Strategic Enterprise Planning and Business Plan for Coffee Square

This report presents a strategic enterprise plan for 'Coffee Square,' a proposed café aiming to provide high-quality coffee and a relaxing environment in the Woolworth area of Australia. The plan includes a mission statement focused on hygiene and health, objectives to become the best coffee provider in the region, and a USP centered on unique food items and a welcoming ambiance. It details the business background, registration, and start-up expenses, followed by a SWOT analysis identifying strengths like diverse offerings and weaknesses like high initial costs. The market segmentation strategy covers demographic, behavioral, geographic, and psychographic factors. The marketing mix outlines product offerings, pricing, placement, and promotion strategies. The plan also includes budget considerations, implementation steps, and financial projections, aiming for a 60% profit margin in the first year. The ultimate goal is to create a unique social space for customers to enjoy quality espresso and escape daily stresses.

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Strategic Enterprise Planning
Contents
Introduction......................................................................................................................................3
Mission statement............................................................................................................................3
Objectives........................................................................................................................................3
USP..................................................................................................................................................4
The business.....................................................................................................................................4
Business Background...................................................................................................................4
Registration details..........................................................................................................................5
SWOT analysis................................................................................................................................6
Market segmentation.......................................................................................................................7
Demographic segmentation..........................................................................................................7
Behavioural segmentation............................................................................................................7
Geographic segmentation.............................................................................................................8
Psychographic segmentation........................................................................................................8
Marketing mix...............................................................................................................................10
Product.......................................................................................................................................11
Price...........................................................................................................................................11
Place...........................................................................................................................................11
Promotion...................................................................................................................................11
Positioning Strategy.......................................................................................................................12
Budget............................................................................................................................................12
Implementation..............................................................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................15

Strategic Enterprise Planning

Strategic Enterprise Planning
Introduction
A business plan is a guide or a roadmap for the business organization that s planning to make
establishments or expansions in the new market regions. A business plan can also be considered
as a business document that comprises of all the details and data regarding a business idea that
the entity is planning to develop and establish (Finch, 2016). These days everyone loves caffeine.
Approximately 33 million cups of coffee are consumed in Australia every day. Which is a lot of
coffee? What makes it even more happening to join a café business are the low starting expenses
involved as compared to other business start-ups. In the scheme of opening a café, the cost is not
that much compared to the other businesses which involve a lot of money. The second aspect
which makes it even more appealing is that although it a food service business is that is the
biggest growing business and has high-profit margins than restaurants and that is an advantage.
Coffee café is also a very classy business and almost everyone wants to be acquainted with a
café that they visit often and tell their mates about. You will not find people that excited talking
about any other establishments that may like. Coffee cafes are so personalized because they are
third home for most of the visitors and travelers (Brinckmann & Kim, 2015). They are chilling
places where people often carry their laptops or books or office work or to even meet up with
their friends.
Mission statement
Providing the best quality of food items that to with keeping the factors on priority that are
“Hygiene and Health” will be the mission statement of Lexus. Coffee square.
Objectives
The objective of the café for the first year will to become the best coffee connoisseur in that
region and convert the profits from the very first month of operating. The target margin will be
60% initially. This will be possible by keeping designs that will not only be attractive to the eyes
of the customers but also be made for the operations which are efficient and fast (McKenzie,
2017). The employees will be trained for the best coffee an food service and preparation
techniques to be used to attract more customers. In addition to this, we will employ strategies

Strategic Enterprise Planning
which are focused on building a strong base for the customers' loyalty and to increase the sales of
the products with large margins like that of the espresso drinks.
The mission is to put in the best efforts to make a different and unique place for the customers
for socializing in a chilled out and comfortable environment to enjoy their best espresso in town.
We shall help them engage to leave back the stresses of life by giving peace of mind through
great service which is friendly with a great ambiance and location which convenient to locate
with best items on the menu to relish (Abam, 2018). The profits shall be invested in bettering the
satisfaction of the employees along with giving a satisfactorily return for the shareholders.
The shop will give the best taste in coffee to the customers. This will be done by using very high-
quality ingredients and procedure of preparation. The menu and the layout of the store will be
focused on making an increase in the sales for high margin in espresso drinks. Along with the
brewed drinks like tea and coffee, refreshing drinks will also be served who would want a
different take from caffeine. Snacks like salads and sandwiches will also be on the menu and also
coffee beans to take home for those customers who want to make their coffee at home. Every
product will be made with skimmed milk and soy milk will be given as an option.
USP
The USP (Unique selling point) of the Lexus Coffee square can be the food items and the
specialties served within the café. Moreover, the ambience and the environment plays a
significant role in attracting the visitors and the guests.
The business
Business Background
At some point of history, the Cadillac was famous, then came the Mercedes and after that came
the Lexus. Coffee square will be the Lexus of the coffee café business. It will be providing high-
quality service with a great ambiance and environment.
The biggest focus of this café will be to become a daily necessity for all those coffee addicts
around and make people rush to this café as they try to relax and forget the stresses of daily life.
It will be a very comfortable place for those people who want to meet up their friends or relax

Strategic Enterprise Planning
with a book. It will come like a package (Wynne, 2016). The demand for caffeine is increasing
and therefore a good service is important. We shall bring the best coffee to the table in that area
which will complement the books that they can enjoy reading while enjoying their coffee. The
café will work under a 900 square foot and will be located in the Woolworth area of Australia. It
will take approximately 200,000 capitals from ANZ bank for a loan.
Registration details
Business name
Lexus Coffee square
Business structure
Lexus Coffee square is under Ltd. structure.
Business location
Australia
Date established
28th May 2018
Business promoters
Promotional agencies are hired for making promotions and advertisements.
Start-up expenses
S.No. Particulars (Expenses) Amount
1 Rent 10800
2 Electricity 6560
3 Telephone 3240
4 Entertainment expenses 1123
5 Salary 120000
6 Conveyance 4560
7 Miscellaneous 1850

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8 Staff and Welfare 750
9 Mobile 1754
10 Stationery 965
11 Advertisement 8653
12 Raw material 3265
13 Wages 12450
14 Repair and Maintenance 1106
15 Disposable 3546
16 Cleaning 892
17 Website Expenses 695
18 Generator 2986
19 Rates and Taxes 4500
SWOT analysis
Strengths
One of the important angles are the various products and service which will be offered at the
café. A café which serves espresso, cappuccino or latte with books; along with it a great
ambiance for the customers to relax is promised. The prices might be high for the high-end
coffee but it will be given out according to the service and product (Armstrong, Kotler, Harker &
Brennan, 2015). Moreover, the business plan proposed is a different kind service as it wills one
of the first cafes with a bookshop in Woolsworth which is a good location for the potential
customers. The café has enough funds to implement the services which are technological and
skilled workers. The security of the customers is a priority as well. The biggest strength is the
informative books for the customers.
Weaknesses
A new café in the business has a high risk of being unsuccessful in many countries. Since it is a
new business in the industry factor like: not all Australians are book lovers some may like
reading but not that enthusiastically as in other countries which give way to an uncertainty of

Strategic Enterprise Planning
customers. The business is high priced for both the maintenance of equipment and books till it
will control the cost and time to complete the deadlines of the café, which affect the profit.
Opportunities
A café like the coffee square which will be growing franchise, some people like to have coffee,
some like spending time, some like alone time as well. In this way it is always occupied in so
many ways, the saturation is a good thing as well (Arrawatia, 2018). The target place is also
accessible to a big lot of people who like coffee and want to explore new places, new taste in
food and a new aroma. A lot of tie-ups with companies for sponsorships and promotions also
benefit the customers and the café and the partnered as well.
Threats
A lot of other tea houses and cafes to replace the proposed business especially would choose the
cheap ones. Similarly, there are many tea houses and other cafes which are available in the same
market, and also are cheaper (Baker & Saren, 2016). Australians are very practical, they choose
the alternative way of thinking which will cost them less. And also, the market trends choose the
healthy way of eating and drinking and coffee doesn’t come in the list which is not a good thing.
Although the sales and the profits will get high and the competitors arising are also expected.
Market segmentation
Market segmentation is the process in which a business divides the market of the potential
customers into the various groups and segments on the basis of some of the characteristics
(Chernev, 2018). Consumption of caffeine in Australia has shown an increase in the growth and
the strongest growth in the gourmet coffee. The economic ups and down in the past years up till
today has not refrained the coffee business from growing. The business is literally facing poor
sales, bankruptcy and negative balance sheets in some cases but still, the business has shown
signs of positive progress. The business will build loyalty amongst the customers by providing
the taste of coffee and an environment which is relaxing and ventilated and spacious as well.
The cafeteria coffee square is planning to open the new café in Woolworths supermarket stores
so that they can provide the wide options to their customers (Brand & Rolland, 2018). The
segmentation for the business is given below: -

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Demographic segmentation
This segmentation divides the customers on the basis of the age, income, occupation, gender, and
many other factors (Schramm, 2018). Over here, the cafeteria segments the both male and female
with the different age groups and the customers that belong to the low, middle and high-income
groups. This customer segment includes bachelors, single people, married couples, young
children and many others.
Behavioural segmentation
This segmentation makes the differentiation between the customers on the basis of behavior,
usage and the decision making. Coffee square café considers this market segment because they
know the fact that there are numerous numbers of people who consume coffee on daily basis
(Hollensen, 2015). Along with this, the customer who visits the supermarket like to consume
coffee whenever they shop at stores because this is the way through which they can make
themselves refresh. Most of the people make the quick decision for the coffee.
Geographic segmentation
Coffee square café will offer the services to the local customers who visit the store in Australia
(Baker, 2014). Therefore, it can be said that the company will offer its services to the rural and
urban region in Australia.
Psychographic segmentation
The company considers this market segment because this segment differentiates the people on
the basis of social class and lifestyle (Wilson and Gilligan, 2012). The coffee is one of the
products which are considered as the part of the lifestyle of people. Therefore, the people of
Australia like to consume coffee as a primary product.
Demographic environment
Demographics are the study of human population in terms of density, sex, race, occupations, and
size. The demographics in Australia have transformed the marketplace into a more fragmented
micro market from a mass market which is differentiated by factors like sex, age, education, and
ethical background. The recent demographics show that they are now more educated and white
collared, changing in age structures. Such changes make the organizations design programs and
products for certain micro market which they want to target. All the demographic variables

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potentially affect the instant coffee market and significantly in the micro markets (Burch, 2018).
The ethnic markets are a part of the growing Australian market population who has a clear brand
preference. They demand a variety of coffee styles to fit the tastes which make for the
development of new marketing strategies. Like most of the coffee is preferred is espresso by
Italians that is why they have invented instant options.
Economic environment
Consumers have the purchasing power in the Australian market as like any other market to back
their desire up for the products. Although there is an important basis of competition of the coffee
products and changes for the prices and a big effect on the manufacturers market share.
Economic factors do have an effect on the Australian market which includes the Australian
dollar. The coffee beans are from various countries and the rates also vary with relative exchange
rates. The Australian dollar has a low value currently which drives the input prices of the
manufacturers passing it onto the customers.
The association of coffee producing countries accounts for the three-quarters of the world coffee
bean production which announced the plans to control the prices. And the possible effect is yet to
be known which will drive small-scale manufacturers out of the market for if the prices go too
high.
Natural environment
Since the coffee producers use the natural environment it is also important for the macro
environment of the Australian coffee industry. The consumers are boycotting the products which
are manufactured to damage to the environment. This puts the pressure on the manufacturers to
make sure of all the procedures which are environment-friendly. Issues which involve coffee
producers using pesticides and pollution from the plants, water wastage and land erosion and
depletion of minerals.
Technological environment
Ever since coffee was discovered in 1000AD the techniques to harvest, grow manufacture or
process the coffee products has changed. The fertilizers, machinery and the irrigation systems are

Strategic Enterprise Planning
automated now which has increased efficiency and also improved product quality. The recent
factors are the advances in processing and development of coffee machines to be used at home.
The technologies have made it possible to produce a very wide range of coffee variety with a
high quality. Like Nescafe has introduced a café latte range for instant espresso. And the freeze-
dried technology for increasing the shelf life of the product which is such an advantage. In the
past few years, the inexpensive coffee plungers have improved the attractiveness of coffee
products which are pure. Most importantly the internet shopping is allowing the customers to get
it from the suppliers straight away as well.
Political environment
The Australian market is subject to a lot of laws to regulate the business of the café including the
food and health norms, pollution promotions and labeling. Although it doesn’t affect that much
on the Australian market.
Cultural environment
Many changes in the Australian culture and the emergence of new cultures have had a large
effect on the café business in Australia. Anybody who is very serious about contemporary
Australians will understand their behavior. The recent trends show that the Australians are very
concerned about the health issues, diet, stress, and fitness. They prefer decaffeinated products
more now. The era of coffee the real coffee culture might be growing. People who don’t drink
coffee are becoming connoisseurs of coffee. It is not just a product anymore but a self-
expression. There also has been the culture of subcultures which is a group of people who share
values based systems like situations and common experiences of life.
Marketing mix
The marketing mix is defined as the set of actions, tactics that the company make use to promote
the brand or product in the market (Schmidt, Spann & Zeithammer, 2014). The marketing mix
strategies of the coffee square cafe are discussed below that the company is willing to open.

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(Source: Marketing Mix 2018)
Product
The product is one of the important elements of the marketing mix which is an item that is
produced to satisfy the requirement of the people (Kotler, 2015). The main product of the café
will be coffee along with some snacks such as bakery items, toast, and dietary products. In
Australia, the people are diet conscious due to which the company decided to offer coffee with
some healthy products. This reflects that the company will make use of the differentiation
strategy in the products (Boehe and Cruz, 2010).
Price
The price is the amount that the customer pays to enjoy the service (Kotler, 2015). The price on
which the café will offer the coffee is $ 3.00. This price is the lowest price because Café square
is known for the offering the product at the low prices with the best quality. Along with this for
the snacks, it varies to the different types of the dishes and the same goes for the bakery
products. The price for the toast that will range from $40-45 and that will base on the ingredients
of toast.