Vision

The current business plan is based on the development of coffee shop that will be located in the Perth. The cafe will comprise of 1700 square feet area under a newly constructed premises on rent with lease facilities that will be extendable up to five years (Brinckmann et al., 2015). Java Coffee House is named for the brown liquid coffee and stands out from the corporate shops based on their fast food concept.  

Vision, Mission and goals

Vision:

1. The vision of the “Java Coffee House” is to design a model of business which is franchise ready
2. The vision of the company is to increase their revenue by 10% in the second year of its operations or by 20% in the third year
3. The vision of “Java Coffee House” is to attain a desirable profit margin to continue its operations
4. To be cafe of choice for the customers by provide them with coffee of premium quality   

Mission:

The mission of Java Coffee house is to make its best effort in creating a unique place for their customers so that they can meet people under a comfortable and soothing environment and simultaneously enjoying the best-brewed coffee or espresso in the town. Java Coffee house will put maximum amount of effort in relieving their customer’s daily stress by providing with the ambience that will offer them peace of mind, friendly customer’s service and product of constant high quality (McKeever, 2016). Java will invest their profits in order to increase the strength of the employees satisfaction along with stable return to its owners.

Goals: 

Product and services: 

“Java Coffee Shop” will be primarily offering gourmet roasted coffee with several varieties such as Mocha, Carmelicious, White Mocha, Candy Latte, Brewed Coffee and Ice Cold Coffee. In addition to this, as a complementary the coffee will be hosting a smooth line with wild berry, strawberry, mango and peach (Schaper et al., 2014). To round out the straightforward menu there will be pastries that will be provided by “Java Coffee Shop” obtained from the outside supplier. These pastries will be freshly made and delivered regularly however, the offerings of pastries may differ due to seasonal changes but the primary line of complementary will include cookies, scones and rolls.

Business Organisation and Finance structure: 

The financial structure of “Java Coffee Shop” will consists of owners contribution of $50,000 and $25,000 will be obtained as a bank loan. The company will be 100% owned by the owners in the form of partnership forms of business. The structure of the cafe house will consist of 40 seating capacity (Weil et al., 2014). The site will comprise of 1600 square feet of leased space comprising of dining room, rest room and storage room in the back. In order to use the area as a restaurant, the store front will be appropriately plumbed and wired.

Mission

SWOT Analysis: 

Table 1: Table representing SWOT Analysis

Source (As Created by Author)

Premises, Plant and Equipment: 

The premises will be taken in rent under the five-year lease availability, which can be extended. A custom coffee bar is required to be build. The equipment for the coffee house will consist of two commercial coffee machines with pots and urns. The equipment will also consist of commercial blender, commercial brewer, loading coffee bins and barista syrups. Cold drinks dispenser, equipment for frothing, a refrigerator, microwave and utensils will sum up the plant, premises and equipment.

Information system and telecommunication: 

Java Coffee House will have a straightforward website, which will help in identifying the menu, which will be served by the company. Along with this, the information system will also have a calendar that will provide the details of sponsorship and events. On the communication side, the coffee house will provide links to their social media platform such as Facebook and Twitter.

Intellectual property, Licence and membership: 

Intellectual Property: “Java Coffee House” will protect its brand name by obtaining intellectual property copyright (Schaper et al., 2014). The intellectual property will help the company in covering their brand name so that it can act as source of product or services which is extremely valuable to the company.

Licence and Membership:

The Java Coffee House will be formed under the partnership of business with limited liability up to the value of capital contributed by the partners.

Goals and Milestone 

Immediate goals:

1. Ensuring that the customers in the community get the feeling of their home while making their visit in the cafe
2. Educating consumers concerning the range of flavour offered by the cafe house
3. Hiring employees and training them to offer better service to the customers visiting the cafe

Short-term goals:

1. Conducting aggressive advertising of organic and flavoured coffee beverages
2. Increasing the loyalty of the patrons visiting the coffee house
3. The coffee house has the intention of forming a partnership with other businesses with the intention of marketing and creating community vibe

Long-term goals:  

1. The long term goals of the Java Coffee House is to create a franchise that is ready for business
2. Having a goal of opening a second location

Marketing: 

The marketing strategy of Java Coffee House is to attract new customers, retaining the existing set of customers, enabling the customers to spend more by trying new flavours and inducing them to come back again. The coffee house will attract regular customers by providing them with the facilities of free Wi-Fi. Furthermore, even though the demographic group of customers could easily drive downtown but they prefer to unwind and relax in calm environment (Baker, 2014). To boost their marketing strategy the Java coffee house will be offering outstanding gourmet coffees and blends. This will be served by the enthusiastic and knowledgeable baristas under a warm and relaxed environment.  

Sales strategy: 

Java Coffee will be using the below stated methods of increasing their sales revenue which are as follows

1. The menus will emphasis on the most profitable products. The sales strategy is so designed that it will attract the intentions of the customers towards most profitable products
2. As warranted, Java Coffee House will increase its prices so that it can bolster their brand image. Prices form one of the communication tool to perceive the value of the product hence, if it set very low the consumers may assume that the beverages are of inferior quality
3. It is worth mentioning that excessive flavour inventory blocks the capital and valuable storage space. Therefore, the cafe will use 4 to 6 varieties along the sugar free products
4. An audit sales and inventory reports will be prepared to assess the ingredients waste arising out of incompetent preparation, returned drinks and consumption (Mobin & Dehghani, 2014).
5. The employees and sales team will be provided with customer service training in order influence the customer ordering process

Customer management and retention: 

Establishing a loyal set of customers is vital for every business as each customer will not only provide Java Coffee House with the guarantee of generating more number of sales but will also provide them with favourable referrals (Hollensen, 2015). To manage and retain their customers Java Coffee House will deliver the right message through right channel so that it can generate demand, which can be transformed into qualified leads. The coffee house will also employ sales team will encourage them to be active in their social channels. Furthermore, the coffee house will build relationships with the customers through sequence of letters, events and follow ups to define its services in points. To manage their customers Java Coffee House will acknowledge their feedback by keeping them informed of their post purchase doubts.

Goals

Pricing: 

Java Coffee Shop will be making the use of Contribution margin strategy of pricing. The cafe will be making the use of coupons and discounts since they are most valuable form of attracting customer demographic of regular coffee consumers (Solomon, 2014). Furthermore, the contribution margin pricing strategy will help in maximising the profit that will be derived from each product depending upon the price and variable cost.

Suitable business strategy: 

The suitable business strategy includes Promotion and Advertising strategy which is stated below;

Online advertising: Java Coffee House will be advertising constantly on the popular social media platforms such as Facebook and Twitter.

Web Site: The coffee house will create a simple web site to offer information concerning business, menus and links to the company existence on social media platforms.

Radio Advertising: During the initial six months of its operations and at the time of busy holiday shopping season the business will promote its product on local radio stations.

The Industry: 

The Australian coffee consumption industry has represented a steady growth over the years and gourmet coffee has the strongest growth in the market. Coffee drinkers in the Western Australia regions are considered to be most demanding customer base. According to the industry analysis it is understood that the customers favour well-brewed gourmet coffee drinks and demands of being served well (Porter & Heppelmann, 2014). The Australian coffee market comprises of approximately 20,000 stores having a combined annual revenue of around $15 billion. The major coffee house consist of international coffee, Sam coffee club and Starbucks. The coffee industry of Australia is concentrated with top fifty companies that occupy more than 60% of the market sales. Coffee shops can be considered as special eatery industry that also comprises of retail outlets that specializes on products such as donuts, yogurt and ice creams as well.

Figure 1: Figure illustrating industry analysis

Source (Porter & Heppelmann, 2014)

Target market:

Java Coffee House will be targeting primarily three groups of people that are living in the residing areas of direct market. The target set of customers generally prefer unique venues and usually avoid big chain (Ingram, 2014). Thus, they prefer their local neighbourhood and will extend a supporting hand unless the business warrants.

Java Coffee House will be catering to the needs of the people who aspires to get their regular cup of great tasting in a soothing environment. These customers usually vary in age group however, the business location close to the university campus states that most of clients will be collage students and faculty (Tzeng, 2016). This will provide the company with unique possibility of building a loyal base of clients.

Strengths

Market competition: 

Influences of five forces:   

The five forces model for Java Coffee house is stated below

Threat of new entrant: Moderate

The threat of new coffee business entering the business is considered as moderate. The degree of saturation is moderately considered as high. New entrants may come into this industry however, their possibilities of being successful is relatively low to moderate (Dobbs, 2014).

Threat of substitute: Moderate to High

The number of substitute product for Java Coffee House is relatively high. Ranging from juices to tea and alcoholic along with non-alcoholic beverages there are possibilities of several substitutes in the market. Providing premium quality coffee and brand loyalty will help in reducing the threat to a certain extent.

Bargaining powers of buyers: Moderate to low

The bargaining power of the customers is considered as moderate to low. The size of individual purchase is medium hence single purchasers or consumers do not hold much influence (Dobbs, 2014).

Bargaining power of supplier: low to moderate

Suppliers can put forth low to moderate pressure on the Java Coffee Shop. The business in the forthcoming year will look to purchase materials from the farmers in order to lower the bargaining powers of the suppliers.

Competitive rivalry: Moderate to High

The degree of competition in the industry is moderate to high as there is prevalent monopolistic competition in the industry with large number of business competing to gain share in the market. However, with the premium quality products Java Coffee House will be able to provide competitive edge to its competitors.

Set-up Cost:

Profit and Loss Forecast

Cash flow Forecast

 Balance Sheet Forecast

 Breakeven Analysis:

Figure 2: Figure representing Break-Even Analysis

(Source: As Created by Author)

Reference list:

Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.

Brinckmann, J., Read, S., Mayer-Haug, K., Dew, N., & Grichnik, D. (2015, January). Of those who plan: A meta-analysis of the relationship between human capital and business planning. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 16198). Academy of Management.

Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), 32-45.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

Ingram, D. (2014). Target Market Vs. Target Audience. Houston Chronicle.

Khodakarami, F., & Chan, Y. E. (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), 27-42.

McKeever, M. (2016). How to write a business plan. Nolo.

Mobin, M., & Dehghanimohammadabadi, M. (2014). Food product target market prioritization using MCDM approaches. In Proceedings of the 2014 Industrial and Systems Engineering Research Conference.

Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64-88.

Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.

Solomon, M. R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Engelwood Cliffs, NJ: Prentice Hall.

Tzeng, J. Y. (2016). A Study of Customer Relationship Management.

Weil, R. L., Schipper, K., & Francis, J. (2013). Financial accounting: an introduction to concepts, methods and uses. Cengage Learning.

Weinstein, A. (2014). Target market selection in B2B technology markets. Journal of Marketing Analytics, 2(1), 59-69.