The charmery plansbook

Strategic Marketing Plan 2015

About Us:

Team Kamal 5 is a marketing consulting group composed of five Loyola University Maryland students who are enthusiastic, passionate and hardworking. They are determined to provide the best individualized marketing solutions for each of their unique clients to ensure their success.

Additionally, each member of Team Kamal 5 brings a different set of skills to the table, which, when combined, enable the team to design creative marketing strategies with a fresh perspective. Additionally, all members recieved their training from Loyola University Maryland, a jesuit educational institution situated in Baltimore, Md. Loyola University is committed to supporting honesty, integrity and respect for oneself and one another. The university has provided Team Kamal 5 with an ethical foundation on which it has built personal and professional standards to hold themselves and each other accountable for their actions and work. Additionally, it has ingrained upon each member the importance of work ethic and confidence, which allows them to take on any challenge efficiently, effectively and exceptionally.

Kristyn Farrar Kristyn is a marketing major and Spanish minor at Loyola University Maryland. She works as a desk assistant at the university, and enjoys skiing and snowboarding as well as spending time with her friends, family and pets. The sophomore plans to study abroad in Bangkok, Thailand during the next fall academic semester.

Molly Hanlon Molly is a psychology major and sophomore at Loyola. She works as a student assistant at Loyola’s Center for Community Service and Justice, which is an on-campus resource for those wanting to serve the surrounding community. She is also a member of Loyola’s dance company.

Lisa Potter Lisa is a communication major, with specializations in public relations, advertising and journalism. The Loyola senior is the social media editor for Loyola’s on-campus news publication; the secretary of the Mu Kappa chapter of the National Communication Association’s honor society, Lambda Pi Eta; a participant in the Loyola Leadership Academy; a member of Loyola’s NCAA division I track and field team and a member of the Public Relations Student Society of America.

Alexa Sperduto Alexa is an accounting major and Spanish minor. She is a sophomore and participates in Hounds for Hope, which is a response group dedicated to aiding victims of natural calamaties around the globe. Additionally, she spends her free time knitting and running in Spartan races .

Alexe Tsao Alexe is a finance major and Spanish minor at Loyola. She volunteers for House of Ruth in Baltimore, which is a shelter and partner for victims of partner violence. The sophomore akso works for Loyola’s Phoneathon, and enjoys running in her spare time.

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Table of Contents Situation Analysis…………………5 The Company…..………….5 The Products………………6 The Industry……………….6 The Competition…………...7 The Customer……………...8 Financials………………………….8 Current Marketing…………...……9 SWOT Analysis…………….……10 Strengths…………………10 Weaknesses…………..……10 Opportunities ……………11 Threats…………………..…11 Marketing Strategy…………...….12 Goals……………………..12 Strategy……………….……12 Objectives…………….......12 Tactics………………………12 Marketing Mix………...….12 New Product Offerings...…13 Promotional Deals……….14 Social Media Contests…....14 University Partnerships......14 Store Redesign…………....15 Paid Advertising………….15 Evaluation………………………...16

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Situation Analysis The Company Overview Standing as the only ice cream parlor in Hampden, The Charmery, which is owned by Laura and David Alima, serves as a unique spot for distinctive ice cream flavors that capture the spirit of Baltimore and represent other seasonal and newsworthy events.1 What made their dream of The Charmery become reality, was the fact that Laura had previously obtained a degree in hotel administration and had the knowledge base to start and run her own business, while David had attended the Frozen Dessert Institute in Missouri.

The Charmery, which is a retailer of local produce and products, supports local farmers at every opportunity, resulting from the Alima’s mission of “making the purest ice cream from the purest ingredients.”2 Specifically, many of the Charmery’s ingredients come from Trickling Springs Creamery, which is local dairy producer of organic dairy products.

The primary marketing platforms The Charmery utilizes are word of mouth and social media. It has its own Facebook, Twitter and website.3 The Charmery also participates in Baltimore’s famous Restaurant Week as well as Hampden’s annual Hon Fest in the fall; both of which help to spread awareness about The Charmery.4 In addition, The Charmery participates in “Sundaes on Wednesdays,” which is a charity event that features The Charmery’s ice cream as a dessert option in a designated restaurant each Wednesday. All proceeds from the ice cream sold that night go to a charity of the restaurant chef’s choosing.

History David and Laura Alima fulfilled their dream in 2013 when they set up shop in Hampden as the neighborhood’s only ice cream parlor. Located in Baltimore, Md., the couple wanted to create an establishment where the couple could provide an experience like no other, and where Mr. Alima would be able to create his own ice cream flavors.

Since then, the business has taken off, and the Alimas have started a family of their own—both at The Charmery, and at home with the birth of their daughter. The duo worked to create and promote a Baltimore landmark with a family-centered atmosphere, which celebrates Baltimore culture and traditions. Additionally, The Charmery has experienced incredible growth in only five fiscal quarters as a result of successful social media marketing and word-of-mouth advertising.

Nevertheless, there are great things in store for The Charmery’s future.

Mission Statement “Charm City’s local hand-crafted ice cream shop – scooping fun flavors that make Baltimore so delicious!i”

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"The Charmery." The Charmery. N.p., n.d. Web. 04 Nov. 2014.

"About." The Charmery. N.p., n.d. Web. 04 Nov. 2014.

"The Charmery." Facebook. N.p., n.d. Web. 04 Nov. 2014.

“The Charmery.” Twitter. N.p., n.d. Web. 04 Nov. 2014.

4 "Thanks to Everyone Who Participated in Baltimore Restaurant Week." Baltimore Restaurant Week: August 1st. N.p., n.d. Web. 04 Nov. 2014.

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The Products The Charmery strives to offer its customers a unique ice cream experience. Its distinctive offerings have received much acclaim throughout the Maryland region. Food critics have praised The Charmery for its remarkable flavor choices in a conventional atmosphere. Additionally, It stands as the only producer of an “Old Bay Salted Caramel” flavor of ice cream, which has received a great deal of attention from food critics, and has become a Baltimore favorite. The store also has partnerships with other local businesses such as Spro Coffee, Union Craft Brewing and Bergers Cookies, whose products can often be found in The Charmery’s flavor offerings.

The store produces homemade ice cream, which is made fresh daily, with all organic, locally grown ingredients. However, unlike many other traditional ice cream shops, The Charmery offers ice cream offerings that are vegan, gluten-free and lactose-free.

Ice cream flavors vary from day-to-day, although there are several favorites that are offered all the time such as the “Salty Caramel” and “Berger Cookies and Cream.” It also offers milkshakes, floats and sodas. Also, it makes its own waffle cones, whipped cream, hot fudge, chocolate sauce and peanut butter sauce.

Additionally, The Charmery sells several varieties of hot chocolate and Belgian waffles during the cold, winter months. The hot chocolate comes with a homemade marshmallow and whipped cream.

The Industry Current Trends Currently, society is shifting to become more conscious of health and fitness than ever before.

Often, people are looking for sugar-free, fat-free, dye-free, all-natural, organic, vegan, vegetarian or gluten-free options that do not sacrifice taste for health.

Additionally, with rising food prices and high rates of both joblessness and poverty, The Charmery may be forced to address these economic concerns by balancing price against the economic environment. Meaning that while the cost of its ingredients may rise, it is likely that the company will make little profit if it raises its prices in response. Many affected by the late recession do not want to pay higher prices and look for value in the products and services they purchase. Therefore, The Charmery must continue striving to provide value and cost maintenance to retain existing customers while acquiring new ones.

The world is experiencing a mass commercialization of businesses, and local businesses struggle against huge franchises offering similar products at lower prices. The Charmery must emphasize the benefits of purchasing its handmade ice cream containing ingredients from local businesses to gain an advantage over its corporate counterparts.

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The Competition Though The Charmery is the only ice cream parlor in Hampden, it is not without competition in neighboring areas. Three of its primary competitors are Uncle Wiggly’s, Dominion Ice Cream and Taharka Brothers.

Taharka Brothers is a Baltimore-based national wholesaler and distributer of ice cream. 5 However, its ice cream is sold throughout Maryland, and mostly in Baltimore, at a variety of retailers such as ice cream shops, college campuses and restaurants.

Uncle Wiggly’s has three separate locations with two in Baltimore and one in Towson, Maryland. It is both an ice cream parlor and a deli, however both the Taharka Brothers and Edy’s companies supply its ice cream.6 Dominion Ice Cream is a health-conscious ice cream parlor located near Johns Hopkins University on North Charles Street in Baltimore.7 The company specializes in creating healthy ice cream that is dietician-approved, but does not compromise taste. Additionally, it features unique ice cream flavors such as vegetable varieties like sweet potato or spinach.

The Charmery competes with these companies on the basis of producing unique ice cream flavors made with organic and pure ingredients, and being offered at restaurants during its “Sundaes on Wednesdays” event.

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"Locations." T. N.p., n.d. Web. 04 Nov. 2014.

"WELCOME." Uncle Wiggly's. N.p., n.d. Web. 04 Nov. 2014.

7 "Dominion Ice Cream." Dominion Ice Cream. N.p., n.d. Web. 04 Nov. 2014.

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The Customer The Charmery caters to a number of demographics within, but not limited to, the Baltimore area.

This both complicates and broadens The Charmery’s customer base as Baltimore itself is home to many different types of people of all ages, genders, socioeconomics, races and interests.

As it sits in the Hampden neighborhood of Baltimore, which is known to be an area that upholds some of the more traditional Baltimore, or “Bawlmer,” customs, many of the residents there are classified as hipsters, and are mostly young, married couples, with or without children and belong to the middle class. Many of these couples have children that would be interested in an establishment such as the Charmery.

Additionally, Hampden serves as a tourist attraction, especially around the times of Restaurant Week, Hampden and Hon Fest and in the wintertime when the row homes in the neighborhood are decorated in Christmas lights.

Also local to the Hampden area are a number of universities housing large numbers of college students ranging from 17 to 23 years old. These students likely belong to all ranges of socioeconomic classes, and would be looking to find off-campus activities and attractions.

The majority of people who live in or visit the Baltimore and Hampden areas likely belong to the middle class, and have no income-producing assets, preferring instead to spend money on experiences rather than investments. Many have acquired new loans or mortgages. Many have tight budgets as a result of numerous bills and lack of growing income. Most are college educated or graduates who put emphasis on product value, not necessarily the cost—they look for the greatest value at the lowest cost.

Financials

Pricing at The Charmery is $3.50 per scoop for its ice cream. Each scoop is large in size and can be purchased directly onsite or during a guest chef event. Its competitors typically offer products at a lower rate, however The Charmery utilizes organic, locally manufactured ingredients for its ice cream, resulting in higher production costs.

Despite high costs, The Charmery’s sales have exceeded expectations even outside its peak season: winter. Company profits as compared to expected profits have increased at a rate of 25% to 110%. This increase in profits for a new business is incredible. The chart below shows The Charmery’s projected vs. actual profit growth.

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

2013 Projected vs. Actual 2014 Projected vs. Actual

N/A

N/A

85%

107%

25%

110%

75%

N/A

2013 vs. 2014

N/A

N/A

28%

N/A

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Current Marketing

The Charmery’s markets primarily through various social media platforms and relies heavily on word-of-mouth advertising, rather than purchasing advertising space.

Likes: 4,011 Its Facebook and Twitter pages contain posts about the day’s featured flavors, special in-store offers and events, ice cream and food collaborations with other Baltimore restaurants and participation in events Followers: 984 such as Hampden Fest, Hon Fest among others. The Charmery also has an Instagram account, which gives consumers a peek into the shop through pictures of the machinery, ice cream ingredients, staff updates and new creations.

Followers: 961

Social Media

Digital

The Charmery’s Yelp! page also aids in the company’s marketing efforts. The site allows users to rate and review the establishment on a public forum. Yelp! acts as a digital form of word-ofmouth advertising, however, the site also enables The Charmery to be more easily found through search engine results. Nevertheless, Yelp! also shows The Charmery’s competitors, Uncle Wiggly’s, Dominion Ice Cream and Taharka Brothers.

Promotions The Charmery offers a “Big Dipper” promotion, which means that for every cone or sundae purchase, customers get a stamp on their Big Dipper card. After acquiring ten stamps, the customer spins the “Wheel of Wonder,” which allows them to win free sundaes or other treats.

Additionally, the company offers Cone Cards and Sundae Cards, which are valued at the amount of a single scoop cone or sundae, milkshake or root beer float, respectively.

The Charmery also offers membership into its “Pint of the Month Club,” which provides members a pint every month of a unique ice cream flavor created by Mr. Alima as well as a pint of a seasonal featured flavor and another special treat, which is usually one of his homemade ice cream toppings. However, membership costs $60 for three months and $2—for 12 months.

Community Outreach The Charmery emphasizes making a positive impact on the local community. Not only does the company get its materials from local businesses and farms, but the flavors are also influenced by the surrounding city of Baltimore. For example, two of The Charmery’s most popular flavors incorporate popular Baltimore staples: the Old Bay Caramel and Berger Cookies n’ Cream.

The Charmery also partners with other Baltimore-based businesses such as Spro Coffee, Bergers Cookies and Union Brewery. Additionally, it participates in food-related and cultural events such as Restaurant Week and Hampdenfest, which aid in generating awareness of the company’s existence within the surrounding communities.

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SWOT Analysis Strengths • • • • • • • • • • • • • • • •

Able to connect with the surrounding community and city of Baltimore through it’s Baltimore-related store theme Receives high reviews online 4.5 stars on Yelp!

5 stars on Urbanspoon 4 stars on TripAdvisor Experiences rapid profit growth Relates flavors to seasons, holidays and other national and local events Store appearance and product offerings appeal to both children and adults Able to turn social media followers into paying customers Family-operated business creates a family-friendly atmosphere Offers more than just ice cream such as Belgian waffles, hot chocolate, specialty sodas and floats and milkshakes, some of which are seasonal Offers vegan and gluten-free options Most products are homemade onsite.

Able to create custom flavors and change flavor offerings quickly Offers “Cone Card” promotion and “Big Dippers” E-letter for subscribers Partners with local businesses and even creates ice creams from others’ products

Weaknesses • • • • • • • • • •

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High prices compared to competitors Only one location, which is small and doesn’t offer much seating Store’s interior appears dated and dark Few parking options at certain points throughout the day No paid advertising and no public relations—instead relies heavily on word-of-mouth and social media advertising Website too busy and doesn’t accurately depict the store theme Low profits; still paying off old bills Fairly new business, lacks brand awareness and name recall Doesn’t sell to local colleges or restaurants on a regular basis Handmade ice cream runs out quickly, meaning that many of the flavors are constantly changing throughout the day.

The menu is not always consistent Limited product offerings specifically for cold, winter months

Opportunities • • • • • • • •

Reach out to potential customers during Baltimore’s Restaurant Week Sundaes on Wednesdays charity event equates to community relations and spreading awareness of the business Expand to establish more retail locations within Baltimore Paid Facebook acquisition Obtain Search Engine Optimization through establishing keywords for Google and Google+ Selling quarts of ice cream for household consumption From partnerships with local universities to introduce the brand to college students Cater to special events

Threats • • • • • •

Other nearby ice cream parlors make it hard to compete, especially since many of its competitors have multiple retail locations Competing against national brands; may lack name recognition Higher prices may cause consumers to choose competitors’ ice cream over The Charmery’s Low profit in winter Rising crime rate in Hampden Website doesn’t show prices or where parking is available

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Marketing Strategy Goals

As The Charmery is a relatively new business in the Baltimore area, its primary goal is to spread awareness of the company and its brand within the local community. This, in turn, will create loyal customers and drive profits year-round.

Strategy Team Kamal 5 has designed an integrated marketing strategy designed to spread awareness of The Charmery and increase its customer base. Through the introduction of several new products, implementing a marketing communications strategy to promote them, we can help The Charmery reach its business goals and objectives. Additionally, we recommend the store update its interior to better reflect the company mission and the Hampden-Baltimore community.

Objectives • • • • •

Introduce exciting, new products to enhance the consumer’s ice cream experience Introduce new products to expand The Charmery’s ice cream offerings Revitalize the décor of the store’s interior Promote The Charmery’s new products through promotions and social media Increase social media followers on Facebook, Twitter and Instagram by 20 percent

Tactics • • • • • • • •

Introduce flavored waffle cones and cone bowls Introduce new ice cream products such as ice cream cakes, ice cream cupcakes and ice cream cookie sandwiches Offer ice cream in pints for households Offer seasonal promotion in the wintertime Offer seasonal cups and bowls during summer, fall, winter and spring Hold social media contests Investing in outdoor or print advertisements to help spread awareness Paint and redecorate the store’s interior

Marketing Mix As an ice cream shop, The Charmery’s marketing should be placed during warmer seasons such as late spring, summer and fall when customers are more likely to purchase colder foods.

However, since The Charmery attracts a local, year-round market as well, it is advisable to continue marketing during other seasons with lesser aggression.

We believe The Charmery should utilize print and outdoor advertising to reach more of the market, in addition to continuing its extensive social media marketing strategy.

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New Product Offerings Cone Creations The Charmery currently offers two types of cones: a sugar cone, which is purchased from a vendor, and a homemade waffle cone. Because the waffle cones are made onsite, creating a variety of flavored cones such as gingerbread or chocolate. would be fairly easy and inexpensive. The flavored cones can be created to compliment the store’s daily ice cream offerings, and can offer a seasonal twist to old favorites.

Additionally, The Charmery could offer waffle cone bowls, also in assorted flavors, to provide an edible alternative to disposable bowls, and prevent dripping, which is commonplace with traditional ice cream cones.

If customers were charged about $1.25 or $1.50 per cone, and at least half of customers bought a cone with their ice cream, revenue is sure to increase. For example, if 70 percent of customers, or more, purchase one of the new cone creations, The Charmery could earn upwards of $100 each day—just from ice cream cones.

Ice Cream Cakes and Sandwiches In addition to The Charmery’s ice cream pumpkin pie, which is offered during the fall and winter months, the company may benefit from offering other creations such as ice cream cakes and cupcakes or ice cream sandwiches.

Pricing may be determined depending on the size of the cake, cupcake or cookie sandwich; the time in which the products take to make; cost of storage and the cost of the ingredients required to make these new offerings. We recommend that the cakes cost about $25 to $40, while the cupcakes should cost $3 each and cookie sandwiches should cost about $3 each.

Nevertheless, we believe these products will prove profitable for The Charmery as many children and adults enjoy ice cream cake, while the smaller version—the cupcakes—are a unique product, sold by only a couple of ice cream retailers. Additionally, there is always demand for things like ice cream cake, ice cream cupcakes or cookie sandwiches for parties or other special events, meaning that these products would not only gain more customers but also gain more revenue. To maintain profitability, The Charmery would have to sell between 1-3 cakes per day, along with 15 or more cupcakes and cookie sandwiches.

Ice Cream Pints The Charmery may also benefit by creating larger batches of ice cream and selling pints to households. This way, consumers may buy The Charmery’s homemade ice cream in bulk, and walk out of the store paying more than if they had purchased a single or double scoop, thereby generating more revenue fro the company.

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Themed Tableware For each season, The Charmery could potentially switch out its bowls and cups for themed tableware. For example, bowls purchased in the winter could have snowflakes or Santas printed on them, while bowls in the summer could have flowers or beaches. This seasonal rotation will serve to create delight for consumers and add interest to a more mundane aspect of ice cream.

Promotional Deals Snowy Savings To help generate more foot traffic during the winter months, The Charmery could offer a ten percent discount for every inch of snowfall. This promotion would provide an incentive for customers to come in to the store and purchase ice cream during a time when ice cream is not the most popular dessert option. The Snowy Savings promotion could help increase sales of The Charmery’s products during a period of time where sales are not at their peak.

Social Media Contests The Charmery could hold Instagram contests and offer a special prize to customers who post the winning Instagram picture. Each contest will have its own hashtag, specific to the competition theme. An employee will be designated to monitor The Charmery’s Instagram account and judge the contest to determine the winner. Each winner will receive items such as a free single scoop ice cream, or some type of The Charmery swag.

Each contest could ask customers to post things like a picture of their favorite ice cream from The Charmery, or favorite Baltimore view. Such contests would create free advertising for The Charmery as its products and Instagram handle would be shared with the friends and family of each Instagrammer. Additionally, the contest will help to engage current and potential consumers, thereby creating a greater sense of brand equity.

University Partnerships Because there are a number of surrounding universities within the community, The Charmery could establish partnerships to help raise awareness of its business among the college-age demographic.

Through these partnerships, representatives from The Charmery would be sent to nearby campuses to offer ice cream tastings, or even cater university functions, to introduce the company to college students, and encourage them to seek out the store’s location in Hampden.

Additionally, the store could be open later near the end of each semester to offer a study and snack location between exams.

Another possibility is for The Charmery to partner with universities to provide all their ice cream, which would be hugely profitable as these institutions are likely to purchase ice cream in bulk.

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Store Redesign The Charmery’s interior is dark and lacks a certain aesthetic that would be beneficial to the company’s image. The name, “The Charmery,” reflects a whimsical and quaint ice cream shop, however the store itself is painted in bright oranges and yellows, while the tables and chairs are painted bright blue.

Additionally, the flavor board and counter tops lack visual appeal. We believe these colors and store theme clash with the connotations of not only the store’s name, but also those of an ice cream parlor designed to “sell happiness.”

We recommend that the store’s interior take on a softer color scheme with light blues to match the company logo and exterior, and light pinks and whites to add a more whimsical effect, while also staying true to traditional Hampden color schemes. Additionally, we believe these colors will serve to brighten the store’s interior and give it a more spacious appearance.

We also recommend that the flavor board be redesigned, incorporating the aforementioned color scheme, and put together in a way that is more professional-looking and easy to read. Perhaps The Charmery may want to consider using a larger font, or bringing the flavor boards closer to eye level, particularly for smaller children.

Paid Advertising The only mode of marketing through which The Charmery promotes itself is through its social media accounts: Facebook, Twitter and Instagram. Although its current strategy is successful, the company needs to begin marketing in other ways to increase business and sales among consumers without social media accounts. Additionally, these ads must rigorously promote The Charmery’s social media accounts to help increase its number of followers.

Print Many of Baltimore’s residents may be reached not through social media, but through local publications such as The Baltimore Sun, City Paper or Baltimore Magazine. Additionally, The Charmery could purchase advertising space in university publications such as the Towson Towerlight, The Johns Hopkins News-Letter, Loyola Maryland’s The Greyhound or Morgan State’s The Spokesman.

Outdoor The Charmery could purchase advertising space on out-of-home venues including, but not limited to, flyers, busses or bus stations, billboards and sponsored benches. Out-of-home advertisements will help ensure that people who do not have social media accounts will still be made aware of The Charmery and its products.

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Evaluation

Because they are the owners and head decision-makers of The Charmery, the Alima’s are in charge of managing all marketing efforts. They know the company both inside and out, and are able to make the best decisions concerning their business. They also handle The Charmery’s finances, and are able to make the most informed decisions concerning what kind of marketing is affordable.

However, we believe it would be most beneficial for the Alimas to name an individual as their marketing and communication director because they have other duties to which they must attend.

This appointee would be charged with implementing and evaluating The Charmery’s marketing efforts.

Sales objectives will be measured through comparing the 2014 quarterly sales to the 2015 quarterly sales. Additionally, The Charmery must keep track of how many new products are purchased as compared to purchases from The Charmery’s old menu. Success will be determined by an increase in profit as compared to the previous year’s quarter.

Promotional objectives will be measured through the increase in customers and therefore revenue during the winter months.

Social media objectives will be measured through the increase in consumer engagement with The Charmery’s Facebook, Twitter and Instagram accounts, as well as an increase in followers as compared to 2014.

Advertising objectives will be more difficult to measure as foot traffic cannot necessarily be attributed to advertising efforts, however the number of unique customers can be compared to the number of unique customers in 2014, and success can be determined by an increase in unique customers, unpaid media coverage and sales.

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Notes

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