10 step marketing plan

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10 STEP Marketing Plan for Gourmet’s Coffee

Cathleen Jem CaraigMarch 2012

http://jemcaraig.blogspot.com

This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Disclaimer


1. Businessmen, employees and young professional who needs to boost their energy within work hours

2. Professionals who needs recognition and a sense of belongingness in the workplace and other places. Wants fresh, best quality and the finest service.

3. Gourmet promotes healthy lifestyle for coffee drinkers. Other brands does not have this.

4. Estimated market size is 65 million coffee consumers in the country. 19 million is Gourmet’s market share

Steps 1 to 5

Summary headline of Gourmet PTM and market


6. Gourmet Drip and Grind Coffee that is affordable, boosts energy and fresh and the pioneer of healthy living

7. Gourmet coffee is 55.21% higher than Siete Baracos and 17.72% than BC Coffee

8. Gourmet’s participates in Food Expo events in the World Trade Center & leading supermarkets promotions

9. Gourmet coffee is distributed in the greater Manila area

10. Using niche as an approach to succeed

Steps 6 to 10

Summary headline of the marketing mix & strategy


1. Describe the primary target market (PTM)*

Demographics

21-65 years old, social class A,B and C, single and married

Lifestyle

Working, usually corporate employees, executives, young professionals

Behavior Before going to work, during coffee

breaks, during meetings – drink coffee to boost energyhttp://jemcaraig.blogspot.com

2. Gourmet’s PTM’s NWD

Needs from Maslow’s hierarchyWants determine choiceDemands for them to buy the

product


Describe your PTM needs

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Self-Actualization Needs(Self-

Development & Realization)

Esteem Needs (Recognition,

Status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

I am the boss.

I want to look professional.


2. PTM’s needs, wants & demands

Businessmen/employees need to be recognized and to belong in a corporate setting, or friends and acquaintances

Businessmen/employees choose Gourmet coffee over other brands because of taste, quality, freshly roasted coffee beans, promotes a healthy lifestyle

Businessmen/employees demand affordable, healthy and the quality and taste of coffee


3a. Gourmet’s competitors Direct: Siete Baracos, BC Coffee,

Rocky Mountain, Culinary Exchange, Artisan Conlins, Bon Vivant

Indirect: instant coffees, 3 in 1 coffees, coffee shops

Variables: promotions, packaging, accessibility/availability, price, lifestyle


3b. Create 2 Positioning Maps

1st Map: 2 x 2 Matrix showing the 2 Most Critical Variables for Consumer choice

This 1st Map should allow differentiation/ non-clustering of the direct competitors

Example: Price vs. AgeSize of bubbles= represent relative market

shares of the brands2nd Map: Functional Benefit vs. Brands/ Variants


Price/ Age

Matrix

0-13 yrs 14-24 yrs 25-49 yrs 50yrs up

High price

Low Price

BC

Competitive Position Map of Gourmet coffee

Price vs. Age Matrix as of 2011

Siete Baracos

Siete Baracos

Siete Baracos

BC BC

GourmetGourmet Gourmet


Gourmet benefit position vs brand matrix

Benefit Positioning vs. Brand Matrix

as of 2011

Functional Benefit Gourmet Siete Baracos BC Coffee

Affordable

Availability

Mental Alertness

Stimulates Metabolism

Freshness

Organically grown products

Packaging, one-way valve


4. Gourmet has a strong potential in the market opportunities

Gourmet Coffee- is the pioneer of coffee trading in the

Philippines- promoting “health” and “wellness” for the

consumers- “fresh” and “organically grown” have been the

driving forces behind Gourmet’s success- All roasted coffee beans are packed and

sealed into foil bags with a one-way valve to maintain its optimum amount of freshness.

- Gourmet has a strong belief of the word-of-mouth marketing strategyhttp://jemcaraig.blogspot.com

5. Gourmet’s Claimed Market Share

29.76%

45.24%

25.00%

Gourmet Farms Inc.

Gourmet'sCompetitorsNew Competi-tors

Number of Competitors

2011 = 382012 = 59

35.59% increase


5a. 2007 Gourmet Sales was P45 Million for coffee and teas

Source: http://stella-arnaldo.blogspot.com/2008/05/gourmet-farms-expands-to-cebu.html


http://stella-arnaldo.blogspot.com/2008/05/gourmet-farms-expands-to-cebu.html






5a. 2007 Gourmet Sales was P45 Million for coffee and teas

Source: http://stella-arnaldo.blogspot.com/2008/05/gourmet-farms-expands-to-cebu.html







5b. Estimated Coffee Market Size is 70 Million coffee drinkers

1. Competitor data = 70.24% competitor market share based on previous company data

2. Company data = Average sales: 9-10 million/monthly based on past company sales (29.76% share) = 19 Million

3. Customer Usage data = Estimated 65 million coffee drinkers in the country


6a. Gourmet Products

• Barako Blend• Decafeinated• Hazelnut• Espresso• Premium Blend• Coffee Mountain

Arabica


Supermarkets

6a. Gourmet Products


6a. Show how product looks vs. competition

Direct competitor Indirect

competitor

Gourmet Coffee in the Supermarket


6b. Gourmet Coffee description

Arabica, Robusta, Liberica, and Excelsa - Gourmet‘s uses only the finest coffee beans to create their popular blends. All are freshly ground to ensure nothing but the finest, purest flavors. Enjoy a cup of brewed joy. The finest grade of coffee beans roasted and blended to create that perfect coffee experience. Take pleasure in Gourmet's different blends of freshly roasted whole beans or ground coffee. All roasted coffee beans are packed and sealed into foil bags with a one-way valve to maintain its optimum amount of freshness. Source: http://gourmet.com.ph/http://jemcaraig.blogspot.com

http://gourmet.com.ph/

7. Gourmet Prices

*based on past company data of 2011

BRANDS Unit Price Price Per Kilo

% Difference

Gourmet’s (250g)

162 648

Siete Baracos(200g)

84 418 55.21%

BC Coffee(300g)

165 550 17.72%


8a. Which of these modes does your product use?

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8a. Gourmet Promotions

Major sponsor of the 11th Philippine Food Expo 2012

Part of Shopwise Supermarket and Rustan’s Supermarket promos

Continue participating in events and promotionshttp://jemcaraig.blogspot.com

Flyers

8a. Gourmet Promotions


8b. Competitor promo

Siete Baracos communicate: Through websites like http://loqal.ph

andhttp://shop.philippinecoffeecompany.com

Gourmet Farms Inc. stands out because it has its own website http://www.gourmet.com.ph


http://loqal.ph/

http://shop.philippinecoffeecompany.com/

http://www.gourmet.com.ph/

9. Place

Where is your product available? Gourmet coffees and other Gourmet

products are available in their own store in Silang, Cavite: Refreshers

Rustan’s, Robinson’s and Shopwise Supermarkets

Serving Greater Manila Area and soon to serve Cebu and Mindanao

Method of delivery: 2 days lead time


10. Gourmet’s Strategy

Gourmet’s strategy is to be the leading coffee supplier in the country that promotes “health”

and “wellness” to the consumers

By producing “fresh” and “organically grown” products, it has been the driving forces behind

Gourmet’s continuous success


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SUMMARY


1. Businessmen, employees and young professional who needs to boost their energy within work hours

2. Professionals who needs recognition and a sense of belongingness in the workplace and other places. Wants fresh, best quality and the finest service.

3. Gourmet promotes healthy lifestyle for coffee drinkers. Other brands does not have this.

4. Estimated market size is 65 Million. Gourmet’s Market share is 19 Million

Steps 1 to 5

Summary headline of Gourmet PTM and market


6. Gourmet Drip and Grind Coffee that is affordable, boosts energy and fresh and the pioneer of healthy living

7. Gourmet coffee is 55.21% higher than Siete Baracos and 17.72% than BC Coffee

8. Gourmet’s participates in Food Expo events in the World Trade Center & leading supermarkets promotions

9. Gourmet coffee is distributed in the greater Manila area

10. Using niche as an approach to succeed

Steps 6 to 10

Summary headline of the marketing mix & strategy


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10 STEP Marketing Plan for Gourmet’s Coffee

Cathleen Jem CaraigMarch 2012


10 step marketing plan

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