Business Plan Development for Food Service

The assignment tasks students with developing a detailed business plan for a hypothetical food service company. It requires analyzing the target market, outlining operational procedures, estimating costs and revenues, and proposing strategies for monitoring and controlling business performance. The plan includes sections on staffing, marketing, and environmental considerations.

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Executive Summary
The below presented analysis has been executed for the given scenario and is focused on the
development and introduction of a new, organic and healthy flavor of coffee by “Caffee” that is a
coffee house in Melbourne. The report is divided in various segments so as to develop awareness
of the marketing principles for the business corporation. The report comprise of the various types
of analysis such as environmental, market and customer analysis. Further the different types of
the business objectives are discussed that are required to be attained by the business corporation.
The next is the target market and the marketing strategies that are required to be implemented for
the growth and success of the business entity. After the development of the strategies the
business entity is require to make implementation of the developed strategies. The next part is
the allocation of the expenses that are required to be incurred by the business firm. The last
segment is the evaluation and control plan.

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Contents
Current situation..........................................................................................................................................3
Background to sustainable offering.........................................................................................................3
Environmental analysis............................................................................................................................3
Market and customer analysis..................................................................................................................3
Objectives....................................................................................................................................................4
Financial objectives.................................................................................................................................4
Marketing objectives...............................................................................................................................4
Other stakeholders objectives..................................................................................................................4
Target market..............................................................................................................................................5
Marketing strategies....................................................................................................................................5
Positioning...............................................................................................................................................5
Product....................................................................................................................................................5
People......................................................................................................................................................6
Process.....................................................................................................................................................6
Physical evidence....................................................................................................................................6
Price........................................................................................................................................................7
Place........................................................................................................................................................7
Promotion................................................................................................................................................7
Marketing implementation..........................................................................................................................7
Budget.........................................................................................................................................................8
Evaluation and control.................................................................................................................................9
References.................................................................................................................................................10

Marketing Principles
Current situation
Background to sustainable offering
The below-presented analysis has been made focused on developing and introducing a new and
healthy flavor in coffee by “Caffee” that is a coffee house in Melbourne. And this is due to a hike
in the demand and consumption of coffee rate in Melbourne city. On the basis of the research
conducted by Australian Bureau of Statistic, it has been analyzed that the ratio of drinking coffee
was 46% as compared with 38% that of drinking tea in the year 2014. But too much drinking
coffee was causing various harms to the health of individuals and hence the idea of “Green
coffee beans” was introduced. Moreover, for generating revenue after the
cost applied and expense is a key to the shop's sustainability.
Environmental analysis
The concept is concerned with the internal and the external factors which play an integral role in
stimulating the business environment for the organization and the product. As per the given
scenario, Green coffee beans are the innovative idea which has been introduced for the coffee
lovers and also to minimize the bad effects of consumption of coffee on the health of individuals
in Melbourne. There are number of internal and external factors that are held responsible for
stimulating the business environment and the demand and sale of the concerned product. There
will be various positive and negative impacts on the products demand and value. The varied
range of approaches can be adopted by “Caffe” and these approaches will aid in attaining the
number of data and methods for developing the business. These methods will be proven
beneficial in attaining a sustainable position in the market. For instance, for internal
environmental analysis, the approach of SWOT analysis can be adopted, which will assist in
getting aware of the strengths, weakness, opportunities, and threats of the product.
Market and customer analysis
Market analysis is termed as an activity which generates awareness regarding the various
conditions and aspects of the market. This research will enable Caffe with the relevant data and
also determines the suitability of the marketplace for the particular product or the entity. This
analysis will aid the entity in providing a holistic picture of the market in which the brand is
interested in. For instance, a market analysis will aid in generating information about the market

Marketing Principles
of Melbourne, the changing marketing trends, technological up-gradation etc. These aspects of
the market will aid in developing and establishing the product in a new market region
(Cmgpartners 2018). The next segment is customer analysis which will develop awareness
regarding the various aspects and characteristics of the customer within the target market. This
analysis has been considered as a critical component in each and every stage of growth for a new
product and hence will be proven best for Green coffee beans in Melbourne. Customer analysis
comprises of the buying patterns, income level, tastes and perceptions of the consumers. These
elements are held liable for stimulating the demand for the product.
Objectives
The aim or the accomplishments expected by the business entity to be attained throughout the
year are known as objectives. Business goals are the most integral part of a planning process.
There is the diverse range of objectives established by a business entity and same are in the case
for the Caffe in Melbourne and that is planning to introduce the new flavor of coffee. The below
presented are the financial, marketing and other objectives for stakeholders:
Financial objectives
 Widening the profit margins up-to 35% as compared to the last year
 Increase in returns on the capital invested
 Growth in revenues and earnings by 50% each
 Diversification in revenue base
Marketing objectives
 Growth in market share and customer base by 35% and 30% respectively
 Launching new flavors of coffee (Plewa, Conduit and Quester, 2016)
 Increase of 50% in sales
Other stakeholders objectives
 Establishing strong relations with customers and other stakeholders
 Launching revenue generation schemes
 Offering the best flavor with quality and healthy components in coffee at one place to the
customers

Marketing Principles
Target market
The concept is concerned with the various consumer segments which are targeted by the business
corporation for advancing and establishing and promoting the brand equity in the marketplace.
Caffe can develop consumer segments or the target market on the basis of the various
components which are the most integral elements of the consumer segments (Marshall, Desborde
and Thach, 2016). The below mentioned is the target market which has been developed on the
basis of some variants such psychographics and demographics:
Demographics: This segment is one of an integral part of the target market and under this Caffe
can segment the consumers on the basis of age, gender, income, ethnicity etc. Caffe can target
mainly men and women between age 25-44 and young adults, aged 18-24.
Psychographic: Under this, the consumers can be segmented on the basis of their lifestyles,
perceptions, interest towards the product etc. For instance, they can execute an analysis of the
consumers who are coffee lovers and should focus on them and advertisements and promotions
should be designed accordingly (Armstrong et al., 2014).
Marketing strategies
A set of plan or action or activities designed for promoting the products and services of a
business firm are the marketing strategies (Sheth and Sisodia, 2015). This is the section of the
business plan that outlines the game plan for attracting and attaining the customers. The below
mentioned are the main components of the marketing strategies which are required to be
developed by Caffe for attaining growth and success:
Positioning
Caffe can develop brand equity by establishing distinct positioning statements. These statements
will aid in attracting and attaining huge pool of consumers (Duermyer 2017). “Drink Organic,
Live Well” is the positioning statement which can be used by Caffe for attracting the various
segments. The positioning statement will develop a positive value in the mind of the consumers.
Product
The product designed by the entity is an organic one and that has been innovated for keeping the
individuals of Melbourne healthy (Armstrong et al., 2015). It is a new coffee flavor which is

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made up of Green coffee beans. At starting the coffee will be made available at the café which
will be located at the popular places in the city of Melbourne. As the present era is more focused
towards living a healthy life, the concept of organic coffee will be aiding Caffe in sustaining
competitive advantage.
 Recommendations: Caffe should make use of attractive labeling such as the use of
bright color themes while packaging and also the material used for packaging should be
environmental friendly.
People
For providing quality services the business entity should focus on motivating, training and taking
care of the employees or the staff of the coffee houses. Training sessions should be organized for
the staff so as to make them adopt the customer service culture and thus ensuring a high quality
for the customers. Moreover, proper motivation as per the performance of the staff should be
provided that will enhance the dedication level of the staff towards the customer service
(Armelini & Villanueva, 2011). The staff should focus towards the expectations and the
requirements made by the consumers so as to deliver the high level of satisfaction.
Process
The managers and the seniors at the Caffe will provide training sessions to the teams and the
staff for updating the operations and procedures executed in the organization. Updating will aid
the staff to bring development and this will also enhance the performance level. This all will
directly affect the services provided by the staff to the customers and will fulfill their
expectations.
Physical evidence
The outlets and the coffee houses are considered as one of the most integral and valuable parts of
the business and these factors aid the entity in attaining growth and success (Drucker, 2014).
Caffe should develop and design an attractive ambiance for the customers so as to make them
feel good. Layout of the coffee house should be spacious, everything should be arranged in a
manner, staff should be in proper uniforms etc.

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Price
As the business entity is expecting to launch a new product so the penetration pricing strategy
can be used by the business entity for attracting the customers on large scale. According to this
pricing strategy, the business firm should keep the prices low at the initial stage and after
establishing a customer base and attaining market share the prices can be increased accordingly.
Place
Distribution channels are the mediums through which the business corporation can make the
availability of the products to the consumers. The business entity has limited options for making
the products and services available for the consumers (Dorn and Suessmair, 2017). The physical
outlets and the coffee houses are the only distribution channels through which the entity is
offering the services. These are considered as the direct channels of distribution.
Promotion
The business firm can make various forms of promotions for widening the market share for the
product. Caffe can make a distribution of coupons at public places such as train stations,
distributing pamphlets, free samples can be distributed for promoting. Moreover, social media
and other online platforms can be utilized for advertising the brand. Further, the business entity
can also organize integrated marketing communication sessions so as to develop relations with
the customers.
Marketing implementation
This operation is concerned with the implementation process of all the plans and strategies that
are developed by the business entity for executing the business (Deakins and Freel, 2009). The
below mentioned is the action plan which has been developed for Caffe so as to make practical
implementation of strategies:
Actions Starting date End Date Responsible
Person
Related
Department
Expenses
Establishing
new targets and
mission
1/08/2017 30/09
/2017
Managerial
authorities
Management
staff
$1500

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statement
Communication
regarding the
determined
marketing goals
and objectives
1/10/2017 31/12/201
7
Managerial
authorities
Management
staff
$3500
Generation and
innovation of
ideas for
decision making
1/01/2018 30/04/20
18
Concerned
experts from
departments
Heads of
departments
$2000
Developing
substitute and
alternative ideas
1/05/2018 30/11/2
018
Marketing
Executives
Marketing
department
$4000
Making
implementation
of marketing
tactics and plan
1/12/2018 2/03/20
19
Managers
and
executives of
marketing
and
advertising
departments
Marketing
department
$4500
Budget
Budget for Caffee
Resource Amount ($)
Stock and Supplies 15,000.00
Machinery 450,000.00
Equipments 20,000.00
Lower Level Staff (15 Staff*$1,000) 15,000.00
Kitchen Staff (10 Staff*$2500) 15,000.00
Senior Staff (10 officials*$4500) 45,000.00

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Total 570,000.00
Evaluation and control
And at last the business entity is required to develop some strategies for monitoring and making
control over the process and operations executed at the business entity. The management staff is
held responsible for executing the monitoring and controlling practices. Various approaches and
mechanisms can be adopted by the business corporation for monitoring and controlling the
various aspects and operations within the organizational structure (Bruni, Gherardi and Poggio,
2014). For instance, for monitoring the performance of the employees the business entity can
make use of KPI’s. For checking and controlling the quality of the products and services the firm
can make use of the approach of TQM. For evaluating and assessing the results of the marketing
efforts the business entity can carry out various surveys and researchers which will aid the entity
in getting the data about the consumer’s attitudes and their behavior. Some preventive measures
should also be adopted in relation to safeguarding the environment, such as reduction in food
wastage, recycling etc. can be done.

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References
Armelini, G. & Villanueva, J., 2011. “Adding social media to the marketing mix”, IESE
insight, vol. 9, pp.29-36.
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Bruni, A., Gherardi, S. and Poggio, B., 2014. Gender and entrepreneurship: An ethnographic
approach. Routledge.
Cmgpartners, 2018, What is customer analysis, Assessed on 21st January 2018,
http://cmgpartners.com/content/customer-analysis/.
Deakins, D. and Freel, M.S., 2009. Entrepreneurship and small firms. McGraw-Hill College.
Dorn, T. and Suessmair, A., 2017. Determinants in Pay-What-You-Want Pricing Decisions—A
Cross-Country Study. American Journal of Industrial and Business Management, 7(02), p.115.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Duermyer, R, 2017, Marketing strategy for home business success, Assessed on 21st January
2018, https://www.thebalance.com/marketing-strategy-for-home-business-success-1794314.
Marshall, K.P., Desborde, R. and Thach, S., 2016. A Fine Arts Marketing Elective: Justification
of Need and Proposed Course Content.
Plewa, C., Conduit, J. and Quester, P.G., 2016. Making a Difference Through Marketing.
Springer Verlag.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the
future. Routledge.

Marketing Principles