2nd Cup Marketing Report

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3MC3 Marketing Report December 7, 2007 Second Cup – Streetsville Executive Summary The report enclosed pertains to the Second Cup Streetsville café which is located in Streetsville, Ontario. The purpose of the report is to find the goals of the company and find alternatives of how to reach these goals. Internal and external factors were analyzed in order to form these strategies. The low sales growth of only 1 to 2% at the café was the identified problem, with the main reason being Starbucks’ entrance into the specialty coffee market down the street. There was a noted sales decrease upon its entrance. The location of the Second Cup café is a prime corner spot, and its product is at par with its competitors. Second Cup’s beverages are slightly lower than their prime competitor Starbucks, but higher than Tim Hortons. However, the café has a product advantage with their 27 brewed flavours of in comparison with Starbucks’ 12 flavours. The long-term objective for Second Cup is to achieve a consistent sales growth of 10 to 15% in the next three to five years. This would be an increase of $40,000 in annual sales, selling approximately 50 more cups of regular coffee a day. The short-term goal is to increase the sales by 5%. This increase in sales is possible because there is already a loyal clientele base at the café, and the Second Cup premium coffee selection will attract coffee connoisseurs. It is also situated in an area known for its abundant salon and spa businesses which bring costumers in. Based on demand trends conducted through a survey, consumers view a friendly environment and the interior of the store to be of very high importance. The café is in need of interior renovations and an outdoor patio, but are costly and unattainable at the moment. Some other noted secondary demand trends found is the increase in preferences for premium coffee, and

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