Analysis

          The analysis entails a series of investigative work supported by the hours of research done by our team members. The studies referenced throughout this section are supportive evidence discovered through IUPUI’s private databases and credible online sources. The analysis of the different resources provides a strong foundation for the recommendations that follow.

​

Using a Loyalty Program, Promotions, & Discounts to Increase Coffee Sales

​

          To enhance coffee sales at Nine Lives Cat Café, we propose a strategic approach involving the implementation of promotions, discounts, a loyalty program, and exclusive deals. These initiatives will not only attract more customers but also foster a loyal and engaged clientele, ultimately driving growth and success for the café.

​

Nine Lives Cafe Furr-midable Loyalty Program: Because Cats Have Nine Lives, and So Does Your Loyalty!

​

         Loyalty programs are a well-established strategy for boosting customer retention, and they play a pivotal role in sustaining a successful business. One of the most effective approaches is to introduce a tiered loyalty program, a system where customers accumulate points or receive rewards with each subsequent visit. This not only creates a strong incentive for them to return but also fosters a deeper and more enduring sense of loyalty to your brand. By doing this, you can build a dedicated customer base that keeps coming back for more.

          As customers engage with your program, you gain access to data that allows you to understand what they value, their spending patterns, and even their preferred products or services. With this information, you can refine your marketing efforts and tailor special promotions or offers to specific customers, ensuring that your strategies are well-aligned with their desires and needs.

          Notably, a study conducted by Dr. Magatef and Dr. Tomalieh in 2015 highlighted the exceptional effectiveness of tiered loyalty programs. Their research demonstrated that these systems significantly increase customer engagement and retention, ultimately driving business growth. So, when you're looking to foster stronger connections with your customers and enhance their loyalty, the implementation of a tiered loyalty program is a wise choice, backed by both theory and practice.

​

​

​

​

​

​

​

​

​

​

 

​

 

 

 

 

 

 

 

 

Whisker-twitchingly Good: Irresistible Promotions!

​

          Introducing occasional promotions can be a useful tool for elevating the visibility and desirability of Nine Lives Cat Café in the highly competitive coffee market. By implementing these promotions strategically, NLCC can generate buzz and excitement, ultimately drawing a greater number of customers to the establishment. These promotions can be intricately designed to align with specific events, holidays, or seasonal themes, creating a sense of relevance and urgency for patrons.

          Special offers could encompass a range of enticements, including discounted coffee, exclusive deals on select menu items, or bundled packages that cater to the preferences of diverse customers. For instance, offering a seasonal pumpkin spice latte during the fall months can captivate the taste buds of both regular patrons and those seeking a limited-time experience.

          Incorporating promotions can also pave the way for cross-selling and up-selling opportunities, as noted by Berman (2006). As customers are drawn to the café by the allure of a discounted beverage, NLCC's staff can guide them toward complementary food items, snacks, or merchandise, thereby increasing the overall average sale per customer visit. Overall, this approach isn't just about increasing sales in the short term; it can contribute to a higher customer retention rate and brand loyalty as customers associate NLCC with memorable experiences.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

 

 

 

 

Cats and Cheers: Unlock the Happy Hour Discount!

​

           To strategically address the challenge of slower business periods, it's advantageous for Nine Lives Cat Café to introduce designated happy hours, during which discounted coffee and exclusive deals on select items are made available to patrons. By adopting this approach, NLCC can effectively counteract the typical lulls experienced during off-peak times, which can increase sales and maintain a steady flow of customers. Happy hours present an excellent opportunity to increase foot traffic during traditionally quieter hours.

          As customers become aware of these special time-limited promotions, they are more likely to plan their visits to NLCC during these periods to take advantage of the attractive offers. For instance, offering a "Buy One, Get One Free" deal on coffee during a late afternoon happy hour can motivate customers to stop by NLCC on their way home from work, thereby increasing both sales and customer engagement.

          Extending the benefits further, the notion of immediate rewards in the context of happy hours, as highlighted in the research conducted by Jeon and Yi (2003), plays a vital role in shaping customer behavior and retention. Immediate rewards can foster a sense of gratification and value for patrons, making them more inclined to return and continue engaging with the cafe's offerings. This can translate into not only improved customer loyalty but also increased word-of-mouth recommendations, which can drive additional business growth over time.

 

Purr-fectly Paw-some: Your Birthday Treat at Nine Lives Café!

​

          One highly effective approach to solidify the bond between Nine Lives Cat Café and its loyal customers is by implementing a personalized birthday offer system. Recognizing and celebrating a customer's birthday with special perks, such as a complimentary coffee or a generous birthday discount, goes a long way in making them feel truly valued and appreciated by the café. This personal touch not only serves to enhance the customer experience but also has the potential to significantly impact their decision to choose            NLCC as their celebratory destination on their special day.

           This practice of acknowledging and rewarding loyalty can have a profound impact on the emotional connection between customers and the brand. When NLCC takes the extra step to remember and commemorate important milestones like birthdays, it builds a sense of closeness and mutual appreciation. As a result, patrons are more likely to feel a deeper affinity for NLCC and develop a sense of brand loyalty that extends beyond transactions.

          Berman (2006) highlights the importance of loyalty programs in nurturing stronger attitudes towards the brand. This can lead to not only higher visitation rates on birthdays, but also more frequent visits throughout the year. Overall, satisfied customers who enjoy their birthday perks are more likely to share their positive experiences with friends and family, thereby contributing to the cafe's reputation and word-of-mouth marketing efforts.

​

​

​

​

​

​

​

​

​

​

​

​

​

 

 

 

 

 

Using Social Media to Advertise 

 

         Our teams wanted to better understand why social media advertisement is important for successful and popular small businesses like NLCC, so we explored the benefits of online advertisements and how marketing has changed over the years.

 

Benefits of Using Social Media to Advertise 

​

          Social Media has changed the world of advertising.  According to Adeleke, “Social Networking offers small business leaders substantial communication benefits, empowers purchasers, and reduces marketing costs”. Using social media allows a business to connect and engage with its customers as well as inform them of updates, sales, and new products. Keeping customers up to date will keep them intrigued about your business. 

          Adeleke performed a study among successful coffee shops in her area and found that all of the coffee shop owners had a Facebook to keep engaged with customers. Engaging with customers makes them feel seen and more likely to spend their money at your business. Using social media can also help you access multiple audiences. Different age groups use different social media. Older generations are more likely to use Facebook while younger generations flock towards Instagram and Tik Tok. With the 9LCC target audience being college students, the cafe should focus on advertising on Instagram and TikTok.

 

Using Social Media to Advertise

​

          Social Media's popularity has rapidly grown in the past few years. According to Shuliakouskaya,  “In 2021 the number of social media users grew at a rate of 13.5 new users every second, totaling up to 4.62 billion”. Out of all of the social media sites: Facebook, Instagram, and TikTok have the most popularity.

          Many small business owners create pages for their social media to advertise their products and show what a visit to their company would look like. On Facebook, you can create an event calendar to show upcoming events and the specifics about them. Other profiles can then RSVP to the event, which is visible to their friends. Both Facebook and Instagram have features that allow you to make posts and daily stories. This can be a good way to spread information about the NLCC coffee. Daily stories are posted and can be viewed for 24 hours. Advertising can be as simple as taking a picture of the barista making a cup of coffee and posting it to your Facebook or Instagram story. 

​

Running A Social Media Page

​

Step 1: Creating a Profile  

​

          The first step to running a social media page is creating a profile. It's important to make your username/handle as close to the business name as possible. Burnham discusses how making the account name similar to your company will help the page pop up when potential customers search the name. With new profiles it is also crucial to add a profile photo and biography. Your username and profile photo are going to be the first thing future potential customers see. Which is why it is important to make sure they reflect the company well. A photo of a cat holding a coffee cup would be a good profile photo for the 9LCC, because it lets the viewers know this profile features cats and coffee.

 

Step 2: Building a Following 

​

          Initially, building a following can be difficult. If you are starting from scratch, a good first step to take is to follow other cat cafes, your personal friends, and employees of the business. Asking people to give you shoutouts can also make the profile more visible. Other Instagram users can screenshot your business profile and post it on their story for all of their followers to view. Once a profile is created, its audience is decided through campaigns and purposeful advertisements (Burnham). This is why it is important to cultivate your content towards the intended audience, in this case college students. 

​

Step 3: Post Content/Create a Content Calendar 

​

          Posting content can be a strenuous task, especially for people who do not use social media very often. When it comes to running a business page, creating a content calendar can be helpful in organizing posts. According to Shuliakouskaya a content calendar can be useful by organizing content, date of posting, managing campaigns, and tracking deadlines. A content calendar can be made via Excel and can plan out what days certain content will be posted and when it will be filmed. This can especially help when it comes to posting an equal amount of cat promotions vs coffee promotions.

           To get the most out of a content calendar it should involve the platform, date, time, and copy of what is going to be posted. Another benefit to a content calendar is that if it is planned correctly, all of the filming and photography for a month can be done in one day. Once a content calendar is set up for a month, all you have to do is post the content at the chosen date and time. 

 

Step 4: Interacting with Other Users

​

          Responding to customers and commenters is a crucial part of running a business's social media. Burnham discusses how this two way social media interaction helps connect the business and consumer and builds relationships with supportive customers. When a customer feels seen they are more likely to want to visit your business and buy products. Responding to comments includes comments made on public posts as well as answering private messages. It is important to make sure all replies are professional and reflect the company's values.

          Another way to make customers feel seen on Instagram is to ask polls on your story or open up the anonymous question option and post answers on your story. The polls can be utilized to see what customers would like to see more content about, what drinks they like the most, etc. Customers that feel seen are more likely to want to spend their money. 

​

Creating an Inviting Environment and Hosting Promotional Events

​

          To increase coffee sales at Nine Lives Cat Cafe, promotional activities such as coffee tastings, creating an inviting environment. Through our research we will walk you through the benefits of hitting all three of these bases. 

 

Coffee Tasting Parties

 

          Hosting coffee and pastry sampling parties is a great way to connect with the community while increasing product sales. Although sampling can be expensive it is another form of effective couponing that improves sales short term. Lynette D. Hazelton wrote, “Sampling costs more than couponing because of the added labor costs. But like couponing, sampling can generate dramatic short-term sales improvements.” (New York Times, 1989). Sale improvements are critical whether small or large, it fosters the return and loyalty of customers. While customers are enjoying coffee samples, take time to inform people about the purpose of your shop, and create a good environment. It’s crucial to take advantage of the sampling period so you are able to increase profits.

           Lynette D. Hazelton wrote, “Marketing gurus estimate that product sales can increase fivefold to sevenfold during the sampling period at a cost to manufacturers of about $100 to $135 a day per store.” (New York Times 1989). In order to increase profits time and money has to be invested into the community and this can be effectively done through sampling parties. 

 

Atmosphere and Retail

​

          Creating an inviting comfortable atmosphere is crucial for improving sales and customer satisfaction. Your shop should be an escape from the ordinary for customers and this can be achieved through material features, sensory mobilities, and social interactions. Material focus refers to location, decoration, and elements that make your shop different from the everyday experience. Joy, A et al. wrote, “Customers aptly recognize physical elements as foundational dimensions of affective retail atmospheres” (Journal of Retailing 2023). It is important to have decorations and designs that evoke feelings of relaxation and peacefulness for example, neutral paint colors promote feelings of relaxation.

          Sensory mobility is an approach you should trigger in your customers subconsciously. This can be achieved through lighting, furniture, music, and smell. Joy, A., Wang, J. J., Orazi, D. C., Yoon, S., LaTour, K., & Peña, C. wrote, “ More than vision is employed in the experience of pleasure.” (Journal of Retailing 2023). This approach creates positive memories for your customer making the thought of coming back to your shop sentimental.

          Social interactions are how you attend to your customers. First impressions are important as soon as a customer comes in they should be greeted in a friendly manner. This is the third and most important step. Joy, A., Wang, J. J., Orazi, D. C., Yoon, S., LaTour, K., & Peña, C. wrote, “ As first time visitors, they had come in feeling positive but the lack of engagement turned them away without even starting an interaction” (Journal of Retailing 2023).

          Touching base on these three elements is crucial for improving sales and guaranteeing the return of customers. Nine Lives Cat Cafe has done a great job achieving Material Focus through cats, the ambience could be further improved by touching all these bases.

 

Selfie Station

          Selfie stations are great stopping spots for customers either when on their way in or out.  Creating contests like “selfie of the week” and providing hashtags will give more publicity and demonstrate customer appreciation. When hosting events customers can take pictures with family and friends, viewers will be able to see the location drawing more attention to your shop.

         Fox Liam wrote, “Li also sees the new installations as positive exposure for Chinatown businesses, both for drawing people into Chinatown and for people taking pictures with the selfie stations in front of businesses and drawing attention to them on social media” (Ottawa 2023). Selfie stations are good publicity for all types of businesses; they draw in crowds and improve sales. Selfie stations draw in younger crowds, therefore your shop should have decorations that fit the cafe’s aesthetic, the more aesthetically pleasing the better.

​

Finding Marketing Volunteers with a Social Media Focus 

​

         In order for Nine Lives Cat Cafe to utilize its maximum opportunity, it should reach out into the community to find individuals that are willing to volunteer and build their resume at the same time. This will help Nine Lives with promoting their coffee and connect with younger audiences. In some ways, the business can also gain business knowledge from the younger generation and learn more about new resources and routes Nine Lives can take to better improve their business.

 

Why Students Understand Social Media the Best 

​

          To ensure the business is connecting with a younger target audience, Nine Lives should make communicational work with college students. Research done by Alison Shields and Adam Pertua emphasizes suggestions and guidelines for social media managers looking to maximize the effectiveness of their social media recruiting strategies and campaigns. Sheilds (2019) These suggestions are targeting teens and college students, explaining that businesses have received researched data that has supported a rise in profits when this target audience is reached. Shields also supports the fact that college students would have a great opportunity learning, aka growing their resume, which in return would also benefit the business. 

 

How Students Find Work and Volunteering

​

         Students, like the world, have evolved with the times and so should open-minded businesses. This study conducted by Ronald Burke, shows that cooperative students appear to have more realistic expectations, have better self‐insights into their own abilities and desires, and report higher self‐confidence. Burke (2006) They also found out that additionally, the job search process among students appears to have shifted from more traditional approaches to electronic channels such as the internet. This shows that times are changing and in order to bring in new customers to drink coffee, connecting your resources with colleges nearest you can greatly benefit a small or big business. 

 

Why Kelley Students have to Ability to help Nine Lives 

​

        The Kelley school of business is infamous for creating the best environment for business students to flourish. As the economy evolves, so do the objectives being taught in the curriculum. According to further research focused on Kelley School of Business, they have had previous assignment methods achieve academic balance but were time consuming and limited. They then learned that they were able to develop and implement an integer-programming-based computerized method for forming teams. Schultz, K. (2007)This new program has proven to achieve equity in team members’ academic performance, functional diversity, and demographic balance. Therefore, the Kelley school of business is a great resource to connect with when there is a small or big business involved.