A2 by alexabbott14

Intelligentsia Marketing Plan Marketing Plan: (Class Group Project) -

Company: Intelligentsia Coffee, a real client Project Goals: Increase foot traffic into Intelligentsia Coffee Shops; increase the sales of Intelligentsia Coffee products. - New Target Consumer Demographics: College Students 18-25 My Responsibilities and Contributions as Team Lead: -

Kept my team up to date with various deadlines which needed to be met each week. Established open lines of communication through group emails and texts. Also, we had group meetings during class. Development of survey through Survey Monkey Developed the design, concept and over all feel of the marketing plan. Put together the final marketing plan and presentation. Research Report & 4pâ&#x20AC;&#x2122;s analysis Price Range analysis (pg.5) Place/ Location analysis (pg.6-7) S.W.O.T analysis (pg.8-9) P.E.S.T analysis (pg.10-11) Industry & Category trend (pg.11-13) Competition (competitive analysis) & competitive Mapping (pg.13-20) Target Audience & Consumer behavior Analysis (pg.21-24) New Features on App (pg.24) Brand Development Strategy (pg.26) Brand Positing/Sales Strategy/Communication Strategy & Message (pg. 27) Media Strategy (Creative Strategy) (pg.28-30) Schedule/timeline & Budget (pg.31-36) ROI Analysis (pg.36) Appendix/Personal Interviews (pg.37-45) References (pg.37)

MARKETING PLAN TEAM #2

Alex Abbott, Eddie Shilaita, Tamara Jumena, Brand Engle

TABLE OF CONTENTS HISTORY OF INTELLING ENSIA -

PG. (1-3)

Business Problem Marketing Challenge Short/ long term goals

REASEARCH REPORT & 4Pâ&#x20AC;&#x2122;S PG. (3-20) Mission & Vision Statement Current Product offerings Price Range Place/Location Promotion/ Bran Presences SWOT PEST Industry & Category Trends Competition ( competitive analysis) & Competitive Map TARGET AUDIENCE & CONSUMER BEHAVIOR ANALYSIS PG. (21-25) Interviews & Interview Insights Survey & Survey Insights Coffee Purchase Behavior Personas Intelligentsia App BRAND DEVELOPMENT ST RATEGY Mood Board Brand Position

PG. (26-27)

SALES STRATEGY PG. (27) Pricing Sales Promotion COMMUNICATION STRATE GY/MESSAGE

PG. (27)

MEDIA STRATEGY PG. (28-36) Creative Strategy Schedule/Timeline Budget ROI Analysis CONCLUSION & REFERENCES PAGE

PG. (37)

APPENDIX: FULL INTERVIEWS (AND SURVEYS)

PG. (38-45)

HISTORY OF INTELLIGENTSIA

In 1995 Doug Zell and Emily Mange opened an in store coffee roaster and retailer in Chicago on Broadway on the north side of Chicago. Since Intelligentsia has many locations in Chicago, Los Angeles and New York. What is interesting about Intelligentsia’s buying team is they cumulatively spend over 365 days each year at source. Intelligentsia works alongside their grower’s to develop their coffee. Their coffees are unlike any others, and they are exclusive to Intelligentsia. Intelligentsia take insights, practices and expertise in preparation and processing garnered from their work around the globe and apply them to each of their Direct Trade coffees to make them the absolute best they can be. They also want their growers to prosper, so they pay them above the standard fair trade commission.

BUSINESS PROBLEM -

Intelligentsia is already competing in an oversaturated coffee market with major cooperate chains such as Starbucks and Dunkin Donuts. There also has been an influx of new niche coffee café’s opening through the United States.

MARKETING CHALLENGE

Intelligentsia is staying on the same route while other coffee shops are creating more fun and unique experiences. Gaslight Coffee has the same culture as Intelligentsia and offers a wide variety of accompanying food that compliments the taste of the coffee. Both Intelligentsia and Gaslight have a pop-up shop (a mobile coffee shop,) however, Gaslight advertises it more on social media.

GOOGLE TRENDS -

You can see in the graph below the interest in Intelligentsia has been slowly decreasing over time.

SHORT & LONG TERM GOALS SHORT

Increase Brand Awareness through entertainment and social media. Create a neighborhood feel for customers Increase and sustain declining sales

LONG

Build Brand Loyalty Create a life style around Intelligentsia Expand to other states and locations

REASEARCH REPORT MISSION STATEMENT

â&#x20AC;&#x153;Our goal

is that each of these is presented in an environment steeped in education and humility. We want great coffee to be revered, yet democratic, approachable and accessible. By illuminating

what is possible with coffee, we hope to change forever how you think about it. And that would be something.” “Volta has flown the orange and grey colors of Intelligentsia from the moment we conceived of the shop. In fact, Volta wouldn't be what it is today without the help of so many people from the Intelligentsia organization. The Intelligentsia staff are more than a company that roasts our coffee: from Southeast sales rep Chris Clements, to trainers who have worked with us in our shop, in Chicago, and through email and phone support, to sales staff and technical support, the people behind the scenes at Intelligentsia have provided professional support that has allowed us to excel.” “They are industry leaders who have challenged us to push the boundaries of what a small, independent shop in a tertiary market can accomplish. That, and the coffees just keep getting better and better. Geoff Watts oversees a staff of green coffee buyers, QC evaluators, and roasters that not only delivers consistently amazing coffees, but they are literally pushing the envelope for quality at all steps of the supply chain, from farm to cup.”

VISION STATEMENT

Intelligentsia’s vision is to bring the highest quality coffee to the states and have people learn and experience all of the wonderful things that coffee has to offer while continually working with their coffee growers, to expand their business and push them to the forefront of coffee lovers.

4P’S CURRENT PRODUCT OFFE RINGS

Intelligentsia offers a variety of products from in-house to online, they provide the greatest quality offering and stay consistent to it. They offer an amazing amount of variety when it comes to coffee purchases online. From Bolivia to Rwanda and Zambia to Their chocolate house blend, all of it is high quality. They also offer an astounding assortment of teas as well. Apparel and coffee roasting devices are also available. You can find other products at o Target in a Seasonal Blend o Whole foods

o Amazon -

The design of their home brew and accessories very from modern to classic

Classic

o Modern Support: o When you do better, we do better. Our growing team of customer support representatives are on hand 8:30am - 5pm M-F to help with every customer inquiry. We are constantly investing in new technology to help better facilitate the needs of our wholesale customers including a new wholesale website and iPhone app. We send out weekly newsletters with updates on new coffees, new products, promotions and existing stocks. o We believe that comprehensive technical support is a key ingredient of any successful coffee program. Our technical services department provides 24/7 support 365 days a year. Our technicians have decades of collective experience and the utmost of expertise on a vast array of equipment. Our technicians are qualified to perform and direct equipment installations, service repairs, equipment modifications, preventative maintenance, and calibrations.

PRICE RANGE

$15-$750~$1000 With a $5 Flat Rate Shipping Fee *^*can be purchased online and or in-store Coffee Pricing. $2-$5

PLACE/ LOCATION

PROMOTION/ BRAND PRE SENCES

They are very active on social media and are one of the first searches to come up when searching for coffee shops in Chicago, which makes them very good at SEO Planning. They have a blog on their website in which they frequently post to. Their Twitter and IG are very impressive. They also have an application available on the ITunes market. They are very active on Social Media through:

o FB: They promote many events they attend and contests they create. For instance, this past winter they had a “choose a side” Sants, or Krampus. Very interesting and engaging because it involves a lot of art and cultural conversation. o TWITTER: http://bit.ly/1vIz4Is ▪ They are very conversational on twitter posting about things happening on a day -to-day basis, staying in the loop with everyone’s day, and promoting their store. They recently had a redesign for their to-go coffee cups in which, depending on the city, showcased the cities landmarks, with colorful and artistic value. ▪ They use it to ask to collaborate with many different bakeries and ice cream shops to further promote their coffee. ▪ This platform is very exciting it is very adventurous. You see them all over the US. They showcase their accessories and coffee shops in a way that makes it look timeless and classic as well. Their customers also engage very well, posting pictures of them holding intelligentsia products. POP CULTURE: Intelligentsia has been gaining traction in pop culture as well, engaging with Conan O'brien.

SWOT

S -

Strong city locations Chicago, L.A. New York Intelligentsia works alongside the coffee bean growers Cut out the middle man which gives them direct price control Set a standard among coffee drinkers Incredible espresso, Exceptional coffee Coffee is individually brewed Fresh specialty Brewed Coffee. Experience of Intelligentsia Trained professionals in the art of coffee roasting

W -

Size of coffee is very small. Average coffee drinkers feel that they are not getting what they are paying for. Average coffee drinkers feel the atmosphere is portentous Customers feel that they have to wait a while for their coffee Coffee is priced a little high Lack brand awareness Location sizes are small The size of the company is small their tea is not comparable to their coffee

Increase the serving size/amount of coffee given Make average coffee drinkers feel more comfortable Offer discount prices to college Students Increase the size of the company Add more locations around various cities Different themes at various locations Make their tea compatible with their coffee in tastes Increase Brand Identity, Positioning and Awareness Highest traded commodity in the world next to oil Increase product offerings

Starbucks Dunkin Donuts Other Coffee Baristas Energy Drink market Loss of business because lack of parking. For those who drive in form the suburbs Dependent on suppliers in other countries Saturated market

PEST

P -

Direct Trade Criteria – the growers must be committed to healthy environmental practices. The way coffee houses produce coffee is becoming more and more submitted to high standards of quality. Also, there is an important pressure on trading in a more ethical way. For example, at Starbucks, their strategy is totally based on this trend: “Business Ethics and Compliance is a program that supports Our Starbucks Mission and helps protect our culture and our reputation by providing resources that help partners make ethical decisions at work.” Also, there are more and more people asking for fair trade coffee and it’s a god way for coffee houses to differentiate themselves through fair products. For example, Dunkin’ Donuts’ espresso beans are 100% Fair Trade Certified™ and selected from only the finest, highquality Arabica beans.

E -

Direct Trade Criteriahttp://www.intelligentsiacoffee.com/content/direct-trade Work closely with producers Every day, coffee fans in cities from San Diego to Stockholm get a dose of self-satisfaction along with their morning caffeine jolt when they order fancy coffee that tastes great and that they assume is helping the environment. But the recent uptick in coffee connoisseurship hasn't yet translated into a more environmentally friendly coffee industry. Quite the opposite. According to a study published in the latest issue of Bio Science, the world's coffee farms are now more harmful to the environment than ever.

S -

Their Website- http://www.intelligentsiacoffee.com/ Social issue- Intelligentsia believes there are many reason to support organic coffee production, but personal health is not one of theme. Heavy Press From Chicago, Eater, Food Republic, Maximum etc.…

IPhone App with brewing instructions Public class and social tours

Black Cat Project Barista Toolshttp://www.intelligentsiacoffee.com/content/black-cat-project Website Facebook, twitter IPhone App Technivorm- Coffee Brewer http://www.intelligentsiacoffee.com/product/merchandise/technivo rm-coffee-brewer Advances in technology, buyers purchasing with cell phones, applications, and other forms of payment.

INDUSTRY & CATEGORY TRENDS

2014 Coffee Consumer Trends Report: More Gourmet, Single Cups -

According to the National Coffee Association most recent annual consumer report. Coffee consumers in the U.S. are starting to branch out from corporate coffee chains. Consumers are looking for more specialty coffee based espresso drinks. 34% of Americans Consume gourmet coffee beverages daily. Strongest daily consumers of gourmet coffee beverages are 25-39 years of age. 61% of Americans drink more coffee than soft drinks.

Food & Drink: The New Coffee Roasting Arms Race -

According to Food & Drink. Specialty shops are now on the rise they are starting steal the competition away from major corporations. Consumers like that specialty shops are finding their own unique way of brewing coffee. There is a trend with consumers. Take beer for example many people drink the main beer brand names such as Miller light, Bud Light, Budweiser etc.. Then they start to get used to the taste and start to

branch off in search of something else such as craft beers, which over the past few years have become very popular. This is the pattern we are starting to see with coffee drinkers. Coffee Industry Threatened By Energy and Sports Drinks: US Coffee Drinking Trends -

The coffee market is becoming threatened because young adults have some many other caffeinated options to choose from such as sports and energy drinks. According to the National Coffee Association (NCA) annual consumer survey said. Coffee consumption is more popular among older consumers. Younger consumers ages 18 to 39, have indicated that 20 percent consumed at least one sports drink or energy shot within the past day. According to the survey, which sampled 2,741 adults in February 2014. However, not all of the news was gloomy for the industry. Gourmet coffee has trended well among younger drinkers, even as the dominance of traditional coffee declines. Thirty-four percent of those surveyed in 2014 said they drank gourmet coffee, which is defined by the industry as any drink that's made all or in part from espresso or premium coffee beans. That number marks a 10 percent gain compared to 2010. Standard coffee drinking declined almost 5 percent from last year.

New Trends in Coffee: The Age of the Nano-Roaster â&#x20AC;&#x153;Third wave coffeeâ&#x20AC;?, is a new trend that coffee consumers, brews and baristas are starting to get into. The concept is broken down into three different parts, or in this case three different waves. -The first wave is about the consumption of the coffee. -The second wave is about the consumer enjoyment of the coffee. (Is it yummy, Make it a latte, maybe add some vanilla.) -The third wave is about coffee appreciation (like wine, or music appreciation.)

- Each wave builds upon the next, and one wave isnâ&#x20AC;&#x2122;t replaced by the other.

COMPTITION (CONPETITIVE ANALYSIS) & COMPETITIVE MAP

STARBUCKS

Product specs

MISSIONS/STATEMENT

Is to inspire and nurture the human spirit one person, one cup and one neighborhood at a time.

BRAND STORY

“Every day, we go to work hoping to do two things: share great coffee with our friends and help make the world a little better.” The first Starbucks opened in 1971. Back then the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later. In 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a

vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. Today, with more than 21,000 stores in 65 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world. And with every cup, we strive to bring both our heritage and an exceptional experience to life.

PRICING

For various coffee beverages, lattes, macchiato, Frappuccino’s -

Tall $1-$4, Grande $2- $4.50, Venti $2.25- $5

For Sandwiches, wraps, cookies etc… -

$1.50 - $6

STRENGTH

Innovation Global Presence Strong Financials Brand Identity Store ambience Number one brand in coffee house segment valued at $4 billion One of largest coffee chain in the world Good employee management Sound finical records Constantly expanding Stores in over 60 countries 4- star brand Dominated local markets “Starbucks on every corner” MyStarbucksidea.com allows customers to give feedback

WEAKNESSES

High employee turnover Over dependence on US Market Small Product Mix Higher Prices Too many products Product Pricing: Coffee is overpriced Doesn’t recognize Ethiopia’s ownership on their coffee and they don’t trade fairly Lose of Identity. Has a very processed feel Not popular in Europe Negative publicity

INTERESTING FACTS ABOUT STARBUCKS

Starbucks has added an average of two stores on a daily basis since 1987

Santa Fe Springs, Calif. has the highest concentration with 560 Starbucks stores within 25 miles.

Starbucks had 137,000 employees or “partner” as they call them in 2010. This is twice the population of Greenland.

Starbucks opened its first store in Beijing in 1999 and there are now 376 stores in China. They expect to reach 1000 by 2015.

The average Starbucks customer visits the store 6 times per month while a loyal 20% of customers go to the stores 16 times per month.

There are over 87,000 possible drink combinations at Starbucks

A Starbucks Grande coffee has 32 milligrams of caffeine, over four times the amount of caffeine in a Red Bull.

The Starbucks cinnamon chop scone has more calories than a McDonald’s quarter pounder with 480 calories

At $300 million, Starbucks spends more on healthcare insurance for its employees than on coffee beans

Starbucks uses 2.3 billion paper cups per year

McDonald’s is more massive than Starbucks

DUNKIN DONUTS PRODUCTS SPECS

Dunkin Donuts, product variety display is for the casual caffeine coffee drinker. All products displayed online are for the convenience of the coffee: grinders, mugs, containers to hold coffee. Unlike intelligentsia, which appeals to people who are serious coffee drinkers, DD does not compare in elegance.

MESSAGE/ MISSION

About Us: Dunkin Donuts With more than 18,000 points of distribution in nearly 60 countries worldwide, Dunkin' Brands Group, Inc. (Nasdaq: DNKN) is one of the world's leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. At the end of 2013, Dunkin' Brands' nearly 100 percent franchised business model included nearly 11,000 Dunkin' Donuts restaurants and 7,300 Baskin-Robbins restaurants. For the full-year 2013, the company had franchisee-reported sales of approximately $9.3 billion. Dunkin' Brands Group, Inc. is headquartered in Canton, Mass.

VISION

their vision is to bring the highest quality coffee to the states and have people learn and experience all of the wonderful things that coffee has to offer while continually working their coffee growers, to expand their business and push them to the forefront of coffee lovers.

PRICE RANGE

DD: $5-$50

STRENGTHS

Recognizable name Huge reach, in over 60 countries Influences the majority of the audience which need a quick bite to eat and coffee

WEAKNESS

Played out taste characteristics Many young people moving to small niche shops Which incentivize social groups and personal touch points

PEET’S COFFEE & TEA PRODUCT SPECS

Espresso or Coffee Uniquely named blends and roasts Some locations offer pastries or breakfast options Beans from different locations/ Suppliers Artistry on products

MISSION

To enable and inspire customers to enjoy the daily pleasure of Peet’s coffees and teas by providing distinctive, superior coffee and tea knowledge, and superior service to every customer, every day.

BRAND STORY/S

When Alfred Peet opened a small coffee store on the corner of Walnut and Vine Streets in Berkeley, CA, few noticed that a revolution was brewing. But, Mr. Peet had other plans. A New Kind of Coffee. Born in Holland, Alfred Peet grew up in the coffee trade and moved to America after World War II. Shocked by what the U.S. called coffee, Mr. Peet opened the first Peet's Coffee & Tea store on April 1, 1966. His style of coffee was unlike anything Americans had ever tasted before – small batches, fresh beans, superior quality, and a dark roast produced a coffee that was rich and complex. The Revolution Begins By 1969, Peet's Coffee & Tea had become a gathering place for coffee devotees, called Peetniks, and a magnet for other artisan food crafters. The world's first "foodies" congregated in the storefronts around Peet's Coffee and the area soon had a name – The Gourmet Ghetto. The artisan coffee movement was beginning to gain ground. Alfred Peet's influence continued to grow as he inspired a new

generation of coffee entrepreneurs, including the founders of Starbucks. For the Love of Peet's Over the past four decades, Peet's growth has been fueled by the ever-increasing numbers of true coffee lovers in the San Francisco Bay Area and across the nation. Despite this growth, we remain true to the same principle that inspired our founder – an unrelenting commitment to quality. Since 1966, our goal has remained the same: we continually strive to raise the bar for the American coffee industry, while always delivering a great tasting cup for those who truly love coffee – for those whom a cup of coffee could only mean a cup of Peet's.

PRICE

Tea Favorites Buy cup $1.80, Loose Leaf $2.25, Rare Tea $3.00 Tea Classic Small - Large $2.75 - $3.60 Espresso Drinks Small – Large $ 2.75 - $ 3.60 Brewed Coffee Small – Large $ 1.60 - $1.85

STRENGTHS

Local friendly unique atmosphere Locally owned Supported by community as a small business Owners presence Fuelled by sense of community

WEAKNESSES

Single location or few locations Limited capitol Availability - Distance from home or work travel times Saturated market Prices

COMPETIVITE POSITIONG MAP

TARGET AUDIENCE & CONSUMER BEHAVIOR ANALYSIS INSIGHTS FROM INTERV IEWS

Consumers like to support local coffee shops. Consumers feel that the pricing is fair compared to other places within the coffee industry Consumers would like to see more interaction with customers. â&#x20AC;&#x153;Want a neighborhood feel while living inside a big city. Intelligentsia coffee is not as good as their espresso is. Consumers prefer Starbucks or Dunkin Donuts. Now this may be because they are just accustom to the taste of the coffee. Therefore, not realizing who Intelligentsia brews their coffee which is why the taste a drastic difference. Intelligentsia Espressos are some of the best they have ever tasted. Atmosphere of Intelligentsia is cold and uninviting. Most consumers are so busy that they do not have time to sit down and enjoy their coffee, which is a down side for Intelligentsia because they individual brew their coffee which takes a lot longer to make. Specialty coffee shops should create a special unique coffee experiences

SURVEY & SURVEY INSIGHTS

According to suburbanstats.org. The total population of Chicagoans in 2014-2015 is 2,695,598. There are roughly 1,308,072 males and 1,387,525 females. Females in Chicago out number males by 79,454. There for an assumption can be made that there are more female coffee drinkers then there are males. The graph blow is a screen shot of an Intelligentsia survey taken from surveymonkey.com.

Most respondents were between ages 19-33, correlating with ages most likely to attend college, this is where we realized our target audience.

Most respondents in this section claimed to drink coffee every day, showing a popularity within this age group.

This insight gives us an advantage on where to reach our audience, through the radio and on the train and bus. If most people drive then buy airtime for radio and satellite radio would be beneficial to our communication strategy. Also, banner ads on busses and trains showing the perks of being a college student by coming in for a 25% discount on all drinks would also be an added advantage to increase foot traffic.

COFFEE PURCAHSES BEH AVIOR

NEW FEATURE ON APP

Intelligentsia is known for its unique brewing methods. Which can take 5-6 min. Consumer want to sit down and enjoy their coffee, but the reality is they donâ&#x20AC;&#x2122;t have the time. Nor do they have the time to wait for their coffee to be individually brewed. We would like to introduce a new modern twist on Italian coffee culture and add a new future to Intelligentsia App.

TARGET AUDIENCE / PERSONA -

Age- 18-30 College Students, People who work in the service industry,

Nicole -

Is a photography student who recently moved from a small town in the Midwest’s heartland to the big city, Chicago, is 23 and takes her photography very seriously. She wants to make a name for herself one day. She has two younger siblings that have always supported her and love her creative side. Since moving to Chicago Nicole has been given the freedom of options when deciding what to eat, drink, wear, and which concerts to go too. She often feels overwhelmed with all the choices, only having a few places, which she frequented, in her small town. A friend introduced her to sushi and she has been hooked ever since, she is open to try new things, given a chance she would happily support small shops and be a part of the business community. Nicole loves her coffee, she’s used to sitting back and enjoying her coffee in the rural Midwest. However, since moving to the city she is accustom to the fast paced lifestyle. Nicole is a senior at Columbia, she likes to explore the city and snap pictures for her Photography class. She has never felt so inspired in her life. She has many interests and keeps herself busy taking as many classes as she can and working on her photography portfolio. She is always on the go and was grateful to discover Intelligentsia’s coffee that give her the energy to tackle her busy day. She is very active on social media, She volunteers at a food shelter one weekend out of the month, she has started to wear converse and Vans, and has been introduced to the wonderful world of city fashion, and Nicole feels like she belongs here. She loves the artistic influences the city has to offer and enjoys meeting other artists and seeing their work.

BRAND DEVELOPMENT STRATEGY

MOOD BOARD One of the most useful insights gather from our research is that consumers want the atmosphere of the coffee shop to feel warm and inviting. Which is the mood we are trying to create below using fall colors and more inviting seating arrangements.

BRAND POISIOTNING

Intelligentsia is an interesting company, in that it creates a smart and professional atmosphere for its consumer. They offer ways of engaging with the stores and learning the benefits the brand. For instance, you can learn how to be a barista for $200 in one of the many different types of classes they offer in the Chicago, New York, and Los Angeles area. They have bright vibrant vintage colors that stay true like the classic way they brew their coffee. The passion and expertise they have pushes them to the forefront of coffee shops.

SALES STRATEGY

Pricing- 25% $3.00 Tue, Wed, Thu -

50% $2.00 Wed from 12pm-1pm

Sales PromotionFliers and Promo codes through Uber and Pandora. Dates Aug 1st - Oct 31st -

25% percent discount with student ID. Meet us half way on #hump day

COMMUNICATION STRATEGY& MESSAGE -

For the message strategy we wanted to play off of Intelligentsiaâ&#x20AC;&#x2122;s name. As well as inspire our target audience to think even more intelligently then they do now. Drink Intelligently, Be Intelligentsia

MEDIA STRATEGY CREATIVE STRATEGY

Inside Train

Train Windows

Ad Specify to women / website and face book ad

Ad being display on the Red Line and Brown line Stops

Pop up trucks and chalk art displaying discount with student ID Fliers

SECHEDULE/ TIMELINE & BUDGET

Total Budget: $77,687 Audience # 1

Medium #1

Timeline:

Cost:

College Age

Lollapalooza

July 31st- Aug 2nd

$7,000

Management of campaign Overhead/ Production

Medium #2

Timeline:

Cost:

20,000 Fliers $637

Online/ Internet

6 month contract

$5,700

Total:

Facebook, Instagram

July 25th- Jan 28th/17

Students 18-30

$15,637

Local College Websites Medium # 3 (Transit)

Timeline:

Cost:

CTA Train Interior

Aug 1st – Oct 31st

$6,750

Medium # 4 (Transit)

Timeline:

Cost:

Digital Advertising

Aug 1st – Oct 31st

$1,200

Medium # 5 (Transit)

Timeline:

Cost:

Uber promo code

Aug 1th – Oct31th

$3,000

Medium # 6 (Transit)

Timeline:

Cost:

CTA Train Window

Aug 1th – Oct 31th

$ 27,000

Medium #7 (Outdoor)

Timeline:

Cost:

3D Chalk Art

First Ad Aug 22- Sep 2nd

$ 2,700

Second Ad Sep 12th23rd Third Ad Oct 10th – 21st 2 weeks each month

Medium # 8 Intelligentsia Pop up Trucks

Timeline:

Cost:

First Aug 22- Sep 2nd

$ 7,700

Second Sep 12th- 23rd Third Ad Oct 10th – 21st 2x’ weeks Medium #9

Timeline:

Cost:

Chicago Pandora Radio

6month contract

$ 1,000

July 25th- Jan 28th

Total Cost: $77,687

Medium #1 Medium #1

Type- Gorilla Sales/ Exposure Why- Lollapalooza has become one of the largest music festivals in the world. In 2012, more than 300,000 people attended the event, and the festival generated 2.4 billion media impressions and $50 million in media value. By Selling Iced Coffee at a beverage station will create higher brand awareness as well as generate income that will pay off the cost and generate an increased monetary amount for the company. Lollapalooza showcase local Chicago business and is a good way for Intelligentsia to be a part of that. During the long hot summer day’s attendees could benefit from some cold coffee to help them get through the day. After tasting the coffee the attendees will recognize Intelligentsia as a local business increasing awareness. The amount of shared content on social media via word of mouth will also generate impressions. When- July 31-Aug 2nd 2016 Cited references (cityofchicago.org) (Lollapalooza.com)

Vendor details (As of 2013) Must register April 19th C: Beverage, 10 x 20, $5,500 + $125 City License Fee + $500 Security Fee Non-Alcoholic beverages only A minimum of 1 and a maximum of 3 beverage items may be sold. Could charge $8 per iced coffee if sales hit $10,000 Income-$80,000 -Initial fee of 6,125=73,875 â&#x20AC;&#x201C; (Cost of Labor and Product)= Profit Medium #2 Internet/ Online: Facebook and Instagram Type: Side box ad because it is a large, prominent ad but also it to appear to 100% of all page visitors. Side box ads randomly change position with each visit (or page refresh) but are always visible to every viewer of the page. Most pages have no more than four side ads, meaning you are in the top position 25% of the time.

Where: Run of Directory /Run of Section:. Ads will appear on all the main pages within the section - giving your message far more exposure. Advertisers who purchases the panel directory will have their ad appear on the panel directory search page, the general directory search results page and even on the company details pages (including on competitor pages). The same is true for our other directories, articles, events, discussion forums, blogs and other sections of our site. Why: we chose run of directory and run of section ads are, because it will give Intelligentsia the right amount of exposer. Even on discussion sights and blogs which we want because a main portion of our marketing plan is gorilla marketing. Therefore, we want to spark interest for our target audience and inspire them to Facebook, Instagram and tweet about Intelligentsia. Pricing 6 month contract $1,900 x 3 (websites) = $5,700

Mediums #3-6 Outdoor (Transit) Type: - CTA Train Interior Horizontal - Uber Ca - CTA Train Windows Where: - Moving all around the city of Chicago - Red, Brown Purple Lines Why: -

Intelligentsia target audience is college students ages 18-30. The average college student budget is $19,000 or less. Which is why, we chose to advertise on CTA Buses, Trains and through Uber.

Pricing: - Train interior 30 ads x $75= $2,250 x 3 months = $6,750 - Uber Car promo codes $1,000 x 3 months= $3,000 - CTA Train 15ads x $300= $ 4,500 x 6 windows, 1 month = $ 27,000 Medium: #7 Outdoor (3D Chalk Art) Type: 3D Chalk Art Where: 3 different location 1. Columbia College 624 S Michigan

2. DePaul University

3. Art Museum Why: Chalk art advertising is a form of guerrilla marketing that puts an advertising message right at the feet of the consumer.

Pricing: -

$300 x 3 ads/ locations = $900 x 3 weeks = $2,700 Each chalk art last 2 weeks at a time. We are going to displaying them for 2 weeks over a 3 month period of time. Aug 1th- Oct 31th First Ad Aug 22- Sep 2nd Second Ad Sep 12th- 23rd Third Ad Oct 10th â&#x20AC;&#x201C; 21st

The Chalk art is part of the advertisement with Intelligentsia pop up trucks. As well as the fliers with discount prices we will be handing out to local colleges and various students who walk by.

Medium: 8 Intelligentsia pop up truck Why: -

It puts Intelligentsia right in the face of their target audience.

Where: -

There will be 3 different trucks in 3 different locations with the 3d chalk ads intelligently leading people to them. Columbia College 624 S Michigan DePaul University

University Center

Pricing: 3 trucks 2 times a week for 2 months = $7, 700 Medium: 9 Pandora Radio- $ 1000 for 6 months Why - The goal is to reach college students through digital radio specific to Chicago’s area. -

We will be displaying our discount promo codes through the radio as well as various advertisements

ROI ANALYSIS

Total Budget: $ 77,687 85% of our budget M, Fri, Sat Sun, Price of Coffee solid on M, Fri Sat, Sun $4.00 $ 77, 687 x 85% = $66,034/ $4.00= 16,508 cups of coffee -

16,508 cups of coffee need to be sold to break even.

15% of our budge Tues- Thurs (Sales Promotion) 3 months Price of coffee 25% discount $3.00 -

13 Wednesday for 1 hr. coffee is half off.

$77,687 x 15% =11,653/ $3.00= 3,884 cups of coffee -

3, 884 cups of coffee need to be sold to break even.

ROI in cups sold to make a 40% gain $77,687x 40% = $31,075 %85 Mon, Fri, Sat, Sun 85%x $31,075= $26,413.75/ $4.00= 6,603 cups of coffee 15% Tue – Thurs 15% x $ 31,075= $4,661/ $3.00= 1,553 cups of coffee

CONCLUSION & REFERENCES PAGE

http://dailycoffeenews.com/2014/05/09/2014-coffee-consumertrends-report-more-gourmet-single-cups/ http://www.mensjournal.com/food-drink/drinks/the-new-coffeeroasting-arms-race-20150115 http://www.ibtimes.com/coffee-industry-threatened-energy-sportsdrinks-us-coffee-drinking-trends-1563060 http://www.starbucks.com/about-us/our-heritage http://www.businessinsider.com/15-facts-about-starbucks-that-willblow-your-mind-2011-3#starbucks-has-added-an-average-of-twostores-on-a-daily-basis-since-1987-1 https://suburbanstats.org/population/illinois/how-many-peoplelive-in-chicago http://www.e-importz.com/coffee-statistics.php

APPENDIX: FULL INERVIEWS ( AND SURVEYS) FULL INTERVIEWS

Rick Pantoga -

Gender: Caucasian male Age: 50’s Occupation: Sr. Loan Officer at Starboard Financial and Sr. Mortgage Consultant at Caliber Home Loans Locations: Chicago Rick will drink one cup of coffee a week maybe. Since Rick doesn’t drink coffee to often he feels that he has a little bit of a caffeine buzz. He says, “I will not go to Starbucks mainly because I don’t like what they have done to local mom and pop shops”. He feels that Starbucks has ran most independent coffee shops out of business. As well as, he doesn’t like the taste of their coffee. What he likes about independent coffee shops is that they are more down to earth and he likes to support local businesses. Rick has been to Intelligentsia before he says it is a good place to meet clients for work. When asked what he doesn’t like about the coffee industry, Rick says, he would like to see lower prices from most chain coffee shops. He would also like to simplify the ordering aspect to Small, Medium, or Large. When Rick was asked what comes to mind when you think of coffee? His response was it gives me anxiety. What causes him anxiety is the

ordering, and a crowded space with little interaction form other people. Lastly when Rick hears the word coffee he associates it with business. Jason Gall -

Gender: Caucasian Male Age: 37 Occupation: Jason teaches trapeze during the day and at night he works at a local bar. Location: Chicago Jason drinks coffee 7 days a week. He will drink 1 to 4 cups a day. The reason why Jason drinks coffee is because he has been drinking it since he was a kid. He used to manage a coffee shop. Also, because Jason travels a lot he enjoys different coffee cultures form around the world. Jason will drink coffee at home or while he is at work. If he goes out to dinner then he will have a shot of espresso after his meal. Jason loves coffee shops and bursitis as well as, European coffee culture. He travels a lot and eventually when he retires he would like to own a bursitis of his own. What he likes about local coffee shops is that they proved him with a neighborhood feeling, since he lives in Chicago. Jason has been to Intelligentsia before. He loves their shots of espresso. He believes they have the best flavor and besting tasting espresso. He also, likes that the bursitis know what they are doing. What he doesnâ&#x20AC;&#x2122;t like that the atmosphere is just ok and it feels a little cold. The dĂŠcor is not inviting at all and does not provide that at home neighborhood feeling has likes in a coffee shop. Jason feels that the coffee industry is over saturated with too many cooperate chains. What he really likes about specialty coffee shops is that they are all different form one another. When Jason thinks of coffee what comes to mind is Italian and French coffee culture. He also mentioned that he will only buy coffee through fair trade.

Caser Martinez -

Gender: Hispanic male. Age: 36. Occupation: Works at a local bar in Chicago Location: Edgewater, Chicago Caser will drink coffee 2-5 cups of coffee per day. He views coffee as a pick me up. Caser will drink coffee in the morning or before heading into work. He like to brew coffee at home or he will usually

purchase his coffee at Starbucks or Dunkin Donuts. After drink his coffee he feelings energized and ready to go. Caser says he like coffee shops and baristas before and likes the different verity of their caffeine beverages. “It has become a habit for me to go”. The first time he experienced intelligentsia was on a coffee date. He is not a big fan of their coffee the taste is to strong. The atmosphere was bright and not too comfortable. to him it is not as inviting as a Starbucks. Overall the atmosphere made him feel like he was at an Apple store, very high end and state of the art equipment. When what comes to mind when he hears the word coffee? Caser says it reminds him of his dad, who used to make for him every morning and on his days off. The reason why he drinks a lot of coffee now is because of his boyfriend who is a huge Starbucks coffee drinker.

Justin Siersma -

Gender: Caucasian male Age: 32 Occupation: He is a manager and part owner of Kroll’s restaurant Location: Lake View, Chicago Justin drinks coffee almost every day. The reason why he drinks it is to wake him up and he also loves the taste of coffee. Dunkin Donuts is his favorite coffee place. Justin will drink his coffee early in the morning or afternoon before work. Also, while he is at work. He likes locally owned coffee shops because he likes to contribute to local businesses. Justin has herd of Intelligentsia before but has never been to one only because he has no idea where the closet one is. He does drink there coffee though, because that is the coffee they serve at Kroll’s. To Justin the coffee industry is very oversaturated with cooperate chains. One of the main reasons why he drinks Dunkin Donuts is because it is quick and easy and he can pick it up while he is on his way to work.

Matt Lopez -

Gender: Caucasian and Hispanic Age: 23.

Occupation: Matt works at a local bar Location: Chicago Matt drinks coffee once a day. His reason for drinking coffee is that it provides him with energy and be likes the taste of coffee. Matt usually brews his own coffee at home because he has a Keurig. He will drink his coffee early in the afternoon before he heads to work. After he has had his cup of coffee he is fully energized and ready to go. Matt likes specialty coffee shops because of their variety in flavors, he also likes their latte as well. Matt has been to Intelligentsia before. What he likes about Intelligentsia is that the prices are not too high compared to other places he has been before. What he dislikes is that the coffee did not taste well, to him the flavor was very weak. To Matt the coffee industry is not oversaturated and that they are trying to keep up with the trend of coffee. The first thing Matt thinks of when he hears the word coffee, is the memory of his mom brewing him and his sister coffee in the mornings. Which is why Matt buys and drinks coffee now.

Brion Nikitow -

Gender: Caucasian Male Age: 24 Occupation: Student Location: Skokie, Ill

Brion is 24 years old, he does not drink coffee but does like to drink Earl Grey tea, and is willing to explore new different types of tea. He has never heard of Intelligentsia Coffee before. He frequents the downtown Evanston and Chicago area frequently with friends-this would give him a chance to try it.

Lana Shamoon -

Gender: Femlae Age: 31 Occupation: Banker Location: Evanston

Lana is 32 years old and drinks coffee daily, her weekly consumption is 5 cups. She drinks it to fulfill a utilitarian need; effective rather than enjoyable. When she is in a rush she will turn to Starbucks; she loves

trying new coffees at the store. She too has never heard of Intelligentsia, but is willing to go as a social venture. Bianca Nunez -

Gender: Female Age: 26 Occupation: Nurse/ Mother Location: Skokie

Bianca is 26 years old and loves coffee, she drinks more than +10 cups a week. She loves different brewing styles and loves to try different coffees. She would definitely try Intelligentsia is given the chance to go to the city. Her first choice when in a rush is Starbucks.

Piotrek Suzko -

Gender: Male Age: 37 Occupation: Engineering Assistant Location: Niles

Avid coffee drinker, enjoys his coffee, does not drink much a week. He uses it to fulfill a utilitarian need. He loves to try different types of coffee. His go to coffee place when in a rush is Starbucks. He has heard of intelligentsia and likes it.

Silvana Shilaita -

Gender: Male Age: 27 Occupation: Banker/ Mother Location: Niles

She loves coffee, drinks +10 cups a day. She loves french roast and doesn't mind if she does or does not try new coffees. She likes Starbucks seasonal drinks and enjoys the anticipation of waiting for them.

Nadia -

Gender: Female Age: 21 Occupation: Student at DePaul Location: Chicago

She is dependent on her morning coffee and she usual picks it up from the closest coffee shop instead of making it at home. The first thing she does when she wakes up is go down to Starbucks. She says “ I can’t start my day unless I had my coffee and a cigarette on my way to class”. She lives in river north and her regular coffee shop is Starbucks, it is her favorite but she admits she usual frequents whichever coffee shop is closest to her. She picks her favorite drink from whatever coffee shop is closest to her apartment. When she lived in the south loop the closest coffee shop to her was Dunkin Doughnuts and that was where she got her coffee every morning. Nadia has not tried Intelligentsia but has heard about it and would love to try it soon

Adam -

Gender: Male Age: 23 Occupation: Student at Loyola Location: Chicago

Adam just graduated from University. He needs his coffee fix every day and usually makes it at home. He lives in the south loop. If he were to go out for coffee he would go to Starbucks out of convince, he does not think Starbucks has the best coffee. Adam thinks Intelligentsia has the best quality coffee but he doesn’t feel they have convenient locations. He has a hectic schedule so he doesn’t find the time to sit and relax while he drinks his coffee although he feels he would enjoy it more than taking it to go.

Serene -

Gender: Female Age: 30 Occupation: Accountant Location: Chicago

She Is very into the healthy life style and likes to walk she doesn’t mind walking a few extra blocks to get a good cup of coffee, she usually likes to make her own coffee and home with organic beans. She’s tried a few different brands and usual orders them from amazon or buys them from wholefoods. She has heard of

Intelligentsia but has not yet had the chance to visit one of its locations. Natasha - Age: 22 - Gender: female - Occupation: student at Loyola - Location: Chicago -

Maxi -

She is not much of a coffee drinker but she enjoys tea. She lives in Gold Coast, close to an Argo tea and that’s where she goes for tea most days. Other times she would walk to Starbucks if she had to study she feels the atmosphere there helps her be productive. She feels Argo tea is a more relaxing atmosphere. She goes to coffee shops to sit and enjoy the tea in a different atmosphere otherwise she would just make it at home.

Age: 26 Gender: male Occupation: Law School Student Location: Chicago He lives in Rogers Park the only coffee shop in his area is Starbucks. He loves Starbucks and would look for one whenever he is downtown he doesn’t like to change. He knows what he likes from Starbucks and likes to stick to his drink. He doesn’t enjoy sitting in coffee shops he likes to grab his coffee and go. He doesn’t like to make his own coffee at home he does not think it turns out good.

Johnny - Age: 18 - Gender: Male - Education: High School - Occupation: Student - Location: Deerfield, IL -

Drinks coffee only in the morning. Drinks coffee from Starbucks with cream and sugar. He enjoys coffee to help him wake up in the morning on his way to school. The most important factor in his

purchasing decision is location. He says he also enjoys tea regularly in the winter to warm up and also to treat sore throats or coughs. He says he would prefer an independent coffee shop because of the flavor but doesn’t have access and wouldn’t want to pay too much for a cup of coffee.

Lindy -

Beth -

Age: 23 Gender: Female Education: Radiology Technologist Occupation: Student/ Nanny Location: Skokie, IL She goes school to be a radiology technologist. She drinks coffee on her way to school if she has time otherwise gets coffee from the cafeteria along with a bagel or muffin or some bacon and eggs. Dunkin donuts is conveniently located on her way to school and she says the coffee tastes better than Starbucks and the price is much more affordable. She enjoys studying at Dunkin Donuts regularly since its 24 hours and has a steady environment of people studying. She nannies a few days a week as work to make money.

Age: 48 Gender: Female Education: Some College Occupation: Business owner Location: Deerfield, IL She is owner of her own business that does property maintenance, and snow plowing. She has 4 kids and gets herself a coffee at Starbucks every morning, as well as a couple for her children if they ask. She even goes as far as reserving hotels on vacations that have a Starbucks inside the hotel or nearby for convenience. She doesn’t care about the price more so the familiarity of someone who how to make her coffee the way she likes with all her specifications. She drinks tea occasionally but more so makes tea for her family members when they feel ill. Location was very important to this customer. She would try a specialty shop if there were one in the area

that she lives in. Might be a good customer to sell the “at home” accessories to. Jessica - Age: 17 - Gender: Female - Education: High School - Location: Deerfield, IL - Occupation: -

This student is in high school and drinks coffee in the morning on a regular basis. When asked if she knew of Intelligentsia she had never heard of it, but was interested in the shop because she enjoys trying new things tasting food and drinks at specialty shops. She enjoys tea and coffee regularly, coffee in the morning and coffee before work. She gets her coffee from Starbucks. She doesn’t think Dunkin Donuts has good coffee but has never tried it. She likes specialty teas that don’t just come in a tea bag. She would be willing to try Intelligentsia next time she visits the City. Price isn’t a huge factor, familiarity seems important as well as location since there is a Starbucks across the street from the restaurant she works at. She would love some specialty coffee shops in her area but for now she will settle with Starbucks. Michael - Age: 18 -

Gender: Male

Education: Some College Location: Riverwoods, IL Occupation: Student

This college student doesn’t enjoy coffee at all doesn’t like the taste and prefers tea to coffee products. He also stated that he enjoys energy drinks to help him study for big tests or finals. He says that price and quality are the two most important parts of his purchasing decision. He also values location as being pretty important. Being a non-coffee drinker he said tea does the same thing and enjoys it with real honey as a sweetener.

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