E-commerce Marketing Plan

I. EXECUTIVE SUMMARY

Drinking coffee has been a primary part of our system and it has also been a part of

our history. It is served a relieving beverage and is used by everyone. Coffee is

served in different types of preparation from hot coffee to cold coffee. It has become

one of the most common part of our everyday lifestyle. It acts as a social lubricant,

as some studies suggest that coffee can really make drinkers more talkative and

social1, We had become engaged in drinking coffee and because of that we have a

lot of cafés franchise stabilizing around our country.

In places with warmer climates, like the Philippines and most countries in Asia, cold

coffee is turning out to be more popular than the traditional hot coffee. Different iced

and ice-blended versions of hot coffee are regularly available. In fact, many cold

drinks are not available warm, examples are different flavors of Frappuccino blends

such as Coffee Jelly, Choco Java etc.

Farroncino is a company that specializes on making Frappucino drinks. These are

blended coffee beverages with ice and other various ingredients usually topped with

whipped cream. Farroncino engaged themselves to limited promotional activities

only such as offering sponsorships and online Advertising. The Paper seeks to

provide an effective and efficient Internet Marketing Plan to help the company utilize

1 Unknown Author, Manila Standard Today, Life & Entertainment, Coffee Culture issued last July 15, 2009 http://edbiado.blogspot.com/2009/07/coffee-culture.html

http://en.wikipedia.org/wiki/Beverage

http://en.wikipedia.org/wiki/Coffee

its growth potential as nicher by engaging to innovation and by taking advantage of

the use of technology through programs that answer customer need and build

customer empowerment.

II. SCOPE AND LIMITATIONS

The Paper that follows shall be governed by the following academic parameters:

1. The Paper shall present a proposed Internet Marketing Plan for Figaro Coffee

Company for the year 2012.

2. All industry and company information of Figaro Coffee Company and its

competitors were acquired from the data available online which are gathered and

analyzed by the proponents.

3. When two or more information acquired by the researchers from secondary

sources are seemingly contradictory, the writers undertook efforts within their

capability to determine which of the information acquired is accurate and/or is

consistent with the logical course of events.

III. STUDY BACKGROUND

IV. Figaro Coffee Company

3.1 Company’s History

In 1993, a group of coffee lovers and enthusiasts got together and dreamt of a cafe

where they could lounge and entertain friends and business associates - an Outlet

that can fulfill their demanding taste for great coffee, delicious pastries and excellent

service. This dream developed into a concept and soon the concept became a

reality.

The concept grew into a complete coffee Outlet where Filipinos could get whatever

they needed for coffee making; from the bean, to the equipment and paraphernalia,

to the drinks --- THE PERFECT COFFEE.

Thus, the concept was born. The foundation and principles were set (Vision and

Mission), and the support systems were established. Research and Development,

taste tests and sourcing began. With the machinery in place, the concept was

launched.

On its debut in November 1993, with a managing partner and two (2) employees, the

first Outlet (rather, "kiosk") was born in the Makati Mall of the Ayala Center. This

kiosk was mysteriously called the "F" store. It was the first of its kind. The Outlet had

all the coffee and tea paraphernalia, it retailed coffees, freshly ground coffee beans

and the first to introduce flavored coffee beans in the Philippines.

It was a very brave concept to introduce to Manila and the first few months were

"testing" times for the concept. Filipinos were skeptical and suspicious about the

product. But with determination, patience and perseverance, the company moved

forward to its new location.

The Coffee Company's name was not used until April of 1994, when the Company

was finally awarded its first mall space in Manila. Then FIGARO COFFEE

COMPANY was born.

The name FIGARO was thought of by the directors as an idea to complete the

Italian/European concept. They wanted to come up with a name that is widely

recognized but not commercially and commonly used. The "Opera: Barber of

Seville" has the song "Figaro" which popularized the name, thus Figaro was born.

Figaro is different from other cafes since it is not just a coffee Outlet but a coffee

Company. This means that each Outlet serves a world of excellently brewed

specialty coffee and everything that goes perfectly well with it.

The design of the Outlet, the craftsmanship, and the product line both for retail and

service were the talk of the town. It was a concept almost everybody thought and to

this day still thinks as foreign. The charm of the Outlet was that one could always

talk to an owner or to somebody knowledgeable about coffee. People call it the

"Personal Touch." And so, it became a decree that all Outlet crew must undergo an

intensive two-week training period on product knowledge and the art of coffee-

making, service and selling.

It took the Company two years to establish its credibility and to re-educate the taste

buds of the Filipinos to specialty coffee and from there the journey to expansion

began. And as they say, the rest is history. Figaro now has over 55 outlets in the

Philippines. Several more outlets are in the works to date.

The success of a dream was not overnight. It took a lot of courage and

determination to move forward during the growing years. But the asset of the

Company is the partnership-the individual strengths of each partner. Each partner

being successful entrepreneurs in their own fields-retail, import, export,

manufacturing, design and management-thus making the company dynamic,

exciting, solid and truly dedicated to excellence and satisfaction. It is this kind of

partnership with individuals that Figaro is looking for in Business Partners.

IV. MARKET SITUATION ANALYSIS

IV.1 Macro-environment

A. Economics

Annual inflation rate from 3.6 percent this year is expected to go down to three

percent in 2012.

Growth of tourism and the continuous development of leisure establishments2

B. Political-legal

Implementation of E-VAT3

Republic Act No. 8976 - The Philippine Food Fortification Act of 20114

Republic Act No. 7394 The Consumer Act Of The Philippines

C. Socio-Cultural

Practicality and convenience attracts consumers with busy lifestyles5

Collectivist Filipino Consumers.

Shifting consumption of fruit/ vegetable juice products and bottled water6

Benefits of higher product variety7.

2 Consumer Foodservice in the Philippines, Euromonitor3 Consumer Foodservice in the Philippines, Euromonitor 4 www.makati.gov.ph5 John K. Sanfacon, CSnews Food Service Retailing, Meeting Customer Needs Through Foodservice Packaging, http://www.foodservice.csnews.com/print-topstory-meeting_customer_needs_through_foodservice_packaging-923.html, July 19, 20116 Consumer Foodservice in the Philippines, Euromonitor7 Praneet Singh, Harry Groenevelt, Nils Rudi, Product Variety and Supply Chain Structures, http://www.insead.edu/facultyresearch/faculty/personal/nrudi/documents/ProductVarietyandSupplyChainStructures.pdf

http://www.insead.edu/facultyresearch/faculty/personal/nrudi/documents/ProductVarietyandSupplyChainStructures.pdf


http://www.foodservice.csnews.com/print-topstory-meeting_customer_needs_through_foodservice_packaging-923.html


D. Technological

The emergence of new suppliers for machinery and other foodservice hardware1

Faster, more efficient coffee machinery is being developed at unprecedented

Online advertisement earns highest percentage of customer’s trust when it

comes to product information8

Social Networking sites where online users are trafficked can be used to

advertise site and products/brand

Online promotional advertising are cheaper and have a wider coverage of viewers

8 Global Advertising: Consumers Trust Real Friends and Virtual Strangers the Most, Nielsen Global Online Consumer Survey, http://blog.nielsen.com/nielsenwire/consumer/global-advertising-consumers-trust-real-friends-and-virtual-strangers-the-most/, August 8, 2011

V. MACRO-ENVIRONMENT MATRIX

A. Economics

Table 4.1

Economic Macro-Environment

Potential Change Implication Effect on Company

Annual inflation rate from

3.6 percent this year is

expected to go down to

three percent in 2012.

A possible decrease in food

and beverage costs and a

possible increase in

consumer’s demand

Reduced cost of sales and

increase in sales revenues

Growth of tourism and the

continuous development of

leisure establishments9

Customers from here and

visitors of the country will

frequent food

Potential increase in sales

9 Consumer Foodservice in the Philippines, Euromonitor

establishments both old

and new

B. Political-legal

Table 4.2

Political-Legal Macro-Environment


Implementation of

E-VAT10

Prices to increase by 2% Increase of food costs

Republic Act No. 8976 -

The Philippine Food

Fortification Act of 201111

Food establishments

including nutritional

information about their

food on their menu or

will cite it through their

advertising tools

Possible increase in

sales once customers

are made aware of the

nutritional facts of the

food they order

10 Consumer Foodservice in the Philippines, Euromonitor 11 www.makati.gov.ph

Republic Act No. 7394

The Consumer Act Of The

Philippines

Policy of the State to

protect the interests of

the consumer, promote

his general welfare and

to establish standards of

conduct for business and

industry.

Possible increase in the

length of the

relationship that the

seller has with the

consumer.

C. Socio-Cultural

Table 4.3

Socio-Cultural Macro-Environment


Practicality and

convenience attracts

consumers with busy

lifestyles12

Consumers will prefer

food that is ready-to-go

Expect an increase in

sales for food and drink

establishments offering

deliveries and take-out

12 John K. Sanfacon, CSnews Food Service Retailing, Meeting Customer Needs Through Foodservice Packaging, http://www.foodservice.csnews.com/print-topstory-meeting_customer_needs_through_foodservice_packaging-923.html, July 19, 2011



services

Collectivist Filipino

Consumers

Interpersonal relationship

affects buying behavior of

an individual

Positive “word of mouth”

can rapidly increase

awareness of the

product.

Shifting consumption of

fruit/ vegetable juice

products and bottled

water13

A demand for more

varieties of healthy

beverages in food

establishments

May incur new product

development and

advertising expense

Benefits of higher

product variety14

A larger assortment

increases the probability

that a store will be able to

deliver exactly the

product a customer

desires

Increase sales which

may lead to greater profit

D. Technological

Table 4.413 Consumer Foodservice in the Philippines, Euromonitor14 Praneet Singh, Harry Groenevelt, Nils Rudi, Product Variety and Supply Chain Structures, http://www.insead.edu/facultyresearch/faculty/personal/nrudi/documents/ProductVarietyandSupplyChainStructures.pdf



Technological Macro-Environment


The emergence of new

suppliers for machinery and

other foodservice

hardware1

The market for espresso

extraction machines is

becoming very

competitive, driving

prices of hardware

down

Lowered cost in acquiring

new machineries for

expansion

Possible increase and

improvement in the

production will lead to higher

profits

Websites for advertising

purposes.

Designed website that is

intended to increase

awareness of your

target market. Also, a

website that will cater all

of the suggestions of

your customers to be

used for future plans.

Websites will increase the

knowledge of your

consumers regarding your

product that could entice

them to buy your product and

be your loyal customers that

will probably generate

company’s sales.

VI. COMPETITIVE ANALYSIS

ONLINE COMPANY COMPETITORS

INFORMATION Figaro CoffeeStarbucks Coffee Bean Seattle’s Best

Company

History

Company

Product Offers

Online menu

Contact

persons for

customer

service/relation

Process for

franchising

Online orders

(primary

products)

Online Product

Recipes

Online

shopping for

secondary

product

offerings(e.g

tumblers,

mugs, tea and

coffee blends)

Online giftcards

and

membership

Link to social

networking

sites

Online Store

locator

Multi-Language

Availability for

International

Engagements

(language

availability)

Nutritional

content of

products

Different sites

for different

countries

VII. SWOT ANALYSIS

FIGARO COFFEE COMPANY

Strengths Weaknesses Opportunities Threats

1. Figaro Coffee’s

Online site

provides easy

access to

information about

the product and

other additional

services

2. The site also

advertises our

native Kapeng

Barako, which

boost patriotism

to the site visitors

3. It is has been

advertised in

Wheninmanila.co

m where site

visitor are

encouraged to

visit places that

shows the culture

and lifestyle of the

Filipinos

1. Lack of product

information to

add product

value(e.g.

nutritional

content)

1. Online

advertiseme

nt earns

highest

percentage

of

customer’s

trust when it

comes to

product

information15

2. Social

Networking

sites where

online users

are

trafficked

can be used

to advertise

site and

products/br

and

3. Online promotional advertising are cheaper and have a

1. Competitor

s can

easily

make their

own

webpage.

2. Online

information

can be

used by

competitor

s to easily

know the

latest

status and

products of

the

company.

15 Global Advertising: Consumers Trust Real Friends and Virtual Strangers the Most, Nielsen Global Online Consumer Survey, http://blog.nielsen.com/nielsenwire/consumer/global-advertising-consumers-trust-real-friends-and-virtual-strangers-the-most/, August 8, 2011

4. Since it is now

venturing on the

international

market, the site

provides 2

languages

program: English

and Chinese

which makes it

more user friendly

to their customers

5. It is linked to

social networking

sites like

facebook.com

and tweeter.com

wider coverage of viewers

.

TARGET CUSTOMER SEGMENTS

Psychographics

Figaro Coffee Company targets consumers who look for a Filipino way of enjoying

coffee experience. These people values socialization such as enjoying time with friends

and meeting with business associates. Age ranges are not limited yet the proponent

based its primary target market definition on the company’s primary competitors. They

are characterized as young, affluent, and tech-savvy customers. They are also people

combining work and a coffee break (Hoovers).

KEY SUCCESS FACTORS

Figaro Coffee Company belongs to Specialty coffee beverage industry under the sub

category of Frappuccino. These products have low differentiation. The different Key

success factors within the industry that make up its parts and have to achieve by the

industry players before being considered successful. The scope is only based on the

online Information necessary in creating a site and in engaging to e-commerce.

Convenience

Convenience in the context of accessibility. Through the use of internet, accessibility of

product information is now available online. Whenever consumers feel the need to know

certain information regarding a product, he/she can just browse the net, go to the

company’s website and search for the information needed.

Choice

Choices depend on the product assortment or the depth of the product offering. Larger

assortment increases the likelihood that a store will be able to deliver exactly the

product a customer desires.16 Even if a customer’s tastes are diverse, his/her perception

of variety in a store’s assortment may drive their purchasing decisions. A deeper

assortment of products is more likely to foster a positive brand image among new

customers, lead to customer “stickiness” to the retailer’s product and increase the

probability of referrals.

16 Praneet Singh, Harry Groenevelt,Nils Rudi, Product Variety and Supply Chain Structures, Sept. 6, 2011‡

Service

Services online is determined based by how fast the customer’s feedbacks and

suggestions are responded/entertained by the company. Services also include online

payments in terms of product ordering and shipping.

Value for Money

Value for money is shown as the value of the product does not depend on its price.

Products can be a real worthy if its price meets or exceeds the expectation of its

customers, whether it is high or low. Farronccino is working under this concept by

offering products in fair prices but meets the quality raised by the customers.

MISSION

Our company’s mission is to provide products that customers will savor and enjoy for

just fair prices, as well as to provide services that give them convenience in terms of

waiting time and accessibility.

VISION

Our company's purpose is to produce and introduce a different line of Frappuccino

drinks with a value exceeding its price to cater customers’ satisfaction and enhance

customer loyalty.

OBJECTIVES

Through the Proposed Internet Marketing Plan, Figaro Coffee Company aspires to achieve the Following objectives:

1. Improve the site’s layout by providing more informative and easy access

tools/software.

2. Increase brand awareness by making the brand more visible to the public.

V. SWOT STRATEGIC ANALYSIS MATRIX

Internal

External(Technology)

Strength1. provides easy access to

information

2. advertises our native Kapeng Barako, which boost patriotism to the site visitors

3. has been advertised in Wheninmanila.com

4. It provides 2 languages program: English and Chinese

5. It is linked to social networking sites

Weaknesses1. Lack of product

information to add product value.

Opportunities

1. Online advertisement earns highest percentage of customer’s trust

MAXIMAX STRATEGY Take advantage of the

social networking sites by bombarding them with advertisements and links to the company webpage

MINIMAX STRATEGY Provide additional

information to increase the product value proposition to

2. Social Networking sites can be used to advertise site and products/brand.

3. Online promotional advertising are cheaper and have a wide coverage of viewers

to promote the products/brand(S3,S5,O1,03)

Build relationship with other sites that are related to the product to free advertisements and exposure like online magazines about the Philippines, food etc. (S3,O3)

develop trust from the consumer(W1,O1)

Threats1. Competitors can easily

make their own webpage.

2. Online information can be used by competitors to easily know the latest status and products of the company.

MAXIMIN STRATEGY Use patriotism and

advocacies to gain a differential advantage from the competitor(S2, T1)

Create a more user-friendly website where consumers easily browse the information they need (S1, 01)

MINIMIN STRAGEGY1. Benchmark from

your competitors regarding their marketing mix idea from the information available on their database. (W1,T1, T2)

Action Plans

Provide additional information of the Products

Activity Timetable Responsibility Budget

Make a list of information that

you wish to add regarding your

product

4 days Owner --

Submit the list to the

administrator of their Facebook

1 day Owner -

account

Input all additional information

to their Facebook account

7 days Designer/ administrator -

Publish it to the public 1 day Designer/ administrator -

Total 13 days -

Take advantage of the social networking sites


Create an account for each

social networking sites

5 days Designer/ administrator --

Input all the information

needed to each account


Place all advertisements in

each account.


Place a link of their main

webpage to each account that

they made

3days Designer/ administrator -

Total 17days -

Create a more user-friendly website


Conceptualization of ideas that

will be seen in the website

14days Owner & Manager --

Contact their web designer 1days Owner -

Meet their web designer to

discuss the concept of the

website

4 days Owner, Manager,&

designer

-

Make the website and make it

as user- friendly as possible


Have it approved by the owner 1 day Owner & designer

Make the necessary

adjustment

4 days Designer/ administrator

Publish the website to the

public

1 day designer

Total 55 days -

Gantt chart

Action PlansAction Plan JAN

1st 2nd 3rd 4th 5th

Make a list of information that you wish to add regarding your productSubmit the list to the administrator of their Facebook accountInput all additional information to their Facebook accountPublish it to the public

Provide additional information of the Products

Take advantage of the social networking sitesAction Plan JAN

1st 2nd 3rd 4th 5th

Create an account for each social networking sitesInput all the information needed to each account

Place all advertisements in each account.Place a link of their main webpage to each account that they made

Create a more user-friendly website

Action Plan FEB MAR

1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th

Conceptualization of ideas that

will be seen in the website

Contact their web designer

Meet their web designer to

discuss the concept of the

website

Make the website and make it as

user- friendly as possible

Have it approved by the owner

Make the necessary adjustment

Publish the website to the public

This final table shows the complete schedule of strategies for the months of January to March, year 2012.

Action Plan - 2012 January February March

Provide additional

information of the

Products

Take Advantage of the

Social Networking

Sites

Create a More-User

Friendly Website.

Documents

E-commerce Marketing Plan