BUZZ Coffee and Winehouse
2315 Cascade Road
Atlanta, GA 30311
Market and Consumer Research Analysis
Within eleven months of Buzz Coffee’s opening, it was shut down due to the pandemic. Most coffee shops rebounded by shortening hours, smaller menu selections and offering delivery service. Buzz did that and more and has the ability to grow a thriving monthly coffee and wine subscription business. Buzz needs to advertise on other platforms and to other markets and demographics including coffee enthusiasts, small businesses and home-based businesses.
Buzz Coffee and Winehouse have a target market of both males and females ages 30 to 40 years of age, college-educated, homeowners, an income of $45-70K annually, and are decision-makers. Buzz has built a strong group of loyal clients who enjoy and patronize regularly and the coffee, customer service, and food are superb.
Female, lives in southwest Atlanta, Georgia in a sleepy little community called Beecher Hills and she is 34 years old, a college graduate who works from home and earns $71,000 per year. Jennifer is a single mom and recently divorced and shares custody with her former husband. Jennifer is an IT Specialist and loves video games, home decorating, travel and suspense dramas, the arts, and long walks in her dense green and lush community. She communicates predominantly on Twitter and Linked In but has Facebook and Instagram accounts and posts on her community’s Next-Door platform almost every day. Favorite words are touché, entrepreneurial, and glean. Jennifer has no plans to continue her education currently seeing how she is doing well in her position and wants to stay with her company if she continues to work from home four days a week.
Buzz Coffee and Winehouse is the perfect neighborhood location for remote workers and home-based business owners to step away from work and relax have a cup of coffee, breakfast, or lunch. Buzz offers an impressive variety of locally roasted, small, batched coffees exclusively chosen by the owner proprietor. A modern clean aesthetic with electrical outlets tucked into the bench seating and the courtyard is a great outdoor area for meeting clients and friends.
Brand Positioning Statement
BUZZ’ Market and Consumer Analysis Abstract
Buzz Coffee and Winehouse’s research consisted of finding sources from the coffee industry which included local and overseas roasters, restaurant owners, designers, and writers, social media influencers to better understand the business and how it runs socially as well as front and back of the house. Also researching KPI’s for tracking restaurants, online sales, and visitor engagement.
Buzz Coffee and Winehouse owner Trey Perry want to double the company’s sales by end of 2022. Trey Perry created his plan for BUZZ six years before opening his coffee shop/ community gathering spot. When analyzing the products, location, customer service, social media and sales goals have been achieveable. Growing the business to offer online sales has never been better for coffee and wine.
A well-managed monthly membership sales program would be a good plan for Buzz’s sales goals. Also targeted marketing, which is tracked for online advertising would raise the customer interactions. A marketing campaign for Buzz coffee and wine will put the business and the owner in front of new markets where the owner teaches about coffee and shares with influencers and leaders in the coffee community near and far.
Company Overview and Current State Buzz’ Organizational Background
1: The specific goal is to drive sales. I am not sure that he has fully bought into growing the monthly coffee club subscription, his interest is in posting that drive comments on social media and in-store sales. By tapping into monthly passive sales of coffee not only can the purchases be made online but the customer has to come into the business to pick up the coffee and there is an opportunity for more sales or add-on sales in this case.
2: Presently Buzz has an assistant part-time manager that posts on Thursdays, Fridays, and Saturdays on Facebook and Instagram and has over 1100 followers but rarely do they respond to the posts. Posting is a huge part of the job duties. The AM has not figured out how to communicate with Buzz’s followers and clients. Buzz only uses Instagram and Facebook to post about its events, but rarely posts promotions that benefit the customer. BUZZ worked closely with the community to open the store and Trey Perry has a close relationship with the city council representative for the district that his business resides in, many of his clients and neighboring businesses on the corridor.
3: Buzz’s marketing plan will be to raise interest in all of the products, services and community participation the business has to offer. Driving clientele into the business with new product offerings from local food vendors and raising wine sales through creating better offerings that appeal to their existing patrons. Implementing a Buzz monthly coffee and wine subscription program will be one of the major components to growing sales through online marketing and foot traffic. The plan will be to post three different marketing pieces per week regarding the coffee club, weekly events on Facebook, Instagram, Twitter and a business posting to LinkedIn.
The staff members will post selfies with clients and of events as well on Thursdays, Fridays and Saturdays to an established and connected FB and Instagram accounts and all messaging will carry the same message of Art, Community and Culture. Buzz has an incredible outdoor space which will be noted and marketed heavily in most content as well as event planning services will be added. I want to engage readers and will begin a Short Story Series by summer that will consist of 800-word stories that I can post in the feeds of Instagram and Facebook and continue on Buzz’ site and will follow that up with the writer doing a reading and Q&A session with patrons. Because of Buzz’s demographics, this approach to educating clients and selling great coffees and wines will be a perfect fit and the KPI’s will be easy to follow to see the sales and online engagement rates improve across online and in store sales.
Primary Research Findings Results
The global coffee market, which was valued at approximately USD 102.15 Billion in 2019, and is expected to reach revenue worth USD 155.64 Billion by 2026, is set to record a CAGR of nearly 6.2% over the period from 2020 to 2026. Coffee provides a revitalizing effect owing to the caffeine present. As of October 6, 2020, on average, within the industry, a small to medium-sized coffee shop can earn anywhere from $60,000 to $160,000 in personal income for the shop owner (Natter).
The plan for Buzz is to give it a reboot, the business was doing well before the pandemic happened and people are being cautious and driving the pre-pandemic clientele back into the business will be number one. By using great online content, pictures and community stories along with music, art, game and movie nights, wine tastings, vision board and paint and sip events invitations to come into the store and stay for a while.
- Buzz is the only coffee business in the neighborhood for 3.2 miles.
- Buzz sales coffee and wine and is the only specialty wine sales for 3.7 miles.
- Buzz serves breakfast and lunch no other restaurant does in the area.
- Lack of morning coffee sales for people who drive to work.
- Buzz sits on the opposite side of the street from morning traffic flow.
- Buzz has little to no online sales.
- Buzz can host events inside of the store and outside in a detached greenspace.
- Buzz needs to grow its morning coffee sales.
- Grow sales through coffee and wine monthly subscriptions.
- Loss of sales due to new businesses opening on the corridor.
- Lack of healthy food selections.
- Lack of marketing to better promote business online and throughout the neighborhood competitors, do not target Buzz’s demographic.
- Competitor’s Name: Starbucks
- Overview of Competitors:
Starbucks has been at this location since 2006 and was built as a free-standing business and has always been a top producing location this was witnessed by the renovation in 2015. The store is located on a major business corridor, on the corner and is highly visible. The reputation for this store has always been a great community spot, for business meetings, serious chess players meet here Thursdays thru Sundays and bring other enthusiasts. The pandemic has shortened the companies store hours for all locations. The clients have not been as plentiful for the past eight months as it was pre-pandemic. This is a solid business and expect it to only get better as the Starbucks corporation and franchisees have a lot of money and great advertising.
- Products/services offered: Coffee and tea beverages, breakfast, lunch, and snacks.
- Pricing: Starbuck’s is slightly higher than most coffee shops.
- Revenues: this location averages $722,000 since 2010 and has been a million-dollar store for two years.
- Location: 3660 Cascade Rd in southwest Atlanta, GA 30331, https://www.starbucks.com/store-locator/store/11404/
- Customer segments/geographies served: Age groups are varied for this location 19 to 25 and 26 to 40 and 41 to 65 all are from southwest Atlanta serving zip codes 30311, 30331, 30344 and 30318.
- Competitor’s key strengths Name recognition, hire local talent, great customer service, location and their marketing research tool, My Starbucks Idea platform. My idea gives visitors the opportunity to go into the application and add their wants and wishes for an experience with Starbucks. This is an opportunity to survey, ask cultural questions and to respond directly to a specific need inside their own platform.
- Competitor’s key weaknesses: Closes at 5 PM every day, congested parking lot, unkept trash area that is adjacent to the drive through entrance which can be confusing during morning rush hour, patio area is uninviting.
BUZZ Coffee & Winehouse PR Campaign Plan for Spring 2022.
Buzz’ Organizational Background
- Business founded in 2016, opened May 2019.
- Tre Perry is sole owner.
- Coffee retailer
- Four employees
- One location, other products, wine, cups, mugs t- shirts, gift cards, 2.5 mile area between nearest Starbucks.
- Buzz Coffee has yet to experience 12 full months of open business due to pandemic, steady, slow growth.
- Sales from products, coffee and wine are the best sellers and t-shirts, cups and art.
- Owner operated part time and one assistant manager part time, and two part timers for the past eleven months during shortened hours.
- Cascade Heights is an affluent Black American community in southwest Atlanta, average per capita income $65K. Primarily a senior community but gentrification has taking place over the past six years and new residents are young, two income households that collectively earn $150K, 55% senior, with healthy disposable incomes, 45% 24 to 64 years of age, women primarily are Buzz’ clients.
- No other business’ connected.
- All proceeds come from the sales of products and event space rental.
- Two businesses, Starbucks, 2.5 miles and Dunkin Donuts 3 miles away are competitors.
- The global coffee market, which was valued at approximately USD 102.15 Billion in 2019, and is expected to reach revenue worth USD 155.64 Billion by 2026, is set to record the CAGR of nearly 6.2% over the period from 2020 to 2026. Coffee provides a revitalizing effect owing to the caffeine present. As of October 6, 2020. On average, within the industry, a small to medium-sized coffee shop can earn anywhere from $60,000 to $160,000 in personal income for the shop owner (Natter).
- Owner wants the business to double in sales by end of 2022 second quarter.
Buzz PR Plan
Buzz’s marketing plan will be to raise interest in all of the products, services and community participation the business has to offer. Driving clientele into the business with new product offerings from local food vendors and raising wine sales through creating better offerings that appeal to their existing patrons. Implementing a Buzz Monthly Coffee and Wine Subscription Program will be one of the major components to growing sales through online marketing and foot traffic. The plan will be to post three different marketing pieces per week regarding the coffee club, weekly events on Facebook, Instagram, Twitter and a business posting to LinkedIn. The staff members will post selfies with clients and of events as well on Thursdays, Fridays and Saturdays to an established and connected FB and Instagram accounts and all messaging will carry the same message of Art, Community and Culture.
Buzz has an incredible outdoor space which will be noted and marketed heavily in most content as well as event planning services will be added. Engaging readers beginning a Short Story Series by summer that will consist of 800-word stories that can post in the feeds of Instagram and Facebook and continue on Buzz’s site and will follow that up with the writer doing a reading and Q&A session with patrons.
- Buzz worked closely with the community to establish itself. Trey Perry has lived in the neighborhood and knew what was needed, his track record for community participation has been excellent.
- Buzz has not launched any new campaigns online over the past 6 months.
- Buzz’ online presence, Buzz Coffee & Winehouse, Buzz on Facebook, GrubHub Menu, BUZZ ON INSTAGRAM and two other restaurant platforms, with a contact page.
- Buzz’ platforms discussed past events, menu selections, mostly pictures and very little written content.
- Not much feedback is being sent to Buzz at this time.
- Buzz’s reputation is good with its patrons, hands down the coffee is preferred to Starbucks. The employees all seem to be very satisfied with their positions, the community on a whole is very pleased to have this business on the corridor.
FUNDRAISING EVENT PITCH created by Sheryl Brown
Buzz’s position in the community is good with regular customers and steady sales. I will create content that will enhance the wine program and grow the monthly coffee subscription by posting very specific content for both products on all three platforms. I will create a LinkedIn business page to discuss more of the business culture of coffee shops while also promoting the wine selections, coffee club, and location for small business gatherings that are socially distant. The Instagram page looks good, but I will begin to post within the feeds and do the same with the Facebook page. The Facebook page needs attention so I will add new photos to the cover and use the same messaging across all platforms. The Buzz site is in need of content to include all events and new product offerings and weekly events.
Campaign Goals for Future Business Growth
My plan for Buzz is to give it a reboot, the business was doing well before the pandemic happened and I feel people are being cautious and I want to drive the pre-pandemic clientele back into the business. I will use great online content, pictures, and community stories along with music, art, game and movie nights, wine tastings, vision board and paint and sip events. I will also serve as the event planner and will include that information in most content.
The biggest challenge is more of a phycological problem, Buzz sits on the side of the street opposite to the morning traffic flow. I will introduce a Morning Coffee Car Hop program from 7-9 AM, if that goes well, up the game and purchase an app that allows Buzz to accept online orders that can be prepared and ready for curbside pickup within ten minutes. This will require a launch, signage, and good communication directed at that specific morning demographic.
Clients and Pitfalls
I do not foresee any pitfalls at this point because I was careful to cover all interests and concerns upfront. I have worked with Tre Perry as a community engagement leader, and we communicate very well with each other. I am also good at pivoting when needed.
Elisabeth Natter, Updated May 17, 2019, How to Open a Coffee Shop and the Estimated Annual Revenue, Small Business Chronicle.com, https://smallbusiness.chron.com/open-coffee-shop-estimated-annual-revenue-17563.html.
Buzz Coffee and Winehouse Company Bio, Constituency Groups,
And Media Outlets.
My capstone client Buzz Coffee and Wine House is located in an affluent Black American community in southwest Atlanta, Georgia, and was established in 2019. Buzz has one owner Tre Perry who works alongside four other employees and offers impeccable service and good coffee and food selections. Buzz is still finding its way and has yet to be open full-time for a full entire year due to the pandemic. Buzz has reduced its hours as most coffee shops including Starbucks, had to make the numbers work. The truth about coffee sales is that it slows down after 2PM even though it is the fastest-growing food category in the USA and good coffee shops clear $106, 000 plus per year.
Buzz has a good coffee and wine selection and offers many events and activities for clientele and a $4. discount after 10 purchases made by a customer. The space itself is clean and modern with WIFI and electrical outlets built into the long banquette that serves as the main seating. Buzz was challenged with the seating design with Covid but the City of Atlanta stepped up and created a parklet in front of Buzz which is outdoor seating that takes up three parking spaces and allows for the spaced-out seating that is required during this time. Buzz’s sales have sustained and improved with the new hours and may not change much in the future.
Buzz Coffee and Winehouse Constituents
Buzz’s demographic is 24- 65-year-old, educated, both male and female, with incomes of $65K and up, homeowners and decision-makers. Upon Buzz’s opening, there was a managerial hiccup this was rectified and immediately the clientele grew and customers were returning repeatedly a couple of times a week and attending the planned events too. Buzz has become a mainstay that is visited by most of the neighbors who once frequented Starbucks 3.2 miles away.
Buzz has several local businesses that they buy from and I have noticed the changes in coffee roasters, food, beverage vendors and recently that Buzz has begun carrying Coca-Cola products because they are king in Atlanta. I do believe that Trey Perry is a good businessman and he strives to create good business partners.
BUZZ has a small staff of 4 part-time employees and Tre Perry serves a part-time role. All employees are trained on every aspect of the business and all seem to be very happy with part-time hours, location, and the business model itself. The under 18 employees are not allowed to handle the wine merchandise not even to sell.
Business Owners/ Stakeholders
The business corridor has enjoyed Buzz’s entry to the community and all seem to patronize even the ones that sell coffee. Buzz was very careful when planning its menu not to sell the same items as his fellow business owners so as not to create competition. Buzz is a member of the business association and never once has there been a complaint about Buzz from the organization.
These are my choices for community hard-hitting reporters who cover SW Atlanta.
Christine Sperow, Fox 5 WAGA is an Emmy-winning journalist, she is also the co-anchor the “FOX 5 News Edge”, twitter.com/ChristineOnTV
Rebekka Schramm, CBS 46 WGCL, anchor reports on stories that impact families and communities in Atlanta, https://twitter.com/SchrammCBS46
Karen Greer, CBS 46 WGCL, reporting anchor and community engagement manager for the CBS46, Twitter@KarenGreerCBS46.
Shiba Russell 11Alive, WXIA, reporting on communities and change-makers, twitter.com/ShibaRussell.
For more information on BUZZ Coffee & Winehouse contact Sheryl Brown at firstname.lastname@example.org, 404.860.2717.