Business Plan for Live Case Cafe: Strategies and Analysis

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This business plan outlines the strategy for Live Case Cafe, a cafe designed to cater to university students and staff. The plan includes a situation analysis, SWOT analysis, and a detailed marketing environment assessment. It emphasizes the cafe's unique selling points, such as herbal coffees and teas, customizable organic food menus, and eco-friendly practices. The plan targets the university student and staff market, employing segmentation and positioning strategies that focus on offering a relaxing environment, student discounts, and sustainable practices. The plan addresses the threats and opportunities in the market, emphasizing the importance of customer service, sustainable marketing, and customer relationship management. The report also includes a storyboard template and references for the proposed business. The plan highlights the importance of attracting customers through social media marketing and creating a student-friendly ambience. The plan focuses on attracting customers by offering eco-friendly practices and student discounts, providing a unique niche in the coffee industry. The report also analyzes the importance of attributes that need to be improved, maintained, and deemphasized based on the mystery shopping experience, and the importance of environmental sustainability.
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Running head: BUSINESS PLAN OF LIVE CASE CAFE 1
Business Plan of Live Case Cafe
[Author Name(s), First M. Last, Omit Titles and Degrees]
[Institutional Affiliation(s)]
Author Note
[Include any grant/funding information and a complete correspondence address.]
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BUSINESS PLAN OF LIVE CASE CAFE 2
Table of Contents
PART 1.................................................................................................................................3
Introduction..........................................................................................................................3
Situation Analysis................................................................................................................3
Live Case Café.................................................................................................................3
SWOT Analysis...............................................................................................................4
Marketing Environment...................................................................................................5
Threat of new entrants.................................................................................................5
Threat of substitute products or services.....................................................................5
Target Market, Strategy and Positioning.............................................................................6
Segmentation...................................................................................................................6
Target Market Strategy....................................................................................................6
Positioning.......................................................................................................................7
Importance.......................................................................................................................8
Sustainable Marketing.....................................................................................................9
Environmental..............................................................................................................9
Social...........................................................................................................................9
Economic...................................................................................................................10
Conclusion.........................................................................................................................10
Part 2..................................................................................................................................11
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BUSINESS PLAN OF LIVE CASE CAFE 3
Introduction....................................................................................................................11
Body...............................................................................................................................11
Conclusion.....................................................................................................................12
Story Board Template........................................................................................................14
References..........................................................................................................................15
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BUSINESS PLAN OF LIVE CASE CAFE 4
PART 1
Introduction
The following business plan is with regards to opening a new café named ‘Live Case
Café’. Live Plan Café is determined to become a daily necessity for university students and staff
members in the proximityof the college campuses. This place would be an escape from the daily
stresses of life and a comfortable place for people to relax, read a book, enjoy high-quality herbal
coffees and teas, organic cuisine and a great service. The plan proposes to make Live Case Café
a unique place by adopting marketing strategies aimed at building a loyal customer base as well
as encouraging people to adopt eco-friendly measures to conserve the environment. The primary
data collection will be identified through a mystery shopping and secondary sources will identify
the ways to bring innovation in the café business. The limitation of the proposal can be
competing with the existing cafés adopting the concept of organic food and eco-friendly
ambience.
Situation Analysis
Live Case Café
Live Case Café is a unique place where customers can socialize and enjoy conversation
with each other in a relaxing and healthy environment while enjoying different varieties of herbal
coffees and teas along with a customizable organic food menu in town. The café will be in the
business of helping university students and staff members to relieve their stresses by providing a
piece of mind through a soothing ambience, friendly customer service and high-quality organic
range of food and beverages. The café will also consider sustainable options and eco-friendly
measures to cut back on environmental damage (Zientara&Bohdanowicz,2016).The availability
of herbal and organic products in the food menu that is customizable as per the customer choices
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BUSINESS PLAN OF LIVE CASE CAFE 5
will contribute to the uniqueness of the café (Brown, 2018). The café will also encourage the use
of recycled content takeout containers for dine-in customers and consider sustainable interior
décor which can be a perfect solution to incorporate green business practices. Notifying
customers about the green practices and unique servings in the café can foster their trust to show
that it is doing the best to protect the environment by use of innovative marketing endeavors and
use of social media (Thong& Wong,2018).
SWOT Analysis
Strengths Weaknesses
The café adopts a unique concept of
using eco-friendly measures and
friendly customer service.
A unique blend of products ranging
from herbal teas, coffees, organic and
fresh local produce dishes, and options
for vegan dishes.
The food and beverage menu can be
customizable according to customer
preferences
A calm and relaxing ambience with
dim lights making it perfect for the
target audience to relax.
The changing demands of customers
and services to cater to their needs.
Rising competition due to surrounding
cafés in the vicinity.
There is a high possibility of food
wastage as many new customers might
not like the concept of organic food.
The availability of seasonal produce
for food to be served.
Opportunities Threats
The opportunity lies with the wide
target market in the area.
There is an opportunity in the rise in
number of suppliers in the market for
local produce.
The opportunity of local expansions in
the area by targeting several other
university campuses.
The use of Application based food
ordering can cater to the needs of the
customers.
There is a possible threat from nearby
cafés adopting a similar concept. This
gives a risk of imitation of the concept
and increased competition.
Weather conditions can affect the
supply from the local produce.
Service quality and changing demands
of customers will require looking for
better options to cater to their needs.
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BUSINESS PLAN OF LIVE CASE CAFE 6
Marketing Environment
Threat of new entrants
According to the Porter’s five forces model, the threat of new entrants, help in shaping
the competitive structure in any given industry (Harding,2017). Since Live Case Café is a new
entrant in the market, it will involve a specified investment inclusive of real estate costs and raw
materials procuring cost and equipment. The barriers to entry are low making it easier for
competitors to enter into the market. This can be result in lower switching cost and low
restrictions making the threat of new entrants high. However, the café will be able to attract more
customers with the help of its unique offerings and eco-friendly measures to contribute to
environmental safety.
Threat of substitute products or services
The café can always face the threat of substitute products or services due to availability
of other substitutes such as juices, soft drinks, alcohol-based drinks, and other coffee and non-
coffee drinks. The possibility of threat from substitutes is high considering the price sensitivity of
consumers to the price of herbal coffees and teas and other substitutes available (Nagle &
Müller,2017).Since the cost of living of customers and cost of price of alternate products are
subjective to each other, it might be difficult to determine the possible theat. A lower cost of
substitute products may lead to driving away customers towards it even by compromising with
the benefits of the café’s healthy menu options.
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BUSINESS PLAN OF LIVE CASE CAFE 7
Target Market, Strategy and Positioning
Segmentation
The primary target customers for the cafe would be University students and staff. As a
result, the University campuses would have an extremely important role to play with reference to
the facilitation for the cafe to set up its branches. As a result, it would be quite feasible for
students and lecturers to unwind themselves at the cafe after tiring session of lectures. Offering
student discounts would lead to a huge attraction of students at the cafe thereby providing an
incredible ambience and a relaxed atmosphere (Menon, Bharadwaj, Adidam& Edison, 2015). A
group of students along with their lecturers may find a suitable environment with reference to the
discussions to be made in relation to the lecture sessions as far as addressing the queries in an
appropriate manner is concerned. It is imperative that the universities would act as a great target
market for the cafe as far developing a proper clientele is concerned. The cafe live case would be
able to generate huge profits through the attraction of huge number of customers in the form of
students and staff. It would also help in fostering an amicable relationship between the students
and the staff as far getting to know better is concerned (Baker, 2016). It would also act as centers
for ice-breaking sessions amongst students as far as conversations and one to one verbal chat are
concerned. It would also help the students to discuss about their group projects by the virtue of
coffee and tea sessions and working upon the projects accordingly.
Target Market Strategy
The strategy to attract customers must be designed in such a manner that the needs of
students and staff are catered properly and appropriately (Olson, Slater, Hult, & Olson, 2018).
Apart from the academic buildings, the studentunions would also be targeted by the cafe live
case as they would enable students to enjoy a cup of coffee or tea after a long discussion over
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BUSINESS PLAN OF LIVE CASE CAFE 8
various issues at the studentunion pertaining to the proposed changes to various policies of the
University (Baker &Saren, 2016). Providing a student friendly ambience with dim lights and
attractive furniture would be quite helpful for the cafe live case as far as environment
maintenance is concerned. The herbal remedies of tea and coffee along with junk free food
would provide health benefits to students and staff. Additionally, such aspects would help
students to be stress free and concentrate on their studies in a better manner (Wensley, 2016)..
The social media platforms would also have an extremely important role to play with regard to
the with regard to the attraction of customers as far as Integrated Marketing Communication is
concerned on part of cafe live case. It would attract more and more students as they access social
media platforms on a regular and frequent basis. Such strategy is expected to be quite effective
and efficient.
Positioning
The aspects of organic food and student discounts would play a key role for the cafe live
case as far as competitiveness is concerned. Most multinational cafes have exorbitant charges
with no discounts for students and also promote junk food to a huge level (Hansen, McDonald &
Mitchell, 2017). Additionally, the eco friendliness on part of cafe live case with reference to the
offering of discounts to customers carrying their own coffee mugs would also play a key role in
the competitiveness of the cafe live case as far as the apprehensions of the general public are
concerned (Kanagal, 2015). It is imperative that the spreading of awareness with reference to the
importance concerning eco-friendliness on part of the cafe live case would play an extremely
vital role as far as helping it to climb a higher position is concerned. Customer friendliness with
the attribute concerning the help provided to customers to make various choices over food based
on their tastes and preferences along with the delivery of services in a timely manner would play
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BUSINESS PLAN OF LIVE CASE CAFE 9
an important role in the competitiveness for the cafe live case as far as Customer Relationship
Management is concerned (Kumar &Reinartz, 2018). It would further result in the attraction of
more and more consumers, especially those who are health conscious and want to enjoy various
sessions at the cafe rather than spending most of their time worrying about their health. As a
result, cafe live case would be able to carve a niche of itself in the coffee industry thereby being
provided with the opportunity to reach its zenith.
Importance
Attributes to improve
Management of Queues
Reduce Waiting times
Dim lights
Privacy
Attributes to maintain
Variety of options
Cost effectiveness
Helping customers and visitors with menu
selection
Attribute to maintain
Staff courteousness
Customer Relationship Management
Attributes to deemphasise
Nothing specific
As per the experience based on the Mystery Shopping, it is observed that the there are
some improvements to be made as far as incorporating them in the marketing strategy of cafe
live case is concerned. It would also reduce the pressure and workload over the staff to a
considerable extent thereby reducing the scope of making errors in taking orders as a result of
stress. Another grey area to be addressed based on the Mystery Shopping experience is to
provide a platform for customers with regard to their privacy. The attributes that are to be
retained on part of cafe live case based on the Mystery Shopping experience imply the varieties
of options for customers as far as their tastes and preferences are concerned.
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BUSINESS PLAN OF LIVE CASE CAFE 10
Sustainable Marketing
Environmental
As aforesaid, the products served by the cafe live case are quite eco-friendly in nature. It
is imperative that the environment is being taken care of with regard to the health benefits
associated with the food products of cafe live case. Furthermore, the University campuses are
free from the hustle and bustle of the central areas of the cities thereby providing salubrious
surroundings for the students to relax and unwind after a tiring day of lectures (Charter, 2017).
Such a scenario is also applicable to professors. The dim lights and the aspect of privacy also
lead to the upholding of the dimension related to environment on part of cafe live case as such an
ambience is quite soothing in nature. As a result, more and more customers would be attracted to
cafe live case due to the friendliness with regard to environment is concerned with regard to
customer service.
Social
It is imperative from the abovementioned content that the cafe live case is intended to
market itself at the social level by the virtue of catering to the demands of customers based on
their tastes and preferences. It would help in the attraction of more and more customers thereby
serving at the social level in an effective and efficient manner (Lovelock & Patterson, 2015).
Additionally, activities relating to Corporate Social Responsibility would also play an extremely
essential role with regard to the contribution towards the society at a huge level. It includes
making financial donations to charitable trusts and organizations along with community service
organizations from the amount of money disbursed by customers with reference to their orders.
The voluntary activities on part of cafe live case also implies the social dimension with regard to
the serving of people as far as attraction of more and more customers is concerned.
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BUSINESS PLAN OF LIVE CASE CAFE 11
Economic
The aforesaid content implies that the economic aspects pertain to the cost effectiveness
approach for the customers by providing student discounts and food products at cheaper prices in
comparison to the competing coffee joints as far as the market in question is concerned.
Discounts for customers with their own coffee mugs are also an important dimension on part of
cafe live case as far as the economic aspect is concerned. Additionally, the economic dimension
may also include the aspect of offering discounts on iced drinks in summers and drinks such as
hot chocolate during winters in order to attract more and more customers. It would lead to the
increase in sales on part of cafe live case thereby resulting in the generation of huge profits and
revenues. However, the economic policies in force would also have a massive role to play as far
as the economic dimension of cafe live case is concerned.
Conclusion
It is observed from the findings that the business plan about the setting up of cafe live
case would be quite beneficial not only for students and staff at the universities put also the
owners and founders along with the employees taking account of the various aspects and
dimensions as aforesaid. These findings imply that the cafe live case would be established in an
incredible manner thereby attracting a huge number of customers. Off late, it has been reported
that cafe live case is planning to launch an App as far as marketing in an effective and efficient
manner is concerned. The findings imply that it would play an extremely vital role as far as the
preparation of an appropriate pitch for the App is concerned. The main goal with regard to the
App pitch implies that it would provide delivery services in a timely manner thereby deriving a
comprehensive solution for the customers. As a result, the appropriate App pitch would help in
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BUSINESS PLAN OF LIVE CASE CAFE 12
the serving of various kinds of customers on a priority basis as far as preventing them from being
embroiled into unnecessary hassles are concerned.
Part 2
Introduction
The mobile application for the coffee shop business would aim at procuring certain
objectives. The objectives would include location and localization, royalty programs, hassle free
fulfillment of orders, targeting the millennial people, getting online reservations, improving the
services of the coffee business, attaining a social media advantage, getting reviews and feedbacks
regarding the products and services of the business, increasing an enhancing the overall return on
investment, providing customers with a digital menu, a one-touch dialing feature and coupon
redemption, and finally increase the reward & referral program. The mobile applications would
attract the customers locally, who might be walking within the premises of our business. As such,
the customers who might be walking closely, we can send them push notifications within the
application for informing them about our ongoing offers regarding discounts, or dessert of the
day, special events, etc. This would help in eliminating the process of decision-making of our
users when they want to have coffee. The application would provide loyalty program which
would provide our customers with a personalized touch (Ross, 2017).
Body
As a coffee shop business, we have multiple objectives, the ones which have been
mentioned above. I would be prioritizing these objectives, based on providing priority to the
customers over the business. This means we would aim at being more customer oriented, instead
of being profit oriented. Hence, the objective which would focus on the welfare of the customers
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BUSINESS PLAN OF LIVE CASE CAFE 13
and providing them with better services. Providing them with order fulfillment, loyalty and
referral programs, etc. would be prioritized.
The primary target customers for the cafe would be staff and students of university.
Consequently, the University campuses would have a vital role to play with reference to the
facilitation for the cafe to set up its branches. As a result, it would be feasible for students and
lecturers to unwind themselves at the cafe after a tiring session of lectures. Offering student
discounts would lead to a huge attraction of students at the cafe, hence providing a phenomenal
ambience and a relaxed atmosphere.
Our primary competitor would be Starbucks, which is currently a market leader in the coffee
shop business. They use same kind of mobile application for their services. However, the pricing
strategy of the company is different from ours. Since the company is a huge brand, it charges
high prices on all of us products which is not the same for us. The mobile application of our
competitor, according to users, is user friendly and simple to use. The primary issue or problem
which has been deducted in our mobile application is related to security issues within the
application. The interruption of our application is somewhat weak, due to which there is a
possibility of hackers intruding into the application and the sensitive and private information of
our customers.
Conclusion
When it comes to blocking the hackers from attacking the servers of our business and
even the smartphones of our customers, the first line of defense would be encryption algorithms.
We would need to upgrade our technology along with these encryption techniques. We would try
to incorporate complex language and coding within our application in order to make sure that
such issues do not take place again in the future.
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Story Board Template
Theme: _______________________ DMS team members: ________________
Problem- set the scene
The primary issue or problem
which has been identified in the
mobile application is related to
security issues within the
application. The interface of the
application is somewhat weak,
due to which there is a
possibility of hackers intruding
into the application and sensitive
and private information of
customers.
Identify the gap
The gap lies in the use of
technology in the application.
The latest and updated
technology is to be used in order
to ensure a smooth functioning
and safety of the application.
Solutions
When it comes to blocking the
hackers from attacking the
servers of the business, the first
line of defense would be
encryption algorithms. This
would need to upgrade the
technology along withencryption
techniques. Incorporating
complex language and coding
within the application of the cafe
in order to make sure that such
issues do not take place again in
the future.
Notes: Notes: Notes:
Show solutions to the problem
using images
Show solutions to the problem
using images
Show solutions to the problem
using images
Notes: Notes: Notes:
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BUSINESS PLAN OF LIVE CASE CAFE 15
References
Baker, M. J. (2016). What is marketing?. In The Marketing Book (pp. 25-42). Abingdon:
Routledge.
Baker, M. J., &Saren, M. (Eds.). (2016). Marketing theory: a student text. California: Sage.
Brown, A. C. (2018). Understanding food: principles and preparation. 3rd ed. Boston,
Massachusetts: Cengage learning.
Charter, M. (2017). Greener marketing: A responsible approach to business. Abingdon:
Routledge.
Hansen, J. M., McDonald, R. E., & Mitchell, R. K. (2017). Marketing Benchmarking,
Triangulated Isomorphism, and Firm Strategy. In Creating Marketing Magic and
Innovative Future Marketing Trends (pp. 533-543). Berlin: Springer.
Harding, S. (2017). MBA management models. 6th ed. Abingdon, United Kingdom: Routledge.
Kanagal, N. B. (2015). Innovation and product innovation in marketing strategy. Journal of
Management and marketing research, 18, 1-25.
Kumar, V., &Reinartz, W. (2018). Customer relationship management: Concept, strategy, and
tools. Berlin: Springer.
Lovelock, C., & Patterson, P. (2015). Services marketing. Melbourne: Pearson Australia.
Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (2015). Effective Marketing
Strategy-Making: Antecedents and Consequences. In Proceedings of the 1997 Academy
of Marketing Science (AMS) Annual Conference (pp. 224-224). Berlin: Springer.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably. 4th ed. Abingdon, United Kingdom: Routledge.
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BUSINESS PLAN OF LIVE CASE CAFE 16
Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human
resource management policies within the marketing organization: The impact on business
and marketing strategy implementation. Industrial Marketing Management, 69, 62-73.
Ross, N. (2017). Marketing and Advertising for Small Business in Local Economies.
Thong, K. C., & Wong, W. P. (2018). Pathways for Sustainable Supply Chain Performance—
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Wensley, R. (2016). The basics of marketing strategy. In The marketing book (pp. 75-107).
Abingdon: Routledge.
Zientara, P., &Bohdanowicz, P. (2016). CSR-inspired Environmental Initiatives in Top Hotel
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