FREE ESSAY ON COFFEPLAN

COFFEPLAN

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
? Supermarkets
? 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?
A.)Sales Objectives
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 Bad Ass Coffee Company is to provide the best tasting organic coffee
in the universe. 
To do this, we will sell and roast exclusively organic coffee. We will support our
customers in an effort to 
spread the word that organic also means satisfying and delicious. And most importantly to
remember why 
we started this company in the first place. To put our coffee knowledge to good use, to
live in harmony 
with the planet, and to have fun doing it.
We want our company to be perceived as an industry leader with innovative, quality coffee
aimed at the 
serious coffee drinker. The Bad Ass Coffee Company was recently honored and recognized at
The 
Specialty Coffee Association of America seminar as 1996's best coffee of the year. An
award which 
confirms our commitment to quality.
III.) Strategy: How can we get there?
A.) Product Strategy
We want our consumers to be happy with every bean they see come out of our Bad Ass Coffee

Bean bags. To meet our consumers needs, we will be trying a few new ideas.
? We will be offering our own line of flavored creamers
? A new and fun bag design is in the process right nowWe will be offering special deals
to preferred 
customers and offering samples of our new line of coffee out this summer.
We will be offering these and many more things in the future to attract all different
types of coffee drinkers 
in the United States. Hopefully our new flavors will attract some new customers and our
old customers will 
spice up their coffee with our new flavored creamers for a kick of something new.
B.) Pricing Strategy
? To help our company grow we plan on putting 50% of our gross profit this year back into
the company. 
We will also spend a little more on advertising this quarter.
? We will cut back on promotional discounts to no greater than 5% for special show
orders, open house 
orders and seminar orders. This will apply to all employees also.
? We also plan to stay competitive within the market category for the coffee industry.
In different situations depending on the customer, the following would be a possible
price concession in the 
market of our product.
? Cash discounts if the product is paid for in specified terms.
? Quantity discounts for truckload orders.
? Promotional allowances
? Salesperson discount
? Credit towards products
? Commission
C.) Distribution Strategy
There are several channels of distribution that can be used. If the buyer meets the Bad
Ass Coffee Company 
standard credits terms , buying minimums, ect. The following flow chart depicts the
possible distribution 
methods available with Bad Ass Coffee Company.
Wholesaling
Intermediaries
Manufacturer- Independent Retail-Owned
Owned Wholesaling Cooperative and 
Facilities Intermediaries Buying Offices
Merchant Agent and 
Wholesalers Brokers
To make distribution possible there are a few things required.
? Warehouses around the country
? Truck Docks
? Appropriate machinery
? Personnel to run the business
These facilities can be located anywhere in the U.S. as long as the right facilities are
present and they meet 
the Bad Ass Coffee standard credit terms and meet the following requirements
? Represent Bad Ass Coffee Company in a professional manner.
? That we have large enough facilities to hold our products.
? Easy access to hold products.
? Easy access for our truck to load and unload.
? That we keep a clean and safe work area.
D.)Promotional Strategy
Personal selling will be very critical. It is important to develop a customer
relationship where a 
win-win situation can occur creating long-term relationships with you customers. Once the
salesperson had 
identified a qualified prospect, he or she collects all available relevant information
and plans an approach- 
the salesperson's initial contact is an invaluable step. A presentation will follow so
the client can be 
familiarized with the product. The actual moment of truth is the selling aspect of our
product which can 
also be called the closing.
The amount to be spent on advertising is at the discretion of the sales people in the
field. 
Cooperative advertising budgets, marketing development funds, ect are all budgeted every
year to the sales 
department, although the ultimate responsibility for advertising decision making often
rests with top 
marketing management, the organization of the advertising function varies among different
products in our 
company.
Bad Ass Coffee Company spends approx. $26,000 a year on advertising alone. We spend our 
money on such things as attending trade shows throughout the U.S. 
Advertising our product is essential in good yearly sales quotas. Some of the money is
spent on 
advertising Bad Ass Coffee company in trade flyers, and by advertising products in trade
publications to 
increase buyer awareness around the country.
Promotional activities will include offering discounts for trade shows, open houses, and

educational seminars across America. Bad Ass Coffee Company also uses independent
advertising agencies 
because they typically are staffed with highly qualified specialists who provide a degree
of creativity and 
objectivity that is different to sustain in corporate advertising departments.
E.) Financial Strategy
10% of Bad Ass Coffee Company's budget is allocated to marketing, of that, 10%-30% is
spent on 
advertising alone. My proposition is that 15% will be spent on current advertising
methods with the 
national trade publications. The remaining 15% will be spent on new advertising for the
targeted young 
customers.
I we do not accomplish this plan, Bad Ass Coffee Sales could begin to level off. It is
necessary to keep the 
wheel turning, finding new buyers to replace the ones that no longer exist in our market.
My goal of 
targeting the younger buyer could continue to increase the sales of the Bad Ass Coffee
Company.
1990 1991 1992 1993 1994 1995 1996 1997
Bad Ass Coffee Company Sales
References
Compton's NewMedia Encyclopidia 1994-1995
www.inc.com/incmagazine/archives/019305.html
www.nerdworld.com/user/dstein/nw204.html
www.angelfire.com/mn/stenmark/coffee.html
www.iluminatus.com/fun/agogo/coffee_a_gogo.html
www.bid.com/bid/cybercafe/occmiss.html
www.cappuccino.com
www.blackhills.com/-hrtearth/jit.html
www.jit.com/coffee.htm