Market Analysis and Business Strategy for a University Café

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Business Essentials
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Table of Contents
Introduction..............................................................................................................................................3
Task 1........................................................................................................................................................3
Part A.....................................................................................................................................................3
Part B.....................................................................................................................................................4
Task 2........................................................................................................................................................5
Task 3........................................................................................................................................................7
Part A.....................................................................................................................................................7
Part B.....................................................................................................................................................8
Task 4........................................................................................................................................................9
Part A.....................................................................................................................................................9
Part B...................................................................................................................................................10
Conclusion.............................................................................................................................................11
References.............................................................................................................................................12
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Introduction
An entrepreneur has to consider a lot of things when he is planning to set up a
business. It is a myth if a person has adequate capital, he can easily start a business,
but it is not entirely true. There are a lot of factors that influence the startup. These can
be categorized as External & Internal.
Task 1
Part A
The business idea is to open a Café near the University. The café will be opened in an
area that is close to the university campus as well as the hostel. After a lot of research,
we had found that there are lot of food trucks which are located near the university.
These provide food on the go to the students, but it is mostly fast food. The aim of our
café is to serve the students healthy food, along with some fast food. We want to
provide a hang-out space for the students which they can use during and after the
classes.
According to us, the café is something that attracts young students. It is observed that
college going students does not have money to spend on multiple things, therefore we
will provide them food at affordable prices. We will also deliver food to students staying
at the hostel. Our main competitors are the food trucks, and to compete with them we
are providing comfortable ambience to the students with proper seating arrangements,
so that they can relax, eat and study at the same time (Amit and Zott, 2015). Few of the
competitors are:
Points of Service Competitors Us
Food Most Food trucks are Healthy as well as Fast
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providing Fast Food of
different cuisine
Food of all cuisine.
Ambience No such seating
arrangement
Contented seating
arrangements as sofas
and bean bag.
Price Upto £ 30-50 Upto £ 80
Additional Service No services We will provide home
delivery to the apprentices
staying in accommodation.
Time Operational till college
timing
Operational till 9 PM.
Part B
Every organization has certain objectives to fulfill. These are not just not limited to
making profits, but they also want to build their customer base, so that when they
expand it, these customers will help in referring new customers. Few objectives of the
business are:
 To provide healthy food to the students, so that they do not miss their
home The objective of the business is to provide homely feeling to the students
by offering healthy and affordable food to them (Palattella, et.al., 2016).
 To provide all cuisine of food so that students of every nationality can
access There are various students in the university that belong to different
countries. The café will deliver food of different cuisines that will satiate the
appetite of the students.
 To open a place that will be ideal for hang out for the students Back to back
lectures can become little tough for the students. This may want them a place
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which is near to the campus and where they can relax in groups or individually
(Saebi and Foss, 2015). Here they can study in the evenings.
 To take advantage of the options that are not yet explored by the
competitors The other food business that is located near the university lack in
providing certain services. This will aid as advantage to the business. It will set
up grounds for the unexplored territory and will be beneficial in generating
customer base and profits as well.
For this type of business, solo ownership will be more justifiable, as indulging in
partnership will create issues regarding the timing, menu, prices and so on. Given below
are examples of coffee chain opened by individuals and are highly profitable:
 Harmony Coffee It was founded by Lorrens Sam. It is a very comfortable place
that deals in 20 cuisines. It has been running successfully since 2010 (Jones,
et.al, 2015).
 The Monocle Café It was founded by Tyler Brule, a Canadian entrepreneur. It
also offers food in 25 cuisines. It has been operating since 2009.
Task 2
It is important for every business to evaluate the external factors that can affect the
performance of the business. To do this, the business should conduct a PESTLE
Analysis. This will aid them in being aware of these possible factors and take necessary
measures:
Nature of Factor Effects
Political Any change in the laws made by the govt. related to taxation
or additional costs for new startup can have a positive and
negative impact on the set up of business.
Economic Any change in the economy, like less flow of income will also
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affect the performance of the café.
Social If there is any student community that stops the students to go
anywhere outside the university campus, then it will create a
big issue for the café (Kim and Min, 2015).
Technological With the boon in the online business system, if the café does
not provide online facilities for the students, it will take a hit on
the café business.
Legal If there is any issue regarding the place where the café is
willing to open then, the café will have to indulge in proper
legal framework to get permission for further activities.
Environmental If the methods used by the café for providing services are
negatively affecting the environment in any possible way, then
it will be difficult for the café to establish in the particular area.
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Task 3
Part A
The café is going to open near the university. The main aim of opening the cafe is that
there is a proper food facility available near the university. Food stalls are available in
the form of food bus but they are not been available for the entire day and also in the
night. They don’t have fixed time and fixed the place of their standing. For the opening,
the cafe various requirement is to be needed. The main aim of opening the cafe is to
provide the food facility within the budget and at every time. This is because the cafe is
having its fixed place of business so that students are studying at the university can be
able to gain the facility. The cafe can be opened at night also because it can provide the
facility to the student those who are living in the hostel. The cafe will help in providing
proper hygienic food to the entire student (Patten, and Newhart, 2017).
The café will provide a free delivery service and also it provides service at 24*7 so that
the student can relax and have their food whenever they want. The café is opening, it
provides various offers to the first time visitor in the café such as 50% off on the first
order, 40% off on the 2nd order and many more offer. It will also provide a facility for
sitting in the café and take their food and eat. Various types of foods are to be provided
by the cafe. It can be classified as fast food and proper meal as per the ordered by the
student (Uhl, and Gollenia, 2016).
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Part B
Budgeting is the plan which is made so that spending can be done according to the
budget which was made. It helps in showing the balance between the expenses and
revenue.
Budgeting is very much important for opening a café. It helps in finding and allocation of
the money according to the requirement of the café. Various budgets are to be prepared
according to the activities that are to be performed in launching the café (Patten, and
Newhart, 2017).
For the launching event of the café, various expenses should be done and the budget
should be made according to it.
Let’s take an example.
The total amount available is £3,000.
Following expenses occur in the launching event and al expenses are to be covered
under the fixed amount: -
Particular Amount (£)
1. Chair cost 200
2. Infrastructure cost 1,000
3. Decoration cost 500
4. Helper 200
5. Snacks 500
6. Beverages 600
Total 3,000
The above is one of the examples that show how to manage the resources so that the
need can be satisfied and work can also be completed. The total budget is £3,000
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which should be managed for launching the coffee event. All the expenses should be
covered in the above limitations of expenditure (Uhl, and Gollenia, 2016).
Task 4
Part A
Marketing Objective
The main objective of opening the café to provide a better quality of the food to the
student so they get to relax and feel safe after consuming the food. The most important
message that should be conveyed to the customer is that the product made by looking
after it and with a proper following of the instruction so that it will not harm to the
consumer. The café will provide many offers to the consumer and also the product
available in the café is at a reasonable cost so that every student can afford to buy and
consume. Surety of hygienic food will also be given to the consumer. Every product
should be properly checked regarding the quality before serving it to the customer
(Patten, and Newhart, 2017).
Target Market
The main target for establishing the café as because of lack of food facility available
near the university and the students who are studying and staying in the hostel facing
very difficulties regarding the food consumption. There is no food facility available near
and if any available they are not on a permanent basis and they are not provided food
with proper hygienic as well as not food quality. The food bus is available but they are
not staying in the night which creates a problem for the student those who are living in
the hostel (Patten, and Newhart, 2017).
Marketing Strategies
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The main target is to provide the food at its best quality as compared to the other food
available in the market. Food trucks that are not fulfilling the proper quality as well as
they not providing a clean environment for having the food. Café helps in providing
proper cleaning environment for consuming the food inside the café. The café is
opening so that student can able to take their food dining and also they can take away
for consuming it later. Proper packing of the food is been provided so that it will not get
damaged and can be easily consumed at the customer's end (Uhl, and Gollenia, 2016).
Part B
Marketing Mix
Element Description Justification
Price £200 It is just £200 because the
student can easily think to
buy it and can be easily
consumed (Min, 2015).
Product coffee Because it is liquid food
and can be easily ordered
and easily prepared as
compared to other
product (Min, 2015).
Place In the café as well as on
the online food ordering
sites
It is done so that student
can able to buy or order
the food at the place
where they want because
café is providing various
offers in ordering food
online and it should get
available at the
doorsteps.
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Promotion Providing various offers
on most of the food that is
mostly consumed.
Providing a discount on
ordering as well as free
home delivery insists of
paying delivery will help in
more consumption of the
food by the student (Uhl,
and Gollenia, 2016).
Conclusion
This report elaborates a business plan that involves opening a café in the university
campus, which provides healthy food to the students. The café will also be open in the
evening period, so that the students staying in the hostel can eat food of their wish. The
report presents various factors that can possible effect the performance of the business.
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References
 Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of
business model design. Strategic Entrepreneurship Journal, 9(4), pp.331-350.
 Bernstein, G., 2019. Understanding the Business of Media Entertainment: The
Legal and Business Essentials All Filmmakers Should Know. Routledge.
 Jones, H., Neal, S., Mohan, G., Connell, K., Cochrane, A. and Bennett, K., 2015.
Urban multiculture and everyday encounters in semi-public, franchised cafe
spaces. The Sociological Review, 63(3), pp.644-661.
 Kim, S.K. and Min, S., 2015. Business model innovation performance: when
does adding a new business model benefit an incumbent?. Strategic
Entrepreneurship Journal, 9(1), pp.34-57.
 Lewicki, R.J., Barry, B. and Saunders, D.M., 2016. Essentials of negotiation.
McGraw-Hill Education.
 Min, H., 2015. The essentials of supply chain management: New business
concepts and applications. FT Press.
 Palattella, M.R., Dohler, M., Grieco, A., Rizzo, G., Torsner, J., Engel, T. and
Ladid, L., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications, 34(3),
pp.510-527.
 Patten, M.L. and Newhart, M., 2017. Understanding research methods: An
overview of the essentials. Routledge.
 Saebi, T. and Foss, N.J., 2015. Business models for open innovation: Matching
heterogeneous open innovation strategies with business model
dimensions. European Management Journal, 33(3), pp.201-213.
 Uhl, A. and Gollenia, L.A., 2016. Business Transformation Essentials: Case
Studies and Articles. Routledge.
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