Coffee House Description of the Business Plan Paper Example

Introduction

Our Coffee House will be the favorite place for coffee lovers. We plan to serve high-quality coffee plus snacks and pastry in a relaxed and trendy atmosphere. The location is convenient. We shall provide an excellent customer service that will lure the public and will help us build a stable flow of customers. Our primary products will be the top edge gourmet coffee products, for example, cappuccinos, lattes, espressos as well as various snacks especially the healthy ones.

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Opportunity and Needs

Our business will be located in Southwest Washington, within walking distance of schools and office complexes. We intend to benefit the local community by making enough available seating allowance and modern vibe.

With the different trends in the coffee making venture, we are planning to embrace the various types of the same beverage that suit most tastes.

Coffee making industry expands on a daily basis since the percentage of consumers expand daily. Our coffee house is therefore expected to share the market's profit with the competitors in the industry.

In our instant location, our competitors comprise mostly fast food sellers. We intend to take the higher Southwest Washington's coffee market by providing coffee products that are non-machine-made and gourmet, at reasonable costs that everyone can afford. Alongside our excellent customer service and unique atmosphere, we intend to focus on the sophisticated coffee consumers' tastes.

We will offer professionally designed counter service, comfortable, beautiful interior space. The seating design in the interior will be a combination of small individual tables to allow privacy, as well as benches for large groups.

To reduce costs and our customer demographics, we will use computerized variety advertising methods. We plan to advertise our products aggressively via our website, notice boards and the social media where we will post our daily specials and offers (Morrison, Breen & Ali, 2003).

The area we have chosen has 3,500 square feet of room and space for an outdoor patio/yard, which requires a couple of renovations.

We conducted market research, which shows a higher percentage of residents in Southwest Washington drink a couple of cups of coffee every week.

Our marketing strategy is to provide southwest Washington's residents with top quality products, excellent service, and a greater seating space indoors and outdoors. Our objective is to be the place to hang out with friends, relax as they enjoy a good cup of coffee. We will also offer high-speed Wi-Fi, which will enable the residents to work or communicate with their partners or friends effectively at no additional cost (Sandy, 1990).

Value Proposition

The coffee and bakery outlet will have an extemporary design and set specifically to increase comfort and luxury of customers. The design will specifically aim at targeting customers interested in spending long hours at the shop. Comfortable seating areas along with easy and fast Wi-Fi access will be put in place for customers who choose to spend time in the shop. The Internet allows our customers to carry on with their social life and business tasks as they take meals at the shop. The strategic location of the shop allows us to target both the working class and students from the schools around.

The focus of our business will be the customer. The shop will specifically work towards meeting customer expectations and ensure that they are fully satisfied. Satisfaction will be achieved through excellent customer service and high-quality products (Mukerjee, 2010). To accomplish this, we will have a customer portal on our website to receive customer compliments and complaints. We, therefore, will serve customers according to their tastes and specifications. The business will manage to attract different customers through the high quality of products and the focus of customers through customer service. The shop will fill the gaps in customer focus and quality in the market.

The specific products will meet the customer needs; the shop will offer a high-end and broad range of coffee, bakery and pastry products at affordable prices. The coffee products will include espressos, cappuccinos, and lattes, all from high-quality Columbian grew imported coffee beans. Freshly prepared bakery and pastry products will be available at all times during business operations. These high-quality products will target all classes of coffee customers from simple to sophisticated buyers (Rahim & Ben-Daya, 2010). For the in-and-out customers, pre-order capabilities will be available to avoid any time wasting as well as take away services with specialized packaging to enhance comfort during carriage. The packaging will also be designed to keep the coffee and other products hot.

Operation costs are key in determining the prices of products. The shop intends to offer the high-quality products at affordable rates. Therefore, reduction of costs will allow the shop to sell at reasonable and affordable prices. The business will focus on cutting the costs of administrative activities and advertising by focusing on targeted customers only to reduce costs. The electronic advertisements will play an important role in the reduction of marketing costs (East, 2008). Social media platforms and the company website will be used to post the different products and the daily offers that the business will be running.

The business will undertake periodic surveys to know customer feelings about service of the shop to improve performance (Tiem, Moseley, & Dessinger, 2012). It will run 24 hours a day to cover for the customers who work late at night. The shop will also offer a differentiated service by allowing customers to get points every time they visit the shop. The points will accumulate, and customers will be free to redeem them for the different products in the business. This service will aim at providing better customer services and appreciating the customers for their purchase.

The shop will add value to the market by providing an inclusive service. It will include providing a place where friends can hang out with optimum quality, service, and good space. Customers will also have access to the free high-speed Internet, which will allow them to carry on their business while at the shop.

Discounts can be given to students on certain items when they come to maintain loyal customers (Department, 2018). After having the business open for a couple of weeks, we will notice the slower days and hours. To regulate the slow traffic to a normal day's sales, we will introduce offers that will keep the customers coming in for our coffee. As for baked goods, the most popular goods should be sold including trending items such as cake pops, banana bread muffins, and scones. Healthier things can be made and sold, even vegan ones to satisfy customers. As always we will have the portal open for customer suggestions on any new good we should have in our shop.

Target Market

A coffee shop targets different classes of people who desire to have a cup of coffee in a comfortable and relaxing atmosphere. These customers vary in both age, tastes, and preferences. However, the selection of the location of a coffee shop is highly determined by the consumers it intends to target (Review, 2010). The setting of our coffee shop is strategically set to target students, working class, couples, travelers, and people with meetings.

The shop is located a walking distance from a college and university. It targets the students who like coffee and love to be in a comfortable environment where they can hang out with friends and study as it has cabins which they can use for their studies (Akdeniz, 2014). The shop, therefore, is set to target the student population. The coffee shop also has some partitions, which couples can use for a date. Couples are ushered in by posters in the different rooms indicating the offers that are available for the various days. The cabins provide a serene and private environment for two people who would want to meet in private and spend some time together. Couples are therefore another targeted group for the coffee shop.

Travelers are a significant market for coffee shops; thus the shop targets travelers. It is set on a busy road at a stopover for travelers. The shop will offer washrooms to travelers as a means to get them to buy from the shops. The positioning is strategic to attract travelers to be part of the shop's market. The shop is also located close to some office complexes. It enables it to reach to the working class people as part of the market. As workers go to and from work, they can pass by and get a cup of coffee. The shop will have coaches that will keep the office workers in a relaxing mode out of the job environment. Students will select from the various snacks that are pocket-friendly for their financial convenience. The shop will also have the arrangement to deliver coffee to different offices depending on placed orders (Godsmark, Arduser, & Brown, 2014). The website shall have a provision through which customers can make orders for delivery. This provision mainly targets the group of people in the working class.

The coffee shop also targets people in the business class. These individuals continuously hold meetings. The shop has a few rooms to allow people who want to hold a meeting get the space. These individuals are perceived to be influential therefore a good group of people to target. The shop does not target a specific social status group but opens for all groups.

Unique Benefits

The customers will enjoy a quality brand of coffee, have access to the delivery of products and receive the drink according to their specific requirement (Westwood, 2013). The customers will enjoy the use of free internet at the shop without restrictions. They will also have a privilege to get points every time they come to the shop. The points will be redeemable to allow the customers to enjoy a service at the shop as an appreciation for visiting the business. The shop will also have regular offers, which will enable the customers to buy products at lower prices.

The products, therefore, will be of high quality, taken at a comfortable place at any time of the day. The customers will also benefit from the excellent service they will receive at the shop. They will also have access to the different varieties of coffee depending on their preference. The shop will offer differentiated services on coffee usage and sell high-quality coffee to customers. Brochures with information about the various types of coffee will be available on the coffee tables for the interested customers to view.

Competitive Analysis

Question 1: Competitive matrix

The above matrix shows the performance of our shop's competitors at a scale of five comparing different factors. Starbucks, Macdonald's and Cafe Coffee are the direct competitors to our shop, Dilmah is an indirect competitor providing tea products, and Dunkin Donuts is a substitute by preparing different pastry products (Aaker, McLoughlin, & Wiley, 2013). The hotels and other possible new coffee shops are the future competitors for our shop.

Question 2: Comparison among Competitors

Competitor Strength Weakness Differentiation

Our Shop Cheap and quality products/great customer service Limited source of operational capital Face to face customer service

Macdonald's Finan...