•  

 

•  Beautiful ambience and decor
• Good customer service
• Variety of other product mix

 

 

INTEGRATED MARKETING COMMUNICATION

 

CONTENTS                                                                                                        PAGE NO

PHASE I 3

SITUATION ANALYSIS. 4

MARKET CONDITION.. 4

SEGMENTATION.. 7

DEMOGRAPHIC.. 7

BEHAVIOURAL. 8

PSYCHOGRAPHIC.. 9

TARGETING.. 11

POSITIONING.. 12

PHASE II 14

APPROACHES TO ADVERTISING.. 15

BRAND EQUITY MODEL- DAVID AAKER.. 15

CONSUMER BASED BRAND EQUITY- KEVIN LANE KELLER.. 16

FCB GRID.. 17

ROSITTER-PERCY MODEL. 18

BRAND PERSONALITY STRATEGY.. 18

USER IMAGERY.. 20

CONCEPT. 20

PRINT AD.. 21

BRANDING.. 21

BRAND NAME. 21

TAGLINE. 22

LOGO.. 22

ATTRIBUTES. 22

DÉCOR & ARCHITECTURE. 22

LITERATURE. 23

MERCHANDISING.. 23

CAFÉ FORMATS. 23

MUSIC CAFÉ. 23

BOOK CAFÉ. 23

GARDEN CAFÉ. 23

CREATIVE APPROACH – NEW ADOPTER HIERARCHY.. 24

THROUGH TELEVISION.. 24

CO-BRANDING ACTIVITIES. 24

ASSOCIATION WITH MOVIES. 24

TICKET SALES. 25

PHASE III 26

MEDIA PLANNING INSIGHTS. 27

MARKETING OBJECTIVES. 27

MEDIA OBJECTIVES. 27

REVENUE MODEL. 28

ADVERTISING STRATEGY: 28

BUDGETING FOR MEDIA EXPENSE. 29

AD SPEND.. 29

FINALIZING MEDIA CHANNELS. 30

MEDIA CLASS. 30

TELEVISION/VISUAL MEDIA: 30

PRINT MEDIA.. 31

ELECTRONIC MEDIA.. 31

POINT OF SALES: 32

MEDIA VEHICLE AND MEDIA OPTIONS. 32

TELEVISION.. 32

PRINT MEDIA: 32

ELECTRONIC MEDIA: 32

OTHER VEHICLES OF ADVERTISING: 33

CO-BRANDING.. 33

DETAILED PLAN.. 34

TV PLAN.. 35

PRINT PLAN.. 35

 

 

Phase I

Situation Analysis Segmentation Demographics Behavioral Psychographic Segmentation Geographic Segmentation Positioning Targeting

Situation Analysis

Ever since the origin of tea as a beverage, it has been widely consumed for its aromatic and refreshing taste. The consumption of tea as a beverage is widely prevalent in the Indian subcontinent. It has been an integral part of socializing and small parties at home and workplaces. Other than the taste it has been proven that tea has medicinal effect as well.

The whole concept of Tea Lounges is to provide a wide range of offerings made out of this exotic beverage which a customer can enjoy with friends across the table. The concept is to provide a cafeteria service to the customers who would get a tea beverage of varying taste and content to meet the need of the customer.

Market Condition

• Market expansion of cafes on a faster rate

• Urbanization in India is expanding

• Tea drinking – Integrated part of Indian culture

• Growth in the disposable income of Indian family

The situation analysis would include a 5C analysis, the Cs being;

 

Source: http://www.netmba.com/marketing/situation/

 

Company:

The company is a chain of cafeteria which provides variety of Tea beverages as its service offering. It not only provides tea at its store, it retails out exclusive tea products and selected confectionary as well. All the products prepared by the company would be sold in the cafeteria-cum-retail outlets exclusively.  The whole concept is to provide a nice brew of tea for customers to enjoy with their friends and family in a warm and welcoming environment. The level of technology involved in this business is not very high but an important thing that needs to be kept in mind is the level of standardization that needs to be maintained in every offering that is made to the customer. For that, standard machinery and standardized code of preparing/brewing has to be made ready.

 

Collaborators

The suppliers in this concept would be the tea plantation owners who can provide us with the basic raw material for our business that is tea leaves. A favourable proposition would be to have in-house supply of the tea products by acquiring some of the tea plantations. The other suppliers involved would be machinery suppliers. There needs to be tie-up with suppliers of the dishware (tea cups, mugs, etc) manufacturers. There can be tie-ups/alliances with other food product providers like ice-cream or energy drink manufacturers.

At the starting of the business, the whole operation needs to be handled by the company itself. So the distribution effectively has to be handled by the company for initial few months. After establishing a name, distribution would be done on an exclusive basis. Exclusive franchise rights would be sold out to the most suitable among the prospective applicants.

Customers

The market for tea as a beverage exists mostly in the unorganized segment. The market that this company is trying to tap into is the organized tea shop which has not been penetrated as of now. The target segment here would be the age group of 18 to 50 years. The whole concept would try to woo not only the young crowd but would also position itself as a shop where even the ones young at heart can enjoy. A typical customer for this service would like to have an assorted variety of tea based beverages available at his/her disposal. The place should provide the customer an ambience of warmth and comfort so that he/she can hang out with friends. There are certain implicit expectations associated with the service like the courteous approach of the waiter which needs to be taken care of as well. The customers availing the service are also potential retail customers who can be interested in using the in-house products (like tea products) which are sold at the counter.

 

 

Competitors

Direct competitors in tea based beverages vendor are not widely existent in the organized part of the business. Though there is competition from the unorganized sector of tea based beverage, the category that we are trying to focus on does not get affected by these vendors in unorganized sector. The competition would be in the form of big coffee houses like Cafe Coffee Day and Barista which are popular for their indulging list of coffee based beverages. They are already in the market and are expanding which means that Tea Lounges has a lot of ground to make up. These coffee houses not only provide coffee based beverages but also tea based beverages. There is already some degree of brand loyalty that is associated to these brands. So wooing the customers away from the competitors company would take significant effort here.

*Market Share of Cafes in                       India

FCB MODEL

 

 

Climate

Political and regulatory environment- The climate presently of India is liberal and hence very less amount of regulation is mandated which makes it easier for a company to start operations.

Economic Environment: the Indian economy was very resilient during the downturn. After going through the bad phase, the economy is back on track which augers well for the business oftea based beverage.

Social trend: today’s youth likes to have a place to hang out with friends. There is an increasing number of population which wants to get into the aspirational group of customers hanging out at a cafe with friends. It has slowly taken speed and is getting converted into a style statement.

Segmentation

Demographic

Age – The age group relevant for the segmentation for the mentioned product/service is categorized into following groups:

a) Below 20 years

b) 20-40 years

c) Above 40 years.

This is mainly because the tea/snack consuming habits in each of these groups are likely to be similar.

Geographic Location – The geographic location segments the entire population into four groups:

a) Metros – the four cities

b) Level 1 Cities – all cities which are considered to be modern and fast growing and which have considerable urban population

c) Level 2 Cities – all cities which have rural as well as urban population

d) Rural – all cities which have mainly rural population and they lack western influences.

Income – According to Socio-Economic Classification the three income group relevant are:

a) Lower Income Group

b) Middle Class

c) Higher Income Group.

Behavioural

Benefit Sought

Some people adopt a certain lifestyle and develop habits mainly to accomplish certain status in the social circle. They are image conscious and are ready to pay the premium just to maintain their status quo. Then, there are other people who believe in utility of the product/service and go by the value the product/service creates for them. On this basis, the two relevant categories are: a) For Status, and b) For Utility.

Occupation

The three broad categories are:

a) Working Professional – this includes all the working class population, private or govt jobs, service or businessmen

b) Students – this includes all the college crowd, both premium and modest institutes

c) Non-Working Old Aged – this includes mainly old aged people who are either retired or non-active in work.

Usage Rate

The three categories which segment the entire market on basis of going-to-a-tea/coffee-shop rate is:

a) Frequent Goers – who go almost 3-4 times a week to tea/coffee shops

b) Weekly Goers – who go to tea/coffee shops once a week or fortnight

c) Occasional Goers – people who go to tea/coffee shops only when there is some occasion like some meeting or treat from someone.

Psychographic

 

 

VALS Segmentation is to be used. Following are the categories and how they are associated with the tea shop going population.

Innovator

These consumers have the highest incomes, are on the leading edge of change, possess abundant resources, have high self esteem, and can indulge in any form of self pampering. They express and radiate individuality and fine character located within.

Thinkers

The high income group of consumers who are motivated by their beliefs and ideals. They are mature, responsible, well-educated professionals. They are practical consumers and rational decision makers.

Believers  

The low resource group, driven by ideals. They are predictable and conservative consumers. Their life is centered on their families and nations. They have modest incomes.

Achievers

The high-resource group of those who are motivated by achievement. They are successful work-oriented people who get their satisfaction from their jobs and families. They respect authority and the status quo. They favor established products and services that show off their success to their peers.

Strivers

These consumers are the low-resource group of those who are motivated by achievements. They have values very similar to achievers but have fewer economic, social, and psychological resources. Style is extremely important to them as they strive to emulate people they admire.

Experiencers

The high-resource group, people who shine by self-expression. The consumers are the youngest of all, with median age of 25. They are energetic and enthusiastic people, indulging in a variety of sports and outdoor activities. They are heavy spenders as well.

Makers

The low resource group, who value self-sufficiency. They focus on their families, work and other recreational activities. They appreciate functional and practical products.

Survivors

These consumers belong to the lowest income groups. They have very few resources. They are also the elderly of all, with a median age of 61. They are the brand loyal category.

 

Targeting

Following are the groups of people whom we will be targeting amidst the Demographics and Behavioural segmentation.

Age group – above 20

Urban college Youth, Belonging to well-off families – Get together, snack treats

This includes all the college going crowd – both male and female, who are outgoing and used to having coffee and tea in cafes. They are generally from premium colleges and institutes who are from well-off families and do not mind sitting in a cafe for a casual conversation with friends.

College Students, Belonging to middle class families – Tea Talks, friends’ pastime

This includes all students who are from middle class families, who once in a week like going out to a cafe for a cup of coffee or tea with friends. They look forward to these get-togethers and like having snacks with tea or coffee. They might not be too brand-conscious but they certainly represent a significant part of the population who has beverages like tea outside home.

Young and Middle aged Working Professionals – Informal Meetings, Snacks Joint

These represent a very promising and ever growing target segment for something like tea cafe. They are earning and do not mind spending provided they have nice time. After hectic schedule, they like to refresh themselves by hanging around these places with friends and families. They also have informal meetings with colleagues at these places.

Old Aged Non-Working People – Get Together

They represent a very steady part of cafe going population. This group includes old aged people who are generally retired or not active in business or work. They seek a place where they can find comfort, pleasant ambience and good tea/coffee. They are generally from well-to-do families and do not mind paying premium for the brand.

Positioning

A brand’s position is the set of associations the consumer has with the brand. Critical to unlocking and harnessing the potential of excellent design, advertising and communications is the development of a unique, sustainable and effective brand positioning. The best design or advertising will not work if does not effectively position the brand in your target market’s mind.

Positioning Statement (Value proposition)

Provide a nice brew of tea for customers to enjoy with their friends and family in a warm and welcoming environment

The table below is one of the models to develop compelling and sustainable brand positioning statements. We will use the model to propose the positioning for Just-T.

 

 

 

 

Brand Personality

• Young
•  Excitement
•  Imaginative
• passionate

Value for User

Having a good time

Emotional Rewards

• Happiness
• Absence of anxiety
• Relaxation
• Socializing

 

Functional Benefit

• Enjoying variety of good quality and tasty tea along with other product mix.
• People can spend time with their friends
• People can celebrate any occasion.
•  People can discuss any important issues.
• People can relax and enjoy good music in a comforting environment

Attributes

• High rated tasty and quality products
• Affordable price
• Value for money proposition for the consumers
• Beautiful ambience and decor
• Good customer service
• Variety of other product mix

 

 

 

 

Approaches to Advertising FCB Grid Rossiter-Percy Grid Branding Brand Name Tagline Logo Brand Personality Strategy User Imagery Creative Approach: New Adopter Hierarchy

Phase II

APPROACHES TO ADVERTISING

Various models have been designed to specifically asses the consumer knowledge and involvement in the brand. These models can be used as guideline to come up with various steps that can be used to prepare an advertising strategy. Measurement of brand equity and attitude molding can the underlying theories while considering the various models.

Some of the models that we will discuss are:

a)     Brand Equity model- David Aaker

b)     Consumer Based Brand Equity- Kevin Lane Keller

c)     FCB grid- Vaughn

d)     Rositter-Percy Model

BRAND EQUITY MODEL- David Aaker

Consumers prefer brands which have a high equity and with which they have strong associations. This is because they find it easier to trust known brands and enjoy the benefits it offers, feel more confident in using it and get more satisfaction. According to David Aaker, brands have equity because of 5 main factors. These five factors associated with the product or services add value to the firm and/or its customers. If not utilized efficiently, may also harm the brand.

Brand Awareness is one of the main reasons for advertising and should be done effectively to attract loyal customers. Any advertising strategy utilized should be effective enough to enhance all the values. Perceived Quality is another value that should be touched upon by the advertising campaign. Other proprietary assets refer to patents, trademarks, channel relationships, etc.

Brand Equity attainted through name or the symbol of the brand can be beneficial to both consumers and the firm.

Provides value to the consumer by enhancing:

• Interpretation/processing of the information
• Use Satisfaction
• Confidence in purchase situation

Provides value to the firm by enhancing:

• Brand Loyalty
• Brand extensions
• Efficiency and effectiveness of Marketing programs
• Prices/Margins
• Trade leverage
• Competitive advantage[1]

CONSUMER BASED BRAND EQUITY- Kevin Lane Keller

Kevin Keller’s framework says that the brand’s equity is obtained by enhancing the Brand Knowledge, i.e what the consumer knows about the brand. There is will be more consumer preference if the consumer is familiar with the brand and has more favorable and strong associations with the brand. The brand association can be brought about by the attributes of the product, the benefit it offers and the consumer’s attitude towards it.

 

The role of Advertising is to increase the awareness of the brand and to familiarize the customers with the brand. There are different strategies to do the same. Advertising also creates favorable associations for the brand in the minds of the consumer. These associations are formed through advertising by forming a suitable brand image.

The Brand Knowledge and Brand Equity of JUST T could be enhanced by suitable mode of advertising and optimum positioning of the brand. It is always a challenge for new products and brands to gain a suitable level of brand equity and awareness in a cluttered environment. It is even more challenging when it a new concept.  The advertising campaign should increase the awareness and build brand loyalty for a new brand.

 

FCB GRID

Consumer’s involvement in the product category, which refers to the consumer’s need for the information before deciding on the most suitable brand, is a very important factor which has to be addressed before deciding on an advertising strategy. FCB grid classifies the product into four categories.

THINK                                                                                                FEEL

 

JUST T

HIGH

INVOLVEMENT

LOW

 

JUST T is a low involvement, feel product hence it comes in the second quadrant of the FCB grid. Since this is a “feel” product, various transformational motives can be applied to get positive feelings for the brand by the consumer. The advertisement can be emotional or a sense of excitement or a sense of togetherness can be shown. The advertising campaign can show feelings and nostalgia associated with the taste of the product. It is a “low involvement” product; it does not need any prior research or information search. Hence the advertising campaign need not be too descriptive, short copy will do.

 

ROSITTER-PERCY MODEL

This grid has four quadrants, with involvement on one axis and whether the motivations are informational and transformational. Informational ads have negative motivations for example; the product can be used in case of an unfavorable situation or to avoid such a situation. While transformational motives are positive, if one desires a favourable feeling, one should use the product.

JUST T is more suited to follow a low involvement transformational motivation. Since it a feel product, positive ideas and image should be created in the minds of the consumers. JUST T requires a unique and authentic emotional benefit. The ads should be frequent and likeable. Drama format may also be used to showcase the emotional benefit.

 

 

INFORMATIONAL                                                                        TRANSFORMATIONAL

 

INVOLVEMENT

JUST T

LOW

HIGH

 

Brand Personality Strategy

One of the methods, a very important and successful one at that, is that of developing a brand and/or adding value to it. This is the metaphoric approach. Metaphoric definitions have the advantage of being more intuitive and those that can be easily related to by the consumer. One such metaphoric approach is Brand Personality.

As we know images speak a thousand words and if this image is a familiar person who the customer identifies with and can relate to on an individual level, then it becomes easy to connect with them. It also becomes easier to convey the message to the customers through the brand. Transforming the brand to this person is called the Brand Personality approach.

The term “Brand Personality” implies the set of human characteristics associated with a brand or the personification of a brand by the consumers and the communicators. These personalities are defined by unique combinations of demographic, lifestyle and individual identity attributes. Consumers as a part of the self-defining process, use possessions to describe themselves  and also to which group they belong,  especially in socially conspicuous product categories such as clothing, automobiles etc.(what is me is related to what I have)   Brands make personality statements, users associate a brand with a strong personality.

Brand personality can be developed at three levels –

• No conscious effort is put to create any image or personality. The consumers might form this image themselves. As a result, different consumers might view it as possessing different personalities.

• Personality dimensions and traits are built and conscious effort is put in to push the message across so that the desired personality is created in the consumer’s mind.
• An actual persona is created; giving it definitive characteristics, style statements etc. It might also be given a name and identity.

Brand personality of Just T will be developed at second level where personality dimensions and traits are built and conscious effort is put in to push the message across so that the desired personality is created in the consumer’s mind.

Brand personality of Just T

 

User Imagery

The target segment for our product are the tea drinking crowd between the age of 18-60 and belonging primarily to the SEC of A1, A2, B1 and B2. The consumer here has a varied attribute depending upon the age and the economic status. So this would include college going people, middle aged people who are working professionals as well as old non working people. The common feature that they would be looking for in the service would be a comfortable place to socialize with friends and family and tea which has an exotic taste to it. So the promotional campaign should reflect these two attributes clearly.

The general consumer that the service is trying to cater to is an urban individual. He is well educated and would generally belong to A2 and B1 class of the SEC.         The underlying assumption is also the fact that they are well to do and are interested in spending some time as well as money in hanging out at a place which provides a warm ambience and a good variety of tea to choose from. They are brand aware and would like to visit a place which has an established reputation for good beverages.

Taste as such cannot be directly reflected through an image. So, there needs to be implicit connections between the picture and the taste that we are trying to project. A common attribute that reflects the taste of a tea is the steam coming out of a freshly made tea. This shows that it has been brewed recently. This would bring about a perception in the mind of the consumer that it is tasty.

Concept

The advertisement through visual media should basically contain a group of friends having a nice time sitting at a cafeteria. The ambience should be airy and reflect the level of comfort. There should be explicit visual of the tea cup and the tea pot. The visual should show the group of friends enjoying and chatting while holding the cup of tea in their hand. The logo on the cup should be clearly visible so as to drive home the brand name. The group of friends would be young college going people. There would be others like people in formal shirt sitting and enjoying a cup of tea which would reflect the point that working professionals also can come and spend some quality time here. Not only that, there would be a visual of an old couple reliving their past youth looking at the enthusiastic kids thus trying to make it relevant to the older group of customers as well. All of these customers are shown to be greeted in a friendly manner from the waiters and waitresses showing the service quality of the place and the home-like feel to the whole cafeteria. This would end with the logo of the brand being highlighted as the rest of the things happening in the background get blurred. The whole visual should have a lively music to complement the main theme of the advertisement.

Print Ad

The print ad should have a simple image of two friends having a nice time. This can be two young girls or a girl and a boy. There can be multiple print ads which can show various themes of the service. There can be one print ad which drives home the point that it’s a nice place to hang out for college going crowd. This would primarily contain a vibrant background and some young people dressed in vibrant colours. This can be supplemented with advertisements customized for each user group such as the working professionals where a guy in formal dress up is working on his laptop and sipping tea can be shown. The logo should be prominent in each of the ads. The final ad can showcase the proposition to the older crowd by giving a sepia tinge to the whole image showing nostalgia of nice times that they had when they were young and the fact that they can relive it again by spending time at the cafeteria with a cup of tea.

Branding

Brand Name

“Just T “the name indicates that brand strongly focus on tea. The brand name clearly reflects the concept of providing offerings made out of this exotic beverage which a customer can enjoy with friends across the table. The concept is to provide a cafeteria service to the customers who would get a tea beverage of varying taste and content to meet the need of the customer.

Tagline

JUST T is all you need!

Logo

 

The colours used are black and light peach in the background. Black stands for passion and imagination. Light peach stands for youthfulness, purity of purpose which is invigorating properties of tea.

The font used for “JUST T” is called SLURRY and looks as though the letters have congealed out of a liquid. The word is still forming itself and evolving into something new and better.

Attributes

• High rated tasty and quality products
• Affordable price
• Value for money proposition for the consumers
• Beautiful ambience and decor
• Good customer service
• Variety of other product mix

Décor & Architecture

The chairs and tables would carry a laid-back attitude to provide more comfort feel. There would be a music jukebox which can play music on demand.

Literature

On every table, a in-house magazine would be placed called something like ‘Just Beat’ with articles on fashion, general interest and about the chain itself. The menu, posters and pamphlets can all be designed to attract young and young at heart.

Merchandising

By selling various kinds of merchandising through its outlets like- Flavoured Tea packs, Tea Mugs, Coffee Beans, Cookies, etc.

Café Formats

Tea Café at different locations can be of different formats like-

Music Café

Theme would be music and interior can be slightly modified to the musical theme with some musical instruments kept as showpieces.

Book Café

Some classic novels or popular books for youth can be sold in house.

Garden Café

Outside malls, the open area Café can have the open-air ambience which is a huge attraction amongst urban customers.

 

 

Creative Approach – New Adopter Hierarchy

 

The Tea café chain will essentially have the existing Coffee shops as its main competitor. Hence, the above model is the most suited one for this. In the initial stages, the target audience has to be made aware of this new offering. But, mass media advertising will NOT be the approach as the outlets and the experience would speak for the brand. To create the awareness and to generate the interest among the target audience, following things can be done-

Through television

By holding contests around famous youth TV serials where the characters can be shown visiting the Tea café. Winners of the contests can be awarded the serial’s merchandise. Also, by sponsoring programmes on channels like [V] and MTV. These channels are viewed by lot of youngsters and thus tying up with these channels provide excellent platform to create awareness and interest about the chain.

Co-Branding Activities

By tying up with brands like Wrangler and Pepe and organizing contests for target audience.

Association with movies

Bollywood market is like no other market. The tea café can feature in some movies with the stars visiting them in the movie or having some scenes shot in the café. Important thing is the movie’s target audience should match with that of the tea café.

Ticket Sales

The tea café can be involved in selling tickets of various events in the city like music concert or sports event which attract similar target audience as that of the tea café.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEDIA PLANNING INSIGHTS MARKETING OBJECTIVES MEDIA OBJECTIVE REVENUE MODEL ADVERTISING STRATEGY MEDIA CLASS MEDIA VEHICLE & MEDIA OPTIONS DETAILED PLAN

Phase III

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media Planning Insights

 

Just T is a low-involvement product which intends to affect the ‘feel’ attitude of the target consumers. Traditional Tea cafés have always been around but in form of Coffee shops, but for the first time it is being projected as a separate category altogether. Direct competition exists from existing players like Café Coffee Day and Barista. So, in the light of these things, following are some of the things considered while developing the media plan for you:

• Since, the target group consists of young, middle aged and even older people; the initial awareness is important. Right amount of reach and frequency are needed.
• Identifying the most appropriate media vehicles which focus on purchasing decisions which are based on ‘Feeling’ and ‘Emotions’ and not strictly on facts. For example, Social Media is catching up very fast these days and thus provide an important platform for driving the desired attitudinal change in Target group.
• This product falls under a segment which is highly impacted by Personal Influence (Word-of-Mouth, Peer opinion, etc.). Factors driving these influences should be controlled/
• The product benefits would be recognised and adopted in the following sequence, Innovators followed by Early Adaptors (Opinion leaders) and then by Early Majority who are our target for this phase of Media Planning.

Through these insights we formulated the media objectives which follow from our marketing objectives.

Marketing Objectives

• To create the brand awareness and have a TOMA of 20% among TG in first year.
• To obtain market share of 10% in first year.

Media Objectives

The primary objective of the media planning is to select the right media channel for the product under constraints of costs and target segment.

• To ascertain the right media mix to have to ensure the reach and repetition
• To use proper media channels to advertise the initial promotional campaign to attract the Innovators and Early Adaptors
• To create plans for increasing the involvement and personal influence of users by use campaigns on Social Networking Sites
• To communicate the major product benefits to our entire target segment
• Use unconventional media, like internet, Google Ad Sense to cut down operational costs

Revenue Model

Expected Sales is calculated in comparison to its indirect competitor, Café Coffee Day.

ASSUMPTIONS:

1. The footfall in Café Coffee Day is about 60,000 per day.
2. The expected footfall for ‘Just T’ is 20% of 60,000 per day during launch and 35% after launch.
3. The average spending per visit per person is assumed to be Rs.135.
4. The conversion ration of footfall-to-purchase is assumed as 95%.

Source: http://exchange4media.net/brandspeak/brandspeak.asp?brand_id=58

	Expected Footfalls	Expected no Buyer	Average spending(rupee)  /visit	Sales Forecast
Launch	10 .8Lacs	10.26Lacs	135	13.85Crore
(3 months)
Post-Launch                (12 months)	75.6Lacs	71.82Lacs	135	96.95Crore

Advertising Strategy:

 

We intend to target the audience through phases. The objective is to create awareness and usage amongst our target population with initial focus on opinion leaders. So that, by the time the brand awareness is penetrated to the whole target segment, the opinion leaders would have ample time to exert personal influence.

The media classes mix used would vary for each phase in line with the objective. High initial advertising frequency gives the product the desired awareness among target people. Hence the first phase is period of 3 month, second phase for 12 months.

The parameters of the media channels and the objectives they fulfill are

 

Phase 1: Maximum possible Reach to facilitate Awareness and Trail. This is the first 3 months.

Phase 2: Build Brand Image and Associations. This is next 12 month.

Budgeting For Media Expense

 

The market for Tea drinkers is very vast and spreads over a large area. To estimate the budget, we can benchmark against indirect competitors. These can be the current coffee chains in India since our target audience is of the same age, income group and in the same area, we can reach them in similar ways. We can differentiate ourselves by the product & the value we are offering. Some of the competitors are Café Coffee Day, Barista and Costa Coffee.

Ad spend

 

The advertising will be done in 2 phases, the first is the launch for which we will be allocating 20% of the Sales volume on Advertising spending. The next phase will be to increase the footfalls into ‘Just T’. The advertising budget for this will be 10% of total sales. The first 3 months can be the launch phase while the 2nd phase lasts for 12 months.

 

 

 

 

JUST T
	Sales Forecast	Advertising Budget (20%)
Launch (3 months)	13.85Crore	2.77Crore
	Sales Forecast	Advertising Budget (10%)
Post-Launch                (12 months)	96.95Crore	9.69Crore
	Total	12.46Crore

 

Finalizing Media Channels

The major factors considered while deciding media channels are as,

• Objective
• Advertisement Budget
• Target Segment

 

The decision flow is shown below

 

Media Class

 

The media class is the type of medium that we wish to communicate our advertisement in. The following are the media class that we have in disposition:

Television/Visual media:

 

The television media would be used as a medium of generating buzz before the launch. The use of television media though would not be very extensive because it will not be a mass media campaign. The teaser advertisements would be focused more on the markets where we are launching our chain. So we are not looking at investing too much of our capital on creation of ad.

As such the clutter in the television media is too high and there is a very less probability that a heavy spend on television advertisements would translate into more customers getting pulled. So we would use endorsement/sponsoring in some of the nationally broadcasted channels and the local channels which would help in garnering the initial mileage in attracting customers and doing business.

Print Media

 

Print Media would be an important medium for our communication. That is mainly because we can get a good reach within the targeted circle through the print media at a much cheaper price. More than that, it is less intrusive than the other forms of media which makes it a convenient medium for chain businesses. The other benefit of print media is that there is a degree of control on the reach that we want to establish. We can use it to promote in a tightly defined geographical location and we get greater flexibility on the way we want to promote.

The other benefit of this media is that we have the luxury if choosing the magazines which are used by our target customers which help us reach them faster. Magazines based on society which are read by our target segment would be good platform of letting them know that our service is available to them at certain given locations.

Electronic Media

 

The electronic media has become very relevant in contemporary business scenario. The advantage of this media is the fact that provides opportunity to create greater amount of involvement through the use of blogs and corporate site. The biggest advantage of internet based promotion is the fact that we can leverage the strong youth presence in the social media sites and attract them faster. This medium, if used effectively and judiciously can kick start a viral marketing campaign which would provide maximum visibility with a very less amount of money invested. Another advantage is the fact that internet provides active seekers of the service, a platform to get to know about the service availability in different parts of the country as well as locations in a city. So internet as a media for advertisement directly caters to people who matter, and to people whom we matter.

 

Point of Sales:

 

This is probably the biggest medium of creating a lasting impression on the mind of the consumer as the purchase intent is highest in this case. So, flashy and glitzy hoardings and billboards outside the cafeteria would be a very effective medium of advertisement. The advantage here is the fact that we can convert the purchase intent into an experience, which is our ultimate motive.

Media vehicle and Media Options

 

Television

As already mentioned, only selected channels will be targeted for communication. Instead of 30 sec/60 sec ad films, endorsing or sponsoring will be done for Splits Villa on MTV. Also, contests will be held in the reality shows MTV Roadies and Cool School on Channel [V] with winners getting chance to meet the cast in Just T café.

Print Media:

The newspapers that we would be associated with for the print campaign are ‘The Times of India’ along with its weekend supplementary ‘Times Life’. The readership of TOI is very high in the tier-1 and tier-2 cities where we are focusing to do business. We are looking at a quarter page ad on a fortnightly basis to advertise here.

The magazines which we would be focusing on are Outlook, Femina and Cosmopolitan. These two magazines are mostly read by customers who are actively seeking for good places to socialize and hang out. The advertisement would be a full page advertisement which would carry our message. The advertisement would be similar to the one used in Times-Life with some minor changes. Also, we would be attaching sample tea-bags to the pamphlets in the magazines mentioned before.

Electronic Media:

The first objective here would be increasing the customer involvement in the Just T cafe site by embedding few games and using attractive designs to get the attention of the customers. A lot of jazz and colour would be added to showcase the product portfolio (including snaps of each of the products) so as to generate interest among customers. Here the challenge would be getting the customers to the site. For that, there needs to be a Search Engine Optimization (SEO) in place. By this, the site would be shown in the first page of the search list when anyone searches for keywords like ‘Tea’ or ‘Cafeteria’.

Blogs: A blog would be created which would be used to create the buzz about our business. There would be space for the customers who have experienced the service, to leave a testimonial of their experience with us. If this medium clicks, we can get a lot more hits and can leverage this hype by upgrading the blog and starting of a viral campaign (though viral marketing would be somewhat difficult to achieve in present scenario).

There would be promotional offers on various products at different points of time to attract the customers and the same can be intimated to them through the corporate site and the blogs. Any special occasion celebration like Christmas and New Year can be used to attract customers with various offers.

Social Networking sites would also play a major role in reaching out to a large customer base that is the youth. A page on Facebook and twitter would be an ideal platform to let people know about your presence. These pages can be used to attract customers by starting small games and giving away gifts such as a discount voucher or a free membership card. The relative spend would be minimal for the electronic media. So it has not been accounted for in the media budget. Electronic media can be handled in-house or may be outsourced to small companies who would take care of the design of the website and embedding of games and others applications on the website.

Other Vehicles of Advertising:

Co-Branding

Co-Branding is another very useful way of creating a buzz among the target groups. We would be tying up with brands like Apple, Wrangler, Planet M and Hero Honda whose target customers are same as ours. Ad films can be created featuring these brands together and thus providing a kind of surrogate advertising for the café chain.

We would also be promoting the brand Just T café by associating with Bollywood movies. The movie would be chosen if its target audience matches with that of Just T café with some of the sequences of movie being shot in the Just T café with its lead characters.

Also, we would have deals with the event organizer DNA in Bangalore which conducts mega-event like Iron Maiden show and Sir Elton John tour of India and through the deal, tickets for the events would be available in all Just T café outlets.

Detailed Plan

For First 3 Months	(Figures in Lacs)
TV Plan	162
Print Plan	36.78
Other Advertising Expenditures
Tie-Up with other Brands	11.73
Movie Association	15.64
Tie-Up with Events	11.73
Online Promotions	3.91
Promotional Contests in Malls	15.64
Hoardings and Banners	19.55
Total	277

 

For Next 12 Months	(Figures in Lacs)
TV Plan	648
Print Plan	147
Other Advertising Expenditures
Tie-Up with other Brands	26.16
Movie Association	34.88
Tie-Up with Events	26.16
Online Promotions	8.72
Promotional Contests in Malls	34.88
Hoardings and Banners	43.60
Total	969

 

TV Plan

 

TV Plan
Time Period	Name of Channel	Time Slot	Name of Serial	Rate/30secs (in thousand)	Daily Frequency	Daily Cost(in thousand)	Cost For Period(In Lacs)
For First 3 Months	MTV	9:00 PM	Splits Villa	300	2	600	90
	Channel [v]	9:30 PM	Cool School	200	2	400	60
	Bindaas	10:00 PM	Emotional Attyachar	40	2	80	12
			Total				162
For Next 12 months	MTV	9:00 PM	Splits Villa	300	2	600	360
	Channel [v]	9:30 PM	Cool School	200	2	400	240
	Bindaas	10:00 PM	Emotional Attyachar	40	2	80	48
Total							648

Assumption

• Advertisement is done for each program one in a week (when the new episode is telecasted for first time).So the per month frequency is taken as 4.

PRINT PLAN

 

Time Period	Name of Paper/Magazine	Slot	Unit Rate (In Lacs)	Frequency/issue	Cost per Issue(In Lacs)	Cost for Period(In Lacs)
For First 3 Month	Times of India- Times Life(Weekly)	52.5*32.9 sqcm, Front Page(Entire India)	1.6	1	1.6	16
	Outlook(weekly)	Full Page-4 Colours (Kolkata, Delhi)	0.60	1	0.60	9.2
	Cosmopolitan (Monthly)	Back Cover(Mumbai, Kolkata, Delhi)	1.05	1	1.05	3.15
		Full Page-4 Colours( Mumbai, Kolkata, Delhi)	1.40	1	1.40	4.2
	Femina (Fortnightly)	Full Page-4 Colours (Mumbai,Delhi,Kolkata,delhi,Chennai,Bangalore, Hyderabad)	1.80	1	1.80	4.23
Total						36.78 Lacs
For next 12 month	Times of India- Times Life(Weekly)	52.5*32.9 sqcm, Front Page(Entire India)	1.60	1	1.60	58.00
	Outlook(weekly)	Full Page-4 Colours (Kolkata, Delhi)	.60	1	.60	44.00
	Cosmopolitan (Monthly)	Back Cover(Mumbai, Kolkata, Delhi)	1.05	1	1.05	16.20
		Full Page-4 Colours( Mumbai, Kolkata, Delhi)	1.40	1	1.40	14.40
	Femina (Fortnightly)	Full Page-4 Colours (Mumbai,Delhi,Kolkata,delhi,Chennai,Bangalore, Hyderabad)	1.80	1	1.80	14.55
Total						1.47 Cr