In order to build up its client base, Java Culture will use banners and fliers, utilize customer referrals and cross-promotions with other businesses in the community. At the same time, customer retention programs will be used to make sure the customers are coming back and spending more at the coffee bar.
5.2.1 Sales Forecast
Food costs are assumed at 25% for coffee beverages and 50% for retail beans and pastries. Proximity to the University campus will dictate certain sales seasonality with revenues slightly decreasing during the school vacation periods.
The chart and table below outline our projected sales forecast for the next three years.
Sales Forecast | | Year 1 | Year 2 | Year 3 …show more content…
| £73,000 | £80,300 | £88,330 | Subtotal Direct Cost of Sales | £204,400 | £224,840 | £247,324 |
The marketing thought
The essential weaknesses of the organization remain – drive-through, litter, sugar/fat-based products and service quality. But, remarkably, it has no significant competitive threats in its space. McDonalds has taken a big bite out of its breakfast business but in the pure coffee shop play, Starbucks competes at the top level and shops like Second Cup and Timothy’s seem to have been marginalised.
The 2011 strategic marketing plans for Tim Hortons are to focus on growth in Canada, targeted growth in U.S. target markets and to drive into long-term international growth, particularly in the Middle East
Since the Tim Hortons brand is synonymous with Canadian culture and coffee is a product with wide demographic appeal, the target market for this campaign is broad in scope. People most likely to engage in this contest are likely male and females aged 18-50; students and professionals