Applying the Marketing Mix (7 P’s) to your coffee shop (or any business) can solidify your marketing

strategy and give

you a strong marketing section for your business plan. The marketing section includes an overview of your industry and
market (Industry & Market Analysis), and then analyzes where you and your competitors stand in the
marketplace (Competitive & Internal Analysis). Today, we’ll use the 7 P’s of the marketing mix to strengthen your
competitive and internal analysis and build your marketing strategy.

Using the Marketing Mix to Strengthen your Marketing Strategy

As you go through the 7 P’s of the Marketing Mix, keep in mind everything you researched so far in your Marketing
section. The competitive matrix actually compares the marketing mix elements of your competitors, and you can use this
information to find gaps and fulfill your stance in the marketplace. A strong marketing strategy will determine how to
solve customer needs and be set apart from your competition.

1. Product- What does your menu look like, and are you meeting the demands in your market? What you’re selling and
why should be detailed in the Products & Services section of your business plan.
2. Price- How much does it cost to produce your products? How much do your products cost to your customers? How do
customers perceive your product value? Price is based on positioning (#6), because it sends a very strong message to
your consumers about your value perception. Prices should also cover overall costs; however, you don’t have to make
each item a primary profit center. For instance, you can sell one product at (or even below) your cost but make up for it
in selling other products with higher profit margins. You can choose a specific pricing method, or a combination of them.
Here are a few pricing methods to choose from:

 Competitive pricing (most likely)– based on market and competitive prices

 Value pricing– based on value provided to your customer (such as charging more for organic, fairly sourced
coffee)
 Cost-plus pricing– based on covering costs, and then marking prices from there

Generally, your prices need to match up with consumer demand and expectations. Examine competitors and price
accordingly. Price too high, and you may have no customers, since they will weigh cost over benefits, and value their
money over your product. Price too low and people may undervalue your products since low price usually means low
value perception as they compare you to your competition.
3. Promotion- How do you plan on communicating with your [potential] customers? Overview types of advertising you
plan to spend money on. Think about how to use social media to communicate your brand.

4. Place- Where are people coming to buy your coffee? Details of your location will be covered in the operations section
of your business plan but know what features will support your strategy. Consider things like a drive thru, parking, strip
mall vs. stand-alone building, industrial vs. homey feel, foot traffic, main streets, neighbors, square footage, etc.

5. Packaging- What are the visual elements of your coffee? Of your store? What is the impression given to customers
from walking through the door, receiving their drink and leaving? This includes various visual elements from your
brand/logo, store design and decor, presentation, and packaging of your coffee, and even employee appearance.

6. Positioning- Where do you stand in the market relative to your competitors? Where do you stand in the hearts and
minds of your customers? How do they see and think about you? Do you offer low prices, or are you a premium brand?
What features or benefits do you offer that your competitors don’t? What words should come to mind when customers
think of you (quality, service, atmosphere, etc.)?

7. People- Think about your target market and the customers addressed in your marketing section. Think about what
people are necessary to be part of your team. The management section will go into these key roles and responsibilities,
as well as your employees.

Thinking through the Marketing Mix and knowing the how’s and why’s of executing this as a marketing strategy is a
useful tool in setting yourself up as a strong coffee shop in your market. The more you have a grasp on your industry,
market, competition, and yourself, the more strategic and purposeful you can be in your business decisions, which is the
beauty of a good marketing plan!

The 4 Elements Of Coffee Shop Marketing Mix

A marketing mix is a marketing plan or strategy that pulls together social media marketing, pricing strategies, word-of-
mouth marketing, and other marketing tactics to build customer loyalty and ensure more new customers come through
the door of the coffee shop.

It is a multifaceted marketing business plan that focuses on both the customer experience and the right marketing tools.

A coffee shop marketing mix has four main components: product, price, promotion, and place. When each one of these
works together, you will be able to attract new customers and develop loyalty with your existing ones.

1. Product

Your product should be of high-quality because it is the main reason of your success

The foundation of your marketing plan is the product you are selling. A high-quality latte or cappuccino is at the heart of
what you do. Your menu offerings should be quality products that people want to buy and consume.

Keep in mind that you may add a new product to your menu. Any menu item your coffee house sells should be part of
your marketing strategy, and the launch of a new item should be a critical part. Consider how Starbucks advertises a new
drink heavily when it launches and try to replicate this type of emphasis.

2. Price

Are you a high-end coffee house or a family-run coffee shop? The price of your espresso or mocha will likely dictate the
answer to this question.

Once you set your pricing strategy, you can use it to determine your marketing strategy and target market.
3. Promotion

Pricing strategy will lead to your promotions. Coffee shop owners who want a competitive advantage should run sales
from time to time, and this should be part of your plan for pricing your coffee products.

Promotional strategies can vary but should be used regularly to entice people to your business. Your promotions can
also be fuel for your marketing communication with your target market.

4. Place

Where will you set up your coffee shop? The place is not as simple as finding a location that fits your budget. You must
consider your customer base and their needs, where they spend time when they might want a cup of coffee, and how
much competition is nearby.

Remember, there is only so much coffee a particular community will buy. If you can choose a place with less competition
but high demand, you will sell more. Keep in mind that online sales of coffee products, like beans and coffee mugs, can
be part of your place as a coffee company.

Distribution Channels For Your Coffee Shop Marketing Mix

Once you have your product, price, promotion, and place set, you are ready to start putting together marketing channels
to use in your marketing mix. Here are some of the distribution channels to consider as you work to get the word out
about your shop's offerings.

1. Search Engine Optimization

Make a website, then optimize that website to reach the search engines. SEO drives traffic to your site and helps people
discover you when they search for coffee shops online.

When crafting an SEO strategy, make sure you target local search terms. This will help you drive local customers to your
coffee shop business.

2. Email Marketing

Whenever you interact with a customer, find a way to get an email address. Then use that email address to send your
promotional messages when you have a new product or sale to offer.

Email marketing is a fast ad affordable way to keep your coffee shop at the forefront of your customer's mind. By adding
it to your marketing mix, you can increase your overall visibility.

3. Direct Mail Flyers

Send coupons and ads about your coffee shop directly to people who live in your target market. If you include a coupon
or offer, you can easily measure the success of this arm of your advertising campaign.

You can integrate your online marketing with your direct mail if you include QR codes or website links on the
advertisements you mail.

4. Social Media Marketing

Creating a social media marketing plan is very useful and helps you gain more customers

People spend hours every day on social media, and you want them to see and engage with your small business when
they do. Create a social media marketing plan that includes paid ads and unpaid posts that reach people organically
when they spend time on Facebook, Instagram, or Twitter.
Take pictures of your coffee creation and post them to your Facebook and Instagram feeds for your business. Encourage
customers to tag their selfies with your location's page when they visit your shop or purchase online. Use social media
ads to draw more targeted traffic to your pages and your coffee shop or its products.

5. Deals Marketing

If you have a sales promotion, consider using sites like Groupon or Living Social to get people aware of it. This particular
arm of your marketing mix targets younger people and professionals.

However, you do need to use caution with this particular option. You need to maintain the right brand image of your
coffee shop, not brand it as a discount option, even while using deals to draw in new customers.

6. Word-Of-Mouth Marketing

Word-of-mouth marketing is one of the most powerful tools in your coffee shop marketing mix because people trust
their friends when it comes to finding a great cup of coffee. To use this tool, you must get people to talk about your
coffee shop.

Offer incentives for social media posts, such as contests for hashtags on images, and give them a reason to come back to
your shop and tell their friends about it.

A loyal customer reward program can be a key component of word-of-mouth marketing, Allow people to earn points for
purchases, then offer rewards like branded wearable merchandise. If you have a great product and give them a trendy t-
shirt to wear, they will become a walking billboard for your coffee shop.

A Final Word On Coffee Shop Marketing Mix

Marketing your coffee shop requires a mixture of different marketing techniques. From online to offline, putting these
together expertly will drive new business to your shop.

Remember, a coffee shop marketing mix needs to consider your target customer's needs, providing them with
promotions that meet those needs. By creating a robust mix of marketing channels, you will be able to sell your coffee
effectively.

What Should A Coffee Shop Marketing Mix Contain?

A marketing mix for a coffee shop should include a blend of online and offline marketing techniques to effectively reach
people with your coffee drinks and products. This can include channels for online sales of coffee products as well as
channels designed to bring people to your shop for a cup of coffee.

How Do I Know If A Coffee Shop Marketing Mix Is Effective?

Coffee shop owners can track sales and new customer information to determine if their marketing mix is working. Using
things like email coupon codes or mailed fliers with printed coupons can also help track specific marketing channels and
their effectiveness.