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Dutch Bros Marketing Project

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by

Hannah Lee

on 21 April 2015

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Transcript of Dutch Bros Marketing Project

Dutch Bros.
Drive-Thru Coffee Chain
Dutch Bros
Dutch Bros is a coffee company based purely around convenience and satisfying the costumer in the most efficient and friendly manner. It is the fastest growing chain company and is extremely popular among the youth community. Dutch Bros is also an active community member and donates countless hours and money to charities.
To make Dutch Bros Coffee more competitive and more profitable within their community, we are proposing the addition of a food menu that would include three fast and convenient to-go options
Buyer Profile:
Industry Trends:
Competition:
Strengths & Weaknesses
Planning Assumptions
Ages from 12-25 years old
Preteens, teens, early adults
Usually students buying coffee before school
No specific race or societal boundaries
Wide range of demographics
We have noticed trends:
1. Sales increase with the addition of a new location
2. The release of a new item, coupons, or deals
3. The release of limited addition holiday items (peppermint mocha, eggnog latte, etc)
4. Increase when school begins, decrease when summer break starts
The overall coffee market does not fluctuate much, other than minor changes in seasons
*Based on the Litchfield and Indian School location
Within a mile radius of the Dutch Bros there are three major companies that propose a potential threat:
Starbucks
Ground Control
Sugar N Spice
All of the listed companies offer full food and drink menus
Strengths:
Quick and efficient
Large drink selection
Extensive social media
Weakness:
No sit down option
No food menu
Only Western region
Target demographic
Same level of business/functionality
Remain a drive-thru business
SMART Goals
Target Market
We are not trying to attract a new audience, we are trying to cater the current demographic more
Fruit and yogurt parfaits
Fresh fruit cups to-go
Trail mix
New Products
Distribution and Sale
All items will be delivered to the stores through FedEx to the stores and will be sold from open to close, for Dutch Bros those hours are typically 5AM-11PM
They will be offered on both the walk-up and drive-thru menus
Promotions
The majority of advertising will be handled through social media (Facebook and Twitter)
Example: #DutchMunchies
Incentives to order the food items
Parfait Budget
8 oz of YoplaitPro Yogurt: $0.70
4 oz of Frozen Strawberries: $0.40
2 oz of Parfait Granola: $0.60
Cup, 12-14 oz: $0.10
Lid, dome with hole: $0.10
Total: $1.90
SRP: $4.50
*Purchased directly from Yoplait premade
Fruit Cup Budget:
60z premade fruit cups: $1.25
SRP: $3.50
Purchased in bulk with in season fruit from Ready Pac
Trail Mix Budget:
3.2 oz bags: $2.08
SRP: $4.00
Purchased from Motivators.com with personalized Dutch Bros logo
Overall Budget
Ordering 500 of each food item
Total: $1,040
Shipping through FedEx
Total:$273.90

Overall total for initial purchase: $1,313.90
Evaluation
A year long trial period with an expected 4% sales increase within the year.
A 1% increase will be expected every quarter.

If sales are met or exceeded it will be permanently added to the menu and implemented throughout the company
If not met market research will be conducted and the issues will be met and the project will be reevaluated to met the wants/needs of consumer
Specific
: proposing three new food items to the Dutch Bros. menu-parfaits, trail mix & fruit cups
Measurable
: will be measured over a year
Attainable:
it is reasonable to be met
Reasonable:
it can be assumed that the new products will be bought
Timely:
it can be assumed that the goals will be met by the years
Full transcript