Sustainable Business Plan for The Bean Palace Cafe in Melbourne, AU

This business plan outlines the strategy for launching 'The Bean Palace,' a cafe restaurant in Melbourne, Australia. It includes a comprehensive situation analysis, assessing strengths, weaknesses, opportunities, and threats within the hospitality and food services industry. The plan details the business concept, positioning the cafe as a friendly, high-quality, and affordable option targeting students, professionals, and families. It covers the marketing plan, including branding, segmentation, targeting, positioning, and promotional strategies like billboards, advertisements, and discounts. The plan also addresses competitive advantages, external factors, barriers to entry, infrastructure, technical aspects, legal regulations, human resource needs, and a detailed financial assessment including start-up budget, revenue projections, and financial dynamics. The conclusion emphasizes strategies to attract customers, create value, and achieve sustainable growth for the business venture. The plan references relevant academic sources to support its analysis and recommendations.

Sustainable Business
Plan

Introduction
 Business plan is a formal document which creates
a structure which a business can follow to launch
and move ahead in a new business venture.
 A businesses plan creates the objectives of a firm
along with the various strategies it should
undertakes including marketing, financial and
human resource strategies.
 It helps in formulating market segments,
positioning and brand image for the firm (Butler, 2012)

The Business Concept
 The new business venture would be set up in
the hospitality and food services industry in
the form of a café restaurant
 The café would be named as- The Bean
Palace
 The café would be a sit in restaurant with airy
and friendly atmospherics
 The café would be located in Melbourne in
the vicinity of a college and a residential
colony to enable the firm to get easy access

The Business Concept
 The café would be positioned as friendly
place for an outing or relaxation
 Target market of the café would be college
students, professionals and families of
middle income group in the age group of
20-60
 Focus of the café would be on high quality
product and service offering.

The Business Objectives
 To provide high quality coffee to customers
at lower prices
 To create a café which is friendly and family
oriented
 To expand in next three years and open
another café and to make The Bean Palace
into a café chain with at least 5 to 7 Café’s
within next 7 years.

The Situation analysis
 A situation analysis helps a business form in
assessing its own strengths and weaknesses and
the opportunities and threats of the industry in
which it is operating. (Aaker & McLoughlin, 2010).
 Proper business planning and situation analysis
can help a business firm to augment its key
strengths and attain competitive advantage to
survive in the market (Aaker & McLoughlin,
2010).

The Situation Analysis
Strengths
 High quality product and
service offering
 Good location with an
attractive infrastructure and
ambiance
 Well trained staff
Weaknesses
 Heavy investment
 High marketing cost
 Low price may affect
revenue
Opportunities
 High demand
 People’s preference for
local café
 Very few local cafes
offer free Wi-Fi so
attractive to students
Threats
Very heavycompetition
Coffee considered as
unhealthy(IBissWorld, 2018)

The Market Assessment
Size of the market and its growth-
 People in Australia love to have coffee. Hence Cafes
are in demand. The industry growth rate was around
5.1% in the last financial year.
 Coffee drinking population is nearly 75% hence
demand is supposed to be good for the new business
venture. Café restaurants is a $4.3 Billion industry in
Australia with no big coffee chain having more than
5% of market share.
 Therefore there is potential of growth in this industry
(IBissWorld, 2018)

The Marketing Plan
 The Brand Name- Brand is any name symbol or logo
with which a firm or its products get identified or
recalled by the customer (Brown, 2016)
 The café venture has chosen the name ‘The Bean
Palace’for its café. A steaming coffee mug with coffee
beans spilled around will be the logo. The brand will
try to position itself as a high quality low priced café
where one can feel relaxed
 Through a quality focus the brand intends to create
value for its customers

Marketing Plan- Segmentation,
Targeting and Positioning
 Target market- The target market of The Been Palace would be
students, professionals and families from the vicinity.
 Positioning- The firm would like to position itself as a café with
friendly atmosphere and high quality service so that it can
attract customers and create value for them.
 Segmentation -The firm would segment the market based on
demographic segmentation and use age, family and income
size as a means to target the market. It can offer discount
offers to students and variety in flavours for family outings.
This will help in catering to the needs of different segments
like students or family and friends.

Marketing Plan- Promotional
Strategy
 Due to tough competition the new business firm would
need to create awareness through a promotional strategy.
 A sound promotional strategy can help the firm in
enhancing brand recognition and enhance customer value
by making them aware of the good quality products.
 A sound promotional strategy would also help the firm in
creating its brand image which will lead to better revenue
in the future.
 (Ferrel, 2012)

Market Plan: Promotional Strategies
 As the firm is a new business venture with a limited
budget, it can use billboards, hoardings and
pamphlets a means of spreading awareness about
the new café.
 Additionally, the firm can give newspaper
advertisements for a few weeks to create brand
awareness
 The firm should also try to create positive publicity
for its café
 Also, the firm can use sales promotion techniques
like students discounts to generate more footfalls