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


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


Break-Even

Target Market

Median Household Income (U.S. Census Bureau): $72,568

(vs. $55,452 Los Angeles County Median)


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


Break-Even

Competition Landscape: Direct


Break-Even

Indirect Competition


Break-Even

Product: Urban Farm Café


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


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


Break-Even

Café Description

• Cozy & comfortable

• Simple, yet stylish

• Color scheme: shades

of green, orange, white

• “natural,” “organic,”

“environmentally

friendly”


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


Break-Even

Price

Profit Objective

15% Gross Profit Margin

Pricing Strategy

Market Skimming Strategy

Value-Based Pricing


Break-Even


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


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


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.


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


Break-Even

Channel Tactics


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


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).


Promo

Break-Even

Promotional Activity Schedule


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


Break-Even

Website

(120K Impressions)

Mobile Website

Advertising


Break-Even

Direct Mail w/coupons

(280K Impressions)

Newspapers

Sunday Edition

(1.25M Impressions)

Online Advertising (CPM)

= 24M Impressions

Social Media Marketing


Break-Even

Café Blog

+ Bloggers

1.8 Million

Impressions

Event Marketing


Break-Even

Farmers’

Markets

Cooking

Demonstrations

Food Tasting

Events

(122K Impressions)

Public Relations


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


Break-Even

2.5M Impressions

Impression Calculation


Break-Even

Break-Even Point


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

urban farm cafe marketing plan (winter 2010)

Education

promo break

promo break

increase awareness

geographical

eat local

promotional

eat fresh

amp