Plan 1 Marketing Plan Summary Andiamo Cafe is a unique local coffee house that provides a friendly, effective place where everyone can meet. Andiamo Cafe is not your typical coffee shop where people go to meet other people. Andiamo Cafe has a unique service called the structure conversation system that is quite effective for allowing people to meet each other and provide them with valuable insight into the other person through reflective conversation. Andiamo Cafe is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service,Andiamo Cafe will capitalize on its proximity to the University of Sabana campus to build a core group of repeat customers. Andiamo Cafe will offer its customers the best prepared coffee in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit. The company will operate a 2,300 square foot coffee bar within a walking distance from the University of Sabana campus. The owners have secured this location through a three-year lease with an option for extending. The have also provided $140,000 of the required $170,000 start-up funds. The remaining capital will be obtained through Bank Bancolombia commercial loans. THE BUSINESS BUSINESS MANAGEMENT Andiamo Cafe is currently a sole proprietorship owned by Mao Mancini. Business overview Mao Mancini, owner of Andiamo Cafe is experienced Café owner/manager having successfully operated a number of cafes in Colombia and overseas. Mao is a qualified chef and has previously worked for the Hilton and the Accor groups before owning his own café. Mao will work full-time in the business, retain two key staff from the previous owner to maintain the continuity of relationships with customers during the transition, and will employ an additional four staff. Two of those staff will work on a part-time basis. Andiamo Cafe expects to catch the interest of a regular loyal customer base with its variety of coffee and pastry products while offering a relaxing and unpretentious atmosphere. The Company plans to build a strong market position in the community, by choosing the proper location and offering a new age, organic, fair-trade, local hang out. The café will offer freshly prepared bakery and pastry products at all times. Six to eight moderate batches of cupcakes and pastry products will be delivered during the day to ensure that fresh baked goods are always available. The Company will look to source their products from local merchants. One such merchant will be Nicolukas , which has been in business for a year and is growing, making this bakery a great choice for Andiamo Cafe. LOCATION AND FACILITIES OF THE BUSINESS Calle 125 No. 19-30 Santa Barbara Bogota- Colombia PRODUCTS AND SERVICES 1. Breakfast Menu 2. Lunch Menu 3. Coffee/ Beverage/ Tea 4. Bakery Goods • Andiamo Cafe offers a range of coffee, all from high-quality organic coffee from a local fair trade certified company • There will also be a variety of juices, beverage, teas and water. • Andiamo Cafe will provide fresh cupcakes and coffee cakes from a local bakery Nicolukas • Nicolukas is a local bakery offering baked sweets utilizing local products. Four to six moderate cupcakes and coffee cakes will be delivered during the day to assure fresh baked goods are always available. The main activity of the company is the operation of the Andiamo Café. Business activities include purchasing, storing, preparing, selling and serving our products to our valued customers. We expect to serve over 6,000 customers (‘dine in’ and ‘take away’) per month. Andiamo Café is open from 8:00am to 5:00pm Monday to Saturday and from 8:00am until midday on Sunday. The café comfortably seats 80 persons. • Our main point of differentiation from other cafes and coffee shops in the city is that one of the business owners is an internationally trained chef who will be able to produce fresh, light and healthy meals each day as well as develop new menu items to meet the changing needs and tastes of people who care about what they eat. • The high quality coffee will target staff and shoppers in Bogota who enjoy good coffee that simply offers good value for money at highly competitive prices Increase clients in the loyalty club Long-Term Goals • Create a model that is franchise ready • Establish an interest in the franchise model • Open a second location The Company will utilize the following strategies to achieve its short and long-term objectives • Will host seminar nights at café • Explore different coffees around the world and introduce the best to the café • Offer customers exotic coffee you can’t get anywhere else • Work hard and remain dedicated, confident and open-minded • Partner with other businesses with the intention of creating a community vibe • Have different vendors bring product samples to find the right products to be successful. THE FUTURE VISION AND MISION Vision: The company’s vision is ‘to be the Café of preference for Bogota customers. Mission: The mission of the business is to satisfy customers’ needs and wants for high quality coffee, delicious nutritious meals and excellent service. BUSINESS GOALS Immediate Goals • Ensure that people in the community feel at home in the café • Educate customers about what products the café stocks • Have employees hired and trained (looking to recruit from the elderly community) • Be making a profit • • Short-Term Goal • Increase advertising of fair-trade and organic beverages THE MARKET There is substantial population growth in the area as residential development continues and commercial development commences. The master planned community attracts a high socio-economic demographic with high employment and higher than average per capita income. Andiamo Café customers are the passing shoppers of all ages who enjoy a fine coffee (dine-in, or take away) and a healthy, value-for-money meal. The majority of the general public in the city are families, students and office workers. The cafe will make it particularly easy for a young family to enjoy a meal by providing a range of children’s meals and activities. Our take away beverages will also appeal to this group and the segments made up largely of singles between the ages of 18 – 40 who shop or work within the town. The majority of customers who purchase coffee from Andiamo Café are students and office workers ‘social drinkers’, followed by customers who want their daily fix or a pick me up. They are wanting a convenient, friendly and relaxing environment to ‘recharge their batteries’ or socialise over a fine coffee, choice of beverages and quality fresh, light and healthy meals that provide an alternative to fast food options. The market need being satisfied is based on convenience, quality and value for the coffee drinkers as well the health conscious consumer who is concerned about what they eat. Marketing Objectives There are three key marketing objectives: To achieve sales of $536,650 for the first year and $580,000 for the second year. To achieve estimated 40% market share next 12 months. To position the business as a convenient place to eat light and healthy meals To be reviewed in 6 months. The objectives of the company are to: • Maintain market share through the change of ownership then grow market share to 40%, and generate a before tax net margin of 20%. The business will achieve these objectives by: • Retaining two key staff members of Andiamo Café to maintain continuity of customer relationships during the changeover • upgrading signage to be more visually appealing • maintaining the existing price levels and controlling costs • undertaking more aggressive marketing and promotion. • Offer gluten-free products • Will bring in different and unique coffee Andiamo main competitive edge is the relatively low level of competition in the local area in this particular niche. • This community has a population of 8.000.000 residences as per the City of Bogota. There are no coffee shops in the neighborhood except for Oma. The residences of the area have three choices at this time: a drive through Oma approximately 650 meters from Andiamo Cafe that is operating out of Valdez Cafe, a second Oma with the option of sitting down 1.7km, and a third Oma 1.8 km offering full service. • None of these locations allow dogs in their coffee shop with their pet parents, or provide a organic, fair-trade coffees with a gluten free treat. • THE FINANCES Our projected performance is summarised below: Turnover: Year 1 $536,650 Year 2 $580,000 Gross margin $378,690 (71%) Net profit (before tax) of $109,869 in the first year, growing to $131,175 in the second year of operation. The business is cash flow positive from the first month of operation Break-Even is estimated at a monthly sales level of $30,237 Return on Total Assets: 37.3% Return on Equity: 51.2% The purchase price of the business is $170,000. Total start-up cost has been calculated at $209,810 and is to be funded by way of a $104,905 bank loan and equity injection of $104,905 from Mao. It is proposed that the loan be paid back over a two year period from cash flow.. Part 2 Social Media Strategy The real power of social media is that it allows companies to possibly develop new products, and new revenue streams, by observing how customers interact with their product(s) and listening to their feedback, all to a degree that was previously unimaginable. It can also provide new avenues for bi-directional communication and deeper interaction with customers, fostering a closer relationship. An additional benefit is that agile companies can use all of these elements to more easily reposition a brand as a commercial environment changes. Social media is a place where a company can express its personality and relate to its consumers. Companies can use Facebook and Instagram to be witty and approachable. The main point of the strategy is to make sure that Andiamo Cafe is using its own voice and that it finds the voice of its users to communicate with them effectively and deliver its message. Facebook Interestingly, the Andiamo Cafe social media management team doesn’t post Facebook updates all that often. The posts strike a good balance between fun contests, helpful tips, and subtle sales messages to its customers. Twitter The team does post unique content but also uses the Twitter as a service to reach out to customers talking about their in-store or product experiences. Pinterest and Instagram A big part of the coffee culture is about beautifully decorated espressos and fancy cups to drink. Andiamo Cafe really shines on visually-oriented social sites like Pinterest and Instagram where they can post appealing beverage-related eye candy. The company maintains several Pinboards featuring tea rituals, coffee gadgets, and soothing spaces to get cozy in while you sip. Instagram, on the other hand, is an assortment of cool images related to the coffee community and culture. Marketing Expense Budget 2018 2019 2020 Advertising $4,800 $2,400 $2,400 Strategic relationships $2,000 $1,200 $1,200 Other $2,400 $1,200 $1,200 ------------ ------------ ------------ Total Sales and Marketing Expenses $9,200 $4,800 $4,800 Percent of Sales 5.23% 1.07% 0.97% Monitoring / Measurement Activities Activities Timeline Responsible Promotional campaigns and activity. Mao Mancini/ Antony Cho Marketing Plan completion June 2018 Mao Mancini/ Antony Cho Weekly magazine advertising Wednesday weekly; for following week Antony Cho Monthly direct mail (DM) 1st Monday of each month Antony Cho DM campaign 1 1/07/2018 Antony Cho DM campaign 2 2/02/2019 Antony Cho Website maintenance Daily Antony Cho Website content update in line with current campaigns and offering Daily Antony Cho Facebook campaign 1 1/07/2018 Antony Cho Facebook campaign 2 2/02/2019 Antony Cho Milestones Advertising Start Date End Date Budget Manager Department Marketing plan completion 1/1/2018 2/1/2018 $0 Mao Owner Advertising 1/1/2018 1/1/2019 $9,600 Mao Owner Strategic relationships 1/1/2018 1/1/2019 $4,400 Mao Owner Grassroots promotion 1/1/2018 1/1/2019 $4,800 Mao Owner Marketing Agency 1/1/2020 1/15/2020 $3.000 Antony Manager Social Media 1/1/2020 1/15/2020 $4,000 Antony Manager Total Advertising Budget $25,800 [Your Name] [Your Title] [Business Name] [Main Business Address] ABN: [ABN] ACN: [ACN] Andiamo Cafe Social Media Plan Prepared: [Date prepared] Table of Contents 1. Conduct your analysis 3 Social media tools analysis 3 Business analysis 3 Online customer analysis 3 Competitor analysis 4 Risk management 4 2. Develop your social media strategy 5 Vision & goals 5 Your market 5 Social media strategy 5 3. Establish the rules 6 Social media content policy 6 Social media content procedures 6 Customer privacy strategy 6 Security strategy & procedures 6 Acceptable use policies 6 4. Create your social media team 7 Roles & responsibilities 7 Key personnel training 7 5. Get Started 8 Action plan 8 6. Monitoring/measurement activities 8 Social media budget [YEAR] 9 Supporting documentation 10 Glossary 11 1. Conduct your analysis Social media tools analysis [For each tool, include the purpose or a general description and any opportunities or limitations.] Social media tool/website Purpose/description Opportunities Limitations [List each social media tool that you intend to analyse.] [What is the purpose of this social media tool or website? How do your customers use it?] [Outline the specific areas of each tool that you think your business will use and how.] [Are there any rules or functionality that limit your ability to use the tool? E.g. strict terms & conditions. If needed, you may like to include a link to each tool's terms and conditions.] Business analysis [Is social media suited to your business? Are your customers or potential customers likely to use social media? Do you have adequate skills or resources to launch an online social media presence? Also, for each social media tool list the main business goals, suitability to your business and the skills & resources needed to use the tool in the table below.] Social media tool/website Business goals Suitability Skills/resources needed [List each social media tool that you think you will potentially use.] [Which business goals/objectives does this social media tool align with or help achieve?] [Rank the tools according to how suitable the tool is to your goal(s).] [List any specific skills/resources that are needed to utilise this tool.] Online customer analysis [For each social media tool, include details of your customers and their online usage.] Social media tool/website Customer demographics Volume of customers Details of use [List each social media tool these customers use.] [Analyse your online customer base. You can include age, gender, social status, education and attitudes.] [Estimate the number or percentage of your overall customers using social media.] [Include frequency of use, purpose, and interaction quality (high, medium or low interaction).] Competitor analysis [For each social media tool, list your main competitors and details of their online presence.] Social media tool/website Competitor Online Market share (%) Strengths Weaknesses [List each social media tool/website you intend to use.] [Competitor names.] [Enter an estimate of your competitor's percentage of market share for this tool/social media site. Alternatively, you can include the number of followers.] [What are your competitor's main social media strengths?] [What are your competitor's main social media weaknesses?] Risk management [List the potential risks of social media to your business (in order of likelihood) and any mitigation/contingency strategies.] Business risk Impact Likelihood Mitigation strategy Contingency plan [Description of the risk and the potential impact to your business. E.g. risk of exposing sensitive information] [High, Medium, Low.] [Highly Unlikely, Unlikely, Likely, Highly Likely.] [What actions will you take to minimise/mitigate the potential risk to your business?] [What is your contingency plan in the event that this risk happens?] 2. Develop your social media strategy Vision & goals Vision statement [Include your vision statement from your business/marketing plan. The vision statement briefly outlines your future plan for the business. It should state clearly what your overall goals for the business are.] Goals/objectives [Include your short and long term goals from your business/marketing plan. What activities will you undertake to meet them?] Your market Target market [Who are you targeting through your social media tools/websites? What percentage of your overall target market will be using social media?] Communication/engagement strategy [How will you communicate or engage with your target market? How often? How will you establish and maintain this interaction?] Social media tool/site Customers/users Communication strategy Frequency Person/Team responsible [List each social media tool/site you will be using.] [Include a brief description of the users you will be targeting for each social media tool.] [How will you engage/communicate with these customers? What strategies will you use to establish and maintain this interaction? E.g. giveaways, promotions or exclusive deals.] [E.g. Daily, twice-weekly, or weekly.] [E.g. Social media team] Social media strategy [How do you plan to enter the market? What activities will you complete to develop your brand or build awareness? What do you want to achieve?] Activity/milestone Person responsible Date of expected completion Cost ($) Key Performance Indicators (KPIs) Business goals [e.g. increase website traffic, search engine optimisation, networking, recruitment, paid advertising, in-app advertising, reciprocal linking, application development.] [Who is responsible for completing this task?] [When do you expect to complete the activity?] [Estimated cost of activity.] [What indicator/ measurement result will need to be met before this activity is considered a success?] [Which business goals/objectives does this activity align with or help achieve?] 3. Establish the rules Social media content policy [Have you established a content management policy based on your business' core values and beliefs? List your main policy details in the table below. Include a reason why they’re important to your business and which social media tools they apply to. You may also like to attach a copy of your full social media policy to the back of this plan.] Policy details Reason Applicable social media tool [You can include what can and cannot be published, tone of voice & language principles, privacy principles, non-disclosure principles and general customer service standards.] [Include a reason why each policy is important to your business.] [E.g. All] Social media content procedures [Does your procedure include an approval process for all content? Have you included a content removal procedure for inappropriate content? Does it cover procedures around accepting friends/followers? You can also attach a copy of your full social media content procedures to the back of this plan.] ¬¬¬¬ Customer privacy strategy [What current privacy strategies or procedures do you have in place to ensure the security of personal information? Have you introduced customer service/privacy standards? Do you follow any particular code of practice?] Security strategy & procedures [What internal authorisation procedures do you have for approval and monitoring of access to your online accounts? How have you protected your data and your network (E.g. virus protection, secure networks & firewalls, secure passwords and data backup procedures)?] Acceptable use policies [Do you have an acceptable use policy for each social media presence? Have you specified what content isn’t acceptable e.g. illegal, explicit, or offensive comments/posts? Have you briefly outlined the procedures for warning users and the subsequent removal of the specified content/user?] 4. Create your social media team Roles & responsibilities Role Details of responsibilities % of time spent on social media Person responsible [E.g. Social media manager] [E.g.  Develop & implement social media strategies  Develop & implement marketing campaigns  Perform regular monitoring & measurement activities  Manage social media team  Networking.] 20% [E.g. J. Smith, Marketing Manager] [E.g. Social media administrator] [E.g.  Monitoring daily and responding to comments/enquiries.  Posting/updating twice weekly  Approving/removing users  Removing inappropriate content  Networking.] 50% [E.g. M. Bloggs] Key personnel training [List your current/future staff in the table below and any training requirements.] Job Title Name Skills or strengths Training requirements [e.g. Marketing/ Sales Manager] [E.g. J. Smith] [Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence 2007.] [Requires training in social media marketing.] 5. Get Started Action plan [Before you get started, list the main actions/milestones you hope to achieve in the first months/year. I.e. Researching your competitors, or completing your social media plan. Then, once you’re more confident in social media, you can include things like website traffic numbers, friend/follower numbers or sales milestones.] Action/Milestone Date of expected completion Person responsible [What are the social media milestones that you need to complete starting from today?] [When do you expect to complete them?] [Who is responsible for delivering this milestone?] 6. Monitoring/measurement activities [How do you measure the impact of your strategy? How has it improved your overall sales/awareness objectives? Is it effective? If not, how can you modify your strategy to get a better result? List the details of each review in the table below.] Social media activity Date of review Monitoring methods Review outcomes [E.g. website traffic, search engine optimisation, networking, recruitment, paid advertising, in-app advertising, reciprocal linking, application development.] [e.g. Month/Year] [What tools did you use to measure/monitor the impact of your social media activities?] [What were the results for the promotional period? Did your activities/milestones achieve your Key Performance Indicators (KPIs)? What were your sales/profit figures? How many new/repeat customers did you receive? How many customers visited your website?] Social media budget [YEAR] [Double-click the table below to enter your details or attach your own budget at the back of this plan.] Supporting documentation Attached is my supporting documentation in relation to this social media plan. The attached documents include:  [List all of your attachments here. These may include resumes, policies, procedures and/or financial documents.]