BUMGT5928 : Strategic Enterprise Planning : Business Organization tha
Answer:
Providing the best quality of food items that to with keeping the factors on priority that are “Hygiene and Health” will be the mission statement of Lexus. Coffee square.
Objectives
The objective of the café for the first year will to become the best coffee connoisseur in that region and convert the profits from the very first month of operating. The target margin will be 60% initially. This will be possible by keeping designs that will not only be attractive to the eyes of the customers but also be made for the operations which are efficient and fast (McKenzie, 2017). The employees will be trained for the best coffee an food service and preparation techniques to be used to attract more customers. In addition to this, we will employ strategies which are focused on building a strong base for the customers' loyalty and to increase the sales of the products with large margins like that of the espresso drinks.
The mission is to put in the best efforts to make a different and unique place for the customers for socializing in a chilled out and comfortable environment to enjoy their best espresso in town. We shall help them engage to leave back the stresses of life by giving peace of mind through great service which is friendly with a great ambiance and location which convenient to locate with best items on the menu to relish (Abam, 2018). The profits shall be invested in bettering the satisfaction of the employees along with giving a satisfactorily return for the shareholders.
The shop will give the best taste in coffee to the customers. This will be done by using very high-quality ingredients and procedure of preparation. The menu and the layout of the store will be focused on making an increase in the sales for high margin in espresso drinks. Along with the brewed drinks like tea and coffee, refreshing drinks will also be served who would want a different take from caffeine. Snacks like salads and sandwiches will also be on the menu and also coffee beans to take home for those customers who want to make their coffee at home. Every product will be made with skimmed milk and soy milk will be given as an option.
USP
The USP (Unique selling point) of the Lexus Coffee square can be the food items and the specialties served within the café. Moreover, the ambience and the environment plays a significant role in attracting the visitors and the guests.
The business
Business Background
At some point of history, the Cadillac was famous, then came the Mercedes and after that came the Lexus. Coffee square will be the Lexus of the coffee café business. It will be providing high-quality service with a great ambiance and environment.
The biggest focus of this café will be to become a daily necessity for all those coffee addicts around and make people rush to this café as they try to relax and forget the stresses of daily life. It will be a very comfortable place for those people who want to meet up their friends or relax with a book. It will come like a package (Wynne, 2016). The demand for caffeine is increasing and therefore a good service is important. We shall bring the best coffee to the table in that area which will complement the books that they can enjoy reading while enjoying their coffee. The café will work under a 900 square foot and will be located in the Woolworth area of Australia. It will take approximately 200,000 capitals from ANZ bank for a loan.
Registration details
Business name
Lexus Coffee square
Business structure
Lexus Coffee square is under Ltd. structure.
Business location
Australia
Date established
28th May 2018
Business promoters
Promotional agencies are hired for making promotions and advertisements.
Start-up expenses
|
S.No. |
Particulars (Expenses) |
Amount |
|
1 |
Rent |
10800 |
|
2 |
Electricity |
6560 |
|
3 |
Telephone |
3240 |
|
4 |
Entertainment expenses |
1123 |
|
5 |
Salary |
120000 |
|
6 |
Conveyance |
4560 |
|
7 |
Miscellaneous |
1850 |
|
8 |
Staff and Welfare |
750 |
|
9 |
Mobile |
1754 |
|
10 |
Stationery |
965 |
|
11 |
Advertisement |
8653 |
|
12 |
Raw material |
3265 |
|
13 |
Wages |
12450 |
|
14 |
Repair and Maintenance |
1106 |
|
15 |
Disposable |
3546 |
|
16 |
Cleaning |
892 |
|
17 |
Website Expenses |
695 |
|
18 |
Generator |
2986 |
|
19 |
Rates and Taxes |
4500 |
One of the important angles are the various products and service which will be offered at the café. A café which serves espresso, cappuccino or latte with books; along with it a great ambiance for the customers to relax is promised. The prices might be high for the high-end coffee but it will be given out according to the service and product (Armstrong, Kotler, Harker & Brennan, 2015). Moreover, the business plan proposed is a different kind service as it wills one of the first cafes with a bookshop in Woolsworth which is a good location for the potential customers. The café has enough funds to implement the services which are technological and skilled workers. The security of the customers is a priority as well. The biggest strength is the informative books for the customers.
Weaknesses
A new café in the business has a high risk of being unsuccessful in many countries. Since it is a new business in the industry factor like: not all Australians are book lovers some may like reading but not that enthusiastically as in other countries which give way to an uncertainty of customers. The business is high priced for both the maintenance of equipment and books till it will control the cost and time to complete the deadlines of the café, which affect the profit.
Opportunities
A café like the coffee square which will be growing franchise, some people like to have coffee, some like spending time, some like alone time as well. In this way it is always occupied in so many ways, the saturation is a good thing as well (Arrawatia, 2018). The target place is also accessible to a big lot of people who like coffee and want to explore new places, new taste in food and a new aroma. A lot of tie-ups with companies for sponsorships and promotions also benefit the customers and the café and the partnered as well.
Threats
A lot of other tea houses and cafes to replace the proposed business especially would choose the cheap ones. Similarly, there are many tea houses and other cafes which are available in the same market, and also are cheaper (Baker & Saren, 2016). Australians are very practical, they choose the alternative way of thinking which will cost them less. And also, the market trends choose the healthy way of eating and drinking and coffee doesn’t come in the list which is not a good thing. Although the sales and the profits will get high and the competitors arising are also expected.
Market segmentation
Market segmentation is the process in which a business divides the market of the potential customers into the various groups and segments on the basis of some of the characteristics (Chernev, 2018). Consumption of caffeine in Australia has shown an increase in the growth and the strongest growth in the gourmet coffee. The economic ups and down in the past years up till today has not refrained the coffee business from growing. The business is literally facing poor sales, bankruptcy and negative balance sheets in some cases but still, the business has shown signs of positive progress. The business will build loyalty amongst the customers by providing the taste of coffee and an environment which is relaxing and ventilated and spacious as well.
The cafeteria coffee square is planning to open the new café in Woolworths supermarket stores so that they can provide the wide options to their customers (Brand & Rolland, 2018). The segmentation for the business is given below: -
Demographic segmentation
This segmentation divides the customers on the basis of the age, income, occupation, gender, and many other factors (Schramm, 2018). Over here, the cafeteria segments the both male and female with the different age groups and the customers that belong to the low, middle and high-income groups. This customer segment includes bachelors, single people, married couples, young children and many others.
Behavioural segmentation
This segmentation makes the differentiation between the customers on the basis of behavior, usage and the decision making. Coffee square café considers this market segment because they know the fact that there are numerous numbers of people who consume coffee on daily basis (Hollensen, 2015). Along with this, the customer who visits the supermarket like to consume coffee whenever they shop at stores because this is the way through which they can make themselves refresh. Most of the people make the quick decision for the coffee.
Geographic segmentation
Coffee square café will offer the services to the local customers who visit the store in Australia (Baker, 2014). Therefore, it can be said that the company will offer its services to the rural and urban region in Australia.
Psychographic segmentation
The company considers this market segment because this segment differentiates the people on the basis of social class and lifestyle (Wilson and Gilligan, 2012). The coffee is one of the products which are considered as the part of the lifestyle of people. Therefore, the people of Australia like to consume coffee as a primary product.
Demographic environment
Demographics are the study of human population in terms of density, sex, race, occupations, and size. The demographics in Australia have transformed the marketplace into a more fragmented micro market from a mass market which is differentiated by factors like sex, age, education, and ethical background. The recent demographics show that they are now more educated and white collared, changing in age structures. Such changes make the organizations design programs and products for certain micro market which they want to target. All the demographic variables potentially affect the instant coffee market and significantly in the micro markets (Burch, 2018). The ethnic markets are a part of the growing Australian market population who has a clear brand preference. They demand a variety of coffee styles to fit the tastes which make for the development of new marketing strategies. Like most of the coffee is preferred is espresso by Italians that is why they have invented instant options.
Economic environment
Consumers have the purchasing power in the Australian market as like any other market to back their desire up for the products. Although there is an important basis of competition of the coffee products and changes for the prices and a big effect on the manufacturers market share.
Economic factors do have an effect on the Australian market which includes the Australian dollar. The coffee beans are from various countries and the rates also vary with relative exchange rates. The Australian dollar has a low value currently which drives the input prices of the manufacturers passing it onto the customers.
The association of coffee producing countries accounts for the three-quarters of the world coffee bean production which announced the plans to control the prices. And the possible effect is yet to be known which will drive small-scale manufacturers out of the market for if the prices go too high.
Natural environment
Since the coffee producers use the natural environment it is also important for the macro environment of the Australian coffee industry. The consumers are boycotting the products which are manufactured to damage to the environment. This puts the pressure on the manufacturers to make sure of all the procedures which are environment-friendly. Issues which involve coffee producers using pesticides and pollution from the plants, water wastage and land erosion and depletion of minerals.
Technological environment
Ever since coffee was discovered in 1000AD the techniques to harvest, grow manufacture or process the coffee products has changed. The fertilizers, machinery and the irrigation systems are automated now which has increased efficiency and also improved product quality. The recent factors are the advances in processing and development of coffee machines to be used at home.
The technologies have made it possible to produce a very wide range of coffee variety with a high quality. Like Nescafe has introduced a café latte range for instant espresso. And the freeze-dried technology for increasing the shelf life of the product which is such an advantage. In the past few years, the inexpensive coffee plungers have improved the attractiveness of coffee products which are pure. Most importantly the internet shopping is allowing the customers to get it from the suppliers straight away as well.
Political environment
The Australian market is subject to a lot of laws to regulate the business of the café including the food and health norms, pollution promotions and labeling. Although it doesn’t affect that much on the Australian market.
Cultural environment
Many changes in the Australian culture and the emergence of new cultures have had a large effect on the café business in Australia. Anybody who is very serious about contemporary Australians will understand their behavior. The recent trends show that the Australians are very concerned about the health issues, diet, stress, and fitness. They prefer decaffeinated products more now. The era of coffee the real coffee culture might be growing. People who don’t drink coffee are becoming connoisseurs of coffee. It is not just a product anymore but a self-expression. There also has been the culture of subcultures which is a group of people who share values based systems like situations and common experiences of life.
Marketing mix
The marketing mix is defined as the set of actions, tactics that the company make use to promote the brand or product in the market (Schmidt, Spann & Zeithammer, 2014). The marketing mix strategies of the coffee square cafe are discussed below that the company is willing to open.
Product
The product is one of the important elements of the marketing mix which is an item that is produced to satisfy the requirement of the people (Kotler, 2015). The main product of the café will be coffee along with some snacks such as bakery items, toast, and dietary products. In Australia, the people are diet conscious due to which the company decided to offer coffee with some healthy products. This reflects that the company will make use of the differentiation strategy in the products (Boehe and Cruz, 2010).
Price
The price is the amount that the customer pays to enjoy the service (Kotler, 2015). The price on which the café will offer the coffee is $ 3.00. This price is the lowest price because Café square is known for the offering the product at the low prices with the best quality. Along with this for the snacks, it varies to the different types of the dishes and the same goes for the bakery products. The price for the toast that will range from $40-45 and that will base on the ingredients of toast.
Place
The place is the position where the café will offer its service. The café has decided to open their stores in the Woolworths department stores which are one of the ways through which the company can extend the range of the target customer. Moreover, café will be able to earn the profit in the market. Along with this, the café will make use of the intensive distribution strategy in which they will decide the ways through which they can offer the products at different outlets of the Woolworths (Rushton, Croucher and Baker, 2014).
Promotion
Promotion is one of the essential components of the market which helps the company in improving the sales and the brand recognition. Coffee square café will make use of the different tools for promoting the product in the market.
- Direct marketing: - In direct marketing, the cafeteria coffee square will make the people aware about the outlets in the Woolworths stores through online media which is Facebook, e-mail marketing, and Linked In. The company will create a page through which they can generate the awareness (Toffler, 2016).
- Advertisement: - This tool of advertisement is considered as one of the important tools through which they can make the numerous people aware about the services at the single go. The company will make use of the TV commercial and the newspaper media to promote the new outlets in the departmental stores (Grant, 2016).
- Sales promotion: - Company will offer the discount coupons and gift coupons to their customers at the initial stage as this is the way through which the people like to come again and again.
Positioning strategy will be developed by the business entity for establishing the products distinct entity in the market regions. The price quality approach and the use or application approach can be used by the business entity for advancing the approach in the organizational structure.
Budget
The budget is the estimation of the amount that the company will spend on promoting the products in the market (McDonald & Wilson, 2016). This budget is the promotion which includes the estimated amount of different tools that is used by the company to promote the product.
|
Promotional Budget | |
|
Method |
Amount |
|
1. Direct Marketing |
|
|
Online media |
|
|
|
$200.00 |
|
|
$800.00 |
|
E-mail Marketing |
$100.00 |
|
|
|
|
2. Advertisement |
|
|
Print Media |
|
|
Newspaper |
$500.00 |
|
TV commercial |
$600.00 |
|
|
|
|
3. Sales promotion |
|
|
Discount Coupons |
$500.00 |
|
Gift coupons |
$800.00 |
|
|
|
|
Total amount |
$3,500.00 |
The above states strategies can be effectively implemented by the company with the use of the support of the Woolworths organization because the company can help in expanding the outlets of café in their departmental stores (Brace, 2018). The implementation of the strategies needs the funding also for which they need to arrange the capital and this capital is essential for the promotion strategy. Along with this, the café need to understand the taste and preference of the targeted customers so that they can effectively implement the strategy of product diversification. The cafe will only be able to offer the products at the low cost when they will be able to form the relationship with the suppliers to get the raw material at low prices.
Conclusion:
In the limelight of the above-executed analysis, it has been concluded that a business plan for cafeteria coffee square in Woolworth store in Australia is required to be developed as the entity is planning to make expansion and develop business in Australian regions by making collaboration with Woolworths. The business corporation is a well-recognized brand name as it is offering diverse range products and services that to with high quality. The below summarized in a report is the business plan that is required to be developed for Coffee Square as the entity is planning for making expansions in the Australian markets. The entity is planning to set up a café in the Woolworths store in Australia. The business plan is segmented in various divisions for developing a business plan that comprises of developing target segments so that the business firm can promote the products and services properly, after that development of marketing strategies is also done so as to deal with the competitors and competitive business environment. The last part comprises of development of an estimate of budget and implementation of all the strategies and developed above.
Introduction:
A business plan is a guide or a roadmap for the business organization that s planning to make establishments or expansions in the new market regions. A business plan can also be considered as a business document that comprises of all the details and data regarding a business idea that the entity is planning to develop and establish (Finch, 2016). These days everyone loves caffeine. Approximately 33 million cups of coffee are consumed in Australia every day. Which is a lot of coffee? What makes it even more happening to join a café business are the low starting expenses involved as compared to other business start-ups. In the scheme of opening a café, the cost is not that much compared to the other businesses which involve a lot of money. The second aspect which makes it even more appealing is that although it a food service business is that is the biggest growing business and has high-profit margins than restaurants and that is an advantage.
Coffee café is also a very classy business and almost everyone wants to be acquainted with a café that they visit often and tell their mates about. You will not find people that excited talking about any other establishments that may like. Coffee cafes are so personalized because they are third home for most of the visitors and travelers (Brinckmann & Kim, 2015). They are chilling places where people often carry their laptops or books or office work or to even meet up with their friends.
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Arrawatia, S. B. D. M. A. (2018) FUTURE PROSPECTS OF WOMEN Entrepreneurship in India. International Journal of Innovation in Engineering Research and Management ISSN 2348-4918, ISO 2000-9001 certified, E, 5(01).
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Kotler, P. (2015) Framework for marketing management. India: Pearson Education.
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