Cafepod Business Plan: Market Analysis and Pivot Strategy Report

This report presents a comprehensive business plan for Cafepod, a craft coffee company, addressing key aspects such as company description, vision, mission, values, and current strategies. It delves into market analysis, identifying the target audience and the impact of the COVID-19 pandemic...Read More

Business Plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.Company description...............................................................................................................3
2.Vision, mission and values and current strategy......................................................................3
3.Market analysis........................................................................................................................4
4.Competitor analysis .................................................................................................................4
5.Organisation and management.................................................................................................5
6. Marketing plan........................................................................................................................6
7. Financial analysis....................................................................................................................6
8.SWOT analysis.........................................................................................................................7
9. Pivot strategy and recommendation........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A business plan refers to written document which contains goals and objectives of
company, methods that will used by organisation to achieve goals and time required for
achieving those goals (Ward,2021). In the report vision, mission, values and current strategy,
competitors, financial analysis, SWOT analysis and market analysis of Cafepod is discussed.
MAIN BODY
1.Company description
Cafepod is a craft coffee company which was established in year 2011. It was founded by
Peter Grainger and Brent Hadfield with aim of bringing happiness in lives of people of London.
Its headquarters are located in London and England. Cafepod is available in major supermarkets
and customers can also buy from online retailers. Company provides various products to its
customers like, Nespresso compatible pods, ground coffee, whole bean, brunch blend, intense
roast, supercharger espresso (Hanák and Grežo, 2020). Founders of company are entrepreneurs
and their purpose is to provide quality products, customer satisfaction is important and profit
earning. Customers get quality products at reasonable price.
2.Vision, mission and values and current strategy
Vision
“ To make good strong coffee” and knowing the importance of a good cup of coffee to a
coffee lover's day.
Mission
To bring “ high quality espresso home”.
Value
Cafepod want to enter into global market.
Current strategy
Cafepod company is adopting new technology in food and beverages industry as
consumers are demanding for organic coffee products. Organisation will start producing organic
products according to need of customer and increase their profit by selling more products. After
covid-19 taste and preference of consumers is changed so company has to make changes.

3.Market analysis
Target audience
Target audience refers to a specific group of customers who wanted to buy particular
product. Target audience can be identified on the basis of age, gender, income, location and
interest. It is difficult for company to identify customers but organisation can do market research.
Target market for Cafepod company are, coffee drinkers, coffee shop lovers, people who like the
essence of coffee products (Hopp and Greene, 2018). Company target people of all the age group
who want good quality products and willing to buy new products. Company produces products
according to needs of consumers and focus on satisfying them by providing different types of
products.
How company affected by pandemic
Covid-19 has badly affected companies as some coffee shops are temporarily closed
because customers are not buying. Cafepod company was generating revenue by online selling
its product but still organisation suffer a little loss. Now company is adopting new technology for
making organic products as consumers are demanding for organic coffee. After pandemic
company's earning is reduced so to increase its sales company has to take initiative by using
additional resources and doing innovation in products. Company should make improvements in
pricing strategies and promotional methods to attract new customers. Cafepod company should
conduct market survey to identify need of consumers (Hopp and et.al., 2018).
4.Competitor analysis
Direct competitors
Top competitors of Cafepod are, Darden Restaurants, Meatheads, Yum brans and
Chuech's Chicken. All these are direct competitors and organisation has to make better products
from them and build a good image in market. Darden restaurant is a company which provides
good services and quality of products. Cafepod has to make new strategies to attract customers to
buy organic products and maintain its position in market. There are many companies that make
similar type of products, difference between them is related to price, quality and services
provided to customers.
Business model

There are generally four types of business models i.e., business to consumer, business to
business, consumer to business and consumer to consumer. Cafepod company uses business to
consumer model as organisation is directly selling products to customers and they are making
products according to demand, taste and preference of consumer (Ibidunni, Peter and Ogbari,
2017). Business to consumer is process of selling products or services directly to end users. Most
of the companies are using this B2B model to reduce cost of intermediaries.
How they affect as result of pandemic
During pandemic all organisations were affected as people are not buying product and
industries were closed. All the businesses were at same position, there was no earnings and
facing lot of problems. Now companies started again by making innovative and creative
products.
5.Organisation and management
Leadership team refers to group of members who make decisions for benefit of
organisation and complete work on time and proper coordination. Leaders help company in
achieving goals and objectives and motivate employees to perform better (Inkon, 2019). Leaders
show easy way to achieve target, set goals and develop strategy for accomplishing organisational
goals.
In Cafepod company democratic leadership is applied as employees are having right to
speak and they take part in decision making process. Leaders give some power to its members
and they can take decisions on their own when it is important. In organisation workers are free to
give suggestions and share their opinion. This leadership help company in identifying talent,
strength and weakness of individual employee which will be beneficial for organisation.
Employees are free to communicate with their seniors and team leaders.
Strength of Cafepod company is that it provides different types of products and flavours
at reasonable prices. They use various promotional strategy to attract customers like, offer
products at discount or buy one get one free scheme. Company is planning to make organic
coffee products.

Weakness of Cafepod company is that it does not provide proper training to employees
whereas competitors are providing training and development to their workers. Company should
focus on developing employees skills to increase profit of organisation (McKenzie, 2017).
6. Marketing plan
Marketing plan refers to make an overview or strategies for marketing and promotion of
product, target market, need s and requirements of customers. It describes future plans,
procedures, rules and regulations of organisation and advertisement strategies that will be used
by company to promote product and attract customers. There are four P's of marketing i.e.,
product, price, place and promotion (Sagita and Rahayu, 2019).
Product – It refers to all essential elements required at marketplace like, product should
be made according to demand of consumer. When company is planning to make new product
they should conduct market research to identify target audience and requirement of consumer.
Cafepod company is making organic products on demand of customers and investing in buying
new technology for making organic products.
Price – It refers to pricing strategy which is used by organisation to attract new
customers. Cafepod company is using penetration pricing strategy in which initially prices are
kept low or discounts are offer to attract customers. After sometime prices are increased but
benefits are provided to customers.
Place- It refers to distribution channel used by company. Products of Cafepod are
available in supermarkets as well as people can purchase through online sites.
Promotion – It is different strategies used for attracting consumers like, advertisement on
social media, newspaper, magazines, hoardings. Cafepod is giving advertisement on social
networking sites as people are more active on social sites and they are attracted towards new
products.
7. Financial analysis
Financial analysis is necessary of every organisation as it is process of evaluating
business, budgets of company, revenue generated, transactions related to finance and overall
performance of organisation. It helps investors and customers to identify current financial
position of company. Investors are investing their funds in organisation from which they will

receive good return. Customers prefer good quality products, attracted by promotional strategy
use by company.
Cafepod company generates $1.75 million in sales (USD) last year. As its products are
available in all supermarkets, quality of products is good and at reasonable price. So, customers
are attracted towards it and sales of company is increased (Tokarski, Tokarski and Wójcik,
2017). Organisation is planning to expand its business by making more new and innovative
products which will be beneficial for customers. Company will also make changes in its
marketing strategy and give more training to workers.
Affect on organisation after pandemic
After the pandemic each and every organisation is affected as there was no labour to
manufacture products or use technology and customers were not buying products. So, sales of
Cafepod is decreased during covid-19, after pandemic they start manufacturing products but
people are not buying products from stores or supermarkets. Company is selling its products
online so revenue is not much affected but organisation suffer loss. Investors of Cafepod
withdraw their amount because they were not getting good return due to pandemic. Now it is
difficult for organisation to find new investors. Owners, board of directors, managers, employees
all these are affected by pandemic as they did not get salary on time and no profit was earned by
organisation.
Company generate revenue by selling its product online and finding investors to invest in
organisation. It will take some time to recover loss but company is planning to produce or
manufacture new and innovative organic coffee products (Turner and Endres, 2017).
8.SWOT analysis
Strength of Cafepod is that their coffees are crafted and roasted to different levels and
taste of coffee is so tasty that no other company can produce similar to that. Products are
available in almost all supermarkets and online. They are making innovative coffee products and
packaging is good which attracts customers to purchase (Chopra, 2017).

Weakness of company is that competitors are focusing more on employee development
whereas Cafepod doesnot focus on providing training to employees. All employees are having
right to give suggestion this sometimes create conflicts.
Opportunities for Cafepod is it can expand its business in other countries by selling
organic and other products. Distribution channel will help company in expanding business and
increasing sales.
Threats for company are competitors that are using different strategies to increase their
sales. Company should face all challenges and find solutions.
9. Pivot strategy and recommendation
Company should make improvements in strategies to cover losses and focus on future
growth of organisation. During pandemic employees were not having any work as there was no
production.
Recommendation for Cafepod are: Organisation should give training to employees in
their free time so that they can work better in the future. Individual performance of workers
should be measured and necessary steps should be taken for their development. Company can
utilise their free time in improving areas in which organisation is lacking from its competitors.
Members of organisation should make plans for future growth of company and how to earn more
profit.
Organisation is having opportunity as government is providing loan to small businesses
for improving their business after pandemic. There are some loan schemes that are provides to
small organisations such as, coronavirus business interruption loan schemes (CIBILS), covid-19
corporate financing facility and other schemes. These will provide funds to organisations at low
interest rate and for long time. Cafepod can take loan as investors withdraw their funds, company
need money to invest in buying the latest technology for making new products.
Organisation should make good relations with suppliers so that raw material can be
purchased at low prices or amount can be paid to suppliers after sometime. Cafepod should fix
some suppliers that will supply raw material to organisation and price should be decided so that
there be no conflicts. Company can save their money by purchasing material at low price.

Companies should make necessary changes in strategy as soon as possible to get work on
track and organisation can increase sale of products. Cafepod should make new goals and
objective or some modifications should be done that match with vision and mission. Proper
utilisation of resources should be done by employees and there should be minimum wastage as
resources are scarce.
Employees should try to reduce waste, use resources efficiently and effectively. In less
resources more products can be manufactured but quality should be maintained by organisation.
Managers of Cafepod should try to reduce cost of production and increase profits.
After pandemic prices of raw material is increased, employees want that their salary
should be increased and technology cost is also high. Organisation should take initiatives and
makes changes that are beneficial for organisation.
CONCLUSION
From the report it can be concluded that, Cafepod is affected by pandemic and take
necessary steps to increase their business. Organisation is making plans to produce organic
coffee products and for purchasing the latest technology company can take loan from
government and continue their business. Strength, weakness, opportunities and threats are
discussed in the report.

REFERENCES
Books and Journals
Chopra, K. N., 2017. Modeling and Documentation of Business Plan by Optimization of the
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Hanák, R. and Grežo, M., 2020. The effect of entrepreneurial experience on the quality of a
business plan proposal in applying for angel investment. International Journal of
Entrepreneurial Venturing. 12(6). pp.617-647.
Hopp, C. and Greene, F. J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management
Studies. 55(2). pp.320-351.
Hopp, C., and et.al., 2018. Revisiting the influence of institutional forces on the written business
plan: a replication study. Management Review Quarterly. 68(4). pp.361-398.
Ibidunni, A. S., Peter, F. and Ogbari, M., 2017. ENTREPRENEURSHIP EDUCATOR'S
COMPETENCEON UNIVERSITY STUDENTS’COMMITMENT TO LEARNING
AND BUSINESS PLAN WRITING. Academy of Strategic Management Journal. 16(2).
pp.1-10.
Inkon, K., 2019. A cross-sectional study on the relationship between business plan, entrepreneur
type, development stage and profitability of US SMEs. Academy of Entrepreneurship
Journal. 25(1). pp.1-21.
McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: Experimental
evidence from a business plan competition. American Economic Review. 107(8).
pp.2278-2307.
Sagita, V. V. and Rahayu, W. P., 2019. Developing performance assessment-based authentic
assessment of business plan subject. Jurnal Pendidikan Ekonomi Dan Bisnis
(JPEB). 7(1). pp.31-46.
Tokarski, A., Tokarski, M. and Wójcik, J., 2017. The Possibility Of Using The Business Model
Canvas In The Establishment Of An Operator'S Business Plan. Torun Business
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Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
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Online
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