Detailed Business Plan and Strategies for NATIRI Coffee Shop in London

This report presents a comprehensive business plan for NATIRI Coffee Shop, a proposed startup in London. It begins with a business idea, emphasizing the shop's unique selling points and target market of students and young adults. The report outlines the company's objectives, including providing high-quality products, minimizing customer wait times, and offering affordable prices. It then explores the external factors influencing the business through a PESTLE analysis, examining political, economic, social, technological, and legal aspects. The report also covers marketing objectives, target markets, and marketing strategies, including the marketing mix. Finally, it provides a budget and discusses the launching event. The report is a student assignment offering a detailed analysis of a coffee shop venture.

BUSINESS ESSENTIALS

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Part A: Business idea...................................................................................................................3
Part B: Objectives of new business..............................................................................................4
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................8
Launching Event..........................................................................................................................8
Budgeting.....................................................................................................................................9
Task 4 ............................................................................................................................................10
Marketing objectives..................................................................................................................10
Target markets...........................................................................................................................11
Marketing strategies...................................................................................................................12
Marketing mix............................................................................................................................13
Task 5.............................................................................................................................................14
Task 6.............................................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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INTRODUCTION
In the modern globalized era organizations are suffering from high competition. In such
complex environment new firms have to work hard to establish their business well. Entities those
which want to enter into the market they are planning to provide unique products and services to
consumers in order to gain their attention and to attract them towards the brand. Changes in
needs of customers, technological advancement, political conduits influence the new business
planning (Valera Gil, 2016). Present report is based on the business ideas. It will discuss the
portfolio and objective of new organization. Study will emphasis on several factors that influence
the working of new business to great extent. Budget will be produced in order to identify the
cost of the operations and knowing about the requirement of funds for establishing the new firm.
Report will discuss about marketing objectives, target market, marketing mix and strategies of
the entity (Lake and Drake, 2014).
TASK 1
Part A: Business idea
Since long time UK has grown well and people are taking more interest in hanging with
their friends and families. A new coffee shop has high opportunity of getting high profit in the
London. Holborn Chacery is the perfect location for the cited firm because this is near to many
universities so maximum students will get attracted towards the NATIRI coffee shop. Customers
want high quality coffee art affordable prices. Apart from this it will offer breakfast and lunch to
the students at affordable prices. There will be facility of green smoothie, sandwich varieties,
baked beans, creamy mustard mushrooms on toast, cinnamon crepes with nut butter etc.
Opening a coffee shop is very simple idea but there are many big competitor organizations such
as Strabuck, Costa etc. those which are suffering quality products to clients. NATIRI coffee shop
is the start up firm that is planning to establish in the London (Edgington and Williams, Biotage
Ab, 2014). The organization is aiming to serve range of coffee flavors to the population of
London. College students, younger, adults like to spend some time with their friends and
families. The main aim of the company is to satisfy its consumers in order to enhance sales
volume of the organization to great extent. This sector has great potential to grow well, people
like to have coffee with friends so that they can spend some quality time thus, it is the great
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business idea and can help in establishing this shop in London easily (Pestle, Crowley and
Weirauch, 2014). Cited firm is planning to open high street in the most visible market in London.
There are many other big organizations those which are working in the same industry.
But in such locations prices of the products are very high and customers have to wait a lot for the
products and services. Due to this reason people go to such kind of places rarely (Igliński and
et.al, 2016). Holborn Chacery is student area so there would be gathering of mass people so by
offering variety of food and coffee cited firm will be able to gain attention of students and other
consumers. It will help in achieving goal of the NATIRI coffee shop significantly.
Key competitors of NATIRI coffee shop:
Competitors Features of the company
Strabuck Brand name and it is having great presence in
UK, USA and many more countries.
Costa Many branches in different location so people
can conveniently go there.
Pret A Manager Innovative products and services
NATIRI coffee shop is having capable and skilled employees those who perform their
duties well. They like to serve better to the customers, they put their best efforts for the well fare
of the organization. Company always work on innovative ideas and providing range is quality
services so that it can grow well. Cited firm offers people caf au lait, Caramel Macchiato, Caf
Mocha, Americano, Esspresso etc. types of coffee (Aithal, Shailashree and Kumar, 2016). Apart
from this variety of breakfast items, launch variety south-Indian, continental, Chinese all type of
food are available in the NATIRI coffee shop hat makes it differed from other competitors. It
provides them products as per their budget and taste. NATIRI coffee shop always pay attention
on needs and wants of users and accordingly it provides them products. By this way company
became more capable to establish their branch in the London more effectively. Apart from
providing quality products, NATIRI coffee shop trying to reduce waiting time of consumers, so
that people can enjoy their moments freely. People like to spend some time but they do not want
to spend much amount. Busy life schedule, hectic workload, complex life style make people
negative but by offering them free space with coffee, cited firm can attract more consumers
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towards the brand and can make them positive towards the brand (Hamdam and et.al, 2013).
This can assist in making people relax and can increase their level of satisfaction. Thus, opening
a high street coffee shop in the London is the great business concept.
Part B: Objectives of new business
The four most important business objective of new business are as described below:
 To provide high quality and innovative products and services to clients.
 To minimize waiting time for customers.
 To offer range to coffee products to customers of the NATIRI coffee shop.
 To provide services at affordable rates in order to develop faith of people on the
company.
These are four essential objectives of the organization, as first aim of the NATIRI coffee
shop is to provide quality innovative products to clients (Tsyhankova, Yatsenko and Zavadska,
2014). Company wants to serve better to the users for that it is essential that to offer them
innovative services so that they be loyal towards the brand like the environment. The next
objective of the cited firm is to minimize the waiting time. In the modern business world the min
problems is hat people have to wait a lot for getting products and services in the hotel or
restaurants. That decreases morale of people and they feel irritated. Company is planning to
reduce waiting time so that new business can get established in the market easily. Population of
London have become bored with the common coffee, NATIRI is planning to offer variety of
flavors that can change their taste of mouth (Hamdan, 2017). That would help in accomplishing
the goal of the organization that to enhance its profitability and gain competitive advantage too.
The main reason why people avoid to go on branded places that they have to pay high cost of
simple coffee flavor which they do not like. That is why NATIRI is having objective to offer
quality services at affordable rates so that people get attracted towards the brand (Tsyhankova,
Yatsenko. and Zavadska, 2014).
NATIRI coffee shop is the sole proprietor or sole trader which is privately owned by Mr.
NATIRI who is owner of company. The cited firm can run its business as sole trader that would
be better for the organization because in such type of structure company will have to manage
fewer people thus, operation cost will get reduced because they will have to spend limited
amount in paying salaries to staff. Apart from this low investment will require that would help in
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increasing profit of the entity (Hamdan, 2017). If NATIRI coffee shop run its business as
partnership then it will have to share its profit with partners that would reduce net profit of the
company. So being an experienced person NATIRI can easily operate its business as sole trader.
TASK 2
There are many external factors that influence the overall business activities of the
organization. Companies have to look upon these elements in order to run their operations well.
Coffee is the widespread and favorite drink of people in the world. Espresso, non espresso etc.
many types of coffees offered by the entities to consumers (Santos and et.al, 2014). PESTLE
analyses is the great method that can support in running business well and protecting from
external influencing components.
Political factor
It is the major component that influence the business performance of entire industry.
Government attitudes, trade relationship with other countries such as from where raw material of
coffee is being exported etc influence the business industry (Sealy and et.al, 2014). It is
necessary to follow rules and regulations strictly to run business ethically and legal. It impacts
negative and positive on the organization. For instance if government breaks trade agreement
with other exports country then it may create problem because sufficient raw material will not be
available. At that time political factors may be considered as barrier for the entity and can
impacts negative on the industry as well (Hescot and et.al, 2013). On other hand it impacts
positive too, for instance if government raise quality standards then NATIRI coffee shop will
have to follow these standards. By this way cited firm will be able to provide quality services and
products to consumers that would enhance satisfaction level of consumers and they will buy the
products of the company frequently.
Economic factor
UK is the economically developed country and London is having great potential.
Inflation, deflation, recession etc. impact on the business activities of the industry. For instance if
there is high exchange rates then it would enhance operational cost of the company because
organization will have to invest huge amount (Tanaka, 2013). If inflation is high then purchasing
power of the people will get down thus, people will minimize hanging and spend time on coffee
shops. That would be barrier for the industry and it will decrease their business performance to
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great extent. On other hand if there are stable exchange rates then people buying capacity of the
population will get increased thus, that would help in the growth of the organization to great
extent and in such potential economical condition NATIRI will be able to establish its coffee
shop in London easily (Tucker, 2013).
Social factors
That is another essential element of PESTLE analyses which looks upon the social and
cultural aspect. In the coffee quantity of caffeine is very high, due to this sleep disorder,
migraines, irregular heartbeats types of diseases take place. Due to this some cultures avoid to
drink coffee that affects overall sales volume of this industry. On other hand it is scientifically
proved that caffeine boost metabolism that helps in loosing weight that is why most of the people
those who are heavyweight they drink coffee and suggest others as well. In some culture
consumption of tea and coffee is not allowed whereas in other culture coffee is considered as
premium products (Ho, 2014). That influence the sales and profit of the industry thus, NATIRI
coffee shop is trying to include some hygiene factors in coffee that can help in keeping people
healthy and energetic.
Technological factors
It is a modern era and technologies are more advanced that help in improving quality of
the production. Brewing techniques assist in improving production efficiency of coffee. By
adopting advanced techniques for the production company can grow well and can offer quality
products to their consumers (Arseculeratne and Yazdanifard, 2014). It will enhance production
capacity of the organization and will support in increasing sales of the industry. Innovative
technologies, biotechnological developments assist in increasing sales volume of the company.
With the help of this operational cost of the company will get down to great extent and profit will
get raised up (Hosseini and Moezzi, 2015).
Legal factors
Legislation related to import and export affects the entire coffee industry to great extent.
Global warming, healthy and safety low impacts on the business. Government of UK has made
regulation to provide hygiene product s to consumers and they have to use low content of
caffeine in the coffee. NATIRI coffee shop has to follow these regulations in order to run
business perfectly and ethically (Starbucks Coffee’s Marketing Mix (4Ps) Analysis, 2017). If
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company do not follow such laws then it may create problems for them and can harm the brand
image of the organization.
Environmental factors
It is another essential point that impacts on the business performance of the organization.
Earthquake, rain, poor harvest influence the quantity of coffee beans and affect supply of raw
material (Ho, 2014). NATIRI coffee shop needs to look upon the environment and have to use
Eco-friendly products that would attract more consumers and will increase brand name of the
company.
TASK 3
Customers are treated as life-blood for the organization and also they are known as key
tactics for the firms because customers are not there then the firms will not exist and thus it is
said that till customers are buying companies or small shops can sell. Holborn Chacery is the
perfect location for the cited firm because this is near to many universities so maximum students
will get attracted towards the NATIRI coffee shop, coffee drinkers and drinks an average of 3
cups of coffee every day and that is huge in numbers for a firm to target this kind of market will
help them to achieve more. As time will progress this need of London is expected to
rise(Hosseini and Moezzi, 2015). A sensational smell of coffee not only mesmerizes a person but
also draws him to make buy that coffee and that's what Natiri Coffee shop is famous for and
makes his customer feel good when they experience the product. Apart from this variety of
breakfast items, launch variety south-Indian, continental, Chinese all type of food are available in
the NATIRI coffee shop that makes it differed from other competitors.
Launching Event
Natiri Coffee Shop with its objective of providing best services in town through its
unique set of features in the best possible manner they can. All this will be delivered to the
customer and they will be mesmerized through the experience of it. As a manager of Natiri
Coffee Shop to launch its services in the market there are certain steps to gather more people
around the shop on its launching event which will help in making people more fond of the brand,
here is what a launch event of Natiri Coffee Shop will look like in the particular leadership.
The launch event of Natiri Coffee Shop will be so big and attracting that for the potential
customers it will act like a demo to get an insight on the working and infrastructure of the job so
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that they can form an opinion towards the brand and can act in making the necessary deals or
orders with the firm. The said coffee shop has also been into food making business and thus
makes a mesmerizing food which attracts a whole lot of students which in turn creates a good
market for them. Students from different areas come there taste the spices they mix. In order to
make the crowd attracting towards the products and services offered by Natiri they need to keep
a discount option on the first day of their shop i.e on there launching event that they can put on
the famous coffee they produce in the shop or some amazing most sold product in the area or the
market can be discounted at the rate of 20%. Also they can put the offers of cashback also in
order to make people pay with their digital wallet and making them convenient to pay is a good
option for them(Hosseini and Moezzi, 2015). Holborn Chacery is the perfect location for the
cited firm because this is near to many universities so maximum students will get attracted
towards the NATIRI coffee shop As this scenario is of giving cashback's and discounts, thus this
will give customers an additional view to have look at the services offered by them. The strategy
of this kind will make more and more people to visit the event and buy the coffee and various
snacks. Launch event will witness all the people from family, friends, colleagues, relatives, etc
and most importantly the potential customers. Event will be going to take place the coffee shop
only because making them view the interiors is the key, as studies have shown that 20% of
people are attracted and motivated to buy the products from looking at the interiors only. So it is
important to conduct the event at location only. Also a live demonstration of how the event
planning is and whole lot of ideas will be displayed by Natiri's staff to make customers know that
what they are capable of and how they will. A center of attraction will be the services and extra
gift hamper which will provided to every person who buys the products. All those activities will
make Natiri's Launch event a success in terms of gathering and sales & lead generation(Sealy
and et.al, 2014).
Budgeting
Budget
Year 1 Year 2 Year 3
Revenue 505,600 557,419 670,350
Cost of sale 151,192 158,752 169,335
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-------------- -------------- --------------
354,408 398,667 501,015
Administration Exp. 84,930 88,899 168,578
Sales Exp. 58,200 72,360 163,934
-------------- -------------- --------------
Profit 211,278 237,408 168,503
Tax Paid 52,820 59,352 42,126
-------------- -------------- --------------
Income 158,459 178,056 126378
Cash Flow
Year 1 Year 2 Year 3
CASH FLOWS FROM
OPERATING ACTIVITIES
PBT/EBT 211,278 237,408 168,503
Depreciation 5,550 16,800 111,300
--------------- --------------- ---------------
216,828 254,208 279,803
Taxes paid - 52,820 59,352
--------------- --------------- ---------------
Net Cash Flows from Operation 519,250 531,406 459,601
--------------- --------------- ---------------
CASH FLOWS FROM
INVESTING ACTIVITIES
Purchase of assets 45,000 700,000
--------------- --------------- ---------------
CASH FLOWS FROM
FINANCING ACTIVITIES
Share issue 10,000 - -
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Dividends 39,615 44,514 31,594
--------------- --------------- ---------------
Cash Flows used in Financing
Activities 29,615 44,514 31,594
--------------- --------------- ---------------
Cash and Bank 489,636 441,892 271,993
Cash and Bank at opening - 489,636 931,528
--------------- --------------- ---------------
Cash and Bank at closing 489,636 931,528 659,535
TASK 4
Marketing objectives
To attract the consumers it is essential to adopts effective marketing strategies. For that
owner of the NATIRI coffee shop has to set marketing objectives so that accordingly it can plan
the activities (Sealy and et.al, 2014). Objective of marketing are discussed as below: Aware people with the brand: The main objective of marketing is the build brand
awareness among customers about NATIRI coffee shop so that people know about
company and its products (Santos. and et.al, 2014). That would help in attracting more
customers towards the brand. Target new customers: NATIRI coffee shop wants to target potential buyers those who
like to drink coffee and food and can afford it easily. By targeting new customers
company will be able to accomplishing its objective of increase profitability (Hescot and
et.al, 2013). Develop relationship with consumers: Another marketing objective of NATIRI coffee
shop is make good relationship with the consumers by providing quality drinks. With the
help of this cited firm will be able to accomplish its objective of increasing sales volume
and profitability to great extent (Arseculeratne and Yazdanifard, 2014).
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 To become market leader: Cited firm wants to be the market leader in the coffee
industry. Organization wants to gain competitive advantage and can make people loyal
towards the brand. This is only possible with the help of effective marketing strategies.
Target markets
NATIRI coffee shop wants to get established in the London well and it wants to open a
new coffee shop in the high street location Holborn Chacery(Starbucks Coffee’s Marketing Mix
(4Ps) Analysis, 2017). Company is aiming to increase its sales volume and want to get high
profit which is only possible when organization target to the correct audience. Target market for
NATIRI coffee shop are as following:
College students or youngsters:
Cited firm is targeting the college students because they like to spend some quality time
with friends and families. They like to give parties in coffee shops where they can enjoy a lot. It
is affordable by them because it is within their budget (Hescot and et.al, 2013). Youngsters take
pocket money from their parents and with this amount they can easily spend quality time and can
get quality products. The focus of NATIRI coffee shop on students. These are potential buyers.
They like to eat fast food and they want lunch in afternoon. This place is near to universities so
many students can come here in the mid time to have lunch or breakfast. Cited firm has kept
product's price low so that maximum students can come here.
Business workers
In many organizations people get frustrated with the hectic scheduled and they need
refreshment time. They like to spend some fresh time with their families. It brings new energy
among them. Thus, NATIRI coffee shop can target the professional persons. Apart from this
many big organizations conduct business meetings in such type of place. So company can also
target the firms those who arrange such type of meetings (Tsyhankova, Yatsenko and Zavadska,
2014). By this way cited firm will be able to enhance its sales volume and that will support in
gaining competitive advantage to the organization.
Adults:
NATIRI coffee shop's primary target market are men and women those who are between
age of 25 to 40. Company advertise its product s as per the needs of adults. These are such
people those who are having high income and they like to drink coffee because they think that it
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