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Dirt Cowboy Café

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by

Christine Kiernan

on 16 November 2013

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Transcript of Dirt Cowboy Café

Causes:
- Very limited advertising both outside and inside store
- Poor information channels


Results:
- Brand awareness among potential consumers is low
- Customers lack knowledge of product quality & variety


Consumer Profiles
The Problems

Opportunities
- Capture missing segments: new students and visitors
- Expand food selection
- Increase awareness of quality of products
- Increase efficiency of buying process
- Capitalize on socially conscious aspect

- Lack of brand awareness among Visitors/new students
- Existing customers are not aware of the unique nature
Dirt's food products
- Not an extensive selection of food
- Inefficient allocation of retail space

A little dirt on Dirt....
-Founded in 1993 by Tom Guerra
-Occupies a prime plot of Hanover
real estate: on the corner of E. Wheelock
and Main streets
-Sells coffees, espresso drinks, baked goods,
sandwiches, fruit drinks, gelatos, & other
commercial goods.
-Social & study space

Identifying the Problem
1. Hypothesize:
External competition
2. Market Research:
Collect information
a) Surveyed students
b) Spoke to owner
3. Analyze Information:
Reassess the issue

Threats
1. Dirt Cowboy is
missing

out
on
two
key segments:
a) New students
b) Visitors to Hanover, N.H.


Effects of the Problems
Situational Analysis:
SWOT
- Prime location
- Coffee Quality & Variety
Individually brew each cup to order
- Quality of other food products
Homemade baked goods, baguettes, gelato
- Brand loyalty (Local/student customers)
- Customers can give feedback online
- Rewards program
- Environment
- Socially conscious

Strengths
- Lack of brand awareness
among visitors/new students
- Ineffective display of product
offerings
- Existing customers are
unaware of the unique nature of Dirt's food products
- Minimal food selection overall
- Inefficient allocation of retail
space

Weaknesses
Opportunities
Threats
- Starbucks is an
alternative for dissatisfied customers
- DBA/DA$H system
- Rapid business growth
could hurt high quality and service
- Reach the under served market segments of new students and Hanover visitors through increased advertising
- Increase customers' knowledge of breadth of product offerings
- Promote business's commitment to product quality
- Better utilize store layout and optimize product display
Dartmouth Students
Hanover Locals
Hanover Visitors

-Tourists
-Prospective Students
-Parents
-College visitors and recruiters
-Print hard copy of menu for ease of reading
- more information about food quality
-Streamline retail space
- CDs
-Bagged baked goods and treats
-Electronic marketing
- Instagram, Facebook
Recommendations (Current Customers)
Recommendations (New Customers)
-Inform customers about product differentiation
-Poster, outdoor menu
-Promotions
-Juice tasting
-Deals through hotels and new student packets

Barriers to Implementation
1. Dirt Cowboy is
missing

out
on
two
key segments:
a) New students
b) Visitors to Hanover, N.H.

2. Failure to capitalize on
greater potential sales
Effects of the Problems
CLV
- Not appropriate for us to implement our recommendations
- Business has been successful for 20 years
- Very limited advertising policy
- Seems owner has future plans in line with our recommendations
- Change store layout
- Phase out music
-39.7% of CLV is in first year
-27.6% of CLV is in second year
-67% of CLV is in first two years
-Monthly revenue: $25
-Monthly churn: 2%
-Monthly interest rate: 1%
CLV
-Students generally prefer Dirt Cowboy over Starbucks
-Many students do not begin drinking coffee off campus until after their first year
Full transcript