Starting a Business and Fundamentals of Marketing

This document provides an overview of starting a coffee house business and the fundamentals of marketing. It discusses the business idea, including the variety of coffee products that can be offered, the profitability of the business, and the importance of selecting a good location. It also evaluates the external environment using a PEST analysis, considering the political, economic, social, and technological factors that can impact the coffee shop business. References to relevant books, journals, and online sources are provided.

Starting a Business
and Fundamentals of
Marketing

Contents
An overview of business idea......................................................................................................1
An evaluation of the external environment.................................................................................1
REFERENCES................................................................................................................................2

An overview of business idea
To establish a new business, the individual can consider coffee house business idea where
they can offer different variety of coffee products like hot coffee, cold coffee, herbal coffee,
organic coffee, green coffee as well as flavoured coffee also. Because in current era it is not a
product which is only use by people for removing stress and anxiety as well as used as a healthy
drink in form of organic, herbal and green coffee products (Yuliantoro and et. al., 2019). By
selecting a crowdy, corporate and popular location, this business can be start and it is a profitable
business as in current era, drink and coffee sector is more developing industry and assist in
earning more profit and revenue in effective manner. Along with this, it will not consume more
place as by taking a shop on rent, the person can state it with require equipments like coffee
machine or required material. Along with this, by offering quality product, the business can
retain its target audiences.
An evaluation of the external environment
For the determination of external environment, PEST analysis can be considered which
is a strategic tool used to analyse the impact of macro environment factor over a particular
business. The explanation is as below in reference to particular business idea:
Political- The basic production of coffee beans is centred in Africa, South America and
Asia, the biggest customer base of the product is situated in North American and Europe. As a
result, the coffee sector is greatly based on international trade in respect to operate. The free
trade aspect of this political factor will positively affect the business of coffee shop as the person
will buy coffee beans and other material in effective manner and development in its business.
Economical- The high economic development of developing nations and the
unemployment rates create opportunities for new coffee business to earn more profits from
diverse market. Growth of customer income crosswise the world has permitted the beverage to
take on premium roles that have largely incremented profitability (Hämäläinen, 2018). The
developing consumer expenses index is instantly linked to the maximised demand for premium
grade coffee beans.
Social- In current era, trend in society regarding food and beverage is health
consciousness. Since coffee contains high amounts of caffeine number of individual think and
consider it to be an unhealthy drink which can affect this business unfavourable manner. But in
current era, by offering healthy coffee drinks like herbal, organic and green coffee products
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which produced by coffee seeds that with lower caffeine quantity. It assists in getting attention of
all age group of people and meets the health consciousness demand.
Technological- Recent development in technology has been a huge boom to the coffee
sector. There are diverse multipurpose coffee machines are great tool which has enabled keep the
coffee culture in place (Lichtenthal, 2020). Along with this, by using effective payment
technology and online product delivery service to its target audiences, the firm can make
effective technology in its start up.
REFERENCES
Books & Journals
Yuliantoro, R. and et. al., 2019. IMPLEMENTATION OF MARKETING MIX STRATEGY
FOR START-UP BUSINESS: FRUIT COMBINING. Russian Journal of Agricultural and
Socio-Economic Sciences, 87(3).
Hämäläinen, M., 2018. Efficient business planning fundamentals within a manufacturing
company: case: Company X.
Lichtenthal, J.D., 2020. Fundamentals of business marketing education: A Guide for University-
Level Faculty and Policymakers. Routledge.
Online
PESTLE Analysis of The Coffee Industry. 2020. [Online]. Available Through:
<https://www.marketingtutor.net/pestle-analysis-of-the-coffee-industry/>.
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