The Coffee Break
Market Analysis Summary
Studies have shown that most customers to a convenience store are 18-35 years of age and male. This has led others to focus on females and individuals who are over 55 years of age. The Coffee Break will target customers from the OSU campus, local businesses, and tourists. This will provide a strong local clientele and a new tourism.
While convenience stores are nothing new, we will distinguish ourselves from that genre and focus more on a cafe/store emphasizing on convenience. Research has shown that ice cream/frozen yogurt and quick, healthy meals attract our targeted demographic of females and those over 55 years of age.
4.1 Market Segmentation
The Coffee Break has three major customer groups, as mentioned in the chart and table, that will be targeted.
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4.2 Target Market Segment Strategy
Because The Coffee Break being located near the Oregon State University (OSU) campus, many students will find it as a resourceful break to their busy days. Also, travel time from local nearby businesses is minimum compared to other convenience stores and ice cream parlors.
Bend, Oregon is a tourism mecca for Oregon residents and other visitors. Offering skiing, snowboarding, and other winter attractions nearby, as well as summer attractions (including hiking and mountain biking), visitors will always be in need of convenient materials such as food, beverages, and other materials to supplement their activities.
4.2.1 Market Trends
The market will vary greatly based on two factors: the OSU schedule and tourism (weather). The OSU schedule will vary according to the number of students near The Coffee Break. Summers will tend to decrease the customer base of students as many choose not to attend school during this time. Also, the weather will affect tourism. Depending on snow amounts in the winter and sunshine in the summer, the number of tourists can vary. It will be important to recognize upcoming seasonal patterns and plan accordingly.
4.2.2 Market Growth
Most convenient stores have males, ages 18-34, as main customers. Recent trends have indicated that many stores are trying to incorporate females and those over the age of 55. By providing the “nostalgic” feeling, we expect to increase the number of customers over 55. This will still enable us to serve others in the basic age group of 18-34, or typical students.
4.2.3 Market Needs
Because our market is threefold, we have researched the needs of each.
- OSU campus students- Students often have different schedules from business people. Breaks can vary in time and length, so a facility close and convenient to the campus is needed. By providing basic foods and supplies, students will be attracted to this time-saving, delectable store.
- Tourism- Many people that travel look for unique stores at a location. The Coffee Break will pride itself on the “good ol’ days” feeling brought with our soda fountain and ice cream parlor setting. However, we recognize that a business will not support itself on these factors alone, so a coffee bar, reasonable meals, and other basic goods will be available for purchase. This will enable a one-stop shopping experience for those planning or returning from their daily activities. With over 30 developed parks and many trails, recreation is available year-round.
- Local business people- Business people eat out frequently during the work week and over time, facilities become mundane. The Coffee Break will provide a new source for nutritious, quick meals and favorite snacks. With the convenience of The Coffee Break, all transactions will be prompt and efficient.
4.3 Service Business Analysis
Convenience stores are nothing new. In order to succeed, a business must understand the importance and impact of merchandising, location, and competition. Due to the strong reliance on other industries, it is important to recognize the industry’s needs and trends.
A distinction of convenience stores and other grocery stores is just that: convenience. To maximize this, location must be easily accessible (including ample parking) and prompt service. Our location will be beneficial for all, especially students at the OSU campus. Also, by providing the variety of food and non-food products, The Coffee Break will be able to facilitate the needs of customers better. We will expand our hours to a greater time frame, allowing convenience to be based on the customers schedule.
Although many convenience stores offer gasoline, we have opted to exclude this service. Instead, we will focus on prompt service and general purchases towards food and non-food products. Our friendly and clean atmosphere, will create a standard for convenience stores in the area. This in turn will convert the industry’s percentage of weekly customers and transaction amount to increase.