Executive Summary JavaNet, unlike a typical cafe, provides a unique forum for communication and entertainment through the medium of the Internet. JavaNet is the answer to an increasing demand.
The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) a place to socialize and share these experiences with friends and colleagues. Marketing will play a vital role in the success of JavaNet. JavaNet must build a brand around the services it offers by heavily promoting itself through print advertising.Marketing efforts are Just eginning by the time a potential customer enters JavaNet for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer satisfaction. Our target markets include: Students from nearby housing centers. Business people from the downtown business centers and professional buildings. Seniors from nearby retirement facilities.
Situation Analysis JavaNet Just opened its doors for business a little over a month ago.Business is good, and customers have been impressed with our offerings, but we need to focus our fforts on implementing the strategies, programs, and tactics. The Internet services is rapidly being accepted by the local community. Students love to gather for late-night sessions, nearby seniors are getting a glimpse of what the Internet offers, and local business people love to stop by for a quick bite and an email check. Market Summary All three target markets for the JavaNet service are growing at a relatively fast pace. We’re faced with a large number of potential customers, and we’re offering a needed service.Target Market Growth: University students continue to grow at a steady pace, at nearly 4% Office workers in he downtown area and nearby professional buildings continue to add value, growing at 3% Seniors are becoming an important part of downtown business, growing at almost 6% Teens continue to play a major role in downtown foot-traffic, growing at 2% Market Demographics JavaNet’s customers can be divided into two groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or homes to enjoy a great cup of coffee and Internet access.
This group is made up of students and business people from nearby downtown offices and professional centers. The second group is not as familiar with the Internet. This group is made up of seniors from the downtown retirement centers. Seniors represent a growing segment of Internet users. They use the Internet to communicate wlt n Trlenas ana Tamlly ana tney wlll De regular users 0T tne JavaNet service.
The Internet has become a point of conversation in almost all social groups.People are talking about sites they visited, business people are talking about Internet-based businesses, and kids are talking about the latest Internet clubs and chat rooms. People like to communicate their Internet experiences with their friends, colleagues, nd family. However, it can be difficult to do it in front of a computer terminal at the office or in the family study. A comfortable place to gather and share these experiences is becoming a real need. JavaNet will provide: A meeting place for business people interested in sharing their Internet-based business ideas.A social hub for students and young people interested in sharing a beverage and their Internet experiences with friends.
A place for nearby seniors to gather and learn about the powers of the Internet and better communication methods. A stopping point for travelers in need of an Internet connection. SWOT Analysts The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses JavaNet must address. It also allows us to examine the opportunities presented to JavaNet as well as potential threats. JavaNet has a valuable inventory of strengths that will help it succeed.These strengths include: a knowledgeable and friendly staff, state-of-the-art computer hardware, and a clear vision of the market need. Strengths are valuable, but it is also important to realize the weaknesses JavaNet must address. These weaknesses include: a dependence on quickly changing echnology, and the cost factor associated with keeping state-of-the art computer hardware.
JavaNet’s strengths will help it capitalize on emerging opportunities. These opportunities include, but are not limited to, a growing population of daily Internet users, and the growing social bonds fostered by the new Internet communities.Threats that JavaNet should be aware of include, the rapidly falling cost of Internet access, and emerging local competitors.
Strengths 1 . Knowledgeable and friendly staff. We’ve gone to great lengths at JavaNet to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to please. 2. State-of-the art equipment. Part of the JavaNet experience includes access to state-of-the-art computer equipment.
Our customers enjoy beautiful flat-screen displays, fast machines, and high-quality printers. 3.Up-scale ambiance. When you walk into JavaNet, you’ll feel the technology. High backed mahogany booths with flat-screen monitors inset into the walls provide a cozy hideaway for meetings and small friendly gatherings. Large round tables with displays viewable from above provide a forum for larger gatherings and friendly “how-to” classes on the Internet. Aluminum track lighting and art from local artists sets the mood. Last, but not least, quality cappuccino machines and a glass pastry display case provide enticing refreshments.
4. Clear vision of the market need.JavaNet knows what it takes to build an upscale cyber cafe.
We know the customers, we know the technology, and we know how to build the service that will Drlng tne two togetner . weaknesses 1 . A dependence on quickly changing technology. JavaNet is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly. Product lifecycles are measured in weeks, not months. JavaNet needs to keep up with the technology because a lot of the JavaNet experience is technology.
2. Cost factor associated with keeping state-of-the-art hardware.Keeping up with the technology of the Internet is an expensive undertaking. JavaNet needs to balance technology needs with the other needs of the business.
One aspect of the business can’t be sacrificed for the other. Opportunities 1 . Growing population of daily Internet users.
The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so ill the need for the services JavaNet offers. 2. Social bonds fostered by the new Internet communities. The Internet is bringing people from across the world together unlike any other communication medium.JavaNet will capitalize on this social trend by providing a place for smaller and local Internet communities to meet in person.
JavaNet will grow some of these communities on its own by establishing chat areas and community programs. These programs will be designed to build customer loyalty. Threats 1 . Rapidly falling cost of Internet access. The cost of access to the Internet for home sers is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it.
JavaNet is aware of this threat and will closely monitor pricing. 2.Emerging local competitors. Currently, JavaNet is enjoying a first-mover advantage in the local cyber-cafe market.
However, additional competitors are on the horizon, and we need to be prepared for their entry into the market. Many of our programs will be designed to build customer loyalty, and it is our hope that our quality service and up-scale ambiance won’t be easily duplicated. Marketing Strategy JavaNet has three main strategies. The first strategy focuses on attracting novice Internet users. By providing a novice-friendly environment, JavaNet hopes to educate and train a loyal customer base.
The second and most important strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers serves an important function at JavaNet.
Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting. The third strategy focuses on building a ocial environment for JavaNet customers. A social environment that provides entertainment will serve to attract customers that wouldn’t normally think about using the Internet.Once on location at JavaNet, these customers that came for the more standard entertainment offerings, will realize the potential entertainment value the Internet can provide. Mission JavaNet has one purpose. JavaNet provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. JavaNet’s marketing will consistently build on this mission. Everything we do, from the pricing structure Tor our servlces to tne amDlance we create, must De cone witn tnls mlsslon in mind.
We cater to: downtown business people, traveling business people, university students, and seniors. Our ambiance and our services are designed for this clientele and our marketing efforts are focused on capturing this market. Marketing Objectives JavaNet’s marketing objectives for the first three years of operation include: Grow total sales by 10% annually. Diversify the service offering to insulate the business against fluctuations in any one component of the revenue stream. Build customer loyalty through educational programs. Maintain a staff of enthusiastic employees excited to share their Internet knowledge with JavaNet customers.Build the JavaNet brand to the point where it becomes a household word in the area. Financial Objectives The goal of this marketing plan is to outline the marketing strategies, tactics, and programs that will make the vision outlined in the JavaNet business plan a reality in the year 2000.
The vision outlined in the business plan includes sales of roughly $275,000 in the first year with that figure increasing 10% annually. Target Marketing JavaNet intends to cater both to people who want a guided tour of the Internet and to experienced users eager to indulge their passion for computers in a social setting.Furthermore, JavaNet will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use JavaNet’s PCs, or plug their own notebook computers into Internet connections. JavaNet’s target market covers a wide range of ages: from members of “Generation X,” who grew up surrounded by computers, to seniors from local retirement centers. Our primary target markets include: Students. The large student population will become an important part of the JavaNet customer base.
The student population continues to grow with the success of the University. Evening entertainment, access to the Internet, and the up-scale ambiance will attract this demographic. Business people. The downtown business community is growing rapidly with the addition of a new Compu-tech building and a flurry of new professional centers. JavaNet will provide a perfect setting for business meetings.
It will also give traveling business people an opportunity to plug their aptops into the JavaNet network to check email communications. Seniors. Represent a growing population of Internet users.JavaNet will target the seniors in the nearby downtown retirement centers by offering “Introduction to the Internet” classes. The JavaNet staff will hold brief classes in the off hours to educate seniors on how to use the Internet to communicate with friends and family. This will build a regular base of customers that wouldn’t typically use the services offered by JavaNet.
Positioning JavaNet will position itself as an upscale coffee house and Internet service provider. Business people of all types will use JavaNet as a place to hold meetings and catch- up on email communications.Students from nearby downtown housing centers will use JavaNet as a place to socialize and discuss the latest Internet sites. Seniors from downtown retirement centers will experience the Internet for the first time at JavaNet. Programs designed to teach newcomers about the power of the Internet will help build customer loyalty and spread the word about the services JavaNet offers. strategy Pyram10s The following are the three key strategies JavaNet will focus on: JavaNet’s first trategy focuses on attracting novice Internet users. JavaNet plans on attracting these customers by: Providing a novice-friendly environment.JavaNet will be staffed by knowledgeable employees focused on serving the customer’s needs.
A Customer Service desk will always be staffed. If a customer has any type of question or concern, a JavaNet employee will always be available to assist. JavaNet will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and the JavaNet computer systems.
JavaNet’s second strategy will be focused on attracting power Internet users who will provide an important function at JavaNet.JavaNet plans on attracting this type of customer by: Providing the latest in computing technology. Providing scanning and printing services. Providing access to powerful software applications. The third strategy focuses on building a social environment for JavaNet customers. A social environment that provides entertainment will serve to attract customers that wouldn’t normally think about using the Internet. Once on location at JavaNet, these ustomers that came for the more standard entertainment offerings will realize the potential entertainment value the Internet can provide.Marketing Mix JavaNet’s marketing efforts will focus on building a loyal base of customers that will use the services provided on an almost daily basis.
Services and Service Marketing As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access to the information superhighway is quickly becoming a necessity of life. JavaNet provides the local community with the ability to access the Internet, njoy a cup of coffee, and share Internet experiences in a comfortable environment.People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that JavaNet provides. Pricing JavaNet bases its prices for coffee and specialty drinks on the “Retail Profit Analysis” provided by our supplier, Allann Brothers Coffee Co. , Inc.
Allann Brothers has been in the coffee business for 22 years and has developed a solid pricing strategy. Determining a fair market, hourly price for online use is more difficult because there s no direct competition from another cyber-cafe in our area.Therefore, JavaNet considered three sources to determine the hourly charge rate. First, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider such as America Online. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a combination of both pricing schemes.
Thus, it can quickly become a high monthly cost for the individual. Second, JavaNet looked at ow cyber-cafes in other markets such as Portland and Ashland went about pricing Internet access.Third, JavaNet used the market survey conducted in the Fall of 1998.
Evaluating these three factors resulted in JavaNet’s hourly price of $2. 50. Promotion JavaNet will spend almost fifty thousand dollars in its first year of operations to build a brand and a loyal customer base. Marketing efforts will be focused on the local market, and the campaign will run the entirety of 1999, increasing roughly 10% per year to match increased sales revenue.
The marketing budget will consistently equal lmost 0T sales.Local TV spots Print Materials Local Newspapers Local Radio Spots JavaNet Events Service A Yew speclTlc Marketlng This topic is a critical reminder of the fact that JavaNet is a service business. The success of our business depends upon the quality of the service we offer and delivering that service consistently. JavaNet is dedicated to delivering this quality service. Dedicated to Quality Service Programs: We’ve gone to great lengths at JavaNet to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to lease.
An excess of staff members will consistently be on hand to provide service to JavaNet customers. Performance will be frequently evaluated both internally and through customer surveys. A highly valued member of the JavaNet staff will be the “Customer Happiness Representative.
” This individual will be available forty hours a week to monitor the level of happiness amongst JavaNet customers. This individual will be responsible for: developing customer satisfaction programs, monitoring happiness levels, responding to customer concerns, and the general well being of every JavaNet customer.