Abstract
Uptown Coffee Company is the only locally-owned coffee shop in rural Anson County, N.C., competing against a conveniently located national big box brand. Studies show that local coffee shops offer a better customer experience and strengthens the local economy (Pena, 2022). This paper will explore a comprehensive social media strategy targeted at community-oriented, rural coffee drinkers in Anson County with a goal of increasing brand awareness and product sales of Uptown Coffee Company.
Capstone Thesis Project
Introduction
Second to only water, coffee is the most consumed beverage in the United States (2022). Research shows that the explosion of Starbucks as the paradigm of coffee shops has transformed the coffee shop business to be more than an establishment that sells coffee products, but one that offers cultured, creative and innovative workspaces with reliable Wi-fi. (Lozzi) Uptown Coffee Company has been in business less than one year and aspires to be the coffee shop of choice in Anson County. Uptown is developing a website and has not implemented a full-scale marketing campaign to grow its business to compete with its main competitor. Empirical research informs a comprehensive social media strategy named “Anson Runs on Uptown” to build the brand awareness of Uptown Coffee Company. This paper will identify social media strategies to grow the brand of the company; reveal results of a random survey to influence the marketing of being a locally-owned business; and consider the transformation of coffee shops and the subsequent evolution of Uptown Coffee Company as the premier coffee shop in Anson County.
Thesis Statement
Engaging the target audience through strategic social media communication, highlighting the benefits of being a locally-owned business, and influenced marketing through survey results are all factors that will grow the brand and increase sales of Uptown Coffee Company.
Situation Analysis
Company Overview and Current State
Uptown Coffee Company is a locally-owned coffee shop in uptown Wadesboro, N.C., with a second location on the campus of South Piedmont Community College (SPCC) in Polkton, about 9 miles west. The owner and manager is Corey Lowery, who assumed ownership of the coffeeshop on Sept. 16, 2023, at the age of 24. He is a native of Anson County and attended college at SPCC. The coffeeshop has six employees: an assistant manager and four baristas at the main location and one barista at the college site. Uptown Coffee Company sells an array of coffee drinks, both hot and cold, in addition to smoothies, refreshers, ice cream and homemade pastries. The business offers meeting rooms and workspaces as well as regular seating.
The goal of Uptown Coffee Company is to increase brand awareness and product sales. Lowery was an employee of the coffee shop when it was under different ownership and name. The objective is to differentiate his brand from the previous coffeeshop and to increase sales. This social media marketing strategy will raise awareness of the new coffeeshop, its owner and its products through social media engagement with the target audience, positioning Uptown Coffee as the primary destination for quality coffee products in the county.
Uptown Coffee Company maintains the clientele from the previous owner and is attracting new customers due to the owner’s involvement and volunteerism with the Uptown Wadesboro organization. The owner is a millennial himself, which offers a significant advantage in knowing how to attract this generation, but the company lacks the bandwidth to successfully execute effective marketing strategies. Uptown Coffee currently posts on social media platforms to include Facebook and Instagram primarily and is in the process of completing a website. Word of mouth has been the best tool of communication, however.
There are no known public relations issues for this client. The owner is well liked in the community due to his warm personality and the novelty of him being a young black man who owns a coffeeshop. There is a fragment of the population who supports the coffeeshop because they would like to see him succeed personally as an anomalous young entrepreneur for the area in which he resides. The coffeeshop has started to take online orders and offers curbside pickup, making it more convenient for customers. The coffeeshop has also partnered with a local elementary school to write messages of kindness on its coffee cup sleeves. The coffeeshop hosts live bands and worship services. All of these efforts are reflective of the company’s commitment to community and accentuates the experience of being locally owned.
This social media campaign will build on the current momentum of the company, offering a more structured plan and target audience. The goals are to increase followers on Facebook by 15 percent; increase community engagement on Instagram by 10 percent; and increase brand awareness on YouTube by five percent. Facebook’s success will be measured by the key performance indicators of audience growth rate percentage, click-through rate and conversion rate of click-throughs. Instagram’s success will be measured by the number of likes, the number of new followers and the number of positive sentiment comments using Instagram Insights. YouTube will be measured using the number of subscribers, the number of shares, and the average engagement rate. The latter is calculated by dividing all the engagement a post receives, including likes, comments, saves and favorites and dividing by the total number of followers on that particular channel (Macready).
SWOT Analysis
Internal
STRENGTHS
· Locally owned
· Only locally owned coffeeshop in the county
· Can offer a variety of flavors and customize orders
· Owner is connected as director of the Uptown Wadesboro organization
· Excellent customer service
· Online ordering and curbside pickup
· Gathering spot for fellowship, meetings, live music
WEAKNESSES
· Location - Off the main highway
· Lack of brand awareness
· Not enough bandwidth to devote to social media strategy
External
OPPORTUNITIES
· Social media marketing plan to increase brand awareness.
· Order delivery service
· Partner with local organizations
THREATS
· Indirect competitor is a national brand
· Managing growth of the business to maintain quality and efficiency.
Primary research is trending to show that coffee consumers in Anson County would prefer supporting a local business over a national brand because it yields a better customer experience. The social media strategy will highlight the local connection in its marketing strategy by introducing the owner as a product of the county, being a high school and college graduate of the county, and by pronouncing the owner’s involvement with the Uptown Wadesboro organization, in addition to spotlighting local customers. Uptown Coffee has the flexibility to be creative in developing or pairing coffee flavors and applying locally-inspired names to them over its competition, which has to comply with national brand standard flavors. The space and ambience of Uptown will also be touted in the messaging as a place where community meets over coffee or for study spaces or work-from-home alternatives (Lozzi). The competition does not offer these amenities.
Uptown Coffee Company is centrally located in uptown Wadesboro, which requires drivers to get off the main highway through the county, whereas the competition is directly on the highway making it more conveniently located. The promotion of its online ordering system will leverage this perceived weakness into a strength. Those in a hurry can order ahead and opt for curbside pickup. Additionally, magnifying the benefits of supporting local businesses will persuade consumers that a minor deviation is worth a quality product that is locally made and crafted (Pena).
A major opportunity for Uptown Coffee Company is the implementation of the social media strategy that is currently in development (Macready). An intentional social media strategy will increase the brand awareness of Uptown Coffee by being consistently in front of the target audience. The coffeeshop is also in the process of offering delivery service, which would profit it even more and deflate the location as a weakness. The owner’s involvement with Uptown Wadesboro also offers opportunities for partnerships, such as to host meetings for the Chamber of Commerce, school system, and other nonprofits, furthering exposing the coffeeshop to potential customers. These partnerships or advertisements for such will be incorporated into the social media messaging, honing in on its greatest strength, which is being locally owned.
Uptown Coffee Company is David and its competitor is Goliath, but those who know the Bible story are aware who wins in the end. The biggest threat is the national brand that is in the county. While the campaign will not directly target the competitor in its messaging, it will accentuate the advantages of supporting Uptown Coffee Company. The social media strategy aims to increase brand awareness and product sales, and as such, Uptown Coffee will grow in foot traffic and online sales demanding the need for more bandwidth. This may require more personnel to handle the increase. As to not decrease in its customer satisfaction, messaging will provide the customers with an expectation of quality takes times.
Competitive Analysis
Dunkin' Donuts presents as an indirect competitor of Uptown Coffee Company. Dunkin’ is the market leader in hot and iced regular/decaf/flavored coffees and pastries to include donuts, bagels and muffins. Founded in 1950, it is the largest coffee and donuts brand in the United States, with more than 13,200 restaurants in nearly 40 global markets. (Dunkin’) For 15 years in a row, Dunkin was ranked No. 1 for customer loyalty by Brand Keys, a New York-based brand engagement and customer loyalty research consultancy. (2021). It also prides itself on being the cost leader in its industry, offering quality coffee at a price consumers can afford over its competitors. (Market Analysis). The marketing strategy for Dunkin’ has changed throughout the years. It has evolved from blue collar to office workers to today’s younger generation. (Rodrigues)
Inspire Brands, Inc. purchased Dunkin’ Brands in December 2020, which included Baskin-Robbins, a member of the Dunkin’ family. (2020). Fourteen months later and inspired by its new target audience, a Dunkin’ franchise promoted as a “next-gen Dunkin’” and Baskin-Robbins combo store opened on the main highway in Wadesboro. (2022). Next-gen translates to a more modern store design; an innovative tap system for premium pours; mobile pickup areas; and increased energy efficiency. The addition of Baskin-Robbins to this Dunkin’ store also makes this location the market leader for ice cream.
The social media marketing strategy will differentiate Uptown Coffee from Dunkin’ by focusing on it being a locally-owned business versus part of a national chain, with an owner who was born and raised in the county. While Dunkin’s marketing strategy is to get you in and out (15 Writers), Uptown’s strategy will focus on the value of quality and customer engagement. It will promise the delivery of excellence customer service – where the barista knows the customer by name – with southern friendliness served along with good quality coffee products, ice cream and pastries competitive to Dunkin’.
Problem Statement
Lack of consistent and engaging content with its customers and prospective customers on social media to remain top of mind to coffee shop consumers in Anson County contributes to the loss of customers to its competition, which is more conveniently located. Growing brand awareness through a social media strategy leads to more intentional in-store traffic and loyal customers (Macready, 2022).
Target Market and Buyer Persona
Target Market
Uptown Coffee Company has a target market of working professionals ages 25 through 35 (2022) who live and work in Anson County, NC. They are community-oriented, believe in supporting locally-owned businesses, have some college experience, and earn between $30,000 and $60,000 (Census.gov) annually. Uptown Coffee Company provides them an array of quality coffee products in a warm and welcoming environment that fosters fellowship, creativity, and connections.
The target market is loyal and committed to their hometown and local entrepreneurship. They value commerce that is locally owned over national big box brands because they are motivated by giving back (Mahmutovic, 2021). They are deeply rooted in their community and rally behind programs that advance opportunities for the younger generation. Due to their exposure to college, they are familiar with the Starbucks brand and products, so they appreciate the small-town replica that Uptown Coffee Company delivers to satisfy that big-city experience that they miss after returning to a rural community (Barlow, 2023). Uptown Coffee Company provides them an array of quality coffee products in a warm and welcoming environment that fosters fellowship, creativity, and connections.
While research shows that consumers ages 60 and older are the most devoted demographic of coffee drinking, millennials drink the most coffee from coffee shops than any other generation. (2022). According to The National Coffee Association, coffee drinkers ages 25 to 39 consume more espresso-based and non-espresso-based specialty coffee drinks, such as cappuccinos, espressos, lattes, frozen blended coffees, cold brew, and nitro coffee, which is primarily purchased from coffee shops (Facenda, 2022)
Uptown Coffee Company has some engagement with this target market, but it is neither strategic nor consistent. The company has conducted one event tailored to this younger audience which included the sampling of four different specialty coffee drinks called a “flight.” The business has also created workspaces within the coffee shop to attract this target audience and markets it as a social gathering spot for this demographic.
Buyer Persona
Beverly Jones is a social worker at Anson High School. She graduated from college, got married and moved back to her hometown to serve her community. Her husband is a local attorney. She views returning to her rural, poor community as an opportunity to give back because her parents raised her that way. Her parents still live there. At age 26, she earns $45,000 per year. She lives in Wadesboro, the county seat, and enjoys volunteering. She assists Uptown Wadesboro in planning the Christmas parade; she is a stagehand at the Ansonia Theater; and she is an active member of Calvary Baptist Church, where she sings in the choir. She attends football games on Friday nights and is always rooting for the Anson Bearcats. She has a sticker on her car that reads, “Anson pride.” She supports local businesses and encourages others to rally behind hometown entrepreneurs. She has a Facebook page for professional use but spends most of her time on Instagram and TikTok. Beverly is looking for a coffee shop that offers her the same feel and atmosphere as a Starbucks – the kind she is used to in her college town, but one that is locally owned and allows her to engage in and with her community. She enjoys grabbing a cup of coffee from Uptown Coffee Company on her way to work in the mornings. On her way home, she might stop by for a smoothie or sweet treat. She likes holding meetings there with her church and civic groups occasionally. On weekends, she and her husband stop by the coffee shop after working out, which includes a brisk walk through downtown.
Secondary Research
Uptown Coffee Company has a target market of working professionals ages 25 through 35 who live and work in Anson County, NC, with some college education. While statistics show that those ages 60 and older are the most loyal coffee drinkers, having a cup every day (Joe’s Garage Coffee), the demographic that drinks the most coffee from coffeeshops are millennials. Millennials are the top consumers for espresso-based and non-espresso-based specialty coffee drinks, such as cappuccino, espresso, lattes, frozen blended coffee, cold brew, and nitro coffee. (National Coffee, 2022).
In rural Anson County, the geographic location for Uptown Coffee Company, the median household income is $42,000; the percentage of persons age 25 or older who are high school graduates or higher is 82.5 percent; and 11.4 percent of persons 25 and older have a bachelor’s degree. (Census.gov).
Based on research, the three social media platforms that reaches this target audience best is Facebook, Instagram, and YouTube. (Castillo, 2023). The statistic shows that 87 percent of millennials are on Facebook, 72 percent are on Instagram and 66 percent are on YouTube. This same survey on Gitnux Marketdata Report 2024, also reveals some other important data that will inform this social media strategy. For example, 78 percent of millennials reported purchasing a product after seeing it on social media. But this demographic does not trust traditional advertising. Instead, they trust online reviews more. (Castillo).
The target audience for this campaign are also drinking more coffee. According to a survey by the Food Institute, 65 percent of millennials aged 25-39 reported drinking coffee in the past day, setting a National Coffee Data Trend record high for this age group (Garwood, 2021). Equally noted, “among Gen Z, 46% of respondents aged 18-24 said the same, a figure that has increased 10% since January,” the study shows. The report cites the following reasons for the increase in coffee consumption: the innovation of product offerings, changing work patterns, and drinking coffee as a social activity.
Essentially, coffee is a culture with more people drinking it. Knowing the traits of coffee drinkers will also inform the messaging of this campaign. Shot-flavored lattes are the go-to order for 38 percent of people who go to coffeeshops (Allen, 2024). When featuring drinks of the day in the marketing strategy, it will be important to showcase what the consumer is more likely to order. Fifty-one percent of people purchase coffee from a coffee shop at least once a week and 54 percent of people spend $20 or less on coffee from coffee shops each month. (Allen). Millennials visit coffee shops not just for good-tasting coffee or even caffeine jolts, but for the atmosphere as well. Research shows the social transformation of coffeehouses into workspaces as alternatives to working from home and creative spaces inspired by interior design and special lighting. (Lozzi). Coffee houses are considered third places. First places are home or domestic.
Primary Research Design
Research shows that millennials, the target audience for this social media strategy plan, are more likely to respond to online or mobile surveys that are precise and short (Upadhyay, 2018) and when they know the people or company behind them (Mahmutovic). An online survey will be created identifying the owner as the author seeking information to help grow and sustain this locally-owned business. The communication will introduce the owner through this fashion: Did you know that Anson County has a locally-owned coffee shop? Meet Corey Lowery, the owner of Uptown Coffee Company, serving up your favorite coffee drinks at two locations: 114 W. Wade Street and on the campus of South Piedmont Community College in Polkton. In order to better serve its customers and attract new ones, please take a minute to complete this five-minute survey.
The survey will be posted on the social media channels of Uptown Coffee Company as well as shared by local and supporting businesses and organization of the coffee shop. There will also be a QR code generated and placed in the store for walk-in traffic to scan and complete as well. The survey will begin in January 2024.
The list of proposed questions follows:
1. How often do you visit our coffee shop? If you have not visited yet, please state why?
2. What factors influence your decision to visit our locally-owned coffee shop over other national chains in the county?
3. What type of coffee beverages do you enjoy the most? Espressos, lattes, iced coffee, frozen coffees, cold brew, etc.?
4. Are there any specific items you would like to see added to our menu?
5. What do you find appealing about the atmosphere of Uptown Coffee Company? (seating, workspaces, lighting, etc.)
6. Do you believe that local coffee shops offer a more unique experience? Why or why not?
7. What type of content would you like to see on Uptown Coffee Company’s social media channels? Videos, customer spotlights, drink of the month, contests, etc.
8. Which social media pages do you engage with the most? List in order of priority: Facebook, Instagram, YouTube, TikTok.
9. List other ways we can better serve you: (Behar, 2009)
10. What is your age? (used for marketing strategy)
Primary Research Findings
Introduction
An online survey was used as the primary research to corroborate the information that was ascertained in studies and statistics during secondary research and to determine if that information – demographics, social media platforms of choice and coffee drinking habits – was indicative of the geographic area of the client, Uptown Coffee Company. For example, nationwide standards show that young people ages 25-39 support coffee shops more than any other demographic (Facenda), but is that true for a small rural community with a population of 50,000? The information gained from the primary will be used to modify the social media strategy plan to better suit the needs of customers and to attract prospective customers.
Method
The target audience for the social media strategy is the 25-35 age demographic. Research shows that the best way to reach this audience is through short online surveys on the social media platforms that they use the most, which are Facebook and Instagram (Giancaterino, 2023). An online survey was developed through surveyplant.com. The survey initially began with a post on Facebook with a link to the survey. Popular and influential leaders in the county, including the owner of Uptown Coffee Company, were asked to share the post on their pages to garner a level of engagement. The second step consisted of boosting the post (paid) on Facebook with a specific targeted audience of ages 25-35 with a geographic location of Anson County. The third and final step included creating an ad on Instagram with a geographic location of Anson County and a target audience of ages 25-55. The decision was made to extend the age bracket based on a low engagement rate from the original age target in steps one and two.
The surveys were posted on Facebook January 25-29, 2024. The Instagram ad ran from Jan. 30 through February 3, 2024. According to Meta Business Suite, the majority of the audience, 1,352 to be exact, received notifications of the survey through their mobile app feed. The other popular ways the audience was reached were 160 audience network; 88 mobile in-stream video; 65 mobile suggested videos feed; 41 Facebook stories; 22 marketplace mobile; 18 Facebook reels; 10 desktop right column; nine desktop feed; six Facebook search results on mobile devices; five Instagram reels; four Instagram stories; and three Instagram feed.
The Facebook boosted post and the Instagram ad yielded the following total results: 2,096 impressions; 1,187 reach; and 218 engagement among 64.4 percent women and 35.6 percent men. The actual survey received 59 responses. Of those respondents, 28.8 percent were in the target audience age bracket of 25-35-year-olds. The majority of responses, 44 percent, were from ages 36-64. Eighteen percent were ages 65-78; and 6.7 percent were between 16 and 18 years old.
Results
The survey results were compiled by Survey Planet, which were a mix of multiple choice and essay questions. Most of the responses were in line with the national trends or characteristics of coffee lovers and coffee shop consumers regarding product choice, the ambience and locally-owned advantages.
What the results did reveal, however, was the benefits of launching a social media strategy for Uptown Coffee Company to build brand awareness, which validates current marketing trends. (Cramblit). Of the 59 respondents, 27 percent of those survey had visited the coffee shop on occasion and nearly 24 percent had either not visited the coffee shop and/or didn’t know it existed. This differential provides an opportunity for Uptown Coffee to further engage its community on the awareness of the business.
When asked what type of content they would like to see on Uptown Coffee’s social media channels, 38.9 percent selected drink of the month, followed by customer spotlights and contests. This data will be used to build attractive videos and use captivating photos to feature monthly drink selections as well as customer profiles. A promotional video is currently in rotation that features different drinks and convinces the audience that it doesn’t have to have one favorite. They can choose a new favorite each month. That promotional video was created based on the drink of the month survey result.
The survey revealed that customers or prospective customers would like to see more breakfast items, healthy snacks, and vegan options on the food side of the business but were overall satisfied with the coffee products. This result complements statistics that show millennials prefer fresh and healthy food choices over previous generations. (Skrovan, 2017).
Survey results that were not surprising included Uptown Coffee Company being a local business as the overwhelming factor in customers visiting it over a national chain in the area. This question yielded 35.1 percent, followed by customer service being a factor at 23.1 percent and quality at 18.7 percent.
This proves that highlighting the locally-owned aspect of the coffee shop will help meet the goals of the campaign to increase product sales. Additionally, the survey revealed that a local coffee shop offers a more unique experience, making the interaction more personal, where the staff learns the names of its customers, host special events for its community and can be more versatile in its offerings. (Pocono Dessert Co., 2023)
In alignment with national coffee data for the specific target audience for this social media strategy, lattes over any other product, are the drink of choice from coffee shops. The results showed that 40.4 percent of 57 respondents enjoy lattes, followed by 22.8 percent iced coffee and 17.5 percent espressos. Rounding out the list was frozen coffee and cold brews. This finding will build upon the current marketing of Uptown Coffee’s latte drink features on social media, where the company showcases different hot and cold lattes on its social media platforms.
The survey confirmed that the ambience of a coffee shop is also impactful to its success. Of the respondents, 36 percent said seating is what they found most appealing about Uptown Coffee, followed by 25.6 percent that listed lighting and 19.8 percent that listed workspaces. Once more, this information will be helpful in the social media strategy of highlighting Uptown Coffee’s space as more than coffee shop, but a place to work, gather and meet.
Information gained from the primary research will be used to shape a successful social media strategy tailored to the audience and potential customers for Uptown Coffee Company. While the target demographic is 25-35-year-olds, results from the survey behoove that the social media strategy not exclude the older generation as that was the most engaged demographic in the survey and is a possible pool of potential new customers. The social media strategy is on track with highlighting the advantages of being a local business, featuring drinks of the month and marketing it as more than a coffeeshop but a gathering spot and creative workspace.
Conclusion
Coffee is a staple in American beverage consumption. It is second only to water in being the most consumed. Coffee drinking has evolved over the years as well as coffee shops. What used to be a breakfast mainly kickstart to the day is now a pick-me-up at lunch and on the way home with a variety of new coffee flavors and drinks, as well as hubs of creativity and meetups. Uptown Coffee Company is evolving with the times by offering a variety of coffee flavors in a creative environment that has proven attractive to the demographic of coffee shop consumers: millennials.
Uptown Coffee is engaging this new target audience with a strategic social marketing plan to raise awareness of its brand and increase product sales. It will accentuate its local connection to the community versus the national brand competitor and highlight its products and customers. The owner has stated that his customers run the gamut and primary research shows that it does, from young teens to millennials to an older generation. The messaging of the social media strategy will have a goal of reaching the target audience while not alienating other demographics in the process.
Future research will further inform the social media strategy by engaging those customers who actually walk through the doors – in store foot traffic, with a customer satisfaction survey. Studies show that people are more likely to fill out surveys if asked by a person in front of them. (Christenberry, 2020).
These efforts will position Uptown Coffee Company as the premier destination of good, quality coffee in Wadesboro, offering residents a replica of coffee culture often seen in larger cities but with a hometown personal touch.
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