Georges Coffee- Business Development Strategies - Essay Example

George's Coffee- Business Development Strategies Introduction: George's coffee is in the business of grinding and roasting coffee and supplying thecoffee to Hotels. Founded around two years back by three graduates from university with an initial working of around$20,000 the organization has done extremely well last year. Because of the success they had the management wanted to expand their business in the same line by starting operation such as distribution of roasted coffee to customers across the country and also by starting coffee bars, outlets where customers can drive and relax for a period of time. The management of George's coffee has some different ideas for the promotion of their business in an extremely competitive industry. Some of their plans and strategies to cope with the competition include using Electronic mailing as a method to boost their sales through methods such as e-marketing (direct marketing), setting up an E-brochure for ready reference. Study Objective: The main objective of the study is to identify methods which are suitable for Geroge's coffee which can enhance the chances of their success in a competitive field. It is imperative that the methods suggested shall yield results for a longer period of time and hence they should have time relevance. The objectives are: i. To identify the requirements of George's coffee in terms of their business development strategies and plans to approach the business to make it very appealing to the customers. ii. To identify the influence of external forces on the business of George's coffee. iii. To suggest methods which has relevance to the business George's coffee is handling. iv. To see that the methods are cost effective but effective enough to get them the desired results. Business Requirements: Every new business or business units however big they are before starting or venturing into a new business or expanding naturally goes for a market feasibility study. In other words a market feasibility study allow them to understand important factors such as their own Strengths, weaknesses, Opportunities and threats, also by conducting a market feasibility study they can understand the external business environment as such. We know business environment is very fluid in nature and the market situations as well as the market requirements tend to vary from time to time. The business requirements for George's coffee in terms of plans and strategies to survive the heat are: Internal requirements: i. Sound supply chain mechanisms which are cost effective, innovative and sustainable for a long time. ii. Development of a strong and unyielding distribution network for easy distribution. iii. Use of electronic services for enhanced performance. External requirements: i. The methods developed shall flexible enough to accommodate changes as per the requirements of the organization. ii. The methods have to designed in such a fashion that they can be used for a long time and reusable. iii. The methods have to be tested and re- tested again and again for better application and results. Scope of application: Inorder to reap rich dividends the management has to understand the scope or the extent of usage of the methods suggested. I'm a firm believer of the fact Business strategies are custom made and any method or application suggested for one particular business may or may not be applicable for another one. They are totally custom made as per the requirements of organizations. Hence the management has to understand the scope upto which the methods can be used extensively and for better results. Also the methods suggested can be time bound, so usage after a certain period of time after which the methods have to be reconfigured as per the market dynamics once again. Usage of obsolete methods may not yield effective results as such. Factors influencing the business development plans: There are several factors which can act as hindrances in the business development of George's coffee as such. Broadly we can classify them into two categories: i. The internal set of factors. ii. The external set of factors. Internal set of factors: The internal set of factors include i. Pooling up the required amount of money to maneuver the development or business extension. ii. Gathering sufficient information so as to understand the nuances of the new venture. iii. Understanding and realizing the organization's own potential strengths and weaknesses (A SWOT analysis is always good). External factors influencing: The external factors include i. The past history of the business. ii. The present trends iii. The future predictions from experts. iv. The competitor's strengths and weaknesses as a whole. Strategies suited for George's coffee: Before we speak of the strategies the organization's vision and mission can given a thought. Vision: To develop their own brand of coffee bars and to start supplying roasted coffee as a whole. Mission: i. Developing strong and adaptable strategies to further the success of their business. ii. Development and use of methods which are of value to the organization and which shall create value for the customers. Strategies: i. Developing a strong and reliable distribution network: Identify potential dealers who are in the same business or even otherwise, induce them to stock the products. ii. Creating a brand image depends on offering a quality product like that of Dominos, Kentuky Chicken etc. Make sure the roasted coffee is of high quality. iii. Quality of Coffee is always dependent on maintenance of its flavor, freshness and the packing. If this can be retained during the shelfing period then the products shelf life increases and hence its salability. iv. Identify sources from where fresh and high quality coffee beans can be procured, make a pact with them for sole purchase agreement to ensure regular and timely supplies. Timely supplies are a key to supply chain success (remember the Japanese Zero inventory management theories). v. Direct sales through E-sales: E-sales is the vogue of the industry presently. Especially the concept hogged the limelight because of the banking industry requirements and is generally applicable for any business. In the Home page of the web site give all the possible details regarding the products, the organization back ground as effectively as possible. Give details such as the sources for the coffee beans (if it is a strength), the mechanism used in grinding etc. Some of the features in E-sales can be developing a site which is interactive through which customers can log into the site and seek information regarding the types of coffee available, their prices etc. Also they can log in a request for a sample for testing. During the request for sampling process the Geroge's management have to give options for registering with the web site so that there will be prospective customer data base available for the management. For example in ICICI bank they have a similar website from which customers can log into the site and order for a particular product. But they have made it mandatory for prospective clients to register their details before they can actually proceed any further. By using the same ploy George's management can definitely make an impact on the customers. Yet, one thing they have to be very certain, connection of the related web pages. In the case of direct sales through internet unless it is coupled with the price list in which the updated prices have to be represented all the time it cannot make an impact. Problem areas: However there can be problems if the site is not maintained well. Customers often face typical problems such as updation of fields (happen many times because improper coding of Java Script), availability of relevant information such as correct pricing, the phone no's to be called for placing an order, ordering forms etc. Also customers may not like the option of paying through net. It can be avoided. Also it is not costly to develop and use E-sales feature. Develop a web site through which customers who are far away can log in directly into the web site and order for products. Payment can made on delivery which normally customers feel comfortable with. vi. Develop a Telephone ordering or mail ordering system: A telephone ordering system always helps. Customers often feel comfortable in placing an order over the phone rather driving away to a coffee outlet to place an order. However if a mail order system can be added to this to make much more effective. There are soft wares which automatically download once a mail is received and notifies the tender about the receipt. Development of such a system can ensure easy and cost effective mechanism also. Inorder to go for an online ordering system, the George's management has to ensure through website they are able to collect all the relevant information to close a call. They can seek information such the 1. Name and address of the corresponding party, 2. Their social security pin 3. Contact Phone numbers, E mail address, mailing address 4. A brief history of the customers back ground like the nature of business/profession they are into etc( always helps in developing a strong CRM). 5. Leave enough space for recommendations or opinions of the customers ( feed back always helps). 6. Their preferences, tastes and the flavor they like and are using most. Problem areas: The only matter for concern is that because the concept is new, convincing the customers that the concept is refreshing and is of no harm to them is of importance. Also do not seek information which the customer may not be comfortable with. Identifying a fake customer can be a problem and needs some enquiring into the information provided. Competitors can also log into the system posing like potential customers to test the products, requires lot of back ground calling and identifying before deciding a sale is necessary. vii. Developing an E catalogue: An E-catalogue is one which the briefing about the company, the product features, price, quantity and other benefits if any are always mentioned electronically in the sense the catalogue is maintained on the web site and it is always updated to represent the current features of the products. The advantage of using a e-catalogue is that an occasional visitor on the net also can browse through the net and may get attracted to the brochures and ultimately can buy the product. Also by mentioning the price, discounts and other benefits the customer can take an instantaneous decision. Obstacles & Limitations: However the methods suggested are not devoid of problems. They have their own quota of difficulties as well. i. Untrained and ignorant staff may misinterpret and ignore requests resulting in potential losses. ii. Advertising through net and order lacing, receipt of orders through net, payments through net are a big concern for customers safety. One better way is to identify alternate payment methods. iii. The chances of somebody using net only to come to know about George's coffee is a big limitation. At least initially the organization may have to go for other channels of advertisements. iv. The organizations size is a limitation as well. Because any business plans of that magnitude requires lot of image and size also. v. To build a brand image to get going takes lot of time, especially in markets like U.S where the customer relate quality with period of business existence. References 1. Kotler Philip, 2004, Marketing Management, Prentice Hall of India, 135-138, 325-345. 2. 2004, The Complete MBA Companion, Kellog, p.145-150. Read More