Social Strategy for Sprout Coffee

Sprout Coffee
Assignment #2
Group
50 points
Learning Objective: Illustrate ability to apply strategy-setting steps to case
Format of Submission: Assignment may be completed in this word document or in another format such as powerpoint. Must include all the components of strategy setting and illustrate your rationale. One document per group.
Background:
Sprout Coffee (fictitious coffee company) is a wave 3 coffee company based out of Chicago started in 2018. Sprout Coffee has 10 locations located in Chicago and 15 locations spread across Grand Rapids, MI, Milwaukee, WI, Madison WI, and Indianapolis, IN. The competition is other Wave 3 roasters such as Intelligentsia Coffee, Stumptown Coffee Roasters. Sprout Coffee is growing revenue, and wants to attract more investment but needs to boost revenue in order to secure outside funding.
Wave 3 Coffee Definition:
“Increasing coffee quality, more direct trade, a greater emphasis on sustainability, lighter roast profiles, innovative brew methods – these are all intrinsic to third wave coffee. We chase sweetness, complexity, and distinctiveness in our brews. And we’re happy to pay more to receive this.” April 10, 2017 Perfect Daily Grind
To generate higher revenue, the owners determined they need higher awareness of Sprout Coffee. People that try Sprout Coffee love it and are loyal customers. However, so many just do not know about them.
The owners of Sprout Coffee focus is on the best coffee and coffee based drinks. They really pride themselves on the welcoming, relaxing vibe in their coffeehouses. They do not concern themselves with marketing creating their problem of awareness.
To help solve this situation, the owners decided to hire Tyler as the marketing lead to generate increased revenue ahead of trying to get more funding. Tyler and the owners agree that social media is the marketing channel to start with immediately.
Tyler decided to focus on developing a social strategy, starting with an internal audit and came up with below points.
-292100-1187450Results of Internal Audit:
1 Primary channel is Instagram with 1,000 followers and low levels of engagement (lower than benchmark and our competition). Post frequency is 3-4 times per week. No clear content strategy.
2 Have a Facebook page and post what is on Instagram to Facebook. No engagement. Limited reach with no paid media.
3 Content focused on pictures of coffee and promoting in store events. No use of video
4 Not using other channels and not using any paid media.
5 Not responding to inquiries on IG and FB, though there are not many comments.
Create the Social Strategy for Sprout Coffee
1 Path to Purchase; what is the buyer’s journey to purchase for Sprout Coffee? Where should they focus their efforts across the Buyer’s Journey? (5 points)
The buyer’s journey starts at the trigger stage, where the buyer gets the awareness of the coffee seller. The trigger can come from email advertising, social media, and Sprout Coffee websites. The second phase is a review where the potential client evaluates different coffee suppliers. The third stage is purchase decision, where the buyer seeks evidence of the best-fit supplier. The next stage is the decision or purchase phase. They will purchase if the user is happy with the product Sprout Coffee offers. The last stage is renewal which entails engaging the buyer to make more purchases in the future.
2 Internal Audit: see data above, no additional research needed. Any conclusions? (5 points)
The business needs to use Instagram, which already has 1000 followers. It needs to increase the level of engagement to ensure that the target audience gets the awareness of the brand's existence. There is a need for a clear content strategy to ensure the business knows what it wants to achieve on social media. Content should be customized depending on the social media platform used. What is posted on Instagram should not be transferred to Facebook without customization. Paid media should be used on social media to improve visibility. There should be a shift towards the use of images and videos. Through the videos, the business can explain its product better to the consumer. Lastly, the business should respond to all inquiries on social media. No comment or message should remain unattended.
3 Competitor Review: Investigate either Stumptown Coffee Roaster or Intelligensia (pick one). Complete the competitor review grid and provide at least 3-4 actionable insights for Sprout Coffee. (10 points)
Stumptown Coffee Roaster Analysis
Channel(s)

Followers

Engagement %? Use excel file in Week 2 as example on how to calculate

What type of content or topics are they posting/tweeting?

Content format…video, photos, events, articles.

Use of Influencers?

Facebook

75,759

0.38%

Healthy benefits of coffee, collaboration with community

Video, photos, events, and articles

No

Twitter

71,028

0.36%

Events like the National Coffee Day, new coffee products, and new prices

Memes, photos, videos, and events

No

Instagram

279,200

3.29%

Promotions

Photos and videos

No

TikTok

54

0.04%

Events and testimonials

videos

No

3-4 Insights based on the data collected:
a) Sprout Coffee needs to be on multiple social media platforms. It ...