Business Plan for Casto Coffee: A London-Based Coffee Shop

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CREATE A BUSINESS

Table of Contents
Task 1......................................................................................................................................................2
Part A..................................................................................................................................................2
Part B...................................................................................................................................................2
Task 2......................................................................................................................................................3
Task 4......................................................................................................................................................4
Task 5......................................................................................................................................................6
References...................................................................................................................................................8
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Task 1
Part A
Food and beverage products are massively consumed by people. Setting up a food and beverage
outlet should be a very good plan. Casto Coffee will provide several types of coffee products
with some pastries and cookies items to the people. Coffee products are very popular in the UK.
The products of Casto coffee can be able to fulfill the demand of the customers. Casto coffee will
provide its products through its outlet and online sources. The city of London has been chosen
for the first outlet of Casto Coffee. In London, engagement of people in very high compared to
another city of the UK. Food and beverage industry is one of the largest industries across the
world. Casto Coffee will provide several types of coffee products to satisfy the needs of the
customers. The main strength of Casto Coffee is its innovative products such as magical unicorn
latté, rainbow magnum, and sin-bin coffee. The main reason for introducing coffee outlet is to
provide innovative coffee products to the customers. It is not very easy to provide a challenge to
the other coffee makers in London. But, the innovative products of Casto Coffee can be able to
hold the food and beverages market in London. Several coffee design machines have been
undertaken for designing coffee products (Palo, 2018). Multiple colors will be used in the coffee
mugs to attract the views of the customers. Online delivery service can enhance organizational
operations very effectively. Local customers can be able to enjoy coffee products through online
order. The competition level for food and beverage outlets is very high in London. The main
competitors of Casto Coffee are Attendant Fitzrovia, Prufrock Coffee, Kaffeine. These entire
Coffee outlets have fixed time to open and close their outlet. But, Casto Coffee will provide 24
hours per day services to the customers. on the other hand, online delivery services can also
provide a competitive advantage to Casto Coffee from its competitors.
Part B
The first important objective of Casto Coffee is to provide innovative and natural coffee drinks
to the customers. Innovative coffee drinks such as magical unicorn latte, sin-bin coffee, and
rainbow magnum can provide delight taste to the customers. The magical unicorn latte is a
magical combination of honey, ginger, and coconut milk with some tasty coffee mixture. This
type of product can enhance the taste of the people. Rainbow magnum and sin-bin coffee are
combinations of blackberry, honey, and coffee mixture. The second objective of Casto Coffee is
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to provide quality products. Casto Coffee can take a competitive advantage over the competitors
by maintaining products' quality. The third important objective is to provide coffee products at
affordable cost. There are several coffee outlets provides their products at very high cost. But,
Casto Coffee will provide magnificent coffee drinks at a very low price to the customers. The
low-pricing strategy will help Casto Coffee to attract customers. The fourth objective of Casto
Coffee is to build a massive supply chain to reach the customers. Effective supply chain helps
Cast Coffee to enhance its profitability. Sole trading should be a very effective approach for
Casto Coffee. As a sole trader, the owner of Casto Coffee can be able to take own decision for
the betterment of the Company. The owner can be able to earn more profit by adopting the sole
trading approach (Panmore, 2019).
Task 2
Political factors
The UK comprises of main four countries such as Wales, Scotland, Northern Ireland and
England. These nations were identified as one of the very powerful nations of the world. The
nation is recognized to be politically stability. The stability in the political scenario is considered
to be the strength of the UK. On the other hand, Brexit tends to produce uncertainties. It is
believed by some of the political analysts that Brexit would make an environment of chaos.
Whereas some of the political analysts believe that Brexit would direct the economy towards
immense opportunities. The nations are considered a hub of foreign direct investment. There is
great opportunity to carry out business in the nation. The rate of taxation upon the profit of the
company is 19%. The tax rate will be reduced from 19 % to 17 % during the year 2020. This
factors would significantly influence the business operations (Academia, 2018).
Economic factors
The economy of the UK is identified as the world's 5th biggest economy by The World Bank.
The UK has faced some complexities during the period of 2017. During this period the inflation
rate of the UK had increased by 3.1%. The shop prices during the period of 2017 have increased
to a great extent. The fall in the value of the currency of the UK had directed towards the rising
cost to import more products in the nation. The wages of working individuals in the economy
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was not increased by the prices. Therefore the new business of Casto Coffee could be impacted
by these factors in a significant way.
Social factors
This particular economy has a larger consumer market. it has been analyzed that the birth rate
has surpassed the death rate. The number of old age group is more than 20%. This has a direct
implication upon the health care and labor market. The Casto Coffee" could gain additional
customer base of old age group. Casto Coffee" can also provide health-conscious drinks to these
old age groups. The population of the UK is mostly educated and has a higher cost of living
(Academia, 2018).
Technological factors
The UK is identified as a nation which is technologically advanced. Thus due to high-end
technologies, the business has great opportunities to expand and develop. The technological
advancement can play a major role in Casto Coffee in order to provide better services to
customers.
Environmental factors
The economic growth has a significant impact on the UK's environment. The changing weather
conditions attract huge numbers of tourists. This can facilitate Casto Coffee with greater
productivity. The flourishing tourism industry can also benefit the coffee business.
Legal factors
The legislation of the country mainly put more emphasis on protecting the rights of the
employee. The Employment Act of 1996 is mainly based on the rights of workers. The
legislation mainly protects the minimum wage system, paternity leave, sick pay and many more.
Equality Act 2010 tends to protect individuals from any discrimination. Thus any change in the
employment act can directly influence the business of Casto Coffee (Cipd, 2017).
Task 4
Marketing objectives
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The key objective of the product provided by the Casto Coffee is reflecting the quick and quality
product and services provision. The key brand message that will be conveyed to the mass market
who are identified to be offered is the "Unique taste, Quality service of Coffee & Pastries
products". The costs will be identified to be lower than the other Coffee providers present in the
UK market by providing a superior high-quality taste.
Target Markets
The target markets initially will be the surrounding covering areas of the University of
Roehampton. In these target areas, the consumers who will be targeted are belonging from the
age group of 12-50 years. The targeting of the consumers will be carried out on the basis of the
segmentation of the behavioral, demographic and geographical segmentation. On the basis of
these three types of segmentation, the customers will be targeted with aiming at providing an
appropriate focus on the customers.
Marketing Mix
Price: the business offers very competitive pricing strategies. The company has adopted a
penetration pricing strategy. In this particular strategy, Casto Coffee offers the products at very
reasonable prices. This strategy would facilitate the organization in building a most effective
customer base.
Product: the company offers a diversity of products magical unicorn latte, sin-bin coffee,
rainbow magnum with some snacks and pastries.
Place: the company chooses a place where the tourist is most attracted to. The place which has
been selected is London where the café can be able to gain numbers of prospective customers.
Promotion: customer awareness can be carried out by advertising through coupons in the local
publications. The social media platforms are also employed to target young customers.
Marketing strategies for each target market
The marketing strategies that will be carried out is reflecting the promotional processes in the
form of advertisements, billboards, and the pamphlets. These will be delivered to the market with
the process of using the marketing mix processes. The reaching to the customers is essential
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initially as this approach will be beneficial for gaining the customers at the initial setup of the
business. The segmented customers will be targeted initially for the purpose of increasing the
appropriate improvement in the processes.
Task 5
One operational business decision
The operational business decision is that Casto Coffee will be taken by the manager who will be
enabled of taking care of the operating business decisions. The target that will be set by the
manager will be about selling 100-120 cups of coffee per day on the basis of the coffee demand
identified in the UK market. The online market will be focused on targeting online consumers
with the help of promotional processes. Thus, it is found to be providing an appropriate focus on
the improvement in the objectives. The coffee will be enabled of gaining the appropriate
improvement in the activities with enabling them to carry out the business operations. The
enhancement in the business decisions will be carried out with focusing on the management of
the activities. Apart from this, it will be providing a focus on making attaining the customer's
attention to establishing the brand name (Businesscasestudies, 2017).
One tactical business decision
The tactical business decision that will be undertaken by the owner is focusing on the employee's
perspective of spending time with the customer. This process will be enabling the appropriate
improvement in the decision making process with gaining the attention of the consumers. The
appropriate improvement in the reliability and the availability of the equipment are essential for
executing the activities in an appropriate was carried out with focusing on the appropriate
improvement in the processes. The improvement in the reliability and the investment process is
essential for attaining the high level of investment in the project processes. The final decision-
making process will be carried out with maintaining the levels of the risks and also the
significant strategic investment processes will be carried out with engaging in the process of
decision making (Businesscasestudies, 2017).
One strategic business decision
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The strategic business decisions will be focused by the manager with the help of establishing the
appropriate pricing, discount, and the promotional processes. The pricing process will be easily
enabling the customers to focus on haggling on the price. The owner of this business must be
involved in these processes as it will enable him to raise or drain the business. The level of the
price margin must be maintained for the purpose of making an improvement in the decision-
making process. The discounts must be made by focusing on the channel sales processes and the
network marketing processes. It will be definitely increasing the network marketing and the daily
sale with increasing the daily purchase of the coffee products, pastries, and the cookies products.
It is playing a major role in the improvement in the activities as it will be enabling the
organization to focus on making the improvement in the business processes (Bhasin, 2018). The
ultimate development of channel level operations is essential for Casto Coffee. The promotional
process must be used in the operational decision-making process as it will be enabling the
company to promote the products in the form of the large areas or the mediums. The best ROIs
must be promoted for the purpose of making improvement in the processes.
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References
Academia (2018). United Kingdom In-depth PESTLE insights. [online] academia.edu.
Bhasin, H. (2018). What are operational decisions and their role in business?. [online]
Marketing91.
Businesscasestudies (2017). Tactical decisions - Developing people through decision-making -
power | npower case studies and information | Business Case Studies. [online]
Businesscasestudies.co.uk.
Cipd (2017). Pestle Example of Retail Industry. [online] Cipd.co.uk.
Palo (2018). Coffee Shop Business Plan Sample - Management Summary | Bplans. [online]
Bplans.com.
Panmore (2019). Starbucks Coffee's Operations Management: 10 Decisions, Productivity -
Panmore Institute. [online] Panmore Institute.
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