Comprehensive Business Plan: UK Coffee Bean Market Entry Strategy

This report outlines a business plan for 'Everything about coffee,' a coffee bean venture in the UK. It includes a PESTEL analysis leading to a SWOT analysis, competition analysis, and an industry analysis using Porter's Five Forces. The report identifies the target market through segmentation criteria, focusing on students near universities, and structures a marketing plan around the 4Ps (Product, Price, Place, Promotion). The business aims to fill market gaps by offering healthy, low-sugar coffee options. The plan emphasizes strategic planning to ensure sustainability in a competitive market, highlighting the importance of marketing skills, policy development, and financial management. The report concludes by summarizing the key analyses and strategies for effectively launching and operating the coffee bean business in the UK.

BUSINESS PLAN
REPORT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
PESTEL analysis that leads towards SWOT analysis.................................................................3
Competition analysis...................................................................................................................4
Industry analysis with the help of Porter's 5 force model...........................................................5
Evaluate and identify target market that includes segmentation of criteria employed...............6
Marketing plan structured around 4 P's.......................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The report prepared below highlights business plan of coffee beans named as 'Everything
about coffee'. The data collected counts ways that would help to fill market gaps such as measure
competitors, monitor trends in field of expertise, adapting existing products or services available
in market (De Armas, 2020). Such ideas would help business to plan its steps to be taken in near
future accordingly and how they would assist in growth and expansion of companies. It is
necessary for every business whether old or existing to plan its operations well in time for
maintaining sustainability and stability in competitive marketplace. The skills that must be
possessed by a entrepreneur/ business owner are effective marketing and developing sale margin.
It is also necessary for a person who is setting new business to plan policies and strategies in
advance which would help business to run & function smoothly. The skills required by manager
are related to finance areas, building better communication mediums, finding solutions for
expected and incidental problems, managing the workforce appointed. The location decided for
setting up new business is UK main city area the reason being it would help to generate more
sales from the population of youngsters studying in nearby universities. It would help business to
form a chain of customers through mouth publicity as well.
TASK
PESTEL analysis that leads towards SWOT analysis.
PESTEL can be explained as evaluation of factors such as Political, economic, social,
technological and legal that helps the business to understand related situations that might affect
functioning and development of new projects in marketplace. They relate to risk such as changes
observed in taxation policies, inflation and deflation rates, innovative ways to distribute goods
and services, efficient utilisation of resources. Conditions such as COVID-19 that impacted and
affected running of enterprises is necessary to take in account for finding better solutions. It is
necessary for every business to analyse issues that can be controlled and which need actions
planned in advance to minimize effects (Garriga Ferrer, 2020).
SWOT analysis defines Strengths, weaknesses, opportunities and threats that are
mandatory for every firm to include in the process. It helps them to find what can serve as a
better competitive advantage that would serve as an asset in long run of the business. It further
assists in decision making as what is the desired area generating maximum profits and revenues.

As There are many companies already present in environment it is necessary for business to
examine areas that go untapped from environment.
There are opportunities such as lack of assistance and focus neglected by competitors in
areas that require solutions for removing hurdles from business for minimizing losses and risks.
Thus, In coffee beans business it is necessary to tap areas that would attract potential customers
from market with the help of strengths and opportunities present in environment. It is thus
needed for entrepreneur to plan in advance what can be done, how can be done, related sectors
that would contribute in placing the product in right quantity at right place. It has a innovative
idea of processing coffee that is healthy and contains less sugar preservatives which can be
consumed by diabetic patients as well. It can take advantage of analysis done by the business
before establishment to understand where are the companies lagging behind and how can they
improve their working and performance in effective areas (Katz, 2018).
Competition analysis.
It can be explained as a strategy and related policy in coffee bean related products which
includes research of major competitor's to access a site of their related products that would be
provided and what would be the marketing tactics & methods adapted by business in long run. It
is necessary for every new establishing business to prepare plans and strategies well in advance
that would help them to capture market share and learn what can be related chance that can be
turned into a big opportunity. It ensures that business plan made is meeting its objectives and
adapting new market trends prevailing in the market. It helps to make sure that the product is
unique in its own and is able to sustain in competition. It provides proper guidance as where the
competitors are failing to cover set goals and how they can make best use of it. It is a efficient
measure that helps to decrease costs and risks, evaluate gaps present in market, make a proper
research of market and adapted techniques by competitor's as well and how they can be made
better for reaching a step ahead than others. It takes in account what are the tools and methods
that are adapted by other companies and what are the advanced technologies that can be adapted
by new business for reaching the level of competitors in market and building a strong image
(Kong, 2019).
Competition analysis is useful as it gives an idea about related issues and situations
prevailing in UK for coffee beans:

 It is beneficial for the company to enter the market in planned time duration and it would
prove to be fruitful.
 It helps them to analyse threats and risks that might affect business in long run and how
they can be get better of.
 It is necessary to find out which technique would serve best for achieving related targets
and increase demand of the product from the area it would be placed in.
Industry analysis with the help of Porter's 5 force model.
It can be explained as a evaluation of certain branch of service, trade or manufacturing in
areas that deal in caffeine related products and majorly deals in coffee beans. It helps to
understand the sector in which the business is planning to work. It also assists to find out strength
that lies with business conditions (Lynch, 2018). It is helpful for organisation to find present
competitive position and advantage that can be used in long run of the company. Industry can
use Porter's 5 model for evaluating the industry that includes:
 Threat of new entrants: Industry analysis helps to understand risks that are associated
with entry of new companies and related business. If a enterprise has strong obstacles for
entering in an existing organisation within a industry then it would be fruitful for
company, the reason being it would be able to charge higher rates than already existing
firms and quote better terms than others.
 Bargaining power of suppliers: It explains the cost involved that incurs in the process of
switching suppliers by a company for its related raw materials. If the no of suppliers are
less than the business has to rely on few vendors thus the power would be in their hands
that can affect a new set up of company.
 Intensity of competitive rivalry: It explains that if there are more number of companies
available in market then the competition would rise and less power would be in the hands
of new businesses thus it would be riskier for them to manage profits and manage
demand (Marochini, 2021).
 Threat of substitutes: It would be a riskier situation when there are enough substitutes
available in market thus it would be impossible for new enterprise to set up their business
and function in a effective and efficient manner.
 Bargaining power of buyers: In case of new firms that are set up it is necessary to analyse
potential customer present in market which would affect demand curve of organisation.

Thus, small and powerful ratio of clients would have more power to negotiate and
bargain.
Evaluate and identify target market that includes segmentation of criteria employed.
In case of new business idea such as coffee beans it is necessary for a enterprise to
identify and target market in UK well in time that includes understanding related facts such as
needs, demand and expectations (McCardell, 2018). There are many criteria that are being used
in a business which considers Behavioural, geographic, psycho-graphic and demographic
criteria. Target markets involve a better understanding of audience and dividing them into areas
that consist of similar buying habits just like the business that has been planned for future
aspects. There are many criteria that fits best to different demands and types of business &
clients as well. The most appropriate tool that would help business to understand and increase
demand in market is chosen and stated below.
Demographic criteria would prove to be more beneficial in case of new business as it
would serve to be a quick process for targeting potential market. It includes factors such as age,
gender, income, education that would be helpful for a product such as coffee to manufacture its
product according to the expected demand. It helps to attract more customers from market that
are studying in nearby universities or are keen to try something new invented in market at
affordable price. Further it would serve as a medium to plan price range according to pockets of
students because the demand that would generate would be more of college students. The idea
adapted by new business is unique in its own as it includes coffee beans that would give provide
a taste like never before. It would be specially designed for coffee lovers giving them taste that
would suit their choices, preference and taste buds. Segmentation helps entrepreneurs to divide
targeted markets in more approachable group's and understand their behaviours in a better
manner (Meor Hamdan, 2019).
Marketing plan structured around 4 P's.
Market plan includes present value, direction and priorities of business that is being
planned and how it would place its product in market, related strategies that are being adapted by
a company, how it can promote its related goods and services provided and what would be its
related price range.
4 P's included in Marketing plan:

 Promotion: It is necessary for new business idea to plan its related activities that
would help company to plan its strategies for promoting coffee beans in market
and search effective tools. It can be through various techniques such as digital
sites that would make home deliveries and nearby offline outlets as well.
 Price: Price of new business must be set accordingly that would help them to raise
and fulfil demand of coffee (Picola Baré, 2021). It must be placed at a rate that
would be pocket friendly the reason being the location of shop that is near to
university.
 Product: Product explain that how the product is made i.e. its quality and quantity
must be better than already existing commodities.
 Place: Place states the location that would be easily accessible and that serves the
demand well in time related to coffee beans. Thus it would help to attract
potential customers from city as well and plan product according to different users
(Razuri and Zöttl, 2020).
CONCLUSION
The report prepared above defines PESTEL analysis and SWOT analysis helping in the
running and functioning of new business plan in environment. It undertakes evaluation of
competitive analysis, industry analysis and identifying target market & audience as well. It
explains segmentation of market in terms of attracting customers and generating demand that
would later help business to run and function effectively & efficiently. It further explains
requirement of market plan and inclusion of 4 P's that help enterprise to work in competition.

REFERENCES
Books and Journals
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