Doce Dieta M.plan - G14

Embed Size (px)

Citation preview

  • 8/2/2019 Doce Dieta M.plan - G14

    1/26

    MARKETING PLAN

    MARKETING MANAGEMENT

    November 19, 2010

    The Lisbon MBA Part Time 2010 - 2012

    Florbela Pinto

    153010151

    Jorge Oliveira

  • 8/2/2019 Doce Dieta M.plan - G14

    2/26

    Marketing Management

    Summary

    1 Executive Summary..............................................................................................2

    2 The Challenge........................................................................................................2

    3 Situation Analysis.................................................................................................3

    3.1 Company Analysis........................................................................................4

    3.2 Customer Analysis.......................................................................................4

    3.3 Competitor Analysis....................................................................................6

    3.4 Collaborators..................................................................................................73.5 Climate.............................................................................................................8

    3.5.1 Political Factors......................................................................................8

    3.5.2 Economic Factors..................................................................................8

    3.5.3 Social Factors.......................................................................................10

    3.6 SWOT Analysis.............................................................................................11

    4 Market Segmentation.......................................................................................11

    4.1 Segment 1.....................................................................................................12

    4.2 Segment 2.....................................................................................................124.3 Segment 3.....................................................................................................12

    5 Alternative Marketing Strategies................................................................13

    6 Selected Marketing Strategy........................................................................13

    6.1 Product...........................................................................................................14

    6.2 Price....................................................................................................................16

    6.3 Place location..................................................................................................17

    6.4 Promotion.........................................................................................................18

    7 SHORT & LONG TERM PROJECTIONS...........................................................19

    7.1 Fixed Costs...................................................................................................20

    7.2 Break-even Analysis..................................................................................21

    7.3 Sales Forecast................................................................................................22

    7.4 Advertising Budget.......................................................................................24

    7.5 Contingency Planning..................................................................................24

    8. Conclusion............................................................................................................25

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 2

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    3/26

    Marketing Management

    8. ConclusionAppendix. i, ii, iii

    1 Executive Summary

    With the increasing emphasis on healthy life styles, well being and quality of

    life, people needs are changing. At the same time tastes for food are

    becoming more sophisticated as well as more heterogeneous. There is a

    growing concern with the quality and quantity of food people eat. This

    tendency is yet to be explored explicitly in the coffee shops market.

    Healthy food is still highly connoted with macrobiotic, vegetarian and nottasty; this is a great setback and will be Doce Dieta first barrier. Fortunately

    there has been a significant increase in alternative ingredients offer in the

    last few years. The whole project lies under the assumption that it is

    possible to provide better quality foods and nutrition without changing the

    basic core of the market.

    We also believe that the tasting experience we offer will be actually

    perceived. Some customers will try just for curiosity and will learn that our

    healthy concept is not antagonic with the eating and drinking pleasure they

    expect from a coffee shop. The core characteristics such as taste, flavor,

    senses and aromas will be present as they are one of our main concerns.

    The present plan discloses objective data for the implementation of the first

    coffee shop in the center of Lisbon.

    2 The Challenge

    Doce Dieta will be a startup aimed to a niche in the high quality coffee

    shops market, a place to socialize and spend time in a relaxed manner with

    family, friends or colleagues with the distinctive combination between

    healthy and tasty.

    Medium term goal is the creation of two more coffee shops in the city and

    the foundation of a recognized brand in the market. The next step is the

    expansion of our chain of healthy coffee shops to the rest of the country in

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 3

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    4/26

    Marketing Management

    specific urban locals that fulfill the segment requirements identified. This

    will enable the company to achieve different procurement results and place

    it in a more competitive position regarding other existing chains.

    In the long run, the pioneer effect will present a clear edge when the

    competition decides to change their focus to healthy as we expect.

    Internationalization may be considered in the future; in this case market

    analysis must be object of thorough attention.

    The scope of this marketing plan is to outline the strategies, tactics, and

    programs that will make our sales goals a reality.

    3 Situation Analysis

    The first assumption we hope this plan will confirm is exactly that the

    market not only is seeking for our healthy offer, as demand will increase in

    the next few years. Actually we believe that the healthy behavior will be the

    established reality in the long term.

    Doce Dieta must build a brand around the whole concept. Products play a

    big role and are a distinctive factor. The service will be crucial to bond with

    the clients.

    Fig. 1 Fig. 2

    Although we havent considered the whole pastry market in our targeted

    area, there is a big offer of pastries in the city. Some of these offer a fairly

    good atmosphere and very good conventional pastry. There are some

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 4

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    5/26

    Marketing Management

    renowned vintage places in very good locations. These places werent

    considered as competition since they serve different segments.

    3.1 Company Analysis

    This company is meant for a population that enjoy cultural events, reading,

    listening to music and that seek coffee for their relaxing moments between

    stressful activities.

    A strong emphasis will be put on the atmosphere. A sophisticated, calming,

    relaxed and stress free experience to our customers. People must associate

    our place to a timeless experience that enables them to forget theirconcerns and strains. Another of our goals is to become a life style brand

    around the concept of Tasty and Healthy.

    Focusing on office executives, college students and seniors that feel the

    need for a coffee and a relax moment during the day or after work. Each

    client will experience much more than the best coffee and healthy sweets.

    They will be received by a friendly team in a meeting place, comfortable

    welcoming atmosphere with great ambiance music.

    The shop will be designed to offer different environments to allow at the

    same time people that will stay for different periods and for different

    objectives. The kitchen will be in a visible position within glass walls faced to

    the interior. This way, customers will be provided with the opportunity to

    have close contact with the cooking process, enhancing both the learning

    process and trust.

    Our recipes will be developed by a professional nutritional team. Traditional

    recipes will be transformed to provide the nutritional balance and taste we

    propose.

    3.2 Customer Analysis

    In order to perceive customers needs and behaviors, we have conducted a

    questionnaire to assess the following:

    existing offer

    consuming behaviors and preferences

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 5

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    6/26

    Marketing Management

    understand if there is space for our product in the market

    Specifically, with each question, we wanted to know:

    1) If the respondent usually attends our competitors coffee-shops

    2) If the respondent appreciate, and at what level, the already existing

    offer

    3) If the respondent would appreciate, and at what level, the innovations

    we intend to introduce in the market.

    4) What kind of sweets are most appreciated, to understand in what

    products we should engage more effort in production

    5) What is the acceptability of the brand name we proposed.6) Socio demographic data we think might be useful in the result

    stratification.

    The questionnaire was conducted bearing in mind the segments we had

    previously identified.

    Office Executives, 220 questionnaires answered online in

    Google Docs Forms;

    College Students amounted for 88 answers in a face to face

    survey at FCEE;

    Seniors totaling 17 questionnaires answered in a face to face

    survey conducted in our projected area.

    Discussion of Results:

    From the purposed features we were able to observe that most people value

    ambience music, comfort and decoration. From the ones we want to

    introduce, the higher score went to sweets baked at time and place and

    tasty but low-calorie sweets. Thus, these shall be the ones where we will

    enforce when implementing the concept.

    From this survey we were able to observe the following:

    The most appreciated features by all the segments were comfort and

    decoration, the sweets baked at time and place and the tasty but

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 6

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    7/26

    Marketing Management

    low-calorie sweets which points out a important concern with taste,

    health and comfort.

    The ambience music is not as much important to seniors as it is to

    university students and office executives.

    Only executives perceive wi-fi internet connection as an important

    issue which may be linked to the increasing internet mobile

    connections.

    Reading is not a main feature for university students.

    None of the respondents perceive the workshops as an added value.

    See Appendix i

    3.3 Competitor Analysis

    Competitors identification in Doce Dieta case must comprise the two most

    significant characteristics we want to incorporate in our value proposition.

    As previously stated we want to establish has a niche of the higher quality

    coffee shops. To achieve that positioning, our products will be exclusively

    healthy. This is a clear distinction to the existing offer.

    Defining the boundary of our competition must account for these two key

    aspects which Doce Dieta will combine, the high quality coffee shop

    experience and the healthy emphasis.

    Although we can notice an increasing concern with the health aspects of

    their specialty coffee and other products, the existing coffee shop market

    has a marginal amount of healthy products presented only as an alternative,

    or not offered at all. The most significant coffee shops accounted for in this

    study are Starbucks, Magnolia Caff, Cup & Cino, Il Caff di Roma and

    Jeronymo. High quality coffee shops offer has increased mainly since the

    beginning of the new millennium. They are well thought; typically offer a

    wide spectrum of products, comfortable space, relaxed atmosphere and a

    personalized relation with their clients. Overall they are very well structured

    and their quality levels are very high.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 7

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    8/26

    Marketing Management

    Our positioning of Doce Dieta regarding the existing competition is visible in

    the following perceptual map.

    Fig. 3 Perceptual Map

    Vertical axis: Health Horizontal Axis: Confort Circle Size: Prices

    3.4 Collaborators

    Building brand loyalty through programs focused on providing staff the

    corporate spirit. Staff must feel at home when working, happy people make

    customers happier. Management believes in our brand potential and that

    will get a great result in customer satisfaction.

    The first partnerships we will try to do are with local gymnasium, in order to

    spread our healthy concept.

    In the future when the number of stores increases and the brand reaches

    market recognition, interesting partnerships can be made with airline

    companies, train and long distance busses and book stores.

    There are online door to door distributors for our kind of products that we

    consider very interesting potential partners. An example is

    http://www.nomenuhomeservice.pt/.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 8

    http://www.nomenuhomeservice.pt/http://www.thelisbonmba.com/Default.aspxhttp://www.nomenuhomeservice.pt/
  • 8/2/2019 Doce Dieta M.plan - G14

    9/26

    Marketing Management

    3.5 Climate

    3.5.1Political FactorsThe market has been experiencing a growing emphasis on product and

    service safety. The health authorities course of action has been central

    creating both public awareness and a natural purge in the market.

    People demand for higher standards in all the food supply chain, coffee

    shops and bakeries included. High end coffee shops had their breakthrough

    in the Portuguese market in the early 2000s. This tendency is aligned with

    the EU policies towards public health and safety. This is a worldwide trend

    mainly in the biggest economies.

    3.5.2Economic Factors

    Portuguese economy has shown a weak growth rate in this last decade. The

    situation has worsened specially after the subprime event.

    There has been concern in the country that it may need help from the

    International Monetary Fund if it cannot restore the confidence of financial

    markets worried about its budget deficit.

    Portugal recently adopted an austerity budget aimed at cutting the deficit

    from 9.3 per cent of gross domestic product in 2009 to 4.6 per cent in 2011.

    There has been concern that the austerity measures may lead to economic

    stagnation in the next year.

    Tax burden to the population have been increased and the population

    purchasing power has been diminishing. Consequently, projected confidence

    levels are falling.

    The social classes most affected are the middle, upper middle and upper

    classes. This constitutes a major risk to the project because these are the

    classes where we identified our core market segments. However, market

    data show an increase in

    private consumption in the first terms of the current year.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 9

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    10/26

    Marketing Management

    Fig. 4

    Fig. 5 Indicador de confiana dos consumidores

    INE, 28 de Outubro de 2010

    Fig. 6 Indicador de clima econmico , Fonte: INE

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 10

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    11/26

    Marketing Management

    3.5.3Social Factors

    Western European consumers are quite sophisticated and also very

    demanding. It's not just about cutting out fats and reducing calorie intake

    but more about achieving a balance.

    The best opportunities lie in niche sectors where successful market

    penetration will require product specialization and uniqueness.

    Similarly in Europe, consumers of all ages tend to choose bakery products

    they view as healthy or nutritious, driven by government pressure to eat

    well and concern about body image, confirmed a Euromonitor report last

    March.

    Market researchers maintain that a focus on health trends such as fortified

    and gluten free foods combined with the development of value added items

    such as savory bakery products will be critical for maintaining sales

    momentum and profitability when the market picks up again.

    Source: www.foodanddrinkeurope.com

    3.6 SWOT Analysis

    4 Market Segmentation

    The segmentation is significantly made through the store localization and

    through the price policy. Although Doce Dieta pricing policies place us

    bellow Starbucks which is the lead player in the market.

    Present a description of the market segmentation as follows:

    Market Segment and targeting, Doce Dieta approach to the market of the

    coffee houses is based on the concept of a comfortable meeting place,

    somewhere that anyone who loves coffee, pastry or bakery can sit down,

    listen to music, read a book or a newspaper and enjoy the atmosphere.

    The key difference relies on the added benefit that the products are

    carefully developed to be nutritionally balanced. Doce Dieta doesnt offer

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 11

    http://www.foodanddrinkeurope.com/content/search?SearchText=fortified&FromNewshttp://www.foodanddrinkeurope.com/http://www.quickmba.com/marketing/market-segmentation/http://www.thelisbonmba.com/Default.aspxhttp://www.foodanddrinkeurope.com/content/search?SearchText=fortified&FromNewshttp://www.foodanddrinkeurope.com/http://www.quickmba.com/marketing/market-segmentation/
  • 8/2/2019 Doce Dieta M.plan - G14

    12/26

    Marketing Management

    this as an option, rather is the philosophy itself. Being a fairly recent and

    growing public concern, the concept will be further exploited and Doce Dieta

    will organize workshops and events to create more awareness, both to the

    healthy but still tasty theme has to the Doce Dieta brand itself. Doce Dieta

    is strongly committed to the events and the whole message of a relaxed and

    cozy atmosphere where people are offered the chance of learning how to

    cook healthy bakery and the ingredients available.

    After conducting a brief market research of the existing coffee-shops,

    we realized that the following segments were our targets.

    4.1 Segment 1

    College Students

    Although most of them are not working at the moment, a quiet place where

    they can enjoy their free time with friends and/or studying is always

    appreciated.

    4.2 Segment 2

    Office Executives

    Living at a high rhythm of work, this population is looking at coffee-shop as

    a place do distress from work and daily problems. Looking for a quite

    involving atmosphere.

    4.3 Segment 3

    Seniors

    Offering a space where they can spend some joyful time in company of their

    most dears.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 12

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    13/26

    Marketing Management

    5 Alternative Marketing Strategies

    Before selecting our previously scoped positioning we have considered

    several different issues concerning our possible marketing strategies.

    i

    et

    6 Selected Marketing Strategy

    While conducting surveys we asked a focused group to answer some

    specific questions regarding key characteristics in the existent market

    coffee shop offer. The results are in the following table and allowed us to

    better perceive our positioning within the market. We can notice that the

    health focus is yet to be presented in a clear differentiating manner. The

    next step was defining our punctuation by each characteristic. This was

    done by our team.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 13

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    14/26

    Marketing Management

    6.1 ProductPositioning within the food and beverage market, we will provide a variety of

    alimentary products that will include:

    Drinks Foods

    Coffee drinks (espresso, latte, cappuccino,etc)

    Low calories bakery (bread, sweets,croissants)

    Teas Sandwiches

    Water, natural juices salads

    What will distinguish our products from competitors?

    The recipes will be carefully studied by a nutritional team, in order to

    transform traditional recipes. We will gain in healthiness, reducing calories

    but keeping flavor.

    Some of the basic alimentary substitutions we propose are:

    Soft drinks Natural Juices, water, or tea

    White bread Brown Bread

    Pasta Whole grain pasta

    Saturated fats Olive oil and Sunflower oil

    Sugar (sucrose) Fructose

    Fat dairy products (e.g. Milk, butter, cheese) Low-fat dairy products

    or soy products (e.g. skimmed milk, fresh cheese, soy milk).

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 14

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    15/26

    Marketing Management

    We include here some specific proposed alterations, to better explain the

    concept and the associated benefits.

    Muffins example: Most people enjoy warm muffins, especially for

    breakfast on a wintry morning, although muffins are good any time of the

    day or any season of the year. Then again, although there are exceptions,

    many bakery or store-bought muffins are not especially nutritious, and

    they are often loaded with trans-fat and high in calories. For instance, a

    bakery muffin can contain 500 or even more calories.

    The heart-healthy muffin recipes we propose, though, are actually quite

    wholesome since they contain fruit antioxidants; plus, they are low in trans-

    fats as well as calories and high in fiber, which means that people who are

    health conscious and/or dieting can enjoy them without experiencing an

    ounce of guilt.

    As muffins were the most highly scores sweets in our questionnaire, we will

    provide with an example of how we could do a recipe transformation.

    See Appendix iii.

    Marketing Objectives

    Doce Dieta marketing objectives for the first three years of operation

    include:

    Grow total sales by 10% annually.

    Build customer loyalty through educational programs (e.g.

    workshops)

    Maintain a staff of enthusiastic employees excited to share their training

    acquired knowledge with Doce Dieta customers.

    Build the Doce Dieta brand to the point where it becomes a household

    word in the area.

    Open more coffee shops so that brand and sales can grow quicker in order

    to achieve a respectable market share.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 15

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    16/26

    Marketing Management

    In order to compute the market share we have used the sales per store

    values that we had access to, and the number of stores that the competition

    had in Lisbon. That lead us to our definition of market as the high quality

    coffee shops in Lisbon.

    6.2 Price

    In order to evaluate the competition pricing we have chosen 9 products and

    compared the prices. As we can see by looking at the table it is very difficult

    to say that one product is more expensive than the other. Since the

    products sold by them are very alike we chose to extract a Unit Price that

    corresponds to a mean of the 9 products. That way we can easily compare

    prices.

    We can see that Starbucks is clearly the competitor with higher prices with a

    unit price of 2.19, while the rest of the competition has values between

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 16

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    17/26

    Marketing Management

    1.59 and 1.49. This makes sense since Starbucks is the most valued

    brand.

    It was also possible to get the annual sales of three of those competitors

    (http://www.infoempresas.com.pt) and estimate the unit sales which will be

    a great help to define our goal.

    SBUX MAGNOLIA Il Caffe di Roma

    Unit Price 2,19 1,57 1,59

    Sales 2.625.154,68 1.513.365,43 1.216.797,80 Number of stores 5 7 7Sales per Store 525.030,94 216.195,06 173.828,26 Sales per Store per month 43.752,58 18.016,26 14.485,69

    Unit Sales per Store 239255 137997 109402Unit Sales per Store per Month 19938 11500 9117

    Main competitors Sales (2009)

    Again Starbucks shows its strength with almost the double of sales per store

    of Magnolia and Il Caf di Roma. Not only has the higher unit price but also

    the higher number of sales.

    6.3 Place location

    Doce Dieta will locate the first coffee shop in the Chiado area this is high

    costly Lisbon zone. After some research we reached a price of 20/m2 for a

    300m2 space.

    This is a shopping and business area with a great transportation network.

    There are some college campuses nearby. It is also near a very busy

    nightlife, we expect people to gather often before leaving to nearby night

    clubs.

    Another concern was the purchasing power of the local inhabitants which we

    defined as above 100 index.

    As we can see in the next map, this is a high valuated area

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 17

    http://www.infoempresas.com.pt/http://www.thelisbonmba.com/Default.aspxhttp://www.infoempresas.com.pt/
  • 8/2/2019 Doce Dieta M.plan - G14

    18/26

    Marketing Management

    6.4 Promotion

    Website, A well optimized website can yield positive organic results and keep

    the company in the mind of coffee drinkers who look for their next coffee

    experience online;

    Facebook and Tweeter are widely used, there are some interesting;

    Search engines key words (coffee shop, pastry, healthy, etc);

    The main objectives of our advertising are:

    Initial brand advertising With this we present our product using

    magazines/newspapers and brochures.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 18

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    19/26

    Marketing Management

    Customer contacts With this we will create and maintain a regular

    client basis. In order to achieve it, our clients can sign up in our

    internet site. Regularly information regarding our products,

    events and brand. This strategy will be highlighted in each of the

    advertising strategies.

    Continuous brand advertising.

    The replacement of the initial brand advertising with a less

    aggressive and costly version as the project evolves and the

    brand becomes known.

    7 SHORT & LONG TERM PROJECTIONS

    Unit Variable Costs

    Doce Dieta is operating in an industry capable of supporting high gross

    margins. With the objective to define a realistic variable cost we decided to

    compare the price of some products bought in a normal supermarket with

    the price of our less expensive competitor.

    #6 Blueberry Muffin

    Ingredients:

    cup skim milk = 0,085 L = 0,06 cup vegetable oil = 0,0425 L = 0,06

    1 egg =0,09

    1 and cup flour = 0,255 Kg = 0,15

    cup sugar = 0,125 Kg =1,5

    Total for 6 Blueberry Muffins = 1,93

    Total cost for 1 Blueberry Muffin =0,32

    Minimal Price of 1 Blueberry Muffin =1,2

    Min Per-unit revenue = 0,88

    Cost/Price = 27%

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 19

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    20/26

    Marketing Management

    In order to simplify we considered the monthly energy, gas and other costs

    as fixed costs. So we can say that the variable costs in relationship to per-

    unit revenues are low. Lets say that variable costs are equal to roughly 25%

    of per-units price of our less expensive competitor. In terms of the unit price

    that we are using as units, this represents an unit cost of 0,35. It is our

    hope that as we move into the future and continue to build relationships

    with our suppliers, this value will decrease further, approaching a value of

    20% which represents an unit cost of 0,28.

    7.1 Fixed Costs

    Fixed costs for Doce Dieta include: rent costs, facility lease costs, wage

    costs, monthly costs (energy, gas, ) and other costs which Doce Dieta

    must maintain on a monthly basis. These costs are fixed and aren't

    impacted by an increase or a decrease in sales.

    In order to implement our coffee shop we need to be located in high costly

    Lisbon zone. After some research we reached a price of 20/m2, which

    means, for a 300m2 a monthly cost of 6.000,00.

    To implement our brand view and quality we will need to get a business

    lease for equipment and improvements. We defined that 300,000 would be

    more than enough and we got the following leasing simulation which

    represents a monthly cost of 3.590,40 with an initial payment of 45.000

    and a residual value of 50.000:

    The cost related with employees can be very difficult to predict, but based

    on the 2009 Estudo Econmico Sector da Indstria de Panificao,

    Pastelaria e Similares the mean monthly wage for this industry is 650.

    Since we are in Lisbon and we are aware of the wage discrepancies to other

    regions of Portugal we decided to use 1,000 as the monthly wage which

    results in 1,166.67 when we account for the 14 annual wages. For 300m2,

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 20

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    21/26

    Marketing Management

    we decided to use 8 employees, which is more than our competitors. This

    represents a monthly cost of 9,333.33.

    Monthly costs we calculated:

    Monthly Costs

    Rent 6.000,00

    Leasing 3.590,40

    Wages 9.333,33 Energy, gas, 1.500,00

    Total 20.423,73

    7.2 Break-even Analysis

    In order to do the break-even analysis we decided to use the maximum,

    minimum and the mean value of our competitors and to try to position

    ourselves as less than Starbucks but higher than the rest of the competition

    as on the perception diagram.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 21

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    22/26

    Marketing Management

    Max Min Mean Doce Dieta

    Average Unit Price 2,22 1,39 1,69 2,00

    Expected Unit Sales 19.938 9.117 13.518 ?

    Average Per-Unit Variable Cost 0,35 0,35 0,35 0,35

    Estimated Monthly Fixed Cost 20.424 20.424 20.424 20.424 Break-Even (#Sales) 10.925 19.607 15.261 12.357

    As we can see by the break-even analysis compared with the expected unit

    sales of our competitors, a 2,00 unit price is good and realistic price

    position since the mean expected unit sales are 15261 while our 2 position

    gives a break-even of 12357 sales.

    7.3 Sales Forecast

    Revenues for the first year of operation are based on an almost 10% growth

    rate from month to month. This is an aggressive estimate, but we feel that

    our strong emphasis on marketing will have positive results.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 22

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    23/26

    Marketing Management

    Annually, beyond the first year of operations, we're predicting a growth rate

    of roughly 10%. We'll have a better idea of potential growth rate beyond

    year one as we make our way through our first year. The plan will be

    updated as we receive more information.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 23

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    24/26

    Marketing Management

    With this sales forecast we can also calculate the market share growth during 5years.

    7.4 Advertising Budget

    The advertising budget will consistently equal approximately 20% of the

    total sales revenue with the exception of the first year where we will have a

    budget of 30.000 with the objective to create an initial brand advertising.

    One of our strongest strengths is our marketing and brand building

    capabilities, and the aggressive marketing budget is a reflection of the

    importance we attribute to our marketing activities. It is our hope to

    increase this budget should sales and efficiencies of scale allow us to do so.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 24

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    25/26

    Marketing Management

    2011 2012 2013 2014 2015

    Sales 299.379,97 329.317,97 362.249,77 398.474,74 438.322,22 Direct Revenue 247.404,28 272.144,71 299.359,18 329.295,10 362.224,61

    Sales Revenue -42.680,52 27.059,91 54.274,38 84.210,30 117.139,81

    Brochures Cost (100,000) 5.000,00 5.000,00 5.000,00 5.000,00 5.000,00

    Site Cost 285,00 285,00 285,00 285,00 285,00

    Newspaper/Magazine Cost 44.928,00 0,00 5.616,00 11.232,00 16.848,00

    #months 24 0 3 6 9

    Advertising (20%) 50.213,00 5.285,00 10.901,00 16.842,06 23.427,96

    Total Revenue -92.893,52 21.774,91 43.373,38 67.368,24 93.711,85

    7.5 Contingency Planning

    This marketing plan is just that, a plan. Plans don't always work out and we

    have to be ready to deal with the likelihood that Doce Dieta won't make

    good on the projections outlined in this plan. We also have to prepare

    ourselves for overwhelming success.

    The following are some possible scenarios:

    Revenues exceed projections - A serious increase in revenues over

    projections will give us an opportunity to increase our marketing budget andpossibly add an additional location increasing our market share.

    Revenues miss projections - We have to be prepared for this possibility.

    If we miss our projections, we need to attract more customers in order to

    achieve the forecast sales by doing price promotions and partnerships. The

    danger in this scenario is that the first reaction to missed projections is to

    decrease spending, particularly marketing expenses. We can't do that! We

    have to get our message out to the target market, and we can't do that ifwe stop spending on marketing. Additional capital infusions may become

    necessary and that possibility is detailed in the business plan.

    Florbela Pinto, 153010151 Jorge Oliveira, 153010142 Lus Bentes 153010139| 25

    http://www.thelisbonmba.com/Default.aspx
  • 8/2/2019 Doce Dieta M.plan - G14

    26/26

    Marketing Management

    8. Conclusion

    Starbucks customers have been telling us that they want better tasting andhealthier food options when they visit our stores said Sandra Stark, vice

    president, Food Category, Starbucks Coffee Company.

    Many people do not realize how many hidden calories can be in the

    average smoothie or restaurant salad. And no one wants to think theyre

    making a healthy choice just to realize theyve accidentally consumed half

    their days calories on a smoothie, said Katie Thomson, registered dietitian

    and senior nutritionist, Starbucks Coffee Company.

    People want food that tastes delicious, but the definition of healthy

    snacking is changing. People are asking what goes into their food, not just

    whether it is low-fat or low calorie, says Keith Ayoob, Ed. D., R.D. at Albert

    Einstein College of Medicine.

    We know that we can offer healthier food than any other competitor in our

    market and yet keep an emphases on taste and pleasure. Our study shows

    that our coffee shop concept is financially viable and profitable.

    Our conclusion is that this plan clearly motivates us to move forward to the

    next stage and that we can create this new brand and succeed!

    http://www.thelisbonmba.com/Default.aspx