JQU0006 Business Plan: Rumble Coffee Roasters Case Study

This business plan analyzes Rumble Coffee Roasters, a wholesale coffee supplier in Melbourne. The plan includes an executive summary, details about the business, and a thorough market analysis encompassing SWOT, PESTLE, and Porter's Five Forces analyses. The marketing section covers the marketing mix (4 Ps) and STP analysis. The plan also addresses legislation, risk management, and financial aspects. The business plan highlights Rumble Coffee's strengths, such as wholesale coffee supply and drop-shipping options, while acknowledging weaknesses like limited marketing and the impact of the COVID-19 pandemic. Opportunities include online training for cafes and customized coffee offerings. Threats include emerging coffee trends and increasing competition. The plan provides a comprehensive overview of the business, its market position, and strategic considerations.

BUSINESS PLAN

TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY.......................................................................................................1
2.0 THE BUSINESS........................................................................................................................1
2.1 About Business......................................................................................................................1
2.2 Mission and Vision Statement...............................................................................................1
2.3 Main products and services...................................................................................................1
3.0 MARKET ANALYSIS..............................................................................................................2
3.1 SWOT ANALYSIS...............................................................................................................2
3.2 PESTLE ANALYSIS............................................................................................................3
3.3 PORTER’S FIVE FORCE ANALYSIS................................................................................4
4.0 MARKETING...........................................................................................................................5
4.1 MARKETING MIX 4 P’S.....................................................................................................5
4.2 STP........................................................................................................................................5
5.0 LEGISLATION AND RISK MANAGEMENT.......................................................................6
6.0 FINANCE MANAGEMENT....................................................................................................6
REFERENCES................................................................................................................................8

1.0 EXECUTIVE SUMMARY
This report had focused upon development of business plan for an existing business in
Melbourne. Rumble Coffee Roasters are wholesale retailers who provide wholesale roasted
coffee, equipment’s and other different kinds of coffee product. This report would provide
details about business, market analysis, marketing, legislation and risk management, and
financial management
2.0 THE BUSINESS
Business name: Rumble Coffee Roasters
2.1 About Business
Rumble Coffee is a wholesale coffee roastery that supplies cafe all around Melbourne.
They also provide free local delivery of coffee products at wholesale prices. Their store is on 8
Thompson Street, Kensington Melbourne, Australia (Rumble Coffee Roasters, 2021). They
provide different kinds of roasted coffee and supply those coffee products on demand on
wholesale rate. Recently due to Covid-19 pandemic they have started various other kinds of
services as well such as on demand supply of roasted coffee, free home delivery, contact free
delivery of products. Not only this, they also provide training and support to different café’s,
supply raw materials to such café’s such as roasted coffee etc.
They focus upon maintaining and providing transparency within this business by
providing complete details of their current coffee projects in which they have clearly provided all
the information related to that project such as price paid by them, farm gate, market price, about
that coffee project, and many other important details. In order to enhance this transparency, they
provide their transparency report of every year in which they provide all kinds of pricing details
and comparative prices of this year and last year.
2.2 Mission and Vision Statement
Their main mission statement is to provide high quality coffee products to local cafe’s on
lowest wholesale rate.
Their vision is to become consistent world-class ethically sourced coffee providers and
trade wholeheartedly in order to provide support to others.
2.3 Main products and services
They provide wholesale coffee, training and support to new Café’s, wholesale
equipment’s, contract and private label roasting, brew gear, gifts, tea, hot chocolate etc.
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3.0 MARKET ANALYSIS
3.1 SWOT ANALYSIS
SWOT analysis can directly help in analysing strengths, weaknesses, opportunities and
threats of Rumble Coffee organization (Monroy, 2018). This analysis can directly help an
organization to bring changes within their current business strategies as per analysis of their
weaknesses, strengths etc.
Strengths
One of their main strength is that they provide wholesale providers coffee equipment’s,
roasted coffee. They provide an opportunity of drop-shipping where cafes can start their own
labelled coffee where café houses will be able to develop their own website, crate their own
brand and they will only be required to pay for coffee they sell. In order to retain their current
customers, they provide subscription facility to their customers so that they never run out of
coffee again and their customers are free to cancel their subscription any time they want (Coffee
bean distributors in Australia, 2021).
Weaknesses
Current Pandemic situation of Covid-19 has drastically impacted their sales of coffee.
This pandemic situation has reduced their sales by almost 50 percent and there are even more
chances that their sales will get reduced. Another one of their weakness is limited marketing and
advertising campaign. They do not focus upon developing strong marketing, advertising and
promotion campaigns.
Opportunities
They can focus upon providing training and support to Cafes online as well. This will
help them in providing more training and support to more coffee houses within this pandemic
situation. They can also focus upon providing an option to their customers where they can order
for their own customized coffee i.e., they will be producing coffee as per their customers
description and would be selling them.
Threats
Emerging herbal, organic and decaffeinated coffee trend can impact sales of their current
coffee products as well as can decrease their demand of current coffee products as well.
Increasing health awareness of people can also become a threat for Rumble coffee as people
think that coffee is not good for health (Rumble Coffee Roasters, 2021). Increasing competition
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in this sector is another threat for Rumble Coffee because today competition in this field is
increasing g day by day can become a threat for them and can impact their overall sales as well.
3.2 PESTLE ANALYSIS
PESTLE analysis can help an organization to analyse external environmental factors that
can impact their business in variety of ways (Doan and Bui, 2020). PESTLE analysis will help in
analysing market of Rumble Coffee in order to understand external factors that can impact their
business in variety of ways.
Political Factors: Australia has joined world’s largest free trade agreement i.e. Regional
Comprehensive Economic Partnership. They have strong trading link with EU and US because
of which Australia becomes most trusted and highly stable trading destination. This makes
importing of high- quality coffee from other countries in reduced price (Rumble Coffee Roasters,
2021). This directly makes availability of coffee products and equipment’s easily available to be
sold and made available for their customers.
Economic Factors: Current Pandemic situation of Covid-19 have directly impact overall word
economies. Most of the people have either lost their jobs during this pandemic situation or were
forced to accept reduced salaries because of which overall economic growth rate of nation has
also been impacted. As a result, consumers have reduced consumption of coffee from café. This
has directly impacted overall sales of Rumble Coffee.
Social factors: Today most of the people have become health conscious and have brought
changes within their food and beverage consumption i.e. most of the people today prefer
healthier beverage products. as coffee is caffeinated most of the people have brought changes
within their choice of coffee i.e., today people prefer having decaffeinated, healthy, and organic
coffee rather than running towards taste. This has further brought changes within products of
Rumble coffee and due to this they are now focusing upon producing organic coffee and
customized coffee where people will be free to product their own coffee brand coffee.
Technological Factors: this factor has directly helped Rumble Coffee to boost their business as
they have adopted technological advancement as a part of their business i.e. any kind of new and
advance coffee machine is introduced in market they focus upon making it available to their
customers at wholesale price.
Environmental factors: today awareness related to environment is increasing day by day due to
increasing carbon dioxide emission. As a result most of the countries have developed their own
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environmental legislations and regulations. Australia has developed their own Environment
Protection and Biodiversity Conservation Act, that says that it is a serious offence for
organizations who take part in actions that have negative or drastic impact upon environment.
Due to this it has become important for Rumble Coffee to focus upon reducing their carbon
footprint and adhere all the other environment related legislation.
Legal Factors: there are various kinds of legal factors that can affect Rumble Coffee such as
food standards. Australian government have decided some food standards that are required ot be
adhered by all the organizations in this sector.
3.3 PORTER’S FIVE FORCE ANALYSIS
Porters five force analysis can directly help Rumble Coffee to analyse market factors that
can affect their business or become a threat for them so that they can bring changes within their
marketing strategies accordingly.
Competitive rivalry: It is a moderate force because there are lower number of organizations that
provide coffee products and machinery at wholesale pricing. But switching cost for customers in
this sector in low due to which threat of this force increases.
Bargaining power of buyers: It is a strong force because switching cost for customers is low,
large number of substitute products are available for customers in market because of which
power of buyers upon organization increases.
Bargaining power of suppliers: It is moderate force because there are large number of suppliers
available in the market who can readily provide required raw material to Rumble Coffee, but
moderate size of suppliers who provide high quality of raw materials is less because of which
threat of this force become moderate.
Threat of substitute: It is a strong force because availability of substitute product in market is
high for Rumble Coffee. Today affordability of such coffee products have become much more
easier for customers due to which easily available substitute can become a threat for the brand.
Threat of new entrants: It is a low force because cost of doing business in this sector is high,
supply chain cost is also high. Today people prefer branded high quality coffee products and
brand development cost in this sector is also high.
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4.0 MARKETING
4.1 MARKETING MIX 4 P’S
Marketing mix of an organization can directly help in understanding marketing strategy
of an organization (Putri and wt. al., 2020). 4 P’s of marketing mix of Rumble Coffee will
directly help in understanding their marketing strategy in a brief manner.
Product: They sell different kinds of coffee products, Subscription to customers so that they can
subscribe and offer coffee, mix and match roasted coffee beans, brew gear, merch and Books,
Gifts, hot chocolate, Matcha, wholesale coffee equipment’s, drop-shipping facility etc.
Price: Rumble Coffee have adopted low- cost pricing strategy where they focus upon selling or
providing products sold by them to their customers in lower cost or in wholesale price. They
provide roasted coffee products, equipment’s, supply other products in wholesale price i.e. as
low as possible to their customers. The main reason because of which they have adopted this
pricing strategy is to make different kinds of coffee, equipment’s related to it affordable for
people and other small Café houses selling coffee.
Place: They have their store in Melbourne and focus upon supplying their products and services
directly from Melbourne. Other than this, they have recently focused upon expanding their
business and for that they have approximately 25 stores near Melbourne
Promotion: Rumble coffee Roasters have adopted digital and social media promotional
strategies. They focus upon doing extensive promotion of their products and services upon social
media platform. They also focus upon paid digital promotion of their products and services in
order to attract a greater number of customers. Other than this they also provide different kinds
of offers to their customers like subscription offer where they can subscribe for their products
and services for lower cost and timely delivery. This directly helps them in retaining their
customers. They also provide different kinds of gifts options for their customers.
They have dev eloped their marketing strategy on the basis of these 4 P’s of marketing mix.
4.2 STP
STP or segmentation, targeting and positioning can help in understanding who their main
target customers are or group of customers who are being focused upon by organization.
Segmentation: Rumble Coffee focuses upon customers of Australia who consume coffee or self-
coffee products like Cafe’s etc.
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Targeting: Rumble Coffee focuses upon business professionals who run their own Café, who
require roasted coffee in wholesale price or who require support and training for running their
own business.
Positioning: Different coffee blends, roasted coffee of different region.
5.0 LEGISLATION AND RISK MANAGEMENT
Rumble Coffee Roaster focuses upon adhering all the legislation associated with their
sector such as: they focus upon adhering Australian Consumer law for protecting consumers of
coffee and for maintaining fair trading. They also focus upon adhering trade practice act So that
they import and export their products and services legally by adhering all the legal trade
practises.
For risk management Rumble Coffee Roasters focus upon
 Identifying risk: like current pandemic situation of Covid-19 had directly impacted their
sales. They have identified that in future their sales can fall even lower (Sihombing, 2020).
 Assess the risk: Lowering of sales can directly impact their business, their overall revenue
and profitability. Not only this, it can make it difficult for organization to sustain within their
existing market.
 Managing risk: For management of this risk, they have focused upon reducing its impact by
providing free local delivery at wholesale prices, take order on phone or on website and
deliver order very next day. For contact-free drop off and for maintaining social distancing
they have focused upon delivering by bike where possible. This strategy has heled them in
reducing its impact upon business.
 Monitoring and reviewing: in order to ensure that this identified risk is being managed they
will be continuously monitoring their business performance and will be reving measures they
have taken.
6.0 FINANCE MANAGEMENT
Budget- Cash inflow and outflow statement will help in understanding overall financial
management of Rumble Coffee in which their cash in flow and out flow will be explained in an
accurate manner.
Jan Feb March April May June July Aug Sept oct Nov Dec
cash inflow
sales 20000 21000 24000 28800 34560 41472 49766 59719 71663 85996 103196 123835
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other income 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000 7000
total cash
inflow 27000 28000 31000 35800 41560 48472 56766 66719 78663 92996 110196 130835
cash outflow
salaries 4000 4000 4000 4000 4000 4000 4000 5000 5000 5000 5000 5000
legal
expenses 2000 0 0 0 0 0 0 0 0 0 0 0
infrastructure 4000 0 0 0 0 1500 0 0 0 0 0 0
rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
utility bills 1000 1000 1200 1200 1500 1500 1600 1600 1700 1700 1700 1800
inventory
cost 4000 5000 5000 5000 6000 6000 6000 6000 6000 6000 6000 6000
long term
liability 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
total cash
inflow 18500 13500 13700 13700 15000 16500 15100 16100 16200 16200 16200 16300
net cash flow 8500 14500 17300 22100 26560 31972 41666.4 50619.7 62463.6 76796.3 93995.6 114535
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REFERENCES
Books and Journals
Doan, T. and Bui, T., 2020. How does supply chain management affect financial performance?
Evidence from coffee sector. Uncertain Supply Chain Management. 8(4). pp.839-844.
Monroy, G., 2018. Risk Management and Perception of Coffee Growers (Doctoral dissertation,
Pontificia Universidad Catolica del Peru-CENTRUM Catolica (Peru)).
Putri, A.R.A., and wt. al., 2020. J. CO Coffee & Donuts Marketing Strategy. Asia Pacific
Journal of Management and Education. 3(1). pp.72-81.
Sihombing, F.T., 2020. Perencanaan strategi pemasaran pada Ub Coffee dengan metode SWOT
dan QSPM (Doctoral dissertation, Universitas Brawijaya).
Online
Coffee bean distributors in Australia. 2021. [Online]. Available through: <
https://www.ibisworld.com/au/industry/coffee-bean-distributors/5477/ >
Rumble Coffee Roasters. 2021. [Online]. Available through: <
https://www.rumblecoffee.com.au/pages/what-we-do >.
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