Sip and Savour Cafe: Startup Business Plan and Marketing Strategy

This report outlines a business plan for a cafeteria named "Sip and Savour" in London, UK, focusing on healthy and tasty food and beverages. The plan includes a business idea centered around a modern, technology-driven cafe environment, leveraging digital payment methods and social media marketing. It details the owner's skills and experience, emphasizing communication, time management, and problem-solving abilities. The report incorporates a PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors, and a SWOT analysis, identifying the cafe's strengths, weaknesses, opportunities, and threats. Furthermore, it includes a competition analysis against Costa Coffee, an industry analysis based on Porter's Five Forces, and a target market segmentation strategy. The marketing plan is structured around the 4Ps (Product, Price, Place, Promotion), ensuring a customer-centric approach to capture market share and establish a competitive advantage.

Starting a business and
fundamentals of
marketing

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
management skills, problem-solving skills, decision-making skills, critical and analytical
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.

Section 2 Research Presentation
Pestle Analysis
Pestle Analysis is 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
should frame certain strategies to overcome such challenges and run its business
smoothly.
 Social factors: These factors include health consciousness, taste and preferences,
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:

Basis Sip and Savour Costa Coffee
Products Pasta, coffee, pizza, cake, pastries,
pattize, tea, lemonade, mojito, etc.
It offers mainly coffee in different
forms like Espresso, latte, mocha,
cortado, etc.
Promotional tools Social media marketing, online and
offline advertising.
Television advertising, digital
marketing, etc.
Pricing strategy Competitive pricing strategy is
followed to offer products.
Premium pricing strategy is
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
industry such as Coffee Republic, Costa Coffee, etc. that creates high threat of
competition for organisation.
 Threat of new entrants: In context to Sip and Savour, there is low threat of new entrants
within food and beverage industry as UK government has framed certain trade
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 is low
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
moderate threat 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 is moderate threat of substitutes for Sip and Savour as its
competitors are offering them at less price in comparison to respective cafe.

Target Market (including segmentation criteria employed)
Marketing model of STP helps in segmenting markets, targeting market-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
within niche market through using promotional tools like direct marketing, 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:
Product The products offered by Sip and Savour include cakes, pastries, pasta,
pizza, sandwiches, tea, coffee, juice, shakes, mojito, pattize and many
more.
Price Cafe follows competitive pricing strategy while offering its products to
customers for gaining competitive advantage.
Place Sip and Savour is offering its food and beverages products through
offline mode as it has only outlet where it sells its products.
Promotion The promotional tools used by Sip and Savour include social media
marketing, digital marketing, offline advertising, sales promotion and
direct marketing.

REFERENCES
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