Roffee: A Detailed Report on a New Coffee and Rum Cafe Business Idea

This report details a new business idea for a unique cafe named Roffee, which will serve a variety of coffees from around the world, with a special focus on a signature drink combining rum and coffee. The report includes an executive summary, introduction, and analysis of the target market, customer problems, and the benefits of the innovative concept. It further explores the business model, critical success factors, and a feasibility analysis, including forecasted revenue and marketing mix strategies. The report discusses the challenges of the business, such as competition and licensing, and how the cafe's unique selling points, such as the 'Roffee' drink and imported coffee beans, will attract customers. The report also covers the marketing mix, including product, place, price, and promotion strategies, and concludes with a summary of the key findings and recommendations for the business's success. The report is supported by references and appendices, including a business canvas model and feasibility analysis.

Running Head: Roffee
ROFFEE
New business Idea

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Executive Summary
New business idea is a concept which could be used for financial gain and the major focus will
be over products or services which will be offered against money. In this report, new business
idea will be discussed. The business idea which will be discussed in below parts is a unique café
which will serve varieties of coffee from national as well as international marketplace. Apart
from this, speciality of this café will be “Roffee” which will be made from rum and coffee. Rum
is a type of alcoholic beverage and this will made the café unique as well as attractive for coffee
lovers. Under this report, target market and customer for the product will be discussed along with
its issues and challenges which will be faced by the organization in new marketing conditions.
Further, report will focus over benefits of the Roffee and its strengths to meet up with the
challenges and issues. Next part will focus over critical success factors, business model and
feasibility analysis.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Customer/market problems..............................................................................................................3
Benefits of the idea..........................................................................................................................3
Business model................................................................................................................................4
Critical success factors....................................................................................................................4
Feasibility........................................................................................................................................5
Forecasted revenue..........................................................................................................................6
Marketing mix.................................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Appendices....................................................................................................................................10
Appendix 1: Business Canvas Model........................................................................................10
Appendix 2: Feasibility Analysis...............................................................................................11
Appendix 3: Quality of contribution and collaboration.............................................................13

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Introduction
Process of establishing a new business venture is known as entrepreneurship. There is no for sure
guaranty of success of a new business idea. But if all the functions will be performed in effective
manner in relevance with setting up a business, chances of success and growth increases.
Governments of various countries promote entrepreneur’s innovative and new business ideas
with the objective of development of the industries. Ultimately, industrial development will lead
the country towards development. In this report, new business idea will be discussed in relevance
with providing enriched and leisured experience to its target audience. USP of this café will be
“Roffee” which will be made with Rum and coffee.
Customer/market problems
Primary issue which will be faced in the target market is non-acceptance of their new business
idea i.e. “Roffee”. Apart from this, organization could also face certain other issues such as copy
of their business idea by existing big players in coffee industry. In order to serve “Roffee” in the
target market, organization will require license because without license, alcoholic beverages
cannot be served or sold. Further, before serving this coffee to the customers, organization will
require to check the age criteria because in most of the countries, government decides age limit
for their citizens to consume alcohol. In this scenario, organization requires to check its
consumer’s age before serving them “Roffee” in order to avoid legal glitches in its operations
(Eppler, Hoffmann & Bresciani, 2011).
Benefits of the idea
Idea of serving “Roffee” in the target market will generate positive outcomes as it is a unique
business idea. Apart from this, still there are not much strong coffees available in the market as
compared with the demand of the strong coffee. Last strongest coffee available in the market is
espresso but the idea of “Roffee” will fulfil that customer’s demand which require strong coffee.
It will make consumers more active and refreshed along with this, “Roffee” will increase
satisfaction level of consumers in relevance with consumption of coffee.

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There are many people who are fond of coffee and to provide various types of coffee to them,
exported coffee beans from various countries in which coffee beans are produced and refined.
This café will not be similar to other coffee shops like Starbucks, Café coffee day, etc. because
new business is providing the best coffee from various parts of the globe to target audience along
with the Roffee. In order to make the business idea more effective and innovative, entrepreneurs
have decided to set up a unique them for café which could attract the target audience
(Chesbrough, 2010).
Business model
There varieties of coffees from various countries across the globe will be served in order to make
their target audience’s experience relished. Famous places across the globe for coffee are
Portugal, Finland, Turkey, Malaysia, Australia, Greece, etc. It will serve all those varieties of
coffees at one place along with their unique idea of “Roffee” which will increase customer
satisfaction.
In initial times, provide discount and other attractive offers will be provided to the target
audience in relevance with developing a separate image from its competitors. Apart from this,
organization will implement value based pricing technique (Heslop & Nadeau, 2010). Under
value based pricing technique, cost of the making coffee plus the value offered to its customers
will be added along with a certain amount of profit margin. It is expected that the innovative idea
will help the organization to gain competitive advantage as there will be no such café is available
in Australian market which are serving “Roffee” yet.
Critical success factors
Primary success factor of “Roffee” will be its uniqueness and the freshness which will be felt
after consumption of “Roffee”. It will attract those people who love to consumer strong coffee.
In relation with this business idea along with a unique variety of coffee, key success area will be
those areas where demand for strong coffee is high along with the number of people who prefers
to consume alcohol in coffee. The key success factors of the organization and their unique
product idea will be varieties of coffee served at one place. Apart from this, consumers will feel
more active and relished after consuming “Roffee” due to its unique combination.

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It is important for a new business to define its target market at the initial stage only. This is
necessary as it plays vital role in success of the new business. Target audience is the group of
individuals whose demands will be fulfilled by business. For example: a toy manufacturing
firm’s target audience will be children but as children would not be able to take their own
decision, secondary target audience will be their parents (Menegaki, 2012). In the same manner,
target audience for Roffee will be people fond of coffee, youth, and those people who love to
explore new things. Concept of this café is bit unique and in order to accomplish the goals and
objectives, appropriate marketing strategies will be used for approaching the target audience in
most appropriate manner. Promotion of Roffee would utilise its USPs and the efforts made for
importing varieties of coffee from various places in its promotional strategies. This will help the
organization to fulfil its objectives along with the development of distinctive and unique image
amongst the target market (Heinonen, Hytti & Stenholm, 2011).
Feasibility
In terms of analysing feasibility of the new business idea, organization will use various methods
such as review, feedbacks, and questionnaire in order to determine the effectiveness of new
business idea.
In initial period, this business will start with limited number of employees and for performing the
duties of Consultants, Research and marketing & PR, organization will use external sources. This
will reduce the fixed cost of the organization as well as the profitability will increase (Luan &
Sudhir, 2010).
Initial period will require certain amount of investment because setting up an effective and
distinctive image will require investment in marketing and promotional campaigns to spread
awareness amongst the target audience. This will help the organization to make its business
feasible as per market environment. Below is the detailed table showing requirement of
investment:
Particulars Expected investment (AUD $)
Recruitment cost, salaries to staff members 8000

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Rent and lease expenses 100000
Sales team expenses 5000
Promotional and marketing 40000
Other overheads 2000
Total 155,000
Forecasted revenue
Year Cost Revenue
Year 1 160,000 100,000
Year 2 120,000 115,000
Year 3 100,000 150,000
**from the above table, it can be assumed that organization will be able to recover its cost
incurred from the third year and it will move towards profitability, success and growth.

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Marketing mix
Product: It will provide varieties of coffee from various places and USPs for this café will be
“Roffee”. In order to gain competitive advantage and to attract the target audience, it is necessary
for the organization to showcase and highlights the unique features in the target market. Coffee
and other food items served under one roof are unique and attractive. In relation with promotion
of “Roffee”, organization will use discount and offer strategy. This will attract large number of
audience and the due to innovative idea of “Roffee”, organization will easily be able to showcase
primary features the product (Fan, Lau & Zhao, 2015).
Place: Place of distribution will be selected as per reviewing the market research and the
preferable location will be nearby to high densely populated area. Apart from this, the most
visited place, market, etc. by Aussies will be selected. This is because place of distribution plays
vital role in the success and growth of restaurant, café, hotel, etc. It should be easily
approachable for customers, thus, the centralised, easily approachable and attractive location will
be selected for opening the café (Zheng, Yang & McLean, 2010).
Price: In order to gain competitive advantage as well as to attract large number of customers, it
is necessary for the organization to adopt fair pricing strategy. Along with this, promotion and
offer strategy will also be adopted with the objective of providing certain type of discount to the
target audience. Value based pricing strategy will be the most suitable strategy in terms of
enhancing the demand and market share of Roffee in the target market (Ashkenas, et. al., 2015).
Promotion: Promotion and marketing is necessary to spread awareness amongst the target
audience and it plays significant role in reaching to the target audience in an effective manner.
Following are crucial promotional techniques that would be adopted:
 Event marketing
 Digital marketing strategies
 Traditional marketing strategies such as television, radio, magazine, newspaper, etc.
 Relationship marketing (Armstrong, et. al., 2015).

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Apart from this, organization will promote its customer centric approach. Customer centric
approach defines that the customers will be treated in the most appropriate and fair manner.
Apart from this, it is an effective tool for developing appropriate customer relations (Gordon,
2012).
Conclusion
From the aforesaid information, it can be concluded that this business idea will fulfil its target
audience’s demands and wants in the most appropriate manner. Most importantly, this café is
importing coffee beans from various parts of the globe which are specially known for producing
and refining coffee. This is an innovative business idea and the speciality of this business is
“Roffee” which is made with rum and coffee. It will provide relished experience to the target
audience.

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization: Breaking
the chains of organizational structure. John Wiley & Sons.
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range
planning, 43(2-3), 354-363.
Eppler, M. J., Hoffmann, F., & Bresciani, S. (2011). New business models through collaborative
idea generation. International Journal of Innovation Management, 15(06), 1323-1341.
Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), 28-32.
Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix. Australasian Marketing
Journal (AMJ), 20(2), 122-126.
Heinonen, J., Hytti, U., & Stenholm, P. (2011). The role of creativity in opportunity search and
business idea creation. Education+ Training, 53(8/9), 659-672.
Heslop, L. A., & Nadeau, J. (2010). Branding MBA programs: The use of target market desired
outcomes for effective brand positioning. Journal of Marketing for Higher
Education, 20(1), 85-117.
Luan, Y. J., & Sudhir, K. (2010). Forecasting marketing-mix responsiveness for new
products. Journal of Marketing Research, 47(3), 444-457.
Menegaki, A. N. (2012). A social marketing mix for renewable energy in Europe based on
consumer stated preference surveys. Renewable Energy, 39(1), 30-39.
Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge
management. Journal of Business research, 63(7), 763-771.

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Appendices
Appendix 1: Business Canvas Model
Key Partners Key activities Value
Proposition
Customer
relations
Customer
segments
Four founders
Implementer
Resource
investigator
Coordinator
Serving great
quality
Providing
varieties of
coffees from
various places
Customer
satisfaction
Enhance
revenues
Increase profits
Management of
risk factors and
market
challenges
Taking feedback
from customer on
product’s and
service’s quality
CRM techniques
Coffee lovers
All segments
Key Resources Channels
Employees
Innovative idea
Financial
resources
Digital marketing
techniques.
Setting up outlet at
centric location of
the target market.
Cost Structure Revenue Structure
Fixed cost
Land and building expenses – lease
Sales originated from guests
Sale of coffee and other products from online platforms

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payments and rent
Employee salaries
Import fees of coffee
Variable Cost:
Promotion expenses
Travelling expense
Appendix 2: Feasibility Analysis