This essay Coffeplan Essays, Book Reports, Term Papers has a total of 2014 words and 11 pages.
Components of the Marketing Plan
I. Situation Analysis: Where are we now?
A. Historical Background
The coffee tree is native to Ethiopia. From there it spread throughout the Middle East. Until the 17th
Century all the coffee of commerce came from Arabia. Slowly, the efforts of Dutch merchants spread
cultivation to the East Indies. Coffee cultivation began in the Americas in the early 1700’s.
Most of the coffee trees of the Western Hemisphere are said to be descended from a single plant. It was
carried from a botanical garden in France to the island of Martinique in the West Indies by Capt. Gabriel
Mathieu de Clieu, a young military officer. He kept the tree alive during an arduous voyage by sharing with
it his limited ration of drinking water.
Coffee cultivation spread quickly through the West Indies in the next few years. Coffee was the first grown
in Brazil in 1729. Brazilian coffee exports achieved importance by 1809, and since the mid-1800’s Brazil
has by a considerable margin been the world’s leading coffee rowing nation. Between 1850 and 1900 other
Latin American nations developed extensive coffee plantations. Commercial coffee growing began in
central Africa about 1900. Africa, however, became a major source of coffee only in the period following
World War II.
The origin of man’s use of coffee is lost in the timeless legends of the Middle East. One of the most
appealing relates that some monks, after observing the liveliness of sheep which had eaten coffee cherries,
began to eat the cherries to help keep themselves awake through long nights of prayer. Consumption of
coffee probably began by the 6th century AD. A reference to coffee appears in a medical manuscript of AS
900. It was first used as a food, as a medicine, and as an ingredient in wine. Coffee as a beverage similar to
that of today - a water extracted of roasted beans - appeared around 1300. In the middle political
discussion. Rulers periodically attempted to suppress them; King Charles II of England termed
coffeehouses "seminaries of sedition."
When it became known that roasting coffee beans brought out their flavor, roasted beans were crushed,
boiled in water, and then consumed grounds and all. Spices were often added to the brew. In Egypt soon
after 1600, sugar was added to cut the bitterness of coffee. The use of milk became common in the late
1600’s. In Scandinavia and colonial America, eggs were added to reduce bitterness.
Espresso, which is brewed by forcing steam through finely ground darkly roasted coffee beans, became
popular in the 1940’s. It was the main beverage served in the coffeehouse that began to flourish near
college campuses. Again the centers of literary and political discussions, as well as poetry and folksinging ,
coffeehouse were favorite spots for the beatniks and hippies of the 1950’s and 1960’s.
B. Consumer Analysis
Bad Ass Coffee Company products are attempting to serve the serious coffee drinkers out there. We are
trying to focus of course on the older generation as well as the younger generation of coffee drinkers in the
United States today. We want to try and aim our coffee more toward the younger generation of coffee
drinkers since more and more young adults are starting to drink coffee.
a. The Bad Ass Coffee Company distribution channel can be segmented into 4 categories.
· Independent retailers
· Mass Merchandisers
· Our personal market customers
b. Bad Ass Coffee Company will be targeting the independent retailers as well as the supermarkets and
hope start our own brand name stores around the world.
c. The people who would probably enjoy our products the most would most likely be the baby boomer
type era. We would like to aim our products more toward the new generation of coffee drinkers to come.
d. Kids and minorities are not really going to be targeted as much as the young adults but everyone will be
recognized as a coffee drinker by our company.
e. The serious coffee drinker buys an average of 5lbs of coffee a week. Our goal is to try and raise this
average with the bad ass coffee name in every household.
C. Competitive Analysis
Some firms are forced to develop unique distribution channels because of inadequate promotion of
their products by independent marketing intermediaries. Not Bad Ass Coffee Company, we add a direct
sales force through selective distribution. We only sell our coffee to a limited number of retailers. In order
to get Bad Ass Coffee you must got to one of our many coffee houses in the U.S. or order directly through
us. Only a select few specialty stores carry our product. We want our coffee to be a delicacy.
II.) Marketing Objectives: Where do we want to go?
To increase our sales volume in the next year we plan on increasing sales at the Bad Ass Coffee
Company by an increase of advertising exposure , awareness of our products to the public, educational
seminars such as the one held at The Specialty Coffee Association of America trade show in New Orleans,
new target market of the young coffee drinker, and entering the global market.
By using trend analysis which involves forecasting future sales by analyzing the historical
relationships between sales and time, the following would be a conservative estimate.
Chart on last page!
B. Profits Objectives
Based on the Bad Ass Coffee Company’s current distribution methods, our price range, profit margin,
promotions (open house, trade show, and seminars) and high quality of our products, our current level of
sales are anticipated to increase in the future.
The total revenue of Bad Ass Coffee Company can be figured by taking the price of the product and
multiplying the quantity sold.
Total Revenue = Price X Quantity
Currently Bad Ass Coffee Company sells to distributors at $75.00 a case of 6 bags of Bad Ass Coffee. Last
year Bad Ass Coffee sold very close to 25,000 cases, the total revenue for this would be
$75.00 X 25,000 = $1,875,000
Once that total revenue is computed, expenses must be subtracted to see the actual profit accumulated.
Profit = Revenue - Expenses
With product history and using the above computations, a profit projection could be calculated.
C. Consumer Objectives
The Bad Ass Coffee Company Mission Statement is as follows:
"The mission of the Ba
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