Houndstooth Coffee Campaign Book

Table of Contents Who We Are

2

Executive Summary

3

Situational Analysis

5

Marketing Recommendations

10

Media Recommendations

15

Advertising Recommendations

18

Public Relations

23

Additional Recommendations

30

Measurement & Evaluation

32

Budget

35

Conclusion

38

Appendix Intercept Interviews

A-2

Area Analysis

A-13

Focus Group Questions

A-14

Who We Are Jennifer Anderson (Account Executive)

Jennifer is a public relations major at the University of Texas at Austin. She is currently an intern at Wyatt Brand, a local cultural and entertainment public relations and branding agency here in Austin, Texas and has previously interned at Kimberly Strenk PR. Jennifer graduates in May 2010 and hopes to find a job working in a public relations agency.

James Ju (Account Planner)

James is an advertising major at the University of Texas at Austin. Although he never thought he would, James can say that he enjoys research. He probably listens more than talks, but he hopes that it’s a good asset to have as a planner. After this project, coffee truly is becoming a pattern of his life.

Jun Lu (Creative Director)

Born out of small town Midland, Texas and raised in Dallas, Jun learned to draw people out of ovals instead of sticks. He has always preferred pencil over pen, and unlike his kindergarten peers, Captain Planet over Power Rangers. He enjoys playing tennis and traveling and hopes that someday it is all he will ever do. Until then, he will have to settle for working in a massive advertising agency in order to realize this goal.

Adam Supgul (Public Relations Specialist)

Adam will graduate from the University of Texas at Austin in May 2010 with a degree in public relations and a certificate from the Latino Media Studies program. His professional experiences include a position with local Austin non-profit Colin’s Hope and the ACLU of Texas.

Upon graduation he looks forward to entering the Austin non-profit sector full-time.

Anyi Weng (Media Director)

Anyi has experience in media planning, buying, and market research. Her interests primarily lie in connecting the consumer with the brand, particularly through digital experiences and brand psychology. In the long run, she would like to manage a brand consultancy company. Her hobbies outside of work include traveling, eating, and drinking excessive amounts of coffee, which is why she is so excited about working with Houndstooth.

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Executive Summary

Executive Summary This plans book presents Aha! Factory’s 10-month integrated marketing campaign for the launch and beginning months of Houndstooth. The objectives of this campaign are to increase brand awareness by stimulating people’s curiosity for the brand and foster repeat clientele while indirectly creating a community atmosphere at Houndstooth.

Aha! Factory suggests approximately a $2,500 budget to increase Houndstooth’s brand exposure in the community while utilizing practical approaches to launch Houndstooth successfully and eventually develop its core consumer market.

The recommendations in this plans book reflect primary and secondary research including intercept interviews, market research and a geographic analysis. Through this research we have identified three target groups that become more narrowly defined with each group. The target audience encompasses nearly all Austin adults while the target market is confined to adults who live or work in the surrounding area of Houndstooth. The core group consists of coffee enthusiasts who are educated about coffee culture: this is the group that Houndstooth aims to develop most.

Aha! Factory’s marketing strategy focuses on creating brand awareness in the community through advertising, media and public relations. Many of these tactics not only promote brand awareness, but also word-of-mouth marketing. Aha! Factory’s primary research show that people find out about new coffee shops in Austin primarily though suggestions from others and word-of-mouth. Advertising is achieved through community events and neighborhood advertising for Rosedale residents. Media seeks to connect with the local community via mobile and online channels of communication. Public Relations promotes awareness through internal events and outreach to local publications.

Due to a variable marketing environment, Aha! Factory left 20% of the campaign budget as a contingency fund. This money can be used in areas where Houndstooth finds to be most effective or adjusted due to market fluctuations.

The overall success of Houndstooth’s marketing strategy lies in creating connections and building awareness within the local Austin community. The suggested integrated marketing campaign is established to stimulate curiosity, build awareness and foster connections with customers to eventually transition them into the core consumer group.

4

Situational Analysis

Situational Analysis Houndstooth’s goal is to create a 10-month campaign to increase awareness and patronage during the initial launch and start of the company. Houndstooth hopes to sell and provide superior coffee while fostering a community of existing and potential coffee enthusiasts. Houndstooth also wishes to educate consumers about coffee, specifically direct trade, regional blends and different roasts.

Company History and Evaluation Houndstooth is the creation of Sean Henry, a former Austin coffee shop manager, whose mission is to provide Austin with quality coffee while educating them on the fine craft of coffee making. The 42nd and Lamar location will be Houndstooth’s flagship store and plans on opening its doors on May 1, 2010.

A main problem that Houndstooth faces is building brand awareness in a saturated market. In Austin alone, there are existing coffee shops that sell similar products with a comparable business strategy, meaning that they are locally owned and sell fair trade coffee. Houndstooth will have to find a way to diversify themselves, break through the clutter and find a loyal consumer base in order to be successful.

Consumer Evaluation According to Mintel, coffee shops are now a part of the mainstream culture in America and stand as a place for business and leisure. Because of this, coffee shops have become part of a lifestyle for many consumers, and many of these consumers are also becoming more passionate and educated about coffee1. This will provide Houndstooth with an opportunity to break into this market with its approach to educate the public about coffee knowledge. However, over half of adult coffee drinkers prefer to drink coffee at home rather than in a coffee shop due to the increasing percentage of price-conscious consumers1. Based on intercepts that Aha! Factory conducted in local coffee shops around Austin, research shows that consumers who are interested in specialty coffee roasters such as Cuvee and Counter Culture will go to specific locations to purchase that coffee with less regard to proximity. This presents an opportunity for Houndstooth to reach consumers who do not necessarily live or work in the surrounding area of its coffee shop. Since 75% of adult coffee drinkers consume coffee daily (about 3.4 cups per day)1, this is a great leveraging point for Houndstooth to gain loyal customers not only in the store, but also as purchasers of premium whole bean coffee.

1

Mintel. “Coffee 2009”

6

Product Evaluation Houndstooth plans on selling coffee from three different roasters: Cuvee, Counter Culture and Intelligentsia. These coffees are known for their quality and excellence. Intelligentsia coffee is also known for its support in direct trade. Direct trade is a term used by coffee roasters who buy straight from the growers, cutting out both the traditional middleman buyers, sellers and the organizations that control certifications such as Fair Trade1. Since many consumers are becoming more conscious of the environment and social rights, they tend to support companies that mirror their values and support a cause2. Houndstooth would benefit to make sure that their customers and potential customers are aware that they provide coffee that is directly traded and environmentally sustainable.

Since they have a more limited selection of drink choices than many other competing coffee shops, Houndstooth needs to emphasize the quality of their coffee. Therefore, Houndstooth must focus on the message of superior quality, direct trade and educating customers on appreciating the simplicity of a good cup of coffee.

Lastly, Houndstooth hopes to have 10% of its sales from whole bean sales. While the trend toward buying coffee in bulk is on the uprise, it also has a negative impact on repeat purchase because it takes people 270 cups of brewed coffee at home before a consumer needs to purchase more3. The high demand of premium coffee at one’s convenience is what Houndstooth can focus on and what many competitors cannot provide.

STRENGTHS

WEAKNESSES

Product quality Local and independent Sean’s expertise Location Qualified and experienced baristas Simple menu

Operational hours No previous brand establishment More expensive product than competitors Lack of product variety

OPPORTUNITIES

THREATS

Local business attracts Austinites Only local shop in area Draw upon customers in the center (piggy back on their brand image) Connecting with the customer online Located near Rosedale neighborhood Serves beer and wine

Current economic woes Less expensive competitors Competitors with many resources and variety

1

“Good Coffee, Clear Conscience” www.ethicalcoffee.net Mintel. “Consumer Attitudes Toward Natural and Organic Food and Beverage 2010” 3 Mintel. “Coffee 2009” 2

7

Competitive Evaluation According to insights from our consumer interviews, location is the most important factor in deciding what coffee shops people frequent. Therefore, the biggest competitors that Houndstooth will likely face are the Starbucks on 45th and Lamar, the Starbucks on 38th and Guadalupe and the Coffee Bean & Tea Leaf on 38th and Lamar. Because they are pre-established brands with national recognition, they have more resources to serve customers. A weakness of these chains is that research has shown that Austin residents prefer to support local business1. Houndstooth will also face competition from other local, independent coffee shops that mimic the same concept of providing quality coffee such as the Caffe Medici on West Lynn and Once Over Coffee Bar. Other indirect competitors of Houndstooth may be their neighbor, Uchiko, as they also serve coffee along with beer and wine. Another indirect competitor may include Draughthouse Pub since it offers a similar community environment that Houndstooth aims to provide.

1

Impact News. “Austin Leads Nation in Small Business Climate, Creation.� http://impactnews.com/southwest-austin/144news/7634-austin-leads-nation-in-small-business-climate-creation

8

Marketing Environment Evaluation Houndstooth boasts a great location that is in a popular area of Austin, situated close to Central Market and many locally-owned restaurants. The quality of the coffee is top-notch and is priced for people who can appreciate high quality coffee. The Austin market is receptive to sustainable concepts such as coffee being purchased by roasters directly from growers that have “healthy, environmental practices1.”

Price could be a potentially weak point for Houndstooth, depending on whether coffee enthusiasts will be willing to pay a higher price for a cup of coffee. Two of Houndstooth’s limiting factors are the budget and space. Because most advertising will be done through word-of-mouth, the control is given to the consumer on how successful it will be. Considering that alcohol will be served, Houndstooth’s closing time of 11:00 p.m. may be considered early. It is possible that this will discourage consumers who will not want to be interrupted during their drinks because of the early closing time or for those who will want to arrive and drink later. Because of this, Houndstooth will potentially miss out on the opportunity to capitalize on selling its alcoholic beverages. Also, because the nearby Starbucks closes at 11:00 p.m. and Coffee Bean & Tea Leaf close as early as 9:00 p.m., later hours could mean reaching an untapped market of the night crowd who reside in the surrounding area. Lastly, Austin is a city with many local businesses that have unique selling points, especially with coffee shops.

There will be many competitors, not only within the area, but throughout the whole Central Austin and downtown area.

There are many opportunities that Houndstooth will be able to grasp. The concept of Houndstooth has potential to appeal to Austinites because local businesses are welcomed2. The direct trade and emphasis on quality may appeal to “coffee connoisseurs,” and the people who live in the surrounding area are likely to afford expensive coffee. According to Claritas PRIZM, residents and workers in the area have a stable income and can thus afford expensive coffee3. Also, the location right next to the new Uchiko presents an opportunity to capture customers of the restaurant. Since Uchi is already an established and well-liked restaurant, there will be a wide range of customers who will come once the new location opens. Another opportunity that Houndstooth can capitalize on is the fact that the only nearby coffee shops nearby on Lamar are big national chains Starbucks and The Coffee Bean.

Houndstooth can really differentiate itself in terms of being unique with the delivery of product quality.

Some threats that Houndstooth might face include the uncertainty of being a new business. It is necessary that any paid advertising be measurable to test if money is going to waste. Also, a lack of public brand awareness accompanies new businesses. There is a lot of competition in the coffee shop category, and there are many people that drink coffee, but not many people who actually understand the background of coffee. This is somewhat of a niche market that Houndstooth will have to break into.

1

SustainLane. “2008 City Ranking” Impact News. “Austin Leads Nation in Small Business Climate, Creation.” http://impactnews.com/southwest-austin/144news/7634-austin-leads-nation-in-small-business-climate-creation 3 Claritas PRIZM 2

9

Marketing Recs

Marketing Recommendations Through Aha! Factory’s marketing recommendations, when customers begin visiting Houndstooth, the in-store emphasis on sustainability and direct trade are designed to prompt their curiosity. They will then have the opportunity to learn about the benefits of the coffee that Houndstooth sells, and eventually make Houndstooth their coffee shop of choice.

Objective Aha! Factory suggests three main objectives for Houndstooth to be profitable: 1) Sell 10 pounds of coffee a week from May 2010 - December 2010 2) Educate 80% of customers about direct trade and sustainability 3) After the first three months, have 25 loyal customers who come to Houndstooth at least once a week

Target Based off of Sean’s recommendations and secondary research, it is important that Houndstooth establishes a primary target composed of three groups that take demographic and geographic information into account. These target groups have been strategically organized to most effectively achieve Houndstooth’s marketing objectives.

Primary Target Aha! Factory found that the best way to approach the primary target is to divide it into three groups: Target audience, target market, and the core group.

Target Audience This group encompasses the entire primary target population. They are adults 23-50 years old who are financially successful and live or work in Austin. These consumers read local news outlets such as the Austin Chronicle or the Austin American-Statesman as part of their morning routine. Both college educated and open to new experiences, these adults enjoy coffee but are not necessarily educated about specialty coffee or coffee bean trading practices. Although they are interested in the local community and regularly participate in local events hosted in Austin, they may not necessarily have a strong coffee preference and might also be consumers of Starbucks Coffee or other major coffee chains. This group includes some Gen-Yers who are involved in the digital space. In addition, the younger group of consumers are new to having access to a disposable income after graduating from college and do not have financial obligations toward a family yet.

Target Market The primary market is a subdivision of the target audience. These adults are 30-50 year-olds who are college educated, financially successful and open to new experiences. However, the primary market group is defined as consumers who work or live within the surrounding area of Houndstooth.

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Research shows that a majority of residents in the neighborhoods around the shop are within the primary target age range and are also deeply involved with the local community1. These include both the Rosedale and Hyde Park neighborhoods. This group of residents and workers do not know the details about coffee bean trading practices but have a positive perception of fair and direct trade. Awareness of the subtle distinctions in quality among different types of coffee elude this consumer group, and as a result, they are content with the nearby Starbucks or Coffee Bean and Tea Leaf shops for convenience. However, because this group is locally involved and open to new experiences, awareness of Houndstooth along with education about specialty coffee is key to building the primary core consumer group.

Core Group The core group is a subdivision under the target market. This is the loyal consumer base that Houndstooth aims to grow. These are the people that would definitely come to Houndstooth once they know what it is about. Anti-Starbucks and anti-corporation, they are the coffee enthusiasts who are educated about specialty coffee and understand why a pound of coffee beans can cost over $100.

These consumers understand coffee bean trading practices and are willing to spend the extra dollars in support of coffee bean farmers and sustainability. Like the target market, this group primarily lives or works in the area around Houndstooth, but for coffee enthusiasts all around Austin, proximity is less of an issue if it means a better cup of coffee that they can enjoy (see Appendix).

Spillover Although college students are not a part of the target that Houndstooth aims to reach, marketing and advertising efforts to raise awareness via social media and other local efforts will naturally spill over to this group of consumers. Students will naturally gravitate towards coffee shops as a place to study, and although Houndstooth would prefer to avoid “campers,� students hold a degree of word-of-mouth value to tell their friends, family and co-workers about Houndstooth.

Target Audience Target Market

Core Group

Spillover

1

City-Data. (Rosedale)

12

Geographic Region of Target Market & Core Group

Measurement Houndstooth will have an internal inventory system that will record how much product and pounds of whole beans are being sold. To measure loyal customers, Houndstooth can administer an in-store survey to all customers which ask assorted questions, including how often they stop by Houndstooth each week. A “loyal� customer will be someone that has been to Houndstooth at least three times.

The first 50 customers that fill out the survey can redeem it for a free cup of coffee. This feedback will also be beneficial in determining how they heard about Houndstooth as well as gauging how knowledgeable they are about direct trade and sustainability.

Positioning Statement For 30-50 year-old Austinites who are passionate or have potential to be passionate about coffee, Houndstooth is the neighborhood stop where coffee lovers can share the same space.

13

Product We will be using a “pull” method to gain loyal customers. It is important that customers know that the product is direct trade and sustainable, and baristas will hold a large hand in educating customers about the product and quality of Houndstooth coffee.

Price Aha! Factory conducted a focus group and discovered that generally, people are willing to pay more for higher quality in regards to coffee (see Appendix). Therefore, the slightly more expensive cost of Houndstooth coffee is consistent with the brand image. If Houndstooth markets its coffee as being “premium,” customers will be willing to pay the higher price that Sean has set for this quality of coffee.

Promotion In order to be consistent with a green and sustainable image, Aha! Factory recommends that Houndstooth offer a price promotion for bringing in a personal mug or thermos. Starbucks does a similar promotion where customers receive 10 cents off their drink if they bring in their own mug or thermos. To remain competitive and support eco-friendly practices, Houndstooth should honor a 25 cent discount on drinks when people bring in their own mug or thermos. This should not substantially take away from profits and will reduce costs for paper cups and lids while fostering a green environment which is popular in cities like Austin1.

Other Goals As Houndstooth begins to meet these objectives, they will develop a consumer base that acknowledges the strength of the product and is willing to pay more for higher quality. In addition, if the company is able to meet the outlined objectives, Houndstooth will be able to sustain their business, make a profit and have potential for growth in the future.

1

SustainLane. “2008 City Rankings.” http://www.sustainlane.com/us-city-rankings/

14

Media Recs

Media Recommendations Media efforts will create awareness that leads to curiosity about the Houndstooth brand and new location. This curiosity will allow people who are interested to come in and try the coffee at Houndstooth themselves.

Key Media Problem Houndstooth must find creative ways to engage the consumer on the digital space. Social media will be used to instigate word-of-mouth marketing that will build awareness of Houndstooth while other digital media efforts will serve to maintain Houndstooth’s web presence.

Target Audience The target audience will be a combination of Austin residents 30-50 but will also include people from Generation Y which is loosely defined as those born between 1982 and 1995. Social media and digital efforts will primarily reach the younger segment of the target audience because Generation Y is more accustomed to using the digital space as a connector and not just an information source1.

The general target audience, regardless of age, will be exposed to Houndstooth’s presence on the internet, as the home page will be Houndstooth’s main information source for hours, Sean’s blog, and barista information.

Objectives In terms of reach, Houndstooth will strive for: 1) 300 Facebook fans by the end of August 2010 2) 200 Twitter followers by the end of October 2010 3) 200 YouTube views by the end of December 2010 On top of looking at the number of Facebook group members, Houndstooth will allow Facebook group comments and “likes” to determine the level of Facebook fan interaction. Social media will operate on a continuous schedule, while events advertised online are flighted. Aha! Factory will record the benchmark numbers right before opening day in order to measure its growth.

Strategy Facebook A Houndstooth Facebook fan page will be used for interaction with fans. Interaction can be measured by the number of fans, comments and likes on different subjects posted. Subjects can include coffee facts and links to encourage discussion and input. Having the Houndstooth group fan page displayed on a user’s profile is also free publicity and branding. Also, posts to encourage visitors in the Rosedale neighborhood to attend sampling parties will be posted in the “Rosedale Neighborhood in Austin” Facebook fan page.

1

Daily49er. “Social Media Makes its Mark on Younger Generation” http://www.daily49er.com/news/social-media-makes-its-mark-on-younger-generation-1.2194225

16

Twitter Twitter will be used for Sean to spread any related articles or events he wants to mention. Any press mentions on Houndstooth can be referenced here, as well as Direct Trade Nights and coffee tastings.

“Tweet Offs” will be instigated on Twitter when Sean makes an announcement that the first ten users to mention Houndstooth in a tweet will get a free cup of coffee. Sean can easily see who the first users are, and they can come in and redeem their prizes. Tweets will spread the word on Twitter about Houndstooth, and the number of people who see them will exponentially grow, depending on how many followers each tweeter has. Also, Sean can post related articles and facts about coffee to promote coffee knowledge since Twitter is a very link-friendly medium.

The following is an example of a Tweet that Sean can post to stimulate curiosity: Come out to Houndstooth from 5-7pm today for an Intelligentsia sampling party! 1:03 PM May 10 via web YouTube Videos of baristas will be shot to show how they make certain coffee beverages and posted on YouTube so that potential customers can identify with the barista before they step foot inside the shop. Primary research that Aha! Factory conducted showed that while web sites are a reference point, people find blogs and videos more interesting and interactive (see Appendix).

Website/Blog The Houndstooth web site will have general information on the shop such as hours, menu, and also include barista profiles that allows familiarization with the baristas. This would include general info such as name and fun facts. The main site will link to a coffee blog that will be started by Sean where he can post articles about coffee that promote interest in the coffee culture. He can also post pictures taken during his travels to impart coffee knowledge and allow visitors to identify with his goals.

Visitors to the blog can be measured in terms of interaction, or how many comments are left on posts.

This can provide an engaging way for consumers to interact with Sean while feeding off his coffee insights.

Austin360 Events Austin360 has an events section where anyone can submit events going on in the community.

Houndstooth can submit the grand opening party, coffee tastings, and Direct Trade Nights for no charge and free publicity. This would also be beneficial because Austin360 is a popular Austin-based entertainment site with lots of regular visitors.

Google AdWords Search is a very important part of digital efforts. The target audience that tries to find information on coffee in Austin will reach awareness if they see Houndstooth as a result. The search keywords “coffee in Austin” will generate Houndstooth as a paid search result for the cost of 5 cents per click.

10 clicks will be the maximum number allowed each day, just so the budget is controlled. Google Analytics can easily measure trends in visits generate from the keywords. Search engine marketing will be a big part of traffic generation to Houndstooth’s main website.

17

Advertising Recs

Advertising Recommendations Target Target Market The target market is a subdivision of the target audience. Like the target audience, these adults are 30-50 years old and are college educated, financially successful and open to new experiences. This group lives in Rosedale or other nearby neighborhoods. Research shows that a majority of residents in these neighborhoods are within the primary target age range and are also deeply involved with the local community1. According to interviews conducted by Aha! Factory, their coffee preferences are based on location and convenience (see Appendix). This group holds potential to grow Houndstooth’s core group through those intersted in specialty coffee.

Core Group The core group is a subdivision under the target market. This is the loyal consumer base that Houndstooth aims to grow. Anti-Starbucks and anti-corporation, they are the coffee enthusiasts who are educated about specialty coffee and understand why a pound of coffee beans can cost over $100. These consumers understand coffee bean trading practices and are willing to spend the extra dollars in support of coffee bean farmers and sustainability. Like the target market, this core group primarily lives or works in the area around Houndstooth.

Message Houndstooth offers rich coffee and education through superior beans and roasters.

Intended Effects Aha! Factory will create awareness of Houndstooth’s brand and product.

Creative Brief Why are we advertising?

Houndstooth is a new coffee shop that needs to be introduced to Austin, but more importantly, its local surrounding neighborhoods.

What will this advertising do?

Stimulate curiosity, awareness and knowledge of Houndstooth’s location and specialty coffee.

Who are we talking to?

Core Group: Coffee junkies or aficionados that live or work in close proximity to Houndstooth.

Target Market: 30 – 50 year olds living and working in close proximity to Houndstooth.

What do we know about them?

Target Market: 30-50 years old who are college educated, financially successful, and open to new experiences. This group lives in Rosedale or other nearby neighborhoods. Research shows that a majority of residents in these neighborhoods are within the primary target age range and are also deeply involved with the local community. Their coffee preferences are based on location and convenience. Ultimately, this group is a potential core consumer group interested in specialty coffee.

1

City-Data. (Rosedale)

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Core Group These consumers know right away what they want to order and prefer specialty coffee. They are invested in their neighborhood community, are white-collared and highly educated. They also understand the quality and nuances of coffee and its processing practices. This group primarily lives and works in the area around Houndstooth.

SMIT (Single Most Important Thing) Houndstooth’s coffee is highly crafted for coffee enthusiasts and open-minded people.

Why should they believe it?

Highly trained baristas utilize specialty roasted beans and premium equipment for superior coffee.

Tone & Manner Inspirational, relaxed, and welcoming.

Much of Houndstooth’s outward communication will consist of coffee education and tidbits (e.g. on Facebook and Twitter). All of its communication will be transparent and authentic.

Executions T-Shirts Creative or thought-provoking T-shirts can be created as a walking form of promotion that will catch the attention and stimulate curiosity of people in the community. The overarching goal of this strategy is to generate word-of-mouth buzz about Houndstooth around Austin. The initial shipment will be 60 T-shirts for Houndstooth to hand out at various events in Austin, shared with loyal customers and sold in the store. Creative T-shirt designs will spark interest or conversation between those who see and wear the T-shirts. T-shirts can also be sold at Houndstooth and used as a prize in social media contests (e.g. be the first to tweet about Houndstooth and win a Houndstooth T-shirt). The intended effect of the T-shirts is to stimulate curiosity so that people will seek more information and be motivated to visit Houndstooth. The following is an example to jumpstart future ideas for T-shirt designs.

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Direct Mail (Doormat Advertising) Aha! Factory suggests that Houndstooth use doormat advertising. Aha! Factory discovered the idea from a Swedish real estate firm that used this execution. The newly opened firm wanted to invite residents of a nearby neighborhood to its grand opening party via the customized doormats with party information on the back. The results were impressive; the doormats increased awareness of the firm and 30% of those who received doormats attended the party1. This case study shows that doormat advertising successfuly catches the target’s attention and communicates awareness of the brand. Similarly, Houndstooth is a new business and seeks to connect with the local community.

Thus, doormat advertising would be most effective if utilized in the nearby Rosedale neighborhood where Houndstooth hopes to build upon its core consumer base. These are tight-knit communities containing houses that are small and closely spaced together, which lends Houndstooth the opportunity to announce the grand opening in a special, personable and practical way. The welcome doormats (large, printed paper, to save money) will be placed on 100 doorsteps closest to Houndstooth. The doormats will encourage them to bring a friend or neighbor. These will harmlessly sit on top of pre-existing doormats or will conveniently be the first doormat for lucky residents. The front, or face-up side, will anonymously say “Welcome” against a textured brown background to promote curiosity. The backside will be an invitation to Houndstooth’s grand opening and will explain that Houndstooth is a new, local coffee shop that has finally opened. Listed underneath the heading will be the date, location and other information (website url and a blurb about Houndstooth’s profile and mission statement). These doormats will effectively inspire curiosity, awareness and knowledge about Houndstooth’s existence and will ultimately drive people into the shop. Instructions will direct residents to bring the doormat with them to claim free coffee samples.

Doormat Advertising Mock-up

1

Ads of the World. “Christer Magnusson Doormat.” http://adsoftheworld.com/media/dm/christer_mag nusson_doormat

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Taste of Austin This is an annual food festival held in Austin typically at the end of January. This event is designed to bring the top eateries in Austin to the general public in an organized setting. Here, guests are eager to learn about and try new places in Austin. Guests purchase tickets and try different food stands at the event. This is a great opportunity for Houndstooth to reach a large portion of the population cultured in fine foods and allows patrons to sample their superior coffee. Houndstooth will have to register through the Taste of Austin Web site by the designated deadline and prepare to bring enough coffee samples to approximately 2,000 attendees. Booth fees are $300. Houndstooth could also bring photographs and T-shirts to promote and publicize its first year in operation. The amount of samples and T-shirts handed out will be the measurement for how many people we reach through this event.

Taste of Austin will serve as an overarching community engagement for all of Austin and will invoke widespread curiosity via coffee samples. This effort will supplement Houndstooth’s investment in its more intimate, neighborhood community.

Outdoor Chalkboard Houndstooth will be one of five tenants along the new shopping strip on North Lamar. Since they will not be the only business, there will be customers from other shops walking by Houndstooth.

Therefore, Houndstooth should set up an A-frame chalkboard outside its entrance in order to stimulate curiosity for outdoor foot traffic. It will mainly serve as an announcement board for promotions, upcoming events and potentially Gowalla updates (see additional recommendations section for Gowalla). For example, the top five Houndstooth frequenters on Gowalla will be recognized on the board at the end of each week in order to thank them. This could mean that they will be offered special discounts. These promotions will not always be running since Sean does not want to dilute Houndstooth with insincere customers that only seek discounts. This chalkboard will be able to help create a community because it will contain content that will welcome Houndstooth regulars and also engage patrons of other shops.

Measurement For the doormats, Houndstooth will count how many people bring their doormats to receive free coffee samples. After reviewing the success of the first wave of doormat advertising, Houndstooth will determine whether or not to invest in a second wave of doormat advertising to different households in the Rosedale community. Houndstooth’s presence at Taste of Austin will be measured based on the number of attendees who visit the Houndstooth booth. T-shirts will be measured according to how many are made and given away, and the level of awareness of these T-shirts can be assessed through surveys conducted (see measurement section under Marketing Recommendations).

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Public Relations

Public Relations Aha! Factory has designed a public relations plan that brings the Houndstooth product and brand to the forefront. It is Houndstooth’s superior coffee, name and logo that will get people through the door both by message and through creative strategies. Whether the target’s curiosity is first stimulated when learning about Houndstooth coffee in a local publication’s article, sampling a taste as they wait to get into Uchiko, reading a review on Yelp or finding out through another one of our tactics, it will ensure that they are aware of Houndstooth. These people will hopefully develop into a loyal consumer base.

Objectives Target Aha! Factory’s various public relations efforts focus on reaching the target audience and target market which both include adults ages 30-50. The target audience consists of those who are financially successful and read local news such as the Austin Chronicle or the Austin American-Statesman as part of their morning routine. Both college educated and open to new experiences, these adults enjoy coffee but are not necessarily educated about specialty coffee or coffee bean trading practices. These Austinites are interested in the local community and regularly participate in local events hosted in Austin. The target market is a subdivision of the target audience and focuses on adults who live or work in the surrounding neighborhoods of Houndstooth. Research shows that a majority of these residents and workers are in the target age range of 30-501. Because they are locally involved and open to new experiences, this target holds potential for Houndstooth to grow its core consumer base.

Message 1. Houndstooth exemplifies the new wave of coffee shops that offer a sustainable product in its purest form.

2. The company only selects the best beans to produce the best quality coffee available.

3. Houndstooth seeks to empower coffee culture by bringing coffee connoisseurs together to enjoy a product that is limited in this market. For those who are not experts on coffee but are willing to learn, Houndstooth also serves as a place to teach people about coffee culture and quality coffee.

Intended Effects The intended effects of these public relations suggestions are to encourage people to learn about coffee, direct trade and its journey from the bean to the cup. By increasing people’s appreciation for quality coffee, Houndstooth can steadily build its consumer base with an emphasis on attracting repeat and regular clientele. Through coffee knowledge, this target audience will become educated coffee connoisseurs who can appreciate Houndstooth and the product it offers.

1

City-Data. (Rosedale)

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Measurement The overall measurement of the awareness campaign, including the effectiveness of public relations tactics will be executed through an overarching survey that is further elaborated in the evaluation section.

To specifically measure the media relations portion of the public relations plan, after a story is published, a simple phone call to the media outlet, or a follow-up email contact with the writer, blogger, or editor, can be used to determine the readership of that particular publication. From there Houndstooth will have a better understanding of the reach of the article. More specific measurement can be taken in the outlined evaluation survey. Here in a question such as “How did you first hear about Houndstooth?” an answer choice can be “Article in a local publication or blog.”

In terms of the events that the public relations plan has developed, measurement for their success will primarily depend on attendance. The goal of this section and the majority of the campaign is awareness, and if customers have the initiative to attend an event after hearing about it, then Houndstooth has succeeded at making them aware of the brand. A simple headcount of attendees can be useful when considering the timing and other specifications for future events. Further measurement can be executed in the full evaluation survey to get qualitative information on what compelled customers to come to events.

Strategy Media Relations Aha! Factory recommends using traditional media relations tactics to get news stories and publicity on Houndstooth. This will be executed by contacting local food and drink writers and bloggers and pitching potential stories that could either be about Houndstooth or at least mention the coffee shop or its owner Sean Henry.

This can be achieved by pitching interesting angles to local food and drink writers. Some potential angles include: “local shop follows national trend by serving coffee in its purest form,” “direct trade and its presence in Austin,” an article about one of Houndstooth’s events, or potentially getting Houndstooth on a list of the “best coffee shops in Austin.” A sample press release and a media contact list that stories can be pitched to are found at the end of this section.

One specific media outlet that Houndstooth should take advantage of is the Rosedale community newsletter, “The Rosedale Newsletter.” Rosedale is a neighborhood near Houndstooth, and some of its residents are members of the target audience and target market. The residents of this neighborhood receive “The Rosedale Newsletter,” therefore a Houndstooth mention could reach many nearby potential customers. Because this is an ad-free newsletter, Aha! Factory feels it would be beneficial to contact the publication and pitch to them that Houndstooth is a new neighborhood coffee shop that can cater to the Rosedale community. It is also possible to see about sponsoring a section or article of the newsletter. For example, “July Events - brought to you by Houndstooth Coffee.” By being mentioned or involved in the newsletter, it shows members of the Rosedale neighborhood who are engaged enough in the community to read the newsletter that Houndstooth is new to the neighborhood and is showing interest and involvement in Rosedale.

Aha! Factory also recommends sharing owner Sean Henry’s background in the Austin coffee sector 25

and his ongoing education in coffee knowledge with Austin food and drink writers. By developing his reputation as an expert on all things coffee, when it is time to write a coffee related story, Henry can be the expert the media contacts turn to for information or a quote. A quote in an article will likely come with a mention of Houndstooth, and readers will then perceive Houndstooth as an Austin shop run by a real coffee guru.

Events Aha! Factory wants to host events to 1) generate word of mouth 2) become entrenched in the community and 3) spread coffee knowledge.

Coffee tastings are a monthly event that Houndstooth can hold, where customers can sample different blends and roasts of coffee that Houndstooth provides. In these tastings, customers can try and expose themselves to vastly different types of coffee while learning about the origin of beans, tastes and pairings that go well with each roast. This is a good opportunity for people to learn what types of coffee they prefer, while enticing people to try and potentially purchase whole beans.

This is also a wonderful chance to impart coffee knowledge on the Houndstooth community while showcasing their superiority in terms of coffee selection. Another way to inspire people to join coffee tastings is to invite coffee roasters or influential members in the coffee community to speak about coffee themselves. This will shape Houndstooth as the predominant coffee shop in Austin.

Yelp Appreciation Event is a way of reaching the existing and developed Yelp community. In store and social media promotion of the event will bring “Yelpers” through Houndstooth’s door, ideally with their computers or smart phones in hand. They will have the opportunity to get discount coffee if they say they are there for the Yelp event, and will also have time to speak with owner Sean Henry to learn more about Houndstooth, the product and direct trade. From there, they can review Houndstooth on Yelp if they feel compelled to, or go on to at a later time. People oftentimes look at reviews before visiting a new place, and Yelp is one of the front runners of online review Web sites with an established community. By extending a friendly hand to this community with an event for them, Houndstooth could get good reviews and ratings, and in the long run get many more people through the door.

Direct Trade Night is an internal event that Houndstooth can host within its store in which once a month a local company can occupy a table at Houndstooth and share its products or services with guests. For example, Houndstooth can invite a local pottery company such as Feats of Clay to Direct Trade Night, and they can sell mugs, cups, or other products to Houndstooth patrons. While this will not bring in any direct revenue to Houndstooth, it will demonstrate their devotion to local Austin businesses, while simultaneously introducing other communities that surround these businesses to Houndstooth as a cross promotional effort. Whether people come in as Houndstooth customers or because they heard about the company at Direct Trade Night, baristas and management can take the opportunity to spread some coffee knowledge and explain what direct trade is in the coffee world.

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Sampling Houndstooth can sample their coffee to neighboring shops as well as the Rosedale neighborhood to increase awareness of Houndstooth in the area while showcasing their product. Places that Houndstooth can sample are outside of Uchiko while patrons are waiting for their table, outside of Taco Deli during the lunch rush and at the Rosedale community pool during the summer months.

During evening hours, sampling can be done with more dessert-like coffee drinks or with beer and wine in order to entice people to learn more about Houndstooth and come back as a Houndstooth guest.

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Example Press Release For Immediate Release April 22, 2010 Houndstooth, a pattern of coffee and people AUSTIN, Texas-- Houndstooth, a local coffee shop new to Austin, will continue the recent national trend of taking coffee seriously.

The recent New York Times article “New York Is Finally Taking Its Coffee Seriously,” stresses how New York is treating coffee as a craft and putting emphasis on how it is grown, brewed, and stored.

This is something that Sean Henry, owner of Houndstooth knows a lot about. Henry, former manager of Café Medici on West Lynn, opened Houndstooth so that Austinites could have a place to get superior coffee from the best roasters.

Most coffee from Houndstooth will be direct trade, meaning that beans will be purchased directly from growers at a fair price.

This is well beyond the Fair Trade logo popular at certain establishments. Fair Trade is an improvement over historical practices, but it requires a fee from growers and only exists in certain areas limiting the coffees available.

“Houndstooth coffees are sustainable. All the coffees are purchased at above fair trade prices and some are organic,” according to Henry. “From farming practices to payment, the coffees we buy taste great, support the farmer’s work, and the earth. They respect all links of the coffee chain.”

Intelligentsia Coffee and Tea and Cuvee Coffee Roasting Company are two of the roasters that will supply Houndstooth with their directly traded coffee.

Direct trade broadens coffee-purchasing options and allows for the development of a personal relationship with growers, all the while permitting the farmer to demand a top price for the beans.

Henry also wants to Houndstooth to emphasize coffee education, the way that wines bars strive to teach people about their products.

“Ideally, customers will grow to appreciate the nuance of coffee and be willing to help others do the same.” says Henry.

Houndstooth is located on 42 St. and North Lamar, in a retail space with a new TacoDeli, Uchiko the newest Uchi location, and Floyd’s 99 Barbershop. ### 28

Austin Food Media List

Austin Food Media List

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ADDITIONAL RECS

Additional Recommendations Houndstooth can use Polaroid cameras to allow guests to take pictures of themselves hanging out at Houndstooth. It will be encouraged that guests write their name and date on the pictures. These photos can then be put up on a community bulletin board for people to look at during their stay. By having their photo on a wall at Houndstooth, this will make people feel like Houndstooth is really part of their lives. It is a way of interacting with guests and allowing them to opt in to community, rather than force it in an inorganic way. Having their photograph on the wall will make them feel like they are valued guests, and it will give baristas the opportunity to memorize the names of regular guests.

Gowalla will provide a way for the digitally tuned-in segment of the target to stay in touch through their mobile phones. It’s a location-based social network that uses game mechanics to motivate people to go discover places, meet friends, share experiences and find rewards. Visitors can checkin at different locations in Austin and let their friends know where they are through this application.

For example, when someone checks into Houndstooth, they can share that on their Facebook and provide free publicity for Houndstooth. Therefore, friends that use Gowalla and/or Facebook will become more intrigued and curious as more customers use Gowalla to check into Houndstooth.

Similar to the application FourSquare, Gowalla was founded in Austin, which sticks true to support of Austin local businesses. This mobile application provides a medium for both a digital and physical community via real-time GPS tracking. Gowalla acts as a digital scavenger hunt game and allows users to interact with each other by swapping digital items found at every check-in location. If found, some items like a digital coffee can be traded in for actual coffee. Therefore, Gowalla inherently promotes community, interaction among its users and incentives to go to Houndstooth more often.

Moreover, Gowalla “trips” allow Sean to create a group experience checking in at other local coffee shops to sample coffee varieties and to educate his customers. These trips will promote community and mutual support even among other coffee shops around the area. This in turn will promote usage of Gowalla, which will lead to easier measurement and knowledge of the loyal customer base since top frequenters and unique visits can be tracked on Gowalla’s site. By gauging loyal customers, Houndstooth will be able to reward them based on frequency of check-ins and picking up special digital items at the shop.

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MEASURE & EVALUATE

Measurement and Evaluation Marketing Houndstooth will have an internal inventory system that will record how much product and pounds of whole beans are being sold. To measure loyal customers, Houndstooth can administer a short instore survey to all customers which ask assorted questions that determine loyalty and perception of Houndstooth’s unique selling proposition (see example on next page). For measurement purposes, a “loyal” customer will be defined someone that has come in more than three times prior to taking the survey. The first 50 customers that fill out the survey can redeem it for a free cup of coffee for their feedback. This feedback will also be beneficial in determining how they heard about Houndstooth as well as gauging how knowledgeable they are about direct trade and sustainability. These surveys will be implemented every three months after the opening for a week, where the first ten respondents will be able to have a free cup of coffee. This will provide a less biased response, especially if there are particular customers who come on a specific day of the week.

Media Social media efforts to build fans and awareness for Houndstooth will be measured by the number of fans on Facebook, followers on Twitter and page views on YouTube. Comments, retweets and other user interaction on these Web sites will serve as valuable qualitative insights on what consumers think and feel about Houndstooth. When events are posted on the Austin360 calendar, guests can simply be asked to fill out an informal guestbook that states how they heard about the events at the entrance of the event. The lack of formality fits with Houndstooth’s vibe, and visitors will not feel intimidated to express any other thoughts. Gowalla spots will be shown on the Web site, Facebook and on mobile applications, and Houndstooth will be able to measure check-ins on the Gowalla Web site. Google AdWords will be measured by Google Analytics, which gives qualitative information on how long on average a visitor spends on a Web site, where the visitors are located and trending over time.

Advertising - For the doormats, Sean will count how many people bring their doormats to receive free coffee samples. Sean will determine whether or not he wants to invite more households with the doormats based on initial results. During Taste of Austin, the amount of samples and T-shirts handed out will be the measurment for how many people are reached through this event. The effectiveness of the outdoor chalkboard will be measured by how many patrons come in and refer to its promotion or topic - either Sean or any barista can ask if they noticed the promotion or any news written on it.

T-shirts will be measured according to how many are made and given away, and then the level of awareness of these T-shirts can be assessed through one of the surveys conducted.

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Public Relations To specifically measure the media relations portion of the public relations plan, after a story is published, a simple phone call to the media outlet, or a follow-up email contact with the writer, blogger, or editor, can be used to determine the readership of that particular publication. From there Houndstooth will have a better understanding of the reach of the article. More specific measurement can be taken in the outlined evaluation survey. Here in a question such as “How did you first hear about Houndstooth?” an answer choice can be “Article in a local publication or blog.”

In terms of the events that the public relations plan has developed, measurement for their success will primarily depend on attendance. The goal of this section and the majority of the campaign is awareness, and if customers have the initiative to attend an event after hearing about it, then Houndstooth has succeeded at making them aware of the brand. A simple headcount of attendees can be useful when considering the time and other specifications for future events. Further measurement can be executed in the full evaluation survey to get qualitative information on what compelled customers to come to events.

Sample Survey Questions

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BUDGET

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Campaign Flowchart & Budget

Campaign Budget Breakdown

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CONCLUSION

Conclusion Aha! Factory is confident that if Houndstooth follows the recommendations in this plan, awareness of the Houndstooth brand and message will be maximized with a reasonable budget. All of the strategies are centered around creating brand awareness by inspiring curiosity, which will in turn increase Houndstooth’s core consumer base. Our strategies are specifically tailored to tap into existing communities or create external communities that will gather inside of Houndstooth. Each strategy was constructed with this understanding of the product. It will be the curiosity that brings people through the door, but the coffee that will make them stay.

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APPENDIX

Intercept Interviews Intercept Interview: Kelly Location: Starbucks 45th and Lamar Date & Time: March 28, 2010 at 2:15pm Q: Where were you before Austin and how long have you been here?

A: I came from Tampa, Florida and I’ve been here for about 10 months.

Q: Do you have a family, spouse, or kids?

A: Nope.

Q: What kinds of activities do you enjoy doing in your leisure time?

A: I like to watch movies, hang out at coffee shops and spend time with my friends.

Q: How does coffee and coffee shops play a role in your life?

A: I always study at coffee shops. Also, I’m a grad student and I need the caffeine.

Q: With regards to coffee shops, what are the most important qualities you look for?

A: I want it to be relatively inexpensive, good selection, good ambiance, some background noise but not too much, good quality and fantastic baristas.

Q: How long do you typically stay when you go to a coffee shop?

A: Usually more than 2. Sometimes up to 5-6 depending on how much homework that I have to work on.

Q: If a coffee shop sold beer, would you go more often at night hours?

A: Not really because I don’t really think it would help me study, but I would potentially go to coffee shop for beer for social reasons.

Q: Do you ever chat with the baristas at coffee shops?

A: All the time-they’re great!

Q: Do you ever meet or interact with people you don’t know at coffee shops?

A: Yeah, every now and then. Sometimes also not by my own choice--I actually get hit on a lot at coffee shops.

Q: As someone who frequents this particular coffee shop, what do you know about the regulars who attend this location and where they might come from?

A: They’re usually from this general area. They are mostly friendly and chatty. Many of the people here like to stay and study and enjoy room to spread out. Also, I’ve noticed that most of the people here enjoy just regular coffee.

Q: When buying coffee do you prefer it to be fair trade/direct trade? Would you pay more for fair/direct trade coffee?

A: Yes, I would definitely pay a little more for fair trade coffee.

A-2

Q: Since we’re undergrad students, we’re still learning about understanding and tasting different kinds of coffee. Do you know a lot about coffee and can you taste the differences in quality?

A: Yes I’ve come to be able to pick up notes in different roasts.

Q: Do you ever visit restaurant/coffee shop websites? If so what do you visit the sites for?

A: Yes. I like looking at the selection (amount and quality), prices, whether or not they have wireless and where they are located.

Q: Would you be interested in learning more about coffee if the opportunity presented itself?

A: Yes definitely.

Intercept Interview: Ryan Location: Starbucks 45th and Lamar Date & Time: March 28, 2010 at 2:30pm Q: Where were you before Austin and how long have you been here?

A: I came from Salt Lake City and I’ve been here for about 8 months.

Q: Do you have a family, spouse, or kids?

A: Nope.

Q: What kinds of activities do you enjoy doing in your leisure time?

A: I enjoy listening to music and I’m a martial artist.

Q: How does coffee and coffee shops play a role in your life?

A: I always study at coffee shops-I love to get reading done here (grad student) Q: With regards to coffee shops, what are the most important qualities you look for?

A: Good coffee is the first thing I look for. Also lighting and space, tables with room and a comfortable environment.I also like a little bit of noise but not too much.

Q: How long do you typically stay when you go to a coffee shop?

A: At least an hour-sometimes more depending on how much work I have to do.

Q: If a coffee shop sold beer, would you go more often at night hours?

A: Probably not.

Q: Do you ever chat with the baristas at coffee shops?

A: Every once in awhile-they’re pretty friendly here.

Q: Do you ever meet or interact with people you don’t know at coffee shops?

A: Occasionally. It’s not usually my goal, but you tend to see a lot of the same people here.

Q: As someone who frequents this particular coffee shop, what do you know about the regulars who attend this location and where they might come from?

A: I really have no idea. I know a lot of the people that stick around to study tend to be undergrads.

A-3

Q: When buying coffee do you prefer it to be fair trade/direct trade? Would you pay more for fair/direct trade coffee?

A: Yes, I would definitely pay a little more for fair trade coffee, but it depends on how much more.

Q: Since we’re undergrad students, we’re still learning about understanding and tasting different kinds of coffee. Do you know a lot about coffee and can you taste the differences in quality?

A: Yes I can pick up types, blends and sometimes even relative ages of different coffees.

Q: Do you ever visit restaurant/coffee shop websites? If so what do you visit the sites for?

A: Not really unless I’m looking for something specific.

Q: Would you be interested in learning more about coffee if the opportunity presented itself?

A: Yes definitely.

Intercept Interview: Abdul Location: Starbucks 45th and Lamar Date & Time: March 28, 2010 at 2:45pm Q: Where were you before Austin and how long have you been here?

A: I have lived in Austin for six years. I came in 2004 from Dubai.

Q: Do you have a family, spouse, or kids?

A: No, I do not.

Q: What kinds of activities do you enjoy doing in your leisure time?

A: I usually go to the movies, and I enjoy the theater. Also, I go to coffee shops a lot. Sometimes to get work done, but sometimes just in my free time.

Q: How does coffee and coffee shops play a role in your life?

A: I am in coffee shops all the time, usually about five times a week. I go to get away from the distractions and get some work done, as well as study and write.

Q: With regards to coffee shops, what are the most important qualities you look for?

A: I look for outlets first and foremost, because I can’t get anything done without my computer. Then I like a place with decent space, and natural light like this place doesn’t hurt. Noise isn’t so much a big deal to me though.

Q: How long do you typically stay when you go to a coffee shop?

A: These days I tend to stay about three to four hours, but I used to stay longer.

Q: If a coffee shop sold beer, would you go more often at night hours?

A: It wouldn’t really influence when I go. I’m not oppose to it, but I go when it fits in my schedule. For me, that’s typically in the morning. Hours of operation are really important to me, because if I go to a coffee shop, I don’t want to go for only an hour or two. I want to make sure I can stay.

Q: Do you ever chat with the baristas at coffee shops?

A: Sometimes, not typically.

A-4

Q: Do you ever meet or interact with people you don’t know at coffee shops?

A: Now and then, when someone notices a book I’m reading and we discuss it.

Q: As someone who frequents this particular coffee shop, what do you know about the regulars who attend this location and where they might come from?

A: I’m from around here so I assume a lot of the people who come here are too. I do see a lot of familiar faces, so I assume we have similar schedules.

Q: When buying coffee do you prefer it to be fair trade/direct trade? Would you pay more for fair/direct trade coffee?

A: Yes, I would definitely pay a little more for fair trade coffee, but it depends on how much more.

Q: Since we’re undergrad students, we’re still learning about understanding and tasting different kinds of coffee. Do you know a lot about coffee and can you taste the differences in quality?

A: I’m not sure what that is. To me, coffee is coffee.

Q: Do you ever visit restaurant/coffee shop websites? If so what do you visit the sites for?

A: I typically look for basic store info like menu, hours, location. I also read reviews sometimes on Yelp and other sites.

Q: Would you be interested in learning more about coffee if the opportunity presented itself?

A: Yeah I’m always up for learning more about something.

Intercept Interview: Michael Location: Starbucks 45th and Lamar Date & Time: March 28, 2010 at 3:00pm Q: Where were you before Austin and how long have you been here?

A: I’ve been here for 32 years now. I’m originally from Washington state.

Q: Do you have a family, spouse, or kids?

A: Yep, I’m married and have a few kids.

Q: What kinds of activities do you enjoy doing in your leisure time?

A: I usually try to stay active in my free time, whether it be hitting the gym or playing with my kids.

Q: How does coffee and coffee shops play a role in your life?

A: I’m usually really busy and coffee keeps me awake.

Q: With regards to coffee shops, what are the most important qualities you look for?

A: What I really care about is that it’s comfortable. I want to sit on a comfortable chair or couch and relax. Also it helps if a place is not too noisy. I don’t mind a little bit of soft music playing though.

Q: How long do you typically stay when you go to a coffee shop?

A: I stay for about an hour, maybe two, but not usually more than that.

Q: If a coffee shop sold beer, would you go more often at night hours?

A: No I wouldn’t. I like to go on weekends and mornings. I’m with my family at nights.

A-5

Q: Do you ever chat with the baristas at coffee shops?

A: I don’t really talk to them beyond putting in my order. I’m not against it, but it’s just not what I usually do.

Q: Do you ever meet or interact with people you don’t know at coffee shops?

A: Not really, I usually come in, get coffee, and start reading the paper or something. I tend to keep to myself at coffee shops.

Q: As someone who frequents this particular coffee shop, what do you know about the regulars who attend this location and where they might come from?

A: This is actually my first time here. I’m not really from this area, I was just passing through.

Q: When buying coffee do you prefer it to be fair trade/direct trade? Would you pay more for fair/direct trade coffee?

A: I don’t know much about that, and I’m not really concerned. I just drink normal black coffee.

Q: Since we’re undergrad students, we’re still learning about understanding and tasting different kinds of coffee. Do you know a lot about coffee and can you taste the differences in quality?

A: I know the difference between strong coffee and weak coffee, but not much beyond that.

Q: Do you ever visit restaurant/coffee shop websites? If so what do you visit the sites for?

A: No, not really.

Q: Would you be interested in learning more about coffee if the opportunity presented itself?

A: Yeah, I would probably accept if I thought I could make it.

Intercept Interview: Daren Location: Caffé Medici on West Lynn Date & Time: March 25, 2010 at 5:15pm Q: Where were you before Austin and how long have you been here?

A: I came from Connecticut and I’ve been here for about 5 years.

Q: Do you have a family, spouse, or kids?

A: I live with my brother at the moment.

Q: What kinds of activities do you enjoy doing in your leisure time?

A: I like to watch a lot of soccer and play soccer. I like playing games on the weekend, see films, etc.

Q: How does coffee and coffee shops play a role in your life?

A: I live right down the street so I do lots of homework when I come to coffee shops. I like the coffee here and the espressos are good. Sometimes I’ll go to the one on campus.

Q: With regards to coffee shops, what are the most important qualities you look for?

A: The coffee is first, and then the atmosphere of the coffee shop is second.

A-6

Q: What would you consider to be an ideal atmosphere for a coffee shop?

A: I like something that’s close to Caffé Medici here on West Lynn. The only thing is it could be a bit more “loungy” and maybe have some couches. I like when its quiet and then picks up around 5pm, so I come earlier in the day like this.

Q: How long do you typically stay when you go to a coffee shop?

A: About 2 – 3 hours.

Q: If a coffee shop sold beer, would you go more often at night hours?

A: Yeah I would. It would be nice to be able to go to a place and grab a beer earlier in the evening right after work and then maybe head downtown afterwards.

Q: Do you ever chat with the baristas at coffee shops?

A: All the time. I usually come before noon so I know most of the baristas.

Q: Do you ever meet or interact with people you don’t know at coffee shops?

A: Yeah, ever now and then. You get to know the regulars and you see them over and over again and start talking to them. It’s not something I would have to have in a coffee shop but it’s nice.

Q: As someone who frequents this particular coffee shop, what do you know about the regulars who attend this location and where they might come from?

A: Probably about 60% of the people who come here live around here and walk a 3 – 4 block radius.

Q: When buying coffee do you prefer it to be fair trade/direct trade? Would you pay more for fair/direct trade coffee?

A: I would prefer and pay more for fair trade coffee, but it’s not the biggest factor when deciding to buy coffee.

Q: Since we’re undergrad students, we’re still learning about understanding and tasting different kinds of coffee. Do you know a lot about coffee and can you taste the differences in quality?

A: I didn’t know much about coffee before I came here (to Austin), but my oldest brother who came to town to visit is a coffee addict and has multiple cups a day, so when he came he went out and looked for the best coffee shops in Austin, so now that I’ve been coming here for a while I can tell the difference between macchiatos, espressos, and coffee, and when I go to other places now I can tell the difference.

Q: Do you ever visit restaurant/coffee shop websites? If so what do you visit the sites for?

A: I’ve only ever been to this coffee shop’s (Caffé Medici) website, and I go to their blogs sometimes because they make videos of the baristas doing stuff. I don’t use twitter, but I’m a fan of Café Medici on Facebook.

Intercept Interview: Rod Location: JP’s Java Date & Time: April 3, 2010 at 6:30 pm Q: Why do you go to coffee shops?

A: Good coffee, and there’s one drink I like: latte, enough space to put stuff, quiet, only go to study or read.

A-7

Q: Would you go to a coffeeshop that serves alcohol?

A: I would go to a bar if it were outdoors.

Q: Would you pay more for a cup of coffee that is direct trade?

A: Would not pay for direct trade because price is more important than quality; think you can’t have exponentially higher costs; the farmer’s benefit doesn’t matter to me.

JP’s Java has a machine that brews top coffee for 5 dollars a cup, and I would not purchase that.

Q: How long do you usually stay at coffeeshops, and how often do you go?

A: I usually stay an hour, went to JP’s twice a week.

Q: Did you ever go to hang out with friends?

A: No, I never really go to talk with friends.

Q: What are your favorite coffee shops in Austin?

A: Usually I go to to Flightpath or JP’s.

Q: Do you have friendly interaction with baristas, or would you go to a coffeeshop more if you did?

A: I don’t really talk to baristas, would go to coffeeshops more to hang out if baristas were acquantinances.

Q: What makes you want to go to a coffeeshop?

A: To want to go there, must have good outdoor aesthetically pleasing atmosphere.

Q: Would you ever attend a coffee tasting?

A. No, I would not be interested in free coffee tastings.

Q: Why is JP’s your favorite?

A: JP’s seems to have better quality coffee, people are trained in techniques, and that’s why I go there so much, on top of location.

Q: How do you usually get there?

A: I either ride my bike or take the bus.

Intercept Interview: Daniel Location: Bennu Date & Time: April 5, 2010 at 2:55pm Q: How long have you been living in Austin?

A: Since last August. I moved from College Station and I live on the East Side.

Q: Any Family?

A: No, I just have a partner right now.

Q: Describe how coffee fits into your lifestyle.

A: Coffee always serves more functional purposes. I guess I see it as - ok well it’s going to keep me awake. I’m a students so it’s one of those things that needs to keep me awake. If I drink it at all, which I usually don’t. I usually drink tea, or just juice.

A-8

Q: Do you come to Bennu often?

A: No I used to go to Café Moondy but it closed, which is also on the East Side on 5th street. This is the first time that I’ve actually been here.

Q: Oh ok, so how did you find out about this place?

A: My friend lives right up here on the corner and he told me it’s pretty good so…because I was mourning the closing of Café Moondy (laughter). But it’s cool…it’s not a big deal.

Q: So you said you are a student, what are you studying?

A: I study sociology.

Q: Describe what you consider to be a good cup of coffee A: Largley for functional use. A good cup of coffee is that it’s not too water, but not too acidic. My own cup of coffee is with a little bit of sugar and a little bit of milk.

Q: Do you taste differences between coffee?

A: Well not between styles. I can’t tell the difference between Americano and some other blends. I don’t drink enough of it. You can learn to understand different tastes, right, between wine and beer - but in terms of coffee I can’t taste the difference. I can tell when it’s too acidic or too strong, or not strong enough, but I can’t tell the difference between styles.

Q: Would you be interested tasting events if a coffee shop offered it?

A: So it would be an instructional kind of thing like they do at wine bars? That would be cool, that would be interesting…I would probably try it out. I know I drink a lot of beer so a lot of places will do sampler beers, and then they’ll instruct you to think about the taste...so if you all did something like that it would be really cool.

Q: Describe your ideal coffee shop and walk me through it. What will the atmosphere be like, and what would be the most important qualities?

A: Because I’m a student I’m usually doing work. I’m not saying it has to be dead quiet but a space that might be where I could get out and it could be quiet. If it were really loud inside, or really loud outside, maybe go one or the other, or maybe a backroom of some sort. I don’t want to be completely isolated right? That’s why I came to a coffee shop. At the same time I don’t want it to be roaringly loud. I do like a nice outdoor area because it’s Texas and we have such nice weather, but there also needs to be nice shade.

Q: Oh then have you heard of Mozart’s?

A: No I haven’t…

Q: It’s west…on Enfield if you take it all the way down. Next to that taco…I forget (laughter) but it’s right by the lake with a nice view.

A: That’s pretty cool…that’s pretty far though, I’d definitely have to drive and I can’t ride my bike.

That’s another thing though - locality. I’d like the coffee shop to be 5 -10 miles so I don’t have to worry about driving. The less driving I’d have to do…I like it better. That’s just my personal thing.

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Q: To save money?

A: Yeah to save money, but my car gets good gas mileage. It’s one of those things. I’d rather be out getting some good exercise and enjoy the nice weather rather than being cooped up in a car and being in traffic. You know the way people drive in Austin, and everyone drives nuts. Everyone has somewhere to be in two minutes. We all know it takes 15, 30 minutes to get somewhere. That’s why I ride my bike so I don’t have to stress about those things. If I can ride my bike to my local shop it makes it a nice experience overall – so bike racks would be crucial in my case.

Q: Describe an experience when you just really enjoyed interacting with people at a coffee shop, with baristas, random coffee patrons, or even with your friends.

A: I used to live in the Midwest. It was a college town. It had quite a few coffee shops. There was one particular coffee shop in the morning on my way to school. I would show up and have exact change and would throw it down the table, and the barista would already have my juice ready. Three people would work in the morning shift and they all knew me. I would say hi and open my drink, and I felt like they knew me. It wasn’t this in depth…like we were best friends or anything. It made me feel comfortable in the space. Even though it was such a short interaction it was still a really nice one because we knew what each other wanted and it was kind of an understanding we had. It was one of the things that I really loved. That particular coffee shop I didn’t really like the environment.

There was no outdoor area. They roasted their own beans and I don’t like that smell. Its not a big deal. The weird thing is that I smoked at the time and I should like the bean smell more than that!

Another time is when I used to go to Café Moondy. My partner and I would ride our bikes there on Sunday morning. My partner really loves birds and we have birds. Café Moondy would have a lot of birds, like parrots right above Café Moondy on this tower. They had outdoor seating and sparrows would come and would eat the corn chips people would drop. There was nice shade. The first time we went there my partner was loving it. For her there was a little aviary in there. There was a lot of green and overhanging branches. That was really cool for me because she was really enjoying the space. It was fun.

Q: What about other patrons? Have you ever struck up a conversation with someone randomly?

Even at bars or some other public space?

A: I’m usually not the one that strikes up conversations. Because of what I study, I understand that people have their own personal space. Randomly talking, invading that personal space can often upset people, but not always. For some people it does, and I’m aware of that so I rarely strike up conversations. But people often do it with me and I’m fine with that. It would be weird to have someone study the social but doesn’t interact socially with people, so I’m ok with that. The other day I was at Whole Foods and a woman was doing a crossword. I forget what the question was but it had to do with the 2001 Space Odyssey. She asked us a question. My partner and I said we didn’t know, but we got to talk with her. It turns out she goes out to that particular Whole Foods all the time - she was an older woman in her sixties or seventies. So like I said, I’m less inclined to do it myself. Again, because this is what I do as a grad student, and sometimes the only way to see the world is through my discipline. But sometimes I will – it just depends on the moment and the context. If it’s a shared moment when something strange happens – I’ll be like, “did you see that”. But if it’s just a normal moment and there’s nothing going on then I’ll feel less inclined to interact with them.

Q: So if the opportunity presents itself naturally?

A: Yeah, exactly.

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Q: Do you consider yourself more of a Starbucks kind of guy or more of an independent shop type of guy?

A: Oh yeah I don’t go to Starbucks – I mean I’ll go there if I’m on a road trip and I don’t know of a place. If I’m driving to Oregon, or if I’m in Montana or something I’ll stop (laughter). If I’m in Austin, never. I’ll never stop and drink Starbucks. Although in the Midwest I would go to Starbucks because it was in the library and it was convenient. That was a rarity. Now that I’m in Austin I’ll rarely go, and I haven’t been in years.

Q: Do you typically spend your time reading and studying at a coffee shop?

A: Typically, but like I said occasionally my partner would come. If we’re going to be hanging out it wouldn’t be work based reading. I’ll read a novel or something less directly work related. I’ll read a novel off of the NY Times. Something less academic related.

Q: Is the NY Times your news source?

A: Ill be honest, it’s kind of embarrassing. My news source is more often Huffington Post – it’s a blog.

It’s more cynical and critical than the NY Times. But I’ll read the Times. I just like the Post because they’re more critical. I’m aware it’s more of a blog than a news source which I didn’t know right away…sometimes I’ll read the times, peak at the statesman, and sometimes I’ll look at the chronicle.

If worst comes to worst, I’ll read the USA Today – I guess that’s sort of my hierarchy of news sources Q: How involved are you in social media? Are you connected to any local shop or business that you follow on twitter?

A: No, there’s not reason. I don’t have an aversion to it or anything. I just don’t do it. You caught me at a weird time right now where I’m cut off from a lot of things because I’m studying for my exams and they’re coming up in less than a week. So I’ve been cut off for three months. I barely keep up with my own Facebook - much less with Twitter. I don’t even twitter, I have no idea how it works. I was never on twitter.

Q: Were you more active on Facebook before grad school?

A: It didn’t actually exist. Well it did exist but it wasn’t as popular. I started grad school in 03’ but I picked it up in grad school when moving from school to school, and it was easy to keep ties with old friends….It went from MySpace to Facebook. I really used MySpace a lot because of the music element to it. So anyway, again because of what I study. I prefer talking to people rather than posting notes on their webpage. I prefer seeing them face to face and I’m not saying that’s a better way of communicating with people. I realize there’s a lot that’s lost in terms of facial expression and body language, and that’s all parts of communication. There’s a lot that’s lost in that kind of medium.

But its nice that I can just jump online and say I miss you. I just have that preference. That kind of influences the way my level of dissipation is on electronic mediums…you know I never talk to my partner on Facebook, never. She’s on it all the time and she gets mad and asks why I don’t post on her page. But why? I live with you, I’ll call you, or drive to your work and eat with you. I’d rather do that. For me I don’t want to come off as this anti-technology person. I just like that personal human interaction more. Actually one of my professors does research on internet community. If I talk to her it’s easier through the internet. She’s just a net person. For instance, I was trying to set up a meeting with all my dissertation committee members. I kept trying to email them and setting up times, but finally my partner told me about Doodle. The next thing you know, the meeting was set up in one day. I spent three weeks before trying to set it up and it worked. That’s why i feel like this element of technology is crucial, and is very helpful. Its just a matter of getting that balance in my life of interpersonal interaction - through the internet, and through physical interaction.

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Intercept Interview: Emily Location: Ramsey Park & Pool (Rosedale Neighborhood) Date & Time: April 21, 2010 at 3:22pm Q: Can you tell me about the community around here?

A: Yeah it certainly is a close-knit neighborhood. I’m a babysitter around this area and I’ve lived around here for almost 20 years, and I love it.

Q: Do you read the community newsletter?

A: No but I know my parents are subscribed. Lots of people read that and there’s always something going on. There’s also a listserv that I know reaches the neighborhood.

Q: How old are your parents?

A: Oh they’re around 58-59 years old. Those are one of the oldest people in the neighborhood.

Q: Do you drink coffee? Are you interested in specialty coffee?

A: Yeah I love coffee! I drink it all the time. You mean like Starbucks? Oh like local shops...yeah definitely. I go to local shops all around here.

Q: Have you heard of the new coffee shop opening up near 42nd and Lamar?

A: No, wait where exactly is 42nd? Oh that’s right, down a couple of blocks that way.

Q: Would you be interested in coffee tastings?

A: You mean like wine tastings? Yeah! I would love that..I always go to wine tastings. That’s something I would totally be interested in.

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Area Analysis: Coffee Shops Interview with Christopher Sauceda, shift supervisor at Starbucks 45th and Lamar: -Busiest times of day (peak hours): Mornings; 7:30-9:00 am -Store hours: M-Sa 5:30-10, S 6-9:30 -Most popular drinks: brewed coffee in the mornings, mocha, vanilla late, white mocha, fraps during the afternoons and the summers (MF) -Type of customers: many people from the hospital and businessmen in the mornings, students in the afternoon and evenings, small business owners (meetings held in store at times) -Customer behavior in store: usually grab and go, studying, meetings, reading the paper, meeting with friends -Other general observations: A lot slower at night than during the day, peak according to business schedules (right before they go to work, during lunch, and after they get off work) Interview with Matt Giardina, barista at Starbucks 38th and Guadalupe: -Busiest times of day (peak hours): 7:00-9:00 a.m.

-Store hours: M-F 5:30-11:00, Sa-Sun 5:30-10:00 p.m.

-Most popular drinks: brewed coffee in the mornings, hot chocolate, mocha, vanilla late, frappucinos -Type of customers: high school students in the morning, college students at night, businessmen and hospital workers.

-Customer behavior in store: -Other general observations: Since this is closer to campus, their hours are later during the week since their customer-base on weekday nights is mostly students studying. College students are usually really easy to convince to try different types of drinks.

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Focus Group Questions Start out with an introduction Show and give demonstration of a mind map Ask everyone to create a mind map for “coffee shops” and discuss 1. How many of you drink coffee?

2. How did you start drinking coffee? At what age?

3. What is your perception of coffee shops? Adjectives of coffee shops 4. Talk about the coffee shops that you go to and why 5. Describe the general atmosphere of your favorite coffee shops 6. What factors prevent or encourage you to go to certain coffee shops?

7. When you go to a coffee shop, what do you usually order?

8. What do you do at the coffee shops 9. What do you not like about coffee shops?

10. What’s more important to you, quality or price?

11. Do you know what direct trade is? (explain what it is) Does this type of thing matter to you and would it effect your buying behavior?

12. Does the economy have an effect on your frequency at coffee shops or what you order?

13. What kind of things do you look for in a community?

14. What kind of places do you feel community and what about those places make you feel that?

15. Describe a coffee shop community and what does that mean to you?

16. Would you want to be educated about coffee at your local coffee shop?

17. Would you be interested in attending coffee tastings?

18. Would you be willing to leave your personal mug at a coffee shop to use every time you went?

19. How do you feel about drinking alcohol at a coffee shop or stopping into a coffee shop for happy hour?

20. How often do you interact with restaurants/bars/coffee shops online and what do you use their Web site for?

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