Cosmos Coffee Business Plan Analysis

This business plan has been prepared to evaluate the entire imperative factor related to starting up new business in Malaysia. The name of the new business would be Cosmos Coffee business. The main competitive advantage of Cosmos Coffee Business would be leading the market with the cost leadership and product differentiation strategy in market. Cosmos Coffee Business has planned to earn profit of at least MYR 900 K per years. Cosmos has been willing to offer an affordable coffee to clients with a view to strengthen the strong brand image in market.

RUNNING HEAD: Cosmos Coffee Business Plan
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Business plan
Cosmos business
Business plan analysis
Name of the Author
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Cosmos Coffee business plan 1
Executive summery
This business plan has been prepared to evaluate the entire imperative factor related to
starting up new business in Malaysia. The name of the new business would be Cosmos Coffee
business. This business will offer all the coffees and beverage products to clients in Malaysia.
The main competitive advantage of Cosmos Coffee Business would be leading the market with
the cost leadership and product differentiation strategy in market. Cosmos Coffee Business has
planned to earn profit of at least MYR 900 K per years. Cosmos has been willing to offer an
affordable coffee to clients with a view to strengthen the strong brand image in market. In the
current scenario, people in Malaysia are more inclined towards international drinks and foods.
This business will require investment of MYR 1 million investments which will be half funded
by the private funding and half of the capital will be arranged by using debt funding and bank
investment. It is analyzed that starting up new coffee business in Malaysia will be most
profitable amount.

Cosmos Coffee business plan 2
Table of Contents
Executive summery.....................................................................................................................................2
Business plan...............................................................................................................................................3
Target and focus market identification....................................................................................................3
Arrangement of resources.......................................................................................................................3
Operational plan development................................................................................................................3
Advertisement strategy...........................................................................................................................3
Competitive advantage................................................................................................................................4
Physical resources requirement...................................................................................................................4
Financial resources needed (Expenses budget plan)....................................................................................5
Market Research..........................................................................................................................................6
Marketing plan............................................................................................................................................6
Targeting strategy........................................................................................................................................6
Target market profile...................................................................................................................................6
Positioning strategy.....................................................................................................................................7
Marketing mix.............................................................................................................................................7
Budgeted sales forecast..............................................................................................................................8
Action plan for setting up new business......................................................................................................8
Gantt chart..................................................................................................................................................9
Self-critical analysis...................................................................................................................................10
References.................................................................................................................................................11

Cosmos Coffee business plan 3
Business plan
Cosmos Coffee Business will penetrate the market with its newly offered international
Latte coffee in Malaysia. However, if Cosmos wants to lead the market then it will have to focus
on the cost leadership and product differentiation strategy in market. These leading strategies
will assist company to start up its new coffee business in market (Johnston, and Bate, 2013).
Target and focus market identification
The main target and focus market for the Cosmos Coffee business would be couple,
females and males between the age group of 18 years to 40 years. Cosmos firstly needs to
analysis the current offering of the rivals in beverage market industry.
The Cosmos Coffee business will be started up in Bukit Bintang Street, Bukit Bintang,
55100 Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia to start up new coffee
business. However, due to the extreme level of crowd at this place, company will have high
numbers of clients (Johnston, and Bate, 2013).
Arrangement of resources
Cosmos Coffee business need to hire 5 sales employees for its business promotional plan.
However, 20 employees will be indulged in its operational activities in the restaurant.
Operational plan development
Company will add new product line in market by offering Latte coffee and other
international drinks for clients in Malaysia.
Advertisement strategy
The marketing strategy of Cosmos Company would be using the online cyber computing
system and online system process. It will require company to hire more sales persons in its team
for its marketing advertisement (Johnston, and Bate, 2013).

Cosmos Coffee business plan 4
Competitive advantage
People in Malaysia are inclined towards high quality coffee and other international drinks
and less bothered about the price charged on same. All the new international drinks and other
beverage products offered by Cosmos are being prepared by using the rich contents and intents
which will add good taste and make the product unique in market.
Physical resources requirement
Cosmos business is coming up in Malaysian market with its new Coffee Latte and
international drink products. It will require high following resources to start up new Coffee
business (Mohd,, Idris, and Momani, 2013).
Particular Measures
Tables 17 Units
Chairs 34 Units
Computers 7 units
Café staff 25 employees, Full time /12 employees part
time
Advanced Mojito Filtering machines 2 Units
(Fernandes, Ferreira and Moura, 2016).
Human resources requirement
This will be the employee required for setting new business. Cosmos Business needs to hire at
least 25 employees and out of which 12 employees will be hired for the part time employee.

Cosmos Coffee business plan 5
Job Title- It will require 3 employees at front desk and rest of the employees will be indulged in
operational work (Rashid,.& Ghose,., 2015).
Financial resources needed (Expenses budget plan)
Cosmos Company might need at least MYR 1 million investments to start up new coffee
business in Malaysia (Schmidt, Spann, and Zeithammer, 2014).
Details Budgeted (Cost MYR)
Office infrastrutrue .2 million
Hiring staff employee=
Staff employees= 1K* 13 employees=13K
HRM department= 7K
Mangers salary= 5k*2 =10K
.2 million
Operational expenses .1
Marketing communication plan .1
Legal expenses .1
Tender filling cost .1
Licensing cost for the mojito drinks .1
Space hired employees .1

Cosmos Coffee business plan 6
Project Cost escalation .1
Total cost 1 million
The expenses budget plan shows the amount of expenses required to be spent while
setting up new business in Malaysia. It is analyzed that whether newly started up new business
will add value or not. However, 1 million investments would be required to start up new coffee
business in Malaysia.
Market Research
The market research will be done by using the online data collection process which will
include monkey survey and questionnaire. It will assist Cosmos Company to collect required
data to make its international drinks and coffee more clients oriented (Wei, Samiee, and Lee, 2014).
Marketing plan
In order to make the business more effective in market, Company needs to use the stratified
sample survey and online modes to collect the data to make its business more customized.
Targeting strategy
Cosmos Company will attract mainly youth in comparison to other age group clients. It will
use social media, loyalty card and other methods to attract clients for its international drinks.
Company will use product differentiation strategy to win over the market.
Target market profile
The main target market of company would be clients between the age group of 25 years to 45
years. In addition to this, couples will be offered extra benefit offers to clients.

Cosmos Coffee business plan 7
Positioning strategy
This positioning strategy will be used to generate strong goodwill and brand image in
market. It has been analyzed that company is planning to create strong product differentiation
strategy by using most enriched products such as fresh milk, high quality espresso with water, to
give the texture of latte coffee.
Marketing mix
This marketing mix is used to analysis the business opportunity, threats in market.
Product- Cosmos Coffee will offer international drinks and latte customized coffee products to
attract clients in Malaysia (Martins,. Rindova, & Greenbaum, 2015).
Price- Cosmos coffee will follow Cost leadership strategy and cost plus price method to fix price.
Company will offer its all of its coffee product at price which would be 20% + costing of it.
Place- Cosmos Coffee has set up its infrastructure in Bukit Bintang Street, Bukit Bintang, 55100
Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia to start up new coffee business to
attract clients.
Promotion- Cosmos Company will use loyalty car, social media and online dashboard
mechanism to promote its business.
People- The main clients would be youth and couples who visits Bukit BInatang Street.
Process- Company will follow international process to make Latte and Mojito drinks which offer
using fresh mint leaves, soda water and crushed ice. It will increase the quality of its drinks.
Physical environment- New tables and other resources will be undertaken to make effectively
attract the clients in market (Joyce, & Paquin, (2016).

Cosmos Coffee business plan 8
Budgeted sales forecast
The budgeted sales of the Cosmos Company would be as follow (Tukker, & Tischner, (2017).
Years Budgeted amount of sales (MYR)
2015 .2
2016 .25
2017 .35
2018 .45
Action plan for setting up new business
Activity Description Days Predecessors
1 Arrangement of
finance
2
2 Value chain activities
and system
3
3 Hiring expert
employees
10 1
4 Investment appraisal 12 2

Cosmos Coffee business plan 9
and values
5 Sales activities and
plans
20 4
6 Sales implementation
plan
15 3
7 Sales program 10 5
Gantt chart
Break even analysis – It is the point at which Cosmos Company will have no profit no loss.
Company needs to manage its business to run at breakeven point for 2 years (Foss, & Saebi,
(2017).

Cosmos Coffee business plan 10
Self-critical analysis
This analysis has shown that company will have to run its business on break-even point at the
time of its business sales. Company will have to measure whether the product differentiation
strategy followed by company will add value to its business not. However, the given sales plan
will add value to its business or not. It is further analyzed that Cosmos needs to manage at least
MYR .2 million capital more while starting up new coffee business. It may requires company to
keep the additional amount of capital for manage the business as per the internal and external
business factors. The main problem which could be faced by Cosmos Company in market would
be related to increased production cost, high employee turnover and compliance program.
Company needs to set up legal compliance department in its business to meet the applicable laws
and regulations in its business.

Cosmos Coffee business plan 11
References
Fernandes, C., Ferreira, M. & Moura, F., (2016). PPPs—True Financial Costs and Hidden
Returns. Transport Reviews, 36(2), pp.207-227.
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far have
we come, and where should we go?. Journal of Management, 43(1), 200-227.
Johnston, R.E. & Bate, J.D., (2013). The power of strategy innovation: a new way of linking
creativity and strategic planning to discover great business opportunities. AMACOM Div
American Mgmt Assn.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more
sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Martins, L. L., Rindova, V. P., & Greenbaum, B. E. (2015). Unlocking the hidden value of concepts: a
cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), 99-
117.
Mohd, W., Idris, S. & Momani, R.A., (2013). Impact of environmental dynamism on marketing
strategy comprehensiveness and organizational performance. International Journal of Business
and Management, 8(9), p.40.
Rashid, S. & Ghose, K., (2015). Organizational culture and the creation of brand identity: retail food
branding in new markets. Marketing Intelligence & Planning, 33(1), pp.2-19.
Schmidt, K.M., Spann, M. & Zeithammer, R., (2014) Pay what you want as a marketing strategy in
monopolistic and competitive markets. Management Science, 61(6), pp.1217-1236.
Tukker, A., & Tischner, U. (Eds.). (2017). New business for old Europe: product-service development,
competitiveness and sustainability. Routledge..
Wei, Y.S., Samiee, S. & Lee, R.P., (2014). The influence of organic organizational cultures, market
responsiveness, and product strategy on firm performance in an emerging market. Journal of the
Academy of Marketing Science, 42(1), pp.49-70.