The Karma Coffee House’s promotion mix By Group10 ， Class1

The Case’s Background The Karma Coffee House was recently opened in downtown Boston. The owner, Jen Allen, wants to attract many of the people who work in major office complexes nearby. She is hoping that they will stop at Karma for coffee before they start work, after they leave work in the evening, or during breaks or for informal business meetings. Jen decides that the local businesspeople represent her target market. Karma is within a few blocks of large office buildings where thousands of people work, but it is not directly on their path to or from the metro station. Thus, those people will not be aware of the coffee house unless Jen uses promotion strategies. However, she cannot afford to spend a lot of money on promotion, so she needs to develop an inexpensive and effective promotion mix. The success or survival of Karma is highly dependent on the effectiveness of her promotion mix. Based on the above background, plan a promotion mix (effective, and inexpensive) for Jen and her Karma.

Orientation Consumer groups: the people who work in major office complexes nearby Peak period: before people start work, after they leave work in the evening, or during breaks or for informal business meetings

Business environment Advantage:Karma is within a few blocks of large office buildings where thousands of people work.So they will have a large consumer groups. Disadvantage:Karma isn’t directly on their path to or from the metro station. Besides Jen can’t afford to spend a lot of money on promotion. It makes that people don’t know much about the Karma Coffee House.

After our discussion, we think we can take Promotion mix.

Promotion mix First ， we can make some direction boards to show the way to The Karma Coffee House for the local business people or office workers. We can set the boards near the office and metro station.

Promotion mix Second ， we can send some fliers to the people near the office and metro station in order to make more people know the coffee house. Also we will prepare some small gifts like calendar or a pack of paper towels, which have the coffee house’s logo or some pictures of its products. We will get these to some people to attract their attention.

Promotion mix Third we will get some discounts or coupons and trade stamps to customer in the holiday. It can make the customer go to the coffee house again. We also make some activities to attract people to come to the coffee house to have a try.

Promotion mix Finally ， we also give some free desserts or gifts for our customers who have spend money more than a certain price. For example ， we will give a customer who has spent more than 20 dollars a cake. It will make people order more drinks or foods.

Other sides Making the environment of the coffee house become comfortable is important. We can play some relaxing music. It can make the customers come back again or come with friends. Then the number of customers will become larger after some time.