Business Strategies for Cafe Coffee Day - Example

Your Name] [Your Title] Café Coffee Day Business Plan for Café Coffee Day Prepared: Table of Contents Business Plan Summary 4 The Business 4 The Market 4 The Future 4 The Finances 4 The Business 6 Business details 6 Registration details 6 Business premises 6 Organisation chart 7 Management & ownership 7 Key personnel 7 Products/services 8 Innovation 10 Insurance 10 Risk management 10 Legal considerations 10 Operations 11 Sustainability plan 12 The Market 13 Market research 13 Market targets 13 Environmental/industry analysis 13 Your customers 13 Business Plan Summary The report highlights the manner Café Coffee Day is looking to conduct its business and presents the different strategy in relation to marketing, pricing and others which will be adopted by the organization. This thereby helps to understand the manner in which the business will be able to gain effectiveness and will help to understand the different strategy that has to be adopted for future development. This is matched by understanding both the internal and external environment and identifying the different factors which will help to improve the overall business The Business Business name: Café Coffee Day Business structure: Sole Trader ABN: Not Applicable ACN: Not Applicable Business location: Melbourne Date established: May 1, 2013 Business owner(s): Individual Relevant owner experience: Have handled manufacturing business but is new to service industry Products/services: Freshly blended coffee The Market Target market: Students, Office Goers and every one who is fond of coffee Marketing strategy: To attract customers the organization is focusing on advertising about their product and looking to highlight the freshness that customers consuming coffee at their store will have in comparison to other packed coffee The Future Vision statement: To be the most desired coffee chain where customers prefer to drink coffee because of freshness, superior taste, proper pricing and multiplying experience Goals/objectives: Short Term Goal: To improve awareness about the store and its different product offerings so that more and more customers can be attracted towards the product Long Term Goal: To develop a brand image so that people look at finding the chain when they have to consume coffee The Finances The money required in the business will be both borrowed and self financed. The coffee provider doesn’t look to make big profits early on but as the business will grow the profits will grow in the future years. The Business Business details Products/services: The organization looks to sell freshly made coffee from coffee seeds and will provide an aura and taste which is different from others. In addition to it different variants of coffee from different countries, exotic desserts and pina coladas will be available. Registration details Business name: Café Coffee Day Trading name(s): Café Coffee Day Date registered: 15th April 2010 Location(s) registered: Melbourne Business structure: Sole Trader ABN: Not Applicable ACN: Not Applicable GST: Yes Domain names: CCD Licences & permits: Food licence, fire licence, trade licence Business premises Business location: The business is being established in Melbourne on a busy street. The size of the store is around 1200 square feet. The location has been chosen on the premise that it attracts crowds which includes students, house wifes, working class and all type of people that the city has. Further, the layout has been designed to multiply the pleasure of having coffee and will ensure that the people visiting to the store have a great relaxation time Buy/lease: The location has been leaded for a period of 10 years after which the contract will be renewed and the rate which will be increased to ensure no loss for both the person who has leader the land and the person who has taken it on lease. The arrangements have been done through a legal system to ensure that no party breaches the contract and the business can be carried out smoothly. Organisation chart The business structure is as Management & ownership Names of owners: Since, the business is a sole trader business the business is owned by Mr. Charles Hick Details of management & ownership: The main role will be of the store manager who has to manage all the business transaction that will take place and will be responsible for the entire business. Mr Chris, the store manager has an experience of over 10 years and will be assisted by other employees within the organization. Experience: The owner of the business is new to the service industry and has linkage with the manufacturing industry. The owner has thereby hired people who are trained and have the required skills through which they will be able to deliver superior performance. Mr. Chris the store manager has an experience of over 10 years and the sales person who have been hired and will come in contact with the direct consumers have an experience of over 3 years. Key personnel Current staff [List your current staff in the table below.] Job Title Name Expected staff turnover Skills or strengths Store Manager Mr. Chris Stevens 24 months 10 years experience in handling stores. Good reputation with the customers and soft speaking skills Accounts Manager Ms. lawrence 18 – 24 months 8 years experience in accountancy. Knowledge about different accounting softwares and complete knowledge about different government rules and regulations Sales Person Ms Reid & Mr Stevens 12 – 18 months 3 years experience as sales person and the ability to understand customer requirements and supply products according to their requirements Event Coordinator Mr Cheng 12 – 18 months Experience over 5 years in organizing different events in the store to attarct customers Required staff Job Title Quantity Expected staff turnover Skills necessary Date required Sales Person 2 18 – 24 months At least 2 years experience in the field 6 months later Purchase Manager 1 36-48 months 5 years experience in dealing with purchase requirements of a service industry 6 months later Recruitment options The recruitment will be done through advertisements in leading newspaper and job vacancy list. This will help to reach maximum number of people and will thereby ensure that a large number of people come for the interviews which will be carried out in a organized manner. This will help to ensure that the correct talent is retained and will help to improve the overall efficiency of the recruitment process. Training programs The employees will have to undergo a training program which will help the employees to understand the service industry. This will be matched by the fact that training will be provided in different directions so that the employees interact with the customers properly and take steps which will help to maximize their experience. Training programs will be on a half yearly basis for the present employees and will look towards developing the required momentum through which employees will be able to perform in a better manner Skill retention strategies To ensure that staff remains within the organization the coffee shop looks towards ensuring that the employees are motivated. The organization has ensured proper salary along with proper training to ensure that the employees remain motivated. This has been matched by the fact that the organization further looks to develop an environment which is friendly and looks towards developing the skills of the employees for different jobs within the organization. Products/services Product/Service Description Price Coffee Different Variants of Coffee from different countries Price varied from $12 to $35 Deserts Different type of desserts like choclate, vanilla to name a few Price varies from $7 to $ 19 Pina Colada Different taste and flavour Price varied from $10 to $ 25 Market position: The pricing and the different products which the coffee store looks to provide will ensure a competitive pricing policy where the customers buying different products or services pay according to the products offered by them Unique selling position: The unique selling proposition for the coffee shop is that the coffee seeds will be blended instantly and will have coffee seeds from different countries. This will help to ensure that the taste and aroma of the product doesn’t get lost. The entire process will be visible to the customers which will thereby ensure authenticity in the products being offered Anticipated demand: It is anticipated that a customer visiting the store and fond of coffee will visit the coffee store fortnightly and in some cases even weekly Pricing strategy: The pricing strategy that has been adopted is as per the prevailing prices being charged by other competitors. In addition to it the price that will be charged has been kept to ensure that all section of society can afford it plus the coffee store is able to ensure sufficient profits due to the differentiation which they have in comparison to the competitors. Value to customer: The product for the customer will be treated as a luxury as apart from the pleasure that the coffee will provide the customer will undergo a different experience and will pay higher than a normal coffee due to the differentiation strategy which will make it a luxurious product Growth potential: The market is anticipated to grow by around 15 to 20 percent as the strong quality and taste along with the different offering and differentiation strategy will help to attract a lot of customers towards their product. Innovation Research & development (R&D)/innovation activities The coffee shop looks to develop new products and variants of coffee by undergoing required innovation which will help to develop products which are better. This will require employees who have knowledge in the required direction so that based on it better products can be produced Intellectual property strategy The company doesn’t look towards having any patents on its products except the brand. Since, coffee is prepared from coffee seeds and every other person has the right to make coffee so patenting it become difficult. Further, the coffee shop looks to give their product an edge and will thereby ensure better taste for the customers Insurance Workers compensation: The company looks towards having employees compensation as the legislation in Australia requires so Public liability insurance: No such insurance has been undertaken Professional indemnity: No such details are available Product liability: No Business assets: The business has different assets like crockery, utensils, furniture and the entire store where people will have coffee Business revenue: No such insurance has been undertaken Risk management Risk Likelihood Impact Strategy Fire High High Installing fire extinguisher Theft Low Low Having proper locks Legal considerations The organization has to ensure that the legal aspect with regard to food is maintained. The entire process requires that the organization has the require fire, food and trade licence to carry their business which have been taken. This will help in the smooth functioning of the business and will ensure no problems from any areas Operations Production process The production process is mainly breweing the coffee beans and converting it into powder so that it can be used for consumption. Since, the company will not produce the product directly but will source it from other sources so the production process mainly looks towards converting the coffee beans into coffee powder and then into coffee Suppliers The organization has looked to procure the coffee beans directly from suppliers from different countries. For this purpose the organization has directly contacted the suppliers and has looked towards developing a long term relation so that constant supply of coffee beans is available Plant & equipment Equipment Purchase date Purchase price Running cost Phone 1st April $120 $25 Computer 1st April $720 $35 Fax 1st April $350 $15 Inventory [List your current inventory items in the table below. If you have a substantial inventory, you may prefer to attach a full inventory list to the back of this business plan.] Inventory item Unit price Quantity in stock Total cost Coffee bean Varies Deserts Varies Technology (Software): The company has installed a software for billing purpose which provides details about the product and the cost so that the customer can understand it easily Trading hours: The store will open at 8 in the morning and will continue till midnight Communication channels: The customers can be contacted through mails, phones, fax or any other form of social media Payment types accepted: The organization accepts cash and cards Credit policy: The coffee shop doesn’t look to provide credit to its customers Warranties & refunds: Chances are rare but in case it happens the total money that the customer pays will be refunded Quality control: The coffee store looks to ensure that the same quality beans are purchased and regular quality checks will be done to ensure the same quality Memberships & affiliations: No Sustainability plan Environmental/resource impacts It doesn’t have any negative impact on the environment as the coffee store looks to use eco friendly utensils which can be recycled Community impact & engagement The impact on the local community will be not take place as the working of the organization doesn’t have an impact on the environment Risks/constraints Use of water, electricity and gas Action plan [List your key sustainability/environmental milestones below?] Sustainability milestone Target Target date Reduce water consumption 30% reduction 1st january 2013 Reduce electricity consumption 20% reduction 1st january 2013 Reduce consumption of gas 30% reduction 1st january 2013 The Market Market research The research has been done based on previous studies and statistical data which shows an increase in the consumption of coffee especially among the younger generation. This has been aided by the fact that the number of students is increasing and provides an opportunity through which the coffee store can tap those customers. In addition to it the change in the social culture and the increase consumption of coffee by office goers, house wives and people of all ages provides an opportunity to sell the product to a lrge section of the society Market targets The coffee store looks towards attracting customers who are fond of coffee and includes students, office goers, house wives and all section of the society who looks to spend some time over coffee. In addition to it the coffee store also looks towards attracting the elderly as they can have a different experience and ensure that they derive immense pleasure from having a cup of coffee Environmental/industry analysis The industry analysis of the coffee market shows that there is an increase demand for coffee as people of all age have started consuming coffee. Coffee which was previously drunk by a few has seen a huge spurt. This has been aided by the fact that students look to spend a considerable amount of time in the coffee stores. This has increased the consumption of coffee and has thereby increased the size of the coffee market. The other factor which has resulted in the growth of the industry is that the availability of different type of coffee beans from different countries has made more and more people to be attracted towards the product and has thereby increased the demand and consumption of coffee Your customers Customer demographics The coffee store looks to attract mainly students and office goers. This has led the store to be developed at the market place which is near to the university. In addition to it people willing to spend time in the coffee stores will also be attracted towards the store. This has thereby ensured that people of all age will be attracted as the store looks to offer different products for different age groups Key customers The key customers for the coffee store will be students and office goers Customer management To ensure proper customer management the coffee store will look towards delivering products which are of superior quality. The coffee store has developed standards based on which they will look to serve customers and will ensure that they take all steps to satisfy the customer. This will be matched by understanding the requirements of the customers and ensuring that when the customer leaves the store the customer has a smile and looks towards visiting the store again and again. Read More