DOMINICAN COLLEGE OF TARLAC

Mc Arthur Highway, Poblacion

2315 Capas, Tarlac, Philippines
S.Y. 2015-2016
COLLEGE OF BUSINESS and ACCOUNTANCY

ADVERTISING PLAN

In partial fulfilment of the requirements in Marketing 7:

Advertising

THE PIONEERS
Maria Andrea B. Dalagan
PROFESSOR

I.

Situation Analysis

A. Company History:
Coffee Madness is one of the first coffee shop in the
town of Capas. It is a dream place to escape the daily
stresses of life. It is a comfortable place to relax and
meet-ups with barkadas. Like every establishments it has
its own history to cherish.
Coffee Madness is located on the second floor of San
Trope commercial building near RCS Supermarket at Capas,
Tarlac. The property is located in a commercial area
within a walking distance from the towns supermarkets,
banks and other establishments. Also, nearby schools and
colleges like Saint Peter College and Dominican College
of Tarlac.
The coffee shop was first opened to the public on
March 15, 2014, it is owned by an Overseas Filipino
Worker (OFW) from Singapore, Cherry Anne Ocampo, 35 years
old. Their family is from Jefmin Village Concepcion,
Tarlac. She met a British national while working abroad
and eventually developed a romantic relationship. The
British

gave Ocampo money to fund a business venture,

and they both decided to establish it here in the

Philippines particularlyCapas. The couple/partners first
thought of a carinderia, but the sister of Ocampo, Debbie
Ocampo has a daughter who got a degree in Hotel and
Restaurant Management, at that time she suggested to have
a coffee shop instead. She made a business plan and
eventually made it happen. Coffee Madness is now in the
run for one year and three months.
B. Product History:
Coffee Madness offers its customers the best tasting
and healthy coffee beverages and green tea inCapas. The
coffee shops menu listings includes gourmet coffee,
frappes and green tea, as well as refreshment beverages.

Coffee Madness also offers its customers pastries like

cakes, waffles, cookies, etc. they also serve pastas. Its
menu is built around espresso-based coffee drinks such as
lattes, mochas, cappuccinos, caramel and Choco.
Coffee Madness is best known for its organic coffee
and for its good healthier benefits. They use the coffee
products of Organo Gold from Manila, a global direct
selling company. It claims that their product contains a
Ganoderma, a mushroom that can be a use of medicine
around the Asia. And their supplier of its pastries is
from Angeles City.
C. Product Evaluation
c.1

SWOT Analysis

Coffee Madness determined its strong points to retain

it, its weaknesses to make actions to overcome them, its
opportunities to make a progress and to plan for it to
make it possible, and its threats to be prepared for the
inevitable competition and obstacles. They planned their
SWOT Analysis.
Its strengths is composed of: Health benefit of its
coffee products; Good product quality; uniqueness and
good ambience of the coffee bar; well-trained and
committed employees alongside with its outstanding
customer service and great customer relationships;
affordable products; and its modern facilities with
necessary equipment.
Every businesses has its own weaknesses and here are
some of Coffee Madness that possess: Poor location; new
entrant in the market without reputation; lack of
operating experience in the coffee industry; and it has a
limited financial resources.

Opportunities is needed in every business to cope up

with the growing completion and to be able to follow the
trends. Coffee Madness is looking forward for these
opportunities: increased demand for coffee and its health
benefits; increase in use of internet and social media,
with the help of this they can minimize their expense on
promoting their coffee bar and its product; many local
business located in the area and many schools in the town
that can be a possible market for them.
These threats can break or can be converted as an
opportunity: increase in the price of coffee and other
raw ingredients; growing competition in the area.
When you evaluate your threats be sure to look for
ways to turn your threats into opportunities rather than
simply analysing ways to mitigate your risks.
Often the analysis of threats includes looking at how
you mitigate them by preventing the threat from
happening, reducing exposure to the threat assuring early
detection, developing contingency plans and hedging
against the threat.
In the case of Coffee Madness it can make a mark up
for its products that can meet the possible increase in
the materials. And as for the competition, they must keep
on making creative ideas, promotions, and they need to
keep up with the needs and wants of their consumers.
c.2

Product Differentiation

Coffee Madness provides its patrons the finest hot and

cold beverages, specializing in gourmet coffees, custom
blended frappes, and green tea. In addition, Coffee
Madness offers domestic selected soft drinks in cans,
other adult drinks, pastries, and pastas such as creamy
carbonara and pesto.

Their espresso based goods like the frappes and their

gourmet coffee has its healthier benefits for those
health conscious especially those who has hyper acidity.
It contains 100% organic Ganoderma Lucidum, it is a
mushroom that has extensive use in Asian madecine. It
helps strengthen the immune system. It helps to enhance
energy, stamina and endurance. And it helps to enhance
mental alertness and reduce forgetfulness. Also it helps
detoxify the body which women nowadays looking for their
beverages. It helps to improve the blood circulations
which is also good for the adults. And no palpitation and
hyper acidity which is usually the effect of coffee. This
is Coffee Madness competitive advantageagainst incumbent
competitors.
Their baked goods are supplied by a trusted bakery and
their pastas are delicately prepared by their welltrained chef to satisfy the taste and expectations of
their customers.
All of these products are strategically priced in
which they considered their expenses in
ingredients/materials used and labor cost and its mark
up, to reach the customers affordable budget standards,
which also to the part of management is fair enough to
gain their expected profit. It is a win-win situation for
both the parties.

c.3

Branding Strategy
The branding strategy will give an identity to the

company that the owner want to portray. It also helps

build an image or idea and create a reputation for the
market to be aware of.

The name and design of Coffee Madness was created by

the nephew of the owner and his fianc. The word coffee
was designed with a cup under it forming a smoke which
curved as the two letter f. The word Madness was designed
as simple yet elegant. It was printed black and white for
added sophistication. Black symbolizes as the bitter
tastes of coffee. And the white color symbolizes the best
tasting products and its health benefits that they offer.
Coffee Madness means people that are madly in love
with a cup of coffee. They agreed with its name because
she is also a coffee addict.

D. Consumer Evaluation
d.1 Consumer Make-up:
Every businesses has its goal to provide the needs of
the consumers and gain an excellent feedback from them
and of course to earn profit. Consumers play a vital role
in the businesses, they are its life blood.

In the market analysis of Coffee Madness, it is

expected that their possible markets will be the students
from the public and private schools within the area. And
the faculties and staffs of these schools.

The office

workers from banks, clinics staff, private sectors as

well as the employees of the near supermarkets and
businessmen are also noted as one of their possible
markets.
d.2

Market Segmentation

As can be seen, customers represent the core of any

business as they bring profit to the company and help it
survive. Thus, in order to satisfy them better, the
company usually segment them into different groups based
on their different preferences, behaviours, and several
attributes.
Coffee Madness focuses its marketing activities on
reaching those College students, people working in
offices located close to the coffee bar and businessmen,
and on sophisticated teenagers. Their market research
shows that these are the customer groups that are most
likely to buy gourmet coffee. Consumption is universal
across different income categories and most depends on
the level of higher education.
According to Coffee Madness in their market
segmentation, the females and males from the age range of
18-27 years old dominated the highest percentage as their
consumer. It is composed of the college students and
professionals. Next in line are the teenagers from the
age range of 13-17 years old who wants to pass time
before going home or those planning to have a group study
in a comfortable and quiet place. And lastly are those
ages ranging from 31-55 which most likely are businessmen

and office workers who wants to relax after the long

hours of work.
d.3

Positioning

Coffee Madness is positioned as the best tasting and

healthier coffee bar in the area it is located. It
targets those who are health conscious but cant start or
end the day without a cup of coffee from teenagers to
young adults to adults. Their gourmet coffees specializes
to cater these group of customers.
Coffee madness positions itself as a unique coffee bar
where its patrons can only enjoy a cup of coffee as well
as spend their time in an ambient environment.
Comfortable couches and chairs, dimmed lights and quiet
relaxing music will help the customers to relax from the
daily stresses and will differentiate Coffee Madness from
its competitors.
E. Competitor Evaluation
Coffee Madness considers itself to be a player in the
coffee bar industry. It knows that competition for its
products range from coffees to pastries to adult
beverages and other refreshments.
Coffee Madness tries to outrun these competition and
be the best coffee bar in the area or at least levelled
their products and service to give a nice competition.
e.1

Primary Competition

National Coffee house chains:

Starbucks, had gained US$ 16.447 billion revenues in
the year 2014. That is an increase of 11% over the year
of 2013. Starbucks has a 21,536 stores in 65 countries as
of the year 2014. In the survey we conducted it shows in
the result that there are some who are willing to travel

to its nearest shop Starbucks Luisita, just to satisfy

their addiction to its product, because it has already a
strong image and reputation to the market. That is why
Coffee Madness considered them as one of their major
competitor.
Coffee Madness believes that it has a competitive
advantage over this chain because of the following
benefits:

Cheaper price but has the same best tasting

frappes and gourmet coffees and pastries.

Higher product health benefits

Local Cafes
The toughest competitor for coffee Madness is the
established locally owned caf such as Le Caf,
Caketopia, Insteagram, and Northern Cup. Coffee Madness
knows the quality and pride that the local caf has in
the product purchased by their customers. Any local caf
has a customer base that is dedicated and highly
educated. The quality of beverages served at an
established caf will surpass any regional or national
chains.
The competitive edge of Coffee Madness has on the
local cafes is based on the attributes of:

Affordable quality product with healthier

benefits
Relaxing ambience
Better customer service

Coffee Vending Machines

In this new generation, an ordinary cup of coffee is
not just enough especially for those sophisticated
teenagers or College students. Food Pornography is very

trendy with the help of social networks so creatively

designed coffees are being patronized.
Coffee vending machines will not meet the expectations
of those group of customers and eventually they will not
be satisfied. It is not convenient to the target market
of the Coffee Madness. Mostly, its buyers are the
drivers/commuters and by-passers.
e.2

Secondary Competition

Fast Food Chains and Convenience Store

These are two industries where Coffee Madness will
experience a certain level of competition. These are
McDonalds, Chowking, Jollibee, Cindys, 711 and Mini
Stop. The national fast food and national convenience
store chains already serve coffee, soda, pastries and
some breakfast meals. These stores obviously know the
customers values in purchasing coffees. Coffee Madness
knows that within the gourmet coffee and tea market, the
quality of the products sold will be much greater than
what can be currently purchased at fast food and
convenience stores.

II.

Marketing Goals
A. Short Term
In the span of one to two years, Coffee Madness
focuses on getting new customers, retaining the existing
customers, getting more customers to spend more and come
back often. Establishing a loyal customer base is of a
paramount importance since such customer core will not
only generate most of the sales but also will provide
favourable referrals.

In the growing technological advancements it is

therefore a goal to have a website to cope up with the
new trend in the industry. These are the short term goals
of Coffee Madness.
B. Long Term
In able to be progressive, it is good to always
foresee the future. Coffee Madness is looking forward for
the years to come. Their long term goals are to be able
to relocate the coffee bar in a more suitable place. And
to possibly have expansion and have a drive-thru to cater
those commuters and busy mobiles. They also want to
eventually increase their income to 5%-10% within 2-5
years. Opportunities is a sweet treat for any business,
they are looking forward to have investors, so that they
can branch out the coffee bar.