Starting a Business and Fundamental of Marketing

This project focuses on the fundamentals of marketing and starting a business, specifically in the context of a coffee shop called The Coffee Connection. It covers topics such as evaluating the external environment, competition analysis, and suggestions for the target market. The project also includes a SWOT analysis and discusses the competitive advantage of The Coffee Connection.

Project name: The Coffee Connection
STARTING A BUSINESS AND
FUNDAMENTAL OF MARKETING

Contents
INTRODUCTION:......................................................................................................................................3
An overview of your proposal business idea:..............................................................................................3
An evaluation of the external environment (PEST).....................................................................................3
A discussion on competition and overview of competitive advantage.........................................................6
A suggestion for the purposed target market:..............................................................................................7
CONCLUSION:..........................................................................................................................................8
REFERENCES:...........................................................................................................................................9

INTRODUCTION:
In order to start a business, there is a requirement of the entrepreneurs to be concerned about the
fundamentals of the marketing so that it can attract more people in a short period of time. In
accordance to this, it can be considered that to ascertain the viability of decided business
ideologies is quite important for the entrepreneurs. The current project is on the basis of coffee
connection which is an entrepreneurial operation which has been came into existence with the
concept of social and cultural interactions among the people instead of being involved in the
mobile phones that is mobiles phones are prohibited in this coffee shop. This project has been
launched in the 13 charlotte pl, fitzrovia in London. The main aim of this report is to acquire
more knowledge of the macro environmental components that will impact the activities of the
business venture. Moreover it is comprised of the competitive analysis and recommendations for
the target market (Brennan, Canning and McDowell 2020).
An overview of your proposal business idea:
The project that has been launched in the territory of the London is a coffee shop. The idea of
this shop has been enforced in order to have more of having a social and cultural relationships
among people instead of being indulged in cell phones and to adapt a healthy and a peaceful
lifestyle. The idea of this coffee shop is focusing on the local production, sustainability and the
tremendous customer service. The customers can join here for some time out, relax over the
freshly brewed coffee and can chill out with one another knowing each other’s cultures and can
interact with each other. With this idea, to create a healthy environment around people came up
to the entrepreneurs. This project can be started with the name of “the coffee connection”. This
project has been launched with a time course of 5 months and will start operating the business
procedures within the coffee shop and its unique ideology (Morgan, 2012).
An evaluation of the external environment (PEST)
It is essential for the entrepreneur to make it into the consideration that the business environment
under which the venture would be opened. It is kind of important because it is helpful in the in
the business to identify the possible opportunities along with the threats which are been faced by
the company during the period of its operations. According to the coffee connection, it is a

business which is dealing with people’s interactions to each other and to know the cultures of
one another. This will influence other people of that locality and it will be helpful for the
entrepreneur to expand their business and can face a couple of advantages with this fresh and
unique ideology. Hence it becomes essential for the entrepreneurs to be concerned about the
macro environment under which the project will carry out its procedures. And for this purpose,
the process of PEST analysis has been came into consideration on which will acquaint the
entrepreneurs with the positive and the negative aspects which are associated with the external
components of the business atmosphere. Therefore the PEST analysis for the coffee connection
is been listed below (Grubor and Jakša, 2018).
Political factors: the components of the macro environmental examination depicts the rigidity of
government of a country, its policies rules and regulations, the corruption status and the taxation
policies and so on. It is vital for an institute to consider the politics of the market in a way to
reduce the strategies which are allocated to them.
 Positive: The constant and rigid political criteria of UK states the prevalence of similar
party system under the country from the year 1950. So the coffee connection has a chance
to expand upon the constant political regulations and policies in order to enhance its long
term sustainability under the market of London.
 Negative: Relationships among ride, the business of coffee is greatly dependent on the
international trade. The trade associations among the countries which produce coffee are
playing a great role in identifying the net price of the beverage which eventually affects
the sales. Recently, there are couple of international trade which are helpful in the success
of the beverage industry but there are few uncertain trades like US and china or UK and
Europe which are laying the negative impacts on the coffee industry.
Economic factors: this consists of the factors including the inflation rate, the development of
economy in a market, the exchange rates of currencies and so on. It is essential for an
entrepreneurial project to mark it under the consideration a country’s economy by setting up the
actions under the territorial limits (Möller, 2013).
 Positive: basically the productive development of economy of UK creates several
chances for the coffee connection to expand upon its infrastructural facilities. With regard

to this, the business will be able to come up with the market needs and could present a
remarkable service to the customers.
 Negative: the growing income is the factor which lays the negative impact on the
business it means the consumers have more amount of money to spend each year. Now
this can greatly impact the goods industries of consumers which also impacts the food
and drink industries. In addition to this, with the growing income the consumers often
spend largely on the higher quality produce like the higher quality of the coffee beverage.
Social factors: this factor comprises the aspects like socio cultural beliefs of people of a country,
their lifestyle, their culture, and so on.
 Positive: it is based on the preferences of the customers whether they want to experience
an entirely new and unique way of having coffee with extreme relaxation and peace. UK
would be serving it as an opportunity for the fresh entrepreneurial coffee business.
 Negative: making healthy choices should be the prime fundament for the consumers and
this is causing the consumers to spend more of their time in exercising and eating healthy
food items. There are number of studies which have confirmed that absorption of the
coffee is not unhealthy but it contains a large amount of caffeine, but as a component to
lead a healthy life, there are many consumers which are avoiding the consumption of
caffeinated beverages which is resulting in less demands for coffee products.
Technological factors: these factors depicts the technologies and the advancements which is
taking place in a country. The development of technological aspects under a nature lays a direct
impact over the activities of an enterprise.
 Positive: UK is a country wherein the technological aspects are very well designed and
developed which supports the progress of the actions of the businesses which are
operating under its territory. So in accordance to this it has been determined that the
coffee connection can leverage the technological advancements which are reflected in the
market and deal with the requirements of the consumers.
 Negative: the genetic engineering is one of the most essential trend of technology under
the food and beverage industry. it involves the advanced production of the beverages at
the genetic stage to enhance the taste, results etc. the coffee which is genetically

engineered is marking a great progress in the market outside and it can help in growing
the coffee industry but some of the customers are not preferring the consumption of
genetically engineered coffee items because of couple of side effects caused by it.
SWOT analysis: The SWOT analysis covers the strengths, weakness, opportunities and the
threats. The SWOT analysis of the coffee connection is discussed below:
Strengths: the strong brand image of the coffee connection attracts large number of customers
towards it and eventually the its size, volume and the number of customers have kept growing by
the time. The employ treatment were very well as they treats their employees very gently which
in turn resulted in happier employees serving customers.
Weakness: High prices is one of the weakness as for middle tiers and the working consumers, the
coffee connection servings are quite costly.
Opportunities: the business diversification and products specifications- it can also diversify its
business actions to progress in the entire revenue growth opportunities. Moreover ,to develop
products according to the consumers preferences in a particular target market is also a beneficial
opportunity.
Threats: competition can be a major threat with big outlets- the high competition with MNCs can
pose a threat to its market stage.
The four Ps of the coffee shop:
Product: there should be strong understanding of the product before asking someone to buy it.
That means there should be appropriate knowledge regarding that product in relation to the
competing products.
Price: to offer a product at premium price has its own benefits as the customers are likely to link
with more costly products with good quality.
Place: the business should tend to make their products affordable and convenient to acquire.
Promotion: the promotion of products can be done through different advertisements, different
offers and the public relations.

A discussion on competition and overview of competitive advantage
In this century, there is no such business which is relaxed from the competition and so in this
context, it is analysed that the food and beverage department under the confines of London,
United Kingdom is also under the threat of this competition factor. With the context of the coffee
business, it is identifies that there are couple of leading companies in the market which are
serving the items and the services in this department. The coffee connection is a newly launched
project which will be operating under the confines of London. The businessmen determines the
value of acquiring the information regarding their competitors in a way to come up with the
planning which can supply a strategic statement to it. Hence the competitive analysis for the
coffee connection is shown below:
1. Company : The Attendant
The information about the company – The attendant is a coffee roaster, cafe in London which
is aiming to apply back the permaculture to the UK café scene. It is targeting for the self-
sufficiency and the sustainability of the company. The logo they launched was with the
purpose that it starts with the letter is the first letter of the name which signifies the
beginning, origin which reflects the ethics.
2. Company: Prufrock Coffee
They are serious about their product and only keeps those workers who are genuinely
knowledgeable coffee lovers and who are interested to attempt this inspire of its dedication to
this work they also focuses also likes fun and this contributes remarkably on its picture which
signifies name of the company on a playful logo.
3. Company: Climpson and Sons
It is the original east London café and is focusing in ever involving special coffee seen in
London. The result of this is clear and realistic which is ideal for the company. The climpson
and sons take their work quite seriously with an increasing range of brew techniques they are
looking for best flavours and extractions of few methods to know how the roast reacts in
coffee making products. Their main fundamental criteria is about the flavour and the quality

and focusing towards the sustainability and the ethical rules which enhance the coffees they
roast.
The competitive advantage of the coffee connection is that it will serve the beverage products at
less prices which can be quite easily accessed by the students, families, customers etc. moreover
another advantage of the coffee connection is that it would have a separate food court for those
consumers preferring healthy food (Hutt and Speh, 2012).
A suggestion for the purposed target market:
The coffee connection is one of the developing ventures under the London. Now it is vital for the
businessmen of this project to set a target marketplace and then to reduce the strategies to which
the customers who are pertaining to that target can gain attention towards the servings of the
enterprise (Yang and Su 2014).
STP: This is a record that has been used to set up a proper target marketplace for the new
coming coffee bars. The application of this record in regards to the coffee connection is
represented below:
Segmentation: Market is being segmented in the context of behavioural segmentation. The
behavioural component based on which the segmentation is brought out is the likelihood.
Targeting: Those customers who are having likelihood towards the beverage products would be
directly targeted to this project.
Positioning: the positioning of this beverage serving will be marked by the influence of the social
media marketing, by promoting in the television and newspaper articles etc. On the basis of this
the company will be attracted towards the more number of people and can satisfy them with the
number of servings they provide (Majaro, 2013).
CONCLUSION:
Based on the above discussion, it has been concluded that the determination of the viability of a
given business ideology is vital and important to be evaluated before the actual conversion of it
into an entrepreneurial business project. Moreover it has also been examined that acquiring the
information based on the business environment into which a firm could operate is essential to

take few steps to meet with the negative impacts in the given period of time. Along with this, it
has also been found that the marketing policies are needed first to be developed in the minds of
the entrepreneur in order to make sure that the given project acquires the attention of more
number of consumers and to form a strong community of customers.

REFERENCES:
Books and journals:
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing. SAGE
Publication.
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Grubor, A. and Jakša, O., 2018. Internet marketing as a business necessity. Interdisciplinary
Description of Complex Systems: INDECS, 16(2), pp.265-274.
Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Nelson Education.
Majaro, S., 2013. International Marketing (RLE International Business): A Strategic Approach to
World Markets. Routledge.
Möller, K., 2013. Theory map of business marketing: Relationships and networks perspectives.
Industrial Marketing Management, 42(3), pp.324-335.
Morgan, N.A., 2012. Marketing and business performance. Journal of the academy of marketing
science, 40(1), pp.102-119.ons Limited.
Yang, Z. and Su, C., 2014. Institutional theory in business marketing: A conceptual framework
and future directions. Industrial Marketing Management, 43(5), pp.721-725.