Business Plan for The Coffee Club in Oman

Running Head: BUSINESS PLAN
Business Plan

BUSINESS PLAN 1
Contents
Introduction......................................................................................................................................2
Vision and Mission......................................................................................................................2
Aims and Objectives....................................................................................................................2
Value Proposition............................................................................................................................2
Identification of Target Market Segment........................................................................................3
Market and Competitor Analysis.....................................................................................................3
Market Analysis...........................................................................................................................3
Competitor Analysis....................................................................................................................4
Buying Patterns............................................................................................................................4
Marketing, Entry and Growth Strategies.........................................................................................4
Marketing Strategy-.....................................................................................................................4
Entry Strategy-.............................................................................................................................5
Growth Strategies.........................................................................................................................5
Financial Projections.......................................................................................................................6
Identification of Resources and Financing Required.......................................................................6
Identification of Material Risks and their Mitigation......................................................................7
Conclusion.......................................................................................................................................9
Appendix..........................................................................................................................................9
References......................................................................................................................................16

BUSINESS PLAN 2
Introduction
The Coffee Club is a start- up coffee business in Oman which aims to become the daily necessity
for the coffee addicts for relieving their stress and providing them a comfortable place for
socializing with their friends. Great customer service and high quality gourmet coffee is in high
demand among the customers. This opportunity will be utilized by The Coffee Club by way of
offering the best prepared coffee in the area. This business plan provides the value proposition of
The Coffee Culture along with making identification of its target market, marketing and growth
strategies, market and competitor analysis, resources, risks along with the financial projections.
Vision and Mission
The vision of the business is to create a unique place for the customers to socialize with their
friends. The business will further make efforts for relieving the daily stress of their customers by
providing piece of mind through convenient location, great ambience, products of quality and
friendly customer service. The profits earned by The Coffee Club will be invested for increasing
the satisfaction level of the employees along with providing a stable return to the shareholders.
Aims and Objectives
The aims and objectives of The Coffee Club for the first year of operations include:
 Earning profits in the first year of operations.
 Being selected as the “Best New Coffee outlet in the area” by local restaurant guide.
 Maintaining a 60% gross margin.
Value Proposition
The Coffee Club will position itself as a unique coffee outlet where the customers can enjoy a
perfect coffee with in a peaceful environment. The Coffee Club will structure the outlet with the
help of comfortable chairs and sofas with relaxing music and dimmed light such that the
customers can get relived from their daily stress. This feature will allow the customers to
differentiate it from the other competitors in the market (Lee, Moon and Song, 2018).

BUSINESS PLAN 3
Identification of Target Market Segment
The target market of The Coffee Club will include students, teenagers and working population of
the nearby areas. These consumer groups have been selected as the target market as they are
most likely to buy gourmet coffee products. The basic target of The Coffee Club comprise of the
people who want to sit in a relaxing environment for having a great cup of coffee. Teenagers
consider these types of cafes as the most convenient place for studying and for socializing with
friends. Since gourmet coffee consumption is universal among the people belonging to different
income categories and different age groups, all of these will be included in the target market of
the business (Lee, Moon and Song, 2018).
Market and Competitor Analysis
Market Analysis
The coffee consumption in Oman has portrayed a steady growth. People demand great tasting
coffee at affordable prices from the cafes along with a comfortable environment.
Porter’s Five Forces-
Threat of new entrants- There is moderate threat of new entrants for The Coffee Club. The
barriers and the initial investment required for the purpose of starting a coffee business is not
high. There is moderately high level of saturation in the industry. The new brands are mostly not
able to compete with already established brands like Starbucks and their probability of becoming
successful is also low to moderate.
Threat of Substitutes- There are high number of substitutes available for the coffee product of
The Coffee Club. The substitutes available include alcoholic and non- alcoholic beverages along
with tea which are easily offered in the market. Restaurants and pubs in the area offer quality
products along with good ambience to the customers. The threat of substitutes is moderated by
brand loyalty and premium quality products to some extent (Mathe, Scott-Halsell, Kim and
Krawczyk, 2017).
Bargaining power of buyers- The bargaining power of the buyers in the context of The Coffee
Club is moderate to low. The influence of an individual buyer is not much due to small sizes of
the purchases made by them. Prices cannot be increased of the coffee sold by the cafes as it can
lead to switching of the preferences by the customers.