Business Proposal Overnight Café

Question: Evaluating the marketing plan for the overnight caf. Answer: Executive summary A marketing plan is very important for any organization in order to establish its respective business within the market segments. This research paper will help in evaluating the marketing plan for the overnight caf. The caf will offer customers gourmet coffees such as mocha, cappuccino, espresso, and latte, etc. In addition, to these items, tea as well as smoothies will be served with gracious pastries like bread, cookies, muffins and rolls and sandwiches and pasta. The company's duty will be to offer a relaxing atmosphere through cozy ambiance, pleasant customer service in order to satisfy the customers. Customer's satisfaction is the primary motive of the organization. The strengths of the association will be its top superiority of the management hold to the customers as well as to the employees. Starbucks is one of the top competitors in the grounds of caf throughout the United States. The product will take in the quality and it availability for the customers of the organization. Overnight caf will position itself as the reasonably priced coffee house delivering top quality of the coffee items to the respective customers. The pricing plan of the company is based on the usual rates offered within the industry practices. On the other hand, the marketing plan evaluates the marketing strategy and the financial activities of the organization. Company description Overnight Cafe will be a caf located inDeKalb, Illinois. The caf will be located near Northern Illinois University and will be a cozy caf by focusing on the customer's convenience and needs. It will offer customers gourmet coffees such as mocha, cappuccino, espresso, and latte, etc. In addition, tea and smoothies will be served with complimentary pastries like muffins, bread, cookies and rolls and sandwiches and pasta. The caf's structure will be a sole-proprietorship as it will be wholly owned by the owner, Charles Posejpal, who is a graduate in business administration and has experience with working in a local university coffee shop. Mr. Posejpal will invest initial capital to start the caf and will be the top manager. As a manager of the caf, he will be responsible for managing a small team of 10 employees. Description of Business, Product/Service As described earlier, the main product that the company will offer to its customers include gourmet roasted coffees, such as mocha, cappuccino, espresso, latte, and brewed coffee. The caf will offer complementary products/services to its customers, such as tea and smoothies (strawberry, peach, mango, lemonade, orange, and berry based on seasonality). Moreover, a simple menu line will also be included in relation to the products like Panini, Mini Pizzas, Pasta, Grilled Sandwiches, Salad, Cinnamon Rolls, Cupcakes, Bread, and Cookies. All products will be fresh, healthy and of high quality. Moreover, the company will offer free books and magazines to the customers to read and relax in the caf. Strategic focus and plan Mission statement "The mission of the caf will be to provide, healthy, high quality and fresh products to the customers and to be committed to the employees to ensure high-level customer service." The mission statement of the company indicates that the aim of the caf will be to develop a different place, where the customers cannot only enjoy coffees and other products but also, socialize and relax with the high-quality services (Hult, Pride Ferrell, 2014). The company's mission will be to provide a relaxing environment through cozy ambiance, friendly customer service, and high-quality products along with the development of friendly communication between management and employees to increase customer satisfaction. Goals The Overnight Caf plans to increase brand equity by 30% in the second year of operations through generating leads as a result of a combination of traditional and digital marketing campaign. The company plans to increase 50% sales by the end of the second year of operations. The company has the aim to increase brand awareness by 40% by the end of 1st year of operations through the social media campaign. The company aims to offer an indoor play area to its customers in the fifth year of its operations to get a competitive edge and to extend its services. Core Competencies Innovation brings out the competitive edge for the companies operating throughout the world. The caf will. Offer the wide range of the products and the taste will be quite different and amazing from that of the other caf within that particular area. The cost pricing of the products will be quite different from that of the competitors (Hult, Pride Ferrell, 2014). Moreover, the company will aim to deliver the best quality of the products as this will help in extending the barriers of the organization (Jensen, 2013). On the other hand, the customer services will of top quality as, customer satisfaction is the main motive of the company. The management team will look after the quality of the services and products delivered to the customers. Situation analysis SWOT analysis Internal Strengths: The strengths of the organization will be its top quality of the management support to the customers as well as to the employees (Levy Weitz, 2007). The cafe will offer the wide variety of the products wait for top most quality as perceived by its respective competitors within the market segments. Weaknesses: The personnel and the finance section may lead to becoming the weakness of the organization. Therefore, the management team will look after the execution of the business process of the organization. The improper training to the employees many affect the organization, therefore, the managers will arrange perfect training for the employees of the organization (VanĆºk, Mikol Ã…Â ½vkov, 2012). External Opportunities The increasing demands for the fast food and the coffee will help in attracting the customers towards the organization. This will provide an opportunity for the organization to increase the productivity as well as the profitability of the organization (Mishra, 2013). The implementation of the innovative tools and techniques will help in increasing the selling of the products and will increase the reputation of the company. Threats: The other cafs and the competitors within the concerned area will provide a potential threat to the Overnight Caf. The legislations from the government might cause a threat to the caf in executing its business process. Industry Analysis The caf are the increasing business sectors all over the country. The coffee consumption has shown high and steady growth throughout the country (Mullin, Hardy Sutton, 2007). The demands for the coffee lovers are increasing rapidly and it suggests that the coffee industry has the bright future all across the world. The coffee consumption has received a steady growth of about 2.5% throughout the United States. The local climate having a long rainy season is good for the growth of a large amount of the non-alcoholic beverages. Competitor Analysis Starbucks is one of the leading competitors in the field of caf throughout the United States. The star bucks nearly hold 35% of the total market share all around the country, therefore, it will give a tough competition to the Overnight Caf (Pinson, 2008). Another example of the competitors within the Unites States is the Caf Roma. PJ's Coffee Tea, Java Dave's and New World Coffee are the major competitors in the field of caf shop. Customer Analysis The customers will be offered great quality of the coffee, coffee products, and other food products in order to increase the profitability of the organization (Rego Nunes, 2010). The students, youth, and the travelers will be targeted for the selling of the products. There will different schemes and promotional offers to attract the consumers towards the organization. Market-Product Focus Marketing and Product Objectives The marketing as well as the products objectives for the caf are as follows: Development of the brand awareness by increasing new customers to the organization. To increase the selling of the products and to satisfy the customers by offering satisfactory services to them. Developing awareness with the help of the structure and effective conversation system with the respective customers of the organization. To offer top quality of the services and products in order to retain the customers. To achieve the desired goals of the business within the fixed time limit. Target Markets The target markets will include those people who get their everyday cup of tea with great taste in the relaxing surroundings. It has been seen that the different ages of the people have different kinds of choices for the coffee (Safir, 2013). Therefore, the company will target the different variety of tastes for the consumers. It will help in attracting the consumers and will increase the productivity as well as the profitability of the organization. It is important to analyze the different needs of the customers as it will help in assisting the consumers with top quality of the services. Points of Difference The points of difference will be in the quality and the pricing of the coffee as well as the other food items available at the caf. The buying patterns of the customers will be quite different in terms of that of the respective customers of the organization within the market segments. The customers will be pleased to have great taste at the lower prices of the coffee and the coffee products. Positioning Overnight caf will position itself as the reasonably priced coffee house delivering top quality of the coffee items to the respective customers (Samset, 2010). The caf is going to be made innovative and effective as to attract the customers towards consuming the coffee and its products. The unique approach towards the customers will help in gaining the competitive advantage for the company and, on the other hand, the innovation in the desired product items will help in increasing the brand reputation of the caf within the market segments. Marketing Program Product Strategy The product will include the quality and it availability for the customers of the organization. It is very needful to implement the best strategies regarding the products (Sawant, 2010). The products are the one which will attract the customers towards the caf and will help in increasing the profitability of the caf. The customers will be offered with a top quality of the products having different varieties of the coffee. Price Strategy The pricing strategy of the company is based on the standard rates offered by the industry practices. The primary aim of the caf will be at providing the best quality of the coffee at low prices than the competitors within the market segments. Breakeven Analysis The Break-even study critically indicates that nearly $30,237 will be required within monthly revenue in order to reach the desired break-even position. Break-even Analysis Monthly Break-even Revenue $20,299 Assumptions: Average Percent Cost Variable 32% Estimated Monthly cost price Fixed $19,654 Promotion Strategy There will different promotion schemes adopted for the caf such as with the help of social media, campaigning at popular malls and cinema halls and with the help of the television. The different sectors of the people will be the target with the help of the effective promotions for the caf. Place (Distribution) Strategy The location selected for the establishment of the caf is near Northern Illinois University. Different areas such as the shopping malls, colleges, and the cinema halls will be targeted for promoting the caf (Sawant, 2010). These locations are selected for promoting as this location includes a large number of the people, students and the youth that will help in increasing the profitability of the organization. Financial Data and Projections Past Sales Revenue The past sales revenue will be based on the business process execution plans from the management team. Sales growth was least of15% yearly, margins outstanding, income at roughly 20% - 25%, cash flow sufficient. Advertising will continue below 5% of sales. The corporation will spend remaining profits into monetary markets Prospect cash investments determination use NPV projection to attain utmost return with incomplete risk. Five-Year Projections The first three months will for the setting up of the physical condition of the company, hiring the personnel, establishing the relationship with then vendors and the suppliers of the raw materials (Venkatesh, 2015). The fourth month of the caf will be the grand opening of the business. At first, the sales is supposed to remain low than in a few month it will grow steadily. Marketing expense budget Advertising $4,800 $2,400 $2,400 Strategic relationships $2,000 $1,200 $1,200 Other $2,400 $1,200 $1,200 Total Sales and Marketing Expenses $9,200 $4,800 $4,800 Percent of Sales 5.23% 1.07% 0.97% Sales forecast Drinks $105,921 $271,254 $296,874 Food $69,908 $179,028 $195,937 full amount Sales $175,829 $450,282 $492,811 Direct price of Sales 2001 2002 2003 Drinks $26,480 $67,814 $74,219 Food $29,361 $75,192 $82,293 Subtotal Direct price of Sales $55,842 $143,005 $156,512 Organizational Structure The organizational structure of a corporation plays the most important role in evaluating the desired business process of the company. Charles Posejpal is the owner of the caf and he will need a team to execute the entire business process of the Caf. An extra manager is required for hiring that will help in assisting and maintaining as well as reviewing operations within the caf. A chef will be hired in order to manage the desired kitchen operations as well as be vital to maintaining coffee and the foodstuff register stability with support in the menu development. A helper manager or the higher server is going to be the hire that will be given the higher amount of salary, will provide normal counter service plus support to the supervisor as well as the general manager. A team leader will be hired that will do secondary supervision function in the kitchen with offer help to the chef in major kitchen/cooker function. Part-time workers will be then hiring to grip serving, as well as dis hwashing function. The marketing along with accounting utility will be grip by autonomous supplier/consultants. Implementation The implementation of the desired marketing plan needs to be done perfectly as it will enhance the effectiveness of the entire organization. The implementation process is most important for the establishment of the company within the market segments (Wong, Radel Ramsaran-Fowdar, 2011). The following milestone is important in order to implement the desired marketing programs within the organization. Advertising Start Date End Date Budget Marketing plan closing 1/1/2016 2/1/2017 $0 Advertising 1/1/2016 1/1/2017 $9,600 Strategic relationships 1/1/2016 1/1/2017 $4,400 Grassroots promotion 1/1/2016 1/1/2017 $4,800 Name me 1/1/2016 1/15/2016 $0 Name me 1/1/2016 1/15/2016 $0 Name me 1/1/2016 1/15/2016 $0 Name me 1/1/2016 1/15/2016 $0 Name me 1/1/2016 1/15/2016 $0 Other 1/1/2016 1/15/2016 $0 Total Advertising Budget $18,800 Evaluation and Control The manager of the organization needs to control as well as monitor the desired process and activities within the caf. This will help in maintaining the overall effectiveness and efficiency of the caf. Contingency Planning Difficulties and risks: Troubles evaluating the visibility as well as awareness of the overnight Cafe An entrance into the Portland of the "discussion roundtables" or additional single gathering events. Subordinate than the forecasted expenditure of raw materials There are some of the worst cases that may include. This will help in determining that the business is progressing on the ongoing basis. Having to settle tools to cover up the desired liabilities. The overall control and the monitoring process are of great importance as it helps in bringing out the success of the marketing plan. The entire budgeting and the financial activities will be monitored by this process. References Googles latest accomplishment: refining marketing practice. (2012).Journal Of Consumer Marketing,29(3). https://dx.doi.org/10.1108/jcm.2012.07729caa.002 Hult, G., Pride, W., Ferrell, O. (2014).Marketing. South Melbourne, Victoria: South-Western Cengage Learning. Jensen, D. (2013). 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