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10 STEP
Marketing Plan for
Gourmet’s Coffee


   Cathleen Jem Caraig
       March 2012



      http://jemcaraig.blogspot.com   1
Disclaimer
This 10 Step Marketing Plan is part of the mandatory
  requirements of Prof. Remigio Joseph De Ungria‟s
  AGSB marketing management class.
The data included in this report are based on publicly
  available data such as those on internet websites,
  news, package declarations, public reports.
When appropriate, data are “masked” so as not to
  create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
  and facebook so that there is easier sharing among
  students from different marketing classes.
        http://jemcaraig.blogspot.com
Steps 1 to 5
Summary headline of
Gourmet PTM and market
    1.   Businessmen, employees and young professional
         who needs to boost their energy within work hours
    2.   Professionals who needs recognition and a sense of
         belongingness in the workplace and other places.
         Wants fresh, best quality and the finest service.
    3.   Gourmet promotes healthy lifestyle for coffee
         drinkers. Other brands does not have this.
    4.   Estimated market size is 65 million coffee
         consumers in the country. 19 million is Gourmet‟s
         market share

               http://jemcaraig.blogspot.com
Steps 6 to 10
Summary headline of the
marketing mix & strategy
       6.    Gourmet Drip and Grind Coffee that is affordable,
             boosts energy and fresh and the pioneer of healthy
             living
       7.    Gourmet coffee is 55.21% higher than Siete
             Baracos and 17.72% than BC Coffee
       8.    Gourmet‟s participates in Food Expo events in the
             World Trade Center & leading supermarkets
             promotions
       9.    Gourmet coffee is distributed in the greater Manila
             area
       10.   Using niche as an approach to succeed
                 http://jemcaraig.blogspot.com
1. Describe the primary target
market (PTM)*
   Demographics
        21-65 years old, social class A,B and
         C, single and married
   Lifestyle
        Working, usually corporate
         employees, executives, young
         professionals
   Behavior

        Before going to work, during coffee
         breaks, during meetings – drink coffee to
            http://jemcaraig.blogspot.com
         boost energy
2. Gourmet’s PTM’s NWD

Needs from Maslow‟s hierarchy
Wants determine choice
Demands for them to buy the product




      http://jemcaraig.blogspot.com
Describe your PTM needs
                              Self-Actualization
                                    Needs
                             (Self-Development
                               & Realization)


                            Esteem Needs
 I am the boss.           (Recognition, Statu
                                  s)


                        Social Needs (sense of               I want to look professional.
                           belonging, love)



                  Safety Needs (security, protection)




              Physiological needs (food, water, shelter)


                   Reference: Maslow‟s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

                                                                                                  7
         http://jemcaraig.blogspot.com
2. PTM’s needs, wants &
demands
Businessmen/employees need to be recognized and
  to belong in a corporate setting, or friends and
  acquaintances

Businessmen/employees choose Gourmet coffee over
  other brands because of taste, quality, freshly
  roasted coffee beans, promotes a healthy
  lifestyle

Businessmen/employees demand affordable, healthy
  and the quality and taste of coffee


        http://jemcaraig.blogspot.com
3a. Gourmet’s competitors
   Direct: Siete Baracos, BC Coffee, Rocky
    Mountain, Culinary Exchange, Artisan Conlins,
    Bon Vivant

   Indirect: instant coffees, 3 in 1 coffees,
    coffee shops

   Variables: promotions, packaging,
    accessibility/availability, price, lifestyle
          http://jemcaraig.blogspot.com
3b. Create 2 Positioning Maps

1st Map: 2 x 2 Matrix showing the 2 Most Critical
     Variables for Consumer choice
  This 1st Map should allow differentiation/ non-
     clustering of the direct competitors
   Example: Price vs. Age
       Size of bubbles= represent relative market shares
            of the brands
2nd Map: Functional Benefit vs. Brands/ Variants



        http://jemcaraig.blogspot.com
Competitive Position Map of
Gourmet coffee          as of 2011
                        Price vs. Age Matrix

Price/      0-13 yrs   14-24 yrs    25-49 yrs   50yrs up

 Age
Matrix
 High
                         Gourmet     Gourmet    Gourmet
price
                             BC        BC          BC
 Low
 Price                     Siete      Siete      Siete
                          Baracos    Baracos    Baracos

         http://jemcaraig.blogspot.com
as of 2011
      Gourmet benefit position vs brand
      matrix
                              Benefit Positioning vs. Brand Matrix
     Functional Benefit      Gourmet    Siete Baracos   BC Coffee
Affordable
Availability
Mental Alertness
Stimulates Metabolism
Freshness
Organically grown products
Packaging, one-way valve




                   http://jemcaraig.blogspot.com
4. Gourmet has a strong potential
in the market opportunities

Gourmet Coffee
- is the pioneer of coffee trading in the Philippines
- promoting “health” and “wellness” for the consumers
- “fresh” and “organically grown” have been the
  driving forces behind Gourmet‟s success
- All roasted coffee beans are packed and sealed into
  foil bags with a one-way valve to maintain its
  optimum amount of freshness.
- Gourmet has a strong belief of the word-of-mouth
  marketing strategy

        http://jemcaraig.blogspot.com
5. Gourmet’s Claimed Market
Share

                        Gourmet Farms Inc.

 Number of
Competitors
  2011 = 38                              Gourmet's
                   25.00%      29.76%
  2012 = 59
                                         Competitors

   35.59%                                New
   increase           45.24%             Competitors




         http://jemcaraig.blogspot.com
5a. 2007 Gourmet Sales was P45
Million for coffee and teas




                                     Source:
                                     http://stella-
                                     arnaldo.blogspot.
                                     com/2008/05/go
                                     urmet-farms-
                                     expands-to-
                                     cebu.html

     http://jemcaraig.blogspot.com
5a. 2007 Gourmet Sales was P45
Million for coffee and teas




                                     Source:
                                     http://stella-
                                     arnaldo.blogspot.co
                                     m/2008/05/gourme
                                     t-farms-expands-to-
                                     cebu.html

     http://jemcaraig.blogspot.com
5b. Estimated Coffee Market Size
is 70 Million coffee drinkers
1.   Competitor data = 70.24% competitor
     market share based on previous company
     data
2.   Company data = Average sales: 9-10
     million/monthly based on past company
     sales (29.76% share) = 19 Million
3.   Customer Usage data = Estimated 65
     million coffee drinkers in the country

        http://jemcaraig.blogspot.com
6a. Gourmet Products




•   Barako Blend
•   Decafeinated
•   Hazelnut
•   Espresso
•   Premium Blend
•   Coffee Mountain Arabica

            http://jemcaraig.blogspot.com
6a. Gourmet Products
   Supermarkets




        http://jemcaraig.blogspot.com
6a. Show how product looks
vs. competition
Direct competitor
                               Indirect competitor




Gourmet Coffee in the Supermarket



         http://jemcaraig.blogspot.com
6b. Gourmet Coffee description

 Arabica, Robusta, Liberica, and Excelsa -
 Gourmet„s uses only the finest coffee beans to create
 their popular blends. All are freshly ground to ensure
 nothing but the finest, purest flavors. Enjoy a cup of
 brewed joy. The finest grade of coffee beans roasted
 and blended to create that perfect coffee experience.
 Take pleasure in Gourmet's different blends of freshly
 roasted whole beans or ground coffee. All roasted
 coffee beans are packed and sealed into foil bags with
 a one-way valve to maintain its optimum amount of
 freshness. Source: http://gourmet.com.ph/
        http://jemcaraig.blogspot.com
7. Gourmet Prices

BRANDS          Unit Price      Price Per Kilo   % Difference

Gourmet‟s            162             648
(250g)

Siete Baracos         84             418           55.21%
(200g)

BC Coffee            165             550           17.72%
(300g)


                           *based on past company data of 2011


            http://jemcaraig.blogspot.com
8a. Which of these modes
does your product use?

4




                                    1

                                    3
2



    http://jemcaraig.blogspot.com
8a. Gourmet Promotions

   Major sponsor of the
    11th Philippine Food
    Expo 2012
   Part of Shopwise
    Supermarket and
    Rustan‟s Supermarket
    promos
   Continue participating
    in events and
    promotions
         http://jemcaraig.blogspot.com
8a. Gourmet Promotions

   Flyers




        http://jemcaraig.blogspot.com
8b. Competitor promo

Siete Baracos communicate:
 Through websites like http://loqal.ph and

http://shop.philippinecoffeecompany.com


Gourmet Farms Inc. stands out because it
 has its own website
  http://www.gourmet.com.ph

       http://jemcaraig.blogspot.com
9. Place

   Where is your product available?
       Gourmet coffees and other Gourmet products are
        available in their own store in Silang, Cavite:
        Refreshers
       Rustan‟s, Robinson‟s and Shopwise Supermarkets
       Serving Greater Manila Area and soon to serve
        Cebu and Mindanao
       Method of delivery: 2 days lead time



           http://jemcaraig.blogspot.com
10. Gourmet’s Strategy

   Gourmet‟s strategy is to be the leading coffee
  supplier in the country that promotes “health” and
              “wellness” to the consumers

      By producing “fresh” and “organically grown”
      products, it has been the driving forces behind
              Gourmet‟s continuous success



        http://jemcaraig.blogspot.com
SUMMARY




http://jemcaraig.blogspot.com   29
Steps 1 to 5
Summary headline of
Gourmet PTM and market
1.   Businessmen, employees and young professional
     who needs to boost their energy within work hours
2.   Professionals who needs recognition and a sense of
     belongingness in the workplace and other places.
     Wants fresh, best quality and the finest service.
3.   Gourmet promotes healthy lifestyle for coffee
     drinkers. Other brands does not have this.
4.   Estimated market size is 65 Million. Gourmet‟s
     Market share is 19 Million



         http://jemcaraig.blogspot.com
Steps 6 to 10
Summary headline of the
marketing mix & strategy
       6.    Gourmet Drip and Grind Coffee that is affordable,
             boosts energy and fresh and the pioneer of healthy
             living
       7.    Gourmet coffee is 55.21% higher than Siete
             Baracos and 17.72% than BC Coffee
       8.    Gourmet‟s participates in Food Expo events in the
             World Trade Center & leading supermarkets
             promotions
       9.    Gourmet coffee is distributed in the greater Manila
             area
       10.   Using niche as an approach to succeed
                 http://jemcaraig.blogspot.com
10 STEP
Marketing Plan for
Gourmet’s Coffee


   Cathleen Jem Caraig
       March 2012



      http://jemcaraig.blogspot.com   32

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10 step marketing plan

  • 1. 10 STEP Marketing Plan for Gourmet’s Coffee Cathleen Jem Caraig March 2012 http://jemcaraig.blogspot.com 1
  • 2. Disclaimer This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria‟s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes. http://jemcaraig.blogspot.com
  • 3. Steps 1 to 5 Summary headline of Gourmet PTM and market 1. Businessmen, employees and young professional who needs to boost their energy within work hours 2. Professionals who needs recognition and a sense of belongingness in the workplace and other places. Wants fresh, best quality and the finest service. 3. Gourmet promotes healthy lifestyle for coffee drinkers. Other brands does not have this. 4. Estimated market size is 65 million coffee consumers in the country. 19 million is Gourmet‟s market share http://jemcaraig.blogspot.com
  • 4. Steps 6 to 10 Summary headline of the marketing mix & strategy 6. Gourmet Drip and Grind Coffee that is affordable, boosts energy and fresh and the pioneer of healthy living 7. Gourmet coffee is 55.21% higher than Siete Baracos and 17.72% than BC Coffee 8. Gourmet‟s participates in Food Expo events in the World Trade Center & leading supermarkets promotions 9. Gourmet coffee is distributed in the greater Manila area 10. Using niche as an approach to succeed http://jemcaraig.blogspot.com
  • 5. 1. Describe the primary target market (PTM)*  Demographics  21-65 years old, social class A,B and C, single and married  Lifestyle  Working, usually corporate employees, executives, young professionals  Behavior  Before going to work, during coffee breaks, during meetings – drink coffee to http://jemcaraig.blogspot.com boost energy
  • 6. 2. Gourmet’s PTM’s NWD Needs from Maslow‟s hierarchy Wants determine choice Demands for them to buy the product http://jemcaraig.blogspot.com
  • 7. Describe your PTM needs Self-Actualization Needs (Self-Development & Realization) Esteem Needs I am the boss. (Recognition, Statu s) Social Needs (sense of I want to look professional. belonging, love) Safety Needs (security, protection) Physiological needs (food, water, shelter) Reference: Maslow‟s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 7 http://jemcaraig.blogspot.com
  • 8. 2. PTM’s needs, wants & demands Businessmen/employees need to be recognized and to belong in a corporate setting, or friends and acquaintances Businessmen/employees choose Gourmet coffee over other brands because of taste, quality, freshly roasted coffee beans, promotes a healthy lifestyle Businessmen/employees demand affordable, healthy and the quality and taste of coffee http://jemcaraig.blogspot.com
  • 9. 3a. Gourmet’s competitors  Direct: Siete Baracos, BC Coffee, Rocky Mountain, Culinary Exchange, Artisan Conlins, Bon Vivant  Indirect: instant coffees, 3 in 1 coffees, coffee shops  Variables: promotions, packaging, accessibility/availability, price, lifestyle http://jemcaraig.blogspot.com
  • 10. 3b. Create 2 Positioning Maps 1st Map: 2 x 2 Matrix showing the 2 Most Critical Variables for Consumer choice This 1st Map should allow differentiation/ non- clustering of the direct competitors Example: Price vs. Age Size of bubbles= represent relative market shares of the brands 2nd Map: Functional Benefit vs. Brands/ Variants http://jemcaraig.blogspot.com
  • 11. Competitive Position Map of Gourmet coffee as of 2011 Price vs. Age Matrix Price/ 0-13 yrs 14-24 yrs 25-49 yrs 50yrs up Age Matrix High Gourmet Gourmet Gourmet price BC BC BC Low Price Siete Siete Siete Baracos Baracos Baracos http://jemcaraig.blogspot.com
  • 12. as of 2011 Gourmet benefit position vs brand matrix Benefit Positioning vs. Brand Matrix Functional Benefit Gourmet Siete Baracos BC Coffee Affordable Availability Mental Alertness Stimulates Metabolism Freshness Organically grown products Packaging, one-way valve http://jemcaraig.blogspot.com
  • 13. 4. Gourmet has a strong potential in the market opportunities Gourmet Coffee - is the pioneer of coffee trading in the Philippines - promoting “health” and “wellness” for the consumers - “fresh” and “organically grown” have been the driving forces behind Gourmet‟s success - All roasted coffee beans are packed and sealed into foil bags with a one-way valve to maintain its optimum amount of freshness. - Gourmet has a strong belief of the word-of-mouth marketing strategy http://jemcaraig.blogspot.com
  • 14. 5. Gourmet’s Claimed Market Share Gourmet Farms Inc. Number of Competitors 2011 = 38 Gourmet's 25.00% 29.76% 2012 = 59 Competitors 35.59% New increase 45.24% Competitors http://jemcaraig.blogspot.com
  • 15. 5a. 2007 Gourmet Sales was P45 Million for coffee and teas Source: http://stella- arnaldo.blogspot. com/2008/05/go urmet-farms- expands-to- cebu.html http://jemcaraig.blogspot.com
  • 16. 5a. 2007 Gourmet Sales was P45 Million for coffee and teas Source: http://stella- arnaldo.blogspot.co m/2008/05/gourme t-farms-expands-to- cebu.html http://jemcaraig.blogspot.com
  • 17. 5b. Estimated Coffee Market Size is 70 Million coffee drinkers 1. Competitor data = 70.24% competitor market share based on previous company data 2. Company data = Average sales: 9-10 million/monthly based on past company sales (29.76% share) = 19 Million 3. Customer Usage data = Estimated 65 million coffee drinkers in the country http://jemcaraig.blogspot.com
  • 18. 6a. Gourmet Products • Barako Blend • Decafeinated • Hazelnut • Espresso • Premium Blend • Coffee Mountain Arabica http://jemcaraig.blogspot.com
  • 19. 6a. Gourmet Products  Supermarkets http://jemcaraig.blogspot.com
  • 20. 6a. Show how product looks vs. competition Direct competitor Indirect competitor Gourmet Coffee in the Supermarket http://jemcaraig.blogspot.com
  • 21. 6b. Gourmet Coffee description Arabica, Robusta, Liberica, and Excelsa - Gourmet„s uses only the finest coffee beans to create their popular blends. All are freshly ground to ensure nothing but the finest, purest flavors. Enjoy a cup of brewed joy. The finest grade of coffee beans roasted and blended to create that perfect coffee experience. Take pleasure in Gourmet's different blends of freshly roasted whole beans or ground coffee. All roasted coffee beans are packed and sealed into foil bags with a one-way valve to maintain its optimum amount of freshness. Source: http://gourmet.com.ph/ http://jemcaraig.blogspot.com
  • 22. 7. Gourmet Prices BRANDS Unit Price Price Per Kilo % Difference Gourmet‟s 162 648 (250g) Siete Baracos 84 418 55.21% (200g) BC Coffee 165 550 17.72% (300g) *based on past company data of 2011 http://jemcaraig.blogspot.com
  • 23. 8a. Which of these modes does your product use? 4 1 3 2 http://jemcaraig.blogspot.com
  • 24. 8a. Gourmet Promotions  Major sponsor of the 11th Philippine Food Expo 2012  Part of Shopwise Supermarket and Rustan‟s Supermarket promos  Continue participating in events and promotions http://jemcaraig.blogspot.com
  • 25. 8a. Gourmet Promotions  Flyers http://jemcaraig.blogspot.com
  • 26. 8b. Competitor promo Siete Baracos communicate:  Through websites like http://loqal.ph and http://shop.philippinecoffeecompany.com Gourmet Farms Inc. stands out because it has its own website http://www.gourmet.com.ph http://jemcaraig.blogspot.com
  • 27. 9. Place  Where is your product available?  Gourmet coffees and other Gourmet products are available in their own store in Silang, Cavite: Refreshers  Rustan‟s, Robinson‟s and Shopwise Supermarkets  Serving Greater Manila Area and soon to serve Cebu and Mindanao  Method of delivery: 2 days lead time http://jemcaraig.blogspot.com
  • 28. 10. Gourmet’s Strategy  Gourmet‟s strategy is to be the leading coffee supplier in the country that promotes “health” and “wellness” to the consumers  By producing “fresh” and “organically grown” products, it has been the driving forces behind Gourmet‟s continuous success http://jemcaraig.blogspot.com
  • 30. Steps 1 to 5 Summary headline of Gourmet PTM and market 1. Businessmen, employees and young professional who needs to boost their energy within work hours 2. Professionals who needs recognition and a sense of belongingness in the workplace and other places. Wants fresh, best quality and the finest service. 3. Gourmet promotes healthy lifestyle for coffee drinkers. Other brands does not have this. 4. Estimated market size is 65 Million. Gourmet‟s Market share is 19 Million http://jemcaraig.blogspot.com
  • 31. Steps 6 to 10 Summary headline of the marketing mix & strategy 6. Gourmet Drip and Grind Coffee that is affordable, boosts energy and fresh and the pioneer of healthy living 7. Gourmet coffee is 55.21% higher than Siete Baracos and 17.72% than BC Coffee 8. Gourmet‟s participates in Food Expo events in the World Trade Center & leading supermarkets promotions 9. Gourmet coffee is distributed in the greater Manila area 10. Using niche as an approach to succeed http://jemcaraig.blogspot.com
  • 32. 10 STEP Marketing Plan for Gourmet’s Coffee Cathleen Jem Caraig March 2012 http://jemcaraig.blogspot.com 32