Internet Coffee Shop Marketing Plan

JavaNet Internet Cafe

Marketing Strategy

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.

Mission

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.

Marketing Objectives

JavaNet's marketing objectives for the first three years of operation include:

• Grow total sales by 10% annually.
• Diversify the service offering to insulate the business against fluctuations in any one component of the revenue stream.
• Build customer loyalty through educational programs.
• Maintain a staff of enthusiastic employees excited to share their Internet knowledge with JavaNet customers.
• Build the JavaNet brand to the point where it becomes a household word in the area.

Financial Objectives

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.

Target Marketing

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:

• Students. The large student population will become an important part of the JavaNet customer base. The student population continues to grow with the success of the University. Evening entertainment, access to the Internet, and the up-scale ambiance will attract this demographic.
• Business people. The downtown business community is growing rapidly with the addition of a new Compu-tech building and a flurry of new professional centers. JavaNet will provide a perfect setting for business meetings. It will also give traveling business people an opportunity to plug their laptops into the JavaNet network to check email communications.
• Seniors. Represent a growing population of Internet users. JavaNet will target the seniors in the nearby downtown retirement centers by offering "Introduction to the Internet" classes. The JavaNet staff will hold brief classes in the off hours to educate seniors on how to use the Internet to communicate with friends and family. This will build a regular base of customers that wouldn't typically use the services offered by JavaNet.

Positioning

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.

Strategy Pyramids

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:

• Providing a novice-friendly environment. JavaNet will be staffed by knowledgeable employees focused on serving the customer's needs.
• A Customer Service desk will always be staffed. If a customer has any type of question or concern, a JavaNet employee will always be available to assist.
• JavaNet will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and the JavaNet computer systems.

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:

• Providing the latest in computing technology.
• Providing scanning and printing services.
• Providing access to powerful software applications.

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.

Marketing Mix

JavaNet's marketing efforts will focus on building a loyal base of customers that will use the services provided on an almost daily basis.

Services and Service Marketing

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.

Pricing

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.

Promotion

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:

• Local TV spots
• Print Materials
• Local Newspapers
• Local Radio Spots
• JavaNet Events

Service

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:

• We've gone to great lengths at JavaNet to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to please. An excess of staff members will consistently be on hand to provide service to JavaNet customers. Performance will be frequently evaluated both internally and through customer surveys.
• A highly valued member of the JavaNet staff will be the "Customer Happiness Representative." This individual will be available forty hours a week to monitor the level of happiness amongst JavaNet customers. This individual will be responsible for: developing customer satisfaction programs, monitoring happiness levels, responding to customer concerns, and the general well being of every JavaNet customer.

Marketing Research

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.