JavaNet Internet Cafe
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JavaNet has three main strategies. The first strategy focuses on attracting novice Internet users. By providing a novice-friendly environment, JavaNet hopes to educate and train a loyal customer base.
The second and most important strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers serves an important function at JavaNet. Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting.
The third strategy focuses on building a social environment for JavaNet customers. A social environment that provides entertainment will serve to attract customers that wouldn't normally think about using the Internet. Once on location at JavaNet, these customers that came for the more standard entertainment offerings, will realize the potential entertainment value the Internet can provide.
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JavaNet has one purpose.
JavaNet provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment.
JavaNet's marketing will consistently build on this mission. Everything we do, from the pricing structure for our services to the ambiance we create, must be done with this mission in mind. We cater to: downtown business people, traveling business people, university students, and seniors. Our ambiance and our services are designed for this clientele and our marketing efforts are focused on capturing this market.
JavaNet's marketing objectives for the first three years of operation include:
The goal of this marketing plan is to outline the marketing strategies, tactics, and programs that will make the vision outlined in the JavaNet business plan a reality in the year 2000. The vision outlined in the business plan includes sales of roughly $275,000 in the first year with that figure increasing 10% annually.
JavaNet intends to cater both to people who want a guided tour of the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, JavaNet will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use JavaNet's PCs, or plug their own notebook computers into Internet connections. JavaNet's target market covers a wide range of ages: from members of "Generation X," who grew up surrounded by computers, to seniors from local retirement centers.
Our primary target markets include:
JavaNet will position itself as an upscale coffee house and Internet service provider. Business people of all types will use JavaNet as a place to hold meetings and catch-up on email communications. Students from nearby downtown housing centers will use JavaNet as a place to socialize and discuss the latest Internet sites. Seniors from downtown retirement centers will experience the Internet for the first time at JavaNet. Programs designed to teach newcomers about the power of the Internet will help build customer loyalty and spread the word about the services JavaNet offers.
The following are the three key strategies JavaNet will focus on:
JavaNet's first strategy focuses on attracting novice Internet users. JavaNet plans on attracting these customers by:
JavaNet's second strategy will be focused on attracting power Internet users who will provide an important function at JavaNet. JavaNet plans on attracting this type of customer by:
The third strategy focuses on building a social environment for JavaNet customers. A social environment that provides entertainment will serve to attract customers that wouldn't normally think about using the Internet. Once on location at JavaNet, these customers that came for the more standard entertainment offerings will realize the potential entertainment value the Internet can provide.
JavaNet's marketing efforts will focus on building a loyal base of customers that will use the services provided on an almost daily basis.
As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access to the information superhighway is quickly becoming a necessity of life. JavaNet provides the local community with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that JavaNet provides.
JavaNet bases its prices for coffee and specialty drinks on the "Retail Profit Analysis" provided by our supplier, Allann Brothers Coffee Co., Inc. Allann Brothers has been in the coffee business for 22 years and has developed a solid pricing strategy.
Determining a fair market, hourly price for online use is more difficult because there is no direct competition from another cyber-cafe in our area. Therefore, JavaNet considered three sources to determine the hourly charge rate. First, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider such as America Online. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a combination of both pricing schemes. Thus, it can quickly become a high monthly cost for the individual. Second, JavaNet looked at how cyber-cafes in other markets such as Portland and Ashland went about pricing Internet access. Third, JavaNet used the market survey conducted in the Fall of 1998. Evaluating these three factors resulted in JavaNet's hourly price of $2.50.
JavaNet will spend almost fifty thousand dollars in its first year of operations to build a brand and a loyal customer base. Marketing efforts will be focused on the local market, and the campaign will run the entirety of 1999, increasing roughly 10% per year to match increased sales revenue. The marketing budget will consistently equal almost 20% of sales.
A Few Specific Marketing Efforts:
This topic is a critical reminder of the fact that JavaNet is a service business. The success of our business depends upon the quality of the service we offer and delivering that service consistently. JavaNet is dedicated to delivering this quality service.
Dedicated to Quality Service Programs:
In 1998, a market survey was conducted to help evaluate the business viability prior to its inception. The survey was a valuable resource for establishing pricing and market needs. We will continue to conduct a survey of our customers and potential customers on an annual basis. Survey results will be used to create new marketing programs and monitor the performance of current marketing programs.
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