BKF CONSULTING:BRANT BUMGARNER, KAITLYN OBEREMBT, FRANCESCA SKWARK

BACKGROUND

• Long standing Ames relationship since 1992

• Roasting of Burgie’s exclusive coffee beans• Three locations in Ames–University Drive–Mary Greeley Medical Center– Airport Road: BKF consultant’s focus

• Two locations attached to convenience stores =entrepreneurial business

PURPOSE

To improve the visibility of Burgie’s location on

Airport RoadTo expand the target market through

implementingnew signage and promotional strategies END GOAL: To increase profits for the

business

ACTION PLAN

BKF suggests the following implementations for Burgie’s Coffee

and Tea Company:

1. Create direct-mail marketing 2. Distribute free coffee samples3. Increase visible signage

SITUATION ANALYSIS

The Ames community is expanding therefore it is important

for Burgie’s to grow with their target market.• 43,787 residents in Ames over the age of 18 (Ames

Economic Development Commission, 2007, section “Demographics”)

• 37% of Americans ages 18-24 drink coffee every day (Chain Leader Coffee Trends, 2007, section “Coffee Consumption by Age”, para. 1)

Figure 1: Caffeine consumption from coffee, tea, mate and cocoa Source: Fredholm, B. et al., “Did you know?”

SITUATION ANALYSIS, cont.

Burgie’s must take into consideration how much

consumers are willing to pay for coffee products.

$57,168 is the average income in Ames, Iowa

(United States Census Bureau, 2007, section “Ames city, Iowa, Income”)

Figure 2: Population Division Source: United States Census Bureau, “Ames city, Iowa, Income”

DIRECT-MAIL MARKETING

By sending out direct-mail postcards, the company will be able

to bring attention to their brand by:• Consumer awareness• Customer loyalty

The direct-mail postcards will need to feature aspects such as:• Brand name• Featured product• Attractive design• Promotion

DIRECT-MAIL MARKETING, cont.

Printing facility for postcards which provides the tools

necessary for direct-mail marketing iswww.vistaprint.com

Prices for the postcard, addresses and mailing fee, mailing list,

and postage for 2000 cards are as follows:• Postcards: $231.98• Addresses and mailing fee: $149.99• Mailing list: $240.00• Postage: $480.00

(VistaPrint, section “Postcard Marketing”)

TOTAL COST:$1,101.97

CONSUMER SAMPLING

Distributing coffee samples in select locations around Ames will give the

target market the opportunity to test the product at their ownconvenience.

Value = BENEFITS/COST

Free samples will aid in the advertising of Burgie’s brand to the general

public through these strategies.• Choose a prime location in the Ames area to hand out the free coffee• Give away coupons for a future purchase of the product

SIGNAGE

Signage will bring more emphasis and meaning to the entire brand

image of the café.

Important elements needed for effective signage:• Visibility: “it must be capable of being seen, and once seen, it

must be capable of being understood” (The Signage Foundation for Communication Excellence, Inc., section “Visibility and Traffic Safety Considerations Concerning On-Premise Signage”, para.1)

• Recognition: “develop top of the mind awareness… [when thinking of a brand] what first comes to mind” (The Signage Foundation for Communication Excellence, Inc., section “Top of the Mind Awareness in a Consumer-Oriented Society”, para.1)

Placement of signs near the intersection of Duff and Airport Road and

off of Highway 30

SIGNAGE, cont.

Materials, finishes, graphics, and logo all impact the visibility of a

good sign.

Chase signs is the contracting company who currently works with

the business and quoted the following prices:• Alumacorr highway sign, size: 4’ x 6’, price: $462.72 each • Alumacorr on-premise sign, size: 2.5’ x 5’, price: $164.60 each

Visible SignageBoost Traffic FlowWiden Customer BaseIncrease Profits

(Personal Communication, March 12, 2009)

RECOMMENDATIONS

BKF Consulting recommends the following three strategies forimproving Burgie’s brand and increasing profit potential:

• Direct-mail marketing• Free coffee sampling• New signage

The impact of this synthesis will have far greater rewards for thebusiness rather than using just one of these tactics on it’s own.

After combining effective marketing applications, Burgie’s will be

able to become a benchmark and enhance its market potential.

REFERENCES

Ames Economic Development Commission. (2007). Ames Population 2007. Retrieved March 20, 2009, from http://www.amesedc.com/en/quick_referenceames_profile/demographics/

Byron, E. (2006, May 12). Will Audience Stomach Coffee Pitch?; P&G Targets Consumers Who Need but Don’t Want, A Gentler Caffeine Fix. The Wall Street

Journal, pp. A17. Retrieved March 29, 2009, from http://proquest.umi.com.proxy.lib.iastate.edu:2048/pqdweb?index Chain Leader Coffee Trends. (2007). Coffee Consumption by Age. Retrieved March 30, 2009, from

http://www.chainleader.com/coffee-trends/article/CA6524742.html Fredholm, B. et al. (1999). Actions of caffeine in the brain with special reference to factors that contribute to its widespread use. Pharmacological Reviews, 51,

83-133. Retrieved March 30, 2009, from http://faculty.washington.edu/chudler/caff.html Holloway, A. (2006). Try it!, You’ll like it! [Electronic Version], Profit, 25 (5), 65. Retrieved March 29, 2009, from

http://proquest.umi.com.proxy.lib.iastate.edu:2048/pqdweb?index The Signage Foundation for Communication Excellence, Inc. The economic context of on-

premise business signs and how to establish value in the marketplace. Retrieved March 31, 2009, from www.signagefoundation.org/downloads/economic.pdf

U.S. Census Bureau. (2007). 2005-2007 American Community Survey 3-Year Estimates. Retrieved March 20, 2009, from http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=16000US1901855&-qr_name=ACS_2007_3YR_G00_S1901&-ds_name=ACS_2007_3YR_G00_

VistaPrint. Postcard Marketing. Retrieved March 30, 2009, from http://www.vistaprint.com/postcard-mailing.aspx?

xnav=TsrItem&xnid=aLMPostcardMarketingName0Marketing+Services&dng=Marketing+Services

QUESTIONS?