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Business Plan for the coffee shop - Coursework Example

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This research aims to evaluate and present the purpose of opening more coffee shops in London that is to save it from mediocre milkshakes and coffee shops through the control of the entire coffee-milkshake making process from the beginning to the end…
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Business Plan for the coffee shop
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Business Plan for the coffee shop

Download file to see previous pages... Direct competitors include Starbucks, Pref A Manger, Costa, and other coffee shops in the London region. Indirect competitors include bars and restaurants who sell milkshakes and coffee. Saturation in London has prompted key coffee chains to expand regionally. Despite retaining their outlet growth, this has resulted to downward pressure on sales and increased competition. The year 2004 witnessed key coffee shop brands picking off major high traffic sites thus leveraging their powerful brands to compete with other independents and formats. Caffe Nero, Costa, and Starbucks remain to be the dominant players in the United Kingdom coffee shop markets. In 2004, the main competitor was Starbucks and it has more than 400 outlets.2 However, in 2010, Costa Coffee became the market leader and it is the current UK’s preferred coffee shop.3 The coffee shop has competitive advantage over the competitor’s coffee shops. This is because of its good customer service, good location, and good product quality and various choices in terms of the interior. Industry Analysis After oil, coffee is the second most traded product in the world. The milkshake and coffee market is highly competitive. The coffee and milkshake market is dominated by international brands such as Starbucks and Costa. Project Cafe10 UK research has revealed that the UK coffee shop market sales have grown by 12 percent in 2010 and branded coffee shop segments such as Pret, Caffe Nero, Costa, and Starbucks recording 1.94 billion Sterling pounds in revenue. Venue choice among the consumers has increased and these venues include non-specialist operators, independents, and branded chains; in 2010, the venues comprised over 14,022 outlets. The market,...
The report intends to examine short term and long term aims and objectives such as to make the coffee shop known in the area and gain competitive advantage; to increase customer awareness by 30 percent within a period of three months; to achieve sales worth £85,000 within a period of one year; to open over 10 shops around the united kingdom within five years; to gain at least 3 percent share of the market within a period of seven years. In order to analyze the business environments, various business analysis tools such as SWOT, competitor analysis, industry analysis etc will be included in the paper. The focus of the coffee shop is on quality and price of the product. The main forms of advertising to be used include online advertising and brand advertising. Online advertising makes use of the internet to advertise the product. Mass media has not proved to be an effective method of advertising. Online advertising is used by most corporations because of its efficiency and cost effectiveness. On the other hand, brand advertising entails gaining the confidence of the market about a particular product. Its aim is to manipulate demand for a particular product. Unique selling proposition will also be used to advertise the product. Unique selling proposition makes use of a unique ‘slogan’ for a particular product in order to differentiate it from the competitor’s product. The unique selling proposition for the coffee shop is “Quality and Service to Suit Your Tastes.” ...Download file to see next pagesRead More
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