Entrepreneurship and Business Development for Gregarious Cafe
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This article discusses the entrepreneurship and business development strategies for Gregarious Cafe, an organic cafeteria in London, UK. It covers market entry strategies, Pestle analysis, STP analysis, SWOT analysis, value chain, competitive analysis, financial plan, and business model canvas.
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TABLE OF CONTENTS INTRODUCTION..........................................................................................................................3 MAIN BODY...................................................................................................................................3 Introducingbusiness idea and market entry strategies..............................................................3 Presenting the rationale for launching the business....................................................................4 Determining the micro and macro factors present in the business environment........................4 Business canvas model................................................................................................................7 Marketing strategy and Market growth strategy.........................................................................8 Value chain..................................................................................................................................9 Competitive analysis of Gregarious Cafe.................................................................................11 Financial plan............................................................................................................................12 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Business plan refer to a written document which provide all the information related to the business objective, activities which used to obtain in the future aims & goals in effective manner. This process enables a marketer to reach at expected results and generate web traffic excellently. The current presentation will be based on Gregarious cafe, which will fall under the category of leading best service in the London, United Kingdom. This can be an organic cafeteria which has all the food related to obsessed people, diabetic patients and for those who are health conscious. The study will define market entry strategy of a company, application of Pestle analysis, STP analysis, SWOT analysis and justify effective market research through competitive analysis with other cafes. Furthermore, it will explain the approaches of value chain. Lastly, Business model canvas will represent the firm values, position and infrastructure, finances and Customers. MAIN BODY Introducing business idea and market entry strategies. Product or service:The idea will be opening of aGregarious cafewhich will offer a variety of food items such as vegan breakfast, organic porridge, scrambled egg toast, spinach sandwiches etc. and drinks items such as orange, pear, aloe Vera apple juices to a large number of people living in and around UK. Target market:The targeted segmented would be upper and middle class income groups. Special attributes:Major focus will be providing those food items which are organic and are healthy as well as less harmful for the customers. Values:By providingpremium quality organic products and respecting all the opinions given by the customer. Location:The firm will be located in UK and will aim to expand globally through various online mediums. Involvement:It will include the workers, owners, suppliers, distributors etc. Marketing strategies:There are various types of marketing strategies which can be used to start up any business and the one adopted for this cafe would be thelicensing strategywhich would allow to use the property in the target country (Ristevska-Jovanovska, 2018). Also, this strategy requires little investment initially but it provides high rate of return to the future. Licensing will
help to reach new markets with minimum risks and without any trade restrictions as the licensee is usually 100% locally owned. Presenting the rationale for launching the business In the current era of increasing health awareness among the UK people, this cafe is opened to provide range of organic product items for obese, diabetic and other health related problems people. With the current lifestyle among UK people the obesity is believed to be risen to 30% by the end of year 2030. To avoid such cases this cafe will provide the best customer experience by providing all its product items that are healthy and are not easily available in the UK market through its competitors. Further, all the products will be free from toxic chemicals and so it will not affect the human health in any form which will help in creating the awareness and also attract new customers which are necessary for the growth of the firm. Moreover, the organic food products provided will be better in taste than those who contains artificial flavors. Determining the micro and macro factors present in the business environment The micro analysis of the market will be done on the basis of SWOT which identifies the strength, weakness and opportunities which are internal to any organization and will also identify external factors will affect the organization. Some of them for the gregarious cafe is been presented as follows. SWOT analysis Strength ï‚·For the organic products in the market high margins of profits can be achieved (Vlados and Chatzinikolaou, 2019) ï‚·Theamountofriskisverylowas compared to other market options. ï‚·Environmentfriendlyproductscan cause less pollution to environment. Weakness ï‚·There is limited flexibility in pricing and as a result prices of the product cannot be changed easily. ï‚·Costofinvestmentisveryhighin initial stages. ï‚·High inventory costs are involved in purchasing the raw materials and this can increase the production costs. ï‚·Opportunities ï‚·New stores will be opened in nearby Threats ï‚·Changes in the government regulations
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areasoftheUKtoenhancethe customer base. Marketscanbeexpandedglobally through various online platforms like developing the websites where goods can be delivered easily at the homes (McKenzie, 2017). Indifferentmarketspricesofthe productscanbechangedeasily according to that country policies. and laws can impact the working of the organization. Duplication of the products is possible when there is high competition in the market. Organicfood marketislesspopular than other markets as a result people will not fully support the use of organic products. PESTLE analysis Political factors Various factors such as government rules, regulations, trade restrictions, tax policies etc affect the business activities of any firm. In case of quoted firm these factors can be of great value when government makes changes in various agriculture policies to encourage the produce of organic food crops (Casañ, Alier and Llorens, 2021). Moreover, if tax rate becomes higher than the goods will be sold at higher rates which will create the negative impact on the firm. Further if there are trade restrictions than the firm cannot trade freely and there will be fewer chances of the firm to spread its business in other regions. Economic factors Factors such as unemployment rate, inflation, economic recession etc can affect the operations of the new start up business. If the labor cost is increased than all firms have to comply these rules and change the wage rates which will increase the final product cost and this will have negative impact on the growth of the business. Moreover, economic stability in the country can proved positive for the quoted firm as it will help in increasing the sales of the product. Social factors The eating habits of people have been changed over the period of years as they are more focused on consuming healthier products. They look for those products in the market which are
better for the health (Social factors affecting the business-PESTLE Analysis,2015). Other factors such as trends, attitudes, ethics etc also affect the buying habits of the consumers for example increasing obesity problems in UK people will make them use those products which are good for health. Therefore, such factors will have a positive impact on the quoted firm as it is producing only those goods which have less calorie and are high in nutrients. Technological factors Changes in technology will involve the use of less labor and produce goods on larger scale (Kozubikova and Kotaskova, 2019). In today era this factor may have the positive impact as the firm can introduce its own websites to sell the goods online to a larger number of consumers living outside and in nearby UK areas. Legal factors Factors such as company laws, environment laws, employment laws etc have to be complied fully by the firms so that no problems can be occurred in the future and work can be performed smoothly. It may create negative impact on the firm if laws are more of complex nature and various formalities have to be fulfilled. Environmental factors Whileproducinggoodsthefirmneedsto ensurethatitdoesminimumharmto environment and resources are not being misused. These practices may have positive impact on the firm as less noise, land, air pollution will not only improve the environment but will also create a positive image of the firm on the consumers and increases the customer loyalty. STP analysis It is the three step model that examines the segment, targeting, positioning of the product and communicates its benefits to various customer segments. Segmentation: Segmenting the market is very essential to target the right masses of people and for this purpose the quoted firm will usedemographic segmentationwhich includes division on various basis such as: ï‚·On the basis of age, it would be around 18-40 years. ï‚·Gregarious cafe would focus on both genders male and female. ï‚·Firm will be targeting working individuals, students, professionals etc. ï‚·Will focus mainly middle and high income groups.
Targeting The one which will be adopted by the Gregarious cafe would befocused marketing strategyas company may target just one segment with the single marketing mix (Hult and Ketchen, 2017). This is suitable for a company because it is a startup company with the limited resources. Also, this strategy is not suitable for large organizations as they cater to the large number of audience. Positioning The firm will expand the market using various products which are different from its competitors and increase its sales in future through continuousinnovation and creativitylike introducing more varieties of healthy organic products that does not exist in the market (Lopatin and et.al., 2019). It will also use various sales and promotion activities to establish the image of product in the market. Business canvas model This the model which is in the form of template to identify the firm values and can also be revised also during the period of time (Ojasalo and Ojasalo, 2018). Key partners Distributo rs Suppliers Key activities Selling varietyof organic food products Value propositions High qualityof healthy foods items Customer relationships Dedicated assistance Customer segments Mass markets Key resources Raw materials Human resources Machines and equipment ’s Channels Online methods Nearby outletsof UK
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Cost structure ï‚·Fixedcost:rent,salaries, taxes Revenue streams ï‚·Food selling ï‚·Media products and services Marketing strategy and Market growth strategy The market strategy for the chosen cafe is determined through 7ps of marketing mix such as product, price, place, people promotion, packaging and positioning. It helps company to defining the key issues that directly or indirectly affect the product. Product-Gregarious cafe will offer a wide number of food and drink options. The main categories of this cafe will be cakes, breakfast, pastries, lunch, filter coffee & teas, fresh fruits and cold brew. All the products will be vegan and vegetarian food which can be perfect for diabetic people, health conscious people, obsessed people and for those who used to take organic food items. This reflects that company deals with the efficient and effective products. Price-The company follow the price skimming strategy because sometimes it needs to lower down the prices due to change in competition and market conditions (Kurnianto and Ramdhani, 2019).Cited firm will follow this pricing strategy to charge the best possible amount for the particular products from its customers. Place or distribution-This company will be established in the London, UK.The location of the Cafe will be in a busy and market area where people go for shopping. This place can be access easily to the public with ample parking space (Fichter and Tiemann, 2020).It will also partner with online food delivering services such as Uber eats, just eats etc. in the cities of UK. Promotion-Gregarious cafe will promote their cafe by advertising through social media, because nowadays social media is one of the best possible to reach the people in a very less time. It can be provided the discounts and offer services on weekends and combo of sandwiches and coffee to attract the customers. People-The key people of the company are CEO, board of director, Suppliers, Buyers, employees and customers. Physical evidence:The various elements of physical evidence for the company are logo, brand, store furniture, brochures, uniforms and employee dress code and the customers.
Process:The process of keeping the customers happy by speedy billing services and easy acquirement of product in its cafe. Firm will achieve this by employing competent staff and paying attention to customer grievances and addressing issues. Value chain Value chain based on the primary and secondary activities of business. Primary activities are directly related to the goods and services. The secondary activities are included with enhancing the efficiency of the product to obtain strong competitive advantages surrounded by peers. Primary Activities of Cafe- Inbound Logistics-The company appointed finest quality of raw material such as coffee beans, bread, Fruits and vegetable etc. Coffee beans will have imported from directly from the producers in Africa, America, Asia and Latin (Kano, 2018). In case of beans that will be procured from the buyers of other cafes. Then, all the raw material will send to the logistic company, so they can easily export the product. Operations-Operation is the important process of the company to converting raw material into finished goods. To add value in the product it changes input into output. Such as coffee beans converted into Coffee as a drink (De Bruin and et.al., 2020). Bread and vegetable will change into sandwiches. Outbound Logistics-The storage and distribution of the company is to retail locations, that are important because there is no presence of intercessor in product selling for this cafe. Also, this type of products is mostly sold in the stores and cafes.
Marketing and sales- Gregarious cafe will invest more in the superior quality of the products and also provides the high level of the customer services as compared to aggressive marketing. Moreover, at the time of launching the company will also provide free sampling nearby stores to attract customers. Services-Business aims to build the customer loyalty through in-store services. The signature retail objective of the company is to provide the unique and best experiences of the organic food items. Theservice training plays a vital role in the value chain that makes it offering unique. Secondary activities of value chain Infrastructure-This includes departments like, finance, management, legal, etc., which will require to keep company’s stores operational (Milios and et.al., 2018). It can be assigned store managers on-site that help to oversee the pleasing stores and well-designed praised with good customer service provided by the dedicated team of employees. Procurement-It is the possession of resources and inputs, for the firm. This includes how a company obtains raw materials, thus, it includes finding and negotiating prices with suppliers and vendors. This relates heavily to the inbound logistics primary activity, where an e- commerce company would look to procure materials or goods for resale. Human resources management:This includes all the activities such as recruiting, hiring, developing, training and hiring of the employee who is able to fit perfect according to the terms and condition of the cafes. Technology:Company will adopt this technology which are directly or indirectly used in the cafe. Such as, computer system for billing and managing the accounts, automatic Coffee machine, Microwave etc. Risk mitigation While starting a new cafe the company have to face some risks which are as follows- Financial constraints-At the time of start-up the company have to attain the problem of the insufficient cash flow because there are very fewer investors who are going to invest in the start-up. To overcome this risk cited firm will grant loan from various financial institutions. Language barriers-It has identified that language barrier will be one of the most common problem in UK (Putra and et.al., 2019). Especially in London there are various language spoken in different accent, so it will be hard to communicate with customer. To
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mitigate this problem organization will hire those employees who are comfortable in various languages and used to communicate with various accent. Lack of Resources–The start-up can be faced the risk in terms of financial resources, human resources etc. and insufficient resources. This will be overcome by knowing about the availability of team, avoid the unrealistic schedules. Cyber security-All the information related to business are stored in installed systems, hackers will be going to take advantages of loopholes within the systems. In order to overcome this problem company, need to install some security and private networks like VPN (virtual private network). Competitive analysis of Gregarious Cafe BasisGregarious cafeVantra VeganPlant hub organic ProductOrganic Product offers by thiscafearespinach sandwiches, wide range of drinks, Glutton free dishes and also provide food for diabeticpatients,and obsessed people. VantraVeganproducts are Spicy kimchi, seaweed noodles,basil soya lassi, exoticpowersmoothies, fresh juices etc. Thiscafeoffersglutton and vegan free pizza and pasta,vegancuisine, garlic bread etc. PriceThefirmwilluseprice skimming strategy. Price penetration strategy followed by this cafe. Thisisalsousedprice penetration strategy. USPThe highest quality.Lower pricesThe first ever. PromotionPromotionalstrategies followedbyGregarious cafe food are social media, hoarding etc. Advertisementthrough offeringcoupons,create pamphlets. Promote via sending gifts to customers. Financial plan
expenses Total cash outflows 10700986316779. 52 17009. 7008 17279.3 8883 18950 .5863 9 20032 .9518 4 189 90.7 999 1 10997 .7519 1 1115 7.923 99 11323 .7081 9 1149 5.313 1 Cash deficit 123001563710972 8 15261 9 23054870146 8 75943 0.461 8 810 745 81599 3 6903 09 69576 6 7453 10 CONCLUSION On the basis of above discussion, it has been concluded that by using pestle analysis, it has identified the external factors which are affecting the business environment. By SWOT analysis it has identified that which factors are affecting internally the business. Moreover, through the risk mitigation it has recognized that cafe will use all the strategies to overcome the risk. Further, company should follow this business plan meet the goals and objectives of the firm. That business plan played a very important role within the business. This creates more effectiveness for business. On the other side, 7ps of marketing mix point out all the elements of the business. Lastly, the report visualised by business model canvas to recognised the key activities, channels, customer relationship and cost structure.
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