to reach a total value estimating at least £441 million. This forecast is up until 2012.

Competitor Activity

'Cafe Culture' has a select number of direct competitors. Each competitor attempts to differentiate itself from others with some unique attributes. Cafe Culture will not be competing with large players such as Starbucks, Costa and Cafe Nero.

According to Keynote, Cafe Culture would be competing with Aroma, Cafe Nescafe and Café Cadbury.

Aroma, focuses on the quality and flavour of their coffee by using Arabica beans, and double filter water systems for purity.

Café Nescafe aims to transfer the popular in-home product to outdoor sites. Most of Café Nescafe sites are situated in many service stations across the country. There emphasis is to be a convenience rather than a quality coffee.

The perceptual map below illustrates a clear position of where we want to be in response to the competitors. In terms of the surroundings, service and products offered the aim is for Café Culture to be perceived as a high quality coffee house. Therefore Café Culture's main competitors will be in line with Café Aroma and Café Nescafe. However due to our specialty, Bubble Tea; Café Culture will have an exclusive advantage in differentiating itself from competitors.

Internal Situation Analysis

Organisation Identity

Café Culture is established as an oriental café specialising in a range of coffees and beverages. One of the main specialities is "Bubble Tea" which originated from Taiwan and has become recognised globally. Bubble Tea is a tea beverage containing tapioca pearls (flavorless, colorless, odorless starch) which can be customised into a variety of flavours to suit customers' preferences. This would complement the oriental ethnic meal that is already available by the JTA foods. This exclusive product will help to maintain Café Culture's unique selling point strategy as no other competitors currently offering the same beverage. It will also produce the standard range of coffees such as cappuccino, espresso, café latte therefore not restricting to a minor group of target market.

Marketing Expertise

The Company has the capabilities with coming up with that perfect idea or those definitive touches which in itself can be very demanding. Nevertheless we acquire the skills design your advertising campaign, and potentially will place your product on its own pedestal.

The Company's has the expertise to provide a full service and are specialists in Marketing, Design, Strategy and PR.

Financial Constraints

Due to a budget of £2 million this will only enable certain medium to be used. However the mediums chosen will be invested effectively to coincide within the budget, furthermore rate card prices for mediums will be negotiated to lower prices.

External Situation Analysis: PEST Analysis

Political Factors

Operating Cafe Culture may include trading agreement issues. This will definitely be the case if Cafe Culture imports their ingredients from other countries. However, displaying a concern into ethical issues may fit favourably with the government laws which in turn will help decrease the strict laws towards Cafe Culture.

Economic Factors

Within the economy that Cafe Culture is trading the level of inflation, Employment level per capita should be taken seriously. Due to the economic downturn at present it is crucial to consider the pricing strategy of products. As well as competition from main coffee outlets, there is seen to be competition from retail outlets offering similar services in this type of industry. However, due to the specialty and exclusive image, Cafe Culture will be able distinguish itself.

Socio-cultural Factors

Due to the oriental theme integrated within the business strategy the company will need to deliberate on whether this may affect potential customers. The advertising will demonstrate how culturally diversified Cafe Culture is regardless of the oriental theme.

Technological Factors

Due to consumers owning espresso machines it allows them to make coffees at home, this may take away a segment of Café Culture's sales. However with the uniqueness of the products being produced it will have little effect.

Marketing and Advertising Objectives

Marketing Objectives:

  • To make Cafe Culture a preferred brand to 40 % of our target market within a 12 month period
  • To generate a 5% return of investment within 6 months of the communication campaign
  • To gain 2% of the market share at the end of the campaign period. The purpose for assigning to reach this amount is due to the power of the major leaders of the market. (See Appendix 11.1)

Advertising Objectives:

  • To build awareness amongst 40% of our target market within a 12 month period
  • To position and perceive Cafe Culture as a high quality cafe within a 6 month period amongst 25% of our target market
  • To obtain at least 15% loyal customer and achieve 25% of acceptance and trust within the next 6 months of the launch

Target Audience

Demographics

The chosen target audience is lies between both genders, between the ages of 25-35. In terms of social economic class, they will fall into the low end of the middle class and high end of the working class. They will preferably be living in the inner and outskirts of the cities earning at least £30,000, typically working in a business environment.

Psychographics

The mature end of the market will have a habit of spending their money on quality goods and services such as high quality foods. However, the lower end of the market will take quality into account but also spend money on slightly cheaper goods.

They will have an interest in eating out and experiencing new things, going on holidays, socialising and networking on a business level. They love keeping up to date with latest fashion trends in Zara, Mango and GAP. However they are very ambitious minded and strive to be the best in whatever they choose to do.

Geo-demographics

The customers reside in the busy inner cities as well as the outskirts. Customers who live on the outskirts will be targeted because although they live on the outskirts they work in the capital.

Behaviouristic

The aim is for the target audience to visit Café Culture at least once a day.

With the unique theme that Café Culture possesses the aim is to exploit Café Culture's distinctiveness and aim to propel from this position. Due to the convenient locations of Café Culture, loyalty can be built much quicker.

Due to the nature of the product and our audience Café Culture will aim to target those who will not be greatly affected by price fluctuations.

Personality: Sophisticated, Intelligent, Confident

Hobbies: Tennis, Swimming, Shopping, Travelling

Sarah is a loyal 32 year old female customer to the Café Culture store who visits at least 4 times a week. Although her life is mainly centered on her work she still tries to enjoy the finer things in life. Due to her congested hectic lifestyle her stress levels are high and crave for a coffee and see it as a necessity. With the added pressure of having a child she drinks coffee at least twice a day. Sarah's residence is on the outskirts of the city allowing her to get away from the busy over crowded environment.

Personality: Easy-going, Sociable

Steven and David are close friends living together in the same flat near Vauxhall station. They both have busy lifestyles and hardly have time to cook at home. They often need at least 3 cups of coffee a day to relieve their stress from work. They always grab something to eat on the way. By having Café Culture situated near where they work, both of them can grab quality oriental meals as well as cold beverages to give them freshness from their tiring day.

Advertising strategy

The advertising strategy for this campaign will be focused on the unique selling proposition. Thus, the campaign is aimed to focus on the distinctive attributes of the Cafe Culture, the fact that the Cafe is using oriental theme and specialised in oriental beverages 'Bubble Tea', in which cannot be readily matched with competitors

Within the pre-stage of the product life cycle, the objectives of the campaign and the planning of the promotional campaign shall be set. Within the advertising strategy, all adverts and planning of media chosen will be in place and ready for the introductory stage.

All forms of medias chosen will be utilised at the introductory stage to help in building awareness of the launch of Cafe Culture and its unique selling point. Hopefully, this will generate a demand.

Within the growth stage around February investment in advertising will be very high in celebration of the Chinese New Year. This will give the opportunity to place the emphasis on the various product ranges on offer.

At maturity stage, sales promotion will be used in order to promote repeat purchases during the summer period. This will entail BUGOFF offers and meal deals.

At decline stage, promotions will still be running which will ensure maintenance of the brand and also reduce expenditures.

The single minded preposition is:

"With an oriental aroma that stimulates your desire, café culture awakens your senses giving you that head start."

The copy platform is:

"Release the flavour at Café Culture"

The core message

Taking into consideration the advertising objectives, stated above, the core message of the communication campaign will try to make customers fully aware that Café Culture is not your average coffee house. Café Culture is moving from a widely non-concept coffee house to a more unique coffee house, focusing more on delivering an oriental experience to the customers.

In addition, the campaign will try to convey that Café Culture offers variety of meals, coffee, snacks whilst enjoying the oriental experience through friendly staff and pleasant environment.

Having been exposed to the communications, the plan is for the target market to feel that Cafe Culture is their second home where they can enjoy oriental meals with a beverage in a relaxing environment. They must believe that when they come to Cafe Culture they will experience something new in comparison to other coffee houses.

Overall, the message from the campaign will emphasize on Café Culture being "oriental, unique and high quality café".

Development of campaign elements

In order to place Café Culture in the minds of the consumers, a proposed communications plan has been created to maximise the impact. An array of mediums has been chosen to use such as traditional methods like Billboards to the less conventional like Shopping Centre Toilets. Each has been chosen for the qualities it possesses and the exposure it provides to our specific users.

Integrating the communications mix will increase the chances of the target audience being exposed to at least one of the chosen mediums,

One place where the advertisement is placed is on London Buses. Bus usage is at an all time high and buses are the most seen medium in town. Due to a lack of other mediums used in town centres, buses capture at least 29million consumers each week when there on the move. (TGI, 2006)

http://www.cbsoutdoor.co.uk/upload/64172_672_1167230111993-You_can%27t_miss_a_bus_-_consumers_attitudes_to_bus_advertising.pdf

Due to the target market being situated in inner city areas due to work; they would always be in close proximity of a London Bus.

Furthermore, advertising on Buses can create great success as research shows that 86% of people can spontaneously recall a specific bus advert and 80% of consumers have responded to an advert they have seen on a bus. Therefore with our target market mainly situated in areas which are highly populated with buses it will create great exposure for Café Culture.

http://www.cbsoutdoor.co.uk/web/UK-markets/South-East.htm

Advertising will take place on a number of selected underground stations, these are Waterloo, Canary Wharf, Vauxhall and Victoria as this is where the target audience are seen to commute to. More people commute to London using public transport than relying on their cars due to the lack of parking facilities and congestion charges. This form of advertising coincides with the next potential form which is regional newspapers, the Metro and the London Lite.

With their being over a million readers of the morning Metro (Brad, 2009) it attracts a large amount of commuters travelling by tube or bus. Advertising in the Metro can entice customers to stop on their way and come into our stores. With regards to the London Lite, approximately 2.81 readers read one copy of the evening paper showing that it is distributed thoroughly through inner-city London allowing us to reach a greater proportion of our target market. (Brad, 2009)

The more unconventional methods, such as toilets within shopping centres were chosen due to the high impact figures it generates. With the potential of reaching near 50million individuals, it can provide a great method of exposure (Brad, 2009). Due to the lack of coffee shops within shopping centres, it can provide Café Culture with a great source of exposure.

To ensure the target audience is reached, those situated within the outskirts of London, roadside billboards have been chosen. The aim for using this method is because of the high amount of coverage it can provide.

Testing

Before the campaign potential customers will be targeted to show them snippets of the advertisements to see if they can relate to them, and understanding whether if the campaign went ahead will a great response be generated. The purpose of pre-testing will be to avoid huge spending in the campaign which fails to deliver the intended message.

We shall pre-test our campaign by showing samples of the advertising techniques such as Café Culture's posters, underground advertisements and inserts in the newspapers in focus groups; to see if the target market can relate to it and more importantly if it delivers the message.

Implementation

The campaign will run for duration of twelve months commencing in September. The company has allocated the budget for specific activities in each month as this will result in a more cost effective campaign.

All the different forms of advertising will be running in the first month of the campaign. The launch period of the campaign is very crucial in terms of building awareness so the type of medium chosen needs to be effective. Therefore adverts need to provide the exposure frequently so the message can travel to the target audience, and subsequently build the awareness of Cafe Culture.

Cafe Culture is targeted to those customers who rely on coffee to get through their hectic lifestyle. Therefore December can be seen as a hectic month for many, so advertising during this month can be beneficial. The cold weather in December will increase sales of hot drinks as customers perceive it as a good solution to warm up.

The significance of advertising in February is due to the popular event Chinese New Year, which in turn complements the brand.Therefore a proportion of the allocated budget will be devoted to February. During this month promotions will be running on food and drinks, which hopefully would encourage loyalty with the Oriental community.

In January, April and May there will be little investment placed in advertising. Therefore this period direct mail and sales promotion will be used to generate immediate sales. The reason behind this decision is not down to saving money alone, but the notion that campaigns are more successful when they do not run for the whole duration but selected months. As each time the message is received buyers give it less and less attention, This is called Ad wear out' (Pickton D, Broderick, 2005, p89)

Finally, June to August will be the summer period. Investment will relatively be high in advertising during these times. Summer time has the potential for a lot of drinks to be sold; this will give Café Culture the opportunity to place emphasis on the Bubble Tea. Making consumers aware by promotions will hopefully encourage trial and eventually loyalty. Moreover, June is going to be an important month for the campaign. It is coming to the end of the campaign so customers need to be informed and reminded that Cafe Culture is a good quality coffee house, and willing to meet customers' high expectation.

Co-ordination and integration

Advertising is least effective when working in isolation from the other forms of communication (Yeshin, 2006). Thus, the company has chosen to integrate advertising with direct mail and sales promotion to increase the communication to the target market.

Most of the budget has been allocated to advertising, as it can reach large selected audiences.

Direct marketing will be done through handing out leaflets; this activity will increase the repetition of the message being seen and heard by the target audience. This will help to contribute to building awareness amongst the target market.

In addition, sales promotion will be used after direct marketing. Sales promotion will help to trigger short term sales and encourage trial from new customers. Coupons and reward cards will be given to customers to encourage both existing and potential customers to come into the Café regularly. With a reward card, customers will receive a stamp on each purchase and when 5 stamps have been collected, customers will be eligible for a free beverage of their choice. The reward card will enable Café Culture to build relationships with customers thus; trust and acceptance will be generated which can increase customer retention.

Monitoring and evaluation

One objective is to raise awareness in 4 months. To see if the objective has been met primary research will be conducted. Therefore the market will be asked if they have been aware or affected by the campaign. This is commonly known as recall, and will determine the success of the outcome.

A method of spontaneous vs. prompted will also be adopted, where the coffee market are asked questions about the adverts of brands. The respondents that remember the advert without needing to be prompted are seen as a more reliable source of data.

When a high quality oriental cafe is acknowledged, Café Culture aims for their brand image to come to one's mind. This idea is centred on the salience concept and will be used to measure the awareness of the campaign. In addition recognition will be used to measure the campaign's penetration, as it provides more depth than recall therefore giving a wider picture. In addition questionnaires will be left in all the cafes, asking customers to evaluate the service and their satisfaction they have received in the first 6 months.

An easy yet effective way to count the response rates of the campaign is to count all the coupons that are returned. These will be handed out outside the café, the targeted train stations and there will be cut outs from the newspaper.

To measure the return on investment consumer panel data will be orchestrated. The data will provide purchase frequency and trends in purchasing patterns.

Another objective is to obtain loyal customers. Schemes such as loyalty cards will enable customers purchase patterns to be measured. This will be very beneficial for future campaigns as Café Culture can anticipate when sales are expected to be low. Meaning more of the budget can be allocated to these times.

References

Online

  • BRAD (2009) 'Metro - London', BRAD [Online]. Available at: http://www.bradinsight.com [Accessed: 2nd March 2009)
  • BRAD (2009) 'London Lite', BRAD [Online]. Available at: http://www.bradinsight.com[Accessed: 2nd March 2009)
  • BRAD (2009) 'AD Media Limited - Washroom Advertising'. BRAD [Online]. Available at http://www.bradinsight.com
  • Bus advertising [http://www.cbsoutdoor.co.uk/upload/64172_672_1167230111993-You_can%27t_miss_a_bus_-_consumers_attitudes_to_bus_advertising.pdf] [Accessed: 27th February 2009]
  • Bus advertising [http://www.cbsoutdoor.co.uk/web/UK-markets/South-East.htm] [Accessed: 27th February 2009]
  • D. Pickton and A. Broderick (2005) Integrated Marketing Communications Second Edition, Harlow: Pearson Education Limited
  • Mintel (February 2009), Coffee Shops - UK, Mintel Group, [http://academic.mintel.com/sinatra/oxygen_academic//display/&id=394680#hit1], Accessed: 20th February 2009
  • Mintel (January 2007), Coffee - UK, Mintel Group, [http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=227663], Accessed: 20th February 2009
  • Mintel (May 2007), Chinese Foods - UK, Mintel Group, [http://academic.mintel.com/sinatra/oxygen_academic//display/&id=220136/display/id=278479], Accessed: 21st February 2009

Budget Setting

  • www.admedialtd.co.uk [Online], Accessed: 10th March 2009
  • www.cbsoutdoor.co.uk [Online], Accessed: 10th March 2009
  • www.clearchannel.co.uk [Online], Accessed: 10th March 2009
  • www.solopress.com [Online], Accessed: 10th March 2009

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