What should a plan include? Ted Mitchell

Choose a Target Market Recognize what they are buying 1) High end, place to relax, meet, ruminate, study, 2) In-Out coffee to go model 3) Green crowd

You need a stated and clear overall goal and objective(s) The goal is to maximize retained earnings by the end of week 16. (cumulative net income) Make it specific, Forecast the most likely results: Forecast the demand in week 16 Forecast the sales revenue in week 16 Forecast the GROS in week 16 Forecast the net income in week 16 Forecast your retained earnings in week 16

The 4 P’s are the Basic elements of any marketing strategy Price – State the selling price, plus Coupons discounts – Estimate markup on price Mp, Breakeven price BEP Product – State the coffee quality, how many servers, server training – Estimate cost per cup Promotion – State the number of radio spots, print how often, dollar budget – Estimate time of max awareness (cost to achieve) Place – Furniture, weekly hours of operation

Each of the 4 P’s Should have be operational and have a measurable objective based on your experience with the practice game More Detailed Plans will include Weekly Objectives

Objective for your Pricing strategy Target number of cups sold for week – Volume above Breakeven Quantity Target Revenue for the week Margin above the Breakeven Price Target Customer satisfaction rating

Objective for your Product strategy Coffee Quality (customer rating) Server turnover rate Server / cup capacity Cups sold per server

Objective for your Place strategy Target number of cups sold per hour Target Revenue per hour Target Customer satisfaction rating (lines, service) Minimum capacity levels

Objective for your Promotion strategy Forecasted Week for 90% Awareness level Purchasing Plan: Combination of radio spots and/or print Total cumulative promotion budget for first month Role of radio and print ads after week 8

Objectives for Key Weeks Profit objectives and hurdles in key weeks (months Target week to achieve breakeven profit Weekly Gross profit, by week 8 and week 12 Gross return on sales, GROS Weekly Marketing Profit, by week 8, week 12 Marketing Return on Sales, MROS Marketing Return on Investment, ROME Target weekly profit by week 8 and week 12 Monthly Net income by week 8 and week 12 Net Return on Sales by week 8 and week 12 Contingency plan if objectives are not reached