Republic of the Philippines

CATANDUANES STATE UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

TABLE OF CONTENTS

Executive Summary.......................................................................................................................1

Market Research...........................................................................................................................2

Market Trends............................................................................................................................2

Flavor Innovations:.....................................................................................................................2

Plant-Based Alternatives:...........................................................................................................2

Health and Wellness:.................................................................................................................2

Tech Integration:........................................................................................................................2

Seasonal Offerings:....................................................................................................................3

Competitive Analysis..................................................................................................................3

Target Market Analysis..............................................................................................................4

SWOT Analysis..............................................................................................................................4

Marketing Objectives.....................................................................................................................6

Marketing Strategy.........................................................................................................................7

Product Strategy........................................................................................................................7

Pricing Strategy..........................................................................................................................9

Distribution Strategy...................................................................................................................9

Promotion Strategy..................................................................................................................10

Evaluation and Control................................................................................................................10

KPIs..........................................................................................................................................10
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

Monitoring and Reporting.........................................................................................................11

Contingency Planning..............................................................................................................11

Conclusion...................................................................................................................................12

References:..............................................................................................................................12
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

Marketing Plan

Executive Summary

Island Street Coffee, a pop-up coffee shop using cart in Virac, Catanduanes, has become a

popular spot for coffee lovers and a beloved nightly haven for coffee lovers, offering a diverse

menu of hot and iced coffee flavors, along with refreshing non-coffee beverages, and the best

part is that they're right on Virac boulevard, so customers can enjoy theirs drinks while watching

the beautiful sunset. Owned and operated by Mr. Miguel M. Alvaniza together with his brother

and cousin, the shop's unique charm lies in its ability to transport customers to a little piece of

paradise, where the cool evening breeze and breathtaking sunsets create a truly immersive

experience. The marketing plan for Island Street Coffee focuses on establishing the shop as the

go-to destination for evening coffee in Virac, leveraging social media marketing and word-of-

mouth promotion to attract new customers and build brand loyalty. The plan aims to build brand
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

awareness through engaging social media content, attract new customers with targeted

advertising campaigns, and enhance customer loyalty through reward programs and loyalty

initiatives. By implementing these strategies, Island Street Coffee aims to increase its customer

base, grow revenue, and solidify its reputation as a vibrant community hub, becoming a beloved

local institution that not only satisfies coffee cravings but also fosters a sense of community and

connection among Virac residents and visitors alike.

Market Research

Market Trends

Flavor Innovations: Island Street Coffee will offer unique coffee blends that mix different

flavors. For example, create a chocolate-mint blend or a spiced chai coffee. These special

flavors can catch the interest of customers who want something different.

Plant-Based Alternatives: The rise of veganism and health consciousness has led to greater

demand for plant-based milk options (like oat, almond, and soy). Offering a variety of milk

alternatives can attract a wider audience and cater to dietary preferences. Island Street Coffee

could explore these options to attract health-focused customers.

Health and Wellness: Consumers are looking for healthier options, leading to an idea that

Island Street Coffee could offer products like mushroom coffee, adaptogenic blends, and low-

sugar alternatives to attract health conscious customers that are seeking a healthy drinks.

Tech Integration: Island Street Coffee will also engage in the growing trend of apps for

ordering, payment, and loyalty programs increasing, improving convenience and customer

engagement. In this way customer can access or buy the product without leaving their home or

going on the place to order.

 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

Seasonal Offerings: Holiday offerings are also one of the current trends in the coffee industry

and also summer drinks that are served and available only seasonally. For example a holiday

spice latte, winter warmers, gingerbread cookies, refreshing cold brew floats, and summer fruit

smoothies. These seasonal offerings can attract customers and create a festive or refreshing

atmosphere in your coffee business.

Competitive Analysis

We found several competitors in the market, including local restaurants and other small cafe

owners. Local shops may offer quality products, but they often lack the unique flavor profiles we

plan to provide. Our main goal is to stand out by offering unique flavors and a strong

commitment to ethical sourcing, which can help us build a loyal customer base.

Island Street Coffee does have plenty of competitors, which are Tallers Brew, Big Brew and as

well as the local vendors and restaurants. Based on the survey Tallers Brew is the main

competitor of Island Street Coffee that has 48% of customers who prefer their brand and the

highest percent of all competitors, followed by Big Brew that gained 20% of vote on the survey.

Tallers Brew is a popular brand of coffee, which offers affordable and quality coffee. Price

difference of it from other coffee businesses is almost similar. Island Street will focus on offering

new, unique and quality drinks at an affordable price that will be the strengths of the business

and advantage of it from competitors since based on the survey people are mostly based on the

taste, flavor and uniqueness of the product. Also Island Street will offer discounts on loyal

customers because almost 80% are interested. In this way we can compete with other coffee

business and attract more customers that can be turned into loyal customers In summary,

opportunities for Island Street Coffee are high: the menu will offer more flavors, twists and

drinks at an affordable price; and discount deals. Since customers are looking for new

experiences and low prices. Island Street Coffee can compete and be one step ahead from its
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

competitors, attract new and more customers, and be the preferred brand in the market. By

understanding the competitive landscape, Island Street Coffee can strategically position itself to

leverage its strengths, address weaknesses, and capitalize on opportunities. With a focus on

quality, community, and innovation, it can create a distinctive brand identity that resonates with

consumers in a crowded market.

Target Market Analysis

Island Street Coffee includes young professionals aged 18 to 45. These individuals are often

busy, studying, working and willing to pay a bit more for products that are good quality and

unique from other businesses. Through surveys, we learned that a significant majority of

potential customers, about 38.9%, are seeking a new coffee experience and consider the

uniqueness and taste of the product a top priority when choosing a coffee brand. They care

about their choices and prefer brands that don't stick on the past trends and want to experience

a unique product and service. Additionally, we also want to reach coffee lovers who enjoy trying

new flavors and unique blends. By focusing on its target market segments, Island Street Coffee

can effectively differentiate itself in a competitive landscape. By emphasizing quality, and

community engagement, it can build a loyal customer base that resonates with its values and

offerings, ultimately driving growth and success.

SWOT Analysis

 Prime Location: Island Street Coffee is

situated near scenic spots on Capilihan

Boulevard in Virac, offering stunning sunset

views that attract customers seeking a relaxing

atmosphere.
STRENGHTS
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

 Mobility: As a pop-up coffee shop, it can set

up in various locations, providing convenient

on-the-go coffee experiences for a diverse

audience.

 Variety of Beverages: The café offers a

diverse menu that caters to all tastes, drawing

in a wide range of customers and encouraging

repeat visits.

 High-Quality Offerings: The use of quality

beans has garnered positive feedback, with

70.8% of respondents citing flavor as a key

strength, attracting those seeking a superior

coffee experience.

 Customer Loyalty: A strong likelihood of

recommendations (45.8%) demonstrates a

loyal customer base that actively promotes the

brand and fosters a sense of community.

 Weather Dependence: The business's

success relies heavily on favorable weather

WEAKNESSES conditions; poor weather can limit operations

and negatively impact sales.

 Price Perception: A notable portion of

customers (41.7%) reported being neutral

about price satisfaction, suggesting potential

concerns regarding the perceived value of

 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

offerings.

 Quality Inconsistency: Although most

customers experience good quality, 45.8%

noted occasional inconsistencies, which can

undermine customer trust and loyalty.

 Limited Operating Hours: Operating only

from 5:30 PM to midnight may restrict access

for daytime customers, limiting potential sales

opportunities.

 Participation in Local Events: Engaging in

community events and festivals can

significantly increase visibility and attract new

customers, boosting brand awareness.

OPPORTUNITY  Expansion of Menu: Introducing seasonal or

trendy options, such as milk tea, could cater to

evolving customer preferences and draw in a

broader audience.

 Health-Conscious Offerings: By addressing

health concerns related to coffee consumption,

the shop can attract health-conscious

customers and tap into a growing market

trend.

 Social Media Engagement: Utilizing platforms

like Instagram and TikTok can enhance brand

 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

visibility and appeal to younger consumers

who appreciate visually engaging content.

 Intense Competition: The presence of

numerous coffee vendors (75% identified them

as competitors) creates a challenging

environment, making differentiation essential.

THREATS
 Revenue Instability: Income can be unstable

due to weather-related variations, which are

critical for a mobile coffee business.

 Economic Conditions: Changes in

disposable income can affect customers'

willingness to spend on specialty coffee,

posing a risk to sales.

 Negative Feedback: While most customers

report positive experiences, any negative

feedback (8.3%) can significantly impact

overall reputation and customer retention.

Marketing Objectives
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

Island Street Café Common goals of Island Street Café to take next one year for the future

better growth of their customers. Our objective is to drive 20% more customers in the door by

launching targeted marketing campaigns and attractive community events that spark traffic from

new and repeat customers. In six months, we will have increased our social media engagement

by 30%, utilizing weekly posts, daily promotions and interactive content to better engage with

our following building a stronger online brand. In order to achieve this goal, the shop will

execute a number of social media promotions that highlight its exceptional seasonal drinks,

eccentric atmosphere and sunset views. Compelling, attention-catching content like visually

compelling posts, stories, polls, contest to engage with the audience, plugin for potential

customers. As well as a loyalty program, for loyalty discounts and offers can be kind of an

incentive to return at the shop. We offer incentives for restaurant staff training and receive

customer feedback to ensure high-quality service and food, ultimately striving for 90% customer

satisfaction. Over the next 9 months we will expand by 15% with changes and options for local,

seasonal food that appeals to a wider palette. We will also leverage local businesses and event

planners to recessionist into corporate and private events such that we grow our catering

services by 25% in the next 12 months. Finally, we will achieve an increase in average order

value of 10% over six months by converting customers to more profitable combination meals

and training our staff on how to upsell effectively. Together, these goals will allow us to build a

lively and inclusive community at Island Street Café. We'll keep a close eye on our progress

toward these goals. We'll look at sales data to see how many people come into the shop, check

social media stats to see how well we're connecting with folks, and ask customers what they

think every two weeks to make sure we're giving top-notch service. These surveys will ask

about things like how good the products are how fast the service is, and how customers feel

about their overall experience. This will help us make smart changes when we need to. We've

set up a six-month plan with clear checkpoints along the way. In the first month, we'll kick off our
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

social media push and hold our first special event. This will give us a starting point to measure

foot traffic and how well we're doing on social media. When we hit the three-month mark, we'll

take a good look at how things are going. We'll also dig into what customers are telling us in the

surveys to see how happy they are and figure out if we need to change anything about our

approach. By focusing in on these specific marketing plans, Island Street Coffee aims to cement

its spot in Virac and build a lively meeting place for coffee fans. The main goal is to build strong

ties, boost the way customers feel, and back local business owners. This will make Island Street

Coffee a beloved spot right in the middle of the island.

Marketing Strategy

Product Strategy

Island Street Coffee can elevate its customer experience by focusing on several key areas.

First, sourcing high-quality, ethically sourced coffee beans from special places known for unique

flavor profiles will provide a premium coffee experience that appeals to discerning coffee lovers

and highlights the brand's commitment to quality and sustainability. Next, creating a signature

blend that becomes synonymous with Island Street Coffee or they should create a special blend

of coffee, reflecting the shop's island vibe, will establish a distinct brand identity and create a

loyal customer, this will help people remember them and want to come back for more.

Furthermore, introducing seasonal menus with limited-edition drinks featuring fresh, seasonal

ingredients will keep the menu fresh and exciting, attract customers with limited-time offerings.

This will keep things interesting and make people excited to try something new. Expanding the

product offering to appeal to a wider range of customers by introducing cold brew coffee and

nitro coffee options which are popular now and taste really smooth, catering to the growing

demand for cold coffee beverages and offering a smoother, less acidic taste, this will further

enhance the customer experience. Investing in training baristas in latte art techniques to create
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

visually appealing and Instagrammable drinks will add a touch of artistry to the offerings and

create opportunities for social media engagement. Expanding the non-coffee beverage options

to include more unique and flavorful choices, such as handcrafted teas, fruit-infused waters, or

specialty smoothies, will attract a broader customer base, cater to those seeking healthier

alternatives, and offer a wider range of options for non-coffee drinkers. Introducing a small

selection of food pairings, such as pastries, cookies, or sandwiches, that complement the coffee

and beverage offerings will provide a complete experience for customers who want to enjoy a

meal or snack with their drinks, increase revenue, and enhance the overall value proposition

and this will make people want to stay longer and spend more money. Finally, transitioning to

eco-friendly packaging for to-go orders. They should use packaging that's good for the

environment, using biodegradable or recyclable materials, will demonstrate a commitment to

sustainability and environmental responsibility, appealing to conscious consumers. By

implementing these strategies, Island Street Coffee can create a truly unique and memorable

coffee experience for its customers.

Island Street Coffee will be the premier destination or the best place in Virac for a unique and

elevated coffee experience, offering ethically sourced, high-quality coffee, handcrafted signature

blends, seasonal specials, and a relaxed island vibe. The shop will provides a welcoming space

for coffee lovers to explore new flavors, enjoy a memorable experience, and connect with the

community.

Pricing Strategy

The Pricing Model to be use for pricing strategy should include Premium pricing and Value-

based pricing. For Premium pricing, it should justify slightly higher prices than local competitors

by emphasizing the unique flavor profiles, ethical sourcing, and the overall experience offered.

Also for Value based pricing should clearly communicate the value proposition of Island Street
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

Coffee, highlighting the high quality, unique flavors, and the relaxed island vibe that justifies the

price point or with prices set competitively based on the quality of ingredients, the unique

location, and the overall experience offered.

This pricing models aims to attract a wide range of customers by offering a fair value

proposition. Prices will be slightly higher than typical coffee shops in Virac, reflecting the

premium quality and unique experience offered.

Distribution Strategy

Island Street Coffee can expand its reach and customer base by implementing a multifaceted

distribution strategy or by using a few different ways to sell their coffee. This includes expanding

physical presence with a second mobile coffee cart strategically placed in busy places, like

parks or markets, and exploring the possibility of opening a small, permanent coffee shop in a

desirable location. To cater to customers seeking convenience, partnering with delivery

platforms like Food Panda, as well as developing a user-friendly online ordering system for

pickup, will increase accessibility. Strategic partnerships with local businesses like bakeries or

restaurants offering Island Street Coffee as a featured beverage option, will expand brand

visibility and generate additional revenue streams or make more money. Furthermore,

becoming a regular vendor at local events and festivals, and developing a catering menu for

corporate events, will provide a unique coffee experience to a wider audience and offer catering

services to businesses.

Promotion Strategy

Island Street Coffee can amplify its brand awareness and customer engagement through a

comprehensive promotional strategy. This includes using social media in a targeted way, like

putting ads on Facebook and Instagram to reach specific groups of people, working with local
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

food bloggers and influencers to spread the word about their unique coffee experience, and

running engaging contests and giveaways to generate excitement. Building strong ties with the

community by taking part in local events like farmers markets and festivals, offering free

samples, and talking to people about their coffee. Working with local groups and charities for

events and promotions will make people think highly of them and get their name out there.

Sharing interesting content, like starting a blog or newsletter about coffee and making short,

engaging videos about how they make their coffee, will teach people about coffee and keep

them interested. Having a loyalty program that gives rewards to customers who come back

often, like discounts, free drinks, or special offers, will make people want to come back again

and again. Using customer information to give them personalized offers and recommendations

will make their experience even better and make them feel like they're valued. Finally, getting in

touch with local newspapers, magazines, and radio stations to tell them about Island Street

Coffee's unique coffee, how they care about the environment, and how they're involved in the

community, and sending out press releases about new menu items, partnerships, or special

events, will get them more attention in the media and make more people know about their

coffee.

Evaluation and Control

KPIs

 Sales: By the survey, 45.8% of respondents buy their coffee every week. This is a

reasonably good demand cycle. However, there is always 25% who rarely buy their

coffee and 12.5% buy daily; hence, boosting the percentage of customers buying in

higher quantities through communicating and encouraging offers is an area for growth.

 Website Traffic: Although the survey did not ask this question directly, it can be

surmised that the traffic of a website could be related to interest in the brand, especially
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

for 79.2% of customers who said they have great interest for loyalty programs or

discounts. Such initiatives will drive traffic and improve digital interaction.

 Brand Awareness: From the statistics, 45.8% would positively refer to others about

Island Street Coffee, while 73.9% would identify taste and variety of flavors as their

major selection criteria for the brand.

Monitoring and Reporting

 Sales Indicators Monitor: ay-to-day, week-to-week, and month-to-month sales to

understand the amount that is occurring and the period when the highest number of

sales occur. This should be cross-checked with promotional activity.

 Customer Satisfaction: As per the survey, 41.7% rate the coffee excellent and 37.5%

rate it well, which gives 79.2% positive perception of the customers. On the other hand,

33.3% of the customers experienced inconsistency in quality at times. These issues can

be even improved by enhancing customer satisfaction. Customer satisfaction must be

monitored by regularly taking customer surveys, in-store feedback forms, and online

reviews.

 Website and Social Media Analytics: Monitor visitors to the website, click through

rates, as well as campaign conversions from loyalty programs or discounts, as 79.2% of

respondents claimed interest. Monitor social media engagement metrics, also track

brand mentions, and sentiment.

Contingency Planning

Even though Island Street Coffee's strategy is very robust, contingency planning should be in

place for such eventuality as:

 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

 Price Sensitivity: 37.5% of the respondents felt that price was a concern, and 41.7%

were neutral in terms of satisfaction with price. One strategy could be to run some

targeted promotions or introduce tiered pricing, where the options could include smaller

cups or different product packages, depending on individual targets of more sensitive

price consumers.

 Competitions from Other Sellers: 75% of respondents said that the other coffee

vendors are the biggest competitor, while others mentioned fast food chains at 20.8%. In

that case, Island Street Coffee can differentiate itself through unique flavors and build a

brand story around offering local, premium coffee.

 Concerns of Health and Diet: Calorie concern for 37.5%, and ingredient concern for

33.3%. This recommendation may leverage the growing 62.5% health-conscious and

better-for-you industry trend, making the brand a leader in this emerging space.

Conclusion

The Island Street Coffee really built a well-positioned market stand through its high-quality

products, especially the taste and flavor of its coffee. But there are several areas for

improvement of the company, including price perception, consistency of quality and health

concerns issues. Working on a customer loyalty program and increasing brand awareness

through this customer feedback will help Island Street Coffee raise its market share and loyalty

toward customers.

References:

Island Street Coffee. (n.d.). Facebook profile. Facebook. Retrieved October 9, 2024, from

https://www.facebook.com/profile.php?id=100094103425100&mibextid=ZbWKwL
 Republic of the Philippines
CATANDUANES STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
Virac, Catanduanes

Island Street Coffee. (2024). Sunset coffee moments [Facebook reel]. Facebook.

https://www.facebook.com/reel/462252916793595

(M. M. Alvaniza, personal communication, October 01, 2024).