Exploring New Venture: Development of 24*7 Coffee Cafe & CANVAS

This report provides a detailed analysis of the 24*7 Coffee Cafe new venture using the CANVAS model. It covers key elements such as customer segmentation, focusing on working professionals and youth seeking hygienic food options. The value proposition emphasizes hygiene, varied product offerings, and additional services like Wi-Fi. Distribution channels include a physical outlet and an online application for convenient delivery. Customer relationships are fostered through internet marketing, social media engagement, and customer feedback surveys. Revenue streams are generated through personal finance, bank loans, and strategic discounts. Key resources encompass physical, financial, and human capital, while key activities include marketing, production, and sales. Key partnerships involve suppliers of coffee beans, fresh produce, and retail stores. The cost structure is based on direct and indirect costs, with pricing strategies aligned with a competitive market. The report concludes that effective customer segmentation and relationship management are crucial for the new venture's success.

NEW VENTURE DEVELOPMENT

TABLE OF CONTENTS
NEW VENTURE DEVELOPMENT...................................................................................................1
Table of Contents.................................................................................................................................2
ASSESSMENT 2..................................................................................................................................3
Introduction..................................................................................................................................3
Different elements of CANVAS model.......................................................................................3
Conclusion............................................................................................................................................7
References............................................................................................................................................8

ASSESSMENT 2
Introduction
This assessment covers detail information regarding the product and services along with
its distribution channel and all other aspects. Furthermore, the assessment also includes different
types of areas such as channels of distribution, streams of revenue, segmentation of customers,
the structure of cost etc.
Different elements of CANVAS model
All elements of CANVAS model are explained as follows-
Customer segmentation-The customer segmentation divides is the procedure to divide overall
buyers groups. The target customer covers basis focus on working professionals and youth.
Basically their need related to less time and hygiene food is considered. Owing to this, product
procedure has been selected accordingly whereby it becomes easy to target the buyers effective
and raise their attention towards products and services which are being offered by 24*7 Coffee
cafe. This proves to be effective for company to increase customer base. Further, perfect
competition market is selected for offering varied range of products and services in the
marketplace (Simoneaux and Stroud, 2011). This shows that customer segmentation is decided
effectively and accordingly competitive edge of the business is created. In addition to this,
business can put efforts to bring innovation in the market so that customers can be retained for
longer time. However, this strategy is adopted by using more suitable pricing strategy and
grabbing attention of buyers towards unique and new services offered by the business. This
reflects that customer segmentation has been decided by using appropriate marketing strategy
along with association of unique concept related to hygiene because obesity related issues are
shifting focus of youth towards hygienic food. It has already been said that all customers are
targeted by the business. Hence, it becomes important to shed light on specific expectations of
buyers and met the same by using appropriate strategy. Thus, segmentation has been done by
focusing customer needs and type of market under which business will be operate.
Value proposition- There are several coffee shops in London but no specific focus is given for
hygiene and varied products and services in accordance with customers. However, the present
24*7 Coffee cafe is offering bulk of benefits together. For this purpose, features of current
business are additional facilities such as Wi-fi and calm environment which grab attention of

professionals also for their meeting purpose (Sinkovics, Sinkovics and Yamin, 2014). At the
same time, focus is laid on different kind of food such as vegetable, non-vegetable and different
drinks. This in turn support business to create its unique identify and expand its venture at global
level in future time span. Not only this but, uniqueness of business is that it is targeting to all age
people with specific need related to hygienic food, time issues and delivery at home and
professionals meeting in calm environment. This in turn firm can effectively increase overall rate
of return and deliver good quality of services to large number of buyers. Furthermore, 24*7
Coffee cafe is unique among its competitors because it offers several benefit in single service. It
can be considered as the key destination for attraction or satisfaction of buyers who prefer to
have quality food. So, value proposition is hygiene concept and additional services which offer
complete quality food.
Distribution channels- Distribution channels are considered as the most important procedure
under which management of the firm tends to deliver its end product among users. However,
24*7 Coffee cafe has its physical outlet to give rich experience for new users related to quality
services (Teece, 2010). This unique concept of business attract more health conscious people
along with professionals and youth who want to spend their quality time at perfect place. The
most important aspect is related to online delivery whereby firm will have its own application
which can be uploaded on mobile phone of users. This application make it possible to ping 24*7
Coffee cafe regarding any kind of requirement. Accordingly personnel of firm define or design
attractive plan to deliver food in relatively less time span. Apart from this, competent and skilled
personnel will be hired in the outlet who can easily understand the requirement of buyers and
provide them product and services accordingly. They key personnel will be highly qualified who
can also review instant feedback of customers and make them feel comfortable by resolving their
queries. However, only two mode of delivery has been selected so as to ensure operation of firm
in a cost effective manner. This facilitates to increase its profitability and reduce the cost of
production to a great extent.
Customer relationships-Customer relationship is another important element of CANVAS model
under which business covers all marketing related activities and promotion of the products and
services. It is the common fact that customer relationship cannot be developed without
interacting with them. For this purpose, 24*7 Coffee cafe will use internet as the most effective

technologies to keep customers informed about special offers and other related information
(Trimi and Berbegal-Mirabent, 2012). Furthermore, social media page will also be designed and
buyers will be attracted in the same manner. Apart from this, specific site of business will also be
updated whereby it becomes easy to approach customers to get their review. At the same time,
after online delivery of food product a small and interesting survey can be conducted by firm to
ask review from its consumers. In this manner, lacking areas will be explored and buyers will
experience very good things or services from 24*7 Coffee cafe. Furthermore, distinct application
of corporation of firm is also effective through which it can be in contact with potential buyers
and provide them timely information regarding any kind of specific discount. However, regulator
customers can get the club card and get discount on purchase of specific products and services.
All these strategies are helpful to retain buyers and build good relationship with firm.
Revenue streams-Revenue streams is another important element of CANVAS model which
reflects that what will be the sources of finance for current business and how firm will increase
its rate of return. Here, 24*7 Coffee cafe will access personal finance and bank loan so as to
access cost effective sources and meet the expectations of all related buyers in an effectual
manner. Furthermore, revenue streams is promoted by offering specific discount on offers
products and services so that customer base can be increased for particular time span. It aids to
increase sales turnover and support firm to meet its long as well as short term objectives (Wright
and et. al., 2016). At the same time, leasing companies might approached to access machinery
used to produce products and services of 24*7 Coffee cafe. It would reduce initial burden of
finance and enable firm to approach potential buyers effectively in relatively less time span.
Furthermore, sales turnover is increased by adopting suitable marketing strategies and gaining
popularity in the market. It is the main reason that cost effective mode of communication is
implemented and in the same manner firm can effectively build competitive edge in the
marketplace. Apart from this, cost plus mark up price strategy would be adopted so that directly
management target to recover the cost of production and increase rate of return in the
marketplace.
Key resources- It is common fact that business need to ensure inclusion of varied resources for
production of tea and other eatables. These can be done with the help of physical, financial and
human resources. All these resources facilitate firm to produce good quality of products and

services in the marketplace. Further, competent and skilled employees are recruited whereby it
becomes easy to approach buyers effectively. Apart from this, financial sources such as bank
loan and personal finance is considered to start the venture. In addition to this, all other facilities
and machinery as well a furniture and land will be purchased on the basis of specific plan (Bell,
2010). Hence, all these sources are helpful to start the venture in relatively less time span and
meet the expectations of all related buyers. Furthermore, all these key resources contribute
towards successful operation of firm through which company can reach to its break even point as
soon as possible. It can be critically evaluated that employees associated with the business must
be skilled and highly competent. This aspect contribute towards organizational success at the
global marketplace. It enables business to meet expectations of all related consumers and
accordingly retain all stakeholders such as investors. Therefore, key resources are associated for
success of 24*7 Coffee cafe and long run survival with increased rate of return.
Key activities- There are different activities performed by 24*7 Coffee cafe to retain buyers and
interact with them. At this juncture, marketing, production and sales related activities are
performed by key personnel. At the same time, activities related to motivation and satisfaction of
employees is prominent which is made possible by offering them reward in financial and non-
financial aspects both. At this juncture, marketing activities are completed by taking into account
internet (Burns, 2010). In this manner, internet marketing proves to be effective to approach
huge customers and create sense of achievement among them by purchasing different products
and services. However, unique page of social media is created wherein customers review the
same and like its appropriate updations. In addition to this, sales related activities are supported
by marketing only. However, employees motivation is done with the help of suitable work
environment and providing them immense support to carry out given task on right time. Apart
from this, production procedure is the main aspect whereby firm start operating its business in
accordance with set procedure so that customers can be provided the ordered product in less
time.
Key partnership- The key partnership of firm will be with farmers who provide coffee beans and
other providing fresh vegetables and meat etc. At the same time, retail stores like Tesco and
Sainsbury can be approached by 24*7 Coffee cafe to purchase raw material and semi finished
goods. However, other related small kiosk can be contacted to offer food in bulk. Therefore, all

these key partners support business to approach consumers and offer them products as well as
services on right time. Apart from this, van can be contacted for online delivery of food to end
users (Evans, 2015). Hence, it is also the effective aspect for attracting more buyers and ensure
success of the business in the marketplace with the increased rate of return. Furthermore, key
partners forms their contract and accordingly enter into legal relationship to offer their product
and services for specific time.
Cost structure-The cost structure of the business will be additional of direct and indirect cost.
This would be done by adding all the expended incur to purchase the land, raw material and rent,
taxes and other related expenses. Here, basic income statement will be prepared for two to five
year so as to record all related information effectively and meet the expectations of all related
buyers (Gheorghiu, Gheorghiu and Spanulescu, 2010). Moreover, break even analysis will be
done by checking the income of the firm against the expenses generated for particular financial
year. This proves to be effective to derive exact amount of profitability or loss occurred to
business. Hence, a very simple cost structure of the business is followed under which pricing
strategy is done on the basis of perfect competition market. This tends to create competitive edge
of the business by meeting expectations of all related parties and recovering the cost of
production for 24*7 Coffee cafe.
CONCLUSION
From the above carried out assessment, it can be concluded that appropriate segmentation
of customers is very important for overall growth and success of new business. The proposed
business will be targeting people which generally include working professionals and youngsters.
It can be also inferred that the new business will focus on developing and maintaining good
relation with all its customers in order to ensure long term growth and development. From the
above carried out assessment, it can be concluded that cost plus mark up price strategy would be
adopted by the new business in order gain higher revenues.

REFERENCES
Books and Journals
Bell, J., 2010. Student business plan competitions: who really does have access. In Small
Business Institute National Conference Proceedings. 34. pp. 18-25.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Evans, V., 2015. The FT Essential Guide to Writing a Business Plan: How to win backing to
start up or grow your business. Pearson Higher Ed.
Gheorghiu, A., Gheorghiu, A. and Spanulescu, I., 2010. Target market risk evaluation. arXiv
preprint arXiv:1007.1908.
Simoneaux, S. and Stroud, C., 2011. A business plan: The GPS for your company. Journal of
Pension Benefits Issues in Administration. 17(3). pp.92-95.
Sinkovics, N., Sinkovics, R.R. and Yamin, M., 2014. The role of social value creation in
business model formulation at the bottom of the pyramid–implications for
MNEs?. International Business Review. 23(4). pp.692-707.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Trimi, S. and Berbegal-Mirabent, J., 2012. Business model innovation in
entrepreneurship. International Entrepreneurship and Management Journal. 8(4). pp.449-
465.
Wright, E. and et. al., 2016. The Lasting Effects Of Social Media Trends On
Advertising. Journal of Business & Economics Research (Online). 14(3). pp.75.

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