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Expresso Espresso Case

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Melinda Jones

on 7 December 2013

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Transcript of Expresso Espresso Case


S.W.O.t Analysis
S.W.O.T Analysis
Market Saturation

Differentiate business
Owner not involved in daily activities

House is put up for collateral for business loan

Limited distrubution channels

Target Marketing
Specialty coffee trendy
Coffeehouse business growing rapidly
Culture Phenomenon
College town atmosphere
Hot beverage market in Deep South
Consumers are familiar with Starbucks brands
Starbucks is expanding in area
Least costly to start-up business
Consumers have many choices
Starbucks market power
Four Types of Coffee House
Cafes - $7,650 mill
Roasters - $1,570 mill
Thank You!
A Coffeehouse

Executive Summary
The Specialty coffee industry is exploding with growth in new businesses

Flavor and drink variety

MSA - Mobile, AL 569,524
1.3 units per 10,000 pop

54% of adults drink coffee
18% buy specialty coffee beverages

In MSA of AL -82% of coffee consumers are going to a competitor

Coffee Shop Sales:
48% Espresso-based beverage
32% Drip-brewed beverages
20% Cold & Iced coffee beverages
Marketing efforts are narrow, mostly directed to the University
pop. 13,000

Marketing activities towards a bigger target segment

Diversify shop

Add to product line

returning customers
social/friendly atmosphere
company projects caring image
growth in market
free Wi-Fi
Promotional Mix
Arabica vs. Robusta Coffee Beans
Lack of management & business skills
Owner has limited time to run business
Owner trains staff
Staff works in team environment
Business running for 4 months
Equity loan to finance business
Owner's cost analysis
Finances of organization - net income loss
Consumers purchase decisions
Research results for specialty coffee consumers
working parents with children
South Alabama Campus - older market segment
Advertisement directed to campus
Four controllable decision variables
Getting customers to stay in the door
Decor of coffee shop
Add more outlets for customer's convenience
Charitable contribution cup

Create a Facebook/Web page/Twitter account

Develop a work environment that establishes customer service as a valuable asset

Shift-manager required for each shift

Wall space for local artists

Loyalty Key Card

Start roasting own beans

New dynamics of business

Offer deli sandwiches, hot soups, hot breakfast sandwiches

Full transcript