EXECUTIVE SUMMARY

Drinking coffee has been a primary part of our system and it has also been a part of our history. It is served a relieving beverage and is used by everyone. Coffee is served in different types of preparation from hot coffee to cold coffee. It has become one of the most common part of our everyday lifestyle. It acts as a social lubricant, as some studies suggest that coffee can really make drinkers more talkative and social1, We had become engaged in drinking coffee and because of that we have a lot of cafs franchise stabilizing around our country. In places with warmer climates, like the Philippines and most countries in Asia, cold coffee is turning out to be more popular than the traditional hot coffee. Different iced and ice-blended versions of hot coffee are regularly available. In fact, many cold drinks are not available warm, examples are different flavors of Frappuccino blends such as Coffee Jelly, Choco Java etc.

Farroncino is a company that specializes on making Frappucino drinks. These are blended coffee beverages with ice and other various ingredients usually topped with whipped cream. Farroncino engaged themselves to limited promotional activities only such as offering sponsorships and online Advertising. The Paper seeks to provide an effective and efficient Internet Marketing Plan to help the company utilize its growth potential as nicher by engaging to innovation and by taking advantage of
1

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

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

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

1. The Paper shall present a proposed Internet Marketing Plan for Figaro Coffee Company for the year 2012. 2. All industry and company information of Figaro Coffee Company and its competitors were acquired from the data available online which are gathered and analyzed by the proponents. 3. When two or more information acquired by the researchers from secondary sources are seemingly contradictory, the writers undertook efforts within their capability to determine which of the information acquired is accurate and/or is consistent with the logical course of events.

STUDY BACKGROUND I. Figaro Coffee Company

3.1 Companys History In 1993, a group of coffee lovers and enthusiasts got together and dreamt of a cafe where they could lounge and entertain friends and business associates - an Outlet that can fulfill their demanding taste for great coffee, delicious pastries and excellent service. This dream developed into a concept and soon the concept became a reality. The concept grew into a complete coffee Outlet where Filipinos could get whatever they needed for coffee making; from the bean, to the equipment and paraphernalia, to the drinks --- THE PERFECT COFFEE. Thus, the concept was born. The foundation and principles were set (Vision and Mission), and the support systems were established. Research and Development, taste tests and sourcing began. With the machinery in place, the concept was launched. On its debut in November 1993, with a managing partner and two (2) employees, the first Outlet (rather, "kiosk") was born in the Makati Mall of the Ayala Center. This kiosk was mysteriously called the "F" store. It was the first of its kind. The Outlet had all the coffee and tea paraphernalia, it retailed coffees, freshly ground coffee beans and the first to introduce flavored coffee beans in the Philippines.

It was a very brave concept to introduce to Manila and the first few months were "testing" times for the concept. Filipinos were skeptical and suspicious about the product. But with determination, patience and perseverance, the company moved forward to its new location. The Coffee Company's name was not used until April of 1994, when the Company was finally awarded its first mall space in Manila. Then FIGARO COFFEE COMPANY was born. The name FIGARO was thought of by the directors as an idea to complete the Italian/European concept. They wanted to come up with a name that is widely recognized but not commercially and commonly used. The "Opera: Barber of Seville" has the song "Figaro" which popularized the name, thus Figaro was born. Figaro is different from other cafes since it is not just a coffee Outlet but a coffee Company. This means that each Outlet serves a world of excellently brewed specialty coffee and everything that goes perfectly well with it. The design of the Outlet, the craftsmanship, and the product line both for retail and service were the talk of the town. It was a concept almost everybody thought and to this day still thinks as foreign. The charm of the Outlet was that one could always talk to an owner or to somebody knowledgeable about coffee. People call it the "Personal Touch." And so, it became a decree that all Outlet crew must undergo an intensive two-week training period on product knowledge and the art of coffeemaking, service and selling.

It took the Company two years to establish its credibility and to re-educate the taste buds of the Filipinos to specialty coffee and from there the journey to expansion began. And as they say, the rest is history. Figaro now has over 55 outlets in the Philippines. Several more outlets are in the works to date. The success of a dream was not overnight. It took a lot of courage and determination to move forward during the growing years. But the asset of the Company is the partnership-the individual strengths of each partner. Each partner being successful entrepreneurs in their own fields-retail, import, export,

manufacturing, design and management-thus making the company dynamic, exciting, solid and truly dedicated to excellence and satisfaction. It is this kind of partnership with individuals that Figaro is looking for in Business Partners.

IV. MARKET SITUATION ANALYSIS Macro-environment Economics

Annual inflation rate from 3.6 percent this year is expected to go down to three percent in 2012.

Growth of tourism and the continuous development of leisure establishments2

Political-legal

Implementation of E-VAT3 Republic Act No. 8976 - The Philippine Food Fortification Act of 20114 Republic Act No. 7394 The Consumer Act Of The Philippines

Socio-Cultural

Practicality and convenience attracts consumers with busy lifestyles5 Collectivist Filipino Consumers. Shifting consumption of fruit/ vegetable juice products and bottled water6 Benets of higher product variety7.

2 3 4 5

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

John K. Sanfacon, CSnews Food Service Retailing, Meeting Customer Needs Through Foodservice Packaging, http://www.foodservice.csnews.com/print-topstorymeeting_customer_needs_through_foodservice_packaging-923.html, July 19, 2011 6 Consumer Foodservice in the Philippines, Euromonitor
7

Praneet Singh, Harry Groenevelt, Nils Rudi, Product Variety and Supply Chain Structures, http://www.insead.edu/facultyresearch/faculty/personal/nrudi/documents/ProductVarietyandSupplyChainS

Technological

The emergence of new suppliers for machinery and other foodservice hardware1 Faster, more efficient coffee machinery is being developed at unprecedented Online advertisement earns highest percentage of customers trust when it comes to product information8

Social Networking sites where online users are trafficked can be used to advertise site and products/brand

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

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

MACRO-ENVIRONMENT MATRIX Economics Table 4.1 Economic Macro-Environment Potential Change Implication Effect on Company

Annual inflation rate from A possible decrease in food Reduced cost of sales and 3.6 percent this year is and beverage costs and a increase in sales revenues expected to go down to possible three percent in 2012. increase in

consumers demand

Growth of tourism and the Customers from here and Potential increase in sales continuous development of visitors of the country will leisure establishments9
9

frequent

food

Consumer Foodservice in the Philippines, Euromonitor

establishments and new

both

old

Political-legal Table 4.2 Political-Legal Macro-Environment Potential Change Implication Effect on Company

Implementation of E-VAT10

Prices to increase by 2%

Increase of food costs

Republic Act No. 8976 - Food The Philippine Food including

establishments Possible

increase

in

nutritional sales once customers

Fortification Act of 201111

information about their are made aware of the food on their menu or nutritional facts of the will cite it through their food they order advertising tools

10 11

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

Policy of the State to Republic Act No. 7394 The Consumer Act Of The his general welfare and Philippines to establish standards of the consumer. conduct for business and industry. A. Socio-Cultural Table 4.3 Socio-Cultural Macro-Environment Potential Change Implication Effect on Company that the seller has with protect the interests of Possible increase in the the consumer, promote length of the relationship

Practicality convenience consumers lifestyles12 with

and Consumers

will

prefer Expect an increase in sales for food and drink establishments deliveries and offering take-out

attracts food that is ready-to-go busy

12

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

services

Collectivist Consumers

Filipino Interpersonal relationship Positive word of mouth affects buying behavior of can an individual rapidly increase of the

awareness product.

Shifting consumption of A fruit/ vegetable and

demand of

for

more May incur new product healthy development and

juice varieties bottled beverages

products water13 Benets

in

food advertising expense

establishments of higher A larger assortment Increase sales which may

product variety14

increases the probability lead to greater profit that a store will be able to deliver product desires exactly a the

customer

B. Technological Table 4.4 Technological Macro-Environment

13 14

Consumer Foodservice in the Philippines, Euromonitor

Praneet Singh, Harry Groenevelt, Nils Rudi, Product Variety and Supply Chain Structures, http://www.insead.edu/facultyresearch/faculty/personal/nrudi/documents/ProductVarietyandSupplyChainS tructures.pdf

Potential Change The emergence of new suppliers for machinery and other foodservice hardware1

Implication The market for espresso extraction machines is becoming very competitive, driving prices of hardware down

Effect on Company Lowered cost in acquiring new machineries for expansion Possible increase and improvement in the production will lead to higher profits

Websites for advertising purposes.

Designed website that is intended to increase awareness of your target market. Also, a website that will cater all of the suggestions of your customers to be used for future plans.

Websites will increase the knowledge of your consumers regarding your product that could entice them to buy your product and be your loyal customers that will probably generate companys sales.

COMPETITIVE ANALYSIS

ONLINE INFORMATION Company History

COMPANY COMPETITORS Starbucks Coffee Bean Seattles Best Figaro Coffee

Company Product Offers Online menu Contact persons for customer service/relation

Process for franchising Online orders (primary products) Online Product Recipes Online shopping for secondary product offerings(e.g tumblers, mugs, tea and coffee blends) Online giftcards and membership Link to social networking sites

Online Store locator Multi-Language Availability for International Engagements (language availability) Nutritional content of products Different sites for different countries

SWOT ANALYSIS

Strengths 1. Figaro Coffees Online site provides easy access to information about the product and other additional

FIGARO COFFEE COMPANY Weaknesses Opportunities 1. Lack of product information add value(e.g. nutritional content) to product
1.

Threats 1. Competitor s easily make their own webpage. can

Onlin

e advertiseme nt highest percentage of earns

services 2. The site also advertises our native Kapeng Barako, which boost patriotism to the site visitors 3. It is has been advertised in Wheninmanila.co m where site visitor are encouraged to visit places that shows the culture and lifestyle of the Filipinos 4. Since it is now venturing on the international market, the site provides 2 languages program: English

customers trust when it comes product information15 2. Social Networking sites where online users are trafficked can be used to advertise site and 3. Online promotional advertising are cheaper and have a wider coverage of viewers . and products/br to

2. Online information can used be by

competitor s to easily know latest status and products of the company. the

15

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

and Chinese which makes it more user friendly to their customers 5. It is linked to social networking sites like facebook.com and tweeter.com

TARGET CUSTOMER SEGMENTS Psychographics Figaro Coffee Company targets consumers who look for a Filipino way of enjoying coffee experience. These people values socialization such as enjoying time with friends and meeting with business associates. Age ranges are not limited yet the proponent based its primary target market definition on the companys primary competitors. They are characterized as young, affluent, and tech-savvy customers. They are also people combining work and a coffee break (Hoovers). KEY SUCCESS FACTORS

Figaro Coffee Company belongs to Specialty coffee beverage industry under the sub category of Frappuccino. These products have low differentiation. The different Key success factors within the industry that make up its parts and have to achieve by the industry players before being considered successful. The scope is only based on the online Information necessary in creating a site and in engaging to e-commerce.

Convenience Convenience in the context of accessibility. Through the use of internet, accessibility of product information is now available online. Whenever consumers feel the need to know certain information regarding a product, he/she can just browse the net, go to the companys website and search for the information needed.

Choice Choices depend on the product assortment or the depth of the product offering. Larger assortment increases the likelihood that a store will be able to deliver exactly the product a customer desires.16 Even if a customers tastes are diverse, his/her perception of variety in a stores assortment may drive their purchasing decisions. A deeper assortment of products is more likely to foster a positive brand image among new customers, lead to customer stickiness to the retailers product and increase the probability of referrals. Service Services online is determined based by how fast the customers feedbacks and suggestions are responded/entertained by the company. Services also include online payments in terms of product ordering and shipping. Value for Money

16

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

Value for money is shown as the value of the product does not depend on its price. Products can be a real worthy if its price meets or exceeds the expectation of its customers, whether it is high or low. Farronccino is working under this concept by offering products in fair prices but meets the quality raised by the customers.

MISSION

Our companys mission is to provide products that customers will savor and enjoy for just fair prices, as well as to provide services that give them convenience in terms of waiting time and accessibility. VISION Our company's purpose is to produce and introduce a different line of Frappuccino drinks with a value exceeding its price to cater customers satisfaction and enhance customer loyalty. OBJECTIVES Through the Proposed Internet Marketing Plan, Figaro Coffee Company aspires to achieve the Following objectives:

1. Improve the sites layout by providing more informative and easy access

tools/software.

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

V. SWOT STRATEGIC ANALYSIS MATRIX

Internal

Strength 1. provides easy access to information 2. advertises our native Kapeng Barako, which boost patriotism to the site visitors 3. has been advertised in Wheninmanila.com 4. It provides 2 languages program: English and Chinese 5. It is linked to social networking sites MAXIMAX STRATEGY
Take advantage of the

Weaknesses 1. Lack of product information to add product value.

External (Technology) Opportunities 1. Online advertisement earns highest percentage of customers trust 2. Social Networking sites can be used to advertise site and products/brand. 3. Online promotional advertising are cheaper and have a wide coverage of viewers

MINIMAX STRATEGY

social networking sites by bombarding them with advertisements and links to the company webpage to promote the products/brand(S3,S5,O 1,03)
Build relationship with

Provide additional information to increase the product value proposition to develop trust from the consumer(W1,O1)

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

Threats 1. Competitors can easily make their own webpage. 2. Online information can be used by competitors to easily know the latest status and products of the company.

MINIMIN STRAGEGY
1. Benchmark

Use patriotism and advocacies to gain a differential advantage from the competitor(S2, T1) Create a more userfriendly website where consumers easily browse the information they need (S1, 01)

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

Action Plans

Provide additional information of the Products Activity Timetable 4 days Responsibility Owner Budget --

Make a list of information that you wish to add regarding your product Submit the list to the administrator of their Facebook account Input all additional information to their Facebook account Publish it to the public Total

1 day

Owner

7 days

Designer/ administrator

1 day 13 days

Designer/ administrator

Take advantage of the social networking sites Activity Timetable 5 days Responsibility Designer/ administrator Budget --

Create an account for each social networking sites Input all the information needed to each account Place all advertisements in

5 days

Designer/ administrator

4 days

Designer/ administrator

each account. Place a link of their main webpage to each account that they made Total 17days 3days Designer/ administrator -

Create a more user-friendly website

Activity Conceptualization of ideas that will be seen in the website Contact their web designer Meet their web designer to discuss the concept of the website Make the website and make it

Timetable 14days

Responsibility Owner & Manager

Budget --

1days 4 days

Owner Owner, Manager,& designer

30 days

Designer/ administrator

as user- friendly as possible Have it approved by the owner Make the necessary adjustment Publish the website to the public Total 55 days 1 day designer 1 day 4 days Owner & designer Designer/ administrator

Gantt chart Action Plans Provide additional information of the Products Action Plan 1 Make a list of information that you wish to add regarding your product Submit the list to the administrator of their Facebook account Input all additional information to their Facebook account Publish it to the public Take advantage of the social networking sites Create a more user-friendly website Action Plan 1st Create an account for each social networking sites Input all the information needed to each account Place all advertisements in each account. Place a link of their main webpage to each account that they made 2nd
st

nd

JAN 3rd

4th

5th

JAN 3rd

4th

5th

Action Plan

FEB

MAR 5th

1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th Conceptualization of ideas that will be seen in the website Contact their web designer Meet their web designer to discuss the concept of the website Make the website and make it as user- friendly as possible Have it approved by the owner Make the necessary adjustment Publish the website to the public

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

Action Plan - 2012 Provide additional information of the Products Take Advantage of the Social Networking Sites Create a More-User Friendly Website.

January

February

March