Research Dissertation: Indian Coffee House Business Idea

This report presents a comprehensive business idea for an Indian Coffee House, focusing on the New Zealand market. The business plan includes a realistic description of the business, mission statement, and unique selling points, emphasizing Indian coffee blends and flavors to attract the target market. The report analyzes key transactional relationships, partners, and stakeholders, highlighting the importance of customer satisfaction and employee relations. A PESTLE analysis identifies political, economic, social, technological, environmental, and legal issues affecting the business. The report also details potential customers and stakeholders, including market analysis and customer needs. It further analyzes competition and develops marketing strategies, including product, pricing, placement, and positioning strategies, along with critical success factors. The business aims to offer a unique coffee experience with Indian flavors and blends, providing both coffee drinks and beans, and creating a comfortable environment for customers.

Research Dissertation
(A Business Idea of Indian
Coffee House)

Table of Contents
BUSINESS IDEA............................................................................................................................2
Realistic description of the business idea and mission statement..........................................2
Innovative and unique selling points are well justified..........................................................3
Key transactional relationships, partners and stakeholders are described..............................5
Key issues using analytical framework such as PESTLE .....................................................6
POTENTIAL CUSTOMERS AND STAKEHOLDERS................................................................6
Identify and describe customers, partners and stakeholders..................................................6
Analysis of customer's needs, wants, preferences and characteristics...................................7
Estimate the number of customers and expenditure expected................................................8
ANALYSIS OF COMPETITION AND MARKETING STRATEGIES......................................10
Strengths and weakness of competitors................................................................................10
Marketing strategies are develop based on these findings and industry..............................10
Marketing includes realistic product, pricing, placement and positioning strategies...........11
Critical success factors.........................................................................................................12
REFERENCES .............................................................................................................................13

Illustration Index
Illustration 1: Gift pack of coffee sachets........................................................................................4
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BUSINESS IDEA
Realistic description of the business idea and mission statement
The product offered to customers is of superior quality Indian coffee blended with
western touch. However, it involves roasted and unroasted coffee beans. The product that is
focused by entrepreneur to serve within coffee shop is “Espresso” which is Indian coffee made
from selected coffee beans. Such product is selected because of majority of Indian people
residing in New Zealand (Davenport & Beck, 2013). The present business idea includes Indian
Coffee House and firm focuses upon involving different blends and flavours of coffee to attract
customers. Main significance is given to Indian filter coffee made from coffee beans procured
from varied states of India so that Indian customers can be attracted towards business. Hence, it
helps in increasing the sales and profitability of firm. Business aims to serve different flavours
and blends of coffee to target market and satisfy their needs. They also involve organic coffee
within their menu as it is currently the need of clients (Matzler & et.al., 2013). Thus, the product
category is classified upon its flavours and concentration of coffee. Indian Coffee House can be
innovative and unique by undertaking these major steps within their business-
 Carefully navigate the trends
 Need to hire skilled employees
 Free Wi-Fi to attract customers
 Small library so that coffee lovers can spend their time reading their favourite authors
 Build a culture of taking good care of people
 Gift packaging of coffee sachets
Further, in order to grow in the market and overcome international competitors, firms
should involve varied list of coffee products in order to meet the needs of diversified consumers.
It is also essential for business to value its customers needs and identify the coffee culture in
New Zealand. As people living here demands high quality coffee involved with different
flavours. Firm also focuses upon providing roasted and unroasted coffee beans to people who
prefer to use homemade coffee (Zikmund & et.al., 2013). Therefore, in order to become
successful in market, firm needs to offer wide range of coffee flavours to satisfy each and every
individual needs. Coffee business is very effective in New Zealand because people living here
considered coffee as an essential pat of their social life.
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Mission statement
Mission statement of Indian Coffee House will make its best effort to create a unique
place where customers can socialise with each other in a comfortable and relaxing environment
while enjoying the best coffee or espresso (Voigt, Buliga & Michl, 2017). Firm focuses on
providing assistance to customers to relieve their daily stress and provide convenience to clients
by delivering friendly environment in the coffee shop.
Innovative and unique selling points are well justified
Such business idea shows an unique selling point which helps in attracting customers
through which they will wish to visit Indian Coffee House again and again. Through opening
such as new coffee house in New Zealand is very best idea as target people living here are
mostly Indians. Thus, they would love to drink Indian flavour coffee. However, there are several
coffee shops in NZ but when comparing it with Indian Coffee House, it will provide a unique
blend of coffee experience to customers. As firm is focusing mainly on providing coffee over a
book, health and safety reasons (Gluck, 2013). Proper quality standards, hiring good people etc.
to satisfy customers needs. Thus, it is the best way to build competitive edge over rivals. Firm
also proves to have unique selling point and provide both roasted and unroasted coffee beans.
Main USP is that within NZ there is no other coffee house that is providing coffee with Indian
blends and flavours. Further, business is also planning to provide coffee beans in small sachets as
a gift packing so that coffee lovers cab be attracted towards the firm. Indian Coffee House
business idea is very innovative because youngsters of New Zealand prefer coffee as part and
parcel of their social life. However, both the genders prefers to use coffees effectively. Thus,
firm can identify the demand and feasibility of coffee in market. Hence, offering different
flavours particularly with Indian blend helps entrepreneur to create a strong foothold in thriving
coffee industry of New Zealand (Chua & Banerjee, 2013). Hence, through this the business idea
has been originated. As there are various coffee shops exists in New Zealand but they offer
limited varieties of coffee in their menu. But such firm is providing various blends of coffee i.e.
Indian coffee beans as well as other coffee flavours so that success can be attained in an effective
way. Also, the mode of selling coffee is innovative which is used for both coffee drinks and
coffee beans. There are different retailing stores started across different locations of New
Zealand and thus obtain fruitful results. Such innovative business idea focuses upon providing
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best coffee flavours to consumers which facilitates firm to grow the business and enhance sales
and profitability (Schmidt & Cohen, 2013).
Further, the unique selling preposition of coffee shop is its ability to provide various
blends of Indian as well as other varieties of coffee under single roof. However, such type of
preposition helps in making the business unique and successful. Firm also provides different
coffee drinks i.e. roasted and unroasted to gain competitive edge over rivals (Zhang, 2013). It
can be assessed that offering different flavours assists in gaining competitive advantage within
coffee industry. Business aims to strengthen its USP by involving Indian as well different
flavours of coffee to satisfy the needs of worldwide customer base. Company can obtain USP
because the existing coffee shops within New Zealand offers limited varieties of Indian Coffee
and not other coffee blends therefore, firm should focus upon providing both Indian as well as
other blends of coffee to provide different varieties of coffee to consumers (Furnari, 2014).
Competitive advantage
Indian Coffee House develops different unique business ideas in order to attain
competitive edge over rivals such as-
 Offering coffee in gift packets- It is a unique idea i.e. business is offering coffee in the
form of small sachets and in gift packing to attract coffee lovers.
Illustration 1: Gift pack of coffee sachets
(Source: Zikmund & et.al., 2013)
 Serving clients 24*7- It is another competitive edge that Indian Coffee House is
available for clients 24*7 so that whenever they feel low they can come to coffee shop
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and refresh themselves. Also, employees working here are very friendly that keep the
customer happy and satisfied (Clark, 2013).
 Low price coffee- As in NZ there are 1000 of coffee shops therefore Indian Coffee
House needs to be remain competent by offering coffee at low prices as compared to
other competitors.
Key transactional relationships, partners and stakeholders are described
Entrepreneur is required to maintain effective relationship with employees through
providing them better salaries and rewards which assists them to maintain effective quality
standards within business. It also assists in developing brand image of firm in market. It can be
assessed that there are different partners required to form a business idea into action. There are
different partners involved in order to formulate the business decision so that success can be
attained. Here, consumers play a significant role in order to improve recent growth in coffee
industry. In addition to this, such factors involves different exotic and unique products in regard
to provide a good selling opportunity for coffee lovers (Clark, 2013). Also, starting such a new
venture requires fund and thus investors are required to invest a sum of money and thus they will
be given fair return on their investment in the form of sharing profits among each other. Here,
employees are also play a crucial role as they are required to identify the needs of customers so
that required products can be delivered to them so that set results can be attained. Thus,
providing different varieties of coffee beans to consumers as per their choice so that they needs
can be satisfied (Gluck, 2013). It helps firm to enhance their sales and profitability. It is essential
for firm to maintain effective relationship with their partners and stakeholders so that better
results can be attained. Transactional relationship assists in improving the interaction among
workers so that they can provide best services to consumers so that their satisfaction can be
attained. Main key transactional relationship is among customers and owners of Indian Coffee
House so that payment can be provided by consumers to owners (Fleisher & Bensoussan, 2015).
Furthermore, developing crucial relationship with stakeholders play a significant role in
order to bring positive results so that set results can be attained. In regard to achieve desired
objectives different stakeholders are involved such as workers, customers, shareholders and
suppliers etc. so that all these are interested in regard to enhance the business performance
towards objectives. Business also possess partnerships with different individuals in order to
invest money in the business and thus gain desired profits (Barabási & Frangos, 2014).
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Key issues using analytical framework such as PESTLE
It assesses that there are different issues being faced by coffee shop in New Zealand that
can be evaluated through PESTLE analysis such as-
 Political- New Zealand is a democratic country but it involves different political issues
such as government introduces different legislation at the time of introducing new
policies and practices so that it needs to be overcome to attain desired results (West,
2012).
 Economic- In the current time, country is facing economic slowdown thus opening
coffee shop will affect the firm's success. Also, residents are not having enough money to
spend on their daily needs instead of buying a coffee (Fuller, 2016). However, New
Zealand is a high income country with a total GDP of $167.3 billion in the year 2012.
 Social- The social needs of consumers living in New Zealand is coffee lovers. It means
that people here think that coffee is a part and parcel of their daily lives. Thus, it is
essential for coffee shop owner to provide wide range of variety to consumers in order to
satisfy their needs (Alsos, Carter & Ljunggren, 2014).
 Technological- Further, business needs to identify its issues regarding implementing
innovative technology so that they can offer innovative coffee to its consumers in order to
attract them towards firm (Stosic & et. al., 2016).
 Environmental- It is also essential for coffee shop to clean its environment and does not
impact it by polluting. Therefore, they should not use plastic cups and thus use recyclable
glasses (Kotler & et. al., 2015).
 Legal- There are different legal regulations that influences firms business. Therefore, it is
essential for enterprise to follow different regulations so that they can enhance business
objectives (Gassmann, Frankenberger & Csik, 2014).
POTENTIAL CUSTOMERS AND STAKEHOLDERS
Identify and describe customers, partners and stakeholders
Indian Coffee House target mainly Indian customers and provide them Indian blend of
coffee. Moreover, outlet is open for every customer as firm also provides different tastes and
flavours of coffee. Mainly the target population is young customers between the age group of 18-
30 years who are attracted towards coffee. It can be assessed that there are different potential
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customers who are attracted towards coffee shop in New Zealand. Customers attracted towards
coffee shop is 18-30 age groups. Youngsters living in New Zealand adapt coffee culture as they
think its of primary importance. Also, business aims to provide different blends of coffee so that
they can attract wide range of consumers so that target market can be attracted (De Anca &
Vega, 2016). Also, there are different partners that play a crucial role within coffee shop and
stakeholders involves customers, employees, shareholders, suppliers etc. All these people helps
in providing efficient services so that set results can be attained in an effective and efficient way.
Customers are of crucial significance within firm and thus it increases the profitability of firm so
that business focuses upon both male and female (Amit & Zott, 2012). Hence, providing
effective coffee experience to clients helps firm to retain them for long term.
Through identifying different stakeholders working within business it can be assessed
that there are different groups of people working within firm so that desired results can be
attained. Also, it is crucial for coffee shop to identify its potential consumer base and thus
provide them varied forms of coffee in order to enhance their satisfaction level. Further, there are
different partners involve in business in order to lead the business towards success (Davenport &
Beck, 2013). Coffee business involves different stakeholders among which employees play a
significant role and thus they need to identify the needs of consumers so that success can be
attained.
Analysis of customer's needs, wants, preferences and characteristics
It can be assessed that business is required to analyse customer's needs, wants and
preferences so that individual needs can be attained. It is the best way through which
expectations of clients can be satisfied in regard to obtain best results. Employees and owners of
coffee house are required to identify the needs and preferences of consumers and then provide
them particular products so that desired results can be attained (Matzler & et.al., 2013). Thus, it
is essential for firm to identify the needs of clients and then deliver them products to satisfy
consumers preferences. Customers of New Zealand assesses that they are satisfied from the
services offered and thus firm is required to provide best variety of coffee in order to attain
satisfaction. Needs and preferences of consumers needs to be identified by firm so that it can be
fulfilled appropriately in order to satisfy individual needs (Schmidt & Cohen, 2013). Hence, it is
essential for coffee house firm to undertake effective techniques so that set results can be
attained effectively and efficiently.
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Competitor analysis
Proper competitor analysis is done within Indian Coffee House i.e. firm offers
competitive prices for its customers so that they can be attracted towards shop. Further, wide
range of services are provided to clients that helps firm to attract Indian people and become
happy and satisfied. Customer types are mainly Indian people living in New Zealand are
attracted towards Indian Coffee House and visit their with friends and family to taste the Indian
flavoured coffee (Amit & Zott, 2012). Therefore, it is essential for entrepreneur to meet the
expectations of customers and provide them best taste of coffee so that they can be satisfied.
At the time of starting new business venture it is significant for firm to adopt effective
techniques so that consumers taste and preferences can be identified in order to enhance the sales
and profitability of firm in market. Through identifying the needs and wants of consumers,
business aims to bring positive results so that success can be attained in an effective way. Hence,
it is essential for coffee house owners to assess the individual needs and preferences so that best
results can be attained (Clark, 2013). Following is the Porter Five Force model for Indian Coffee
House in New Zealand is as follows-
 Bargaining power of buyers- It is high within NZ as demand of coffee is very high as it
is included as basic necessity of individual at the start of the day. As there are various
competitors of Indian Coffee House in NZ but cited firm focuses upon customers taste
and preferences in order to influence their needs and enhance sales and profitability by
satisfying customer's needs. Here, it can be assessed that there are several competitors
such as Millers Coffee, Havana Coffee Works that are changing more than $9 for a coffee
therefore, it assists Indian Coffee House to attract customers as firm is charging between
the range of $4-$6 and enhance customer base.
 Bargaining power of suppliers- Most of the coffee houses possess little control over the
prices because of presence of large number of suppliers of raw materials. Here, input
prices are very low therefore Indian Coffee House is able to sell its coffee ranging from
$4-$6.
 Competitive rivalry- It is high within NZ as there are various competitors present selling
coffee to clients. It involves Millers Coffee, Havana Coffee Works, and Red Rabbit
Coffee Company etc. that are crucial competitors of Indian Coffee House. Thus, firm
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requires to give tough competition to rivals by focusing upon its services and rending best
quality coffee at cheap prices in order to attract customers.
 Threats of new entrants- It is high as coffee demand is very high in NZ and firms are
focusing upon identifying innovative ways of popularizing their coffee and obtain strong
brand image. Other businesses are focusing upon adopting unique services but as they are
not able to compare with Indian Coffee House as firm is providing several services such
as Free Wi-Fi, book over a coffee facility, gift packing of coffee and building a good
culture of helping customers etc. Thus, providing all such services helps Indian Coffee
House to become unique and enhance its sales and profitability. Here, Business also aims
to adopt effective quality products as compared to rivals so that customer satisfaction can
be attained.
 Threat of substitutes- There is a high threat of substitute products due to launching of
new product categories by competitors. All such products influences consumers demand
and enhance their buying decision. For instance, competitors are focusing upon
introducing different food items in menu list and attract customers. Therefore, it is
essential for Indian Coffee House to enhance its menu list and involve fast food items so
that customers can be attracted.
Competitor
names
Service range Price range Product range Quality
Millers Coffee Low High Moderate High
Havana Coffee
Works
Moderate High Low High
Red Rabbit
Coffee Company
High Premium Wide Moderate
Indian Coffee
House
Moderate Moderate Wide High
On the above analysis, it can be considered that the main competitors of Indian Coffee
House is Millers Coffee and Red Rabbit Coffee Company and thus they give tough competition
to firm. Therefore, it is essential for firm to bring uniqueness within our company by bringing
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competitive advantage so that sales and profitability can be enhanced. It is essential for firm to
enhance its product range as per customers taste and preferences and charge low prices to
enhance customer base.
Estimate the number of customers and expenditure expected
In regard to estimate the number of customers and expenditure incurred within years that
is as follows-
Estimation of number of clients
Year 1 (£) Year 2(£) Year 3(£)
Number of customers 1500 2000 2500
Average price for coffee 3.7 4 6
Revenues 5550 6000 12000
Cash flow statement
Pre-Operating
Year Year 1 (￡) Year 2 (￡) Year 3 (￡)
CASH INFLOW
Opening Balance 0
Sales 0 5550 6000 12000
Owner's fund 1000
Bank Loan 3600 50000 70000 80000
Total Cash Inflow 4600 55550 76000 92000
CASH OUTFLOW
Working Capital 3450 0 0 0
Legal and Registration Charges 400 0 0 0
Market Research 250 0 0 0
Marketing and promotional 500 2500 2625 2756.25
Purchases 1665 1800 3600
Utilities (Electricity & Phone) 0 277.5 300 600
Interest on loan 274.68 238.68 238.68
Rent on premises 0 3500 3675 3858.75
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