Entrepreneurship: Developing a Marketing & Operational Plan - SRC Cafe

This report presents a comprehensive entrepreneurship and marketing plan for Sunday Rockers Cafe (SRC), a startup coffee and bakery house in New South Wales. SRC aims to establish a loyal customer base by offering high-quality products at competitive prices, targeting medium to higher-income groups, local residents, and tourists. The plan includes a detailed market analysis, identifying industry trends, competition, and seasonality, along with a SWOT analysis to assess the cafe's strengths, weaknesses, opportunities, and threats. The marketing strategy focuses on benchmarking, social media advertising, and strategic alliances to increase visibility and market share. Pricing strategies, distribution channels, and promotional activities, such as happy hours and loyalty discounts, are outlined to attract and retain customers. The report also covers operational activities, including legal and license requirements, management team structure, insurance, security, and equipment needs. Critical risks are identified, and a financial plan is included in the appendix to support the cafe's sustainable growth and profitability. Desklib offers similar resources for students.

RUNNING HEAD: Entrepreneurship 0
Sunday Rockers cafe
Entrepreneurship
(Student Name)
9/15/2018

Entrepreneurship 1
Table of Contents
Introduction......................................................................................................................................2
Background of the Company...........................................................................................................2
Mission.........................................................................................................................................2
Company History.........................................................................................................................2
Business Goal...............................................................................................................................2
Products and services offerings.......................................................................................................3
Marketing of the Cafe......................................................................................................................3
Market Research..........................................................................................................................3
Market Analysis...........................................................................................................................3
Marketing Plan.............................................................................................................................5
Primary Target market.................................................................................................................5
Marketing Strategy.......................................................................................................................5
Pricing..........................................................................................................................................5
Distribution..................................................................................................................................6
Promotion.....................................................................................................................................6
Evaluation of Market...................................................................................................................6

Entrepreneurship 2
Operational Activity of the Cafe......................................................................................................6
Legal and License requirement....................................................................................................6
Management Team and Organizational Structure.......................................................................6
Professional Adviser....................................................................................................................7
Insurance and Security Issues......................................................................................................7
Business Premises........................................................................................................................7
Equipment required......................................................................................................................7
Production process.......................................................................................................................8
Critical risks.................................................................................................................................8
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9
Appendix........................................................................................................................................10
Financial Plan.............................................................................................................................10

Entrepreneurship 3
Introduction
Sunday rocker Cafe (SRC) is a startup coffee and bakery House located in New South
Wales. SRC will try to create a loyal customer base with the high quality of products at a
competitive price. Target segment of SRC would be medium to higher income group, local
populations and tourists (Schaper, Volery, Weber & Gibson, 2014).
Background of the Company
The Idea of the opening of the coffee house is to fulfill the demands of the consumers,
which is increasing day by day, ensuring that quality standards are fulfilled and citizens can get a
high-quality product at best price and can contribute to the Australians economy. Coffee is one
of the basic ingredients of Australian, whatever may be the scenario or occasion people love to
drink coffee.
Mission
SRC will be focused on good quality of coffee, espresso and pastry products at a modest
price to meet the customer expectation and attract more local natives and tourists.
Success Keys
 The high quality of products
 Competitive pricing

Entrepreneurship 4
Company History
SRC is incorporated in the state of New South Wales. It is owned and possessed by its two
partners. Mr. Dale has an expertise in finance and administration & Mr. John has an expertise in
sales and marketing.SRC proposes to run two full-time baristas and four-part time pastry to
manage customer service and daily operations for smooth running.
Goals of Business
The goals of the cafe are to earn considerable revenue and to generate healthy business and
operational environment, where both the customers and employees are cured with self-worth and
respect. The goals are divided into the short-term and long-term.
Short-term goals are:
 Contact or coordinate with advertising consultant for two months to help in analyzing and
capitalizing, the customers buying trends.
 Spend months learning the main rivalry and brainstorm on the products cafe serve and
they do not, that will help to highlight the unique points about the products of café.
 The next goal is customer service goal in which free coupons or discounts offer will be
provided to the customers who take time to respond.
Long-term goals are:
 Increase rush to the café site by minimum forty five percent by the end of the recent
fiscal year.

Entrepreneurship 5
 Building the image of café within the public through public outreach developments is the
main long-term goal of business.
 Become chosen as the “Best New Innovative Coffee” by the native restaurant guide.
 Sustain 50 percent gross margin.
Products and services offerings
SRC proposed a different variety of products such as coffee and espresso, which belong
from superior Columbian grown imported coffee beans. SRC would be catering all the needs of
the customers and each coffee would be made unique and would see for smallest details.
SRC will be an espresso-based coffee house such as:
 Cappuccino
Cappuccino offers a luxurious texture with strong espresso flavor. It will be provided with
more skills and concentration. The major thing in cappuccino is frothing the foam to silky
excellence as the milk steams, which SRB take excessive attention to attain.
(Source: Coffee On Point, 2018)

Entrepreneurship 6
 White Chocolate Mocha
There is no better way to, experience the profligate white chocolate rather than in this
delicious beverage. The white chocolate mocha will be present in a creamy taste with elegant
taste.
(Source: Copy Me That, 2018)
 Caramel Macchiato
This includes rich vanilla flavored syrup, milk that is freshly steamed with a icing of velvety
ironic foam with a finish of buttery caramel drizzle. Most of the people are passionate about the
signature beverage. We will try to present a better experience.

Entrepreneurship 7
(Source: Swanky Recipes, 2018)
 Vanilla Latte
Vanilla latte is one of the delicious parts of espresso. It will present with creamy steamed
milk and classic vanillas syrup, which make the latte more delicious.
(Source: Culinaryginger, 2018)

Entrepreneurship 8
Marketing of the Cafe
Market Research
There are certain sources, which were used to prepare business plan such as statistics of
Australian Bureau, Small Business Advisory Network of NSW, meetings with several business
enterprise centers and business brokers in New South Wales, through brief surveys (Burns, Bush
& Sinha, 2014).
Market Analysis
 Industry analysis – Australian coffee Industry is experiencing a strong growth over the
past five years 2019-2020, as Australians remain addicted to coffee. Australia is among
the few countries wherein prompt consumption of coffee is very high. Moreover, the
coffee lovers are extremely attracted in the roots and tastes of the products. Consumers
are keen to know the foundation of coffee beans and the interest of the customer is
utilized in the tactical plans of most of the companies. Revenue of Industry is estimate to
increase by an annualized 2.7% over the five years through 2019-20, to reach $5.0
billion. It embraces estimated growth of 4.2% in 2015-16. Growth will be determined by
trends towards health consciousness, finest eating, and decent consumerism. The
presence of a small coffee business, which is owned by individuals, will continue to mark
their existence. Growing demand of coffee will support development in both business and
its culture (Knox, 2016).
 Competition – Small coffee business owners are estimated to overlook the industry over
next few years. Big chains will find difficulties in establishing themselves due to high
competition at competitive price points. Small business is able to give a better ambiance

Entrepreneurship 9
and high quality which even is making it more difficult for big chains. With the high
demand for coffee, business will focus on increasing the profits by cutting down on
wages and bringing different offers which attract consumers more. Few competitors are
as follows: -Kraft Heinz, Starbucks, Nestle, Coffee Beanery, Coffee Republic, Dunkin'
Donut, Luigi Lavazza (Leigh & Triggs, 2016).
 Seasonality – In Australia, it is estimated that individuals are consuming an average of 9
cups of their brew of choice a week. The consumption of hot coffee is dropping by 12%
during the summer month and picking back up in autumn and winter (Connell, Page &
Meyer, 2015).
 Potential strategic alliance – SRB mainly focus on the efforts on searching a small
number of strategic alliances and offering complimentary coffee, snakes and catering
services to local businesses for their grand opening and special events. Furthermore,
offering coffee, food to the local car dealership to give away to customers taking cars for
a test drive (Ricco & Hultberg, 2018).
By this business will have the perceptibility and reasonable products and services, which are
critical to seizing the share of the market.
 SWOT analysis – This tool helps business to recognize the external and internal factors,
which affect business in growth or failure. First two factors Strength and weakness in
SWOT analysis are internal factors, which includes (experience, resource availability –
financial resource). Opportunities and threats are the external factors for business
(Brooks, Heffner & Henderson, 2014). These factors cannot be controlled which includes
(political regulations, economic trends, market trends).

Entrepreneurship 10
#Strength – For the SRC, would be Location of the business, convenient for service class,
Opening hours, Quality products and services.
#Weakness – For the SRC, would be Stock (not enough storage space), new brand
goodwill, Visibility in starting days.
#Opportunities – For the SRC, buying the power of the service class individuals, Mouth
publicity, Philanthropic work, Social media presence, offers which we are offering,
Pricing of products.
#Threats – For the SRC, Law & regulating authority, Established Competitors in the
market. An inconsistency in managing things at early stages.
Marketing Plan
Proper business planning will be done by the CEO, in which there will be the preparation
of the detailed business plan, which covers all parts of activity in the cafe. Proper
planning will be done to provide proper training to for two days to the staff (Chernev,
2015).
Primary Target market
SRC focuses on meeting the demands of local residents and tourist.
 Local residents – SRC wants to establish a huge market of local residents which will help
to create a big network and it will provide the consistency to the business. Focused age
group would be 25-35 years as they are young and energetic and most of them are service
classed so it helps them to cool off in the café with coffee and can have business deals in
café also.

Entrepreneurship 11
 Tourists – SRC will be focusing on Tourists as well as in season it will boost the sales by
20-30% which will give more visibility of products and services. The brand name would
be recognized in front of other individuals coming from different part of world
(Scarborough, 2016).
Marketing Strategy
The retail coffee industry has recently experienced rapid growth across the world. SRC wants
to create a large and loyal customer base, which will help the business to grow and involves local
residents, which will give strength in getting a competitive advantage. In addition, SRC will be
attracting tourists traffic which will boost business by 25-30% of the revenues.
 Benchmarking – It covers, establishing the business in such a manner that it will lead to
the example and can create or fulfill the requirements and to some extent exceeding the
expectations.
 Social Media and other advertising- Choosing correct medium of marketing helps the
business to make it more cost effective and doing the tie-up with different websites helps
to boost the sales, for example, Food panda, uber eats, Zomato etc. It gives the visibility
and creates a connection between the business and direct consumers. Customers can
utilize the product and services and if any changes are required feedback could be taken
and analysis can be done (Jaworski, 2018).
Pricing
It is one of the critical aspects for any Coffeehouse to be at success growth. Therefore,
our pricing will be strategic and when peak hours would not be there, more offers would be