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Graded Assignment Week 5 by Mind Map: Graded Assignment Week
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Graded Assignment Week 5

Indentify Smart Objectives (think about the environment analysis

Now, danger, and this is something that I want you to remember constantly; any objective whether it be personal, whether it be financial, whether it be marketing, whether it be corporate, any objective whatsoever and at any level so even communications objectives would still need to be SMART.  In other words Specific. Measurable, Agreed, Realistic and Time related.  Now just as an aside whenever you hear anybody talk to you about objectives I want you just run through very quickly the SMARTness if we can use that acronym to identify the extent to which they’re likely to succeed. So is it specific enough and I’ll talk more about the sorts, what makes it specific in the next couple of slides but is it specific enough so we know exactly what we’re talking about here. Can we measure the subjective cause if you can’t measure the objective what’s the point of it being an objective.  If it’s not measurable it’s fanciful thinking and it’s a complete waste of your time because you can’t concretely should I say measure the impact of your strategies in achieving this objective if you can’t measure it.  Is it agreed?  Now this relates to the organization itself.  Does everybody generally speaking agree to this objective?  Because chances are if they don’t they’re not going to work towards it and it means politically speaking you’re dead in the water, you’re not going to get the job done.  So is it agreed with the client, yourselves as consultants, individuals within the teams, and does the wider organization agree in principle with the objective that’s been set? Makes perfect sense, does it not?  Number four there every important, keep it real.  Is it realistic, given the objective that you set are we setting our self up to fail immediately by setting unrealistic objectives?  And again this will depend on your review of the environment, your understanding of the competitors, your understanding of the consumers that you have and give you a feel for whether or not you believe this is realistic objective or not. Finally is it time related, if there’s no time related to the objective that you’ve just set then again this becomes a complete waste of time. We need to know by what time we need to actually achieve these objectives in order to make our strategies effective.  Now this SMART objective acronym will never ever let you down and as I said you can use it for absolutely everything and I want you to. Whenever you hear objectives I want you constantly thinking SMARTness.  Does it meet the SMART criteria and if doesn’t then it’s not a SMART objective.  I also find that a lot of students have sort of commented me in the past that this is great at job interviews when people sort of--  one of the big questions they always ask is what are your objectives and you can say what your objectives are.  And then just briefly can go through the SMARTness of them with your client or with your potential employer to demonstrate that you really do understand what you’re talking about.  And this is, you know, this is a science in a sense that we can make sure that we’re likely to achieve these objectives by ticking off the SMARTness of each of them.  Similarly you might say to your client well what are your objectives for me, what do you want me to be achieving for you over these sorts of periods of time etcetera, etcetera?  Or what are your organizational objectives, what are your departmental objectives?  And just run through the SMARTness and say oh I see okay and if they don’t give you answers that satisfy each of those and it’s a great way to open the door to explore further possibilities. And of course the outcome is you look really smart in the process of doing this.  

Specific

Increase customer base over next year to earn enough profit to build a new building and expand the company in the Greater Rochester Area and on the Internet

Measurable

1. Cusomters: new and previous that return

2. Income increases

3. New equpment purchses

4. New employee base

Agreed

Marketing Team and Jody are on the same page with the specific objectives

Realistic

Time frame is not rushed and Jody understands that it will take time, and it must because he will need to hire new help

Timed

Will take at least three years to accomplish the objectives. Each year is a benchmark for completing a step of the plan.

In 6 months, we want to have at least 5 internet sales a week. (S - internet sales, M - 5 sales, A - yes we agree, R - it is definitely realistic if the marketing plan is successful, T - 6 months)

In 6 months, we want to have $2,000 - $3,000 (or more!) of PROFIT per week in order to SAVE for the 4,000sqft facility with portion packer and k-cup machine. (S - save money to expand, M - $2k-3k per week, A - yes we agree, R - yes, realistic, currently getting 1k-1.5k per week, on an increasing scale, T - 6 months)

In 2 years, we want to have 5-10% of the local (greater rochester area) market share (S - Market share, M - 5-10%, A - yes we agree, R - it is realisti, T - 2 years)

• Increase market share by 5-10 percent within the next 2 years • Achieve and maintain average weekly profits of $2000 - $3000 within the next 6mths – 1.5 years. • Hire additional staff of 1 – 2 resources within the next 6 months to a year. • Grow current internet marketing efforts to achieve a minimum of 5 orders on average per week within the next 6 months. • Expand production within the next 1.5 years by acquiring a new 4000 sq. ft (minimum) location

Marketing Strategies

Word of Mouth

Field sales

No detailed marekting strategies in place currently

Local advertising, flyers at diners, local food & convenience publications

It is clear that company is very limited in terms of work force. Therefore, working with potential customers (visiting, presentations), while running operations (roasting, delivering) to meet the demand of current customers becomes quite challenging. Especially if current customer base is comprised of many small accounts, it creates a lot of logistical work. The best strategy would be to land a few of big primary accounts and focus on them. It will eliminate the time and effort spent to fulfill many small orders given the limited workforce availability. From operational and logistical standpoint, it is better to have few bulk customers than many small accounts. Therefore, landing a couple of steady big accounts such as Monk Bread will provide with relative stability of cash inflows, then, after certain stability is attained, other segments of the market could be explored. Thus all efforts should be devoted to landing of couple of big accounts. It means going after relatively huge institutions, chains.

At the same time, company should think about long term objectives as far as 10-15 years from now. Where we want to be? In this matter, company website comes as a handy tool in order to raise awareness of ESCR brand on the regional and even global level and serves as a form of advertisement. Along with objectives to increase market share in the greater Rochester area, website allows to explore opportunities all over the USA. Thus, because of the brand's newness, activities that raise awareness should be carried out physically in the Rochester area, as well as in online community of coffee fans. For instance, company could become active member in blogs, clubs, associations and social networks advocating its products. I think we should start with creating a Facebook account for ESCR under products categories. Then if all of us become a fan of this product, we can advocate for it in this fashion. Company owner could ask his friends to do the the same thing, so the community of ESCR will be growing. If anyone will be interested in trying the product, it could be easily ordered from wonderful and interactive website that ESCR already has. For sure, this will help to reach the objective of making 5 weekly orders in 6 month from now.

Key strategies to help Evening Star Coffee Roasters achieve their goals include both a Niche and Differentiation strategy.

Niche Strategy:

• Evening Star Coffee Roasters has great opportunity to capitalize Niche markets by furthering their “green” eco-friendly practices as well as increasing and further leveraging the community services they are providing by partnering with local charities.

Differentiation Strategy:

• Emphasize the eco –friendly practices • Stronger more meaningful relationships (this may only apply to the corporate/business customers – may not hold true as he grows his consumer base) • Unique product features • Brand & Image packaging

Consider Porters work- which strategy will you advise your client to pursue and why

Strategy to pursue

Implement new marekting tactics, expand customer/diner base, expand online presence, and switch potential customers to current by marketing the benefits and experience that ESCR provides its custoemers.

Why????

The strategy is ambitious and will take time but the potential for growth and oppurtunity, the marketing team beleives that the objectives can be acheived.

In terms of Porter's model, company stands close to be a differentiator. Its clearly not a cost leader because it does not have similar economies of scale as huge coffee producers have, nor it targets a niche market. Company should present itself as a quality differentiator. Therefore, it becomes critical to develop its branding strategy. Customers should be able to identify ESCR brand as an exclusive quality product and willing to pay extra for special taste and aroma. Based on differentiation strategy, company should have strict quality control to ensure 100% quality as well as exceptional customer service. It will help the company to sustain and build on its differentiation strategy while increasing customer loyalty. So, company should first create that "quality" and then communicate it to potential customers through providing coffee samples. Though it is expensive, but it would be valuable to conduct a survey identifying the segments, tastes, behaviors and patterns of coffee consumers in order to capture the existing opportunities in coffee roasting industry. Why people prefer one coffee brand to another, and what factors affect the popularity of certain brands. Answers to this questions will help the company to channel its efforts towards popular coffee tastes and establish itself as a differentiator on the current market.

Marketing Objectives

Increase and establish ESCR online, social networks, blogs

Increase local market presence

Establish a plan and presentation to impact a potential customer to switch to ESCR as a supplier.

Establish a map for creating a customer experience that can expand through feedback collection and perks for future purchases and reccomendations to the company.