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Coffee Bean & Tea Leaf Marketing Plan

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The Coffee Bean and Tea Leaf [CBTL] was founded by Herb & Mona Hyman in 1963 in Brentwood, California. CBTL is the oldest and largest privately held specialty coffee and tea retailer in the United States and celebrates its 50th anniversary this year. According to Hoovers, online, the company operates approximately 900 franchised stores worldwide with sales of $198.1 million last year. CBTL serves various coffee, tea and blended drinks. CBTL stores sell a variety of bulk coffee and tea as well as assorted accessories such as tea pots, infusers, and coffee cups. CBTL’s three main competitors are: Starbucks, Peet’s Coffee and Tea, and Caribou Coffee Company


CBTL slogan says “find your flavor…is not just words it is a commitment to our customers and the foundation upon which we operate” (http://www.coffeebean.com). CBTL selects only the top one percent of Arabic beans for its coffee and uses the finest hand-plucked whole tea leaves. CBTL carefully roasts their coffee beans through the “art of crafting” to produce the best tasting coffee (http://www.coffeebean.com). They produce coffees from light and subtle to dark and distinctive. The company purchases their tea leaves directly from the growers in Sri Lanka, Kenya, China, Japan, Thailand, and India. Purchasing direct from the grower assures the tea leaves are handcrafted to CBTL’s standards for quality, taste, and heritage.

Cultivated close ties to the growers helps CBTL stay connected to the people for whom the tea is a livelihood, which goes beyond fair wages by giving back to the plantations, estates, and communities by supporting local education and health-care programs (http://www.coffeebean.com). CBTL believes strongly in social responsibility and donates to charities, foundations, and schools in the United States and around the world. Their donation program is called “The Caring Cup” (http://www.coffeebean.com). The have supported domestic programs in the United States such as The Help Group and Support from Home. CBTL donates $1 for every pound of a special blend of coffee. Coffee Bean is still growing and a major competitor is Starbuck’s.

Description of the New Product or Service

In an attempt to gain market penetration and increase product recognition we, Coffee Bean and Tea Leaf, will be creating and marketing Vending option for consumers. Through creative design we will be able to:

* Visually the experience will be such that customers feel like they are using a CBTL brewing device. * The taste experience will/shall deliver consistent and positive product that engender a sense of comfort and desire for CBTL products. * Familiarize consumers with our brand and design.

* Bundle/group advertising with this vending/remote experience. * Deliver and repeat the CBTL mission statement and experience. Through strategic placement we will be able to:
* Take advantage of natural gaps in potential market places, buildings, campuses, big box Stores, commercial and, business centers. * Compete with competitors where in expensive markets/locations. * Utilize strategic partnerships complement marketing and customer experience. Partnerships will be formed to capitalize on possible marketing and cost synergy * Selecting existing businesses that have relationships with our desired customers we can create mutually beneficial partnerships. Bed Bath Beyond, Costco, Pets Mart etc. * Proving Internet access with coordination with Verizon or ATT can provide another mutually beneficial venture and add value to our total product experience. This product will highly compatible with social media

* Promotions will be conducted through social media.
* Friends/networks will have ability to gift others beverages redeemable at vending and traditional locations. * Cell phone pay options, Facebook, PayPal, proprietary apps etc. The true value of this product is not primarily profits from the actual units. The main purpose is the market Penetration and brand familiarization it will produce.

The Importance of Marketing to our Selected Organization’s Success Marketing plays a key role in any organization, but it’s extremely important when an organization launches a new product or service. CBTL has major competition within the coffee industries and it needs to achieve a level of exclusivity within its customer base in order to attract new clients, keep the old ones persuade the ones that do not have much preference in coffee. Furthermore, the marketing strategy needs to appeal to busy people who know what they want and want it fast. CBTL has tap into this new social media generation that “thinks differently, acts differently and most importantly,…, consume marketing messages differently. (Pekala 2009). Social media and technologically savvy paying opportunities will distinguish us from other competitors. By using these instruments the target clients will gain a sense of trust for the product and will begin to establish a relationship with our goods and our organization as a whole; therefore, reaching our goal of attaining this market for more than just a cup of coffee. A SWOT Analysis

* Due to the CBTL’s time spend in the market there is a valuable aspect of staying power and 50 years in business behind the idea. Having staying power and a great reputation helps build on the validity of all products by CBTL. * The quality offered by CBTL supersedes that of the traditional coffee offered in current vending machines and a strong cult following of the brand will give current consumers a quick and easy option, while also reaching current vending machine users. * Being the first of a big brand to offer a vending machine option gives CBTL a competitive advantage. * CBTL is known for helping the communities of the various areas where their Coffee Beans and Tea are grown with their “Caring Cup Initiative.” ((http://www.coffeebean.com). Weakness

* Not having enough customer participation to justify the rent, space and product used to create the vending machines. * The fact that CBTL is primarily well known on the West coast makes it harder to penetrate different parts of the country Opportunities

* Being the first large company to offer the product gives a competitive advantage. Offering a quicker easier way to attain the coffee and tea
desired by customers means not losing the shares to gas station coffee vending machines for busy customers unwilling to wait in long store lines. * Not only offering coffee, but the incredible tea CBTL is famous for gives a competitive edge to the machines offering only coffee.

* Other companies and competitors such as Starbucks, Peet’s Coffee and Caribou offer threats to the stability of the product. * Current vending machine companies such as Nescafe and Cup of Café * Imitators

The Types of Buyers the Organization Will Target and Why
With this product, Coffee Bean and Tea Leaf (CBTL), is trying to gain market share over one of its major competitors like Starbucks. It is also trying to get customers to recognize CBTL products and buy the pod machines. CBTL should set this self-service machine in high traffic areas such as shopping centers, Bed, Bath and Beyond, and Costco. Most people who frequent price clubs stores and malls are also looking for quality products at practical prices. And that is something CBTL is known for. Costco customers would be a great market as they can easily get a single cup of coffee/latte or tea all while shopping. Also, by setting up at above retailers a customer can easily buy a Kaldi or other CBTL products. A second place CBTL can set up is at high-rise corporate buildings. Having a machine at these buildings would be beneficial for the employees and CBTL.

Take for example the person that stops on their way to work for coffee every morning. They have to accommodate for that stop by departing at least 15 minutes early. They also run the risk of running late to work if the coffee store is busy or the unexpected road closure. Now, if our patrons had easy access to a self-service CBTL machine without risking being late for work or leaving home early, the CBLT machine would prove to be of great value to the coffee aficionado. A third place CBTL would go well is in college campus. Most college students have to have their caffeine rush to start the day or to stay awake for an all-night study session. Campus cafeterias usually have traditional working hours and the food carts also close shop in the evening but not CBTL automate machine.


The Coffee Bean and Tea Leaf online. Retrieved from http://www.coffeebean.com International Coffee & Tea LLC Company Information. Retrieved from http://www.hoovers.com/company-information/cs/company- profile.International_Coffee__Tea_LLC.1c39945802bce70b.html Pekala, Nancy ( 2009, November 11). Why Oh Why Women Y? Marketing to a Connected Generation. American Marketing Association. Retrieved January 19, 2013, from URL: http://www.marketingpower.com/_layouts/SearchResults.aspx?fb=q

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