Business Plan for a London Coffee Shop: Objectives, Marketing Strategy, and Launch Event

In this document we will discuss about Business Plan and below are the summary points of this document:- The business plan is for a new coffee shop called London Coffee Shop Limited in London, offering coffee, tea, and fast food, as well as coffee vending machines. The plan includes justifications for the business idea, sector, location, and mode of operations, as well as a table of key competitors. The plan also outlines four important objectives, form of ownership, a launch event budget, and marketing objectives and strategies.

Running head: BUSINESS PLAN
BUSINESS PLAN
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Task 1.............................................................................................................................1
Part A:............................................................................................................................1
Business idea:...................................................................................................................1
Justification of the business, sector, location and operational method:............................1
Mode of operations:.......................................................................................................1
Reasons why the business is a good idea:.......................................................................3
Meeting customers in a new and innovative way not already met:...................................3
Table identifying the key competitors and explanation for consideration:.........................4
Part B:................................................................................................................................4
Four most important objectives of the business:...............................................................4
Form of ownership:............................................................................................................5
Task 2................................................................................................................................5
Task 3................................................................................................................................8
Part A. Defining launch event:...........................................................................................8
Part B. Budget:..................................................................................................................8
Task 4................................................................................................................................8
Marketing objectives:.........................................................................................................8
Earning high revenue:....................................................................................................8
High brand value:...........................................................................................................9
Target markets:..................................................................................................................9
Marketing strategy:............................................................................................................9
Marketing mix:...................................................................................................................9
References:......................................................................................................................11

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Task 1.
Part A:
Business idea:
The business idea would revolve around a new coffee shop business called
London Coffee Shop Limited based in London. London Coffee Shop Limited would
serve coffee, tea and fast food. The company would also offer coffee vending machines
both for commercial and domestic use. The business customers can either purchase or
rent the machines for an agreed time period as well as price. The company would be
listed on London Stock Exchange.
Justification of the business, sector, location and operational method:
It can be justified that establishing a coffee shop in the United Kingdom because
the market is experiencing a rise in coffee consumption. This rise in coffee consumption
in the country is evident from a recent article published in the Independent. The article
mentions that the country has experienced an increase in coffee consumption up to 95
million in 2018 compared to 70 million 2008, ten years back (Young 2018). This means
that establishment of a coffee shop in London, United Kingdom would allow the
entrepreneurial venture cater to a large consumer base of coffee drinkers and generate
higher revenue.
Mode of operations:
London Coffee Shop Limited would operate both on the high streets. This would
enable the coffee company sell coffee, tea and fast food items to both middle and upper
class customers. The company would also sell coffee vending machines to business
companies and households. The company would also allow the small companies with
limited financial resources to rent coffee vending machines. London Coffee Shop
Limited would also enable customers to order its products on the ecommerce platform
which would attached to its official website. These modes of operations can be
justificated on the grounds that serving both individual and business customers would
enable the company to earn huge revenue. This dual mode of operations can be also
be justificated on the grounds that the coffee market of London is already extremely

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competitive due to presence of international coffee chains like Starbucks with immense
global consumer base (Fischer 2017). Moreover, the local coffee shops in London in
order to attract a large consumer base have entered into a pricing competition which
has added to the competitiveness of the coffee market in London (Chintagunta et al.,
2018). Thus, the new ventures in the coffee market in London are under continuous
threat of losing their customers to existing competitors. This losing of customers to
competitors would result in revenue risks and ultimately sustainability risks. Thus,
catering to both individual and business customers would enable London Coffee Shop
Limited to generate revenue from both the sources. This would enable the company to
diversify the revenue risks which the company would face in London owing to stiff
competition from existing competitors. Thus, the high street mode of operations of the
company is justified on the grounds of revenue generation, risk management and
business growth (Barrios et al. 2016).

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Figure 1. Graph showing trends of coffee chains in the UK
(Source: Hooker 2017)
Reasons why the business is a good idea:
London Coffee Shop Limited is a good business idea for several reasons. First,
the market of United Kingdom would offer a huge base of coffee consumers which
provide the company an immense revenue base. Secondly, as shown in the graph
above there are rising number of independent coffee chains which means that chains
like London Coffee Shop Limited are seeing more growth of business which is evident
from their rise in number. Thirdly, the cities like London and Birmingham are important
commercial centers. These commercial centers house of business companies which
acquire coffee vending machines. Smaller firms and coffee shops rent coffee vending
machines. Thus, this factor would also enable London Coffee Shop Limited Limited
acquire large numbers of business customers which would either purchase or rent
coffee vending machines. Thus, it is evident from the discussion that establishing
business in London and other leading commercial centers would enable London Coffee
Shop Limited get access to both individual and commercial bases. This would enable
the company to generate high revenue and attain a strong financial base.
Meeting customers in a new and innovative way not already met:
London Coffee Shop Limited would meet the requirements of its customers in
new and innovative ways. The company would serve both individual consumers and
business consumers. The individual consumers would be able to enjoy coffee of
different variants like latte and espresso as well as tea of different variants. The
consumers would also have the option of enjoying different types of fast food. They
would also be able to purchase high quality coffee and tea at the counter and on the
ecommerce portal linked to the official website of the company. The consumers in
addition be able to purchase coffee vending machines at the stores and online. The
business companies can acquire or rent coffee vending machines. The multinational
companies like Starbucks provide vending machines at very high rates which small and

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medium scale businesses cannot afford. The local coffee shops offer coffee at low cost
but do not market products on ecommerce platforms and do not sell vending machines.
London Coffee Shop Limited would meet these requirements of both individual and
business consumers which have remained unmet.
Table identifying the key competitors and explanation for consideration:
The following table would visit the main competitors of London Coffee Shop
Limited:
Competitors and
categories
Explanation for competition
International competitors
like Starbucks and Costa
Coffee
International competitors like Starbucks are
multinational listed companies having immense capital
base. Costa is itself a listed company and owned by
the global beverage giant, Coca Cola. These
international companies owing to their immense
financial base, strong consumer base, formidable
product lines and R&D prowess can poach consumers
from local coffee sellers.
Coffee chains The coffee chains owing to their relatively cheaper
coffee and café style layout can attract immense
number of consumers
Small street side stalls Low cost coffee
Part B:
Four most important objectives of the business:
The following are the four most important objectives of London Coffee Shop
Limited:
1. To serve consumers with high quality coffee, tea and fast food at affordable prices in
a safe and healthy environment. The consumers would be able to relax over coffee, tea
and fast food items. The consumers would be able to enjoy high quality beverage and

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food products in a café style environment. The café style environment would be
hygienic and well furnished with appropriate illumination which would elevate the mood
of the consumers.
2. To offer high quality and advanced vending machines to both individual and business
consumers. The coffee vending machines would be available in different variants
available at different rates. The smaller vending machines with single dispensers would
cater to the needs of the households. The larger machines with multiple dispensers
would cater to the needs of the business firms. The coffee vending machines would
consume less electricity and thus help in energy conservation. The machines would
also have systems which would enable in collection of wastes which could be sent to
recycling plants to be transformed into fertilizers. Thus, the coffee vending machines
would be environment friendly and cost effective.
3. To generate high profits. The profits would recycled into the business processes of
London Coffee Shop Limited. The company would also aim to give high returns to its
investors on their investments.
4. To generate employment opportunities among local population, thus bringing about
economic development in the surrounding areas. Thus, London Coffee Shop Limited
would bring about economic development in the communities of London.
Form of ownership:
The form of ownership for London Coffee Shop Limited would be a public limited
company which is evident from the name. This ownership is the most suitable for the
company because this would enable it to raise capital by issuing shares in the stock
market (Hirtle et al. 2016).. Secondly, this would enable the company gain financial
strength which would in turn boost its British operations (Muritala 2018).
Task 2.
Political:
1. The United Kingdom is politically
stable which enables the government
form laws and policies which lay the
Technological
1. Advanced technology: The country of
the United Kingdom is technologically
advanced. This would allow the

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bases for industries to function.
2. Bilateral ties: The Government of the
United Kingdom has strong bilateral ties
with several countries like the US, Brazil,
China and India. This strong foreign
relationship would enable the company
to acquire resources from diverse
countries at economy of scale.
3. Terrorism: The country of the United
Kingdom faces huge damage of property.
The blasts damage buildings including
commercial buildings which lead to
losses to companies housed in the
buildings.
companies like London Coffee Shop
Limited to acquire and market highly
advanced coffee vending machines.
2. Infrastructure: The United Kingdom
owing to its high level of technological
advancement is endowed with strong
infrastructure. The country is a strong
network of road, air transport and water
transport which enable transport of
goods. This factor would enable the
company to acquire high quality coffee
and tea from foreign markets at
economic rates.
3. Advanced warehousing: The country
of the UK has networks with advanced
warehouses with modern storage
facilities like temperature regulators.
These warehouses would enable the
company to warehouse perishable
products like coffee.
Economic:
1. Gross domestic product: The GDP of
the UK is very high which means that
country is experiencing high levels of
productivity which in turn shows increase
in demand for products in the country.
The company should enter the market of
the Uk to take advantage of this
increasing demand.
2. High value of GDP-The high value
which GBP enjoys high value in the
Legal
1. The Government makes laws
regarding restaurant businesses which
London Coffee Shop has to adhere to.
2. The coffee company must acquire
intellectual property rights for its
products. This would prevent the
competitors from infringing the IPRs of
the company.
3. Financial laws: The financial laws
which all the business organisations

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international currency market. This high
value of GBP would enable the British
based companies like London Coffee
Shop Limited to purchase raw materials
from foreign suppliers at lower costs.
3. Brexit- Brexit would have mixed
economic effect on the companies in
Britain. This is because after exit from
the EU, Britain would have to pay higher
charges to get access to resources of
European countries.
have to comply with while functioning in
the UK are laid down by the Government
and the Bank of England, the apex bank.
Social:
1. Demography- The United Kingdom
has a very high population. This means
that companies like London Coffee Shop
Limited would be able to get access to an
immense consumer base to market their
products.
2. Lifestyle- The people in the cities like
London lead lavish life style and enjoy
socialising in coffee shops. This means
that the company would be able to
receive a large base of customer footfall
at the outlets to generate high revenue.
This would also mean that the company
would be able to receive higher number
online orders, thus generating higher
revenue.
Environmental:
1. The company should adhere by the
environmental conditions of the UK.
2. The companies should offer more
environment friendly products like
organic food products packaged in
recyclable plastic. This would curb
environmental damage due to disposal of
waste products.
3. The companies should recycle their
wastes like water to the possible extent
to minimise environmental pollution.

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Task 3.
Part A. Defining launch event:
London Coffee Shop Limited should launch its products in presence of
leading British actress, Kate Winslet. This venue and the time of launch would be
announced in the due time. This will help to establish the brand as a premium brand
which would attract it to attract more consumers and generate higher revenue. The
guests to be invited at the launch event would be potential customers, representatives
from the companies located in London, suppliers and friends.
Part B. Budget:
The budget includes all the relevant events as shown below
Budget of London Coffee Shop Limited
Particulars GBP
Sources of revenue 5560000
Sales 3360000
Interest from investments 200000
Loan from bank 2000000 Hsbc.co.uk. 2019
Uses of funds 4950000
Legal and establishment costs 1000000
Acquisition of property 1000000
Salary 100000
Logistics 500000
Stationary 10000
Raw materials 500000
Electricity 20000
Interest on loan 500000 Hsbc.co.uk. 2019
Marketing costs 1000000
Internet and telephone 10000 Vodafone.co.uk. 2019
Hardware and software 10000
Taxation 300000
Budget surplus 610000

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Task 4.
Marketing objectives:
The following are the marketing objectives of London Coffee Shop Limited:
Earning high revenue:
London Coffee Shop Limited should aim to generate high revenue by catering to
both individual and business customers. This revenue would enable the company to
give high ROI to its investors. The revenue would also enable the company to make
more financial resources in strategic areas like marketing and innovation.
High brand value:
The second marketing objective of London Coffee Shop Limited is to obtain high
brand value. The high quality products would enable the company to establish itself as
one of most sought after high street cafes enjoying a high brand value.
Target markets:
The target market of London Coffee Shop Limited would be the main commercial
centers of the United Kingdom like London and Birmingham. The main economic
segment which the company would target would be the upper and middle class
consumers. The psychographic segmentation of the market of the company would
consist of consumers who enjoy having coffee and fast food in cafes.
Marketing strategy:
The marketing strategy of London Coffee Shop Limited would be London. The
company would communicate with customers on its official website, advertisements,
magazines and newspapers. This is because this combination of different media would
enable the company attract large consumer base and generate high income. The forms
of promotion to be used would be social media promotion and advertisement to be used
would be television advertisements. The marketing mix would need modification from
time to time to suit the business requirements of the company. The company should
form a strong product, pricing, place and promotional strategy which would enable to
get access to a large market. The products of the company should meet the
expectations of the customers at appropriate priced. Similarly, the company should offer

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discounts to customers in specific times like the Christmas. The company should
abstain from inappropriate presentation of the products.
Marketing mix:
Element Description Justification
Price Economic pricing for
individual customers.
Premium pricing for large
multinational business
customers
This would enable the
company to earn high
revenue.
Product Coffee, tea and fast(for
individual consumers)
Coffee vending
machines(individuals and
business customers)
Earning high profit
Place
Brick and mortar
outlets(cafes)
Online
Generation of high
revenue
Promotion Celebrity promotion,
social media promotion,
promotion in magazines
Establishment of London
Coffee Shop Limited as a
status brand.

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References:
Barrios et al.(2016). Marketing as a means to transformative social conflict resolution:
lessons from transitioning war economies and the Colombian coffee marketing
system. Journal of Public Policy & Marketing, 35(2), pp.185-197.
Chintagunta et al., (2018). Licensing and price competition in tied-goods markets: An
application to the single-serve coffee system industry. Marketing Science, 37(6),
pp.883-911.
Fischer, E.F., (2017). Quality and inequality: Taste, value, and power in the third wave
coffee market (No. 17/4). MPIfG Discussion Paper.
Hirtle et al. (2016). Assessing financial stability: the capital and loss assessment under
stress scenarios (CLASS) model. Journal of Banking & Finance, 69, pp.S35-S55.
Hooker, L. (2017). BBC.com. [online] BBC.com. Available at:
https://www.bbc.com/news/business-41251451 [Accessed 13 Mar. 2019].
Hsbc.co.uk. 2019. Hsbc.co.uk. [online] Available at: https://www.hsbc.co.uk/loans/
[Accessed 15 Mar. 2019].
Muritala, T.A.,( 2018). An empirical analysis of capital structure on firms’ performance in
Nigeria. IJAME.
Vodafone.co.uk. 2019. Vodafone.co.uk. [online] Available at:
https://www.vodafone.co.uk/ [Accessed 15 Mar. 2019].
Young, S. (2018). Independent.co.uk. [online] Independent.co.uk. Available at:
https://www.independent.co.uk/life-style/uk-coffee-week-2018-british-people-drinking-
millions-cups-day-consumption-rise-a8307206.html [Accessed 13 Mar. 2019].