West Oak Coffee Bar

Our house. Your home.

Team members:

Anh Duong
Devan Gerlach
Ben Knapp
Ashley Padilla
Brittney Spence

Chu Ying Wang

Table of Contents

1.

Introduction

9.

2.

Mission

10. Actions

3.

Reference Market

11. Budget

4.

Six Levels of Analysis

12. Pricing Strategy

5.

Solution Life Cycle

13. Timeline

6.

SWOT

14. Conclusion

7.

Brand Identity Model

15. Appendix

8.

Eight Steps of Segmentation 16. References

Positioning

Introduction

Since the citys incorporation in 1866,

the Denton Square has become the heart
and soul of Denton, Texas. Known for its
historical architecture and its welcoming
small-town atmosphere, the square is home
to many of Dentons cultural landmarks
including Beth Maries Old Fashioned Ice
Cream, Lone Star Attitude (LSA) Burger,
Recycled Books (located in the old Opera
House), and the beautiful Denton Court
House.
The squares newest family member,
West Oak Coffee Bar, is shooting to open its
doors in late November. Nestled between
McBrides Music and Pawn Shop and Wine
^2, West Oak Coffee Bar aims to transport
its patrons back to the early 1900s through
its authentic architectural restoration,
interior design, and staff. Every visit will be a
step backwards in time, while providing a
delectable assortment of food and beverages
for all to enjoy.
Owners, Matt and Clay, have asked us
to come up with a branding strategy to help
market their up and coming business. This
task has definitely been a daunting one and

presented several challenges along the way.

One major challenge that we have faced as a
group is learning to view West Oak of what
business the industry is in, instead of just
viewing in terms of the products it sells. It
has also been difficult to try and research
information for the company with it not
having been open yet and therefore not
having official clients, sales data, financial
information, etc. With lack of this
knowledge, we have had to go ahead and
make several assumptions in terms of
potential
clients,
activity
proposals,
positioning proposals, etc. However, as
marketing students, we have learned a lot of
essential skills such as developing a reference
market, SWOT analysis, identifying and
constructing external and internal research,
and learning how to segment and position a
target market.

Introduction cont.

With this report, we are helping Matt

and Clay reach their goal of becoming the
jewel of the square. The following steps are
the procedures we took to create a brand
that is know in Denton. The first step will
help West Oak Coffee Bar know what
business they're in through the reference
market. We have included a new and revised
mission statement. We also went through
the six levels of analysis, hitting on the
points of intra organizational environment,
task environment, the markets, competitors,
publics and finally macro-environment. The

next step in our report was the solution life

cycle that defines in what stage our solution
is in. We have created a SWOT analysis to
determine
our
strengths,
weakness,
opportunities and threats.
We also
determined our market segmentation in
which what markets we will target. The last
and final stage of our report was to position
our business. Coming up with positioning
proposals and guiding what we believe
people should think of when they hear
West Oak Coffee Bar.

Mission

Original: West Oak Coffee Bar

moves out of gratitude for coffee,
people, and culture.
The phrases moves out and out of
gratitude have a negative connotation. The
move from moves out can be thought
of in a verb form, such as leaving a location
instead of an action based on emotion. The
sentence structure is grammatically weak and
slightly confusing. The statement is basic
and general, which could make it
unmemorable. This mission statement does
not capture the essence of the brand nor
explains how it can provide for the
consumers. The second half of the sentence
is comprised of a list. Lists can be perceived
as boring and chore-like. The company lists
coffee, people, and culture, but does not
elaborate on what they stand for. Also, the
company has other products and services
besides coffee, such as tea and desserts so
its best not to limit their statement to
include only one product.

New: West Oak Coffee Bar offers

our community an authentic
neighborhood experience with quality
and gratitude.
The new mission statement is better
for the company brand because it includes a
solution and actions to support it. It states
what West Oak Coffee can offer consumers
and what they stand for. The offer gives
consumers a choice of options without
being pushy or weak. The authentic
neighborhood experience stems from the
vintage, rustic atmosphere of the company
brand and historical location where the
building stands. The quality stands for the
level of service and products that West Oak
will deliver. The gratitude is the love and
appreciation the company has for the
community and the people. The statement
feels warm and inviting without being too
complicated or long to remember.

Reference Market
The reference market distinguishes
the part of the total market that offers the
best advantages to the firm. The elements
explain what need is being satisfied, who the
satisfied consumer group is, and how else
that need can be satisfied.
We believe West Oak Coffee Bar is in
the business of creating an authentic
neighborhood experience. They are
business to consumer, and target hipsters
based on their rustic 1890s environment,

vegan menu items, and overall feel of the

square. Other ways we believe an authentic
neighborhood experience could be reached
is through block parties, drive-in movies,
coffee shops, bars, festivals, and community
theater.

Six Levels of Analysis

1.
2.
3.
4.
5.
6.

Intra-Organizational Environment
Task Environment
Markets
Competitors
Publics
Macro-environment

1. Intra-Organizational
Environment
The
Intra-Organizational
Environment is the first step in the External
and Internal Research Analysis. This external
and
internal
analysis
allows
for
understanding
the
consumer,
the
competition, and the brand itself. The IntraOrganizational Environment allows us to
analyze
the
internal
structure
of
management within the business.
In order to get the information for
the Intra-Organizational we e-mailed Clay
Rozell so he could tell us what the internal
organization looked like for West Oak
Coffee Bar. At the top of chain are the
owners, Matt and Clay. Below them is the
General Manager who is Chris Volpe.
Underneath Chris is Chef, Phillip Bleeker.
Bleeker also has his own kitchen staff that
work underneath him specifically. After
Phillip come the shift leads and then the
baristas whose positions have yet to be filled.
The Companys Clients and Activitys
Portfolio is also included in this stage of the
analysis. This portfolio is a joint analysis of
the clients and products or services that
guide the companys activities. It also

searches for an equilibrium between

potential and profitability. Since West Oak
Coffee Bar has not opened yet, they do not
have official clients. However, because Clay
and Matt have made Denton their home, it
can be assumed that their local Denton
friends and hardcore Dentonites will be
sure to make an appearance once West Oak
Coffee Bar opens. The most important
products West Oak Coffee Bar will provide
will be coffee, beer, the chocolate milk on
tap, and their signature pies. The coffee and
beer are even mentioned in the name of
their business and are featured items. The
chocolate milk on tap is important because it
is a very unique product and will attract
customers. As for their pies, Oak Coffee
Bar can use their specialty pies to market
a place they can come to enjoy delicious
desserts.

2. Task Environment

The task environment is a compilation

of several actors affecting your business.
The main actors are marketing channels,
product suppliers, and service suppliers. The
company is already utilizing prime marketing
channels by setting up a website, Facebook,
Instagram, and Twitter. The business has a
fair amount of followers and buzz surround
the opening of the store. Several local
newspapers and bloggers have already
publicized statements for the grand opening.
Once the business open, more social press
will follow on social rating sites such as Yelp
and Google Plus.

Product suppliers are an instrumental

tool to the business in order to meet store
and consumer demands. Smart logistical
decisions can save the company cost and
time. Purchasing coffee beans and tea from
a single wholesaler, such as Intelligentsia, is a
great example of how to save money and
time. An added bonus is that Intelligentsias
ideals compliment West Oaks brand. The
decision to buy locally will also cut down
transportation and time cost. Service

suppliers should be condense and bundled

to save on cost to free up cash for other
endeavors.

3. Markets

Each level of the markets starting

with total population, breaks down the
population to ultimately reach our target
market population that West Oak Coffee Bar
will aim to reach. Our total population is the
entire Texas population. Our potential
population is the percentage that actually
consumes coffee out of our total
population. The available population are
those that consume coffee and live in the
DFW metroplex, and the target population
is our available population multiplied by the
percentage the target market holds. The
target market is hipsters because of the
1890s environment and clothing at West
Oak Coffee Bar, the coffee, and the vegan
menu items. Our statistical data shows:

Our Total population is everyone in

Texas, which equals 26,448,193

Our potential population is everyone in

Texas that consumes coffee (54%),
which equals 14,282,024

Our available population is anyone in

the DFW metroplex that consumes
coffee, which equals 3,618,535

We decided our target market would

be hipsters due to the 1890s environment,
selective menu, and overall vibe of the
square. The hipster population in the DFW
metroplex accounts for 42% of the DFW
population, therefore, our target population
is 1,519,785.

4. Competitors
There are 3 types of competitors that
West Oak Coffee Bar has to compete with in
order to become a thriving business. These
are desire competitors, product form
competitors, and brand competitors.
The first competitor is desire
competitor, which is defined as other
immediate technologies the consumer might
want to satisfy his or her need.
West Oak Coffee Bars desire
competitors are bars located on the square
and throughout Denton, such as East Side,
Oak Street Drafthouse, Hooligans, and The
Loophole. These bars give an authentic
neighborhood experience that we are
looking to give to our customers. Another
desire competitor of West Oak Coffee Bar is
Beth Maries ice cream shop. Beth Marie's
has been a staple on the square for many
years and is a very well-known place to go
and hang out.
Another type of desire competitor for
West Oak Coffee Bar is LSA burger. Though
LSA burger has been located on the square
for only a year, it has become a top spot for
people on a Friday or Saturday night looking
for a place to go on the square. LSA satisfies

the need for an authentic neighborhood

experience by having outstanding food with
a local community feeling. With the mural
on the wall of the famous people around the
table for the last supper, you feel like theyre
having dinner with you. By providing local
bands to play, they give the community and
local artists opportunities to shine.
Product form competitors are the
third type of competitor that we have to
face. They are competitors that offer other
product forms that can satisfy the buyers
desire. These competitors would be
Starbucks, Dunkin Donuts, McDonalds and
any other place that serves coffee through a
drive thru. Instead of having to go inside to
get a cup of coffee or quick meal, they can
go through the drive thru.
The bulk of our competitors are our
brand competitors. Brand Competitors are
other brands that can satisfy the same desire
in a similar way and with the same type of
product. These competitors would be local
coffee shops that will take customers out of
our shop and into theirs while delivering a
similar product. The following section
contains a description of each competitor:

Competitors
Big Mikes
This coffee joint is the place to go if
you love college students or drunk people.
Big Mikes serves good coffee with a cool
grungy vibe to the coffee house. Big Mikes
also has an event room that always has
something going on from dance classes to
poetry readings and study groups. Big Mikes
is made up of a very diverse crowd. Their
price for a cup of coffee is a $1.28. Big
Mikes also serves food and organic bagels.
The tea they serve is locally crafted. Big
Mikes is used for both studying and a social
atmosphere but does not have live music.
(Stine)

Seven Mile Cafe and Coffee

Seven Miles mission is with two cafe's
and a coffee shop, our goal is to create the
best food, drinks, and coffee you've had. We
strive to provide excellent service and we're
constantly trying new things. Seven mile is
known for its great food but with limited
seating, you will have to wait. Most say it is
worth the wait on Yelp.com. A cup of coffee
will cost you about two dollars and eighty
five cents.

Jupiter House
If youve ever asked anyone how their
first experience at Jupiter House was, 98%
of everyone whos socially conscious will tell
you they felt like an insecure Tyra Banks on
the runway. The second you walk in you get
stared at. Why? Because the bar is at the
opposite end of the front doors, and you
have to walk by every zombie novel writer,
small business owner, and city councilman
to get there. But its worth the walk, because
JuHo does drinks and coffee house vibes
well. They win for awesome customer
service and authentically caring for the
Denton Community. Their bathrooms dont
have one of those tacky For customers
only signs on it. (Stine) A cup of coffee at
Jupiter house will cost you $1.75. They also
serve tea and have smoothies and
milkshakes. They do have bring-your-owncup discounts and have muffins, breads and
bagels. Jupiter House is made for studying
with tables and outlets galore. Lastly, Jupiter
House has live music every Saturday night.

Competitors
Banter

Zera

This is the coffee joint to hit up if

you need a place to design the blog you
hope will get famous for and land you a
publishing contract. Especially if you show
up midday, its quiet and a good place for
natural light inspiration. Every good writer
needs some coffee followed up by some
good booze for, uh, creativities sake, and
Banter can offer you both. If you think
some good tunes would further your writing,
they also have live music consistently every
Thursday-Saturday night. If you hate music,
Id recommend you leave Denton
immediately. (Stine) Coffee here will cost
you a dollar only and tea will cost you a
$1.75. Banter does serve food all day with
breakfast food going all day as well. Banter is
a place to go study, it is a quiet atmosphere
with students and hipsters. They do offer
live music and poetry readings. One thing to
know about banter is that they do not have
decaf coffee. They are more about beer,
wine and food instead of coffee, but its not
a bad place to grab a quick bite and study.
(Best)

This isnt a knock on Zeras at all. Its

just that they play Christian music so you
dont have to purchase any unwanted Amy
Grant albums to show off to your lady later
at your apartment. And when you over hear
other peoples conversations at Zeras, you
might hear things like this, Im in five
different bible studies, but I really feel like
God is stretching me to be in six. Their
cozy living room meets rustic comfort
house will make those college-kid homesick
blues fade fast. What to Order: By far, The
Mexican Hot Chocolate is where its at. You
dont need to order coffee every time you go
to a coffee shop. (Stine) Zera serves coffee
as well as tea and smoothies. As for food,
they serve breakfast, lunch and desserts.

5. Publics

The fifth level of analysis is the

Publics sector. Some of the categories it
includes are the financial, governmental,
local, and media involvement in the
company. In West Oak Coffee Bars case, the
financial aspect includes the primary
business partners Matt Fisher and Clay
Rozell, and their silent investment partner
that resides in Houston. Although financially
involved, he plays no active role in decision
making or future operations of the
company. While Matt is the majority
stakeholder in the company, he and Clay
make most of the business decisions
together.
The Governmental aspect involves all
of the regulations and requirements for
running the business. It includes things like
the TABC certification (which allows them
to provide and sell alcohol), TDHS (which
deals with safety and sanitation in the
kitchen), city planning/zoning commissions,
Health and Fire Marshall regulations, and
ADA (which concerns building/space
requirements).
The local aspect includes all of the

business West Oak Coffee Bar does with

local ingredient providers, musicians, and
artists. While the building has been under
construction, West Oak has recruited local
artists to decorate their storefront to keep
the building looking aesthetically pleasing
during the renovations. After they open, they
plan on bringing in local artists for acoustic
sets to give the atmosphere more of a local
community feel. When we spoke with Clay,
he said they still have yet to determine who
their local ingredient providers would be and
needed to meet with local farmers.
West Oak Coffee Bar has already
garnered extensive attention through social
media and local news sources since its
inception. Theyve created a presence on
Twitter,
Facebook,
and
Instagram.
Dentonites are very excited to see what West
Oak Coffee Bar is going to bring to the
square.

Macro-environment

Political-legal
In Texas, business entity should pay for federal corporate income tax instead of
corporate income tax at the state level which makes it a favorable location for a start-up
business. West Oak Coffee Bar will probably fall under the category of small business in which
$0.00 state corporate income tax rate is applied with the earnings of $500, 000 a year. Federal
corporate income tax brackets have been attached [appendix 1] for further reference.

Sources: (Bereau of Labor Statistics, 2014)

Macro-environment

Economic
The unemployment rate in Texas as of
September 2014 is 5.2% which is 9.09%
lower than the previous period. This
indicates that the economic environment in
Texas has been improved in which
purchasing power of the whole population
increases. Median household income of
Texas as of 2013 is $51,704 which is $546
lower than the median US household
income (Texas State Household Income,
2014). Apart from the improvement in
purchasing power, the fall of trade barriers
between countries can have impact on the
business environment of West Oak Coffee
Bar. The international trade factors might

open up different opportunities for West

Oak Coffee Bar yet expose it to a vulnerable
position if it depends so much on the
others.

Macro-environment

Social-Cultural
Millennials, which includes business
professional, college students, etc. who are in
the age bracket of 18-34, are the trendsetters
in the social-cultural environment. Their
consumption and buying behavior is
different from baby boomers and their needs
and wants should be taken into
consideration as they have become the
largest consumer demographic and they are
the driver of changes in current business
environment. Extensive research has been
done and it has been discovered that the
beverage market has been split into niches.
Two dominant subcategories have emerged
which are drinks that are, or perceived to be
healthy and drinks that are, or perceived to
have superior quality (QSR, 2014).
Apart from that, customers demand
on coffee has changed throughout the
period as the coffee market is now in the

maturity stage. Convenience, quality,

premium or quality taste, and both at-home
or out-of-home coffee is what consumers
are looking for. The willingness to pay a
premium for those characteristics is high
(Rabobank, 2013).
The consumption patterns of
Millennials is different from the baby
boomers and they are the main driver of the
upcoming food and beverage consumption
trends. Millennials are more willing to spend
their money on luxury food, looking for
unique
experiences,
create
sharable
experiences with friends and are more health
conscious on what they consumed. They
prefer to consume something that they
perceived as healthy as the health awareness
has increased among this segment.

Macro-environment

Environment
Emerging markets such as Brazil,
China and India are on the rise in the coffee
market which drives the demand of the
Arabica coffee (SCAA, 2012). The rise of
demand in emerging market, which is
expected to reach 50% of global coffee
consumption by 2020 (Rabobank, 2013),
drives the price up and this situation is
further exacerbated with the thin harvest of
Arabica in Brazil due to drought. Experts
predicted that Arabica coffee will be the
commodity on the rise in price in the near
future (Wexler, 2014). The increased cost of
ingredients, i.e. beans or dairy is one of the
environment factors that we identified for
SWOT.
Some other environment factors
which might impact the business
environment of West Oak will be the food
allergy issues in USA in which nearly 15

million of people have food allergies, with

an estimated 9 million of adults and 6
million of children have food allergy.
Another consumption behavior that can be
classified as an environment factor is the
development of sweet tooth, the addition
towards coffee as well as the trend of people
skipping breakfast due to lack of time.
These three environment macro factors pose
different opportunities and threats for West
Oak Coffee Bar and will be further discussed
in the next session.

Macro-environment

Technological
By introducing the Apple pay in October,
Apple has changed the structure of mobile
paying. It has signed up the six biggest card
issuers, accounting for roughly 83% of credit
card transactions. This technology has been out
in the market since 2011 in which Google Inc.
introduced Google Wallet which was included in
the smart phones that ran the Android operating
system, yet it did not gain much traction
(Wakabayashi & Bensinger, 2014). Consumers
skeptical attitude towards the security issues
might slow down the adoption rate of mobile
payment, however it is believed that Apple will
accelerate the mobile payment adoption in the
near future.

Solution Life Cycle

In order to determine what stage of the

Solution Life Cycle West Oak Coffee Bar is in, we
analyzed what stages all of the hows of our
reference market were in. These include: festivals,
block parties, coffee shops, drive-in movie
theaters, bars, and community theatre. The next
section contains summaries of the data we found
for each activity and the reasoning behind their
position within the solution life cycle.

Solution Life Cycle

Festivals

Block Parties

A festival, as defined by google, is an

organized series of concerts, plays, or
movies, typically one held annually in the
same place. Festivals have been a popular
way for people to gather and celebrate the
things they enjoy for centuries. Attendance
at these festivals has been holding steady
over the past decade, leading us to believe
that it is in the Maturity stage of the solution
life cycle. A study done in the UK
determined that while the age distribution
of festival goers was relatively even
throughout the age groups, the most
prominent group of attendees (though only
ahead by 1%) were 51-60 year olds
[appendix 2].

Block parties are social gatherings

among individuals living in the same
neighborhood or community to build
friendships, meet neighbors, and have fun.
Food is served, games are played, and
relationships are developed while following
certain city regulations. Barricades are
sometimes set up to block off the streets
and those streets that are not included in the
neighborhood. Neighborhood block parties
typically do not have over 100 people. As the
number of attendees has not increased and
the number of block parties held has stayed
constant, we believe they are in the maturity
stage of the solution life cycle.

Solution Life Cycle

Coffee Shops
The coffee and snack shop industry is
categorized in the slow growth phase, as the
technology is widespread which requires the
player to have distinctive competencies to
compete in the market. The growth rate is
stagnated with projected growth rate around
2.7% annually. Apart from that, there are
already established competitors in this
industry with Starbucks as the biggest player.
The target segment will be the second
majority as the main objective is to maximize
the market share.
The number of establishments in U.S.
coffee and snack shops industry is
forecasted to grow by 22% from 45,360 in
2006 to 55,246 in 2016. The number of
enterprises is forecasted to increase by 23%
from 33,908 in year 2006 to 41, 779 in year
2016. The revenue of the coffee and snack
shops industry was forecasted to reach 32.46

billion U.S. dollars by 2016. Sales of coffee

are 83.3% of U.S. total hot beverage
consumption. Consumption of coffee is
expected to increase through 2015 at the
annual rate of 2.7%. Innovations in
premium coffee products say to have
contributed to the growth despite coffees
mature product position. Coffee achieves the
highest consumption rate within hot
beverage category with the forecasted annual
growth rate of 2.7% through 2015 thanks to
the innovations in premium coffee products.

Solution Life Cycle

Drive-In Movie Theaters
Drive-in movies peaked in the 1950s.
More people attended drive-ins than regular
movie theatres. By 1958 there were 4,063
drive-in theaters in the United States. The
industry declined precipitously throughout
the 1970s and 1980s. However, between
1978 and 1988, more than 1,000 facilities
were closed. Numbers continued to decline
in the 1990s, and by the turn of the
millennium, 447 sites operated 684 screens.
According to the UDITOA, by the end of
2011, these figures had dropped to 606
screens at 366 drive-in theater locations
(Drive-In)
At the end of the first decade of the
2000s, drive-ins were holding steady, but
were not expected to make a significant
comeback in the American marketplace
primarily because the cost of real estate is
prohibitive relative to the income a drive-in

generates. Approximately 75% of drive-ins

were mom-and-pop organizations; because
drive-ins do not generate large amounts of
money, large corporations, such as AMC, do
not invest in outdoor theaters. (Drive-In)
With this information we can conclude that
drive in movies are in the decline stage of
the industry life cycle.

Solution Life Cycle

Bars
We can determine that bars fall under
the maturity stage of the solution life cycle
because its environmental factors match
those of the maturity stage. Demand
cannot be expanded is an environmental
factor of the maturity phase and bars
represent this factor because their revenue
growth has been slow and there is stagnant
growth in per capita alcohol consumption.
For the replacement demand of durable
goods factor, information gathered in
regards to bars have shown that there are
consumer-preferences towards at home
consumption which replaces the need to go
out to a bar. The maturity stage is also
characterized by hyper-segmented markets.
The bars market is vastly diverse and
represented through clubbers, dive bars, beer
snobs, and connoisseurs. Bars also represent
an oligopolistic market structure because
there are no companies with a dominant

market share in the market.

As for the maturity stage objectives,
the bars market matches these objectives as
well. The maturity stage has the objective of
becoming a specialist. People in the bars
market have the opportunity to learn and
become specialists about different types of
alcohol such as wine, craft beer, and liquor.
In regards to marketing programs, the
maturity stage uses product differentiation
which is what the bars market uses. Bars can
be in the forms of casinos, restaurants and
night clubs.
All of these environmental factors,
objectives, and marketing programs for the
bars market match with those of the
maturity stage and we can therefore
conclude that bars are in the maturity stage
of the solution life cycle.

Solution Life Cycle

Community Theater

Conclusion:

Texas is number 10 of the top 10

States ranked by growth in number of
nonprofit theaters from 1990- 2005. While
the number of theaters has grown in the
past years, the audience attendee level has
not followed the same trend. Preliminary
survey results show a decline in the number
and percentage of non-musical theater
attendees from 1992 to 2008. (All
Americas A Stage) While the theaters have
expanded, the actual attendance and
business for the industry has declined and
remained flat. Due to the fact that the
attendance level has remained at a constant
and not grown, the community theatre
resides in the maturity stage of the Solution
Life Cycle.

After concluding what stage of the

solution cycle each of these markets were in,
we assigned numerical values to each of the
stages of the solution life cycle. Introduction
was represented by a #1, and so on through
residuality which was a #7. After assigning
our markets these numbers, we added them
up and took the average of all 6 numbers
and got the #4. The #4 was assigned to
shake-out so therefore, the West Oak Coffee
Bar is in the Shake-Out Phase.

SWOT

The SWOT is a strategic analysis of

the strengths, weaknesses, opportunities, and
threats associated with a company. After
gathering all of the data points, we then
organized them based on environmental
factors to determine the appropriate actions
to take in order to counteract the threats and
weaknesses. Our strategic SWOT analysis of
West Oak Coffee Bar led us to four basic
actions that could be taken: expanded
product
offering,
brand
promotion/awareness, a takeaway option,
and product education.
Expanded product offering was a
common theme of our SWOT analysis. By
offering other types of coffee and flavored
coffee, you can attract different types of
customers. We feel that switching up flavors
and offering special flavors for different
times of the year can create buzz about the
business.
Brand promotion and awareness was
the next theme that we came up with. There
needs to be some traditional marketing to
gain customer traffic. By creating a rewards

program, it can give incentive for people to

come back. Also, using social media to take
pictures of products and create buzz about
new specials and live music will drive
customers to the store.
The next theme that we came up with
from the SWOT analysis is a takeaway
option or carry out. If customers can get a
quick and easy sandwich or pastry with their
coffee or drink, it can drive up sales and
create an alternative way to satisfy the need
of our customers.
The last theme was to create product
education. We need to educate our customer
on why our products are superior to our
competitors. We use locally grown products
and use Intelligensia coffee. Letting our
customers know the healthy products or
where the product comes from can really
help build sales. Some examples are what
farms or where the coffee bean is from.

Brand Identity
Model
The Brand Identity Model sums up
what you want your business to be known
for and what others perceive your business
to be. This model starts with the brand
essence. Our brand essence is an authentic
neighborhood experience. An authentic
neighborhood experience is what our brand
is in the business of.
The next step is the core identity, or
what values everyone sees in the brand. Our
core values are intimate, a community
experience, classic setting, and social
gathering. We chose intimate because of the
close-knit experience West Oak Coffee Bar
wants for its customers. We want customers
to feel like they belong and are welcome in
to our restaurant. The next core value is
community experience. Being a part of the
Denton Square has a lot of history and
uniqueness that comes with it. With the
classic theme of the restaurant, we want to
show that we are a part of the community
and involved with the city of Denton. The
next core value is classical setting. This goes
along with everything from the attire that
our baristas will wear, to the inside of the
building and its framework. The last core

value is social gathering. With our live music,

art and featured drinks like beer and wine,
we want our restaurant to be a place to meet
and socialize with other people.
Our extended identity is unique,
family friendly, and a fun atmosphere to
visit. The extended identity is what values
some people see in the brand but are not
shared by everyone. The first extended
identity is uniqueness. Some of our
customers see West Oak Coffee Bar as a
place that offers a unique experience with all
the different items that we sell. Another
extended identity is family experience. With
the live music and chocolate milk on tap we
believe that some of our customers see our
restaurant as a place to bring the kids and
enjoy the Denton Square. The last extended
identity is a hipster vibe. Denton is already
mainly a hipster community with its local
music scene. By having live music and a
classical atmosphere, some of our customers
see West Oak Coffee Bar as a hipster styled
place.

Eight Steps of Segmentation

We must strategically segment the potential
clients list to be able to find our target
market. To do this, it is important to know
customer variation levels of what they think
and feel for a brand. To figure out our
consumer's perception, we research key
factors and place them into two groups;
macro and micro segmentation by a process
of eight steps.
1. The reference market, which we
established earlier in our research clarified
the who, what, and how of a solution of our
brand. This establishes: what business our
brand is and who our competitors and
customers are as well as what
our consumers needs are.

2. Elect a macro-segment to analyze. We do

this by choosing one who, what, and
how from the reference market that offers
a large market potential. The who and
what of our reference market are
consumers and an authentic neighborhood
experience. The how we chose to
concentrate on is coffee shops. We believe it
is the closest and biggest competitor we

should compare to.

3. We identified variables that answer the
question, why a consumer is interested in
our business. This allows us to identify
different
consumers
motivation
in
segmented groups. The variables are
separated into three different categories:
psychographic: musicians, workers, artists,
green activists, healthy living, foodies
demographic: families, students, couples,
age searched benefits: location, quality, time
saving, pleasant, atmospheric, relations
4. We detected two distinct variables that
have the highest consumer interest in the
brand, within our market. This helps us
generate a competitive advantage.
Level of interest in a comfortable
social setting (which relates to atmospherics)
Level of interest in community
connections (which relates to relations)
5. Set measurement parameters to
objectively measure and compare levels of
interest between potential segments.

Eight Steps of Segmentation

cont.
Level of interest in a comfortable
social setting: average time spent out in each
social setting
Level of interest in community
connections: number of times a week a
person attends a local community event
6. We split the variables market to find
micro-segments of people that fit into our
brand.

7. We decided upon families, hipsters, and

business professionals as our target markets.
These groups best fit the solution of our
brand along with their motivations.

Business Professionals are constantly

on the go and need quality refreshments
within close distance to their establishments.
They habitually seek sustenance three times
a day and need a pleasant space to combat
their hectic schedules.
Hipsters like to socialize publicly and
frequently in trendy unique locals for a
lengthy amount of time.
Families are highly invested in local
community and want a relaxing place to
spend quality time together.
8. To capture the target markets attention to
our brand, we chose a differentiated strategy
to maximize potential growth. Research
lands our business in the shake-out phase
nearing maturity. Therefore each target
segment will need a different distinctive
positioning plan that caters to their specific
needs.

Positioning

1. Identify Target Segments

Business Professionals

Families

Hipsters

2. Identify Positioning Variables

This includes both dimensions and attributes. Dimensions of perception are subjective
variables that provide the basis of which objects are perceived differently. Attributes of
perception are tangible or intangible objective characteristics through which the dimensions of
perception are shaped.

Business Professionals: Dimension= on-the-go Attribute =speed.

Families: Dimension= leisure Attribute= location on the square

Hipsters: Dimension= social Attribute= trendy atmosphere

3.

Identify Target
Segments

Business Professionals
For the positioning of the Business Professional
segment, each competitor is placed on the graph
according to its level of on-the-go and
speed.
Big Mikes: is the farthest along the on-the-go
and speed scale because we believe them to be
a coffee shop focused on quick coffee service
and targets those people who are looking to just
make it in and out.
West Oak Coffee Bar: is placed right under Big
Mikes because we believe this business will do
well in regards to providing rapid service and
being able to cater to those who are on the run.
Seven Mile Caf: is placed right where on-thego and speedy intersect because their actual
coffee bar does provide fast coffee service,
however, they also have a dine-in section to sit
and order a meal.
Jupiter House: we think they provide the same
on-the-go capabilities as Seven Mile Caf,
however, they have seemed to provide slower
service so they are lower on the speed
spectrum.

Banter: is lower on the on-the-go and speed

spectrum because they provide more of a stay
and hang out environment with slower service.
Zera: is the lowest for both on-the-go: and
speed because they also offer a Hookah lounge
and are not looking to provide fast or on-thego services, but a place to relax and spend a
good amount of time.

4. Positioning Proposal
The positioning proposal is the fourth step of the process and is how you want a particular a
target or public to perceive your company, product, or brand in terms of its competitiveness.
Positioning Proposal for Business Professionals: West Oak Coffee Bar provides an authentic
neighborhood experience so you can grab a quick, quality cup of coffee.

3.

Identify Target Segments

Families

For the positioning of the Families segment, each

competitor is placed on the graph according to its
levels of leisure and location on the square.
West Oak: is placed the farthest among both
spectrums because we believe it will offer a
leisurely environment to come relax in and is also
located right on the square.
Jupiter House: is placed directly below West Oak
because it too is located directly on the square,
however, we dont believe they offer as much of a
leisurely environment as much as West Oak will.
Zera: is behind West Oak on the location on the
square spectrum. Zera is also a hookah lounge
and offers a strong leisure environment, however,
they are located just off the square which puts
them behind West Oak and Jupiter House in
terms of location on the square.

Banter: is also located just off the square,

however, their environment is not as leisurely as
Zeras so it falls a little more below in that
category.

Seven Mile Cafe: offers a strong leisure

environment like Zera, but it is not located near
the square so it fell much farther behind in that
attribute.
Big Mikes: does not offer a strong type of leisure
environment at all so it fell way below for that
attribute and also fell behind in terms of location
near the square, because it is actually located
closer towards the UNT campus.

4. Positioning Proposal
Positioning Proposal for Families: West Oak Coffee Bar provides an authentic
neighborhood experience so you can enjoy a leisurely afternoon with your family.

3.

Identify Target Segments

Hipsters
And finally, the positioning for the Hipsters
segment is placed on the graph according to
levels of social and trendy atmosphere.
West Oak: ranks the highest for both social and
trendy atmosphere because we feel it will
provide a highly sociable and trendy atmosphere
for hipsters.
Big Mikes: is below West Oak because while it
provides a place for students to socialize, its
more of a laid back environment versus a trendy
environment.
Jupiter House: is located behind West Oak and
Big Mikes because it falls in between the two as
far as social goes, but still provides less of a
trendy atmosphere.
Banter: is located just below Jupiter House
because it has a great trendy vibe however, its
not as sociable an environment as Jupiter House.
Seven Mile Caf: is located lower on the trendy
atmosphere attribute because it is more of a sitdown and enjoy a meal environment , but this is
what causes it to be located higher on the social
category.

Zera: is located the farthest behind in terms of

trendy atmosphere because it is not at all
known as a trendy environment, but is a strong
social environment due to offering hookah,
coffee etc.

4. Positioning Proposal
Positioning Proposal for Hipsters: West Oak Coffee Bar provides an authentic
neighborhood experience so you can enjoy a cool place to hang out with a
sociable and trendy atmosphere.

Actions

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Support a local Denton Charity

Pass out Samples at Events
Implement a Dress Code
Create a Slogan
Loyalty Program
Sponsor Local Sports Team
Sandwich Board

Print Advertisements
Social Media
Sponsor Monthly Family Events

Action #1
Support a Local Denton Charity
In order to become more involved
with the local Denton community, one of
the actions that needs to be taken is to
support a local Denton charity. This action
fulfills the Resonance section of the CBBE
Model because it is giving back and showing
loyalty to the community. We didnt want to
choose just any charity, but one that had the
best fit of the values and ideals of West Oak
Coffee Bar. With that being said, we thought
the Denton Community Food Center would
be a good choice because its all strictly
volunteer work that is holding this business
together and their mission is to provide
families in need with food to survive. In
order to support this charity, West Oak
could have a box out for display in their
store that allows people to drop off canned
foods, boxed cereals, etc. in case they cant
make it out to the actual donation facility
since the Food Center is only open from

1pm-3pm Mondays through Fridays. The

Food Center also accepts cash donations so
there could also be a jar located near the box
for people to donate cash instead of food
items. Depending on how full the donations
get, there can be designated people each
week (or how often necessary) to drop off
the donations at the Denton Community
Food Center. Since this charity is strictly
volunteer, there would be no cost besides
the cost of a box of and a decorative jar
which would be about $15 maximum.

Action #2
Pass out Samples at Events
In order to build awareness of the
company and the products, West Oak can pass
out samples of popular food and beverage
items at local events. For example, the Grand
Opening of West Oak Coffee Bar would be a
perfect time to have someone standing outside
the store with samples of house coffee, the
chocolate milk on tap, and a pastry. By doing
this, this allows people passing by on the
Square to get quick preview of what West Oak
Coffee Bar will be serving and will generate
awareness of the company in their minds. The
Denton Holiday Lighting is also another great
opportunity to pass out hot beverages while
everyone is out in the cold weather and to start
talking and building up the brand. With the
cost of the products being served and the
supplies needed, the total cost for this action
would be about $140 per event.

Action #3
Implement a Dress Code
One of the actions that we would like to
propose to the West Oak Coffee Bar is to
have a uniform/dress code for the servants,
as shown in the picture black bow tie,
black suspenders, blue or white shirt, and
vest.
The idea is to simulate a 1920s appearance
and style. This dress code is reminiscent of
that time frame and also looks classy, which
would fulfill the performance aspect of the
Customer-Based Branding Equity model.
This would help customers create a rational
connection between the West Oak Coffee
Bar and the visual appearance of our theme.
This would add a certain emotional appeal to
customers as well, as the appearance of a
1920s themed coffee bar would likely spark
some sort of nostalgia through associative
imagery to the good old days during this era,
when everything was less stressful and
people lived more carefree lives, as is

portrayed for the most part by popular

media.
Employees will need to purchase their own
uniform which in this case, West Oak Coffee
Bar do not need to include the cost of this
action. West Oak Coffee Bar can specify to
their employees on where to buy the specific
bowtie as well as suspender so that every
single employee will have the same dress
code. Otherwise, West Oak Coffee Bar can
provide bowtie and suspender for their
employee. Each bow tie will cost $9.95 and it
can be purchased online through www.bowsn-ties.com while for suspenders it can be
bought at Walmart with an average price of
$12.50. We assume that West Oak Coffee
Bar will have a total of 15 employees. If they
decided to take the second option, the
associates cost for this action will be
$336.75.

Action #4
Create a Slogan
West Oak did not originally have a
slogan and we thought it would be a great
tool to add to their branding of the
company because slogans easily imprint in
the customers mind. As soon as consumers
hear a slogan they are able to connect it to
what company it represents. This represents
the brand element of memorability and
generates brand awareness.
Our house, your home symbolizes
that West Oak thinks of their business as a
place where we are not just serving coffee,
but welcoming guests inside to a place they

can call their own. West Oak provides an

authentic neighborhood experience to its
customers to where they can be comfortable
and have a place to create memories.
This slogan also has the brand
element of likability because it is esthetically
appealing. Our house, your home has a
warm and inviting nature around it and
creates a positive re enforcement in the
consumers mind. This is exactly what we
want to achieve from creating this slogan.

Our house, your home.

Action #5
Loyalty Program
This fulfills our resonance part of the
CBBE model. Customer rewards programs
offer rewards to customers who visit
often. What is going to make our reward
program different than the usual buy ten
cups of coffee get one free is that we will
customize it to the customers preference. If
a customer comes in every morning and gets
a coffee and pastry we will not reward him
with a tea. It doesnt make sense to reward
someone with something that they never
order. The loyalty program will also allow us
to use personal marketing and permission
marketing. Customers will fill out cards
giving us their email and phone
number. Since they gave us their email, we
can send out email offers using fishbowl, an
agency that helps with email blast and
manages our database. These emails will
drive customer loyalty and more frequent
visits. The emails will include coupons and
specials or new offerings that are happening
at West Oak Coffee Bar.

Panera Bread Company does a reward

program very similar to this with customized
rewards depending on the customer. They
are known for having one of the best reward
programs and have many articles on them
stating how much people love them
The cost of the reward program and using
fishbowl for email subscriptions would be
over $150 per month for the reward
program plus start up fee, which is around
$400 dollars. (customer) Fishbowl will cost
around $69 dollars per month for unlimited
messages to a database of 1000 members.
(fishbowl)
We will implement
program at the beginning of
off the new year. It give the
to get everything set up and
with a new calendar year.

the loyalty
2015 to start
business time
to start fresh

Actions #6 and #7
Sponsor Local Team
Another way to generate awareness for West
Oak and fulfill our community presence is to
sponsor a local youth sports team. This
fulfills many different parts of our CBBE
model. They are fun, local, community and
family oriented and help build relationships
with the people of Denton. They are in the
feelings resonance and imagery. In order to
sponsor a local sports team we would need
to buy the jerseys and simply put the
company name on the back. There are also
many different opportunities for activities
we can do with the team. We can hold the
team rewards ceremony that they have at the
end of the season in the upstairs part of the
building. We can also pass out coupons at
the games to get our presence known in the
community. This would cost us only the
price of the shirts and the cost of putting
the name and logo on the back. It will be
around $300 dollars per team.
We will implement the sponsor of a local
team in the middle of February because of

the
timing
with
local
sporting
activities. Local teams are assembling and
looking for sponsor for the up and coming
spring season.

Sandwich Board
Putting a sandwich board outside the
front of the building will attract
passersby to come check out the daily
specials and welcome people into West Oak
Coffee Bar. This action fulfills the
performance section of the CBBE Model as
it includes the prices and will be designed
with a classic theme. It also fulfills the
imagery section of the CBBE model
because it provides a sense of nostalgia with
their old school vibe. Having a sandwich
board outside the store is a cheap, easy way
to gain the attention of potential customers.
A chalk sandwich board is twenty five
dollars.

Action #8
Print Advertisements
A print advertisement is a great way
to spread awareness throughout the Denton
area. This action falls in the imagery section
of the CBBE Model because it creates a
sense of belongingness among the different
target segments and will also be distributed
locally.
Because we have three different target
segments, we will use three different
approaches towards the print ads. Each
segment has different ideals and by creating
a personalized ad for each segment, this will
create a better response for each segment.
For hipsters we will place them on the
UNT campus and TWU campus, calling all
hipsters to come and check out our
place. For business professionals we will be
canvassing to local businesses with
flyers. For families, we will distribute them
through school newsletters so that when
kids bring the fliers home, the parents will
be able to see them. Print ads will cost . to
make and will have the cost of labor to pass
them out and canvas.

Action #9
Social Media
Through social media our business
can reach a wide range of targets while being
cost effective. Businesses can use Facebook,
Instagram, and Twitter accounts to market
to followers at no cost. A business domain
website averages $1,000.00 per year to run. It
costs $10.00 to register a domain name and
roughly $900.00 for marketing, developing,
and maintaining the website. Social media
advertises a brands image to consumers who
follow them on various websites and apps.
West Oak Coffee Bar can use social media
channels to project a culture of local
nostalgia and creates a sense of belonging.

The ease of use of social media sites

allows businesses to update constantly and
daily. West Oak Coffee Bar can use
Instagram to post daily products of the day
such as specialty tea or coffee for consumers
to try. The great thing about social sites is
they are linked to other popular social media
apps and updates and post can be done
simultaneously. Showcasing our brands
quality products on our media channels tells
our customers we have a flair of
sophistication and care.

Posting images of West Oak Coffee

Bars products or retro ambiance on social
media can create a feeling of a fun,
comfortable, social environment. Pictures of
West Oaks 1920s vintage atmosphere
blended with modern industrial elements
generates an exciting scene where consumers
can enjoy themselves. Consumers can be
notified immediately via social media when
seasonal promotions arrive so they can get
excited about new flavors or products.
Social media helps businesses develop
and maintain an online presence, as well as
build relationships with their customers.
West Oak Coffee can make connections by
educating followers with history or factual
information about the tea or coffee of the
day in a post or picture. This promotes West
Oaks commitment to quality and service to
the community. Social media accounts are
activated months before the grand opening
to generate buzz and publicity, and need to
be maintain daily after.

Action #10
Sponsor Monthly Family Events
Another action that can build West
Oak Coffee Bars brand is sponsoring a
monthly family event. This will build
community relations with the local parents;
one of our target market segments. The
family events will give consumers with
children something to be excited about and
look forward too. The cost of hosting will
be around $70.00 due to advertisements and
decorations. The events will coincide with
holiday themes or unique activities around
non-holiday months. For example tea parties
around Mothers Day or a father/daughter
dance around Fathers day or family game
day in non-holiday months.
This is similar to Home Depots
weekly childrens workshop. By hosting
family events this builds the trust and
connection the consumers have with our
brand. They will think of West Oak Coffee
Bar as a place that they can go spend time
with their family and have an enjoyable
experience. These events will also prime the
children to grow with Oak Street Coffee Bar
and they will return when they are older with
their own spending power. This lays the

groundwork for future sales and maintain a

market share.
Since this will be a monthly thing,
children can have their own rewards system
when they come to these events as extra
incentives. Such as a punch card and after a
certain amount of events they are rewarded
with a treat of their choice. Customized
loyalty rewards cards can be ordered in packs
of 100 at an average cost of $20.00. The
childrens reward system will create fun for
the kids and make them want to come back
for treats.
We will start family events closer to
when school is being release for the summer.
The summer leaves children with a lot of
spare time and no activities. The events will
be an activity the family can look forward
too especially in the summer. We will be start
advertising to local schools by early May
2015, in students monthly folder sent home
to parents. The first event will be in June
after schools are release for summer break.

Budget
Total Costs Annually: $6196 - $6996.75
Actions

Costs

Charity
-- Charity Box and Decorative Jar

$ 15

Samples
-- Per Event ($140 * 3)

$ 420

Dress Code
-- Bowties and Suspenders ($22.45 * 15 Employees)

$ 336.75

-- Solely on Employees

$0

Sandwich Board

$ 25

Print Ads
-- Local Newspaper ($500 * 2)

$ 1000

-- Flyers (500 Pieces, $268 * 2)

$ 536

Social Media
-- Business Domain Website

~ $1000

Monthly Family Event

-- Advertisement and Decorations ($70/ month)

$840

-- Children Loyalty Card (pack of 100)

$20

Supports Local Team (per Team)

$300

Loyalty Program
-- Startup Fees

$400

-- Rewards Program ($220/ month)

$2640

Pricing Strategy

The pricing strategy that West Oak Coffee Bar has decided to implement is slightly
higher than neutral prices for the industry. These moderately increased prices will balance the
incurred cost of using higher quality ingredients. Basic drinks (including coffee, tea,
kombucha, and chocolate milk) will be priced between $2.50-$5, beer will cost between $4-$6,
wine will be available for $5-$9, and food can be purchased for $3-$8.
Neutral prices fall in line with what customers consider reasonable or appropriate for
the current market. Staying close to this level minimizes the role of price as a competitive
weapon.

Timeline

Conclusion
West Oak Coffee Bar offers the public
a glimpse into a simpler time built on a solid
foundation of close ties. The company starts
by using esthetics to frame that ideal with
classic hand crafted original woodwork and a
splash of exposed iron wrought industrial
fixtures reminiscent of the Jazz Age. West
Oaks atmospherics sets the mood for any
type of quality bonding moment like a casual
meet area, date night, or family outing.
After extensive research and analysis
in our business market and targets, we
believe that West Oak Coffee Bar will be
highly successful. West Oak can provide a
unique, comfortable experience that exceeds
consumers expectations of a social setting
and quality service. A fundamental highlight
of West Oak is the use of quality coffee and
tea from Intelligentsia. Intelligentsia is a
brand organization that complements our
mission and essence. Intelligentsia only
offers ethical fair trade organic products that
are grown and cared for by foreign
communities. The extra love and care is
worth the price for the time spent from
production to a clients cup.

The look and feel of West Oak

Coffee Bars brand is the perfect location for
our three segmented markets: hipsters,
business professionals, and families. Denton
is well known for its concentrated hipster
population, emphasis in local small business,
and family friendly activities. We have also
detected opportunities that can potentially
expand the business reach and satisfy other
market needs. To advance West Oaks market
share we have planned ten different actions
to reach our target segments. The actions are
strategic battle plans to incent customers and
sales in the store. After our target markets
are secured, we can concentrate on
reaching different markets.
The marketing plan will help West
Oak Coffee Bar become the newest shining
gem on the Denton square and we are
excited to watch the business grow. Denton
square represents a history of resilience,
determination, and love built by the local
residents as a strong community unit. These
ideas have carried through time, the strength
and support of Denton has only grown into
a stronger community. West Oak Coffee Bar
offers an authentic neighborhood experience
from their house to your home.

Appendix

Appendix

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