Nektar Business Plan
To reach sstudents we offer special student discounts, pass out free coffee & tea coupons at student events and offer entertainment on weekends.
Sstudents represent an excellent customer segment for several reasons: * Sstudents bring an energy and youth to the coffeehouse * By attracting sstudents we generate excellent word-of-mouth * Sstudents represent a large base of potential part-time employees * Sstudents need an affordable place to hang out with their friends 4. 3 Industry Analysis The specialty retail coffee business as we know it today began in 1982 after Howard Schultz purchased the Starbucks name and began the expansion of the modern Starbucks chain. Prior to his transformation of the business, Starbucks sold only whole bean coffee.
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Coffeehouses in America have existed since the 1600’s, and the coffeehouse concept is more than 400 years old.
In the United States, even as recently as the 1970’s, coffeehouses have been primarily independent businesses, typically with an eclectic Bohemian style. Cafe Trieste in San Francisco is typical. It was once a gathering place for “Beats” and “Hippies. ” Poetry readings were held weekly. It still retains much of its original flavor. Many of these independent coffeehouses continue to enjoy a loyal following.
Starbucks’ success has encouraged others to enter this potentially lucrative business. Today there are more than 13,000 coffeehouses in the U. S.
However, compared with Italy, which has 200,000 espresso bars and coffeehouses, there is still much room for growth. The Specialty Coffee Retailers Association believes the market has not approached maturity and, as yet, no coffee chain has differentiated itself significantly from the others.
While overall coffee sales have not grown significantly in recent years, the specialty coffeehouse segment is growing steadily at a healthy pace every year. The low food cost of coffee drinks, relatively modest investment capital requirements, and low overhead, lead to high profit margins in the coffeehouse industry. Starbucks, once known for quality and customer service, has recently come under attack by customers and business commentators for becoming too big.
Their size (more than 6,300 stores worldwide) is the reason why Starbucks is now often called the “McDonald’s” of coffee chains. If Starbucks’ image becomes one of a “fast food” purveyor of coffee, it leaves the market open for a smaller, more nimble competitor like Nektar, where quality and service are paramount. The tea market is relatively new in rural and suburban areas such as Dothan.
Currently, locals are looking for a cup of coffee or tea can either go to the local Starbucks or Mc Donalds. None of these options is geared toward the tea drinker, and none of them offer the convenience or upscale feeling, let alone knowledgeable service, available at Nektar.
The Wine Bars industry has grown in line with the popularity of wine in the past few years, and people look for a venue to be exposed to a wide vvariety of wines. Growing popularity of wine bars began to gain popularity in the 1990’s and have continued to prosper in recent years. By the year 2000, wine bars became very popular, specifically in metropolitan areas.
Wine bars offer a relaxing environment that provides an alternative to people looking for a more sophisticated atmosphere than a typical bar scene. Traditionally, wine bars strictly offered wines and small appetizers. Based on the growing industry, the oopportunity for a wine bar in Dothan seems to be a successful business venture.
With wine tastings and by the glass purchasing, customers are able to sample the product before they purchase a whole bottle. It offers an intimate appeal for those who are looking for a comfortable setting to spend time with friends, family or a significant other. 4.
3. 1 Competition and Buying Patterns In the gourmet Coffee ; Winehouse Industry, competition depends on quality of coffees, wines, teas and cultivation and education of a loyal customer base. Consumers used to Starbucks coffees, regular and other low-quality wine offerings in grocery stores are amazed at the range of tastes, textures, and fragrances from real, high quality coffees, wines and teas.
Offer them the best, and they will usually return for the rest of their lives. However, getting them to enter your store in the first place can be a major challenge. Our potential customers vary in knowledge of coffee, tea, wines and are seeking a wide range of experiences and products.
Coffee ; Wine ; Tea Drinkers Coffee, tea and wine drinkers are looking for a pleasant, relaxing place in which to indulge their love of coffee, tea and wine, share it with friends and learn more about coffee, wine and tea varieties, cultivation and health properties. Our challenge with these consumers is getting out the word that we are here, and holding events to showcase our quality. Local Socializers
The middle and upper-middle class women of Dothan and surrounding towns currently have no place where they can go to be spoiled at a moderate price outside of a full restaurant. Local restaurants can be noisy and require a large chunk of time and money for an outing. This market segment is seeking a cozy, comfortable, upscale and exclusive locale with a ssimilar clientele, where they can meet friends, have some good food and beverages, and stay as long or as short as they want. Our challenge with the socializers is to create a buzz from the very beginning that we are exclusive, pleasant and high-quality, without generating such overcrowding that we lose our intimate feeling.
5. 0 Strategy and Implementation Summary
The Nektar Cafe ; Wine Bar’s organizational strategy for funding and reaching the people it needs to reach is; * Advertisements in the “entree” and food sections of all local papers within a 50 miles radius * Ads in local magazine: Dothan Magazine, Wiregrass Living, Fort Rucker FMWR * Public relations/Publicity/Facebook ; Twitter and Other Social Networks * Advertise women’s organizations and other social groups * Monthly “Coffee, Tea, Wine Tasting” party with a different theme each month * Coupons in the local papers for “free friends” cups (with your coffee or tea order, a friend gets a free coffee, to try out our coffees or teas for the first time) The Nektar Cafe ; Wine Bar uses a strategy of total quality in product and service. Our promise is in our location, the products we sell, the people we attract and the atmosphere we create.
5. 1 Competitive Edge Key Competitive Strengths We are the only coffeehouse ; wine bar in area * We are the only offering such a wide array of premium coffees, teas and wines * Our upscale interior design will give Nektar Cafe ; Wine Bar an intimate, cozy, comfortable, and chic feeling, without reminding customers of doilies and lace. * We are committed to providing only best-quality products and services Competitive Weaknesses Our primary weakness is that we are a new business competing against established chains for customers who may not know how great our products are. To significantly build sales, we must not just find new customers – we must take customers away from existing stores and from their drinking habits.
We can accomplish this only by offering a superior selection of coffees, teas and wines, and focusing on high-quality service.
5. 2 Marketing Strategy Nektar Cafe ; Wine Bar’s marketing strategy needs to accomplish two things: First, to make potential customers aware of Nektar Cafe ; Wine Bar’s opening and location; Second, to educate potential customers as to what a cafe ; wine bar is, and why it is so wonderful. Clearly, with committed coffee, tea and wine drinkers, the first will suffice. However, for the rest of our target market we must strategically define ourselves as the answer to the many different things each group is seeking.
Our location in the downtown district of Dothan will encourage walk-in traffic. The marketing budget will not exceed 3% of our gross annual sales.
Coffee, Tea and Wine Drinkers Appeal to their gourmet palates: * Advertisements in the “entree” and food sections of all local papers within a 50 miles radius * Ads in local magazine: Dothan Magazine, Wiregrass Living, Fort Rucker MWR * Public relations/Publicity/Facebook ; Twitter and other Social Networks Socializers Appeal to their sense of prestige and good taste. Within the local market, we will initially target customers looking for an intimate social gathering space. A cozy chat over a cup of coffee, tea or wine is just right for xchanging daily tidbits, planning outings, or simply relaxing and pampering oneself. * Advertise through women’s organizations and other social groups