.. . C. Consumer Objectives The Bad Ass Coffee Company Mission Statement is as follows: “The mission of the Bad Ass Coffee Company is to provide the best tasting organic coffee in the universe. To do this, we will sell and roast exclusively organic coffee.
We will support our customers in an effort to spread the word that organic also means satisfying and delicious. And most importantly to remember why we started this company in the first place. To put our coffee knowledge to good use, to live in harmony with the planet, and to have fun doing it.” We want our company to be perceived as an industry leader with innovative, quality coffee aimed at the serious coffee drinker. The Bad Ass Coffee Company was recently honored and recognized at The Specialty Coffee Association of America seminar as 1996s best coffee of the year. An award which confirms our commitment to quality.
III.) Strategy: How can we get there? A.) Product Strategy We want our consumers to be happy with every bean they see come out of our Bad Ass Coffee Bean bags. To meet our consumers needs, we will be trying a few new ideas. We will be offering our own line of flavored creamers A new and fun bag design is in the process right nowWe will be offering special deals to preferred customers and offering samples of our new line of coffee out this summer. We will be offering these and many more things in the future to attract all different types of coffee drinkers in the United States. Hopefully our new flavors will attract some new customers and our old customers will spice up their coffee with our new flavored creamers for a kick of something new. B.) Pricing Strategy To help our company grow we plan on putting 50% of our gross profit this year back into the company.
We will also spend a little more on advertising this quarter. We will cut back on promotional discounts to no greater than 5% for special show orders, open house orders and seminar orders. This will apply to all employees also. We also plan to stay competitive within the market category for the coffee industry. In different situations depending on the customer, the following would be a possible price concession in the market of our product.
Cash discounts if the product is paid for in specified terms. Quantity discounts for truckload orders. Promotional allowances Salesperson discount Credit towards products Commission C.) Distribution Strategy There are several channels of distribution that can be used. If the buyer meets the Bad Ass Coffee Company standard credits terms , buying minimums, ect. The following flow chart depicts the possible distribution methods available with Bad Ass Coffee Company.
Wholesaling Intermediaries Manufacturer- Independent Retail-Owned Owned Wholesaling Cooperative and Facilities Intermediaries Buying Offices Merchant Agent and Wholesalers Brokers To make distribution possible there are a few things required. Warehouses around the country Truck Docks Appropriate machinery Personnel to run the business These facilities can be located anywhere in the U.S. as long as the right facilities are present and they meet the Bad Ass Coffee standard credit terms and meet the following requirements Represent Bad Ass Coffee Company in a professional manner. That we have large enough facilities to hold our products. Easy access to hold products.
Easy access for our truck to load and unload. That we keep a clean and safe work area. D.)Promotional Strategy Personal selling will be very critical. It is important to develop a customer relationship where a win-win situation can occur creating long-term relationships with you customers. Once the salesperson had identified a qualified prospect, he or she collects all available relevant information and plans an approach- the salespersons initial contact is an invaluable step. A presentation will follow so the client can be familiarized with the product.
The actual moment of truth is the selling aspect of our product which can also be called the closing. The amount to be spent on advertising is at the discretion of the sales people in the field. Cooperative advertising budgets, marketing development funds, ect are all budgeted every year to the sales department, although the ultimate responsibility for advertising decision making often rests with top marketing management, the organization of the advertising function varies among different products in our company. Bad Ass Coffee Company spends approx. $26,000 a year on advertising alone. We spend our money on such things as attending trade shows throughout the U.S. Advertising our product is essential in good yearly sales quotas.
Some of the money is spent on advertising Bad Ass Coffee company in trade flyers, and by advertising products in trade publications to increase buyer awareness around the country. Promotional activities will include offering discounts for trade shows, open houses, and educational seminars across America. Bad Ass Coffee Company also uses independent advertising agencies because they typically are staffed with highly qualified specialists who provide a degree of creativity and objectivity that is different to sustain in corporate advertising departments. E.) Financial Strategy 10% of Bad Ass Coffee Companys budget is allocated to marketing, of that, 10%-30% is spent on advertising alone. My proposition is that 15% will be spent on current advertising methods with the national trade publications.
The remaining 15% will be spent on new advertising for the targeted young customers. I we do not accomplish this plan, Bad Ass Coffee Sales could begin to level off. It is necessary to keep the wheel turning, finding new buyers to replace the ones that no longer exist in our market. My goal of targeting the younger buyer could continue to increase the sales of the Bad Ass Coffee Company. Bibliography www.inc.com/incmagazine/archives/019305.html www.nerdworld.com/user/dstein/nw204.html www.angelfire.com/mn/stenmark/coffee.html www.iluminatus.com/fun/agogo/coffee a gogo.html www.bid.com/bid/cybercafe/occmiss.html www.cappuccino.com www.blackhills.com/-hrtearth/jit.html www.jit.com/coffee.htm.