Social networking Although obviously related to online presence, online social networking presents such a compelling opportunity that it should be discussed separately. In the interest of keeping costs to a minimum and also developing a loyal following, CoffeeVille will encourage customers to interact with CoffeeVille and other potential customers to receive loyalty rewards. As marketing research indicates, consumers targeted through online social media are more likely to identify products and services with positive qualities they attribute to electronic social media such as trustworthiness, personalisation, responsiven ess, immediacy, and ‘coolness’. Product and service CoffeeVille will continue to offer the finest coffee beans, ground fresh by CoffeeVille, gourmet focaccias, cakes and pastries fresh daily. Despite the temptation to lower cost through sourcing lower-quality ingredients, CoffeeVille must always ensure the highest possible quality remain consistent with our brand. Word of mouth on slipping quality or service standards may severely undermine the marketing strategy. People A key aspect of Coffeeville’s marketing strategy is its people. CoffeeVille will continue to train its staff so they both offer the service expected by the market and become effective good will ambassadors for CoffeeVille.

Product Development As market research discovers unmet customer needs, CoffeeVille will continue to offer new and innovative offerings to position the company as responsive to customer requirements. Product sales are monitored to gauge market response to menu items. Market Research Access to ongoing market research will be achieved through regular research activities carried out by Action Marketing and CoffeeVille. See the implementation milestones section for specific research activities. Rufus Belcastran will manage market and marketing research and liaise with Action Marketing. Customer feedback and suggestions are readily sought for improvement. Potential Business Problem(s)/Issue(s) Issues: Strong market potentia A significant percentage of the target market still not visiting CoffeeVille on a daily basis. Expansion and franchising Problems: Due to the global financial problems, customers spend less than last year. Customers are also buying less food over summer and in the lead up to Christmas. • Utility expenses have risen over the last 18 months • Wages have gone up 15% for trained and experienced baristas • Rents rise between 10 to 18% in the last 12months. • Coffee bean price rose rapidly. • Red meat prices increase up to 20% • Number of inactive and cancelled member increased 15% which is too many. • Foot traffic of all store drop from 5-15%, except store 4 • No matter food, beverage and external catering sales are decrease from 10-17% • 38% customers said they consider eaten in Coffeeville is a treat. • 58% customers purchased coffee from CoffeeVille said it wasn’t their primary source. The above problems can be divided into 2 categories: Rise in expenses such as Utility expenses, Wages, Rents, Coffee bean & red meat Number of customers drop because of inactive and cancelled member, foot traffic, Expensive and priority.