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Stomping Grounds IBP Plan

MKT 410
Group Caal+Jach
Casie Tindell, Alexa Probst,
Justin Mattingly, Zach Wells, Jordan Sharp

Table of Contents
Introduction
3
Executive Summary
Overview

Situation
Analysis.
4
Historical Content
Industry Analysis
Market Analysis
Competitor Analysis
Objectives
.. 9
Criteria for Success
Time Frame
Budgeting
.. 9
Strategy
... 11
Execution
13
Copy Strategy
Media Plan
Radio
IBP
References
... .16

Introduction
Executive Summary
This IBP plan is for the cafe Stomping Grounds, located on 303 Welch
Avenue #101 in Ames, Iowa. Stomping Grounds is one of the most popular
cafes amongst Iowa State University students and local residents. Founded
in 1992, owner Jonathan Reed takes great pride in providing quality food
and beverages in his cafe. Stomping Grounds delivers a versatile
environment and a location that caters to all lifestyles.
The goal of this plan is to analyze the market for Stomping grounds,
including the current industry and competitors, to implement an effective
advertising effort. We want to make the consumer more aware of Stomping
Grounds and its offerings at Iowa State University and in the Ames area. The
result will lead to increased loyalty among new and returning consumers.

Overview
We will be targeting semi health-conscious young professionals who are
between the ages of 20-34. These individuals primarily live in the
Campustown and surrounding areas in Ames, Iowa. As they are conscious
about appearance, ambitious, heavy social networkers, and enjoy
socializing, this aligns very well with our advertising objectives.
Our budgeting method revolves around percentage of sales. We will
allocate a minimum 6% of sales to advertising, which will increase 1%
annually and cap at 12%, given minimum sales increases are met. To do so,
we plan on utilizing social media, mainly Facebook and Twitter, to post news,

updates and promotions for Stomping Grounds. Print ads placed in the Ames
Tribune, Iowa State Daily, and Ethos magazine will elicit interest in Stomping
Grounds. Radio spots on KCYZ 105.1, KURE 88.5, and KDXA 106.3 will play a
catchy jingle to maximize this awareness as well. Lastly, sales promotions,
including student discounts and loyalty programs, will ensure new and
current consumers will become increasingly loyal to the cafe. All objectives
and strategies will be implemented within the next twelve months. They will
be measured for success each month.
This plan is intended to define a clear position for Stomping Grounds among
its competitors. We aim to improve consumers beliefs and values regarding
the cafe and convert one-time Stomping Grounds consumers to repeat
consumers by eliciting interest and excitement towards the cafe. This, as a
result, will increase Stomping Grounds top-of-mind awareness, store traffic,
and sales.

Situation Analysis
Historical Context
Client Objectives
Since their start in 1992, Stomping Grounds continues to provide their
customers with an all-encompassing experience by delivering a versatile
environment and location that caters to all lifestyles, while also offering a
multitude of quality food and beverage options.
Client Products & Services
Stomping Grounds provides its customers with an array of products, such as
their popular freshly roasted coffee and espresso. They also offer herbal tea,
breakfast, lunch and dinner menu, beer and wine lists, and desserts.
Stomping Grounds products include:
Freshly made sandwiches, crepes, salads, and soups
Vegetarian food options- salads, soups, sandwiches
Bakery items and desserts- muffins, scones, cakes, pies
Beverages- freshly made coffee and espresso, tea, beer & wine, smoothies,
juice

The atmosphere provides a place where customers can work, meet, relax, or
have a nice conversation with a friend. These products and services make
Stomping Grounds a go-to place to relax at any time of the day.
Target Market
Stomping Grounds targets their products and services to semi healthconscious young professionals who are between the ages of 20-34. These
individuals primarily live in the Campustown and surrounding areas in Ames,
Iowa. Their main goal by targeting this audience is to provide these young
professionals with the perfect environment for work, studying, networking,
relaxation, and simply having a friendly conversation, all while enjoying
premium quality food and beverages.
Demographics
Age: 20-34 (Ames median resident age is 23.8)
Location: Ames area, Iowa State University Campus
Gender: Men and women (In Ames, Males make up 52.7% and females
47.3%)
Race: Primarily caucasian, followed by Asian, African American, Hispanic (In
Ames, 82.8%, 8.9%, 3.6% and 3.2%, respectively)
Marital Status: Single or married w/o children
Education: Degree in progress/College graduate
Occupation: Full time or part time student/Full-time professional
Income: $30,000-$45,000 (Median household income of Ames residents is
$41,399)
Socio-economic Status: Low-Mid
Psychographics
Attitudes/Opinions: Conscious about appearance, ambitious, diversified,
environmentally conscious, desire an area to feel productive/important, seek
inclusion, place high importance on professional life, place high importance
on social life, refined taste.
Lifestyle: High disposable income, heavy social networkers, active, music
lovers, bar-goers, netflix and TV series watchers, philanthropists.
Interests: Trendy products, fashion, art, reading, fitness, sports, socializing
and networking, traveling, family and friends, the environment.

Industry Analysis

The coffee shop industry has largely grown over the past decade.
Specifically, the market for specialty coffees has grown as consumers are
becoming more knowledgeable on specific coffee-based drinks and how
they are made. Customizing and quality are ways for the coffee shop
industry to create loyalty, and increase sales among consumers. Consumer
spending has grown over the years and has supported the industry's
growth, as consumers have been more willing to spend on small luxuries like
coffee since the recession.
Coffee consumption has shown a steady 2.5% growth rate in the United
States over the last decade. In 1994, total sales of coffee were
approximately $7.5 billion with specialty coffee representing 33% of that.
The retail coffee industry is thriving in all areas of the U.S. The local climate
with long rainy seasons, drives consumers to consume hot non-alcoholic
beverages. At the same time, hot dry summers drive people into cafes to
order iced drinks. Further, coffee has really become a part of the lifestyle in
the U.S. Its coffee drinkers are in favor of well-prepared, strong coffee-based
beverages, which they can consume in a relaxing environment.
Coffee shops compete with other segments of the food and beverage
industry, such as fast food and quick-service restaurants, designed for
customers with budgets. The overall revenue generated by the coffee and
snack shops industry in the U.S. was at an estimated 27.8 billion U.S. dollars
in 2012 according to Statsita.
About 50 thousand stores were considered to be part of the U.S. coffee and
snack shops industry in 2012, according to an IBISWorld industry report.
Starbucks is the biggest player in the segment with more than 11 thousand
stores in the U.S. and another seven thousand worldwide. Dunkin Donuts
operates more than seven thousand stores in the U.S. and another three
thousand worldwide.
Consumer taste and personal income drive demand. The profitability of
individual coffee shops relies on their ability to have an ideal location, drive
store traffic, and deliver high quality products. Small companies can
compete with larger companies by serving a local market, offering
specialized products, or providing excellent customer service. Large
companies have a higher advantage in business such as marketing, finance,
and purchasing.

Market Analysis
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The coffee market in Ames, Iowa consists of current users from ages 16-20,
21-34, and the elderly. However, the majority of the market consists of
young professionals, ages 20-34. Young professionals make up about 44% of
the Ames population, primarily because of the large number of Iowa State
students. Individuals who are considered light users of the coffee industry
are those who visit Less than 2 times in 30 days, have low commitment
levels, and who only visit cafes for special occasions. Medium users of this
industry are the individuals who visit a cafe or coffee shop 3-6 times in 30
days and have a moderate commitment level to certain cafes. These
consumers categorize from professors and young professionals on lunch
breaks, to families visiting for the occasional dinner/lunch. Lastly, those who
are considered heavy users of the coffee industry visit more than 7 times in
30 days and have the heaviest commitment levels to certain cafes and
coffee shops. In Ames, the heaviest users are Iowa State University
students. Students account for the majority of coffee shops and cafes sales
are the most loyal customers who visit frequently for a quick meal, drink, or
study session.
Heavy users of coffee shops and cafes are the individuals who normally
have a high disposable income to spend on luxury items, like coffee. These
individuals are also heavy social networkers and use these cafes as a meetup space for friends and colleagues, while also buying a coffee or treat. Most
cafe-goers view the experience as a luxury, a place that serves quality
beverages and foods at a reasonable price. These users may feel motivated
to sit down at a cafe because of the atmosphere and ambience. Cafes
provide users with a relaxed and friendly environment for studying or for
meeting with a business colleague.

Competitor Analysis
Ames, Iowa has a variety of locally owned cafes and restaurants that are
available to the public. Stomping Grounds main competitors in the industry
all have an established presence in the market. The major competitors of
Stomping Grounds are Arcadia Cafe, Cafe Beaudelaire, and Cafe Milo.
Arcadia Cafe
Arcadia provides a menu consisting of specialty coffees, pastries, desserts,
and other beverages. They are located in Ames, Iowa near Iowa States
campus. They have free wi-fi, a gallery of art, and a drive through window.
Arcadia Cafe has several strengths consisting of their widespread menu,
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quality of coffees and desserts, friendly service, good atmosphere, unique


wooden tables from Rock Island Illinois, and reasonable prices. Several
weaknesses consist of their location, limited hours, and a small interior
space. The strategies that Arcadia Cafe uses to draw in business would be
their varieties of coffee that are all roasted in-house and available in many
types such as espresso, pour-over or drip. Along with their coffee, they use
the strategy of freshly baked pastries and desserts to draw in crowds.
Arcadia Cafe has a website where they provide location, their menu,
methods, about them, and contact information. They heavily rely on word of
mouth techniques to promote their business. They also use a social media
through Facebook to promote their daily products, specials, and events.
Cafe Beaudelaire
Cafe Beaudelaire is a Brazilian-style cafe that serves a large menu of
appetizers, main dishes, brunch, desserts, and beverages. They are located
in Ames, Iowa right on the outskirts of Iowa States campus. They have free
street parking, sit down service, and free wi-fi. Cafe Beaudelaire has several
strengths consisting of flavorful food and drinks, great atmosphere, weekly
specials, and a good location near Iowa States campus. Some weaknesses
consist of: bathrooms not being handicapped accessible, limited seating,
and pricier food. The strategies Cafe Beaudelaire uses are their unique
cultural food that they serve, along with their inviting atmosphere. Cafe
Beaudelaire has a website that goes in depth with their menu, about us
information, drink menu, and location. They use a variety of social media
such as Twitter, and Facebook to promote their cafe. They also provide
specials for their customers for each day of the week, and lunch specials
during business days.

Cafe Milo
Cafe Milo is a an american cafe and restaurant that serves coffee,
sandwiches, soups, salads, and desserts. They provide live music on the
weekends, swing dancing once a week and special wine tasting events.
They are located on the west side of Ames, Iowa. They provide free wifi,
walk in seating, open power outlets, take out, parking and outdoor seating.
Cafe Milo has several strengths consisting of a pleasing atmosphere, high
selection of food, friendly service, and decorative interiors. Some
weaknesses consist of their location only targeting West Ames, and higher
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priced food. Cafe Milo uses many promotion techniques to draw in new
customers and maintain loyal customers. They work with the app
Foursquare, and if a customer checks into the app, they receive discounts
on their orders. They also provide specials for their consumers for each day
of the week. To maintain their loyal customers, they have a frequency
program consisting of a punch card where customers can get a punch off for
every drink purchased and on the 10th punch, they receive a free drink of
their choice.
Stomping Grounds
Stomping grounds is a cafe located within walking distance from Iowa
States campus in Ames, Iowa. They serve a variety of specialty coffees,
teas, beer, wine, sandwiches, and desserts. They provide indoor/outdoor
seating, wireless internet, live performances, and street parking. Some
strengths that Stomping Grounds possesses are their ideal location right
outside of campustown, versatile environment, variety of food and drinks,
large open seating, interior paintings available for purchase, timely hours,
and pleasing atmosphere upscale wine/beer selection, . Some weaknesses
they have are their time-consuming service and limited street parking.
Stomping Grounds does not use any current promotion strategies for their
cafe.

Objectives
There are several objectives we recommend Stomping Grounds focus on:
Increase consumer awareness of Stomping Grounds at Iowa State University
and in the Ames area.
Define a clear position in the Ames coffee shop among competitors (Caf
Milo, Caf Beaudelaire, and Arcadia Caf) Stomping Grounds caters to all
lifestyle needs with a multitude of quality food and beverage options (beliefs
and attitudes).
Convert one-time Stomping Grounds consumers to repeat consumers.

Criteria for Success


The success of these objectives will be measure by the following:

At least a 20% increase in consumer awareness is noted within six months,


and a 40% increase in consumer awareness within 12 months of
implementing this plan (e.g. via social media followers/impressions and
brand recall/brand recognition surveys).
Iowa State students and Ames residents choose Stomping grounds as their
No. 1 coffee shop choice within 12 months of implementing this plan (e.g.
via focus groups/surveys and being voted Best Coffee Shop in Ames in the
Ames Tribune and Iowa State Daily).
At least 10% of Stomping Grounds customers are enrolled in the rewards
program within 12 months of implementing this plan.

Time Frame
Our recommended objectives for Stomping Grounds are set for the next 12
months beginning this month (December) and ending in December 2015.

Budgeting
The proposed advertising budget for Stomping Grounds uses a percentageof-sales model. The media vehicles that will receive this funding include
radio, local print, and social media. These vehicles tend to be the most
commonly used within the target demographic.
We estimate Stomping Grounds annual sales to be $900,000. Given this
information, a starting budget of 6% minus agency compensation of
$300/month will be allocated to advertising, totaling $50,400. Advertising
performance will be closely monitored. If annual sales increase by a
minimum of 1.5%, this budget will increase 1% annually and cap at 12% of
annual sales. It is important to note that this increase in funding will be
frozen if annual sales do not increase by the minimum amount. The
breakdown between the media vehicles is as follows:
50% ($25,200) will be allocated to radio spots.
35% ($17,640) will be allocated to print ads.
5% ($2,520) will be allocated to social media.
Radio will be focused within the Ames area on three local radio stations with
one additional holiday station for seasonal advertising: KCYZ 105.1, KURE
88.5, and KDXA 106.3 These stations are exclusive to the surrounding area
and the listening demographic closely fits the targeted demographic at
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Stomping Grounds. Additionally we propose the use of KMYR for seasonal/


holiday advertising. In terms of print, the Iowa State Daily, Ames Tribune,
and Ethos magazine will be utilized. Advertisements here will focus heavily
upon full-color spots. Black and white may be included, budget permitting.
Social media will center on Facebook and Twitter, where updates about the
cafe can be posted. This will provide resources to those seeking more
information about Stomping Grounds.
The following table illustrates our Stomping Grounds IBP plan budget and
money allocation for all media vehicles in our media plan.

Figure 1. Monetary allocation

Radio

Print

Social Media

KCYZ 105.1 - 201 spots


(40% of radio budget)

Ames Tribune
50% of print budget
Full color spot= $195 (45 spots)

Facebook - $1,512
(60% of SM budget)

KURE 88.5 - 101 spots


(20% of radio budget)

Iowa State Daily


27% of print budget
Bronze Package (4000/month)

Twitter - $1,008
(40% of SM budget)

KDXA 106.3-201 Spots


(40% of radio budget)

Ethos Magazine
23% of print budget
Full color spot- $333 / month

----------

TOTAL

TOTAL

TOTAL

503 spots @$50/spot


$25,200

$8800+$4800+$4000
$17,600

$1,512 + $1,008
$2,520

During the month of December we recommend reallocating the funds to


allow KMYR 104.1 15% of the overall radio advertising fund.
It is important to note that these are estimates of the number of spots. The
actual number may vary upon the various forms of advertising within each
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radio stations. For example a weather or traffic sponsorship campaign will


increase the total number of spots for the respective station but the
percentage of allocation will remain the same.

Strategy
Social Media
By promoting Stomping Grounds via Facebook, Twitter, and Instagram
customers will become more involved with the business itself. Featuring
events, rewards program discounts, photo contests, giveaways, boosted
posts, and more will allow Stomping Grounds to expand its brand awareness
while increasing repeat purchasing and fostering a market position/voice.

Advertising
By developing advertisements touching on the key attributes of Stomping
Grounds, there will be an increase brand awareness and further definition of
its position among competitors. For example, advertisements could feature
Stomping Grounds multitude of quality beverage and food options, versatile
environment, and ideal location. We would specifically want to give the
brand a desired social meaning via slice of life ads in print and social media.
These would include images depicting scenarios of a versatile consumer
base and testimonials supporting them. Radio advertisements will take a
slightly different direction by promoting brand recall and top-of-mind
awareness via jingles and slogans.

Customer Rewards Programs (Sales Promotion)


By establishing a rewards program, Stomping Grounds will encourage repeat
purchases with new and current customers. The rewards program will give
consumers a reason to become brand loyal. A rewards card would be
provided to customers at the point of purchase. This would give the
consumer:
A personalized card giving them a sense of belonging
A free hot or cold beverage for every 10 purchased
$5 off the next meal for every 5 meals purchased

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Exclusive offers and discounts applicable to members only sent via email
and text messages

Student Discounts (Sales Promotion)


By offering a student discount, Iowa State students (and other colleges
students) will be more inclined to visit Stomping Grounds over other coffee
shops. Students will simply need to show their current student ID card at
purchase and they will receive a 15% discount. Incentives are especially
attractive to college students on strict budgets.

Execution
Copy strategy Objectives
Create a call to action; motivate the audience to stop in for a cup of coffee
on their way to work in the morning or a beer after work. Dig into the
consumers mind and make them crave what stomping grounds has to offer.
Paint a picture of the brand, the atmosphere and what the audience can
expect when they visit stomping grounds. Project the brand image as much
as possible in each form of advertising.
Establish Stomping grounds as the place to go for coffee, drinks and social
gatherings
Methods
Print. Coffee houses are a conducive environment to reading the paper.
News and media are often obtained in traditional print form in this setting so
do not ignore the power of a well placed print ad for a coffee house.
Radio. Here we can use short 30 second ads to grab the audiences
attention with the use of catchy phrases and slogans that will promote top
of mind awareness with the Stomping Grounds brand. In addition to
obtaining immediate results we will implement weather and traffic
sponsorships on local radio stations to create a call to action.
Social Media. In this day and age its a given that small businesses need to
consider the use of social media, however if used in the same ways as

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traditional advertising the brand can be damaged. This is why we


recommend the use of social media be primarily for the use of building a
relationship with the consumer. Information and a look into the lifestyle of
Stomping Grounds will be far more beneficial here than sales promotions
and ads.

Media Plan
Radio
KURE (88.5) is a campus radio station in the alternative genre. This station
does not boast a large broadcast distance but encompasses campus town
and the location of stomping grounds! The typical listener of alternative
music fits with the target market stomping grounds is aiming for. The cost
per spot on KURE 88.5 will be lower than major radio stations do lower
reach.
KCYZ (NOW 105.1) is an Ames local station with more reach and
popularity that focuses more on todays hits. Among their target audience
would fall young adults and college students. This creates a perfect
opportunity for Stomping Grounds to provoke store visits!
KDXA (ALT 106.3) has the reach to cover surrounding areas of Ames and
the typical listener will be very similar to that of KURE 88.5. The message
that Stomping Grounds is conveying will be relevant and reach further north
and south of Ames. This station is owned and operated by the same radio
group as NOW 105.1, discounts across stations are not uncommon so the
overall cost per thousand could be very enticing.
KMYR (104.1) is the final radio station to be implemented to the media
plan. KMYR is a holiday station only. Seasonal advertising on this station
can drive sales in the colder months and be a great vehicle to offer seasonal
promotions and gifts or gift cards from the Stomping Grounds.

Print
Something important to keep in mind with these sources of print advertising
is they all have a strong internet presence and opportunities for advertising
on their websites. This type of ad is usually offered at a deep discount when
paired with a print media package and can pack a big bang for the buck!

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Ames Tribune. This regional newspaper will be a useful tool in reaching the
residents of Ames and surrounding small towns. This form of news will
reach the working professional segment of our target market. In addition to
the physical newspaper the Ames Tribune offers ad placement on their
website for readers that prefer to get their news electronically.
Iowa State Daily. This campus wide student run publication will be sure to
reach the college students of Ames. The message conveyed by Stomping
Grounds will surely translate with this paper.
Ethos. Edgy alternative lifestyles of college students is what makes this
magazine so interesting. Focusing on what going on around Ames and
entertainment is what will make this a good fit for Stomping grounds
Advertisements.
Social Media
Facebook and Twitter. With the staggering number of Facebook and
Twitter users its a no brainer that Stomping Grounds needs to have a
presence but nothing says un-friend me more than trying to sell
something on someones news feed. Keep it clean, but make it personal.
Make it about the lifestyle and environment Stomping Grounds has to offer!
Also offer information to aid the potential consumer in making a decision to
visit the shop.

Integrated Brand Promotion


Radio
Radio advertisements will be Stomping Grounds main form of advertising.
Radio ads provide us with an immediate response, as well as a call to action
by incorporating weather and traffic announcements. Our ads will be placed
mainly within the morning hours to attract the customers getting ready for
work or school.
Sample Stomping Grounds Radio Ad Script:
When its cold outside and you have no place to go

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you can come on by to Stomping Grounds and warm up with a


cup of joe
When you need to study and feel dead tired
visit Stomping Grounds and get yourself wired.
Tired of energy drinks that make you crash
come try our coffee at Stomping Grounds for half the cash
Located at 303 Welch Ave #101, Ames.

Print
Print ads will be a prominent form of advertising for Stomping Grounds. By
placing ads in student-run publications, such as the ISU Daily and Ethos
Magazine, Stomping Grounds can reach the niche market of ISU students.
Figure 2. Sample Stomping Grounds Print Ad:

The goal for this sample print ad is catch the readers eye. t=The unique
language for this ad provides the reader with a bit of humor as well as a
taste of Stomping Grounds philosophy. The Stomping Grounds logo is
include to provide a sense of recognition.
Social Media
Stomping Grounds presence on social media will help promote their
products, services, specials, and other deals, as well as gain a larger
customer following.

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Figure 3. Sample Stomping Grounds Promotional Tweet

References
1. SBDCNet -- http://www.sbdcnet.org/small-business-research-reports/coffeeshop
2. Statista - http://www.statista.com/topics/1670/coffeehouse-chain-market/
3. Radio-Locator-http://radio-locator.com/cgi-bin/locate?
select=city&city=Ames&state=IA&band=Both&dx=0&sort=freq
4. Coffee Industry Analysishttp://www.bplans.com/coffee_shop_business_plan/market_analysis_summar
y_fc.php
5. ISU Daily-http://www.iowastatedaily.net/web/ratecard.pdf
6. Ames Tribune-http://amestrib.com/sites/amestrib.com/files/PrintRates.pdf

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