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10047 Downloads 16 Pages 3882 Words
People says wait for the right time to start a new business and this line effectively applies to the Joy Coffee and Beans Cafe which is attempting to start a coffee cafe with new idea and concept i.e. recreational facilities like reading, painting, drawing etc. The company is coming with this idea as there is no firm in the market which is providing such type of cafe to the consumers but substantial growth can be seen by following this concept. In the plan, it has been list out that the company will offer most demanded products like Espresso Coffee, Cappuccino, La Costa Cold Coffee with ice cream, Latte, Hot Chocolate, Mocha, Cheese Sandwich, Vegetable Sandwich and Chicken Sandwich to the consumers which will bring more excitement and satisfaction among the consumers with respect to the firm. In order to check the feasibility of this decision industry analysis was done in which it was found that the industry is growing significantly as the revenues of existing business firms are enhancing in large numbers each years.
Opening of a coffee shop is not a new thing as there are already many well established coffee firms like Starbucks, Barista, Coasta Coffee, Caffee Nero, Amt Coffee etc. in the market. However, the concept or idea with Joy Coffee and Beans Cafe is attempting to come in the market is completely different with the existing big coffee firms and this makes it to be counted as an entrepreneurship firm (Gilligan and Wilson, 2012). The motto or new idea with which Joy Coffee and Beans Cafe is trying to come are recreational activities like paintings, reading, drawing and music to the people who have strong desire to learn something different or unique things like arts and paintings with people.
The main products which will be offered in the Joy Coffee and Beans Cafe will be Expresso Coffee, La Costa Cold Coffee with different Ice cream flavours according to the customer's requirement, Cappuccino, Latte, Mocha, Cheese Sandwich, Vegetable Sandwich, Chicken Sandwich with lettuce. The main products which are decided to be offered in the shop are selected on the basis of doing of market research (Handford, 2015).
The particular products and services which are selected to be offered in the coffee shop will help customers to spend their best relaxing or recreational time with taking sips of coffee and sandwiches. It is anticipated that people will love to visit Joy Coffee and Beans Cafe every week or weekends to spend good time with their friends and to experience recreational activities which is difficult to do in the present engaged life or schedule (Westwood, 2013).
The idea and concept with which the company is coming into the industry will add significant value to customers as the company will provide recreational facilities to consumer along with most demanded products of the market. It is mostly seen that people wants to do different but they don't get time and proper place to explore themselves (Mcdonal, 2007).
Coffee Shops is the industry which has been recording significant growth in the UK as well as in other countries. According to the market research reports of Allegra World Coffee Portal, Coffee Shop industry made a total revenue of 7.2 billions in the year 2014 which recorded a growth of 11.9% from the previous year (Thomas, 2014). In the report, it was further added that the UK coffee market is estimated at 18,832 outlets in which the branded coffee chain segment has attained £2.9bn turnover across 5,781 outlets in UK. The branded UK coffee chain segments achieved growth in sales by 11.9% whereas other non-branded outlets had made growth of 4.9% in which 271 stores were added in the year 2014 (Coffee loving Britain, 2013). In addition to that the report also laid down the fact that Coffee Shop business is proving to be the most prolific for UK economy.
From the market research report of Allegra World Coffee Portal, it is found that Costa Coffee has the largest number (1821) of outlets in UK as compared to the competitors firm like Starbucks Coffee Company (824) and Caffè Nero (590). The report indicated that branded Coffee Shop outlets companies has a combined share of 56% in the market. The significant growth in Coffee Shop segment stimulating firms to expand their number of outlets (Statistics and facts on the coffeehouse industry, 2015). In the report, it was acknowledged that the estimated total coffee shop market in UK is of 16,501 outlets and will grow exponentially in the coming years. The report laid down the fact that the industry attained the growth of 6.4% from the previous year and attained the total sales revenue of ￡6.2 billion (Euromonitor International, 2014).
The potential customer market is segmented by adopting demographic and psychographic characteristics of consumers. In other words, the targeted customers for Joy Coffee and Beans Cafe will be upper middle class customers who wants to spend their quality time in Coffee Cafe where they can also do recreational activities (Barringer and Ireland, 2012).
The potential consumers of the firm will be targeted by using concentrated marketing strategy. Here, people will be communicated through pamphlets, social media and newspapers and referral marketing strategy.
The USP of Cafe will be the best coffee experience along with recreational facilities like Painting, Music, Reading, Sketching. The USP or positioning of the firm will be developed with the tag line “Brisking coffee with lively experience”. With this tag line, the concept of innovative coffee service with recreational activities will be developed in the minds of potential consumers.
The products will be sold to the customers directly from the outlet only. In future, expansion of business can be anticipated through franchising system.
Joy Coffee and Beans Cafe will provide discount offers to the customers if they will come in group of 4 and more than 4 people. Discounts would be flat 12% discount on the all the products (Gilligan and Wilson, 2012).
The marketing material which will be used in Joy Coffee and Beans Cafe will be menu card, catalogs, website, customers reviews, log diaries.
The firm will be promoted by using the media channels like newspapers, digital billboard, providing of sponsorship and lifestyle magazines (Thomas, 2014). The selected media channels are used as the firm is attempting to focus on selected customers who fall in upper middle class and has good interest in spending quality time in Coffee Cafe's by doing recreational activities.
Online marketing of the firm will be done by using Google Adwords (SEM), Social Media (Facebook and Twitter), Blogs and Third Party Websites.
The products which will be offered in the Cafe are selected by assessing the customer needs and requirements. A coffee shops business could be considered incomplete if such products are not offered to the consumers (Euromonitor International, 2014). As it is known that Joy Coffee and Beans Cafe is entering into the Coffee Shop market with recreational facilities, so the products like Espresso Coffee, Cappuccino, Latte, Cold Coffee, Sandwiches, Hot Chocolates will have higher sales because people usually loves to drink coffee while doing recreational activities or spending quality time with their loved ones. The products which will be offered in Joy Coffee and Beans Cafe are as follows-
The complete idea of establishing Joy Coffee and Beans Cafe is different and innovative with respect to the existing competitors. There is no branded or non-branded firm which are operating coffee cafe with recreational facilities in London as well as in other place of the world. Apart from that, the taste and shape of products would be different from the competitors firm.
The giant competitors firm like Starbucks, Costa Coffee, Caffe Nero offers products like Cappuccino, Espresso Coffee, Latte, Hot Chocolate and Cold Coffee to the consumers (LavinSky, 2013). These products are very demanding in the industry, thus Joy Coffee and Beans Cafe also decided to offer the particular products in order to reap the benefits from the growing market trend.
The concept and idea with which Joy Coffee and Beans Cafe is coming in the market is totally different from the existing business activities of competitors firms like Starbucks, Caffee Nero. There is no firm who are providing coffee cafe services with recreational activities (Price Watch July, 2014). So, this type of innovative services will bring enthusiasm among consumers and will stimulate them to visit the cafe and spend their good time by doing recreational activities.
The resources which would be required to offer the particular products and services are as follows-
Financial Resources- To open the Joy Coffee and Bean Cafe substantial funds would be required for buying of equipments, payment of remuneration to staff, purchasing of furnitures and fixture, books, painting board, interior decoration etc.
Human Resources- In Joy Coffee and Beans Cafe, a staff of 5 people would be required in which 2 would be the managers and 3 would be the catering staff. The account manager and store manager would be appointed on the basis of their year of experience and educational qualification. It is decided that the account manage required to be an MBA finance with 3 years industry experience whereas the store manager must be a graduate in commerce with 2 years experience. In addition, that manager will be hired who are also having knowledge of using CRM, AIS and Microsoft Excel Software.
Technological Resources- The technological resources which will be required in carrying out of the given business would be a computer system with software like Excel, Customer Relationship Management and Accounting Information System software.
Physical Resources- In order to establish the cafe in successful manner following physical resources would be acquired or bought-
The major challenge and issue which could be arise or emerge in Joy Coffee and Beans Cafe would be non-availability of coffee beans in market due to any natural environment condition. The other challenge which could be seen is increase in prices of coffee beans in international market which bring direct negative effect on the profits of the firm as cost would be increased (LavinSky, 2013). The other challenge which could be anticipated is adopting of proper care in order to provide appropriate health and safety to consumers.
From this report, it can be concluded that the firm can successfully enter into the industry with recreational facility idea as it is new and innovative in the industry. Moreover, people will like the concept and will feel excited to buy the products and services of Joy Coffee and Beans Cafe. The products which are selected to be offered in Joy Coffee and Beans Cafe will help the firm in attracting substantial customer response as in present time people feels very excited and satisfied to eat food or hot chocolate or drink coffee in cafe with their friends and loved ones. The significant advantage which Joy Coffee and Beans Cafe will add in customer satisfaction will be the providing of recreational facilities to the consumers.
I feel joy and enthusiasm after completing of the business plan related to Coffee Shop. It has been my crave to start a business but I did not have the knowledge about the way the decision related to starting of a business is made. However, after enrolling myself in the course of Small Business Development, I able to get significant knowledge and understanding about how to start a business and the activities which are needed to undertake for it. I am very thankful to my parents who persuade me to opt for Small Business Development course to fulfill my dreams and desire to become an entrepreneur.
By developing the particular business plan I able to enhanced and enriched my knowledge related to business and the way people can be persuade buying your products and services. The details about the learning and skills which I harnessed from the given business plan are detailed in underneath points-
Acquired knowledge about coffee industry- In the present business plan, I did industry analysis which help me to improve my critical thinking ability about how to analyze the market situation and the source from where this information can be accessed. I attempted rigorous efforts to analyze the coffee shop industry of United Kingdom, Europe and United States. The analysis helped in acquiring sound knowledge about the way the industry is growing and expanding in the different geographical regions of the world. From the market research reports, I learned that coffee shop industry achieved a total sales turnover of 7.2 billions in the year 2014 and recorded an incremental growth of 11.9% from the year 2013. The industry analysis also gave me the knowledge that UK coffee market is estimated at 18,832 outlets in which the branded coffee chain segment 5,781 outlets in United Kingdom.
Identified the customer pain- The given business plan is followed after identifying the customer pain i.e. to not having of any coffee shop with recreational facilities in United Kingdom. One the customer pain was identified then according plan was made to address the determined customer pain with utmost ease and convenience. It was decided that the customer pain would be relieved by opening a coffee shop with recreational facilities where customers can come and enjoy their interested recreational activity by taking sip of coffee.
Able to practically applied market segmentation and targeting strategy- Earlier, I read much about market segmentation and targeting strategies but I never able to practically apply it as no such things happened to apply it. But, when I started the given business plan, I came to know about the way the market segmentation and targeting strategy is applied. In the given business plan the market is segmented on the basis of demographic and psychographic characteristics of consumers. On the other hand, the targeting startegy was selected as concentrated marketing strategy by seeing nature of the business.
Determined pricing strategy- The other important knowledge which I harnessed from the given business plan was related to deciding the prices of the product. During the course I learned about that a business organization can adopt different pricing strategy by analyzing the market scenario and the value which the product give to the customers. From the market analysis, it was discovered that coffee shop industry has tough price competition and by keeping this thing in mind prices of products were decided in align with competitors pricing strategy and target customers of the firm. It is said that deciding of price of the product is very crucial aspect as good price brings good business for the firm. So, by keeping this knowledge and understanding into consideration, I made significant efforts in deciding of the best price of the products.
Developed comprehensive understanding related to marketing mix- From the given business plan, I able to developed comprehensive understanding and knowledge related to marketing mix which includes product, price, place and promotion. Earlier, in the class it was understood about the concepts of marketing mix but never applied in practical concept but this time I got the privilege to apply my theoretical knowledge in practical aspect which results in giving me mind-boggling experience. I got to know about what medium to select for product promotion, distribution and sale. The business plan about the coffee shop make me learned that the channel of communication and distribution is decided on the basis of nature, type and scale and scope of the business.
Able to acquire knowledge about the legal aspects to be followed at the time of start-up of business- I learned earlier that there are some legal aspects which are required to be followed for the starting of a business. The legal aspect used to make me worried that what to do, how to do, when to do, where to do but when I joined the Small Business Development course I got to know that legal aspects are seems difficult but it is not in actual if a person undertake the things with proper planning, knowledge and execution. In the present business plan, after proper analysis and gather information I found that I have to go for some legal papers like certificate of incorporation, Tin number, contracts like mortgage papers or rent papers if the shop is taken on rent or lease.
Financial projection and feasibility analysis- The most exciting and thrilled part which I found was at the time of doing of financial projection and estimation about the given business idea and concept. At the time of preparation of financial projection, I firstly identified that source on which I have to make expenditure to continue my business activities, after the identification of expenditure, I decided the prices and estimated the unit sold to make meet all expenditure and make reasonable profit. In the financial projection, I also assumed about the assets and resources which I would require in carrying out the business functions in efficient and effective manner. In addition to this, I also made cash flow statement in order to estimate the total cash inflow and outflow from the business. The complete financial projection gave me the understanding about the way I have to manage my cash transaction in order to maintain profitability and to avoid the situation of running out of cash.
Competitor analysis- Competitor analysis was also a significant part in the business plan which helped in understanding the different key players of the market and their customer market share. I found that Starbucks, Coasta Coffee and Cafe Nero is the main key players in the market whose business are growing with exponential growth year by year. Competitor analysis also gave me the comprehensive information about the pricing strategy followed by different branded firms and this ultimately helped in determining the prices of the products which I would sell in Joy Coffee and Beans Cafe.
Communication skills- It is known that communication skills plays vital role in present time to present your idea and exchange knowledge and information etc through oral or in written form. Earlier, I was not that much good and was also not confident in writing communication skills but after completing the given business plan, I believe I achieved significant improvement in the writing skills. I didn't expect that I would able to write a business plan inn appropriate manner but after getting knowledge from the course Small Business Development, I able to accomplish it with my best possible efforts. In addition to writing skills, now I feel I am also good in expressing my ideas and thoughts in paper which will definitely help in future towards developing of the best career ahead.
Practical management knowledge- I books, I read that management is an art and science and I understand this thing in practical aspect from the given business plan. I comprehended that art is your way of undertaking things while science is how effectively you undertake those things with the help of defined methods and techniques. In the given business plan, I used methods like secondary information analysis, financial projections and estimations. In addition to that I also learned about the resources I would require carrying out the coffee shop business in rightful manner.
Framing organizational structure of the business- In the given business plan, I framed hierarchical organizational structure in order to ensure the business activities would go in smooth and effective manner. I learned about different organization structure like hierarchical, flat and democratic in the course but here the democratic organizational structure is selected on the basis of business requirement.
Thus, at last I want to conclude my words by saying thanks to all those who helped me to grasp this invaluable knowledge and learning. I am hopeful that my almighty god would help me in my all endeavor towards business actions and practices.
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