University of Santo Tomas College of Commerce and Business Administration 1st Semester, A.Y.

2011 2012

A Comprehensive Distribution Plan and Strategies for The Coffee Bean and Tea Leaf

Submitted by: Pagana, Sheena Marie S. Geling, Maria Guadagraciape M. Lopez, Alejandro Chrys V. Rubio, Arbert M. 3M5

Submitted to: Mr. Mario C. Angeles

SEPTEMBER 20, 2011 TABLE OF CONTENTS

I.
Company Objectives and Teams Specific Objectives 2

II. Product And SWOT Analysis

Product(S) or Service(S) Being Studied Specific Value-Added Services Companys Top-5 Direct Competitors in the Industry Companys Top-5 Indirect Competitors in the Industry Competitors Marketing Mix Strategies Benefits expected by customers from our company SWOT Analysis of Direct Competitors SWOT Analysis of Indirect Competitors Industry Analysis Feature List (Value-Added Services) Benefits List (From Value-Added Services) Critical Issues III. Market Segmentation Customer Feedback Mechanism Market Segments based on service outputs demanded Competitors benefits: generalizing the SWOT analysis Benefit(s) we offer that our competitors dont Our competitive advantage for all employees, salespeople, and customers IV. Channel Formats Channel System Matrix based on the information gathered and analysis Illustration of the Channel System Description of Proposed Channel System V. Channel Members, Structure, And Intensity 3 3 4 6 8 9 10 15 19 20 20 21

23 25 27 27 28

29 30 31 32 35 38 39 41 43 44 46 48

VI. The Gap Analysis

Advertisements for the four segments Demand-Side Gap Analysis Worksheet: (SOD versus SOS) Supply-Side Gap Analysis Worksheet Task 6 Worksheet 3A Summary of demand-side and supply-side gaps: Closing the gaps VII. Distribution Strategies

VIII.

Recommendations

IX. Appendices Gantt chart of strategies to be implemented Sample Questionnaire 49 50

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Results of Market Research (Graphs) List of Sources of Information Attendance Sheet during Brainstorming 54 66 67

COMPANY OBJECTIVES AND TEAMS SPECIFIC OBJECTIVES COMPANY OBJECTIVES

At The Coffee Bean & Tea Leaf we are dedicated to providing you with excellence in the products we sell, the services we provide, and the environments where you shop. We care about what you have to say about your relationship with us, the quality of our products, and your experience as a customer.

TEAMS SPECIFIC OBJECTIVES

The teams brand of choice is the retail store The Coffee Bean and Tea Leaf. In studying this product, the team has devised these goals. They are as follows: To determine what marketing flows define the work of the channel. To find out the service outputs supplied by the company and the service outputs demanded by the customers. To identify the effects of direct and indirect competitors in the standing of the company. To recognize the value-added services of the company and to differentiate it to the valueadded services provided by their competitors. To be able to identify strategies for closing the various types of channel gaps.

PRODUCT AND SWOT ANALYSIS Product(s) or Service(s) being studied

The Coffee Bean and Tea Leaf will be the brand that the team will study and create a distribution plan for. It is one of the largest privately-owned, family-run coffee and tea companies in the world and is started by Herbert B. Hyman on the year 1963. His dedication to finding and serving the best coffee and tea in the world made him the founding father of gourmet coffee in California.

Specific Value-added Services

Specific Value-added services provided

Generic Service Output: Description/process of service output

1.

CBTL offers wide variety of coffee, tea and

Product variety: Consumers have a variety of products to choose from.

pastries.

2. They accept all major credit cards for payment transactions.

Customer Service: If the customers have no cash on hand, they can pay directly using their credit card. It will be less hassle for them to withdraw money.

3. They provide wi-fi access to customers.

Customer Service: customers can avail of free internet surfing while enjoying a cup of coffee. They just need to get the password to one of the employees on the shop.

4. They have branches in various parts of the Metro and in Cebu

Spatial

Convenience:

Customers

can

choose from various locations.

5. They provide company information in their website such as their history, heritage, careers, etc.

Information Provision: Anyone can access public information about CBTL.

6. The products offered and locations are also listed in their website.

Information provision: Customers can know beforehand where the coffee shop is located and on what drink/pastry to order.

7.They can provide laptop locks when requested by the customers

Customer

Service:

CBTL

secures

the

important belongings of their customers by providing laptop locks.

Companys top 5 direct competitors in the industry:

1. Starbucks Coffee Starbucks Coffee is a company-owned business and uses retailing as their distribution format. Some of the products that they offer are coffee and espresso classic, cold comforts, tazo teas, non brewed drinks, pastries, cakes, merchandise & gift items like mugs, tumblers, bears, etc. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, and product variety and information provision. Their primary target markets are the working people especially those who belong in business process outsourcing and the call center agents. Their secondary target markets are the students and coffee enthusiasts. It It is their competitive advantage that they are operating in more than 50 countries worldwide, their locations are at convenient places, it is strategically located and they are making their business environmentally friendly. On the other hand, it is their disadvantage that their product prices are higher as compared to some locally based coffee shops. They also overcrowd the market. 2. Seattles Best Coffee

6
Seattles Best Coffee uses retailing and franchising as their distribution format. Some of the products that they offer are classic brews, ice blended beverages, teas, breakfast meals, pastries, desserts and merchandise items such as tumblers and mugs. They also offer their SBC card. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, and product variety and information provision. Their primary target markets are the working people especially those who belong in business process outsourcing and the call center agents. Their secondary target markets are the students and coffee enthusiasts. It is their competitive advantage that they offer mobile coffee break, catering services and that they are known internationally. On the other hand, it is their disadvantage that they have few branches in the Philippines and has no branches in rural areas except Cebu. Besides, they have many stores that has already closed for the past years. 3. Figaro Coffee Company Figaro Coffee Company uses retailing and franchising as their distribution format. Some of the products that they offer are coffee and espresso classic, cold comforts, tazo teas, non brewed drinks, pastries, cakes, sandwiches, ala carte, salads and pizza. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, product variety and information provision. Their primary target markets are the working people especially those who belong in business process outsourcing and the call center agents. Their secondary target markets are the students and coffee enthusiasts. It is their competitive advantage that they do not only serve coffee, but also viands and desserts. They are also in touch with SMAC which provides customers free products. On the other hand, it is their disadvantage that they have low brand awareness and has high prices compared to other fast foods & coffee shops. 4. Bos Coffee Bos Coffee uses retailing and franchising as their distribution format. Some of the products that they offer are coffee and espresso classic, cold comforts, tazo teas, non brewed drinks, pastries, cakes, sandwiches, premium chocolate, sugar-free drinks, cookies and breakfast meals. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, product variety and information provision. Their primary target markets are the working people especially those who belong in business process outsourcing and the call center agents. Their secondary target markets are the students and coffee enthusiasts. It is their competitive advantage that they have variety of product offerings because they dont only serve coffee products but also light meals. They also have 50 outlets strategically located in Metro Manila, Cebu, Davao, Cagayan de Oro, Bacolod, Iloilo, Bohol and Tacloban. On the other

7
hand, it is their disadvantage that they have fewer branches in urban areas compared to its competitors. 5. Krispy Kreme Doughnuts Krispy Kreme Doughnuts uses retailing and franchising as their distribution format. Some of the products that they offer are hot coffee, iced coffee, kremey chillers, fruity chillers, doughnuts, baked products and collectible items. The value-added services they offer are bulk breaking, spatial convenience, waiting or delivery time, customer service, product variety and information provision. Their primary target markets are the students and doughnuts & coffee enthusiasts. Their secondary target markets are the working people especially those who belong in business process outsourcing and the call center agents. It is their competitive advantage that they are now shared around the globe in Asia, Australia, Europe, Latin America, Middle East and North America. They are also in high visibility locations. It is their disadvantage that they dont offer healthy living foods because their products are too sweet.

Companys top 5 indirect competitors in the industry:

1. Zagu Zagu uses retailing and franchising as their distribution format. Some of the products that they offer are shakes and pearl coolers that could be bought with additional toppings like pearls, crystals, choco bits, etc. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, product variety and information provision. Their primary target markets are the students, adolescents, young adults and the on-the-go people. Their secondary target markets are the working people and other professionals. It is their competitive advantage that they can be found in malls, supermarkets and roadside locations. There are also wide variety of flavors, blends and additional toppings to choose from. It is their disadvantage that their branch spaces are small. Customers dont have the space if they want to drink their shakes on the store itself. They also dont sell any other products except shakes. 2. Quickly Quickly uses retailing and franchising as their distribution format. Some of the products that they offer are taro, coffee ice, blended coffee, fruit shakes, pudding flavored taho, milk tea and choco milk. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, product variety and information provision.

8
Their primary target markets are the students, adolescents, young adults and the on-the-go people. Their secondary target markets are the working people and other professionals. It is their competitive advantage that they offer healthy beverages and has a wide menu of thirstquenching drinks. It is their disadvantage that they only have limited outlets compared to their competitors and some outlets doesnt serve all the flavors indicated in their website. 3. Ice Monster Ice Monster uses retailing and franchising as their distribution format. Some of the products that they offer are smoothies and ice desserts (ice shavings w/ an assortment of toppings that range from fresh fruits, taro, and red bean to cookies and cream). The value-added services they offer are spatial convenience, waiting or delivery time, customer service, product variety and information provision. Their primary target markets are the kids, students, adolescents, young adults and the on-the-go people. Their secondary target markets are the working people and other professionals. It is their competitive advantage that they offer healthy desserts and uses fresh fruits, not frozen fruits. It is their disadvantage that they only have limited outlets compared to their competitors. 4. Fruitas Fruitas uses retailing and franchising as their distribution format. The products that they offer are fresh fruit shakes that satisfy the thirst of the people residing in the Philippines. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, product variety and information provision. Their primary target markets are the kids, students, adolescents, young adults and the on-the-go people. Their secondary target markets are the working people and other professionals. It is their competitive advantage that they have a distinctive style of letting customers handpick the fresh fruit of their choice and they provide healthy and affordable beverages. It is their disadvantage that their branch spaces are small. Customers dont have the space if they want to drink their shakes on the store itself. They also dont sell any other products except fruit shakes. 5. Dairy Queen Dairy Queen uses retailing and franchising as their distribution format. Some of the products that they offer are ice creams, blzzards, moolatte, banana split, shakes, sundae, dilly bar and cakes. The value-added services they offer are spatial convenience, waiting or delivery time, customer service, product variety and information provision. Their primary target markets are the kids, students, adolescents and young adults. Their secondary target markets are the working people and other professionals. It is their competitive advantage that they offer a variety of products. They also have a different, unique and amazing style of preparing because it has an optimistic ambiance that invites you to take life not too seriously. It is their disadvantage that they only have limited branches and their prices are high compared to their competitors.

Competitors marketing mix strategies

A. Direct competitors Promotional Strategies

1. Point of sale display: They put some products near the counter to draw the
customers' attention to products.

2. Words-of-mouth communication: These companies rely on the words of mouth

by their customers. Positive feedback from their core customers helps in gaining new customers.

3. Event Sponsorship: Some competitors accept sponsorship in return of the free

promotion and advertisement in the entire time duration of the event. Distribution Strategies

1. Franchising: Some competitors engage in franchising. They are trying to build up

the circulation of their goods through intensive distribution.

2. Use of coupons: Starbucks also provide coupon to stimulate customers to keep

on buying their products. They give free items like planners which usually are bought in a certain price, as long as consumers meet the number of product required to accumulate these items for free.

3. Company-owned retail store: They distribute through the use of their store. 4. Company websites: Even though they dont offer on-line ordering and delivery,
this gives them much more visibility even if the customer is not within reach of the competitors store. Customer can conveniently check here new updates, promos, availability of product, etc. Price Strategies

1. Use of discount cards: Some competitors gave loyalty cards to their customers
so that they can avail items in a lesser price.

2. Premium pricing: Some uses a high price where there is uniqueness about the
product.

3. Cost-plus pricing: The firm calculates the cost of producing the product and adds
on a percentage (profit) to that price to give the selling price. B. Indirect Competitors Promotional Strategies

1. Utilization of the integrated marketing communication: They use commercials,

print ads (magazines and newspapers) and celebrity endorsements.

10 2. Words-of-mouth communication: These companies rely on the words of mouth

by their customers. Positive feedback from their core customers helps in gaining new customers.

3. Event Sponsorship: Some competitors accept sponsorship in return of the free

promotion and advertisement in the entire time duration of the event. Distribution Strategies

1. Franchising: Some competitors engage in franchising. They are trying to build up

the circulation of their goods through intensive distribution.

2. Company-owned retail store/food kiosks: They distribute through the use of their
store.

3. Company websites: Even though they dont offer on-line ordering and delivery,
this gives them much more visibility even if the customer is not within reach of the competitors store. Customer can conveniently check here new updates, promos, availability of product, etc. Price Strategies

1. Use of discount cards: Some competitors gave loyalty cards to their customers
so that they can avail items in a lesser price.

2. Competition based strategy: With a competition-based pricing policy, a company

sets its prices by determining what other companies competing in the market charge.

3. Cost-plus pricing: The firm calculates the cost of producing the product and adds
on a percentage (profit) to that price to give the selling price.

Benefits expected by customers from our company:

1. Customers can choose from a variety of products, from hot to cold coffees, to healthy-living teas
and to different pastries.

2. CBTL offers a good quality of customer service. Our baristas will attend to your immediate needs.
3. CBTL has a unique loyalty & cash card that gives you immediate reward you deserve.

4. CBTL stores have a cozy ambiance. You can feel that youre home and safe in our store. 5. CBTL uses state of the art equipments in preparing the products. We are modernized and highly
innovative.

6. CBTL trains baristas to make them more competitive. We provide trainings for them to be efficient
and effective.

7. CBTL produces differentiated products. We dont serve only one line of food. 8. CBTL stores have a wifi service. You can surf the net while enjoying a cup of coffee.

11 9. In every drink or food you buy, you can help the partner communities of the company. CBTL
proudly supports Real Life Foundation, Haribon Foundation, Kagabay, KHYTE and Abot Kamay Inc. CBTL is committed to social responsibility.

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SWOT ANALYSIS of direct competitors

Company Their Strengths Their Weaknesses Your Opportunities Threats to your company

Customer service They can provide customer accommodation. They could provide internet connections. They have a and good well ambiance/cozy ventilated store. Starbucks Coffee They accept credit cards for payment. Product assortment and customer service They offer complementary products to customers. Spatial convenience They have different/wider outlets and stores locally and internationally. They are financially capable of expansion.

Customer Service They are only providing 2 or 3 coffee blender that can cause delays. Promotion No intensive advertisements

Waiting time Consumer service. Ordering Consumer transparency preparation. Information Provision and Customer Service Continuous due to right market information acceptance of the product provision, quality product, in value product value fast

Customer service Consumer value customer service in terms of customer accommodation Customer looks for store with cozy ambiance and with nice store set-up Information provision Customers sensitive Spatial convenience Customers convenience value in spatial of terms are brand

store availability.

and good customer service.

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Ordering Transparency preparation. Promotion They offer coupons for add one, free items, discount in product

Customer service They can provide customer accommodation. They could provide internet connections. They Seattles Best Coffee have a and good well ambiance/cozy ventilated store. They accept credit cards for payment. Product variety They offer complementary products to customers. Ordering Transparency preparation. in product

Customer Service They are only providing 2 or 3 coffee blender that can cause delays. Spatial convenience They have minimal number of outlets and stores locally and internationally. Promotion No intensive advertisements

Waiting time Consumer service. Ordering Consumer transparency preparation. Information Provision and Customer Service Continuous due to right market information acceptance of the product provision, quality product, in value product value fast

Customer service Consumer value customer service in terms of customer accommodation Customer looks for store with cozy ambiance and with nice store set-up Information provision Customers sensitive Spatial convenience Customers convenience value in spatial of terms are brand

and good customer service.

store availability.

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Bulk breaking They offer choices of sizes to buy. Product variety They are serving healthy coffees that suit for health conscious people. They offer complementary products to customers. Figaro Coffee Company Customer service They can provide customer accommodation. They could provide internet connections. They have a and good well ambiance/cozy ventilated store. They accept credit cards for payment. Ordering Transparency preparation. in product

Customer Service They are only providing 2 or 3 coffee blender that can cause delays. Spatial convenience They have minimal number of outlets and stores locally and internationally. Promotion No intensive advertisements

Waiting time Consumer service. Ordering Consumer transparency preparation. Information Provision and Customer Service Continuous due to right market information acceptance of the product provision, quality product, in value product value fast

Customer service Consumer value customer service in terms of customer accommodation Customer looks for store with cozy ambiance and with nice store set-up Information provision Customers sensitive Spatial convenience Customers convenience value in spatial of terms are brand

and good customer service.

store availability.

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Product variety They are serving healthy coffees that suit for health conscious people. They offer complementary products to customers. Spatial convenience They have the number of outlets in NCR areas. Customer service Bos coffee They can provide customer accommodation. They could provide internet connections. They have a and good well ambiance/cozy ventilated store. They accept credit cards for payment. Ordering Transparency preparation. in product

Customer Service They are only providing 2 or 3 coffee blender that can cause delays. Promotion No intensive advertisements

Waiting time Consumer service. Ordering Consumer transparency preparation. Information Provision and Customer Service Continuous due to right market information acceptance of the product provision, quality product, in value product value fast

Customer service Consumer value customer service in terms of customer accommodation Customer looks for store with cozy ambiance and with nice store set-up Information provision Customers sensitive Spatial convenience Customers convenience value in spatial of terms are brand

and good customer service.

store availability.

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Bulk breaking Doughnuts can be bought individually Product variety They offer complementary products to customers. Spatial convenience Krispy Kreme Doughnuts They have the number of outlets in NCR areas. Customer service They can provide customer accommodation. They could provide internet connections. They have a and good well ambiance/cozy ventilated store. They accept credit cards for payment. Ordering Transparency preparation. in product

Customer Service They are only providing 2 or 3 coffee blender that can cause delays. Promotion No intensive advertisements

Waiting time Consumer service. Ordering Consumer transparency preparation. Information Provision and Customer Service Continuous due to right market information acceptance of the product provision, quality product, in value product value fast

Customer service Consumer value customer service in terms of customer accommodation Customer looks for store with cozy ambiance and with nice store set-up Information provision Customers sensitive Spatial convenience Customers convenience value in spatial of terms are brand

and good customer service.

store availability.

SWOT ANALYSIS of indirect competitors

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Company

Their Strengths Product assortment They offer different flavors through powdered additives. Bulk breaking They offer choices of sizes to buy.

Their Weaknesses Customer service They location customers. They have limited staffs and blenders. Waiting time Their waiting time takes longer than 5mins. Promotion No intensive advertisements have small which store cant their

Your Opportunities nformation provision Consumers are sensitive regarding the content of the product and its quality. Customer Service Continuous due to right market information acceptance of the product provision, quality product,

Threats to your company Information provision Customers sensitive. Customer service Consumer value customer service in terms of customer accommodation. are brand

accommodate

Zagu

Customer service They offer add-ons for the customers. Spatial convenience They have wide number of outlets nationwide. Ordering Transparency preparation. in product

and good customer service. Waiting time Consumer service. Negotiation For expansion of their retail stores. value fast

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Spatial Convenience They have wide number of outlets in NCR. Ordering Transparency preparation. Customer service Quickly They offer add-ons for the customers for their drinks. Product variety They offer different flavors, smoothies and drinks that you can blend anyway you want. in product

Customer service They only have small store which cant accommodate their customers Waiting time Preparation takes longer time. Promotion No intensive advertisements sometimes

Customer service Consumers are sensitive regarding the content of the product and its quality. Information Provision and Customer Service Continuous due to right market information acceptance of the product provision, quality product,

Customer service Consumer value customer service in terms of customer accommodation, ambiance and customer with nice looks for store with cozy store set-up. Information provision Customers sensitive. Spatial convenience Customers convenience value in spatial of terms are branding

and good customer. Waiting time Consumer value fast service Negotiation For expansion of their retail stores.

store availability.

Ordering Transparency preparation. Customer service Ice Monster They have enough space for stores customers which with can their good accommodate in product

Spatial Convenience They have minimal number of outlets in NCR. Waiting time Preparation takes longer time. Promotion No intensive advertisements sometimes

Customer service Consumers are sensitive regarding the content of the product and its quality. Information Provision and Customer Service Continuous market acceptance of the product

Customer service Consumer value customer service in terms of customer accommodation, ambiance and customer with nice looks for store with cozy store set-up. Information provision

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ambiance. Product assortment They offer different flavors, smoothies and drinks. due to right information Customers sensitive. Spatial convenience Customers convenience value in spatial of terms are branding

provision,

quality product,

and good customer. Waiting time Consumer value fast service Negotiation For expansion of their retail stores.

store availability

Product assortment They Fruitas offer different fruit shakes. Spatial convenience They have wide number of outlets nationwide especially in LRT and cinemas areas. Ordering Transparency preparation. in product

Customer service They location customers. They have limited staffs and blenders. Waiting time Their waiting time takes longer than 5mins. Promotion No intensive advertisements have small which store cant their

Information provision Consumers are sensitive regarding the content of the product and its quality. Customer Service Continuous due to right market information acceptance of the product provision, quality product,

Information provision Customers sensitive. Customer service Consumer value customer service in terms of customer accommodation. are branding

accommodate

and good customer service. Waiting time Consumer service. Negotiation For expansion of their retail stores. value fast

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Ordering Transparency preparation. Customer service Dairy Queen They have enough space for stores customers ambiance. Product assortment They offer different flavors, smoothies and drinks. which with can their good accommodate in product

Spatial Convenience They have minimal number of outlets in NCR. Waiting time Preparation takes longer time. Promotion No intensive advertisements sometimes

Customer service Consumers are sensitive regarding the content of the product and its quality. Information Provision and Customer Service Continuous due to right market information acceptance of the product provision, quality product,

Customer service Consumer value customer service in terms of customer accommodation, ambiance and customer with nice looks for store with cozy store set-up. Information provision Customers sensitive. Spatial convenience Customers convenience value in spatial of terms are branding

and good customer. Waiting time Consumer value fast service Negotiation For expansion of their retail stores.

store availability

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Industry Analysis
a. Threat of entry of new competitors

1. Any large & well-funded company where capital is not a problem could be potential entrants. 2. Nowadays coffee shops are in demand in the market, new competitors would more likely to
open up a new coffee shops.

3. If the new competitors have good location, long term arrangements for access to raw
materials. 4. If the new competitors have unique production/distribution system that makes it hard for other competitors to grab opportunity. 5. If the new competitors offers lower prices but high quality product and service. b. Intensity of competitive rivalry 1. Some retail stores in smoothies industry experience the pressure to act or pursue an opportunity to improve their competitive position. c. Threat of substitute of products and services 1. If those of substitutes provide overall savings to its customers w/o impacting the quality of their product that their end-consumers want 2. If those of substitutes provide quality services that their end-consumers want. 3. If those of substitutes provide other quick-grab foods apart from pastries, sandwiches, etc. 4. If those of substitutes provide other beverages apart from coffee and tea. d. Bargaining power of customers 1. With newer entrants & competitors who claim to offer premium roast coffee of reasonable quality for lower price. 2. The profitability of the buyers. If they are really patronizing the said product. 3. Switching costs is also included if the buyers can easily switch their suppliers. e. Bargaining power of suppliers 1. The CBTL will not rely on any local supplier in a foreign market they have entered

2. The coffee itself is obtained from countries like Columbia, Sri Lanka & Ethopia. There, people
get trained in order to grow premium coffee. The coffee bean provides in many countries of the world. This coffee will therefore be shipped in every country of the world, to ensure that every coffee bean coffee has the same taste & quality

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Feature List (Value-added services)

1. We have the friendliest and most approachable baristas in the coffee industry. 2. We have the most relaxing store ambiance. 3. We are using state-of-the art machines to enhance our production and quality. 4. We offer nutritional and healthy coffee and teas. 5. Our coffee is roasted fresh daily in small batches in a manual European roast style. 6. We are committed to social responsibility. 7. We are dedicated to providing you with excellence in the products that we sell, the services we provide and the environments where you shop. 8. We care about what you have to say about your relationship with us. 9. We believe in a personnel philosophy thats really simple & really smart; whats best for our people id best for our business. 10. We secure your personal belongings by providing laptop locks.

Benefits List (from Value-Added Services)

1. Dining at CBTL will make you feel at home. 2. The aroma of freshly brewed coffee adds comfort & warmth to the inviting ambiance of the caf. 3. CBTL offers faster service. 4. We offer newly roasted coffee and freshly baked pastries. 5. Your cup will be of great help to our partner institutions. 6. We make sure that you can get the right coffee experience that you deserve that will make your stay in CBTL, the best. 7. We are open for any comments and suggestions.

8. When we train a barista, we dont just teach you how to mix drinks and service customers; we
help you become the best you can be add among the best in the world.

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Critical Issues

Critical Issues (Major Aspects: Controllable and Uncontrollable Constraints) Problem Description

1. Will

staff

members

be

as

The status of the employees might change including their attitudes towards the customers. Additionally, they might demand for increase in salary and other benefits.

accommodating as they are now?

2. Will CBTL be affected to the black There might be ads scattered that may or may not be true, that might damage the image and
propagandas that competitors may throw against them? 3. Does their stores are strategically located? Store location must be in high traffic areas. It must also be accessible to the customers. Spatial convenience is important. integrity of CBTL.

4. If the competitors will try to make a better product than what Minute Burger has, will it result in a potential decrease in their sales? 5. How will they make use of the different available technologies?

There is a threat of future competitors. CBTL must think of ways to increase their competitive advantage.

CBTL must be updated to the new technologies available in the market that might be a help for them to be more innovative.

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6. Will

there

be

complementary

Customers are always looking for something more in a store. Something new that will arouse their interests. Fulfilling this can increase CBTLs sales.

goods?

7. How are we going to compete with the fast changing trends of the environment? 8. Can the store bear the high taxes imposed by the government knowing that higher sales constitute to higher taxes? 9. Are they prepared in cases of inflation, deflation, etc.?

Flexibility is an important aspect. We need better business strategies and more products/services to survive in the business world.

There are government interventions and it may lead to lower sales and profit.

We must adapt to the varying economic conditions of our country

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MARKET SEGMENTATION Customer Feedback Mechanism

Benefits understood by the customers about the product(s) and services offered by the company:

1. Accessibility of the stores: The customers really want an accessible retail store so that it lessens
the time they spent for transportation and the like. They want easily reached retail stores.

2. Ambiance of the store: The cozy ambiance is also an important factor in considering a retail store.
The environment is clean and there is no eye-sore. The customers feel safe and comfortable on the store.

3. The speed of service rendered: It is better to avoid increasing the waiting time of the customers.
The lesser the waiting time, the better.

4. There is wide variety of product choices: Customers can choose from many varieties of flavors
and blends.

5. Information provision of the company: The customers also prefer that the companys product has
information like ingredients, health benefits and nutritional facts.

6. Good customer relationship from the employees: It is always demanded by the consumers. This
includes employees politeness, appearance, expressions and way of talking.

7. Quality assurance by the customers: There is no room for defects and in case there is one, the
company should take responsibility.

8. Packaging: Proper labeling of products is an important aspect of the goods to be sold. 9. Affordability of the products: Customers value the price. As for them; the lower the price, the
better. Many people purchase the product if it is reasonably priced and inexpensive. Complaints and inquiries from customers and prospects and their reasons 1. There are few The Coffee Bean and Tea Leaf branches in the Philippines compared to Starbucks Coffee.

2. Their products are not affordable for some customers. Price of an instant coffee is way cheaper
than the price of coffee in a coffee shop.

3. Personnel from some branches are not approachable and well-mannered. It took some
customers to call them several times just to attend to their needs.

4. Some products are too sweet that some customers cant resist it. 5. The customers are not sure if some branches just reuse the paper in the serving tray. If that is the
case, there is a problem in the sanitation.

6. Slow internet connection in some branches. Wireless connection is having trouble at times. A
technical problem is uncontrollable.

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7. Stores are not open for 24 hours. Some customers look for a drink on the middle of the night especially those included in the business process outsourcing (BPO) that is why they prefer accessible shops. 8. Slow service is also a factor that stimulate complains. Since almost all consumer value their time, waiting for 10 minutes or more for a simple drink would be undesirable.

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Market Segment Based on Service Outputs Demanded

Segments

Segment Description (define)

Benefits this segment is interested to

Reasons for their interest(s)

People ages 1750; preferably female and working near a retail store. Since they are busy, they give Working people value to their time and prefer faster service. People ages 16 30 that need something to keep them awake for studying. Those who prefer branches Students near their schools or their places and want proper customer service.

Less waiting time Stores are near their workplace Cozy ambiance Friendly Affordable prices Promos and discounts Product variety Less waiting time Stores near their schools Cozy ambiance Friendly Affordable prices Promos and discounts Product variety Free wifi service and and

Time

is

gold.

Their

time

is

important. They need a place for relaxation after a stressful scene at the office They value their moneys worth. It is important to spend less as much as possible in order to save. People want to try something new

accommodating personnel

Break times are limited They tend to look for quiet places wherein they can study. It is best to be accommodated properly. Since their allowance is limited, it is important to spend less as much as possible in order to save. People want to try something new. Some students dine in coffee shops in order to access free

accommodating personnel

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internet connection that they need for school stuffs

People 16 years old and above who love to drink coffee and who love to try Coffee enthusiasts new varieties. They value suggestions. Product depth and variety High quality product based on taste

They like to try new blends of coffee and compare it to other products. They wanted to satisfy their demand and craving for coffee products. People want to try something new. They believe that coffee is their stress-reliever.

People 16 years old and above who value foods and drinks that are Health Conscious nutritious and healthy. They are meticulous on the ingredients, nutritional facts and health benefits. Informative Information provision Product variety and accommodating personnel

They prefer personnel who can assist them and inform them on the health benefits they could get in buying a particular cup of coffee. They like to try new tastes of coffee that are healthy and good. They want to satisfy their healthy living.

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Competitors benefits: Generalizing the SWOT Analysis

1. Competitors store branches are strategically located. They can be seen in roadside areas, in
malls, in expressways, etc. 2. Competitors has already established a brand in the market industry.

3. Competitors product names are more appealing (e.g. mocha macchiato of Starbucks.
4. Competitors are predominantly well-known in the market. 5. Competitors store branches are open for 24 hours especially for those who have outlets in the expressways.

Benefit(s) we offer that our competitors dont

1. Our coffee is roasted fresh daily in small batches in a manual European roast style, then packed using state-of-the-art equipment for shipment in our own roasting facility and delivered fresh daily to our stores. 2. All our imported coffees have been cultivated at high altitude - between 3,500 and 6,000 feet because cooler temperatures slow the beans' ripening time, and create more concentrated, flavorful coffees. 3. To ensure we're offering you simply the best from each region, we personally travel to various farms and estates to visit local growers and find the best quality harvests. 4. Over the years, we have worked hard to build relationships with individual farms and estates so that we can be assured of the best coffee and tea harvests available. 5. We care about what you have to say about your relationship with us, the quality of our products, and your experience as a customer. 6. We nurture long lasting relationship with estates not only for the high quality of their product, but also for their Earth-friendly growing practices and the excellence in how they treat their workers and families. 7. We sell the new CBTL Single Serve Beverage System wherein you can mix and enjoy your favorite drinks from the comfort of home! It is an easy to use, single serve beverage system that combines the handcrafted taste and quality that is the hallmark of The Coffee Bean & Tea Leaf. 8. We offer our unique loyalty and cash card wherein you can enjoy exciting perks and privileges with our Swirl Rewards Card.

Our competitive advantage for all employees, salespeople, and customers

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At The Coffee Bean & Tea Leaf we are dedicated to providing you with excellence in the products we sell, the services we provide, and the environments where you shop. We believe in a personnel philosophy that's really simple and really smart: what's best for our people is best for our business. So when we train a barista, we don't just teach you how to mix drinks and serve customers; we help you become the best you can beand among the best in the world. Does it sounds too good to be true? It isn't. Our Global Director for Training and Development, Diane Martell, started out as one of our barista, and she's far from our only stellar success story. Many of our top team members, especially in the Philippines, achieved positions of responsibility just years or even months after they were hired. What's more, growing international demand for our people proves that once you've trained with us, you're ready for any challenge, anywhere. We've sent team members across the globe, zooming outward and upward along their career paths. So if you think you've got the passion, personality, and potential to take on the world, then put your best foot forward with us at The Coffee Bean & Tea Leaf! Our company offers a wide number of benefits and gives satisfactory compensation to all its employees and salespeople such as comprehensive medical, dental, and dermatological health benefits, generous calamity, burial, and loan assistance, as well as retirement plan and etc. As for the customers, our company strives to provide a competitive price that is appealing to the market. We also give value to customer loyalty that is why we have a unique loyalty and cash card called Swirl Rewards Card wherein you can enjoy exciting perks and privileges. We endeavor to offer a product of the highest quality that every customer wants.

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CHANNEL FORMATS Channel System Matrix based on the information gathered and analysis

Transaction(s) / Segment(s)

Working People based on Waiting or Delivery Time

Students based on Customer Service

Coffee Enthusiasts based on Product Assortment or Variety

Health Conscious based on Information Provision

On Presales

Computer access information, Companysponsored programs

Computer access information, Companysponsored programs

Computer access information, Premium and Gift Market

Computer access information, Premium and Gift Market

On Sales

Pay-per-serving point of dispensing

Pay-per-serving point of dispensing

Pay-per-serving point of dispensing

Pay-per-serving point of dispensing

Specialty On Post-sales Specialty catalogs Specialty catalogs Specialty catalogs catalogs

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Illustration of the Channel System

Presales

Sales

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Post-sales

Segments

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Description of Proposed Channel System

On pre-sales, computer access information is appropriate for all the segments based on their specific service outputs. This is to further inform the customer about the product, its new features, upcoming promotions, events and the likes. It can also help the customers and prospective customers to see what product they can buy or what product they want to buy. Company sponsored programs are also fitted for the segments of working people and students. Sponsorship is a great help especially to the promotion aspect of the business. It makes the public fully aware of the product. On the other hand, premium and gift market could entice the coffee enthusiasts segment and the health conscious segment. On sales, pay-per-serving point of dispensing based on waiting time, customers are assured that when they pay the amount of money needed for the item they will instantly receive the item that they ordered. For customer service and product variety, it let the customers receive the item they want the moment they pay. On information provision, customers will know how long does it take to serve the product they ordered and compare it with past experiences or past products they have already taken. On post-sales, specialty catalogs based on all the service outputs can inform customers and prospective customers on when will the new products come out as well as the corresponding price increase, price decrease and discounts for the products.

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CHANNEL MEMBERS, STRUCTURE, AND INTENSITY

Channel Members

Number of Channel Member(s) Makati

Location(s)

Channel Flows to be Performed

Description of their responsibilities

Greenbelt 3 Four Seasons Salcedo Convergys Ayala Avenue

Physical Possession

The use of warehousing as a mean of storing their coffee beans.

Ownership

They are carrying their inventory cost. Promote the products through catalogs, brochures, flyers and sponsoring event as public relation. They collect payment from the customers on cash basis or credit payments. They use machines to allow customers to pay through credit cards and able to give

Promotion

The Coffee Bean and Tea Leaf retail stores

37

Taguig

Rockwell Power Plant Venue The Residences at Greenbelt Ayala Triangle Gardens Bonifacio High Street Burgos Circle Forbestown The Ventian Mall Mckinley Hill

Risking

Ordering

Payment

receipts. Owning the product purchased. Has time and legal cost.

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Pasay Ortigas Manila Robinsons Place Ermita DLSU Cybernook University Mall Alabang Town Center Asian Hospital SM Megamall Atrium San Juan Greenhills Promenade Ronac Art Center Mandaluyong Ortigas Park Rockwell Business Center SM Mall of Asia Newport Mall

Handle transactions on
ordering of the product(s) being offered.

Muntinlupa

Quezon City

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Cebu Asiantown IT Park SM Cebu Ayala Terraces Cebu Robinsons Cybergate Eastwood City Walk 2 Bellagio Square Tomas Morato Gateway Mall Gateway Cinema Level TriNoma Level 3 Outdoor Robinsons Galleria Trinoma Level 3 Indoor UP - Ayala Land TechnoHUB Eastwood Mall Centris Walk

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THE GAP ANALYSIS

Service Output Demanded by the customers

Service Outputs Supplied by the company

Analysis

Explanation

39

Advertisements for the four segments: Working people, students, coffee enthusiasts and
Bulk breaking Customers prefer coffee shops that sell coffee in sachets. Bulk breaking The Coffee Bean and Tea Leaf sell whole bean coffees in boxes of 10 for P400.00 SOD>SOS

The service output demanded by the customers is greater health conscious output supplied than the service by the company because The Coffee Bean and Tea Leaf do not sell coffee in sachets. Therefore, the company was not able to meet the expectation or demand of the customer. The service output demanded by the customers is greater than the service output supplied by the company because even though the retail stores of The Coffee Bean and Tea Leaf are located in some shopping centers, it still cannot cope up the demand of the customers of coffee shops near their place, on the libraries, on the bookstores and the like. On the other hand, it doesnt cater to the wants of the customers of offering free delivery. Therefore, the company was not able to meet the expectations or demands of the customer. The service output demanded by the customers is equal to the service output supplied by the company because The Coffee Bean and Tea Leaf values the time of their customer. They see to it that the waiting time doesnt take too long. Therefore, the company was able to meet the exact expectation or demand of the customer. The service output demanded by the customers is equal to the service output supplied by the

Spatial convenience Customers prefer coffee shops located in shopping centers, near the school or office, near their place. They also prefer coffee shops located in the libraries and book stores. Lastly, they prefer coffee shops which offer free delivery on their place.

Spatial convenience Some of The Coffee Bean and Tea Leaf retail stores are located in shopping centers such as Trinoma, Mall of Asia, Greenbelt, etc but there are only few retail stores located in household areas, libraries and book stores. Lastly, The Coffee Bean and Tea Leaf dont offer free delivery.

SOD>SOS

Waiting or delivery time Customers prefer coffee shops that serve the orders immediately.

Waiting or delivery time The Coffee Bean and Tea Leaf retail stores serve the orders immediately.

SOD=SOS

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Ads statements

Service Output / Description Spatial convenience: The Coffee Bean and Tea Leaf sell the new

One touch, one perfect cup. Enjoy lattes, espresso, and tea at home CBTL Single Serve System

CBTL Single Serve Beverage System wherein you can mix and enjoy your favorite drinks from the comfort of home! It is an easy to use, single serve beverage system that combines the handcrafted taste and quality that is the hallmark of The Coffee Bean & Tea Leaf.

Product Variety: The Coffee Bean and Tea Leaf gives its best to Taste Matters provide the desired taste of their products to their customers. They see to it that their customers will be satisfied to the taste of their products by offering different blends and flavors to choose from because for them, taste matters.

Youre invited! Cookies and cream ice blend open house

Product variety: The Coffee Bean and Tea Leaf offers new product that customers can try. They have this so-called featured drink for the day.

Sip Smart with Swirl rewards

Customer service: Customers can get exciting rewards whenever they purchase something in The Coffee Bean and Tea Leaf.

Demand-Side Gap Analysis Worksheet: (SOD versus SOS)

41

Segment Name / Descriptor (present and new)

Bulk breaking

Spatial convenience

Delivery / Waiting Time

Assortment / Variety

Customer Service

Information Provision

Major Channel(s) for this segment

SOD>SOS 1. Working people Product sizes availability

SOD>SOS Store Accessibility

SOD=SOS Product preparation and fast service

SOD=SOS Product diversification and product assortment

SOD=SOS Customer assistance SOD>SOS 24-hour service

SOD>SOS Retailer Promotional activities; Facts about the product

SOD>SOS 2. Students Product sizes availability

SOD>SOS Store Accessibility

SOD=SOS Product preparation and fast service

SOD=SOS Product diversification and product assortment

SOD=SOS Customer assistance SOD>SOS 24-hour service

SOD>SOS Promotional activities; Facts about the product Retailer

SOD>SOS 3. Coffee enthusiasts Product sizes availability

SOD>SOS Store Accessibility

SOD=SOS Product preparation and fast service

SOD=SOS Product diversification and product assortment

SOD=SOS Customer assistance SOD>SOS 24-hour service

SOD>SOS Promotional activities; Facts about the product Retailer

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SOD>SOS 4. Health conscious Product sizes availability.

SOD>SOS Store Accessibility

SOD=SOS Product preparation and fast service

SOD=SOS Product diversification and product assortment

SOD=SOS Customer assistance SOD>SOS 24-hour service

SOD>SOS Retailer Promotional activities; Facts about the product

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Supply-Side Gap Analysis Worksheet:

Channel Flow

Company Roles / Participation

Segment being served

Channels who bear the costs

Remarks (eliminate / expand / modify)

Physical Possession

The use of warehousing as a mean of storing their coffee beans. It carries storage and delivery costs.

Working people Students Coffee enthusiasts Health conscious

Retailer

Retain: They must maintain their physical possession flow.

Ownership

They are carrying their inventory cost.

Working people Students Coffee enthusiasts Health conscious

Retailer

Expand: Use of specialized inventory system to prevent damages of products especially when there are unexpected occurrences such as calamities Expand: They must broaden their promotional strategies so that it could increase awareness to their products and to persuade potential customers to actually purchase the product.

Promotion

They promote the products through the internet and online networking sites and sponsoring events.

Working people Students Coffee enthusiasts Health conscious

Retailer

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Risking

They change the products of the customers in cases that there is a mistake on part of the personnel (e.g. wrong blends of drinks, wrong sizes)

Working people Students Coffee enthusiasts Health conscious

Retailer

Retain: Nobody is perfect and we cannot avoid mistakes/errors. They must still pursue their policy on such unavoidable

Ordering

They manually get the customers orders and punch it to the computer system.

Working people Students Coffee enthusiasts Health conscious

Retailer End-users

Expand: On the part of the retailer, they must expand into automatic replenishment wherein a computer tracks levels of inventory in the retailers system and automatically sends a replenishment order to the supplier when stock reaches a previously agreed-upon low level and the use of accurate touch screen point of sale (POS) for employees.

Payment

They use machines to allow customers to pay through credit cards and able to give receipts.

Working people Students Coffee enthusiasts Health conscious

Retailer End-users

Retain: Accepting credit cards is a major trend in the business nowadays.

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Task 6 Worksheet 3A:

Channel

Channel Members and Flows they perform

Environmental / Managerial bounds

Supply-side gaps (Affecting which flow(s))

Planned Techniques for closing the gaps

Will these actions Create Other Gaps? (if yes, identify them)

1. The Coffee Bean and Tea Leaf retail stores to direct buyers and to the four segments (Working people, students, coffee enthusiasts and health conscious)

The Coffee Bean and Tea Leaf on Physical Possession, Ownership, Promotion, Risking, Ordering, Payment.

Environment: Loss of electricity during calamities or disasters. Physical Possession Choosing of the appropriate store locations. Government might impose higher taxes on farm products Increase in rental costs. Managerial: Employees might incur an error in punching items into the machine Few employees or poor job rotation Bureaucracy within the organization and incompetent employees Conflict with the management Ownership Promotion Ordering Payment.

Use of specialized inventory system to prevent damages of products especially when there are unexpected occurrences such as calamities Use of just in time system Advertise extensively, give flyers and make commercials to be broadcast on the leading television channels Use of accurate touch screen point of sale (POS) for employees Send staffs to trainings and seminars for them to improve.

No. Buying from The Coffee Bean and Tea Leaf retail stores closes the gaps between ordering and payment as well as physical possession and ownership. It will also intensify promotion.

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Summary of demand-side and supply-side gaps: Closing the gaps

Bounds Environmental (External) Flexible economic conditions such as inflation, gross domestic product, gross national product Government interventions such as imposition of taxes (VAT and EVAT) Unavoidable natural calamities

Gaps Demand-side

Closing the Gaps

Try to forecast properly the changing consumer Bulk breaking: Customers prefer coffee shops that sell coffee in sachets for their whole beans. Spatial Convenience: Customers want the store to be as accessible as possible. Customer Service: Customers are dissatisfied with coffee shops that are not open for 24 hours. Expand and choose the proper locations. Innovation of the operations and machines to further improve the quality of the products. Offer 24 hours service even on selected stores only. preferences so that the products and services will be properly supplied to the consumers especially to the four segments.

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Bounds Managerial (Internal) Bureaucracy in the organization Incompetent employees Unsupervised production Promotional Activities

Gaps Supply-side Some of the channels flow cost too much. Those costly operations must be balanced with the others and it must be adjusted so that the money that could be saved from those flows will be directed to other much important service outputs.

Closing the Gaps

Intensify the promotional activities of the company. Training developments, team building seminars and employee empowerment must be provided for the employees

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DISTRIBUTION STRATEGIES
Specific Objective for the program: for the company to maintain and increase their growth and competitive advantages and to further gain brand equity STRATEGIES (Proposed programs to be implemented) Due Date 1. ADVERTISEMENTS: to further enhance the brand awareness of target market in the Philippines. It maybe in a form of TV ads or Internet Ads through social networking sites. 2. TRAINING AND DEVELOPMENT OF EMPLOYEES: hiring more employees and providing them more training and team-building activities to enhance their skills towards customer relationship management. 3. ADDITIONAL VARIETY OF PRODUCTS: create new, exciting and healthy flavors to attract potential and loyal customers. 4. RETAIL EXPANSION: add more branches in Manila especially near the schools/universities and business offices. 5. INNOVATION OF MACHINERY USED: To improve the service and lessen the delivery time of an order.
TOTAL ESTIMATED COSTS FOR THE PROGRAM OF ACTIVITIES IN THIS CATEGORY:

Specify for Each Step Person(s)/ Estimated costs Channel(s) (include the source of responsible information) CBTL Php 5,000,000,00 Management

September 25,2011

October 29, 2011

CBTL Php 300,000.00 Management

December 5, 2011 Managers and Php 500,000.00 Employees February 20, 2012 CBTL Management Php 25,000,000.00

May 18, 2012

CBTL Php 2,500,000.00 Management

Php 33,300,000.00

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Description of the Proposed Strategies

It shows the specific objective for the program, for the company to maintain and increase their growth and competitive advantages and to further gain brand equity Due to CBTL current performance in the market, the team advised that the CBTL should consider our proposed strategies for further improvement of their company. The team believes if this were fully implemented, The Coffee Bean & Teal Leaf will, if not maintained, increase its growth and competitive advantages. First is to have their major advertisements through television commercials and printed advertisements for them to increase their brand awareness to their potential customers. Since they already into internet advertising through the use of social networking sites and their own website, they should also engage in the television advertisement as well as by giving printed ads. Television advertisement is a costly means of promotion but it will have a good impact since a lot of people spend time watching the television. Second is to properly train and fully develop their employees. This will make their employees be more competitive, knowledgeable and to be more effective and efficient in dealing with their customers on how to attract and build relationship with them. Third, by adding exciting and healthier variety of products in their menu, CBTL will surely attract customers especially those with health concerns who find nutritious foods and drinks as well as the health conscious segment. Nowadays, people want to try new things, therefore they prefer to choose from a wide variety of products. Another is that CBTL needs to be easily accessible to anyone especially the possible consumers. To obtain an increase in sales through having many customers, the team suggests that CBTL expands its branches to more accessible areas preferably near universities and other populated places. Lastly, innovation of machines used will help minimize the delivery and waiting time and results to positive word-of-mouth from customers. Most people value their time today, especially those who are working, therefore having innovations and more specialized machines can help the employees prepare the orders efficiently yet effective at the same time.

RECOMMENDATIONS

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1. Since this paper is only concerned to the business to consumer (B2C), it doesnt deal to the flows of negotiation and financing. The team did not eliminate any existing flows and channel members earlier provided. Instead, we propose that they must expand their ownership, promotion and ordering flows so as to create greater profit. 2. Based on our tallied survey, most of the coffee drinkers are not that aware of the CBTLs store and it is not their top-of-mind brand for the coffee shops, thus the company should conduct intensive promotion using television commercials as well as giving flyers to gain their brand awareness and to know where their store is located. 3. There are no service outputs to be eliminated. Instead, they must add some of it including those that the demanded by the customers are greater than what the company supplied. It includes bulk breaking. The company should provide whole beans in sachets and not just in boxes of 10. 4. Another service output to be added is the spatial convenience. Due to the high demand of the consumers about this service output of the company, they should expand to some places near schools and offices for them to serve better their segments especially the students, those who are working in BPOs, and other workers who love to drink coffee. 5. Customers really demand for proper accommodations as well as fast service, the company should provide seminars and trainings to their employees regarding fast and reliable customer service and on how to build better relationship among customers to achieve great customer satisfaction and develop loyalty to the shop. 6. The Coffee Bean and Tea Leaf must engage in 24 hr service to their branches near the offices since working people is one of their segments and it is really demanded by the customers. 7. In terms of information provision purposes, the company should also list down the benefits of drinking coffee so it would create awareness to the customers and to provide what is demanded by the their segments especially the health conscious group.

8. The higher the risk, the higher the return. Invest on high technology coffee blender that could help
the efficiency and fasten the cycle time. They should innovate on the machinery used to improve the service and lessen the delivery and waiting time of an order. All those money will be in the long run beneficial for the company.

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APPENDICES
GANTT CHART

The table shown was the Gantt chart of our projected strategies for The Coffee Bean and Tea Leaf. It is a chart that illustrates the proposed project schedule for the company being studied. The said proposal was strategically arranged based from the needs of the company in accordance to the service outputs demanded by the endconsumers. The said strategies were carefully decided by the team on to how much the money should be allotted in each strategy recommended.

Disclaimer Notice: It is only the proposal of the team based on the Distribution Plan conducted.

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QUESTIONNAIRE Good day! We are third year Business Administration major in Marketing Management students from the University of Santo Tomas, College of Commerce and Business Administration. We are conducting a survey regarding the consumer attitudes of people going to coffee shops to help us with our Distribution Plan. As a requirement, we are currently providing survey questionnaires to help us and to serve as our guide in constructing the plan. We hope that you could help us by giving some of your time by answering our survey. Thank you very much and may God bless you! Part I: Respondents Profile Name: (optional) ___________________________________________________________ Instructions: Choose the items that would best answer the following questions by putting ( ) check mark on the box provided. 1) Gender: Male Female 2) Age: below 16 years old 16 25 years old 26 35 years old 4) Educational Attainment: Some Elementary Elementary Graduate Some High School High School Graduate 36-45 years old 46-55 years old above 55 years old Some College Graduate degree Post-Graduate degree

3) Civil Status: Single Separated Annulled Widowed Married Living with a partner but not married Single parent 5) Occupation: Student Employed Unemployed

6) Home ownership: Own House Renting: how much? Below P10,000 P10,000 to P30,000 P30,001 to P60,000 living w/ parents living w/ relatives 8) Total Monthly Income (household): Below P10,000 P10,000 to P30,000 P30,001 to P60,000 Pateros Quezon City San Juan Taguig Valenzuela Others: ___________

P60,001 to P90,000 above P90,000

7) Household Size (including you): less than 3 9-11 3-5 12 & above 6-8 9) Current address: Caloocan Las Pinas Makati Malabon Mandaluyong Manila Pasig 10) Lifestyle: Outdoor Enthusiast Sports-minded Workaholic

P60,001 to P90,000 above P90,000

Marikina Muntinlupa Navotas Pasay Paranaque

Pleasure Oriented Ethical Others: ___________

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11. Do you drink coffee? YES NO (Terminate)

12. What kind of coffee do you prefer to buy? Instant coffee Whole Bean Coffees in coffee shop (Proceed to question #14)

13. What is your primary reason for not buying from a coffee shop? Too Expensive It is unhealthy Time-consuming I never got used to it I dont like the taste Others, please specify: ______________________ [The following questions apply only if respondents buys coffee from a coffee shop] 14. How often do you buy coffee from a coffee shop? Everyday Once a month Once a week Twice a month Twice a week Others, please specify: _______________________ 15. How much do you spend in buying coffee? less than P50.00 P 101.00 P150.00 P51.00 P100.00 above P150.00 16. What brands of coffee have you tried in the last 3 months? (multiple answers are allowed) Bos Coffee Starbucks Figaro The Coffee Bean & Tea Leaf Seattles Best Coffee Others, please specify: _______________________ Kopiroti 17. What brand of coffee do you usually drink more often? (single answer only) Bos Coffee Starbucks Figaro The Coffee Bean & Tea Leaf Seattles Best Coffee Others, please specify: _______________________ Kopiroti 18. Why do you prefer to drink in a coffee shop? Form of relaxation I like the ambiance of coffee shops It keeps me awake Stress reliever I like the taste Others, please specify: 19. How did you learn about the brand of coffee you usually drink? Television Stores itself Radio Online Newspaper Billboards Magazines Neighbors Friends Others, please specify: _______________________ Relatives 20. Do you prefer coffee shops that provide loyalty card? Yes No 21. Do you prefer coffee shops that provide discount coupons? Yes No

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Part II: Knowing the value added services demanded (service outputs) by the consumers. Instructions: Following are the common service outputs demanded by the consumers dining in coffee shops. Please respond by putting a check mark ( ) to the box that best corresponds to how much you agree or disagree with each statement according to the items below: 1 - Strongly Disagree 4 - Agree 2 - Moderately Disagree 5 - Moderately Agree 3 - Disagree 6 - Strongly Agree

Bulk Breaking I prefer coffee shops that sell coffee in sachets.

Spatial Convenience I prefer coffee shops located in shopping centers. I prefer coffee shops from any stores near the school or office. I prefer coffee shops from a retail store near my place. I prefer coffee shops which offer free delivery on my place. I prefer coffee shops located in the libraries. I prefer coffee shops located in the book stores.

Waiting or Delivery Time I prefer coffee shops that serve the orders immediately. I prefer coffee shops that give me something to read (books/magazines/newspapers) if my order takes too long.

Product Assortment or Variety I prefer coffee shops that offer variety of flavors or blends to choose from. I prefer coffee shops that offer variety of sizes that fits my needs. I prefer coffee shops that offer either hot or cold drinks. I prefer coffee shops that offer drinks fitted for diabetic and health conscious people. I prefer coffee shops that also provide pastries and light meals. I prefer coffee shops that also serve non-coffee based drinks.

Customer Service I prefer coffee shops that accept all major credit cards. I prefer coffee shops with accommodating personnel the moment I enter the store. I prefer coffee shops with baristas who assist me all the time. I prefer coffee shops which provide free wifi service. I prefer coffee shops which allow me to use their plug outlets for free in charging my gadgets (laptop, cellphone, etc.). I prefer coffee shops that are open for 24 hours.

55

Information Provision 6 I prefer coffee shops that provide nutritional facts to the product that I will buy. I prefer coffee shops with complete information in the menu, including the sizes available and their corresponding prices. I prefer coffee shops that have a website so that I could check the products that they offer beforehand.

THANK YOU FOR YOUR COOPERATION AND PARTICIPATION! MAY GOD BLESS YOU! (NOTHING FOLLOWS)

RESULTS OF MARKET RESEARCH

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SOURCES:

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http://www.coffeebean.com.ph/ http://coffeebean.com/ http://www.figarocoffee.com/ http://www.seattlesbest.com.ph/index.html www.krispykreme.com.ph/ http://www.quickly.com.ph/ http://www.icemonster.com.ph/ http://www.dairyqueen.com.ph/ http://www.zagat.com/fastfood http://www.learnmarketing.net/Price.htm http://www.scribd.com/doc/3815042/The-Coffee-Bean-Tea-Leaf-Malaysia-Industry-Analysis http://www.scribd.com/doc/42314789/Marketing-Plan http://www.my3cents.com/showReview.cgi?id=96165 http://titaniumrunner.net/2010/11/top-10-coffee-places-below-100-pesos-in-metro-manila/ http://www.franphil.com/zagu-pearl-shake-franchise/ http://www.franphil.com/fruitas-fruit-shakes-franchise/ http://www.referenceforbusiness.com/management/Or-Pr/Pricing-Policy-and-Strategy.html http://marketingteacher.com/lesson-store/lesson-pricing.html http://www.facebook.com/coffeebeanphilippines http://twitter.com/#!/TheCoffeeBean http://www.baygateways.net/pubs/Grants_Guidance_Distribution_Strategy.pdf http://www.pwc.lu/en/fund-distribution/docs/pwc-gfd-market-strategy.pdf Marketing Channels Book by: Coughlan, Anderson, Stern, El-Ansary

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Distribution Management (BA20) Brainstorming Sessions Attendance: Tasks 1-2

Date & time July 7, 2011 3-5 p.m Date & time July 8, 2011 3-5 p.m Date & time July 9, 2011 9-11 a.m Date & time July 11, 2011 3-5 p.m present Date & time July 12, 2011 3-5 p.m present Date & time July 13, 2011 3-5 p.m present Remarks

NAMES

1. GELING, MARIA GUADAGRACIAPE M. 2. LOPEZ, ALEJANDRO CHRYS, V 3. PAGANA, SHEENA MARIE S.

present

present

present

present

present

present

present

present

present

present

present

present

present

present

present

4. RUBIO, ARBERT M.

present

present

present

present

present

present

Distribution Management (BA20) Brainstorming Sessions Attendance:

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Tasks 3-5
Date & time July 22, 2011 3-5 p.m Date & time July 27, 2011 3-5 p.m Date & time August 5, 2011 3-5 p.m Date & time August 7, 2011 3-5 p.m (on-line session) on-line Date & time August 15, 2011 3-5 p.m Date & time August 27, 2011 3-5 p.m Remarks

NAMES

1. GELING, MARIA GUADAGRACIAPE M. 2. LOPEZ, ALEJANDRO CHRYS, V 3. PAGANA, SHEENA MARIE S.

present

present

present

present

present

present

present

present

on-line

present

present

present

present

present

on-line

present

present

4. RUBIO, ARBERT M.

present

present

present

on-line

present

present

Distribution Management (BA20) Brainstorming Sessions Attendance: Tasks 6-8

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NAMES

Date & time Aug. 31, 2011 7-8 p.m (on-line session)

Date & time Sept. 1, 2011 3-5 p.m

Date & time Sept. 2, 2011 3-5 p.m

Date & time Sept. 6, 2011 3-5 p.m

Date & time Sept. 7, 2011 3-5 p.m

Date & time Sept. 8, 2011 3-5 p.m

Remarks

1. GELING, MARIA GUADAGRACIAPE M. 2. LOPEZ, ALEJANDRO CHRYS, V 3. PAGANA, SHEENA MARIE S.

on-line

present

present

present

present

present

on-line

present

present

present

present

present

on-line

present

present

present

present

present

4. RUBIO, ARBERT M.

on-line

present

present

present

present

present