Starting a Business and Fundamentals of Marketing

This document provides information on starting a business and the fundamentals of marketing. It covers topics such as business plans, market analysis, competitor analysis, customer analysis, marketing strategies, pricing strategies, and more.

Starting a Business and Fundamentals
of Marketing
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Contents
Business Plan...................................................................................................................................3
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Business Plan
Executive Summary-
A coffee shop business plan is related to the interests, demand and preferences of
potential consumers. It helps the business to follow some suitable standards layout and consists
of single document categorized into different manners.
Valley Coffee shop will sever high quality of coffee facilities and also provide the coffee
related products which is always attracts more consumers. Every staff members who work
nearby and sell flavored based drinks with focused on the providing quality at speed. In this way,
valley coffee shop will sell coffee product and take away as well as to eat in. Moreover, owner of
valley coffee shop has arranged the indoor or outdoor seating area with space more than 30
consumers.
Company overview-
Valley coffee shop will be privately held company and owned by Nick smith, who will
always manage and control their coffee shop. Sometimes, it is always tried to implement
innovative idea in the business for purpose of expansion in global marketplace (Bui, 2020).
Owner of valley coffee shop will hire, recruit full time employee with at least 2 years of
experience. In this way, it become easier easy to understand the specific need or requirement for
potential customers.
Vision-
The vision of valley coffee shop is to provide a friendly, comfortable atmosphere where
existing client can receive best quality of coffee items. The start-up will focus on the giving
better discounts, offers during occasions.
Objectives-
 To increase the profitability as well as productivity of coffee shop business
 To implement innovative idea in the business to increase the entire performance and
efficiency of valley coffee shop.
 To increase the profitable rate 5%-7% within next 2-3 years.
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 To establish a strong coordination with client to fulfil all necessary demand in proper
manner.
Goals-
The goals of coffee business are to provide the substantial income and also creating an
appropriate business and healthy working environment where both consumer and employee
treated with respects. In this way, company will achieve their desirable goal and objective.
SWOT analysis-
A SWOT analysis is based on the evaluation of proposed cafe’s strength, weakness,
threat and opportunities. These can help to determine the niche market and preferences of
consumers towards coffee product as well as services.
Strength
The strength of valley coffee shop is to reflect on their uniqueness, which is always
attracted the potential consumers towards product as well as services. Be detailed about this
because products are pulling together a list of selling points (Kim and et.al., 2020). In this way, it
is always supports for maintaining the quality of coffee, the atmosphere and decors of planned
café.
Weakness
The weakness of Valley coffee shop is that when investing a large amount of money in
the maintenance of business premises. The owner of enterprise will decide to sell their rare item
of coffee but it may difficult to acquire, perhaps. Start-up enterprise do have require as much
experience in areas or getting financing in concern.
Threat
A major threat of valley coffee shop is related to the high competition level, which is
directly affecting on the current business performance. Another way, changing the price or cost
within coffee that will develop more fluctuations within economy. If any kind of drastic change
occurs which can reduce the level of production or sales in global marketplace.
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Opportunities
Evaluate that market opportunities which come across. If owner of valley shop has been
noticed that all coffee shop in particular chosen areas. This can support for enterprise to find the
interests, need and requirement of potential client. Moreover, identifying the untapped target
audience which is consider the key success in space or area.
Market Analysis-
According to the research, it has been analysed the target market and there is enough
demand for particular products to make a better coffee business viable. On the basis of
competitive analysis, it has been examined the preferences of coffee in schools, offices,
complexes (Lourenço, 2020). These are primarily target market for students, professional
business people. Both targeted groups are heavy consumers of tea, snacks and coffee. On the
basis of survey, there is a strong demand towards high end coffee shop in central areas or
location.
The valley coffee shop is expected to keep growing the business in UK London, As per
research, it has been suggested that coffee is one of the most consumed beverage in the country,
with the average person drinking two cups per day. It is also believed that growth, add high
volume of coffee people drink every day. It makes an opening of new start-up based coffee shop.
In this way, it has been considered the good business opportunities in global marketplace.
Competitor Analysis-
Valley coffee shop will be located in the prime location that is seeing various offices
open up and new companies are move in (McAdoo, 2020). these are consider the currently as
two other coffee shop within immediate area or place but it is also believed that there is room for
more.
Main advantage of start-up enterprise that is closely related to new office building than
other shops. It is also making an effective plan to differentiate ourselves by providing the
excellent lunch menu, unlike any of existing coffee shops. This will help for maintaining
different customer loyalty schemes.
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Customer Analysis-
As per analysis, valley coffee shop is mainly focused on the location or area of enterprise,
especially offers the before and after work, during lunch times. In this way, it will increase
chance to interest of consumers towards business (Nguyen, 2020). Prime location or areas has a
high proportion of professionals, who can afford to spend money on the coffee and additional
drinks. These are majorly influence the potential consumers to maintain the strong position in
global marketplace.
According to the customer analysis, Valley coffee shop plan must be detailed about the
consumer where enterprise they serve. Usually, it has been segmented the customers such as
college students, professionals workers etc. As per selection that will have a great impact on the
type of coffee shop you operate (Puspita, 2019). It is clearly define the suitable atmosphere,
pricing and product options. Sometimes, it would respond to the different marketing promotions
that teens.
The important aspect is to target potential consumer in context of demographic as well as
psychographic profile. In regards of demographics, include all discussion on the basis genders,
location and income level of individual people. The start-up coffee shops server a better
customer living thing effectively and efficiently.
Marketing strategy-
The owner of valley coffee shop is focused on the products offers and identify the
existing competition uses lower grade beans, inexpensive equipment’s. If every staff members
does not properly trained (Nguyen, 2020). As a result, it has been developed the inconsistent
product quality and dissatisfied the potential customers.
At valley coffee shop, Employees are passionate about the coffee and intended to focus
on the consistently serving high quality of coffee item.
 Sourcing the premium beans, snacks and maintaining its freshness at every time
 Using a proper coffee machine and related their equipment’s
 Giving the baristas through professional training session.
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Staff members of Valley coffee shop is focused on the quality, consistency and consumer
service. it help to build a steady repeat consumer base.
Pricing strategy-
It intend to concern on the speciality coffee including mochas, espresso and so on. This
can help for maintaining the profit margins as such higher than regular coffee. In this way, it has
been analysed that pricing strategy plays important role to attract more consumers
(Wahyuningsih Kasuma and Darma, 2020). Many people are conscious about the cost or price of
items. That’s why, start-up enterprise will try to give offers, discounts at time by time. In this
way, it will be increasing the demand of business in global marketplace.
Advertising and Promotion-
Valley coffee shop will reduce the price or cost, establish connection with consumer
demographics. This can possible when coffee shop will use different platform such as social
media like Facebook. This help to aggressively promote or advertise detail of different products.
Sales-
Valley coffee shop will be offering the best service in professional manner. Basically, a
start-up enterprise will design a cosy area, interactive dynamic areas or space. Seating will be
consider the mix of smaller individual tables with intimacy, longer and bench styles for large
group members.
Marketing Plan
Marketing Mix (4Ps)
Product- The decision of product selection is mainly depending on the demand,
preference of potential consumers, who always attract to select best coffee items. In this way,
Valley coffee shop offers a coffee item, vegetable snacks and additional drinks (Arroyo, 2020).
After sale service, it is consider the appreciated at the time of export of coffee produced on its
farms.
Price- Valley coffee shop will improve the understanding towards pricing concept which
become consider as essential factors in the client purchase decision. Company will use pricing
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strategy to provide the coffee item in low price. In this way, it gained competitive advantage in
global marketplace. The pricing strategy will attract potential consumers where they can select
the best option, according to their needs. Because many people have faced the issue of low
income and try to avoid for taking services. At that time, pricing strategy play important role to
give best options, start-up enterprise will increase profitable rate in global marketplace.
Place- A valley coffee shop will be established in the prime location, which means to
provide the transportation of product and services. Generally, it is all about the distribution
channel to record the specific need or requirement for consumers (Wahyuningsih Kasuma and
Darma, 2020). Afterwards, it will be delivered the best quality of good and service at their
location. The effective distribution channel must ensure that all goods and service delivered to an
agreed location. It is consider the important aspect to attract the more consumers towards valley
coffee shop.
Promotion- The promotional mix is that means by which potential consumers are made
aware of available product as well as service. Usually, Valley coffee shop is considered the
social media channels such as Facebook. These are consider the social media platform which
may support for promoting the product as well as service in global marketplace. On the other
hand, start-up enterprise will focus on the website, smart application in which provide awareness
among consumers in regards of product as well as service.
Investment needed and financing opportunities
Financial plan is important for Valley coffee shop enterprise, especially if need dept
financing or wish to attract more investors. The owner of start-up enterprise has been
demonstrated that will grow enterprise and maintain profitable rate (Wahyuningsih Kasuma and
Darma, 2020). In order to implement the different strategic approach to create a better income
statements, cash flow as well as balance sheets. For a new enterprise, these are consider the
important aspects to estimate the actual need or requirement for business. The owner of valley
coffee shop will anticipate cash revenues, disbursements for expenses. This can play important
role for demonstrating that will manage cash flow and generate accurate result or outcome.
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To maintain the actual cost or price of goods sold to 10% to 20%. The Valley coffee shop
enterprise will increase sales within 18 months in time intervals to 3% of target market. It is
important to record or maintain all kind of financial information or data. The overall cost require
for Valley coffee shop is $99,000. The major contribution of cash is $10,000 and family
members or investor is $16,000.
Cost Analysis-
On the basis of customer profile for Valley coffee ship as following number were compiled. As
per cost analysis, it has been obtained the information on the basis of fact reports. Usually, it is
alsi identified all essential price or cost of available investment (Wahyuningsih Kasuma and
Darma, 2020). It was preapred by using valley coffee shop as important point and delineating
number by one.
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There are some important objective or goals of financial perspectives:
 Purchases and use the ERP system
 Train the staff members with proper business handlinh to prevent the waste
 Maintain the weight and portoning the better system for food
 It is also checking the quality of food from suppliers and delivered
 Hire, recurit the experienced or qualified accounting information management.
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REFERENCES
Book and Journals
Bui, H., 2020. Green marketing as showcase of sustainable coffee shop business.
Kim, S.H. and et.al., 2020. Consumer-Based Brand Authenticity and Brand Trust in Brand
Loyalty in The Korean Coffee Shop Market. Journal of Hospitality & Tourism Research.
p.1096348020980058.
Lourenço, I.P., 2020. SALECO coffee shop: business plan (Doctoral dissertation).
McAdoo, J.H., 2020. Strategies Independent Coffee Shop Owners Use to Gain a Competitive
Advantage (Doctoral dissertation, Northcentral University).
Nguyen, H.N., 2020. Creating an effective digital marketing plan for a small new coffee shop:
ChoCoCha.
Puspita, D., CORPUS BASED STUDY: STUDENTS’LEXICAL COVERAGE THROUGH
BUSINESS PLAN REPORT WRITING. 16 November 2019, Bandar Lampung,
Indonesia i.
Wahyuningsih, D., Kasuma, J. and Darma, D.C., 2020. Application of Market Innovation
Strategies for Banjaran Coffee Products using the Walk Shop. International Journal of
Entrepreneurial Research. 3(2). pp.49-53.
Arroyo, J.C.T., 2020. Analysis and Design of Enterprise Resource Planning System for a Coffee
Shop. International Journal. 9(3).
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