This project covers the fundamentals of marketing and a business plan report for setting up a cafeteria. It includes research presentation using different models and frameworks such as Pestle Analysis, SWOT Analysis, Competition Analysis, Industry Analysis based on Porter's Five Forces Model, Target Market and Marketing Plan.
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Starting a business and fundamentals of marketing
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Table of Contents Section 1...........................................................................................................................................3 Introduction.................................................................................................................................3 Business idea...............................................................................................................................3 Personal skills and experience....................................................................................................4 Location.......................................................................................................................................4 Section 2 Research Presentation......................................................................................................5 Pestle Analysis............................................................................................................................5 SWOT Analysis..........................................................................................................................6 Competition Analysis..................................................................................................................7 Industry Analysis based on Porter's Five Forces Model.............................................................7 Target Market (including segmentation criteria employed)........................................................8 Marketing Plan (structured around 4Ps).....................................................................................8 REFERENCES................................................................................................................................9
Section 1 Introduction The process of marketing is considered as a fundamental component of the business management. It refers to perform activities within marketplace for fostering buying as well as selling of products and services in order to capture target-audience. This function provide assistance to a business in creating an appropriate flow of goods and services starting from the process of production and ending with satisfying the needs of customers. Fundamental of marketing cover processes by which a business obtains what it wants and needs through generating and exchanging goods and services with other people(Castelo, Bos and Lehmann, 2019). This project is based on two section in which the first section include business plan report while second section include research presentation using different models and frameworks. The first section covers business idea, location of business and personal skills and experience. The next section covers Pestle analysis, SWOT analysis, competition analysis, industry analysis, target market and marketing plan. Business idea The business idea is concerned with setting up a firm and drives every aspect of the organisation from what products as well as services are offered to how such goods and services get marketed. A business idea should be unique and effective such that it must have the potentiality to attract part of its target-audience. Within this existing report, the chosen business idea is setting up a Cafeteria as a small business. The name of the cafeteria will be “Sip and Savour”. The reason behind choosing cafeteria as a business idea is that nowadays a cafe is fast becoming a popular choice of the market share. By starting a cafeteria, the business can create a pleasant environment as well as a safe space for the marker-base who are seeking it and also provide people space to get socialise(Goryushkina and et.al., 2019). Starting a cafeteria can be extremely profitable if the business operations run smoothly. This is an evergreen business and changes can also be made as per the needs and wants of the customer-base which will help the owner in chasing competitive advantage within marketplace. Sip and Savour Cafe will provide fusion of tasty and healthy food as well as beverages. Because of the pandemic situation of COVID-19, people become more health conscious and are demanding healthy food which gives an opportunity to Sip and Savour cafe to chase competitive
benefit. The organisation will make twist within fast food of healthy and tasty veggies that will make it more healthy and tasty for customers. This cafe will make use of highly developed technologies for differentiating its products and services. Such technologies are associated with digital payment as cafe will provide different payment methods for convenience of target- audience. Business idea of cafe will also use social media to promote its products and services and will have its own website from where marker-base can book a table and can order food (Jobber and Ellis-Chadwick, 2019). This will help in making organisation more effective and efficient. Personal skills and experience In order to set up a business of cafeteria, an individual is required to develop a set of varied skills and knowledge so that it will help the person in managing the different operations of the cafe in an effective and smooth manner. I have effective communication skills, rime managementskills,problem-solvingskills,decision-makingskills,criticalandanalytical thinking skills and many more. The combination of these skills would help me in setting as well as managing every aspect and operations of cafeteria effectively and successfully. With the support of these skills, I would be able to operate differentiated activities of the organisation and would also help me in building strong relationship with the suppliers and market-base. I have a little experience also in managing the business operations of a cafe as I have earlier worked in a cafe where I had played the job role of HR. From there, I have developed a lot of skills and gained knowledge and experience regarding dealing with the business operations. Location The location that is chosen for the cafeteria “Sip and Savour” is London, UK where the cafe will operate its daily business activities smoothly and conveniently(Kapoor and Kapoor, 2021). The London is chosen as a location for cafe because it is a crowded city where people show great interest in food and beverages and it is also the city centre where people gather. Another reason for choosing this location is that people usually come to such places for enjoying their time and having food.
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Section 2 Research Presentation Pestle Analysis Pestle Analysisis a tool that helps in analysing the impact of macro-environmental factors that are influencing performance of an organisation. This model is used by Sip and Savour to analyse the impact of such external factors that can affect its business as a whole. Pestle analysis for Sip and Savour is given as under: Political factors:These factors are associated with guidelines, rules and regulations of government that influence operations of a business(Nguyen-Duc and et.al., 2020). In context to Sip and Savour, there is political stability in UK which positively impact the functioning of cafe as government of UK not frequently make changes in its taxation policy that will help cafe in earning more and more profits. Economic factors:The economy of UK is market-oriented and stable which will help cafe in increasing its market share and its brand value within marketplace. However, the pandemic situation of COVID-19 can influence the business operations of cafe as there can be further economic lockdowns due to this epidemic. Therefore, Sip and Savour shouldframecertainstrategiesto overcomesuch challengesand run itsbusiness smoothly. Socialfactors:Thesefactorsincludehealthconsciousness,tasteandpreferences, expectations, lifestyle and many more. Sip and Savour will provide healthy and tasty food items which will directly satisfy the needs and wants of the customer-base of UK as after pandemic, people become more health conscious and demand healthy food. This will positively impact business performance of cafeteria. Technological factors:The technological environment of UK is highly developed and upgraded and it is a great opportunity for Sip and Savour to establish advanced technologies within its business(Shahab and et.al., 2018). This will help organisation in saving both cost as well as time of the business and help in chasing competitive advantage within marketplace. Legal factors:There are certain laws and legislations that are framed by UK legislative system include Consumer Protection Act, Human Rights Act, Employment Act, etc. Sip and Savour must adhere these laws and work in an ethical environment so that it can maintain both employee retention and customer loyalty towards its business.
Environmental factors:Sip and Savour should consider corporate social responsibility as it will help in capturing more and more customers towards healthy and tasty food of the organisation. This will enhance business profitability, efficiency and productivity along with chasing competitive advantage over competitors in markets. SWOT Analysis SWOT Analysis is a tool that helps an organisation in identifying its strengths and weaknesses along with external opportunities and threats that exist within business environment (Singh and et.al., 2022). The SWOT analysis of Sip and Savour is as follows: Strengths:The major strengths of Sip and Savour include that the organisation is providing high quality food and beverages that create positive image of the business for customers. Another strength is that cafe follows customer-focussed strategy for serving the customers better in comparison to its competitors that enhances customer loyalty. Weaknesses:The cost disadvantage is the major weakness of Sip and Savour as there is very slight profit margin between cost and profit. Because of which, sometimes the cafe face difficulty in managing things. Another weakness is that, Sip and Savour highly depends on the supply of its suppliers which increases its business cost ultimately and minimises organisation's profitability. Opportunities:It is a great opportunity for Sip and Savour to use highly developed technologies in conducting business operations as it will save its both time and cost (Steininger, 2019). Another opportunity for cafe is to conduct research and development process as it will help in understanding customers perceptions, taste and preferences and introducing food and beverages according to their needs and wants which directly satisfy them. Threat:High competition is a major threat for Sip and Savour as there are a number of organisations that are serving identical food products. Some of competitors of Sip and Savour within UK include Costa Coffee, Coffee Republic, etc. that creates extreme competition for organisation. Competition Analysis Costa Coffee is considered as a competitor of Sip and Savour which will be helpful in conducting competition analysis for respective cafe:
BasisSip and SavourCosta Coffee ProductsPasta, coffee, pizza, cake, pastries, pattize, tea, lemonade, mojito, etc. It offers mainly coffee in different forms like Espresso, latte, mocha, cortado, etc. Promotional toolsSocial media marketing, online and offline advertising. Televisionadvertising,digital marketing, etc. Pricing strategyCompetitivepricingstrategyis followed to offer products. Premiumpricingstrategyis followed for offering products. Industry Analysis based on Porter's Five Forces Model Porter's Five Forces Model helps in identifying and analysing industry's structure to determine corporate strategy and competition level within industry(Visser, Kloos and van den Anker, 2019). Five Forces of this model are discussed as under in relation to Sip and Savour: Competitive Rivalry:Sip and Savour has many competitors within food and beverage industrysuchasCoffeeRepublic,CostaCoffee,etc.thatcreateshighthreatof competition for organisation. Threat of new entrants:In context to Sip and Savour, there islowthreat of new entrants withinfoodandbeverageindustryasUKgovernmenthasframedcertaintrade restrictions which create a barrier for new entrants to enter into such industry. Threat of bargaining power of customers:Sip and Savour has a large number of customers as it provides healthy and tasty food as per customers needs and wants at less prices in comparison to competitors that maintains customer loyalty. Hence, there islow threat of bargaining power of customers to organisation. Threat of bargaining power of suppliers:There are large number of suppliers in UK food and beverage industry providing raw materials to businesses. Therefore, there is moderatethreat of bargaining power of suppliers to Sip and Savour as a supplier increases its items' prices then cafe will switch to next supplier offering at relatively less price. Threat of substitute:There ismoderatethreat of substitutes for Sip and Savour as its competitors are offering them at less price in comparison to respective cafe.
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Target Market (including segmentation criteria employed) Marketing modelof STP helpsin segmentingmarkets, targetingmarket-base and positioning products and services in an effective and successful manner. Three different stages of this model are described below in relation to Sip and Savour: Segmentation:Sip and Savour divides its customers in small segments for targeting individual segment for its healthy and tasty food. As per this stage, cafe has developed segments on the basis of geographic and demographic segmentation . Targeting:At this stage, Sip and Savour target its market on the basis of location and income level of the buyers. It targets middle to high-income customers looking for healthy and tasty food. Positioning:As per this stage, Sip and Savour advertise its products for promoting them withinnichemarketthroughusingpromotionaltoolslikedirectmarketing,sales promotion, social advertising, etc. Marketing Plan (structured around 4Ps) Marketing Plan helps Sip and Savour in presenting its healthy and tasty food as well as beverages in a way that customers can buy them with full comfort and trust(Widarni and Bawono, 2020). There are four main elements within marketing plan which are generally comes under marketing mix tool. These are mentioned as below in relation to Sip and Savour: ProductThe products offered bySip and Savour include cakes, pastries, pasta, pizza, sandwiches, tea, coffee, juice, shakes, mojito, pattize and many more. PriceCafe follows competitive pricing strategy while offering its products to customers for gaining competitive advantage. PlaceSip and Savour is offering its food and beverages products through offline mode as it has only outlet where it sells its products. PromotionThe promotional tools used bySip and Savour include social media marketing, digital marketing, offline advertising, sales promotion and direct marketing.
REFERENCES Books and Journals Castelo, N., Bos, M. W. and Lehmann, D. R., 2019. Task-dependent algorithm aversion.Journal of Marketing Research,56(5), pp.809-825. Goryushkina and et.al., 2019. Theoretical aspects of entrepreneurial education for hospitality industry.Journal of Environmental Management & Tourism,10(4 (36)), pp.835-841. Jobber, D. and Ellis-Chadwick, F., 2019.EBOOK: Principles and Practice of Marketing, 9e. McGraw Hill. Kapoor, R. and Kapoor, K., 2021. The transition from traditional to digital marketing: a study of the evolution of e-marketing in the Indian hotel industry.Worldwide Hospitality and Tourism Themes,13(2), pp.199-213. Nguyen-Ducandet.al.,2020.FundamentalsofSoftwareStartups.SpringerInternational Publishing. Shahab and et.al., 2018. Entrepreneurial self-efficacy and intention: do entrepreneurial creativity and education matter?.International Journal of Entrepreneurial Behavior & Research. Singh and et.al., 2022. Investigating the impact of full-term experiential learning project on management graduates: an emerging economy perspective.Review of International Business and Strategy. Steininger, D. M., 2019. Linking information systems and entrepreneurship: A review and agenda for IT‐associated and digital entrepreneurship research.Information Systems Journal,29(2), pp.363-407. Visser, M., Kloos, M. and van den Anker, G., 2019. Customer acquisition: digital branding. InDigital Marketing Fundamentals(pp. 162-208). Routledge. Widarni,E.L.andBawono,S.,2020.FundamentalsofInternationalHumanResource Management:TheBasicStrategyofOptimizingMultinationalOrganization Performance. BookRix.