Sbc nikki

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10 STEP Marketing Plan for Seattle’s Best Coffee

Nicole NguiOctober 2010

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10 STEPMarketing Plan for Seattle’s Best Coffee

Nicole NguiOctober 2010

5 Steps for Part 1 (PTM and Positioning)

1. SBC PTM “uncommonly smooth taste”

2. Who wants flavorful quality coffee3. Can choose Starbucks, Figaro,

other local coffee shops. 4. GAP5. Market Size

5 Steps for Part 1 (PTM and Positioning)

Imported 1000980

83%

Local205000

17%

Coffee Retail Service Market in the Philippines (in thousands)1

Imported

Local

5 Steps for Part 2(Marketing Mix & Strategy)

6. Product7. Price 8. Promo 9. Place 10. Generic Winning Strategy of Mix

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Positioning to the Primary Target Market

Part 1:Steps 1 to 5

1.My primary target market (PTM) is..

Demographics

15-20 21-25 25-30 30-35 35 & up0

5

10

15

20

25

30

35

40

24.8

34

17.2

12.811.2

Age Group of Coffee Retail Service in the Philippines

PercentageAge Group

Per

cen

tag

e

Demographics

Metro Manila 87%

Outside Metro Manila 13%

Demographic Concentration of Coffee shops in the Philippines

Metro Manila Outside Metro Manila

1.SBC’s primary target market (PTM) are those who go for flavorful coffee

Demographics (21-25, M/F, social class AB, single)

Lifestyle (urban, fast paced, and on the go lifestyles )

Behavior (drinks coffee atleast 2-4 a week)

Demographics

Starbucks 723850

60%Seattles Best Coffee241200

20%

Figaro 180900

15%

Others 60300

5%

Leading Coffee Retail Service Brands in the Philippines (in thousands)

Starbucks

Seattles Best Coffee

Figaro

Others

2. My PTM’s NWE

Targets : 1st, 2nd and 3rd level of Needs

Flavorful Coffee Imported Parking

Wifi A place to Hang out

Other variety of choices Comfort

3a. Direct products that address my PTM’s NWE

Starbucks 723850

60%Seattles Best Coffee241200

20%

Figaro 180900

15%

Others 60300

5%

Leading Coffee Retail Service Brands in the Philippines (in thousands)

Starbucks

Seattles Best Coffee

Figaro

Others

3a. Indirect products that address my PTM’s NEW

SHAKES (Big Chill)Yogurt Place (Red Mango)

Bars and Resto Any place that sells drinks and food

3a. SBC has many formidable competitors

Direct: Starbucks, Figaro, Coffee Bean and Tea Leaf,

Indirect: non – coffee place that serves other beverages

Variables: Age, Price, Place, Preference, What mood PTM is in.

SBC’s unique positioning is shown in this competitive map

Positioning vs. Brand Matrix

4. Identify the gap between customers and competition

Where is the marketing opportunity?

What NWEs are not being addressed?

What can be the unique selling proposition for the new product (totally new or repositioned.)

Strengths

Quality Beans SBC prides itself on the quality of their

beans. Based from independent testing, their beans are neither too bitter nor too bland compared to the beans of Starbucks which are bitter. But then again, it usually comes down to the taste preference of customers if they prefer bitter coffee.

Strengths

Research and Development Department SBC has its own Research and Development

Department that continuously improve the quality of its products.

Strengths

Free to adapt products SBC international Starbucks Corporation acquired Seattle’s

Coffee, the mother company of SBC. Despite that, SBC in the Philippines is not affected since it belongs to the SBC International which is given the freedom to adapt to the market they are in. And as such, SBC in the Philippines have the option to introduce products carrying SBC brand name made specifically for the Filipino market only.

Strengths

Faster implementation and decision making Since SBC is smaller than Starbucks and only

operates 19 branches, it has the advantage of being more flexible and implementing decisions faster. With this, they are able to introduce products and coordinate actions and activities a lot faster.

Weaknesses

Lesser branches compared to Starbucks Since SBC has only 19 branches compared to

Starbucks, it is not as visible as Starbucks. Due to limited outlets some of SBC customers have trouble finding them.

Weaknesses

2nd only to Starbucks Competing with the industry giant is difficult since it

has more than half of whole market share. SBC doesn’t get the same recognition as Starbucks Filipino mentality of being very brand conscious also

contributes to the weakness of the brand since some customers would perceive SBC only as second best.

Weaknesses

Reading materials Reading materials are value added services of

coffee shops. It used to be that SBC tried to increase this by subscribing to FHM and other worthwhile reading materials. However, SBC soon faced the problem of its magazines being stolen just after a day or two. This resulted to SBC not subscribing/providing their outlets with such reading materials. Although they still provide customers with a copy of leading newspapers such as Philippine Daily Inquirer, Star, and Manila Bulletin everyday.

Weaknesses

Music Music forms part of the overall experience of

customers in a coffee place. SBC clearly realized this and so it provided each outlet with a 6-CD Player Component with each CD having different set of songs. However, problem arises when these CD players malfunction and ends up playing a certain CD only. And when this happens, a customer who has been in the coffee shop for more than an hour would probably hear the same songs being played over and over again which would contribute to a decrease in overall experience in such coffee shop.

5a. Based on NSO Statistics

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The Marketing Mix Strategy

Part 2:Steps 6 to 10

6a. Photo of product category

Leading Coffee Brands

Starbucks 723850

60%Seattles Best Coffee241200

20%

Figaro 180900

15%

Others 60300

5%

Leading Coffee Retail Service Brands in the Philippines (in thousands)

Starbucks

Seattles Best Coffee

Figaro

Others

7. Price

8a. Promo

8a. Promo

8b. Competitor promo

9. Place

10. What is the generic winning strategy?

Which of the 4 strategies are being used? (bold and underline to most dominant strategy)

Competitive Strategies

Putting up near a Starbucks location location, visibility, and a good concentration of A, B, and

Upper C market is important. one of their strategies is to put up a SBC branch wherever

there is a Starbucks located in the area. This means that there is a market for coffee drinkers in the area. In addition, SBC also hopes to get some of the customers of Starbucks who are not loyal and are just after to get their usual dose of caffeine.

Competitive Strategies

Parking Related to location, is also the convenience of parking. Usually

for some people, the deciding factor on where to hang out is the availability of parking space. This is what SBC banks on. For instance, in SBC Katipunan branch, there is a parking space big enough to accommodate 25-30 cars excluding double parking compared to Starbucks Katipunan that only has 7 parking slots available including double parked cars already. Moreover, there is the inconvenience of moving your car whenever you double park in Starbucks.

Competitive Strategies

Wifi spots & electrical outlets Certain SBC branches have already installed routers for their

area. Eventually SBC plans to Wifi all its branches. This is to accommodate students who usually do their group projects and meetings in the area and also for the working adults who regularly meet their friends or conduct casual meetings over a cup of coffee. SBC was also the first one to provide these value added services before Starbucks. In addition, SBC recognized the need for electrical outlets to be installed in their area for laptop users. Starbucks followed after.

Competitive Strategies

SBC Card Unlike Starbucks whose discount is usually in the form of

coupons for their newly released drinks, SBC has introduced the SBC card where cardholders enjoy 10% discount on every purchase. In addition, SBC card also accumulated points which can be used after reaching a certain amount to buy SBC products.

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SUMMARY

Today, good coffee is fashionable everywhere, but we still believe that our customers prefer Seattle’s Best Coffee because of its Uncommonly Smooth™ taste.