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1
10 STEP Marketing Plan for Seattle’s Best Coffee
Nicole NguiOctober 2010
2
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
6
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
27
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.
40
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.