San Churro Audience Primary Audience: 0 Females 0 Our core target market are females aged between 18-35 years old who are social instigators. 0 These are the women who organise the catch-ups and are . aware of places to go and form the social glue in their circles. 0 Students Secondary Audience: 0 Families with young children 0 Couples 22% 78% Introduction Students have been invited to present a marketing plan to an Australian owned and operated company called San Churro chocolateria. The hero product for these restaurants is the Churro, a Spanish doughnut, however the San Churro restaurants are a destination for people to get together and share 'sweet moments', mainly focusing on the company's renowned chocolate. The client has written a brief for RMIT Marketing Principles students, the main objective of which is for students to recommend to San Churro a charity partner to drive awareness of a cause that their customers and the wider community feel a connection to. The focus of this marketing plan will be to recommend a charity partner to San Churro and to develop a promotional/launch campaign to raise awareness of the relationship as well as to increase sales which will assist in raising funds for the charity. In order to make a recommendation to the client as to which charity would make a good partner for San Churro, students will need to review the history of the company, understand its business objectives, conduct an analysis of the external and competitive market in which San Churro operates, consider the 4 P5 of marketing and how they apply to San Churro and develop an understanding of the current customer prole and key target markets for San Churro and based on this, recommend a suitable charity whose own objectives will have strong appeal to San Churro customers. SAN CHURRO CHOCOLATERIA SAN CHURRO & RMIT BRIEF SAN CHURRO Just like the traditional chocolaterias of Spain, San Churro is a destination for friends to come together and share a sweet moment. Where every amigo is welcome to celebrate life, the Spanish way. Churros (Spanish doughnuts) are hand-crafted in-store using a traditional recipe and delivered straight from the Spanish churrera to your plate, served with cinnamon sugar and only the best couverture chocolate. Our churros are made from scratch every day in our stores using a traditional (vegan-friendly) dough recipe. They are cooked fresh to order and delivered straight from the Spanish churrera to your plate. Served with only the BEST chocolate, you won't want to enjoy Spanish doughnuts any other way! We don't take ourselves too seriously, but we're serious about chocolate. Our chocolate is sourced from only the best chocolatiers, and is all authentic couverture (the fancy stuff). Unlike the confectionery chocolate used by most brands, our couverture chocolate is made using a high percentage of cocoa solids and 100% pure cocoa butter. Only couverture chocolate can truly be called 'REAL' chocolate and real chocolate lovers shouldn't accept anything less CORE VALUES S P A I N CORE VALUES Strive for Success with Passion & Pride be Adventurous behave with Integrity Nurture the Customer SAN CHURRO VALUE PROPOSITION We create authentic churros and chocolate to deliver an enriching Spanish desert experience. Share your San Churro experience: f /sanchurro O @sanchurro_au #sanchurro SANCHURRO.COM SAN CHURRO SUPPORT OFFICE Suite 1, Level 1, 281 Brunswick Street, Fitzroy VIC 3065 | ABN 48 111 298 830 POSTAL ADDRESS P.O Box 4216, 54 Brunswick St, Fitzroy VIC 3065SAN CHURRO CHOCOLATERIA BRAND PILLARS GENUINE Playful Welcoming BOLD PROUD BACKGROUND: . For seven years, San Churro has partnered with Beyond Blue as their preferred Charity Partner and has raised over $250,000 to help their 24/7 Mental Health Support Services. Every year since the partnership was formed San Churro has run a "Share a Churro Week" campaign to drive awareness of the relationship and to raise donations via a '$2 donation for Double Churros' mechanic. The campaign has always been well received by our customers and also taps into the theme of San Churro being a destination for people to connect with friends/loved ones and enjoy a shared experience, thus inherently supporting the social connectedness and alignment with Beyond Blue and their cause After seven successful years San Churro believes now is a suitable time to explore another charity partnership that can support our business objectives and help drive awareness of a cause that our customers / community feel a connection to. COMPANY OBJECTIVES: . To propose a new charity partner for San Churro to replace BeyondBlue and present a launch campaign to introduce the new partnership to our customers / community. The proposal must include recommendations for choosing the new partner and showcase the alignment with San Churro's core values. Ethe core values and target audience. . Once a new partnership is formed San Churro will then explore how we can launch it and create an annual plan for driving awareness as well as dedicated campaigns to drive donations. Share your San Churro experience: f /sanchurro @sanchurro_au #sanchurro SANCHURRO.COM . . . . . . . . . . . SAN CHURRO SUPPORT OFFICE Suite 1, Level 1, 281 Brunswick Street, Fitzroy VIC 3065 | ABN 48 111 298 830 POSTAL ADDRESS P.O Box 4216, 54 Brunswick St, Fitzroy VIC 3065SAN CHURRO CHOCOLATERIA DELIVERABLE: . Students to prepare a professionally produced marketing plan. . Students to present to San Churros their findings. CAMPAIGN OBJECTIVES: To promote charitable affiliation with the new partner and raise money to help fund their support programs Drive customer donations through a week long campaign that utilises item/s from the food menu Promote and establish San Churro as a place to socialise and celebrate being together BUDGET: Groups have a $20,000 marketing budget. RESOURCES: https://www.sanchurro.com/ https://www.franchisebusiness.com.au/san-churro-ceo-reveals-business-success/ https://www.sanchurro.com/menu/ Previous campaigns https://www.sanchurro.com/share-a-churros-week/ https://www.businessfranchiseaustralia.com.au/latest-news/san-churro-and-its-customers- raise-3817805-beyondblue Video https://www.youtube.com/watch?v=moSiuHgxhNO San Churro brand assets https://drive.google.com/drive/folders/1ZSKDiiEsaRLAX7gaiDOj_QWdr5WxKB10?usp=shari ng Share your San Churro experience: f /sanchurro O @sanchurro_au #sanchurro SANCHURRO.COM SAN CHURRO SUPPORT OFFICE Suite 1, Level 1, 281 Brunswick Street, Fitzroy VIC 3065 | ABN 48 111 298 830 POSTAL ADDRESS P.O Box 4216, 54 Brunswick St, Fitzroy VIC 3065RMIT Classification: Trusted L Questions to ask San Churro Friday 16 April Diploma of Commerce Group 4 Questions Red answers - questions asked in the face to face session Green answers - questions asked in the online session 1. Do you have a process that you go through before you introduce a new product on your menu? (LA Group) 2. What has been the most challenging part of bringing the San Churro brand to your target market? (Katarina - LA Group) All San Churro (SC) product is sourced from overseas, coffee from Sth America, Chocolate from Spain. Have been shipping challenges etc. From a marketing point of view SC is a small fish in a very large pond (industry segment - Quick Service Restaurant category). A lor of businesses fighting for customers in this segment. SC have had to be very creative to appeal to a finite group of customers. 3. What industry segment is San Churro in? ie. Hospitality, Restaurant, Fast Food, Confectionery (chocolate)? (LA Group) Hospitality segment. Quick Service Restaurant (QSR) category within the hospitality segment. Not so much fast food as in Mcdonalds or KFC. More table or waiter service at SC. 4. What are the products that make the most sales at San Churro? Hero product - Churros for one or for two - both instore and delivery. Customers keep coming back for the 'classic'. 5. What is the work environment and culture like at San Churro? (Katarina - LA Group) The culture at San Churro is based around their core values - Strive for success, Passion and Pride, Be Adventurous, Behave with Integrity and Nurture the Customer. Joe commenced in January 2020 just prior to Covid. The SC team was very collaborative. They had a conference in Byron Bay. Regular catch ups with the CEO. Atmosphere/culture is fun, creative and seems like there is lots of potential and enthusiasm. Staff made to feel like they are part of the family and feel valued. 6. What external environmental factors (the economy, cultural tastes, legal requirements etc.) have the most effect on your business? (LA Group Sourcing of products are affected by global issues (environmental, political, climate etc.) may impact on sourcing of products.7. Who do you consider to be your main competitor/s? What do you think differentiates San Churro from your competitor/s? (LA Group) Great question! In Australia (Joe to provide a list to Marina). Competitors include Krispy Kreme, Dunkin' Donuts, Max Brenner Chocolate Bars, Oliver Brown Chocolate Cafes (mainly NSW based), Coffee Club, Starbucks etc. as well as ice-cream brands Haagen Dazs, Ben and Jerry, Gelatissimo, and also privately owned ice-cream parlours like ColdRock and many sole trader stores. 8. I read that San Churro are targeting vegan consumers. Why did you decide to do this? (Katarina - LA Group) A decision made some years ago when Veganism was becoming more popular. Growing demand led to some menu changes to appeal to this growing segment of vegan consumers. 9. Will San Churro offer more savoury items rather than all sweet. Yes, Spanish tapas style - a great extension to the SC brand and focus is on the snack-based, on the go demand. Soon will be available in all stores. 10. Why did San Churro choose Beyond Blue as their charity partner in the first place? What is most important to San Churro when deciding on a new charity partner? (LA Group) See Q9. 11. "What made you pick Beyond Blue for the partnership with San Churo" (Dayton Group) The focus of Beyond Blue is around social connectedness and support from family and friends. This ties in with San Churro's Sharing is Caring message - that we're all about sharing life's moments with friends and family. We understand the important role this type of social connection plays in health and wellbeing. 12. "How does the partnership with beyond blue benefit the business" (Dayton Group) 13. "How do they want Australians to perceive their company" (Dayton Group) As the ultimate destination to be with loved ones and friends and a place to connect and share in a fantastic experience and enjoy great food.23. How did San Churro's start? (Kim Kunfunda Group) Founder, Giro Maurici was living and travelling in Spain eight years ago with his wife when he stumbled across chocolaterias and decided to recreate the concept in Australia San Churro opened its doors to the world in 2006, in Fitzroy, Melbourne. From humble beginnings in a tiny 47sqm hole in the wall, San Churro has since grown to 53 stores. 24. What would San Churro loved to include in the campaign? (Kim Kunfunda Group) 25. What was San Churro's profit from the last campaign? (Kim Kunfunda Group) 26. Why did San Churro's choose Beyond Blue and what important parts of Beyond Blue really resonate with San Churro's? (Kim Kunfunda Group). 27. Will you continue with your current business plan/business model or will it change in the future? Business model is to grow. Last 3-4 years, business growth has been quite stagnant. Slower rat of growth compared to 15 years ago. Looking at external capital opportunities and also looking to expand into NZ and possibly the UK. 28. Have there been any thoughts about product adaptation for the Asian market? Joe thinks there may be a SC store in Mumbai India, established by one of their SC franchisees. SC Australia not very involved with it but has made them curious about expanding into SE Asia and there would definitely be a need to localise the menu but also maintain the traditional churro and chocolate products which are the core of the company. From Joe's Presentation Main customer groups: Females 18- 35 Families with young children Couples (young, dating) Integrated marketing communications Social Media: Facebook - 250,000 followers Instagram - 43,000 followers San Churro AppFrom Joe's Presentation Main customer groups: Females 18 - 35 Families with young children Couples (young, dating) Integrated marketing communications Social Media: Facebook - 250,000 followers Instagram - 43,000 followers San Churro App RMIT Classification: Trusted J L Website - 120,000 visits per month (80% via mobile) Google Search PR - news and influencers El Social Loyalty Program Email database - 400,000 customers Charity programs - Share a Churros week Products in development Fitness market with high protein products (not public knowledge yet) The Brief New charity partner to replace Beyond Blue Campaign: 1 week, $20,000 marketing budget Objective - raise money for charity, drive traffic into the store or to the website, increase sales, raise San Churro's profile as a 'Business that cares' students need to show why they chose the charity how does the chosen charity align with San Churro's values and target audience (Joe did not specify one particular target audience must include timing (time of year) and which products will be included in the campaign Winning team will win a $50 San Churro voucher per team member16. How are you going to maintain customer retention and loyalty as trends toward health consciousness arise. (mum Group} |_ Great question! Need to continue to making members feel rewarded, so lots more promotions and campaigns to continue to build relationshipslincrease retention [reduce churn where consumers go to SC's competitors. Still confidential, but 5C are developing new offerslproducts as well that addresses the healthconscious consumer. 17. With COVID~19 and recession happening, lots of business have opted to go for technological way to gage their customer. If it's okay, do you have any current project for San churros? E.g.: drive in to bring customer promo on Net: {WNair Group} During Covid, SC rewrite their marketing plan and developed new online marketing programs including relaunch of the El Social program. New direct delivery platform {including delivery partners W etc.} Redesigned App for ordering and platforms like FE and Wwill be used to drive traffic to the App. Two campaigns done on thich have been successful. More coming soon including developing SC Wchannel with interactive content. 18. As a small mm it's hard to maintain customers and obey rules, so how do you do this? How do you maintain? What's your company advantage. (WNair Group) 19. What are SC's weaknesses and strengths? Great question but I need to go away and think about that. 20. Trends towards vegan and dairy free products are high right now. Now with COMB19 and all a lot of business have been hit and their budget is low and in order to survive, they pick up on new trends. My question is how wgoing to offer vegan and dairy free chocolates when its usually expensive. Do you produce them in house or do you get them from someone else? Wair Group} 21. Regarding charities, in which type of sector San churros wishes to do their charities? Is there a type of charities that San churros have in mind to partner with in Australia? {WNair Group} Totally open for students to make recommendations, do not need to be large charities, could be an emerging charity. It is all about alignment of the charity with the SC brand and whether the cause (charity's mission and focus} would resonate with SC's core target market. 5C are very excited about hearing the students' ideas. 22. What ithe criteria for quality assurance {0A} of San churros? Is it the same standards for all franchises or is it difEecenLAnd what are the ways san churros maintaining it. {WNair Group} Every store follows the same 0A standards and receives the same training. 5C have teams of people who do regular check ins of the SC franchised stores to make sure everything is as it should be. Also have mystery shoppers. If store does not perform to the required standard, there are certain penalties applied to ensure that the store improves. Look at the SC Franchise l