Business Plan and Marketing Fundamentals for Coffee Cafe: Analysis

This report provides a comprehensive business plan analysis for Mr. Happy Coffee Cafe, focusing on their innovative product: coffee cocktails with multivitamins. The report begins with an introduction to business plans and outlines the proposed business idea. It then delves into an evaluation of the external environment using PEST analysis, examining political, economic, social, and technological factors. The analysis continues with an assessment of the competitive landscape, highlighting the cafe's competitive advantages. The report also explores market analysis, including Porter's Five Forces, and concludes with a discussion of the STP model (segmentation, targeting, and positioning) to identify the proposed target market. The report emphasizes the importance of innovation and adapting to market trends for business success.

Starting a Business
and Fundamentals
of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
ASSESSMENT 1.............................................................................................................................3
Overview of proposed business idea...........................................................................................3
Evaluation of external environment............................................................................................4
Competition and competitive advantage.....................................................................................5
Suggestion for proposed target market.......................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business plan is the document which summarise operational as well as financial
objectives of business. It addition to this, business plan contains detail planning and budget
which shows that how objectives are to be realized (Baldelli and et. al., 2018). This report is
based on Mr. Happy coffee Cafe who is coming up with some innovative product in market area
i.e., coffee cocktail with multivitamins. Respective project will going to discuss proposed
business idea along with external evaluation by conducting PEST. In addition to this, it will
going to analyse level of competition for respective coffee cafe and their competitive advantages.
In the end of report, STP model will implement for targeting market.
ASSESSMENT 1
Overview of proposed business idea
Business idea is concept that can be utilise for commercial purpose. In simple term it can
be said that business idea is typically centred around commodity as well as as services which
sold in exchange of money (Karki, 2018). For continuing an business idea there is requirement to
design business plan because it is an written which lay out plan from marketing, financial as well
as operational viewpoint. Along with this, it help in laying out its goals and objectives as well as
attract investment. In other language business plan is road map which give direction to business
firm so that company can plan its future. Along with this, it help in avoiding bumps in the road.
This report will going to design business plan for Mr. Happy Coffee Cafe which is
bringing their innovative product in market i.e., Coffee Cocktail with Multivitamins. Respective
Coffee Store is offering variety of products such as Sandwiches, Burgers, Pizza, coffee, shakes
and many more. There product is innovative which help in attracting large number of customers
from market area (Barnes, 2019). Now a days people are getting more health conscious in
respect of this company is offering this Coffee cocktail with Vitamins which help in grabbing
attention of people at wide level. Business environment is dynamic in nature in relation to this it
is important for business firm to be innovative because this is the only way by which company
can sustain in market for long term.

Evaluation of external environment
Business environment is classified within two i.e., external and internal environment. For
an organisation it is necessary to conduct external analysis while coming up with something new
and innovative in market area (Hatten, 2018). PEST analysis is measurement tool which utilise
for assessing market for specific products or business within given time frame. Here, PEST
stands for political, economic, social and technological factors. For evaluating external
environment Mr. happy Coffee Cafe will implement PEST analysis because they are bringing
Coffee Cocktail with multivitamins. Explanation of this are as follows :-
 Political – This factor cover several aspects such as government policies, legislations as
well as foreign influences. All these factors play important role in working of Mr. Happy
Coffee cafe so it is important for company to ensure that they are following all rules as
well as regulations which are imposed by governmental bodies (Borangalievna, 2018). In
case of respective coffee cafe, business firm have to ensure that they always adhere to
imposed policies and make sure that goal of organisation achieved without disobeying
such policies. Whenever company is having changes as they are coming up which
innovative product i.e., Coffee Cocktail with multivitamins. Company have to make sure
that all rules and regulation are set as well as they are following it.
 Economic – There are several economical factors which may affect working of Mr.
Happy Coffee cafe is inflation rate, import laws as well as exchange and interest rates.
Thus, respective Coffee Cafe import Coffee from several nations so it is important for
them to be aware about changing imports laws because it may hinder their importing.
Along with this, increasing as well as decreasing inflation rate may affect buying power
of buyers. In addition to this, Demand and price curve both are related to each other if
there is increase in demand of coffee its price also get increase. Whereas, with decreasing
price demand of coffee also reduce. Thus, it is important for Mr. Happy Coffee Cafe to
be very careful while pricing their offering as it should be according to consumption rate
within market (de Vries and Moscato, 2019). Apart from this, Coffee Demand will
increase when its substitutes such as cold drink, tea, juice and shake price get increase as
well as with increasing income of customers also result in enhancing Coffee Demand.
Whereas, there are several reasons behind decreasing Coffee demand such as price of
substitute decreases along with income level of customers.

 Socio-cultural – In all the elements of wider market environment Socio-cultural is
probably greatest challenge. As it involve people's basic beliefs, attitudes as well as value
which are shaped by society in which they are growing. Major impact of respective factor
on Product of Mr. Happy Coffee Cafe could be modification within trend, taste of
customers, people can change their preferences (Said, 2018). Thus, it is important for
respective Coffee Cafe to be update with changing trends within business environment.
 Technological – This factor is major environmental influence on marketing department
of an organisation. Technological factor not only affect operations as well as product of
company but also consumer's lifestyles and their consumption patterns. Thus, it is
important to be aware about impact of technological changes on business firm. In case of
Mr. Happy Coffee Cafe impact of technological change is not relevant but still they have
to consider it competitors approach towards technology for keeping it up-to-date.
SWOT Analysis
Strength Weakness
 It is said that the major strength of the
product is that it includes benefits of
multivitamins which is quite healthy
and unique products at the competitive
marketplace.
 Apart from the strength, weakness of
the product which is coffee cocktail is
that it is every individual have their
own taste, preferences, requirement and
need which are different from each
other. This might reduce the
effectiveness of product at the
competitive marketplace.
Opportunities Threat
 With the help of such innovative
products and services, large number of
customers will be attracted towards the
products. This as a result increase the
overall profitability of the company at
the market area.
 There are number of substitutes
available at the marketplace which
might create threat for the company.
Due to availability of large number of
competitor products, company bear loss
of profitability.

Competition and competitive advantage
Business environment is full of competition because in this every sector have numerous
organisations who are offering substitute of each other. This practices result in increasing
competition for business firm who are working within business environment. In case of Mr.
Happy Coffee Cafe level of competition is high for them because they are offering Coffee as
well as fast food which several other firms are also offering in market. Thus, for gaining
competitive advantages respective company bring innovative product i.e., Coffee Cocktail with
multivitamins (Dixit and Kesarwani, 2018). As people are becoming more health conscious now
a days and started avoiding such eatable or drinkable products which are harmful for them. In
relation to this, respective Coffee cafe gain several competitive advantages after bringing their
innovative products within market area such as large number of customers, enhancement in
sales, high profitability and many more.
Thus, respective Coffee cafe is gaining competitive advantages within business
environment with the assistance of their innovative product i.e., Coffee Cocktail with
multivitamins.
Market analysis
It is said that for examining the competition of level it is said that managers adopt Porter
Five Force model. With the help of this method, Mr. Happy Coffee Cafe will be able to identify
the current market competition so that effective plans and policies will be developed.
Competitive Rivalry: It has been said that the level of competition is high at both national
and international level where ample number of companies perform their business. It is
considered as one of the most effective factor which need to be examined by the management
team of the company before launching new product at the marketplace.
Threat of Substitutes: Apart from this, this is the another element which is considered
high as there is large number of substitutes available at the marketplace which affect the overall
profitability of the company. Therefore, it is required by the management team of Mr. Happy
Coffee Cafe to examine the available substitutes so that they can develop their product different
from the competitors which help them in gaining more profitability.
Bargaining Power of Buyers: In this context, purchasing power of buyer is quite high as
there are various options available for the individuals. It is said that, buyers examine all the
substitutes available at the marketplace before purchasing products. If customers get low procise

and high quality products from other company then they will easily switch the company. This
might reduce the overall profitability and market share of the company.
Bargaining Power of Suppliers: In this context it has been said that bargaining power of
suppliers are low as there are huge number of suppliers available at the marketplace. Raw
material which is required by the company can easily be collected which reduce the overall cost
of the company. Therefore, it is said that due to low cost of switching, bargaining power of
suppliers are considered low.
Threat of New Entrants: It has been said that threat of new entrants are quite moderate
as there are requirements of huge investment in order to establish a coffee house. It is considered
by the management team of the company to identify level of competition so that they can
develop strategies and policies effectively before launching new product available at the
marketplace.
Suggestion for proposed target market
It is important for Mr. Happy Coffee Cafe to target market while coming up with their
innovative product in market area. In relation to this, STP model will be implemented by
company as it is important procedure which help in study and application of marketing. Here,
STP stands for segmentation, targeting and position. Respective process demonstrate link within
overall market as well as how organisation chooses to compete within that market. In addition to
this, goal of STP process is to guide company in development as well as implementation of an
appropriate marketing mix. Explanation of this in relation to Respective Coffee Cafe new
product i.e., Coffee Cocktail with multivitamins are as follows :- Segmentation – It is the process in which company divide their broad market segment
which consisting existing as well as potential customers which are based on common
denominator (Ezeonwurie, 2018). There are mainly four type of segmentations, first is
demographic which include variables such as age, gender, income, education, location,
ethnicity, language and family size. Second is psychographic variable these are lifestyle,
social status and many more. Third is behavioural aspect which is based on uses of
product such as light, medium and heavy. Last is distribution variables which means how
consumer purchase products from store, online etc.. In relation to Mr. Happy Coffee Cafe
they are more directed to urban people in major cities within developed as well as

developing nations. Where people have awareness and high buying power for soft drinks
and fast food. After that they will make these products as their lifestyle. Target – After identifying customer segment next step is targeting because not every
segment is attractive for business equally. Thus, target is second phase of STP model
which figure out customer segment which will be suitable for business firm interest.
While targeting customers several factors to be considered such as
profitability,accessibility, size and growth potential. In relation of Mr. Happy Coffee
Cafe, both men and women are targeted of age group teenagers as well as adults
(Hinnenkamp, 2018). In addition to this, Coffee Cocktail with multivitamins is in
affordance of every person such as private employees, professional, business person as
well as for those who have energetic lifestyle. Because people are more health conscious
now a days and they focusing on consumption of such products which are healthy for
them. Target market of Mr. Happy cafe is decided on the basis of income level which is
both upper as well as middle class.
 Positioning – It is last step in which company present their products to different segment
of targeted market. Main goal of effective positioning is to offer particular market
segment something bigger, better, strong as well as more valuable in comparison of what
competitors are offering (Kurtz, 2019). In case of Mr. Happy Coffee cafe, they are taking
better position within market area through advertising, using good quality raw material,
consumption safety for consumer's health, maintaining product quality, offering coffee
cocktail at competitive and affordable price. Through all these major factors respective
company will be able to gain good position within market area along with competitive
advantages.
Thus, Mr. Happy Coffee cafe target market is urban people within developed as well as
developing cities and who are found of soft drinks and fast food. Along with, teenage and adults
because they are more conscious about health as well respective company's offering is Coffee
Cocktail with multivitamins (O’Brien, 2018). In addition to this, there is requirement of getting
position within market which company is taking by conducting advertising, using good quality
raw material, consumption safety for consumer's health, maintaining product quality, offering
coffee cocktail at competitive and affordable price.

CONCLUSION
After going through entire discussion it has been summarised that business plan is
important for an organisation as it is document which summarise operational as well as financial
objectives of business. It addition to this, business plan contains detail planning and budget
which shows that how objectives are to be realized. Moreover, while designing business plan it is
necessary for an organisation to conduct external analysis because it help in identifying all
positive as well as negative aspects which may impact on operations of company. Thus, for
analysing or evaluating external market company use PEST framework within their work.
Furthermore, there is requirement to analyse external factor on timely basis as business
environment is dynamic in nature several modification take place within this on regular basis. It
is also important for company to set target market when they are coming up with new product.
Thus, for targeting market Mr. Happy Coffee Cafe will use STP model hereby it stands for
segmentations, targeting and positioning.

REFERENCES
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Driving Traffic to Enhance Business Performance. In Driving Traffic and Customer
Activity Through Affiliate Marketing (pp. 81-100). IGI Global.
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Advantage. SAGE Publications.
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O’Brien, J., 2018. Establishing a retro-marketing rental company: VW Kamper case study. The
International Journal of Entrepreneurship and Innovation. 19(2), pp.125-133.
Said, A. R., 2018. Five Plus Two” Skills Set and Success of Young Art Entrepreneurs.
IDEALOGY, 3(3), pp.247-260.