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Mugshot Coffee Shop Marketing Plan

April 24, 2014

Table of Contents

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Executive Summary
Overview of marketing plan..............................................................................................................4
Company Description
Mission...5
Goals.5
Business Summary..5
Competitive Advantage..6
Company Analysis6
Industry Overview
Industry Analysis..7
SWOT Analysis...8
Competition.9
Mugshot Customers
Target Market9
Market Segmentation10
User Positioning.11
Marketing Mix
Product.11
Price11
Place11
Promotion..11
Financials
Financial Outlook..12
Implementation Plan
Objectives..13

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Market Growth13
Financial Objective..14
Key Success Factors.14
Evaluation & Control
Customer Feedback14

1. Executive Summary

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Mugshot is new coffee shop that will be located near the Northland Mall in Appleton. Mugshot is
scheduled to begin operations in August of 2014. Mugshot will be owned and operated by Sam Soukup,
Paige Schroeder, and Megan Landvatter.
Mugshot will provide an assortment of products. Our main focus will be on coffee-related beverages.
Our menu will consist of a variety of lattes, frappuccinos, bagels, muffins, pastries and a select few noncoffee beverages.
The primary goal of Mugshot will be to deliver quality food and beverages in an extremely efficient
manner. We believe that our unique methods for delivering quick, efficient service will maintain our
competitive advantage over our competitors. Our EZ-pass system will allow customers to breeze
through the drive thru with ease. While we feel that we have a strong competitive angle, we recognize
the challenges that will be presented to us through this business venture. These challenges include our
lack of brand recognition as well as the statistics regarding new businesses.
We have divided our customer base into three basic categories; parents, students, and working
professionals. Each of these segments in the market gives Mugshot a unique opportunity to serve.
Targeting our customers through different means, such as coupons or use of social media will allows us
to appeal to the customers in different ways.
Mugshots financial outlook requires use to serve roughly 100 customers per day. Given our location and
our unique EZ-pass system we believe this goal is attainable. Our primary concern at this point in time is
growing our customer base for our Appleton location. Once we have established our presence in this
area we will consider the financial implications of expanding to new locations.
Our promotional activities will revolve around the use of social media. The two social media websites
that we plan on using are Facebook and Twitter. We feel that these sites will appeal to our customer
base. Social media will allow us to post information about Mugshot regarding deals and events. We also
have a website that gives customers a place where they can access their Mugshot membership account.
Through the website customers will be able to manage their account and keep up with the latest news
about our coffee shop. Mugshot also plans on having a strong presence in the Appleton community. We
believe that being active members of the community is the best way to show the customers that we
care.
Mugshot has no immediate plans to expand. We intend to use our coffee shop as an opportunity to gain
experience as business owners. We plan on growing brand recognition for Mugshot with the Appleton
location. While we may consider expanding in the future, it is not in our immediate plans.
We will be evaluating our performance through our website. Customers will be able to leave reviews on
our website and rate their level of satisfaction. Customer comments will have an effect on our
operation. Customer satisfaction is very important to Mugshots success.

2.0 Company Overview

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2.1 Mission
Mugshots mission is to provide an assortment of quality beverages and breakfast items at an affordable
price and in an efficient manner. We will treat our customers and employees with the respect that they
deserve and view every encounter with a customer as a new way to serve. Following these objectives
will provide our customers a satisfactory experience and give us the opportunity to serve our
community in new and exciting ways.
2.2 Goals
1. Mugshots number one goal will always be to provide our customers with an enjoyable experience.
2. Increase our annual sales by ten percent
3. Increase awareness through means of social media and community events
2.3 Business Summary

Individual Customers: Mugshot will doing most of its business with individual customers. Many
people find themselves short on time throughout their day and Mugshot will fill the need for
quick service.
Business Customers: Mugshot will provide businesses with items needed for meetings and
conferences. We will appeal to the business customers by offering a ten percent discount to
business that would like us to food and beverages for their meetings. Mugshot believes that this
service is lacking in the coffee shop market. Many coffee shops do not provide this service and
we feel that we could effectively fill this need.

2.4 Competitive Advantage

Mugshot has a competitive advantage through the way in which the building is laid out. There will be an
easy way in and an easy way out. Since the coffee shop is a drive-through only, the employees will not
have to maintain a large shop that would need continuous cleaning. The workers will be able to focus on
quick service because there will be no other distractions. This also leads to the employee to give great
service by focusing on only one customer at a time. The coffee stand will be at a convenient location for
customers. Mugshot will be located in Appleton near the Northland Mall. It will be easy to get to for
people driving in to Appleton from the north side. It is close to schools, so parents can quickly grab a
coffee on their way to work after dropping their children off. It is near a grocery store and a department
store so people can quickly stop at Mugshot while running every day errands. The prices at Mugshot will
be between low-price sellers such as McDonalds and high-price sellers such as Starbucks. This will bring
customers that want quality coffee, but have a lower willingness to pay. Mugshot strives to make quality
coffee afford able for everyone. To reduce time customers will have the option of paying with their EZpass. Instead of having to take the time to pay the cashier, the EZ-pass will track the payment. This is a
great option for people who are always on the go. All they need to do is order, get their coffee, and go.
EZ-Pass:

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The EZ-pass system that many states use in order to make the payment of tolls more efficient will be
used in the company Mugshot. This system is operates by a prepaid account or an account linked to a
credit card that is also connected to the cars Mugshot pass that is placed on the dashboard of the
vehicle. The person will place their order on the driver feedback display labeled in red and the money
will automatically be charged using the antennae above the car.

2.5 Company Analysis

The companys goal is to provide quality coffee at moderate prices for the customers. The goal is
attainable through great service. Moderate price will draw people in, because they will want to save
money instead of going to a higher-priced place. Quality coffee will keep customers coming back. The
work environment will be very fast-paced. Employees will serve customers quickly, because they only

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focus on one customers needs at a time. The EZ- pass also saves time because the employees will not
have to take the time to count out change. The quick service will keep customers returning, because it
will be a time saver in a society that never seems to have enough time. Mugshots main strength is that
it is drive-through only. It allows employees to focus only on the drive-through without having to look
after a larger shop. Customers may by drawn in because drive-thrus are usually associated with fast
service. However, Mugshots weakness is that the company is entering a market that already has many
competitors. Many of the competitors have internationally recognized brands. People already know the
quality and prices that are offered. To combat this issue Mugshot will have to use multi-channel
marketing. Advertisements in the newspaper and on social media, coupons, and flyers at local business
can help get the news out about Mugshot.
3.0 Industry Overview
3.1 Industry Analysis
Some Large Coffee chains are becoming quite inconsiderate, charging far more than they should. Others
take too long to make drinks due to the lines that they have to deal with. Customers need an alternative
to these expensive or inefficient suppliers of coffee. This is where Mugshot plans to come in, with a less
expensive cost and quicker service then the rest of the Industry.

Market Growth:
The coffee industry is continually growing. Seventy- five percent of caffeine in the United States comes
from the consumption of coffee. According to smallbusiness.chron.com, 30 million Americans drink
specialty coffee drinks on a daily basis. There has been a seven percent annual growth rate of coffee

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shops. Coffee shops are the fastest growing subdivision of the food service industry. The coffee industry
is a good business to get into because of the trend of increase specialty coffee consumption.

Market Needs:
The north side of Appleton is in need of quality coffee at a low price with quick service. Most places take
longer because they also serve customers inside of their shop. Quicker service is need for people who
are always on the go. Mugshot will fill this need by being a drive-thru only. When costumers drive up to
the window, they know that they will be served right away without having to wait for the employees to
help someone else first. When they place the order, their coffee will be made quickly in front of them.
Quality coffee with quick service is a must for the busy people of Appleton.
3.2 SWOT Analysis
Strengths

Different Services (Punch card app)

More realistic prices (STB-McD)

One location, better customer service then chains or larger companies.

Faster service

Weaknesses

Only 47% of retail businesses are still in business after four years. (Statisticbrain.com)

Service quality, reliance on employees.

Sensitive to global changing markets

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Opportunities

Expansion-Franchises in other cities/states/countries.

Jobs for local population.

Faster, more convenient location.

Threats

Closure-failure in the first years of startup.

Saturated market. (already lots of companies)

Competition- Starbucks, Collectivo, McDonalds, Copper Rock.

Price reliance on suppliers of coffee beans and dairy producers.

Zero brand recognition/ brand loyalty

3.3 Competition
The largest holders of the coffee market in Appleton are Starbucks, Copper Rock and McDonalds. All of
these companies have more than one location and therefore would be considered a chain, especially
Starbucks and McDonalds. Using strategic pricing we were able to figure out a competitive price below
that of Copper Rock and Starbucks and slightly higher than Starbucks.

Starbucks:

Starbucks is arguably the most well-known coffee shop in the world. Starbucks has 13,279 stores in the
United States alone! It has about 20,891 stores total in 64 countries. Starbucks is a hybrid store with a
drive thru and a sit down caf, bringing in the best of both worlds. However, Starbucks also has the
brand recognition of costing a larger than average amount of money.

McDonalds:

McDonalds is the largest chain of Hamburger fast food restaurants in the world. In order to branch out
in its customer basis McDonalds has recently been pushing its product line of McCafe. McCafe is
McDonalds line of coffee and coffee related drinks in order to target customers who arent just looking
for food but rather a coffee type beverage. There are currently 1,300 stores completely devoted to just
selling McCafe items. Not including the Hamburger chain stores. Most of the Hamburger stores carry a
limited selection of McCafe items and therefore have a smaller menu then most cafes.
4.0 Mugshots Customers
4.1 Target Market

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Mugshot is a small coffee shop geared toward the working class commuters passing through Appleton.
Many competing coffee retailers have drive-thru options for their sales of coffee however, Mugshots
location will be of key importance in order to bring in customers as well as our Punch card app and the
E-Z pass technology, our speedy service will surpass theirs to lead to greater customer satisfaction. By
being a single location we can focus on our service and consistency compared to other larger chains.
This will allow us to bond with and build customer loyalty in the immediate geographical area as well as
some in distant areas that are commuting through this area regularly.
4.2 Market Segmentation
Mugshots customer base can be divided into three basic groups: Working professionals, parents, and
college students. These groups of people often find themselves short on time due to demanding
schedules. Mugshot sees their hectic schedules as an opportunity to serve their needs.
Working Professionals:
Working professionals are another group that could benefit from Mugshots speedy service. 67% of
employees believe that they do not spend enough time with their children and 63% of married
employees believe that they do not spend enough time with their spouse. (lifehack.org) This particular
group already feels crunched for time. They do not want to be spending time in waiting for coffee or
socializing in a coffee shop, they want to be in and out. Mugshot gives them that opportunity.
Parents:
The next segment we would like to focus on is parents, particularly parents with small children. Parents
are constantly crunched for time. They have to pick up and drop off their children, many of them have
careers, and they simply do not have time to spend sitting around a coffee shop. We plan on targeting
this group in two different ways. The first way is with our quick service. Like our other groups of people,
moms need their products quickly. Mugshots drive thru service will benefit them greatly. The second
way we plan on targeting this group of people is through coupons. According to a study done by Mom
Central showed that 86% of parents felt like better parents when they used coupons. Unlike traditional
promotional deals, Mugshot will have coupons automatically deducted from purchases made with their
membership card. This will save moms from going through the hassle of having to clip coupons. Their
online account will show them which deals they were given when they purchased their items. Our
promotional deals will be advertised through newspaper ads and on our social media accounts so that
they are aware of the deals that we are offering.
College Students:
Finally, our last market segment consists of students. Like the previous segments, students need a fast
coffee option. They all have busy schedules filled with school, work, and social lives. Mugshot will target
this segment through the means of social media. This demographic features teenagers; 75% of which
the Huffington Post reports have social media accounts. Reaching out online will allow us to reach a
larger audience and post deals and promotions through our social media accounts.

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4.3 User Positioning
Mugshot will focus on providing efficient service for its customers. By eliminating the sit down aspect of
the traditional coffee shop we will be able to give all of our attention to speedy service. The drive-thru
feature will give us the opportunity to provide our customers with quick food and beverages.
Positioning strategies:
1. While other coffee places include drive- thrus, Mugshots main focus is the drive- thru. Our attention
will be entirely on giving customers immediate attention.
2. Removing the sit down aspect from our coffee shop lowers our operating costs. This allows us to place
our products at a competitive price.

3. Other coffee houses offer a social aspect to their product. They provide appealing social settings for
customers to mingle with each other. The comfortable atmosphere breeds social connections. The
market for social coffee shops has already been heavily saturated. Mugshot is not looking to provide
customers with a space to connect with others. Instead we are emphasizing customers that simply do
not have time to sit down and enjoy their coffee. These customers need their food and beverages at an
efficient rate. Since our main objective is quick service we will be able to challenge our competitors in
this aspect.
5.0 Marketing Mix
5.1 Products/Services Offered
Mugshot will offer a variety of coffee-based products. The menu will consist of lattes, frappuccinos, noncoffee drinks, and select breakfast items. Dividing our menu into sections will allow the customer to
quickly and easily choose a beverage that will satisfy their wants. The menu will be divided into four
separate sections: Express Espressos, Frappuccinos, Bits & Bites, and Classics. These sections will offer a
little bit of everything for our customers. Traditional hot coffee beverages, cold coffee beverages,
breakfast items, and non-coffee beverages add variety to the menu.
5.2 Price
Mugshot beverages will be moderately priced. Finding a mid-point between Starbucks and Mc Donalds
will allow us to provide quality coffee without it being seen as a luxury. Our customers need quality
products at an affordable price. Offering a punch card app will give our customers the value that they
desire while also giving them a reason to return to Mugshot. In addition we will offer frequent coupons
and promotions that will give our products value.
5.3 Place
Our products will only be available at Mugshot. While we may expand in the future, to start off we will
only have one location on the north side of Appleton where our products will be served.

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5.4 Promotion
Social Media:
Mugshot is a locally based business. Our goal is to reach out to the community on a local level. Our
social media efforts will be focused on Facebook and Twitter. Facebook will allow us to reach out to the
community on a more personal level. We can post various statuses involving promotions on our
Facebook page. Additionally, our customers can share our page with their friends, expanding our
customer base.
Newspaper Advertisements:
Mugshot will reach out to the community through newspaper advertisements. This will allow us to reach
the Appleton community in a very specific way.
Deals:
Through the EZ-pass system customers will automatically be given deals through their membership
cards. Promotions will automatically be applied to their purchases which will save them from the hassle
of having to cut out coupons or enter promo codes. Deals and promotions will be posted on our social
media pages and in newspaper ads so that our customers know that they are being offered.
6.0 Financials
Initial startup costs consist of many things, most expensive of which will be cost of rent and building at
about $25,000. Shop equipment would cost about $8,000 and the initial inventory would cost about
$2,000. Adding all of these expenses together give Mugshot a start-up expenditure of $35,000; 20,000
of which the owners have already funded into the business. After the coffee shop opens the operating
costs will consist of rent ($550), maintaining inventory (800), employee salaries ($5,400) and marketing
(3,000). (Marketing is subject to change over time). Therefore the monthly operating expense will be
about $9,750. This means on average the company should be aiming for 108 sales a day, In order to
break even.

Pro Forma income statement

Year 1

Year 2

Sales

$110,000

Gross margin
Gross margin %

Year 3

Year 4

$120,000

$125,000

$127,000

$127,000

($6,600)

$30,000

$80,000

$99,060

$99,060

(6%)

25%

64%

78%

Year 5

78%

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Net profit

(7,000)

3,000

8,000

10,000

10,000

7.0 Implementation Plan

7.1 Objectives
Start Date:
Mugshot will begin operation on August 16, 2014. This start date not only gives an appropriate amount
of time to prepare, but it is also strategic as it will allow us to capture the attention of one of our market
segments, moms. The August means that school is right around the corner. We can use this as
opportunity to appeal to moms as they may need an alternative solution that will offer them faster
service.
Expansion:
Mugshot currently has no immediate plans to expand. Our focus at the moment remains solely on the
Appleton location and serving our customers in this area.
7.2 Marketing-Growth
Deals and Promotions:
Mugshot will market to its target customers by offering different deals and promotions. This includes
various coupons and the punch card application.
Increase Networking:

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Increase networking through the means of social media. Expanding our marketing efforts through social
media will expand our customer base. Our target customer base also uses social media frequently. Social
media will allow our customers to follow us and take advantage of our various deals and promotions.
7.3 Financial Objectives
Financial Status:
Mugshots financial outlook requires use to serve roughly 100 customers per day. Our goal is to grow
our customer base by ten percent in the next year.
7.4 Key Success Factors
Crafting brand awareness:
Mugshot will differentiate itself from competitors by focusing solely on fast service. We are not
providing customers with a comfortable place for them to sit and relax; rather we are providing them
with service that will fit into their busy schedules.
Effective use of EZ-pass:
Mugshots success relies strongly on the effectiveness of the EZ-pass system. It is important to keep this
system working and free from technical errors.
Customer Service:
It is extremely important for the employees of Mugshot to value our customers. We want every
customer to be satisfied with our products. This means taking on a customer is always right mentality
and making sure that our customers are pleased with their food and beverages. Without customers,
Mugshot would be non-existent so we want to show our customers that we appreciate their business.
8. Evaluation and Control
On the companys website, customers will be able to rate the service and leave comments and
suggestions. This information will be used by management to evaluate the companys service and
provide ways in which the company can improve. Management will be checking the website daily to
ensure customer satisfaction. To address any issues that customers have, management will reply on the
website in a timely fashion. All replies we thank the customer for their business and for taking the time
to leave a comment or suggestion. Customer satisfaction is Mugshots primary goal.

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Works Cited
Copper Rock Coffe Co. Menu. Retrieved from http://www.copperrockcoffee.com/.
Dr.pennypincher. (2013, August 30). How Much Does it Cost to Make Coffee?. Retrieved from
http://drpennypincher.hubpages.com/hub/How-Much-Does-it-Cost-to-Make-Coffee.
Jurevicius, O. (2013,February 25). SWOT analysis of Starbucks. Retrieved from
http://www.strategicmanagementinsight.com/swot-analyses/starbucks-swot-analysis.html.
Jurevicius, O. (2013,March 10). SWOT analysis of Mcdonalds. Retrieved from
http://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html.
Marketing to Moms. (n.d.). Transformation Marketing. Retrieved April 2, 2014, from
http://transformationmarketing.com/wp-content/uploads/2013/03/MarketingToMoms
Monitoring the Mom Market. (n.d.). Media Cache. Retrieved April 2, 2014, from http://media-cacheec0.pinimg.com/736x/92/01/ea/9201ea33e
National Coffee Association. (2013). National coffee drinking trends 2013. Retrieved from
http://www.ncausa.org/i4a/pages/index.cfm?pageid=731.
Porta, M. (n.d.). How to Define Your Target Market. Inc.com. Retrieved April 23, 2014, from
http://www.inc.com/guides/2010/06/defining-your-target-market.html
Scanners, Twitter blamed for erroneous reports on Navy Yard shootings - The Buffalo News. (n.d.).
www.buffaloNews.com. Retrieved April 1, 2014, from http://www.buffalonews.com/news-wireservices/scanners-twitter-blamed-for-erroneous-reports-on-navy-yard-shootings-20130916
Social Media Social Life. (n.d.). Huffington Post. Retrieved April 2, 2014, from
http://i.huffpost.com/gen/663915/thumbs/o-SOCIAL-MEDIA-TEENS-570.jpg?4
Yohn, D. L. (n.d.). 2 Target Markets for Restaurants. Best Restaurant Target Demographics are Moms and
Millennials.. Retrieved April 23, 2014, from http://www.qsrmagazine.com/denise-lee-yohn/2-targetmarkets-restaurants
"What Would You Do With Two Extra Hours A Day?." Lifehack RSS. N.p., n.d. Web. 24 Apr. 2014.
<http://www.lifehack.org/articles/productivity/what-would-you-with-two-extra-hours-day.html>.