BMM3013 - Business Plan: Marketing Strategy for a New Buffet Cafe

This report presents a business and marketing plan for a new venture called Buffet Cafe, focusing on establishing a presence in the competitive UK market, specifically in Liverpool. The plan includes a PESTLE analysis, SWOT analysis, competitive analysis, and Porter's Five Forces analysis to assess the external and internal environments. The report also identifies the target market using the STP model (Segmentation, Targeting, and Positioning) and outlines a marketing plan based on the 4Ps (Product, Price, Place, Promotion). The objective is to provide high-quality food and beverage offerings, build customer loyalty, and achieve a strong competitive advantage against existing players like Starbucks and Costa Coffee by implementing effective marketing strategies and leveraging technology.

Starting a business and
fundamentals of
marketing

Table of Contents
Section 1...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Section 2...........................................................................................................................................3
MAIN BODY...................................................................................................................................3
Pestle analysis of Buffet Cafe......................................................................................................3
Competition analysis of Buffet Cafe............................................................................................5
Industry Analysis of Buffet Cafe (Porter's Five Forces)..............................................................5
Identification of target market (STP model)................................................................................6
Marketing plan.............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

Section 1
INTRODUCTION
Business is an organisation in which people work together in order to achieve a common
goal of profit maximisation by satisfying the needs of the customers. This present report is based
on starting a new business and key issues surrounding in setting up of a new business. Within
this portfolio, the chosen industry to start a new business is food industry and the cafe will be
operated in the respective industry. Buffet Cafe is taken into consideration as a name of the new
business in which various types of eatable products and services are offered (Ahmad, Bakar and
Ahmad, 2018). This new business is selected for the market entry in highly competitive market
of UK in Liverpool city. To start such type of business, a lot of skills, knowledge and
experiences are required. The skills needed to start this type of business are decision-making
skills, problem-solving skills, leadership skills and many more. Personnel should have skills to
select appropriate crockery, utensils and packaging along with having knowledge regarding
developing and maintaining a profitable pricing strategy. The reason behind choosing this
business is that the respective industry is a profitable industry among the others. Cafeterias
within food industry never goes out of style and it can be a great source of extra income (Campos
and Grangel, 2018). This business would also offer various managerial experiences and is
flexible in nature so it is selected as a new business in this existing report.
Section 2
MAIN BODY
Brand name: Buffet Cafe
Tag Line: Sip and Savour
Mission: To provide distinct variety of food with superior quality to our potential customers.
Vision: To enhance profit margin and customer loyalty
Products and services: Coffee, Pasta, Pizza, Brownie, Burger, Sandwich, Donuts, Cupcakes,
Macrons and many more.

Pestle analysis of Buffet Cafe
This tool helps in analysing the impact of macro-environmental factors that impacts the
operations of an industry and also facilitates in understanding the influence of trade dynamics on
performance of business. The pestle analysis of Buffet Cafe is described as below:
Political factors: Within UK, Covid-19 is leading factor that can impact the operations
of respective business (Daou and et.al, 2020). Because of this pandemic situation, government of
UK has made certain guidelines such as social distancing, sanitizing, etc. So business can be
negatively impacted if it does not adhere rules and regulations of government and can be
penalised for this.
Economic factors: As per above scenario, Buffet Cafe is operated in UK where economy
is stable and market-oriented. However, due to pandemic situation, economic lockdown greatly
influenced operations of business within country. Sale of the business can be lowered because of
spreading of this infectious disease and it can negatively affect business performance.
Social factors: Taste and preferences of consumers are frequently changed and this can
positively impact the operations of Buffet Cafe. As the respective business will be offering a
variety of its products such as pasta, pizza, sandwich, coffee, shakes, burger and would satisfy its
customers by providing the products at superior quality.
Technological factors: Utilization of technology is extending nowadays at a rapid rate
and technological environment of UK is highly upgraded and developed. So it can positively
impact functioning of Buffet cafe as respective business is using updated technology such as
automation and upgraded machines to prepare food.
Legal factors: These type of factors are associated with jurisdictional legislations as well
as laws and legislative system of UK has made certain laws such as consumer law, trademarks,
employment law and many more (Deepak and Jeyakumar, 2019). When Buffet Cafe will adhere
such types of laws and legislations and work in an ethical environment then it would be
positively influenced. This would facilitate company in building its brand image and customer
loyalty.
Environmental factors: In context to Buffet Cafe, respective business can use electric
vehicles for delivering its services door to door. Such vehicles emit less pollution to environment
that would facilitate in attracting more customer-base and positively impacts functioning of
business.

SWOT analysis on the basis of Pestle analysis:
The model of SWOT analysis assists in examining the internal environment of a
company in terms of strengths, weaknesses and associated opportunities as well as threats for
business. Buffet Cafe would use this tool to analyse various opportunities that are available at
marketplace. SWOT analysis of Buffet Cafe on the basis of PESTLE analysis is mentioned
below:
Strengths- It is major duty of a business to identify its strengths by taking advice of
professional strategic management (Eggert, Kleinaltenkamp and Kashyap, 2019). Major strength
of Buffet Cafe is that it is providing a wide variety of services which helps company to capture a
large number of target-base which would result in high profit margins within business.
Weaknesses- This factor creates loopholes and challenges in a business in order to
survive at marketplace. Major weakness of Buffet Cafe is maintenance of precise culture of
business. Enterprise should maintain effective culture with the help of human resource
management in order to develop effective employee productivity. The business must focus on the
products and services of the rivalries in the existing market as it will help the organisation in
gaining competitive advantage.
Opportunities- Major opportunity available for respective enterprise is use of
information and technology in its operations for achievement of business objectives and goals
effectively (Zagar and Draskovic, 2020). Organisation can use advanced technologies and
machines for development of better and quick operations regarding food and accounting system
within business.
Threats- High level of competition can be a threat for business. Competitors of Buffet
Cafe would be Starbucks, Costa Coffee and can become major threat for respective company. In
order to face competitors, Buffet Cafe should take help of top and strategic level management in
order to gain competitive advantages over rivalries in market.
Competition analysis of Buffet Cafe
There are several competitors of Buffet Cafe within UK such as Starbucks, Costa Coffee
and many more. In order to gain competitive advantages, the respective organisation should
frame marketing strategies that would help the business in maximising its sale. The organisation
must know about the products and services of its competitors that would help it in making
differentiated products. Buffet Cafe should set up its marketing practice by promotion of its

products through social media, online and offline advertisements. The business can improve its
customer service for staying ahead of competition in the market.
Industry Analysis of Buffet Cafe (Porter's Five Forces)
The model of Porter's Five Forces facilitates a business concern in determining the
internal weaknesses and strengths that assists in framing new marketing strategies for expansion
of profits within business. Buffet Cafe should use this framework because it would help business
to analyse the influence of the respective forces of the model on performance of cafe. In context
to Buffet Cafe, the five forces of this model are explained as below:
 Threat of competitive rivalry in market: This type of force facilitates in evaluating the
number of rivalries within the market-place and their impact on business enterprise.
Buffet Cafe is operated in an intense competitive marketplace that is having numerous
competitors like Starbucks, Costa Coffee, etc. at a very large scale (Matalamäki and et.al,
2020). It would be a high threat for respective business and to gain competitive
advantages, organisation should keep its prices low for sustaining in this competitive
market.
 Threat of bargaining power of customers: The customers within the market-place have
power in every business industry to drag the prices downwards if they are large in
quantity and the organisation should invest more money to its business for capturing new
market-share. Buffet Cafe could have favourable relationships with its market-share as it
can offer differentiated items of food and beverages that facilitates the respective
organisation to maintain loyalty of customer-base towards business. Hence, there is low
threat of bargaining power of targeted-audience for Buffet Cafe in comparison to
competitors in the market.
 Bargaining power of Suppliers: In context to Buffet Cafe, several number of suppliers
are available which facilitates a business for offering its prices rather than accepting the
offers of suppliers (Vlassi and Papatheodorou, 2020). Therefore, the threat of bargaining
power of suppliers is low in context to Buffet Cafe.
 Threat of new entrants into industry: Less restrictions, rules and barriers of the
political system of the country would be very easy to a new entrant for taking entrance
into the market. It would be high threat for Buffet Cafe because the new entrant can bring
innovative products that can capture a large number of customers.

 Threat of substitute products: The force of substitute products provides assistance to
organisation to analyse the impact of substitute commodities in business (Memon, 2020).
Rivalries of Buffet Cafe like Starbucks, etc. have still emerging with a wide variety of
products that are substitute and is high threat for the respective organisation.
Identification of target market (STP model)
STP assists in determining segmentation, positioning and searching the audience for
targeting that facilitates a market to be served in a successful manner. By using this model,
Buffet Cafe should make different segments of the market and should find the most attractive
and the best segment of the market that is to be targeted can be searched by organisation. The
model of STP model involves three various levels which are explained as under in context to
Buffet Cafe:
Segmentation: It is a method in which necessities of all segments are homogeneous by
nature and hence, strategies of marketing are formulated for a particular segment of the market
for concentrating its related benefits benefits and features needed. In relation to Buffet Cafe,
organisation can divide its business in different market segments such as geographical area,
customer preferences and many more. In order to make segmentation possible, Buffet cafe is
required to understand geographical structure of UK.
Targeting: It is a method of searching the best as well as most attractive segment of the
market among the different stages of segmentation(Michael, 2018). Targeting helps respective
business in recognising which market segment must be targeted and can frame comprehensive
strategies of marketing. To make effective segments of the market, it is to be make sure by
Buffet cafe that every segments should be measurable, profitable, different and accessible. The
process of targeting facilitates the organisation to analyse the size and growth of each group of
the market segment through comparing those segments of the market. Within Buffet Cafe, the
segment which is targeted can be location as business should expand its organisational
operations in different locations even at international markets too.
Positioning: In positioning stage, goals of an organisation frames big concepts in minds
of the potential customers rather than the competitors which are active within the market-place.
Buffet Cafe is required to evaluate marketing channels in order to enhance the presentation of its
products such as pasta, pizza, coffee and many more. The organisation can promote its products
through social media, digital marketing, online and offline advertising and many more.

Marketing plan
Marketing Plan is defined as a strategy that a business follows to advertise and promote
its products and services to the target market for attaining the goals of the organisation. It
narrates the operations of business which are engaged in achieving objectives of company within
predetermined schedule and involves representation of existing position of business (Pop, 2019).
In context to Buffet Cafe, organisation should design its marketing plan because it helps business
in deciding how it can sell its products to its customers.
Objectives: The primary objective of the organisation is to provide products at superior quality
to capture more of the target-base by fully satisfying them.
Action Plan:
Buffet Cafe is prepared an action plan which is based on the 4Ps of marketing mix and is
explained as under:
Product: Buffet Cafe deals with a wide variety of products and brings unique food items
within the market such as cheese cookies (Terziev and Arabska, 2017). The business can be
expanded in future by making innovative food items and specific marketing strategies to sell
those products.
Price: The respective organisation can use Penetration pricing strategy in which targeted
audience can be attracted by the new product offered initially at a lower price by the human
resources of the organisation.
Place: Buffet Cafe would be initially situated in Liverpool city of UK and offer its
services through direct channel (Rusconi, 2019). The business must think of to expand its
business at other geographical locations also and they should offer their food products through
online mode so that it capture more of its target-base and can reach out to them.
Promotion: The respective organisation must highlight the unique or special features and
benefits of its food items while promoting it. Human resources of company can promote its
products by advertisements, word-of-mouth, sales promotion, digital marketing, social media and
many more.
Forecast:
Forecasting is done on the basis of analysing present and past information of the
marketplace. It not only helps Buffet Cafe in finding opportunities in market but also can prepare
organisation in facing the challenges that will come in future such as dearth in resources,

infrastructure issues, security and cross-border regulation, etc. (Syam and et.al, 2018).
Throughout this stage, an estimated budget can be designed by business that will provide it an
idea for using resources up to maximum level. The budget for same purpose is designed under:
PARTICULARS Amount(£)
Trainer 200, 000
Equipments 400000
Marketing 50,000
Safety measures 50,000
Total 700000
CONCLUSION
From above explanation, it is concluded that business plan is an essential tool for any
business to gain the competitive advantage over the competitors in the market-place. Through
understanding the fundamentals of marketing, an organisation can easily achieve its success and
attain its objectives in an effective manner. Within the above explained report, a business has
started up in the food industry. The macro-environmental factors that would affect the
functioning of business are discussed in this portfolio and along with it SWOT analysis is also
conducted on the basis of this pestle analysis. Analysis of respective industry is also done
through Porter's Five Forces that would help business in gaining competitive advantage.
Furthermore, STP model is also taken into consideration for targeting the market segment and a
marketing plan is designed that would help company in staying ahead of competition in market.

REFERENCES
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