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Today coffee is a very popular drink for many people and the feasibility of this project is obvious. In order to validate the erectness of your choice in the development of a new coffee shop, propose you to familiarize with the following words: in the world trade, coffee is one of the most valuable products (Leaks 2013). This marketing plan will provide the main marketing approaches that could have a big impact on the success of this project. The main of them: PEST analysis, SOOT analysis, marketing objectives, positioning, segmentation, etc.
In this study is taken into consideration that the marketing plan must be created with a vision for a long time, so that the owners of this particular business can feel secure in the next three years. TABLE OF CONTENT Executive summary 2 1 . Situation analysis 1. 1 Current situation 4 1. 2 PEST analysis 5 2. SOOT analysis-7 3. Key issues 7-8 4. Assumptions 5. Objectives 8-9 6. Target market and positioning 9 6. 1 Target market (segmentation) 9-10 6. 2 positioning 10-11 References 12 1 . Situation analysis This part of the marketing plan will analyze the internal and external factors for the “Coffee” coffee shop.
Will be used PEST analysis better to describe external factors that affect the coffee shop in Almost. 1. 1 Current situation A few words about the coffee shop business in Astrakhan, it started to evolve only in mid-sass’s. Gradually but surely, people began to move out of restaurants and cafes into the cozy coffee shops. Coffee houses have become an alternative place for business meetings and informal communication. This particular market is not very competitive yet, and new players may still enter this business (Khaki World 2013).
The “Coffee” coffee shop was purchased earlier this year. No changes have been made since the purchase with the exception of the new name. The new owners intend radically change the image of existing coffee shop. It is vital to note hat the business center is huge; there are many companies with thousands of employees, and especially they are business people. Also, there are a big variety of restaurants and cafes. But they could not be mentioned as competitors. In fact, such places have a lot of customers for a coffee shop.
However, to attract a lot of consumers the coffee shop should provide the most quality services to meet the needs of each consumer. Of all that is viewed in a coffee shop can be concluded that people who work in the business center do not particularly find it an attractive place, this can be explained by the following facts: The main one is that the coffee shop does not have enough interior and amenities for visitors. Regular chairs and tables are placed around the perimeter, no sofas and no comfortable armchairs. The equipment using there is obsolete and does not have high performance.
Range of coffee is not so great, but it is also important to note that the cakes are not always fresh. Should be mentioned that the coffee shop has a small number Of staff they are an accountant, director – purchaser (both are members of the family), bartender, waiter and cleaner. Despite numerous horologists the “Coffee” coffee shop has important advantages. First of all, in the business center there are no direct competitors, this means that the number of consumers in the provision of high services could grow significantly.
On logical grounds, it can be assumed, that this project may later become a favorite brand of many people who cannot live without coffee. 1. 2 PEST analysis A PEST analysis is a marketing tool, which analyze the external micro- environment that affects all companies. P. E. S. T. Is an acronym for the Political, Economic, Social and Technological factors (Entomb 2010). Political – Astrakhan has a specific organization “Adam Entrepreneurship Development Fund SC”, its mandate to support small and medium businesses.
Current coffee shop project falls under one of the programs of the Fund, “The Program of funding of private enterprises, engaged in the service sector in Stand and Almost cities” (ADMIT 2014). Economic – “Astrakhan has experienced a national economic revival since the collapse of the Soviet Union. As incomes have risen, the buying habits and attitudes of consumers have changed” (REMUNERATION 2013). For instance, more consumers afford to have meetings in the coffee shops, and this habit is coming more widespread.
Social -?? Coffee is a drink for every person it does not matter what is the age or gender of the consumer. No doubt, people have different tastes that are why is more important to learn what type of coffee prefers different groups of people. Technological – There is no secret that coffee production in such companies as Cataracts or Costa is automated. Thus, they increase the speed of servicing. 2. SOOT analysis In this part of the marketing plan are going to be used all relevant internal and external information regarding a coffee shop in Almost.
McDonald (2007) tote that intelligence comes from information and “intelligence describes the marketing plan”. According to Pierce and Giles (1 989), one of the easiest structured approaches is a SOOT analysis, which is able to evaluate a company’s strategic positioning and to define strengths and weaknesses, as well as opportunities and threats in the environment where the company is operating. The SOOT analysis helps to realize to a company’s what goals they want to achieve in a certain period of time, how they will achieve their objectives and what resources will be needed for success (McDonald 2007).
Thus, to develop the “Coffee” coffee shop the main thing should be done is a SOOT analysis. Based on the evidence, that was given by the owners of this business and things that were inspected visually. The current situation Of the coffee and cake shop for the year 2014 can be described in the table provided below. In addition, future opportunities are also given. Convene intent location No direct competitors Owners desire to be the best WEAKNESSES Obsolete equipment Not experienced team Not good enough interior No conditions for baking cakes Not quite a wide range of coffee Small staff OPPORTUNITIES
Possibilities to grow updated equipment Good reputation for owners Serving homemade cakes Special discos nuts for frequent customers Coffee delivery THREATS Find a team of professional workers able to change the interior of the coffee shop Obtaining permission to repair from the management of the business center Future competitors Source: Author (2014) STRENGTHS 1) Convenient location: located in the central hall, so many people will smell a good coffee. Furthermore, that can be a good place for business meetings. 2) No direct competitors: there are no needs to spend a lot of time and money n making different advertisements.
The high quality of coffee will be it. People do not have a choice, but there are still restaurants and cafes, so the quality of products is the most valuable. 3) Owners desire to be the best: very strong point, because the owners, not only run a business but also they are involved in work. They really want to create a good image and become a coffee brand. WEAKNESSES 1) Obsolete equipment: cannot work on a full capacity. Takes a long time to serve people. It is a well known that new equipment much smaller than used to be in the past. Will appear free space for other equipments. Not experienced team: the wait staff was not trained to improve their knowledge about coffee industry on the special COUrses, so to be able to advise customers to choose the appropriate coffee. 3) Not good enough interior: customers should choose to stay at a coffee shop, but not comfortable chairs do not allow customers to feel comfortable. Moreover, there is no TV and no pictures on the walls. Modern coffee shop should be very comfortable and beautiful. 4) No conditions for baking cakes: today the coffee shop buys cakes from big stores and resells them. Sometimes those cakes are not fresh. It spoils the reputation of the coffee shop. ) Not quite range of coffee: as it is a coffee shop there should be a huge variety of coffee to satisfy the tastes of each consumer. Currently, they provide only four types of coffee (Espresso, Cappuccino, Americana, and Cafe Latte) and tea. 6) Small staff: just two employees directly serve people (one bartender and one waiter), they are not able to serve a big amount of consumers. Their productivity decreases significantly during the working day. OPPORTUNITIES 1) Possibilities to grow: to become a well-known brand, to be a favorite coffee hop of many people, to provide high-quality services. ) Updated equipment: new equipment will increase the productivity and will have many new options that can be done automatically without external help. 3) Good reputation for owners: this is the basic aspect for many entrepreneurs. In the future, they could broaden their business, and people will trust them. 4) Serving homemade cakes: very important option, because customers will be pleased with freshly baked cakes. 5) Special discounts for frequent customers: at the first stages it seems to be very good to encourage customers who will often buy coffee and cakes.
After they will become loyal customers. 6) Coffee delivery: for the convenience of customers, most of them employees of the business center, coffee can be delivered to the office. Such option should be very popular. THREATS 1) Find a team of professional workers able to change the interior of the coffee shop: very important to entrust the work to professionals. All details must be worked out. 2) Obtaining permission to repair from the management of the business center: usually, they do not happy with such things, and they require an explanation. ) Future competitors: it is risky when after some mime company faces competition, because it is difficult to be on the top all the time. 3. Key issues The basic concept which describes marketing is that of human needs. People’s needs are shaped by individual personality and cultural aspects of the region where they live (Kettle end Armstrong 2014). In launching this new brand, the main issue is to create a good image of the coffee shop based on providing good services with the highest standards to satisfy the needs of consumers.
Another vital issue is to use the experience of the world’s well- known companies, such as Costa and Cataracts coffee companies. It is necessary to be prepared to face a new competitors, because this market is growing very fast especially in developing countries, which Astrakhan is. Also, international experience contributes to the approximation to the highest standards. New elements must be used to be recognizable, the best solution to use the features of local culture. Attempt to pass through the interior of the coffee shop the Khaki culture, so to please local people and foreign visitors are coming to the business center.
The underlying idea is to be the hallmark of the “Unruly Tat” business center. 4. Assumptions There are certain key determinants of success in all companies about which assumptions have to be made before the planning process can proceed” (McDonald 2007). According to Kettle and Armstrong (2014), marketers need to analyze the market situation constantly in order to develop successful plans and programs of action. Often, analysis of internal information is the basis for assessing the current situation of the market.
Marketers use different research methods to identify areas for improvements if the results do not justify the means. It seems to be vital to organize a grand opening how, where can be invited all managers of existing companies. That would be a great advertisement, also some popular singer can be asked to come to taste great coffee and to sign couples of song to create a fun and auspicious environment. There is no doubt that coffee and cakes should be free in that day; it would be a good start for conquering sympathy of future customers.
The main assumption is that the investments made in a coffee shop should be compensated in the period of three years. 5. Objectives In accordance with Gain (2000 p. 21 5), “Setting the proper objectives depends upon procurement of the potential success of the strategy; however, you cannot determine the strategy until you know the objectives”. The main objective is to become the most trusted and recognized brand in the coffee industry of Almost city. Be a market leader in the next three years. Grow revenues by 20% per year each of the next three years. Launching new products, especially new types of coffee.
Acquire the most modern equipment for the production of coffee to speed up customer service. Purchase special equipment for baking cakes. Create a website through which consumers can order coffee in a business enter with the option of fresh coffee delivery. Need to conduct a survey on the website, where customers will be able to assess the level of service. Based on the results it is necessary to achieve at least an 85% excellent customer service rating each month. Should be a discount system for regular customers, where every tenth coffee given as a gift. 6.
Target market and positioning in this target market This part of the marketing plan specifically focused on the study of the target market as well as market positioning. It will help to understand who would be the main consumers and what possibilities have a coffee shop for growth. . 1 Target market (segmentation) “After segmenting the market, the business must select those segments it aims to target. Five factors govern the attractiveness of the segment: segment size, segment growth, profitability of the segment, current and potential competition, capabilities of the business” (Doyle and Stern 2006).
It is necessary to analyze the main five factors influence the attractiveness Of the coffee and cake shop in the business center in the Almost city: Segment size Many big businesses ignore small segments, because overall sales and profits would not be very high. However, this creates a good opportunity for small businesses (Riley 2012). As a coffee shop is a small business which operates in a specific area, which is a business center. It can be observed that all employees from the “Unruly Tat” potentially could be perceived as future consumers. Majority of them, are business people who need to be concentrated during the day.
That is why the will be interested in coffee, because it contains a stimulant called caffeine. This particular ingredient increases the energy level of human. Segment growth – “This particular market is not very competitive yet, and new layers may still enter this business” (Khaki World 2013). In fact, that the coffee market is very young in Astrakhan, so the existing coffee shop has a great capability for growth and to become a strong power in this industry. Profitability of the segment – First of all, the owners of the coffee shop must be ready to meet all needs of consumers.
Different people have different taste that is why demand should be satisfied. Otherwise, the profit will not be at the maximum level. As it was mentioned before due to the fact that there are no direct competitors, it could be assumed that if the coffee shop has a did range of products then consumers will be ready to spend their money in the “Coffee”. In turn, this will maximize profits. If this scenario is successful, then investments that will be allocated to improve the current conditions of the coffee shop will be covered in the next few years.
Current and potential competition – According to the latest knowledge the coffee shop has no direct competitors. But coffee industry is growing fast in Astrakhan, therefore, the appearance of new players is inevitable in this market. Recalling the experience of international coffee shops, coffee shops deed to evolve constantly to stay relevant. “Costa has been voted the nation’s favorite coffee shop for the third year in a row, but we don’t like to rest on our laurels – we want to make things even better” (Costa Coffee 2014).
Capabilities of the business -?? The main task is to make so that the brand “Coffee” associated with the quality of products offered. To make it recognizable for many people. These circumstances and the experience acquired in the future will allow to the owners of the brand “Coffee” to become a franchiser. 6. 2 Positioning in this target market In accordance to Doyle and Stern (2006) after the segment is selected, the firm must strive to create a differential advantage that will make its proposal preferred to those of competitors. This approach will then develop a marketing complex for the realization of this strategy of positioning.
Positioning strategy is the choice of target market segments, which determines where the business is competing and the selection of the differential benefits that determines how it competes. Positioning is the process, in which companies should create in mind of buyers an image, perception or reputation of the company and products in relation to imitators, then is the perceived match between a specific product and the needs of the target market (Hellholes 2010). The most important here is to know what types of coffee will be available at coffee shop.