THE HIDEOUT COFFEE SHOP

Marketing Plan

By:

Tindoc, Jessica Joyce P.

Ilagan, Aila Zyrine
Pascual, Ericka

Teacher:

Mr. Adrian Naingue

 EXTERNAL ANALYSIS

INDUSTRY DEFINITION

“The Hideout” is one of the most famous coffee shop in Muntinlupa operating in the
coffee retail market since 2000. The company, which has positioned itself as a seller of
premium coffee products, beverages, pastries and especially the best selling chocolates
has greatly expanded its market position and presence in the past decade.

INDUSTRY SEGMENTATION

FOOD BEVERAGES CHOCOLATES

Toast Hot Cold Hideout chocolate bar
Toast Sandwiches Coffee Iced coffee
Baps Smoothies Smoothies
Croissants Coffee
Bread drinks(different
aroma)

FIGURE 1: Industry Segmentation

In Figure 1,it shows the packaged segmentation offerings of the Hideout coffee. The
products and offerings we have divided into 3 parts: Foods Drinks(hot and cold) and
the specialty, Hideout Chocolate Bar.
 INDUSTRY SIZE AND GROWTH

Coffee consumption has shown a steady 2.5% growth rate in the Muntinlupa over the
last decade. In 2001, total sales of coffee were approximately 500 K . The retail coffee
industry is flourishing in Muntinlupa. The local climate, with a tropical or humid tropical
season is very advantageous for the consumption of cold/warm and 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 City Its discerning
coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they
can consume in a relaxing environment.

Ref.: https://www.kantarworldpanel.com/ph

YEAR AVERAGE SALES(2014) STORE NUMBERS

Starbucks 1,745,392 14
Foss Coffee 968,509 4
Seattle’s Best Coffee 1,482,532 11
Figaro Coffee 1,087,379 8
The coffee Republic 897,976 7
Picked 1,450,476 9
TABLE 1: Industry size of coffee shops in Muntinlupa

Ref.: https://www.hospitalityandcateringnews.com/2013/01/uk-coffee-market-grows-and-
to-grow-strongly/

SEASONALITY
The continuous service of the coffee shop in any season, also come up with the
continuous increase in sales. Through that, the company always seek to innovate the
product and maintain the best. The peak season for coffee shop was during the rainy
seasons mid June and December.
 Month Year 2014
January 717,916
February 897,395
March 807,656
April 915,343
May 1,166,614
June 1,435,833
July 1,794,791
August 2,153,749
October 1,669,156
November 1,256,353
December 3,769,061
TOTAL 17,571,007
AVERAGE SALES 1,464,250

Maturity Stage: Competition appears with similar products in specialty coffee thus, The
Hideout coffee shop has to defend the market share while maximizing profit with
differentiating their product from that of competitors through quality of its products and
environment.
We always advise doing a personal inventory that assesses much more than just the
“coffee business” itself. Additionally, you also want to analyze your personal support
network, money factors, your family’s ability to support you during this time, and other
variables that can personally influence your coffee shop start up.

ENVIRONMENTAL SCANNING
The research gathered the following data about some environmental forces that may
affect The Hideout’s coffee shop.
Political
Another impact in the business is to follow the laws and regulations in the city from
where coffee shop buys the raw materials. Activism and increased political awareness
in developing countries have made its essential.

Factors Effect on the industry Effect on the brand

 Republic Act No. Minimum wage earner will Increase in sales
9504 receive more income

Tax Exemption for

Minimum wage
earners and
Increased Tax
exemption
 Republic Act No. Give the information on the Increase in sales due to the
7394 quality and health content increase on awareness of
on the product the quality and health
The Consumer act of content of the product
the Philippines. The
state shall enforce
compulsory labeling
and fair packaging to
enable the consumer
to obtain accurate
information

Economical
The ongoing global economic recession is the prime external economic driver for the
coffee shop like local currency exchange rates
 Factors Effect on the industry Effect on the brand
 Big LPG Price Hike
Enforced
Decrease on sales because Decrease in sales
The LPG Marketers consumer will lessen their
Association consumptions
forecasted
7pesos/Kilo increase
of LPG

 Local currency Increase/decrease in sales Increase/Decrease in sales

exchange rates

Socio Cultural

Some factors can affect would be the consumer preferences, changing work patterns
and changes in lifestyle of population

Factors Effect on the industry Effect on the Brand

 Holidays Increase in sales Increase in sales
 Work lifestyles

Technological
The company introduced Wi-Fi capabilities in its outlets already.  Internet is important to
the consumers. They can now surf the web and do work while sipping our coffee

Factors Effect on the industry Effect on the Brand

 to foster a much Increase in sales Increase in sales
greater proliferation
of specialty retailers
than ever before 
 Since our Increase in sales Increase in sales
surroundings were
so instagram worthy,
It is accessible for
others to know our
shop
 Innovative designs Additional cost and positive Increase in sales
for Food Packaging impact to the company

Environmental factors like the environmental rules and regulation

The positive and inevitable change will be such a big impact for the company
Factors Effect on the Industry Effect on the product
 Pleasant and Increase in sales Increase in sales
calming ambiance More customers

CONSUMER ANALYSIS

Type of Segmentation Starbucks target customer segment

segmentation criteria
Main stall Ayala Alabang
Geographic
City 7 stalls in different barangays in
MUNTINLUPA
Demographic
Density Urban
16– 60
Behavioral Age

Degree of loyalty ‘Hard core loyals’

Psychographic Degree of loyalty Enjoying quality coffee in a relaxing
atmosphere
A place to chat with friends and relatives
A place to work
Benefits sought
 MARKETING ISSUE AND TRENDS
It takes time to launch a coffee business. If you don’t have the time, then we
would strongly ask you to analyze why you think  you want to have a coffee
business. Launching a business takes time – sometimes even more time
than you may imagine.
Planning is essential and often time consuming. Writing a business plan,
for example, takes time and effort too. Following through and making sure
all the pieces fit together takes time. Ask yourself if you are ready and if
you have the time to start your coffee business
 KEY SUCCESS FACTOR
It describes the competitive advantage as that which gives an edge to a business over
what the competition can offer. It helps to provide the reason why a customer chooses to
purchase from a business instead of the competition. The key Factors that contributed to
“The Hideout’s early success were: Not that much expensive prices. We highlight the
consumer’s different taste for coffees and chocolates with the perfect ambiance to get
some relax and instagram worthy.
Additional Keys to Success:

Store design that will be both visually attractive to customers, and designed for fast and
efficient operations.

Employee training to insure the best coffee preparation techniques.

Marketing strategies aimed to build a solid base of loyal customers, as well as

maximizing the sales of high margin products, such as espresso drinks.

INTERNAL ANALYSIS
Company Background
History

Back then, the company was a single store in Muntinlupa beside filinvest. From just a
narrow storefront, The Hide offered some of the finest fresh-roasted whole bean
coffees. The idea behind the hide out cafe is to integrate simple and fresh ingredients to
coffee, chocolates and pastries.
 
We offer a beautiful and peaceful dining environment including a ambient music, and
free wifi for customers!

Let's take your tastebuds on a joy ride!

Mission

It is our mission to represent the finest coffees the world has to offer. We
roast in a way which honors the coffee bean, for the sole purpose, to best
express and compliment its character.
Vision

The coffee shop seemingly undisputed market leadership position can be attributed to
the company’s clever product diversification and market expansion strategies. In
response to changing consumer needs and demand, our every day’s challenge is to
spread the name and our pleasant service and products for the whole country.

PRODUCT/SELLING PRICE/PACK SIZE

BREAKFAST DRINKS CHOCOLATES

Toast Hot Cold Hideout chocolate bar
Toast Sandwiches Espresso Iced coffee
Baps Short Macchiato Iced Chocolate
Croissants Long Macchiato Iced Mocha
Bread Affogato Iced Chai
Piccolo latte Iced Latte
Flavoured Latte Fruit Ice Crushers
Latte Smoothies
Cappuccino
Flat White
Long Black
Bean Bar Latte
Hot Chocolate
Snow Hot Chocolate
Choc Mocha
Snow Mocha
Vienna
Choc Vienna
Chai Latte

OUR COFFEE
Perfectly roasted and blended beans are the most fundamental ingredient of all great
coffee. The Hideout coffee shop use coffee beans exclusively blended for The Hideout
coffee shops only. This coffee features the highest quality beans imported by coffee
gurus Aroma Fresh, and then blended and roasted locally in Adelaide. Each bean
variety is individually roasted to varying degrees from light to dark. The following are the
different kinds of hot and cold coffee that Hideout coffee shop offers:

HOT COFFEE

ESPRESSO
a single shot of espresso
SHORT MACCHIATO
a single serving of espresso, stained with milky foam

LONG MACCHIATO
a double shot of espresso, stained with milky foam

AFFOGATO
a single shot of espresso served with one scoop of vanilla ice-cream

PICCOLO LATTE
a single shot of espresso with a small layer of foam

FLAVOURED LATTE
latte topped with sweetened flavoured syrup (flavours include Hazelnut,
Caramel, Vanilla & Irish Cream)
LATTE
a double shot of espresso with steamed milk and a small layer of foam

CAPPUCCINO
a double shot of espresso with equal parts steamed milk and foam

FLAT WHITE
a double shot of espresso with flat steamed milk

LONG BLACK
a cup of hot water topped with a double shot of espresso

BEAN BAR LATTE

a double shot of espresso with steamed milk a small layer of foam and a
special sweetened coffee flavoured syrup
HOT CHOCOLATE
rich chocolate with steamed milk and a small layer of foam

SNOW HOT CHOCOLATE

rich white chocolate with steamed milk and a small layer of foam

CHOC MOCHA
rich chocolate mixed with a double shot of espresso. Served with steamed
milk and a small layer of foam
SNOW MOCHA
rich white chocolate mixed with a double shot of espresso. Served with
steamed milk and a small layer of foam

VIENNA
a long black, topped with whipped cream

CHOC VIENNA
a hot chocolate, topped with whipped cream

CHAI LATTE
chai syrup with steamed milk and a small layer of foam

COLD COFFEE

ICED COFFEE
Fresh espresso served with milk, vanilla ice-cream and fresh whipped
cream

ICED CHOCOLATE
Rich chocolate sauce served with milk, vanilla ice-cream and fresh whipped
cream

ICED MOCHA
Fresh espresso and rich chocolate sauce served with milk, ice and vanilla
ice-cream
ICED CHAI
Chai served with milk, vanilla ice-cream and fresh whipped cream

ICED LATTE
Slimmer’s Choice - no added sugar, low fat. Fresh espresso poured over
ice cubes and skim milk

FRUIT ICE CRUSHERS

Dairy free 97% fruit puree blended with ice cubes in Mixed Berry or Mango
flavour
SMOOTHIES
A thick blend of milk, ice cubes and vanilla ice-cream with your choice
flavour:
 Coffee, fresh espresso blended with milk, ice and vanilla ice-cream
 Chocolate, rich chocolate blended with milk, ice and vanilla ice-cream
 Mocha, fresh espresso and chocolate blended with milk, ice and
vanilla ice-cream
 Mars Bar, mars bar, caramel and chocolate blended with milk, ice
and vanilla ice-cream
 Banana, ripe banana blended with milk, ice and vanilla ice-cream
BREAKFAST:
TOAST
With butter, jam or vegemite
Thick cut raisin toast

TOASTED SANDWICHES
Ham & cheese
Cheese & Tomato
Hame, cheese & tomato
BAPS
Bacon & egg
Rustic bap

CROISSANTS
With butter or jam
Ham & cheese

Market Segmentation

The hideout coffee will focus its marketing activities on reaching the Muntinlupeno
students and faculty, people working in offices located close to the coffee bar and on
sophisticated teenagers. Our market research shows that these are the customer
groups that are most likely to buy gourmet coffee products. Since gourmet coffee
consumption is universal across different income categories and mostly depends on the
level of higher education and environment.

Potential Growth
Customers

Students and 2%
Faculty

Teenagers 1%

Office workers 2%

Other 0%

Total 1.63%

CURRENT TARGET MARKETS

Suite of Services
The Hideout Coffee shop Comprehensive marketing strategies begin with product and
service development. Coffee shops can especially benefit from developing a wide,
customer-friendly suite of services, since word-of-mouth advertising can be an effective
way to turn large groups of people into loyal customers. We offer free Wi-Fi in your
shop, for example, and our installed electrical outlets at each table for laptops. our shop
offers something the others do not, so that patrons want to bring their friends to see the
difference.

Loyalty Programs
Loyalty programs can be as simple as punch cards with the promise of receiving every
Nth cup of coffee free, which can be attractive to daily coffee drinkers. Consider
incentive programs to the next level to beat your competitors. Institute a more in-depth
system that tracks the total dollar amount of purchases for each customer, for example,
we provide products of some kind when customer spend certain amounts – possibly
increasing the value of freebies over time.

On-Premises Advertising
We have a facade that clearly distinguishes the establishment for what our coffee about.
This means large windows (if possible) revealing the inside sitting area, tables set up
outside and coffee menus posted outside. Set up clear and visible store signage,
choose a highly-visible location and place small, movable signs by the road, by the
sidewalk or in your outside sitting area. Selecting the right name can be useful for on-
premises advertising, as well. Also, we select a name of our store(“The Hideout”) that
immediately brings up images of a coffee shop.

Promotional Advertising
We use sales promotions and advertising together from time to time to give your shop a
boost in new visits. We place coupons in local newspapers and magazines, for
example. Leverage social media by posting printable coupons on Facebook and Twitter,
or use a service like Groupon to distribute coupons to Internet-users in your local area.
 CHAPTER V

COMPARATIVE ANALYSIS
PRODUCT STARBUCKS GLORIA THE HIDEOUT SEATTLE’S
JEAN’S BEST

Target Market Higher and Mid Class B and C Class A, B and Higher and mid
class Adult and mid C class
Adult and young adult Kids up to Young adult
adult; teen and kids Adult

Positioning “Just say yes” “One sip at a “Pouring your “Make the
time” cup, relax and perfect blend”
hide”

Sizes and 10 oz.= 175 10

Prices

Ref.: George,D.& Parson,L.(2013)Marketing Department:

https://www.slideshare.net/himanshuarora71/starbucks-brand-offering-and-positioning
Retrieved from https://www.marketingmag.com.au/hubs-c/onesipatatime/

CHAPTER VI
SWOT analysis

Strengths Weaknesses
1. Offers healthy variant 1. Small or inconvenience for others
2. Affordable price structure 2. Few stalls
3. High quality of product and service 3. Less marketing campaign for stalls
4.Efficiency and effectiveness in supply
chain
 Opportunities Threats
1. Increase of customers 1. Large number of competitors in
2. Product innovation and new specialty coffee beverage business can
growth platforms lead to low profitability
3. Increase in sales 2.Strong marketing activities by the
competitors
3.Presence of alternative products to drink

CHAPTER VII

MARKETING OBJECTIVES

Growth revenues by 15% p.a. in each of the next five years

Increase share to 17%
Grow Average customer spend by 5%

CHAPTER VIII

MARKETING STRATEGIES

Suite of Services
The Hideout Coffee shop Comprehensive marketing strategies begin with product and
service development. Coffee shops can especially benefit from developing a wide,
customer-friendly suite of services, since word-of-mouth advertising can be an effective
way to turn large groups of people into loyal customers. We offer free Wi-Fi in your
shop, for example, and our installed electrical outlets at each table for laptops. our shop
offers something the others do not, so that patrons want to bring their friends to see the
difference.

Loyalty Programs
Loyalty programs can be as simple as punch cards with the promise of receiving every
Nth cup of coffee free, which can be attractive to daily coffee drinkers. Consider
incentive programs to the next level to beat your competitors. Institute a more in-depth
system that tracks the total dollar amount of purchases for each customer, for example,
we provide products of some kind when customer spend certain amounts – possibly
increasing the value of freebies over time.

On-Premises Advertising
We have a facade that clearly distinguishes the establishment for what our coffee about.
This means large windows (if possible) revealing the inside sitting area, tables set up
outside and coffee menus posted outside. Set up clear and visible store signage,
choose a highly-visible location and place small, movable signs by the road, by the
sidewalk or in your outside sitting area. Selecting the right name can be useful for on-
premises advertising, as well. Also, we select a name of our store(“The Hideout”) that
immediately brings up images of a coffee shop.

Promotional Advertising
We use sales promotions and advertising together from time to time to give your shop a
boost in new visits. We place coupons in local newspapers and magazines, for
example. Leverage social media by posting printable coupons on Facebook and Twitter,
or use a service like Groupon to distribute coupons to Internet-users in your local area.

OTHER STRATEGIES

1. “Perfect Cup of Coffee” – Our coffee, even if priced slightly more

expensive than expected, is famous for satisfying customers with its rich,
delicious taste and aroma.
2. “Customer Satisfaction” –. From entrance to the store to the very last drop
of the hideout coffees, it is a must that customers feel the uniqueness of
enjoying their coffee experience.
3. “Creating a Starbucks Community” – We started a community website,
Hideout Idea, designed to collect suggestions and feedback from
customers.
 4. “Innovation” – We’ve added different flavors to their coffee, more food on
their menu, free weekly song or app download from iTunes, free Wi-Fi
internet usage, free birthday drink.
5. “Brand Marketing” – The Hideout marketing strategy has always focused
on “word-of-mouth” advertising and letting the high quality of their products
and services speak for themselves.
6. “Monopolistic”-Some of the methods Hideout has used to expand and
maintain our dominant market position, includes buying out competitors’
leases, intentionally operating at a loss, and clustering several locations in
a small geographical area for saturating the market.
7. “Just Say Yes” policy in order to keep the customer happy.
• Example: Always compensate dissatisfied customers with a Hideout
coupon entitling them to a free drink
• Example: Give a customer a free refill if he/she spills their drink.
8. Hideout Card – It is a stored-value card for customers to use and reload.

CHAPTER XI

ACTIVITY GANTT CHART

AP Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Packaging
Share the
Hideout
love

Intensive
distributio
n

CHAPTER XII

MONITORING AND CONTROL

ACTION PLAN MONITORING CONTROL

Action Plan # 1 Packaging of Marketing Manager will Marketing Manager will

Products be responsible in ensure and give the task
justifying the needs in to the operating
enhancing the packaging management for the
of product packaging enhancement
Action Plan # 2 Share the Hideout Marketing department Marketing Department
coffee love will become more will have a bond and
pedantic and meticulous plan to produce the best
regarding to the quality quality to satisfy every
of the foods, beverages customer
and chocolate
Action Plan # 3 Intensive Operating team will Production department
Distribution ensure the availability of must provide a sufficient
raw materials. supply.