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MARKETING PLAN FOR DEMENTIA COFFEE
According to Alzheimer’s Research UK (Mintel Academics) nearly 540,000 people in the UK have been diagnosed with dementia; however, it is estimated that over 300,000 more are suffering from the disease but are undiagnosed. There are about 90,000 people who are living with dementia. Around 2,750 people are living with dementia and other related diseases in Renfrewshire Paisley.
At the current rate of growth, the number of dementia patients is forecast to grow to 1.14 million by 2025 (Mintel marketing Research 2017).
There is a portion calculated in percentage below that shows the number of people with different dementia diseases.
Alzheimer’s Disease: 60%
Vascular Dementia: 17%
Mixed Dementia: 11%
Frontotemporal Dementia :2%
Parkinson Disease Dementia: 2%
We conducted a primary research where we focused on interviewing Dementia patients, care givers, family support workers. Some of the questions we asked was:
- What is your ethnicity?
- Do you get peer support?
- Are you a carer or a dementia patient?
- Have you ever visited a dementia coffee shop?
- Would you love to visit a dementia café?
- How do you feel staying at home all day?
- How often do you socialize?
- What would you expect at the café?
The interview was conducted between 10-15minutes, we got only 1 care nurse, 10 care givers, 15 family support workers who were ready and willing to answer the questions. Their ages rages from 18 – 60, Where some of them are grandchildren, spouses, and care workers. Their ethnicity was mainly Scottish and white British with English as their first language. Carers explain that they don’t get peer support since they are mostly at home supporting patients. They mostly don’t visit dementia coffee shops since they think it will be another stress on them. They responded that they will really wish to visit café since you can socialize to release stress since you are mostly at home all day and they don’t get time to socialize with their friends and don’t have fun anymore.
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Most of them think it will be good to visit in the morning and carers personally said they would love to visit when they close from work where they can come and relax and meet different people to talk to.
The care nurse suggested that the café should be painted with beautiful colours and also coffee cups and plates should also be colourful since it will create easy remembrance thee next time they visit.
Online Survey Responses:
Basically, interviews would not be enough to gain more knowledge therefore an online survey was also conducted using direct market research to understand it better what can be done to drive and retain consumers or even prospects. We posted the link on network sites and other social media. This also helped us get direct feedback about how they feel about our products and services.
Using the survey Monkey, 10 questions were asked, we made the questions so simple and easy to answer because we targeted Alzheimer patience and carers. We were able to survey 91 people in total for their opinions and suggestions. https://www.surveymonkey.co.uk/r/DB83CPL
Started: Sunday, November 11th, 2018, 7:30:17 PM
Ended: Wednesday, November 14, 2018, 7: 31:52 PM
Figure 1: Gender and Employment status of respondent
Figure shows a total of 90 respondents a total of 29 females representing 32.22% and a total of 68 females representing 32.22%. Also it shows the employment status of respondents looks like the percentage of the employment is higher than the unemployed.
Figure 2: Frequency and usage of Dementia coffee.
Figure 3: Means of transport and preferred time
Figure 4: Amount likely to pay: Preferred intake time in a week
Figure5: Other services: Recommendations
Our customers will feel more relaxed because we will create a community where people will interact with each other and meet up with new friends. It will be a relax space that will entice them than their usual coffee intake at home. This approach will make Dementia patients feel safe and at home. We would create a special welcome treat for Dementia sufferers at the café and the will not easily forget it. Because the café is specifically tailored to a specific reason, more attention will be focused on how to make the best Dementia coffee shop in Paisley.
There are about 1,838 people living with Dementia in Paisley unlike Glasgow, there are 8,116 Dementia suffers so Paisley is a less populated area compared to Glasgow therefore, bringing potential customers will be less as there are similar café shops established.
There is much opportunity to build a community and doing this, it will same time increase the awareness of Dementia. These will make them feel loved and cared. As much as these community and awareness is created it will attract much customers which will increase profit.
There are a lot of Dementia café shops around. These will make competition to be tough, these café shops almost have the same target. All Café shops have target to create and build good community to increase their business strength. There is competition in price since most café shops want its product to look attractive. Because it is specifically tailored for one specific reason, it is less reaching targeted profit.
Mission and vision Statement of Recollect “is aimed at providing exceptional safe and friendly environment for those living with dementia, their carers, families and friends. Our aim is to become the best Dementia café shop in Paisley in the next 4 years and increase 10% of market share in the next two years.
Unique Selling Point
Recollect unique selling point will give dementia suffers place to escape
The Marketing Mix
Product is defined by Kotler et al (2008), as anything that can be offered to a market for attention, acquisition or use, or something that can satisfy a need or want.
A product may be a physical goods or a service
The product of Recollect is a type of services being offered to people who suffer Dementia, based on this, our product will be coffee and toasties.
With reference to figure 6 in the online survey, it shows that a total of 69 people prefers taking Dementia coffee in the morning whiles 17 prefer the evening. Therefore, much attention will be focused on the morning sale. The coffee trend will include:
Cakes (will be different every week)
Stovies served with chips
Chicken Curry with Fried Rice
Sweet & Sour Chicken
Soup of the day
John R. Commons (January 1929) defines price as the equity of goods given or received in exchanged of another for another good.
Susan Norgon (1994), As simple definition of price is money for which a thing is bought or sold.
Pricing is very important to the customer and moreover price is very important when it comes to the aspect of marketing mix .Recollect is focusing on charging low price to attract more customers, the survey inFigure 1 ofDementia coffee surveyshows of the 90 people who answered the questions, 67.78% which a total of 61 people is are employed and 32.22% which a total of is 29 are unemployed.
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Recollect will focus on competitive pricing strategy where we will focus on setting price the same as our competitors. In figure 4 of the survey, customers are more willing to pay £2 for a café. Most of our competitors normally charge £3 to £4 per cup of coffee.
It is very important to consider the promotion aspect of a business. (The economic times) defines promotion as the entire setoff activities which communicates the product, brand or service to the user. The idea is to make people aware, attract and introduce to buy the product in preference over others.
The business will chain up with stakeholders who are relevant and are focusing on Alzheimer disease, where we will highlight our product and services on awareness programs and festive seasons our brochures will be distributed out to all at events to attract potential customers. We will use social media platforms such Facebook, Twitter and Instagram to promote our business since electronic media helps best when it comes to promotion and word of mouth.
Positioning plays an important role in marketing mix. Place refers to the distribution channel used to get your product to your customers. Recollect will be supplying directly to the customers. It is a good way to deal with customers directly because it gives the opportunity to meet customers face to face therefore, recollect café shop is located at the high street of paisley, and very easy to locate. the surrounding makes it easy for customers and visitors to enter.0.2km to the Paisley Canal Station so there is easy access to transport. Figure 3 of Dementia coffee survey shows that the total number of people coming by transport is higher than those who will walk.
Recollect is located at a place where there are retail shops outlets and showrooms, this will help attract new customers.
Recollect will also have a website where products will be displayed and online order deal where customers can request for home service.
James Kerr( May 23, 2017), your people are your most important asset, they determine your ustomer experienece.
Employees in a company are very important when it omes to marketing therefore Recollect will treat all its staff carefully and makes sure they are provided with effective training, monitoring and all the important information they need to add up to be suessful. Their views will be taken into account and make sure they are always alert when the business progress. There will be a manegarial training for all responsible section.
Recollect has decided to offer every staff a room to grow, this will help the psychologically and make them feel part of the business. Its open up to clear behaviour and respect for each other and this will help to open another location elsewhere where any of them can manage.
Since the product we will offer will be for dementia suffers, Recollect will make sure that the coffee is healthy and safe for consumption therefore Recollect will buy supplies from food wholesale and catering food that offer the most suitable and healthy choices of food prefered by most. Suppliers who are always available to supply and proven to be free from defect which will not cause any mental, physical or emotional damage to our customers. Spacious place will be provided for free movement within the café.
Recollect café will be opened from Monday to Sunday at 6am to 9pm. Recollect will be fully invested in a shop parlour where there will be a relaxing environment where customers can come and relax.
Recollect will provide after sales service and collect feedbacks and customer complaints.
Brooms and Bitner( 1981 ) defined physical evidence as the environment in which the service is delivered and where the firm and customer interract, and any tangible component that facilitates perfomance or communication of the service.
Recollect will provide a safe and social environment where people can feel relaxed. Products such as cakes and other pastries will be diplayed for easy identification and remembrance.
Recollect will be painted with colourful interior designs and relaxing seats for family and individuals. This is important because the physical environment plays an important role. Coffee will be served in colourful mugs nad cups to help suffers always remember the experience they had
There will be suitable toilet facilities and wheel chairs basically for patients. Cleanliness will also be our main importance as to the benefits of hygiene and clean environment. Recollect staff will be trained on health, safety and hygiene and Dementia awareness. Popular Music will be played so people can sing along. Games such as dominos and puzzles will also be provided.
The Boston Matrix
Figure 3: BCG Matrix: Source: Pinterest. (2018).
With regards to Boston’s Consulting Groups Product Portfolio Matrix, Stars are product in high growth market with a relatively high share of that market. Cash cow are products with a high share of a slow growth market. Recollect will classified under Star products because it will be well accepted and will have a good opportunities and high competitive position where we will invest and focus on our Brand Image, Awareness, Convenience est. Whiles the business grows, we will then focus on the Cash Cow later but as at now, Recollect will be classified under Star Products
Porters forces Analysis
- Threat of new entrants
There are treats regarding to market entry involves high economies of scale with regards to coffee import, you don’t need any special knowledge or skills to operate either coffee machines, customer loyalty and high brand. Recollect will focus on how to innovate our product and making it unique
- Bargaining power of suppliers
Prices and coffee and beans are very high since the market is overflowing therefore with Recollect, we will buy our product from suppliers or wholesalers focusing on quality but less expensive.
- Bargaining power of buyers
Since the market is overcrowded with large competitors there are so many options when it comes to pricing where it is reduced to catch customers and high product varieties. Since Recollect is focusing a target market, prices will not be charged high or lower than our competitors, prices will be charged same as our competitors but with special added services making us stand out.
- Treats from substitutes
Competitors are selling same products such as coffee, beverages, smoothest, and taoties. Recollect will sell same but different cakes for every week, soup of the day and chicken with unique flavors.
- Competitive Rivalry
Competitors are selling the same products and are focused on to provide Dementia patients with a place to relax and have fun. Recollect is providing a place to escape.
The Political Environment: Coffee beans are products that are developed and exported from developing countries therefore there may be regulations regarding the importation, also political conflict involving change of government. Brexit vote has caused weaker exchange rate leading to high inflation which is affecting many businesses in UK.
Economic Environment: Customer do take coffee each day therefore demand for coffee is very high most especially early in the morning and the weather condition. but since inflation has gone very high customers spending has become very low.
Social Environment: Dementia disease affect the thinking and behavioral habit of suffers, they feel confused at times and feel happy sometimes too their eating habit may change since they will need a nutritious diet. They are provided with colorful bowls and cups, so they will remember it next time and they want foods that are easy to chew.
Technological Environment: We noticed that people now choose to order food from home because it’s not stressful. Many coffee shops now have websites where their products are displayed and customers an order from online where it will be delivered to their homes. Technology is changing the market.
Legal Environment: The government has placed several laws guiding the setup of coffee shop. There are so many treats to entry since the market is crowded. Currently there are no laws that states that you must undertake special training to open a café or coffee shop, there are laws regarding Hazard Analysis Critical Control Point (HACCPT) where is not obeyed your shop can be closed.
The Environment: Environmental factors are important with regards to waste management and pollution and the importance of recycling therefore Recollect will also focus on the good management of resources such as water and electricity. Our strategy will also focus on waste and recycling management with regards to paper, rubber, can and plastics. Our environment will be free from pollution and we will provide clean environment for our customers.
According to Woodruff (1997), in a competitive global economy, businesses continue to search for innovative ways to stay afloat, and to achieve and retain competitive advantage. Customers continue to become more sophisticated and require innovative approaches to reach out and satisfy such customers.
The target customers of Recollect are people who suffer from Alzheimer, their carers, family and friends and includes people of all age groups and sex, Customers who live in and around Paisley town. People who suffer from the disease are educated and employed but they turned to lose their jobs due to memory loss. Alzheimer patience often feels emotional therefore they need to have healthy and lively environment for them to feel loved and cared for. Recollect will open as early as 8am therefore families and carers will not worry themselves preparing breakfast and have options of ordering from home since we provide healthy foods in a diver’s ways.
Our target competitors sell the same type of products such as tea, coffee and cold beverages.
- They offer a lot of useful resources
- Offers support from people who suffer from Dementia, as well as family and friends
- They are specialized
- Only operate once a month
- Located in a busy area and people with Dementia could get disoriented
Cardosi’s Expresso Bar
- Good staff attitude
- Different variety of coffee and other foods to choose from
- Customer trust
- Keeps long in replying customer complaints and request
- Small business area
Our indirect competition would be any café shop or stands that sells coffee. Bakery shops that sells bread and toasties and also all super markets in and around Paisley that sells coffee and other bakes, Restaurants will also be our indirect competitor since almost all of them sell soups, chicken and fried rice since consumers will have enough option to choose from which particular place he or she feels comfortable.
Word of Mouth
Word of mouth encouraging recommendation after product have been able to satisfy.
We will network with stakeholders who are relevant who are specializing in Alzheimer disease, where we will highlight our products, packages and other services on occasions and festive seasons.
£ 0 to £15. cost of fliers
We will create a Facebook page, twitter and Instagram where our products and prices will be displayed, and customers can get in touch with us anytime they want.
Costing and Pricing
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- Lewis, M. (1989). Mintel Retail Conference report. Retail and Distribution Management, 17(4), pp.36-38.
- The Marketing Mix. (2018). Marketing Mix Definition – 4Ps & 7Ps of the Marketing Mix. [online] Available at: http://marketingmix.co.uk/ [Accessed 20 Nov. 2018].
- Oxford College of Marketing Blog. (2018). The Extended Marketing Mix: Physical Evidence | Oxford College of Marketing Blog. [online] Available at: https://blog.oxfordcollegeofmarketing.com/2013/08/09/marketing-mix-physical-evidence-cim-content/ [Accessed 20 Nov. 2018].
- Southdevonandtorbayccg.nhs.uk. (2018). [online] Available at: http://www.southdevonandtorbayccg.nhs.uk/your-health/getting-support/Documents/getting-support-memory-cafes-setting-up.pdf [Accessed 20 Nov. 2018].
- Burns, P. (2008). Corporate entrepreneurship. Basingstoke: Palgrave Macmillan.
- Newstatesman.com. (2018). Importing and Exporting in a post-Brexit world. [online] Available at: https://www.newstatesman.com/spotlight/2018/05/importing-and-exporting-post-brexit-world [Accessed 6 Dec. 2018].
- Startups.co.uk: Starting a business advice and business ideas. (2018). How to start a café or coffee shop. [online] Available at: https://startups.co.uk/how-to-start-a-cafe-or-coffee-shop/3/ [Accessed 6 Dec. 2018].
- Pinterest. (2018). Pinterest UK (PinterestUK). [online] Available at: https://www.pinterest.co.uk/PinterestUK/ [Accessed 6 Dec. 2018].
- Friesner, V. (2018). Boston Matrix. [online] Marketingteacher.com. Available at: http://www.marketingteacher.com/boston-matrix/ [Accessed 6 Dec. 2018].
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