Download - Urban Farm Cafe Marketing Plan (Winter 2010)
Eat Fresh.
Eat Well.
Eat Local.
Agenda 1. Background
Situation, Solution, Mission, Target Market, Economic Environment, Competition Landscape
2. Product
Product Overview, Revenue Objectives, Differentiation Strategies, Product Tactics
3. Price
Profit Objectives, Pricing Strategies, Tactics
4. Place
Channel Objectives, Distribution Strategies, Channel Tactics
5. Promotion
Exposure Objectives, Promotional Strategies, Tactics
6. Break-Even Point
7. Question & Answer
Background
According to the most recent data released
by the Centers for Disease Control and
Prevention:
1 out of every 3 American adults is obese
2 out of every 3 are overweight
Intro Product Price Place Promo Break-Even
Situation
• Obesity is largely a result of unhealthy eating habits and a
sedentary lifestyle
• Americans are increasingly living faster-paced lives, working
longer hours, & enjoying fewer hours of leisure time & less
physical activity (U.S. Bureau of Labor)
• 70% of adults say they want to eat healthier (National
Restaurant Association)
Intro Product Price Place
Promo
Break-Even
Our Solution
• Tagline: “Eat Fresh. Eat Well. Eat Local.”
• A fun, warm and welcoming café with simple, modern décor serving all
organic, locally grown, and hormone-free ingredients
• Quick & efficient service
• Meals customized to order
• Located in the heart of Woodland Hills, Ca
• Socially responsible & LEED (Leadership in Energy and Environmental
Design) certified
Intro Product Price Place Promo
Break-Even
Mission
1. To be a reliable go-to spot in
the community for the
healthiest food options
2. To increase awareness about
Urban Farm Café brand and
attract loyal customers
3. Ultimately establish more
locations throughout the
nation
Intro Product Price Place Promo
Break-Even
• Woodland Hills &
surrounding areas
• Ages 24 – 55
• Middle class & upper middle
class professionals (white &
green collar), students,
health conscious individuals
• Characteristics: self
sufficient, health &
environmentally conscious,
positive, socially responsible,
willing to pay a premium to
meet health goals
Target Market
Intro Product Price Place Promo
Break-Even
Target Market
Median Household Income (U.S. Census Bureau): $72,568
(vs. $55,452 Los Angeles County Median)
Intro Product Price Place Promo
Break-Even
Economic Environment
• Currently in Economic Recovery (2009)
• Consumer spending on goods & services
projected to increase gradually 2010-
2011
• Restaurant industry projected 2.5%
growth ($580 billion) in 2010
• Urban Farm Café scheduled to open in
January 2011 right when consumer
spending is expected to increase
Intro Product Price Place Promo
Break-Even
Competition Landscape: Direct
Intro Product Price Place Promo
Break-Even
Indirect Competition
Intro Product Price Place Promo
Break-Even
Product: Urban Farm Café
Intro Product Price Place Promo
Break-Even
Product
Revenue Objective: $960,000 first year (2011)
Strategies:
• Position restaurant as casual healthy restaurant,
encouraging frequent patronage
• Heavy promotion to develop brand and establish
reputation in town
• Offer customers a fun environment and alternative to
nearby chain restaurants
Intro Product Price Place
Promo
Break-Even
Tactics:
• Offer all organic, locally-grown,
hormone-free ingredients
• Involvement in local community
• Original menu with affordable
prices
• Simple, modern, welcoming
atmosphere
• Excellent customer service
• Guarantee origin of restaurant
ingredients
Product
Intro Product Price Place Promo
Break-Even
Café Description
• Cozy & comfortable
• Simple, yet stylish
• Color scheme: shades
of green, orange, white
• “natural,” “organic,”
“environmentally
friendly”
Intro Product Price Place
Promo
Break-Even
Menu (Regular & Seasonal)
• All organic salads
• Fresh homemade soups
• Gourmet sandwiches
• Deli sides
• Fruit desserts
• Artisan breads
• Homemade jams &
spreads
• Beverages: mineral
water, fresh-squeezed
juices, organic teas, free-
trade coffees
Intro Product Price Place Promo
Break-Even
Price
Profit Objective
15% Gross Profit Margin
Pricing Strategy
Market Skimming Strategy
Value-Based Pricing
Intro Product Price Place Promo
Break-Even
Intro Product Price Place Promo
Break-Even
Restaurant Overall
Cost Breakdown
•Food 25%
•Total labor 20%
•Management 10%
•Rent 10%
•Supplies 8%
•Maintenance 5%
•Marketing 5%
•Insurance/Legal 5%
•Waste management/pest
control 2%
•Utilities 6%
•Cash, Credit, Debit
•Pre-paid Meal Cards
•Payment in Café or
Online
Payment Options
•Quantity Discount
•End of the Day
Discount
Discounts
Pricing Tactics
Catering and Business Accounts
•Events
•Business Lunches
•Free delivery over $100 and
within 5 mile radius
Product Bundles
•Bundled picnic lunches in
spring/summer
•Meal deals
Intro Product Price Place Promo
Break-Even
Place: Physical Location Location Objective – Location that meets the following: high
human traffic during day, visible to passer-by, accessible,
adequate parking, zoned for business, meets size & layout
requirement, reasonable lease term, minimal renovations
Intro Product Price Place Promo
Break-Even
Description of Site
• Total Space Available: 2,282 SF
• Rental Rate: $3.25 /SF/Month
• Abundant parking available free
with validation.
• Adjacent outdoor patio space
available.
• Other tenants include: Daphne’s
Greek Café, The Coffee Bean &
Tea Leaf, Baja Fresh and The
Stand.
Intro Product Price Place
Promo
Break-Even
Distribution Channel Objectives
• Channel Objective: To double the number of
intermediaries between café and consumers
• Strategies:
1) Develop partnerships with local businesses and
educational institutions to increase word of mouth
2) Customer Loyalty Program to reward customers as
brand evangelists
3) Leverage relationships with suppliers to use
suppliers as café representatives
Intro Product Price Place Promo
Break-Even
Channel Tactics
Intro Product Price Place Promo
Break-Even
Partnerships
Yoga Studios
Gyms
Spas
Hotels
Schools
Customer Loyalty Program (Points)
Customer Reviews
Market Research Surveys
Blog Contributions
Social Media Mentions
Suppliers
Community Supported Agriculture
(CSA)
Cost Effective & Environmentally
Friendly Distribution
Promotion
• Exposure Objectives = 32 million (per year)
• Promotional Strategies:
Introduce Urban Farm Café to target market &
increase awareness of brand
Create brand equity
Build community around Urban Farm Café
culture
Intro Product Price Place Promo
Break-Even
Promotion
Budget = $40,800
Stage in Product Life Cycle:
Introduction (of new restaurant to
geographical location) and Growth (of a
"healthy casual dining" restaurant in this
particular geographical location).
Intro Product Price Place
Promo
Break-Even
Promotional Activity Schedule
Intro Product Price Place Promo
Break-Even
Allocate larger percentage of advertising budget towards end of the year
(right before the new year), and January - August, when people are more
likely to resolve eating healthier in the new year and leading up to summer.
Promotional Tactics
Intro Product Price Place Promo
Break-Even
Website
(120K Impressions)
Mobile Website
Advertising
Intro Product Price Place Promo
Break-Even
Direct Mail w/coupons
(280K Impressions)
Newspapers
Sunday Edition
(1.25M Impressions)
Online Advertising (CPM)
= 24M Impressions
Social Media Marketing
Intro Product Price Place Promo
Break-Even
Café Blog
+ Bloggers
1.8 Million
Impressions
Event Marketing
Intro Product Price Place Promo
Break-Even
Farmers’
Markets
Cooking
Demonstrations
Food Tasting
Events
(122K Impressions)
Public Relations
Intro Product Price Place Promo
Break-Even
“Urban Farm Cafe: Bringing Local
Farms to the L.A. Suburbs “
L.A. Times Wine & Food
3.75M Impressions
Partnerships
Local Businesses
Hotels
Gyms & Fitness Centers
Yoga & Exercise Studios
Spas
Customer Loyalty
Program
Intro Product Price Place Promo
Break-Even
2.5M Impressions
Impression Calculation
Intro Product Price Place Promo
Break-Even
Break-Even Point
Intro Product Price Place Promo
Break-Even
B.E.P = fixed costs
selling price - variable
costs
Fixed Costs =
$291,384.00
Selling Price = $15.00
Average Variable Costs
per Unit = $10.88
Break-Event Point
= 59,225 Units
Urban Farm Café Marketing Plan
Submitted By:
Grace Cheung
Flora Michalet
Lindsey Poss
Nisarut Thirasuntrakul
Angeline Wijaya
Q & A