ENHANCING THE MARKETING PLAN

Enhancing the Marketing Plan



Enhancing the Marketing Plan

Frappalicous is growing right along side the fastest portion of the coffee industry, the high-end specialty coffee market. Frappalicous Coffee is a product leader in this category; they emphasize quality and enjoyment of their product. Frappalicous Coffee's target market is no question wholesaler's. Frappalicous Coffee has over 5,000 wholesale accounts that currently account for 94% of their revenue. In general this report is an overview of the company that is Frappalicous Coffee, their industry, target markets, environmental influence's, competition, and most importantly their strategy.

Frappalicous Coffee began in 1981 as a small café in rural Vermont. Today the company boasts a 90,000 square feet distribution and roasting facility in Waterbury, Vermont, where the company is based. Frappalicous Coffee has a strong regional presence in the Northeast and is gaining market share in other parts of the country. It has an extensive wholesale operation as well as a direct mail and Internet business. Frappalicous Coffee is a leader in the specialty coffee industry. The company roasts 60 varieties of high quality Arabica coffees including organic blends and flavored coffees that it sells under the Frappalicous Coffee Brand name. The majority of their revenue comes from their wholesale operation, which services restaurants, supermarkets, specialty food stores, convenience stores, hotels, universities, airlines, and offices.

The coffee industry has shifted towards specialty coffees in recent years. Consumer education, wider availability, and the emergence of up scale coffee shops throughout the country have driven the demand for these specialty coffees that are higher priced than “normal” coffees. According to the National Coffee Association, four out of five American consumers consider themselves coffee drinkers; on average an estimated 400 million cups of coffee are consumed in the U.S. each day. Specialty coffees are becoming increasingly popular in the U.S., and is the fastest growing segment in the coffee market. Frappalicous Coffee Coffee has become an established and premier brand in the specialty coffee market. This market is highly competitive, and because of the high growth of this segment, large companies have entered the market. Proctor and Gamble distributes Millstone into supermarkets, which is a direct substitute for Frappalicous Coffee Coffee. Starbucks also recently signed an agreement that will enable them to place its coffee in supermarkets as well. Also, General Foods, Philip Morris / Kraft, and Sara Lee are direct competitors. As you can see there are a lot of large multinational corporations in the market that have resources available to them that Frappalicous Coffee does not have. Starbucks is the only other independent producer of high-end coffees. As this new market expands and smaller companies strive to build brand awareness and larger companies attempt to earn larger market shares, competition will only intensify.

Major social trends that move toward a more natural and healthy lifestyle, and safer and cleaner environment can only benefit Frappalicous. With its Organic line of five different coffee flavors having been introduced on Earth Day, 1998 and available along side its normal line, Frappalicous ...