Café Pod Coffee: Success Story, Business Strategy, and Challenges

This report provides an assessment of Café Pod Coffee, an independent coffee company in South London. It discusses the success story of the company, its business idea, government and legal issues, finance, marketing strategy, and business strategy. The report also highlights the challenges faced by the company and its future prospects.

Café pod coffee
(Small business enterprise)

Table of Contents
Introduction......................................................................................................................................3
Assessment of research procedure and experience..........................................................................3
The success story of café pod coffee -.........................................................................................4
Business idea...............................................................................................................................4
Government and Legal issues......................................................................................................5
Finance.........................................................................................................................................5
Marketing strategy.......................................................................................................................6
Business strategy.........................................................................................................................7
Future prospective of Café pod coffee company.........................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
Appendix........................................................................................................................................12
Reflection...................................................................................................................................12
Interview transcript....................................................................................................................13

Introduction
The critical challenges for management of a small organization can be specified as ‘Three Ms,’
i.e. Marketing, Money and Management of people. The reason behind the same is that the
success of a small business is based not only on products and business resources but also on the
efficiency of marketing strategy applied within the markets in which products are supplied. The
fact cannot be denied that a strong relationship exists between the size of the firm and no. of
customers. By considering this aspect, small business can trade only in a limited geographical
area which is dependent on the cycle of local economy along with limited opportunity in order to
compensate for any downturn. On the basis of cited issues, the present report emphasizes on
detail assessment of business of Café pod coffee co. It is an independent coffee company situated
in South London by considering core value of making strong and exciting coffee for coffee
lovers. The study initiates with the success story of Café pod coffee, and further significant
variants for a business such as finance, marketing, business strategy, future business plan and
existing issues faced by the company have been discussed in detailed manner.
Assessment of research procedure and experience
Evaluation of business is required in order to evaluate the necessary changes required for further
improvisation. Further, same do assist in the ascertainment of solutions relating to issues faced
by the organization of any industry. My research process is on the hospitality industry and I
adopted qualitative method for procurement of facts of Café pod coffee co in order to analyze
current situation and future prospects to conclude the study in an adequate manner. Ethnography
and Narrative qualitative approach are applied in the present study in order to understand the
goals, cultures, challenges of specified business. Further, interviews have been conducted from
executives of Café pod coffee in order to reconcile the conflicted stories relating to the company.
Ethnography has its roots in culture variants, thus the application of same assist analyst to
immerse themselves within the specific culture. I applied these methods on Café pod coffee
company in order to research in an appropriate manner. I took the assistance of manager of the
company and my seniors in order to ascertain and analyse the key data relating to the company.

Even interviews and discussion were held with the staff as well as customers of the company in
order to assess the areas of improvement and future requirement of the business. I had a good
experience through communicating with them and enhanced my knowledge relating to the
management of business along with the attainment of personal skills to the next level. I also got
to know that Peter Grainger and Brent Hadfield were quite sure about attainment of success of
the organization as they were enthusiastic towards their business operations and had a mission to
assist people to do more and good. As they believe strong coffee is the best way to initiate the
same.
The success story of café pod coffee
Café pod coffee co. is an independent company which was established in South London in 2011.
The company initiated on the basis of a simple proposal that is providing strong coffee and
encouraging to the coffee lovers by providing them wide variety of options. The primary focus of
the company is on maintaining quality in addition to serious roasting expertise as well as the
flavour of uniqueness. Two friends mutually set up the café pod which is Brent Hadfield and
Peter Grainger. Further, they come up with the concept of robust and exciting coffee as they have
the same thought that homemade coffee lacked excitement, innovation and quality (Bridge, and
O'Neill, 2017). In the preceding 7 years, the café pod company is listed in the record as 7 th
largest roast and positioned coffee brand. It aims to develop into the UK’s No.1 retail coffee
brand in the upcoming 5 years by providing an exclusive , high-quality coffee product which
significantly influences the customers and gets succeeded. The company is youth-oriented with
a young mindset. They are entirely focused and drive restlessly as well as they are ambitious.
The management deal with practice and spirit. Further, their primary mission is to help
individuals and supporting them to provide the best way by which they can proceed further with
their aims along with strong coffee ideas (Hassan et al. 2015).
Business idea
The business idea can be referred to as a concept which is applied in order to attain profits and
centred on product or service which can be provided for money. It is a base of the pyramid when
it comes to business. The idea is related to the developer who requires to ascertain the business
value propositions in order to commence to market and institute competitive advantage. The
great concept of café pod coffee begins with the coffee- capsule concepts. Peter Grainger and

Brent Hadfield are known as a beanstalk of the business world. The little coffee capsules that are
produced to be well matched with Nesoresso machines and developed into a successful brand
(Fallon, 2018).
The idea came up to their mind when they went to travel, and on the last leg when they were in
South Africa, they have noticed some selling capsules over there. It was a smaller market place
in South Africa. According to them, Breat was an accurate target market, and it really works
(Ferreira, 2018). Individuals who have their coffee machines always find a way to get hold of the
capsules , by selling it online they made it to the consumer reach which works to some level and
further gets motivated. Their primary aim is to provide new products to the people and fulfils a
person’s creative requirement.
Government and Legal issues
There is a significant role of government is determining the business rules and legal norms of
the enterprise that works in the states. For developing a small business government play
significant roles (Broekemier, Chau, and Seshadri, 2015). For stating up the small business
entrepreneur, it is essential always to hold government decisions. On the other hand, various
complexities are produced by the government for the businesses as the managerial needs and
costs for its authorized works are creating various issues (Dunne et al. 2016). As per the
researcher, loan programmes are generated by the government for stating up the business but
apart from this lots of paperwork is needed and private banks are helpful in providing the money.
It is assessed by Burns, (2016) when the administration is not as powerful as required in that case
lots of evidence are needed to provide the loan. The further policy has been issued that they can’t
provide loan to the small business as they provide very less tax or no tax (Etzkowitz, and Zhou,
2017). The legal vehicle can be referred to as the legal form of the business, i.e. sole trader,
partnership, limited company, co-operative or public company — café pod coffee. Co has chosen
the legal structure of the limited company. Thus, it will require to comply with provisions of
Companies Act, Environment Protection Act, Financial Services Act, and Consumer Credit Act
etc.

Finance
Finance is the core of the business, and without it, no business can proceed or even initiated.
Loans are provided by the banks and are dealing with the great competition in the industry to
provide loan to small enterprises. For starting up the company, they are focusing on the skilled
and determined financial controller to work with them as well as them aims to build a loved
brand (Hatten, 2015). Reporting to the Finance Manager, the Financial Controller will be
accountable for all facet of finance connecting to Café Pod. However, further, it will provide an
outstanding expansion opportunity with huge potential to have a great impact inside a high
growth corporation.
The company has initially raised £ 1.5 million in growth capital in order to target the European
market. It has been assessed that main source of finance of Café pod coffee is an issue to new
shares in order to raise required funds. Mr Grainger and co-founder Brent Hadfield also stated
that the small size of a tranche of finance is also available from crowdfunding. Further, the
company has also raised £ 2 million from a consortium of more than sixty angel investors. In
terms of financing correct and timely reporting of the financials must be assured. For managing
the cash, activities such as cash forecasting, FX and banking connections as well as preparing the
receipts and payments are implicated. It is important to establish a high level of reliability and
direction towards the strong working connections with investors. Furthermore, the financial plan
must fully contribute to the growth of the business strategy (Karadag, 2015).
Issues related to business
Small Businesses are affected by various issues and the same effects of strategic planning in a
significant manner. Uncertainties that are faced by the coffee business are improving quality, and
due to which prices and trends of the market are also modified. Comparatively, in rich industry,
producers of coffee are poorly paid. Moreover, risks are also connected with the name of the
coffee brand, and those occur due to the changeable weather as well as shortages of labour. Apart
from that, issues that are faced by Café pod coffee is the selection of the right menu for the
customer as the choice changes with time and trends (Karadag, 2015). The small business has
also face the risk of damage to the property, extreme loss from the bad debts, public liability as
well as advertisement risks. Problems that are connected with the businesses are changes to be
done by them according to the kind of economic status and planning. Further, huge investment is

required to start a business and expenses that are comprised with it are an investment for getting
a license and legal allowance from the government which was a tough challenge for the
company. However, in a situation where private business is being started than it takes lots of
time to get a loan from the banks due to a lack of credibility.
Marketing strategy
A small group of marketing method is used by small business firms, and limited expense is done
relating to the same. It is important to understand the requirements of the target customers before
other competitors provide them services and products which use to satisfy the need that keeps
them approaching back are the major elements of the successful marketing plan. Marketing plans
are created for small businesses by evaluating the current business conditions and draw a
marketing objective. After making the goals, it is important to figure out that what investment
should be made in business and due to which budget should be made for both money as well as
time (Uyarra, Shapira, and Harding, 2016). For mitigation of the process marketing gaps, the
company attempts to ascertain the proper solution in order to make steady improvements. On-
premises advertising methods are applied by Café pod coffee in order to specify the manner in
which it distinguishes from other coffee shops. Action plan relating to marketing strategy is
essential to put together, and further tasks should be prioritized which help the business to be
more approachable and successful. Digital and social media are the platforms where promotions
are done by Café pod coffee as it is above to cover a large group of people and a quite low
amount of funds are required for the same. Even coupons are provided on Facebook and Twitter
which are distributed to internet users of the local area so that adequate promotions can be made.
Further results are measured, and adjustment is made in the strategy accordingly which in
addition maximizes the effectiveness of their investments of money and time (Turner, and
Endres, 2017).
Business strategy
For framing the structure of business strategy, lots of small business proprietor mostly focus on
vision in significant manner and then they only proceed into action. For effective business
strategy businesses, it is required to consider its purpose, scope, contribution, timing as well as
resource needs. By executing the strategies in a proper way, it is essential to increase the level of
discipline in surroundings. If the marketing methods are approved well than more customers get

influenced towards the shop. It has been realized by the researchers that different options in
coffee are required by the customers as the customers have different taste and preferences. Peter
Grainger stated that he has analyzed that by just going for the same drinks customers sometimes
get bored and if they get the other different choices according to their taste than they proceed
more and more towards the café. Thus, Café pod coffee attempts for products that are suitable or
fit with the market needs than it is important to go for the smart marketing on every move for the
customer’s welfare (Hillary, 2017). The major objective of business strategy is connecting your
business worth to the correct consumer base. The business strategies followed by Café pod
coffee is a branding strategy which helps to establish a clear identity in the mind of consumers.
As there are various big coffee cafes that are identified by their brand, identity and logo.
Advertisement is the best source of promotions. Online advertisement strategy is applied in
targeting customers as it is an effective and inexpensive source of promotion (Nohria, 2017.).
By posting the pictures of presentable coffee or attractive coffee mugs attract the customers
towards the café. The company also applies another strategy, i.e. Google, in which all the
different platforms are combined together in a single central place that comprises of Google+
profile, your Google reviews ,Google Maps profile, contact to data on Google Analytics and
Google Insights, and any more. It very soon provides credibility and visibility to small
businesses (Samper, 2017). Other sources such as organic social media, content marketing,
Google Adwords as well as coupon deal sites help to grow business productively, and same is
applied by Café pod coffee. The above-specified strategies are applied by the company in order
to make the brand image of the company and to attract the large no. of consumers of coffee.
Pricing policy should also be determined according to the customer’s preference (Scarborough,
2016). Café pod coffee finalizes the prices of the product which not very high that middle-class
people can’t afford; however it should be nominal, so everybody can prefer it. Therefore, pricing
policy should be constructed strategically. For expanding the business, owners should modify its
cafés and shops into a huge modified store and café which help to explore and display various
ideas that attract the customers towards them (Stam, 2015). The same is applied by the
company in order to increase customer satisfaction level as well to fulfil the
requirements of the consumer.

Future prospective of Café pod coffee company
Modifications and innovations are bought into society by small businesses. Mutual success
influences the future of everyone. By conveying various modifications future is forecasted and
further decrease the risks and opportunities are made used.
Café pod coffee has resolute in developing an everyday need for local coffee addicts. For getting
relax and avoid the daily life stress people needs a comfortable and happening place to meet
there friends or they go and work there or read books (Storey, 2016). With the rising demand for
high-class gourmet coffee and immense service, café pod coffee co will take advantage of its
nearness to the University resides over there for constructing a core group of repeat clientele.
Café pod coffee provides best-prepared services to its customers in that sector, and various
compliment items like pastries and biscuits, as well as free novels and books, are provided so
they can read and enjoy their visit. The company will operate a big coffee bar within walking
distance from the Universities and colleges. The owners have secured this location for extending
the business in future at a larger scale (Ward, 2016).
Conclusion
It can be accessed from the above analysis that in successful small businesses various, targets,
objectives as well as continuously challenging characteristic are included. By constantly
evaluating and originating innovative ideas as per the preferences of the consumers as well as
changing preferences are the most important factors which help to develop the company. All
such strategies are also followed by large businesses. It can be concluded that conveying the
business idea is quite easy; on the other hand, lots of efforts are required to be made to survive
and get successful in the business world.

References
Bridge, S. and O'Neill, K., 2017. Understanding Enterprise: Entrepreneurs and Small Business.
Macmillan International Higher Education, UK.
Broekemier, G., Chau, N.N. and Seshadri, S., 2015. Social media practices among small
business-to-business enterprises. Small Business Institute Journal, 11(1). pp.87-88.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited, UK.
Dunne, T.C., Aaron, J.R., McDowell, W.C., Urban, D.J. and Geho, P.R., 2016. The impact of
leadership on small business innovativeness. Journal of Business Research, 69(11), pp.4876-
4881.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University-industry–government innovation
and entrepreneurship. Routledge, UK.
Fallon, K.J., 2018. Coffee for One: How the New Way to Make Your Morning Brew Became a
Tempest in a Coffee Pod. Simon and Schuster, UK.
Ferreira, J., 2018. Fostering sustainable behaviour in retail: Looking beyond the coffee
cup. Social Business, 8(1), pp.21-28.
Hassan, S., Nadzim, S.Z.A. and Shiratuddin, N., 2015. Strategic use of social media for small
business based on the AIDA model. Procedia-Social and Behavioral Sciences, 172, pp.262-269.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education, UK.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge, UK.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. EMAJ: Emerging Markets Journal, 5(1), pp.26-40.

Nohria, N., 2017. Fast forward: The best ideas on managing business change. Business
Review, 9(1). p.10.
Samper, L., Giovannucci, D. and Marques Vieira, L., 2017. The powerful role of intangibles in
the coffee value chain. Economic research paper, 1(39), pp.36-40.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson, UK.
Stam, E., 2015. Entrepreneurial ecosystems and regional policy: a sympathetic
critique. European Planning Studies, 23(9), pp.1759-1769.
Storey, D.J., 2016. Understanding the small business sector. Routledge, UK.
Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), p.3.
Uyarra, E., Shapira, P. and Harding, A., 2016. Low carbon innovation and enterprise growth in
the UK: Challenges of a place-blind policy mix. Technological Forecasting and Social
Change, 103, pp.264-272.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer, UK.

Appendix
Reflection
The course ‘Managing a small business’ allowed me to be acknowledged with all the phases
which are faced by a small business organization. I learned a lot during this course i.e. regarding
the initial stages of a business which comprises knowledge about the legal structure of an
organization. I learned about different business structure and advantages and disadvantages
relating to same. Further, the legal issues which are to be resolved while incorporating a business
were also assessed during the study. The most interesting part of the course was the practical
sessions in which I met business man (owners and senior management of organization) in order
to ascertain the way through which they have been and how they reached where they are today.
I learned a lot from the experience which they shared with me. Information relating to business
strategy and marketing strategy assisted me in having adequate relating to different strategies
which can be applied as a manager or owner of an organization. Previously, I was not aware
regarding these strategies and policies which are developed by the management in order to
operate the business with smoothness. I got to know about the way in which each decision of
business is taken and the manner in which effects different parts of an organization. The
learning’s of this module will surely act as a guide for being a successful entrepreneur in future.

Interview transcript
1. How did you get the concept and idea of the business?
Answer: I was always influenced and encourage by successful business tycoons and as I grew
up my focus was to be a successful business man. I have an idea in my mind to serve the people
and make my own brand image. While researching for some exclusive approaches to start a
business I travelled a lot. Finally in Africa I got to knew about the capsules further than me and
my friend has decided to bring this approach in London. So we finally come up with the coffee
cafes and there was a great scope in this café concept.
2. When did you start the business?
Answer: Me and my friend both have initiated the business in 2011 in London we have started
the company named as café pod coffee co. primarily there is only one branch further with was
expanded by various sectors.
3. How did you manage to find the money to set-up the business?
Answer: For stating a business I don’t have appropriate resources because of which I applied to
get a loan from the banks and my application for loan is got rejected by the government banks as
they were not sure about the success of the business as it is a new concept. Further I manger to
apply it in front of private financial contributors and those helped me out to get the financial
recourses. A significant amount of capital was raised through issuing capital, crowd funding and
assistance of angel investors.
4. How many employees do you have?
Answer: approx 85 employees work for my private business companies and estimated revenue is
approx $ 6M.
5. How do you advertise your business?
Answer: In initial phase as we were not in the position to afford the marketing or promotional
charges, we have started to promote our products by the online media such as facebook, Google.

Such online channels provide helps us in getting the knowledge about the preferences of the
people as of which we begins with the alterations and modifications to make them satisfy.
6. How did you manage to increase your sales?
Answer: In first few years making sales to the great extent is not possible. I provide the product
and services to the customers according to their preferences. Further I get the knowledge about
the taste of the customers so drinks or snacks that were served to the consumers were prepared
accordingly. Various changes like interior, lighting etc are also modified and such moves in the
company attracted the consumers towards the cafes.
7. What was the other way?
Answer: The other way in which the sales of the company increased is opening a new branches,
and location that was selected was also chosen where young or youth use to go for examples
nearby schools or universities. Students come with their friends and enjoy with their friends,
apart from this Wi-Fi services and books are also arranged for them.
7. What is unique about your business?
Answer: The major focus of my company is on young generation or people with young mind.
We use to serve them according to their taste and also the rates that are decided in the menu are
as per their budget so that they can easily afford a coffee and snacks. We provide the strong and
exciting coffee to our customers so that they could get peace and focus on their own motives and
objectives.
8. What is the future plan about your business?
Answer: Aas of now I have not planned about company. But for sure my goal is to expand my
company worldwide and serve people