Just Us! Cafe: Business Analysis

Just Us! Cafe’s is the company specialise in food and service industry consist of wholesaler and retailer in Nova Scotia, Canada, and United States. Just Us cafe’s vision is “to be a leading Fair Trade business that builds on quality, professionalism and innovation for the benefit of all their stakeholders”. Their core product is certified Fair trade, organic products and local products which is high quality and social and environmental responsibility.
Just Us! Coffee’s focus on nique market of promoting fair trade. The Moores have maintained a strong commitment to educating consumers while building strong brand identity and upholding constant growth. The main distribution channel of Just Us are in grocery stores, four cafés (two each in Wolfville and Halifax) and distributed products on university campuses.
In current situation, the prevailing economic climate and increasing competition has been issues to the founders. In addition, Just Us! Coffee goal to expand their business, consequently, the new challenges arise from having compete with several big brands for example Starbuck, Mcdonald, Kraft who also introduce the FairTrade certified coffees, or Rainforest Alliances certified coffees and small coffee shops and new entrants to retain its brand recognition of its customers.
There are several possible answer to those problem such as:

Increase power of branding to make it difficult for new entrants and create the different with existing rivals.
Using Joint venture, franchising as an option to expand into new market
Using new media to increase marketing and customer service.

4 Current Situation Analysis
Positioning is the art of designing the company’s offering and image to occupy a distinctive place in the mind of the target market. (Kotler, 2003, pg 308).
4.1 External Analysis:
In order to develop effective strategies Just Us Café’s are required to examine the
external environment in which they operate. I have carried out the following analyses:

Pest Analysis
Porter’s 5 Forces
Competitor Analysis

4.1.1 PEST analysis
Political
As highlighted throughout the case, a huge political factor involved in the
industry was the certified recognition of actual fair trade and the whole process.
Economic
The economic environment is constantly changing and as we can see from the case, some competitors are providing partially organic ranges as well as
mainstream organic coffees. JU pricing is at a slight premium and in the current environment; disposable income of consumers can play a large role in choosing a product. JU must be aware that a consumers feeling toward one product may be influenced by their income, regardless of how strong they feel about fair trade.
Social
As mentioned in the case, the overall coffee experience seems to be a large part of the attractiveness of JU and competitor’s. Any future strategy must be
designed with this ‘experience’ in mind rather than expanding rapidly and
diminishing the experience factor.
Technology
Technology is constantly evolving and JU can seize a significant advantage by utilizing technology more. JU needs to examine the improvements technology can make in the manufacturing process and in their advertising.
Environment
The issues of carbon footprint means there are more incentives to buy from local supply rather than international import.
Legislation
There is no specific legal requirement for fairtrade or coffee in general.
4.1.2 PORTER’S FIVE FORCES
Threat of New Entrants: Threat of New Entrants is high within the market as there are very few barriers to entry and fair trade coffee trends are extremely popular so it is an attractive industry.
Buyer Power: “Buyers threaten an industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other” (Dess et al 2004:53). As mentioned in Appendix B-PEST, the customer’s income plays a huge role in selecting a product therefore if they decide to bypass fair trade products because of the premium price they can hold allot of buyer power, thus making buyer power in the industry high.
Threat of Substitutes: There are various substitutes for fair trade coffee in the industry such as regular coffee, tea etc but not only coffees but in the general beverages market e.g. Coca Cola, Water etc. As a result of this there is a very high threat of substitutes.
Supplier Power: Supplier power is relatively low as the industry is fair trade coffee. From previous knowledge, coffee suppliers were being exploited and continued to produce. It is simply because of the willingness to partake in fair trade that they have gained power. However I still believe that due to the underdevelopment of the producing countries allot of the power still lies with the buyers.
Competitive Rivalry: Competitive rivalry is relatively high as seen in previous competitor analysis. There are many competitors in the local market and on the shelf within the mainstream markets.
4.1.3 Competitor Analysis
Competitor
Channels
Locations
No. Shops
Kicking Horse
Coffee Shops, Gourmet
West Coast, Canada
N/A
Stores, Restaurants
Quebec & Ontario
Kraft Foods
Stores, Universities
United States
Mainstream
P&G Millstone
Mainstream
Canada & United States
Mainstream
Nestle
Mainstream
Canada & United States
Mainstream
Lowblaws Private Label
Lowblaws Stores
Canada
Mainstream
Just Us!
Coffee Shops, Universities,
Gourmet Stores,
Nova Scotia, Quebec &
4 Coffee Shops & On The
Supermarkets
Ontario
Shelf
Trident Bookseller & Cafe
Coffee Shop
Halifax, Nova Scotia
1 coffe shop
Java Factory
Coffee Shop
Nova Scotia-Halifax,
3 Coffee Shops
Darthmouth, Upper
Tantallon
Tim Hortens
Restaurant
Nova Scotia General-Wolfville(2), Halifax(21)
170
Second Cup
Coffee Shop & Retailer
Canada General, Nova
360
Scotia(6)-Halifax(5)
4.2 Internal Analysis
4.2.1 Core Competence
The Value Chain is a method that can be used to analyze JU’s internal environment. Porter (1980) created a generic value chain model which listed activities that could be found in most firms. These activities can be divided into primary and support activities, which aim to create value for customers, whilst exceeding the cost of such activities.
4.2.2 Financial Analysis
4.2.3 Value chain
4.2.4 Geography focus
4.3 Evaluation
SWOT ANALYSIS
Strength
Just Us! Coffee Roasters’ brand equity is what drives the company forward. Customers base their decision to purchase coffee from Just Us! Coffee Roasters are a symbol of their own personal beliefs, demanding ethical business practices and quality of product. Just Us! Coffee Roasters image also attracts a passionate following.
Weakness
Just Us! Coffee Roasters operates as a co-operative. Not only must they operate to fulfill shareholders expectations, but they also must operate in a manner that is expected of the values that the company had initial0ly set out with. Jeff and Debra Moore, are bound to creating a profit while maintaining the appropriate image and practiced that they initially based their company on. Upon entering the next phase of the company’s life cycle, Jeff and Debra must maintain operations under strict control of their original company values as they compete against competition that does not share the same values.
Opportunity
New Fair trade products: With more and more fair trade products becoming readily available a huge opportunity to increase the product portfolio is on the horizon for JU
Social Media/Online: The online environment presents JU with a huge opportunity to increase brand awareness, engagement and utilize its loyal customer’s feedback at a very low cost.
Threat
Clarity on Fair Trade: An issue highlighted in the case was that of clarity and regulation on fair trade. It is to be seen that the fair trade term is been thrown around too commonly and applied to every product, thus potentially reducing effect of one of JU’s key USPs.
Clouded Focus: At the moment JU are using multiple channels of distribution, however with various challenges on the horizon a decision needs to be made on a strategy. Operating and managing two separate strategies can create a clouded vision within the company and a decision needs to be made on prioritization.
4.4 Ethical issues
“Ethics are the moral principles or values that govern the actions and decisions of an individual or group” (Gresham 1985)  . Ethical principle has been used as guidelines of business activities and justification of action. The table below
2
The part JU focus on in this diagram is ethical and legal which make them more expensive than others. The reason for that is they promoting Fairtrade to pay more for suppliers, therefore, the cost of it will be higher than competitors who are currently not in fairtrade segment.
Secondly, as the case study mention, they couldn’t use licensing method since they don’t trust the agency who selling JU product would comply with JU ethical principle. It may damage their reputation as well as losing customers.
5 Memo to juliet
5.1 BCG Matrix
As JU provide various organic products it is important to examine the more profitable ones and not so profitable in order to either focus marketing effort on weaker products or discontinue them.
The revenue from coffee and drink has the highest percentage in the trade figures of Just Us! Cafe while in the Fairtrade market there is significant growth rates in volume in both coffee and tea over a four year period.
Perhaps JU should look at the profitability of the market for others (vouchers) and consider placing less emphasis on it. Since it contributed lowest proportion to the total revenue and even loss in one store. However, the gift cards, gift basket and event tickets in this category may promote all Just Us products.
Benefits of BCG Matrix
The BCG matrix help managers in resource allocation among various units. The managers can compare several business units which company offer. This method simplified the analysis of the product and market by using the market share and growth rate of products.
BCG has been well known world wide and used for quick respond to the industry. The BCG allows for the making of comparisons so as to measure the growth and development rate of a company against the average growth rate in that specific industry.
In addition, this particular matrix is also enjoyable to use, encouraging better decision making. Large organizations that are normally in need of effective decision making can benefit a lot from using BCG matrix, especially those seeking better resource management.
Limitations of BCG Matrix
High market share does not always leads to high profits. There are high costs also involved with high market share.
Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability.
At times, dogs may help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes.
To sum up, it can be seen that even though BCG matrix has many benefits, it may not applied to JU since they offer Fairtrade products, therefore, the cost is relatively high as well. In other words, high market share and high growth rate may not give them high profit. Moreover, the dog products seem to have lower revenue may due to high profit margin and has been used to promote others products.
5.2 Product Life Cycle
Using product life cycle to find the stage of products could help to understand the profit of the products offered. Rather than compare the market share and growth rate, JU can use product life cycle to understand their products.
Coffee and drinks still on the growing trend, it shows that these products is on the growth stage which need to increase differentiation, improve the products and services while gaining the market shares.
The JU products and Bodum, Lunches, Bakery has been put in maturity stage since the revenue of those are expected to increase slighty compare with Coffee and Drinks.
The other products of JU complied of gift card, event tickets has low profit and even loss due to introduction stage. Therefore, it should not be removed from the products range.
5.3 Financial Analysis
Appendix
5.4 Geography Concentrated
Appendix
6 Retail & Customer loyalty strategy
INTEGRATED MARKETING COMMUNICATION
The concept of IMC has been defined in three ways: a one-voice view in which there is one theme and one image, a perspective which suggests that product, image and consumer behaviour should be considered simultaneously and a perspective which focuses on the integration of communications disciplines.(Nowak, et al, 1994)
CONSISTENCY
IMC planners, focus their attention in two types of consistency, one voice one look and strategic consistency. For instance one voice one look, delivers a campaign in which all advertising, sales promotion, sponsorship, publicity and direct response and package for the two different products have the same appearance and feel. All the media messages reinforce one and the other. (Duncan, 2003)
Renovation of coffee shops into uniformed unit could show customer the consistency of the business.
Increase the customer service performance
JU cafe can improve the customer service such as the expert suggestion or customer related services. The good customer service could improve the performance and increase turnover.
Improve customer awareness
Events and exhibitions to keep the customer aware and informed about fair trade and Just Us products. By provide the chance for customer to understand JU nature as well as fairtrade, customer can feel more comfortable to come to the coffee shop.
Loyal customer base
Promotions such as giving free cup of coffee for return customers.
Loyalty cards for existing customer to collect points to exchange for gifts or products.
Customer relationships such as email of new products or service or simply the news on Fairtrade.
7 STP analysis and the marketing mix
Market MARKET SEGMENTATION AND TARGETING
Segmentation and targeting seek to determine who companies want to reach in order to build brand relationship. Marketing today is in the name of efficiency and effectiveness, becoming more focused on smaller but more profitable segments of the market. (Duncan, 2003)
Just us cafe’ currently focus on the young people 18-30 who concern about the ethical issues and interested in Fairtrade. However, that is only the niche market where the number of customer is small compare to JU competitors.
In order to increase sales, JU need to expand it own segmentation. In other words, JU need to enter new segment in order to get more customers. For example, JU offer to fashion industry such as giving coffee for catwalk show or JU coffee could offer delivery to office for white collar people.
JU coffee would increase the target since more and more people outside their age focus interested in drink coffee and ethical issues.
POSITIONING
The positioning of the JU coffee need to be uniformed. At the moment, there are 4 different location which offer different products and service which make JU too diversified. If new customer come to the coffee bar they may expected the same service, therefore, JU coffee should be made as uniform service.
Strategic Marketing Options: Ansoff’s Matrix
In the market JU has their existing menu as the existing products which other competitor also provide the same kind of products and services. The market is existing. Therefore, JU cafe’ have 3 option they could adopted.
Market penetration: JU can improve their customer service, renovate the current location and training employees to increase and improve the customer experience. Moreover, they can use new media to promote the brand.
Product development: JU can come up with new products which may benefits their current customers such as new formular for coffee, additional art on coffee cream or the new food in their menu.
Market development: JU can use Joint Venture to expand their market and sharing the risk of investment.
Evaluation of Options: SAF
Option 1: Market penetration
Suitable
In the current situation, Just Us cafe can use this to improve their market share
Yes
Acceptable
This method is acceptable since JU has the experience in premium service.
Yes
Feasible
The fund required is lower than the other methods
The experience available
Yes
Option 2: Product development
Suitable
In the current situation, Just Us cafe can use this to improve their customers’ experience.
Yes
Acceptable
The new products cannot be launched immediately since they need to research and development.
No
Feasible
The fund required is high and there is need for expertise.
May be
Option 3: Market development
Suitable
In the current situation, Just Us cafe can use this to improve their market share
Yes
Acceptable
This method make JU lose part of their control in new shops.
May be
Feasible
The fund required is medium since it can be share with other venture and the risk is shared as well
Yes
8 Implementation
a. Strategic and Marketing Objectives
b. Marketing Strategy and Marketing Mix
Advertising
POP materials
Direct Marketing
Web Site
Personal Selling
Exhibitions and Events
Packaging
Sales Promotion
Trade Promotion
Product Placement
Field Marketing
c. Responsibilities………………………
d. Time Period for Implementation……
e. Monitoring and Control……………
f. Return on Investment……
9 Conclusion
Just us cafe’ can offer the option 3 or option 1 since all of the option require sufficient fund to launched. The option 3 seem to be more suitable since JU want to expand the market. Using Joint Venture, they can create the alliance with other rival to protect themselves as well as increase the power over new entrant and stronger competitors. However, they can increase their channel for supply and B2B market as well as B2C. Besides, JU can also use new media such as online business or online network to promote their brand with low cost of maintainance since WWW become more and more wellknown.
 

Future Marketing Communications Plan for Cafe

This is a report advising on the likely content and issues arising at each stage of a future Marketing Communications Plan for ‘Café Division’.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Procedure:

In this report I used academic sources and market research to support my findings and recommendations for a marketing communications plan for a new café called Café Division in Sheffield. This was between the dates of 15th December 2018 and 21st December 2018.

Executive Summary:

This report includes the business proposal for a SME café opening in Sheffield in June 2019, Café Division. I have conducted a marketing communications plan including; a SWOT analysis, objectives, promotional vehicles and a campaign schedule. Following this is ways to evaluate and control the plan and some recommendations for the future.

Contents

Table of Figures

Introduction

Findings:

1.1 Marketing Communications Audit and SWOT

1.2 Communication Objectives and Targets

1.3 Promotional Vehicles

1.4 Sales Promotion

1.5 Advertising

1.6 Public Relations

1.7 Social and Digital

1.8 Campaign Schedule

2.0 Evaluation and Control

Recommendations

Appendices

Bibliography

References

Figure 1

Figure 2

Figure 3

Figure 4

Figure 5

Figure 6

Café Division’ is a new, exciting Café opening on Division Street in Sheffield City Centre, in June 2019. The unique selling point of this café is the element of a quirky interior with a modern yet vintage twist. Specialising in fresh and quirky food and drink, it will appeal to the many students in the city due to the two Universities, shoppers in the area such as West Street, The Moor and Fargate and tourists. In the future, when the business has become more established and we have built more customer loyalty and brand perception, we hope to run evening events where customers can eat and drink with a source of entertainment in the café to create an exciting evening atmosphere. The business will operate as a sole proprietorship and for the opening will require one more managerial position to work alongside the owner, 2 supervisor positions, 3 kitchen staff and 6 front of house staff.

To ensure that all the strengths and weaknesses of our new business are identified, we have carried out a SWOT and PESTLE analysis to determine these. A SWOT analysis includes internal (micro) and external (macro) environmental factors (Pickton & Broderick, 2004).

SWOT analysis

Strengths

Products: The main strength of the proposed ‘Café Division’ is the fresh and quirky foods that will be sold.

Price: The prices of the items we sell will be cheaper than popular brands to fit the target audience.

Atmosphere: Modern yet vintage twist on the interior design to create a relaxed and inviting atmosphere.

Location: Division Street is close the main shopping areas in Sheffield City Centre and close to many student areas and high foot traffic.

Weaknesses

Competition: A lot of well-known brands in the City Centre such as Starbucks, Costa and Pret a Manger.

New: Less popularity and reputation compared with other cafés in the surrounding area.

Organisational: As this is a brand-new business all staff will need to be fully trained.

Money: Lack of funds, meaning loans will be required to get the business going.

Experience: Less experienced staff and management as this is a start-up.

Opportunities

Expansion: As a new business, there is opportunities to expand in and around Sheffield.

Market: Increased demand and intertest in independent cafés.

Business Model: Opportunities to change the business model and operations.

Threats

Competition: Lots of popular Cafes in Sheffield.

Price Fluctuations: The price of the goods we buy may change due to the import tax and Brexit.

Figure 1

The UK coffee shops market is estimated to grow by 7.3% in 2018, to reach a value of £3.75 billion (Mintel, 2018) (see appendix 1) and is forecasted to grow by 40% in value over the next five years to reach £5.2 billion by 2023 (see appendix 2). This is evidence that the market will be financially beneficial to enter. With a population of 575,400, a high amount being in the 20 to 24 age group. This is caused by Sheffield’s significant student population at its two universities (Council, 2018). There’re an estimated 125 coffee shops/ cafes in Sheffield (Yell, 2018), these include independent cafes and market leaders such as Starbucks, Costa and Café Nero meaning there is very high competition for Café Division.

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Communication objectives are an integral part of the planning process and helping with the evaluation of marketing communications activities (Fill, Marketing Communications: Interactivity, Communities and Content, 2009). These objectives should be SMART objectives (specific, measurable, achievable, realistic and timed) because of the benefits this creates.; ensuring the plan has clear and precise goals to construct a strategy (Pickton and Broderick, 2004).

The first SMART objective that Café Divison should have is brand awareness.

Specific

Increase brand awareness by 45% four weeks before the opening day through the use of the promotional vehicles.

Measurable

This can be measured through tracking website traffic and social media presence before and after the promotional vehicles and marketing communications.

Achievable

This is an achievable objective as after the evaluation of the market environment and business, the Café will be appealing to many people.

Realistic

To achieve this, the promotional vehicles for the Café need to be carried out effectively by those working for the Café. The target customers can be reached through marketing communications, especially social media.

Timely

Measured between the start of promotion and the four weeks before the opening.

Figure 2

Brand awareness is vital to getting an enterprise started as this as how a business gains customers, potentially brand loyalty and profits; overall building a successful enterprise (Yeshin, 2006).

Another important objective is to have a certain number of customers within the first 6 months of opening.                                                                         

Specific

To have at least 5,000 customers within the first 6 months of opening.

Measurable

This can be measured through the amount of sales that the Café makes in those 6 months.

Achievable

This is an achievable objective as there are 575,400 people in Sheffield, meaning there is a high number of potential customers.

Realistic

To achieve this, the promotional vehicles need to continue to be effective to keep customers returning and to attract new customers. Also, the instore experience needs to be positive to impress the customers.

Timely

Measured between the opening of the café and 6 months after this.

Figure 3

Additionally, when looking at our targets we looked at the ATR model by Ehrenberg in 1974 (awareness, trial, reinforcement) (Paul Russell Smith, 2004). This model helps us to set a target for each element.  As stated in the SMART objective for brand awareness, we are aiming to increase awareness by 45%. On the opening day we are aiming to have at least 150 customers, linking to the trial element of this model. Finally, we will reinforce our advertisement and the customer experience.

The communications plan needs to ensure that the most appropriate promotional vehicles are used to create an effective marketing communication. These include; sales, advertising, public relations and social and digital.

Sales promotion is the process of persuading customers to buy your product (Fill, 2013). We can use this a short term way to initally boost sales of Café Division. Instore selling promotions would be effective on the first day of opening, with a 10% discount for the first 50 customers. Additionally, on the opening day vouchers for the customers will be handed out for 10% off all food and drink. In the future, we would look into having a type of loyalty cards where after 6 visits customers can get a free drink of their choice. This would help to compete against the competitor café’s in the city.

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Fill (2009) states that advertising is important in the role of a marketing communications plan as it has the potential to engage audiences with the main function of advertising being to communicate with your audience – the prim objective being to maintain awareness of a product or organisation. However, advertising does have it drawbacks which include the fact that it is sometimes controversial, expensive and isn’t directly personal to a customer group.

With there being many ways to advertise, we need to think of the most effective ways to reach and appeal to our target audience. With Sheffield having just over 60,000 students in the city, a large segment of the primary target audience will be 18-24-year olds, who use social media as a way of consuming advertising and media. This means that social media will be the most effective way of reaching this target group. In January 2018, 44 million people were found to be active social media users, with 38 million of these being active mobile social media users (Statista, 2018). This will be a low cost, easy way to advertise Cafe Division, with most of these customers being able to consume the advertisement straight from their mobile phone.

Alongside social media, we will launch a website which we will be advertised across social media platforms. The website will include information about the Café, the menu, offers and events.

The purpose of public relations (PR) is to create a positive image of a company/organisation in the mind of its consumers (Blythe, 2006), bringing attention to the public to the company through an event or news story. It can be argued that PR isn’t a form of marketing as it isn’t measured in financial terms, however, it does bring attention to a new company. In a press release, a beneficial amount of information can be included to grab a reader’s attention (Blythe, 2006). Therefore, we feel it would be to our advantage to conduct a press release as this will allow possible customers to become aware of our brand and will be more likely to visit if they are more informed about this new enterprise. An effective platform to release a press release through would be the Sheffield Star, a daily newspaper distributed in South Yorkshire and parts of the East Midlands, with a readership of 13,658 (Kerridge, 2018). Additionally, the Sheffield Star twitter page has 165,000 followers (Twitter, 2018) and alongside the website will engage with many of our target customers. This will create brand awareness and an excitement around the opening.

The social and digital platforms will link back to the advertising element of the promotional vehicles. This is because the majority of our target audience consume digital platforms every-day, making this a beneficial way of promoting Café Division. Advertising Association (2018) states that mobile continues to grow in the advertising world with over 90% of additional mobile investment directed towards search and social media in 2017. This means that more people are using social media and digital platforms to consume media and advertising. This is evidenced in this image below (see appendix 4. With this knowledge on social and digital media, we are looking into creating a hashtag to be a part of our advertising campaign. This would be something simple such as #cafedivisonsheff. This includes our name and the location, allowing people online to use the hashtag to either promote or find out information

 

 

As we are a new enterprise, we have prepared a campaign schedule formed from the promotional vehicles we have decided on for Café Division.

May

June

December

Public Relations

       

Advertising

       

Social Media

       

Sales Promotions

       

       

Figure 5

Public Relations:

      The campaign schedule will start on May 4th, with the press release in The Sheffield Star to begin building brand awareness with potential customers.

Advertising:

      The second stage of the campaign schedule will be the beginning of advertising; primarily across social media and the website. This will start on May 11th.

      Secondly, we will distribute printed flyers in Sheffield City Centre, near both Universities and near the train station. This will allow us to get people interested and reinforce or brand.

      After the opening, dependent on success, we will look into paying for social media advertisement in Facebook and Twitter.

Social Media:

      The third stage of our schedule includes a focus on social media and using it to deliver information as well advertising the Café. This will begin around the same time as the advertising as a way of providing more detail about our Café.

Sales Promotions:

      The final stage of the initial campaign schedule will be the sales promotions which we will begin goffering on the opening day through our 10% off vouchers which will be valid for 6 months.

      If successful we will then launch our loyalty cards to build brand loyalty.

This campaign schedule takes elements of the DRIP model; differentiate, reinforce, inform and persuade (see appendix 3). It is not necessarily carried out in this exact order however each element of this model is supported though the campaign schedule (Fill, 2009). Café Division is differentiated through our advertising, reinforced through social media, informed through PR and persuaded through sales promotions.

To evaluate the success of this marketing communications plan, we will be referring back to our SMART objectives to ensure we are on track throughout the opening of the café and the following year. These SMART objectives alongside the ATR model should help us to stay focused on our goals. We will make sure that we have weekly meetings in the beginning to check these targets and make any necessary changes.

Additionally, we are conducting a gap analysis, which involves the comparison of our actual performance with what our potential or desired performance could be. This will allow us to reflect on our strengths and weaknesses as a business (Business Directory, 2018) based on the commications plan; SWOT, objectives, promotional vehicles and the campaign schedule. The following gap analysis chart shows the potential current performance (A) and the desired outcome (B) (see appendix 4).

 

Finally, we think we should look at expansion in the future into other cities, firstly in Yorkshire and then the East Midlands such as Leeds, York, Derby and Nottingham. This is dependent on the success of the café in Sheffield. After we become more established in Sheffield, we would look at reducing advertising spending as there will be other elements we will need to venture into, such as branding our cups and possibly starting a takeaway service to compete with the big-name brands such as Costa and Starbucks.

Mintel. (2018, December). Coffee Shops – UK – December 2018. Retrieved from Mintel Academic: http://academic.mintel.com/display/859807/

Mintel. (2018, December). Coffee Shops – UK – December 2018. Retrieved from Mintel Academic: http://academic.mintel.com/display/859807/

How to use the DRIP model?

4)

This Gap analysis chart is a simplified example of what the current and desired outcome could be for Café Division. Outcome A is an example of what the outcome from the initial opening could be and B is an example of what we could aspire to achieve for the desired outcome.

Association, A. (2018). 2017 definitive advertising statistics. Retrieved from Advertising Association: https://www.adassoc.org.uk/2018/04/2017s-definitive-advertising-statistics-released-today/

Blythe, J. (2006). Essentials of Marketing Communications. England: Pearson Education Limited.

Broderick, D. P. (2004). Integrated Marketing Communications. Pearson Education.

Council, S. C. (2018, October). Sheffield’s Population . Retrieved from Sheffield City Council: https://www.sheffield.gov.uk/home/your-city-council/population-in-sheffield.html

Directory, B. (2018). Gap analysis. Retrieved from Business Directory: http://www.businessdictionary.com/definition/gap-analysis.html

Fill, C. (2009). Marketing Communications: Interactivity, Communities and Content. London: Prentice Hall.

Fill, C. (2013). Marketing Communications brands, experiences and participation . Pearson.

Kerridge, D. (2018, August). Sheffield Star readership. Retrieved from abc.org.uk: https://www.abc.org.uk/product/9809

McDonald, M. (1999). Marketing Plans: How to Prepare Them, how to Use Them. Butterworth-Heinemann.

Mintel. (2018, December). Coffee Shops – UK – December 2018. Retrieved from Mintel Academic: http://academic.mintel.com/display/859807/

Paul Russell Smith, J. T. (2004). Marketing Communications: An Integrated Approach. Kogan Page Publishers.

Statista. (2018, January). Total number and the share of population of active social media and mobile social media users in the United Kingdom (UK) in January 2018. Retrieved from Statista: https://www.statista.com/statistics/507405/uk-active-social-media-and-mobile-social-media-users/

Twitter. (2018, December). The Star, Sheffield. Retrieved from Twitter: https://twitter.com/SheffieldStar?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

Yell. (2018). Sheffield Coffe Shops and Cafes. Retrieved from Yell.com: https://www.yell.com/ucs/UcsSearchAction.do?scrambleSeed=1037776465&keywords=cafes&location=sheffield&pageNum=5

Yeshin, T. (2006). Advertising. London: Thomson Learning.

References

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Yeshin, T. (2006). Advertising. London: Thomson Learning.

Internet cafe business plan

Java Net is a different type of cafe; and it is not like a typical cafe, will give an unparallel assembly for communication and entertainment by the medium of the Internet. Java Net is mainly established for meeting the demand of customer. The customer wants: (1) access to the communication and entertainment website and can get access to search the available information to the Internet, and (2) access to the internet at a lower cost so that they can able to pay and by this way that they aren’t separated socially, economically, or politically. Java Net’s aim is to give the residential with a social, educational, entertaining, environment for universal communication. This café will be established in the place of Central London. This business plan is mainly made for the purpose of getting fund in the amount of £24,000. The subsidiary funding is necessary to start work on preparation of site and change, buying equipment, and to assess cost in the first year of operations. Additional funding has already been fixed in the figure of: (1) From the Oregon Economic Development Fund, we get £24,000 (2) £19,000 of personal savings from owner (3) £36,000 from three investors (4) and £9,290 in the form of short-term loans.
Java Net will be incorporated as an LLC corporation. This will shield the owner that’s me, and the three investors who are from outside, Doug Wilson, Luke Walsh, and John Underwood, from matter of personal responsibility and tax which is pay as double. The investors will be considered as shareholders and they may not be responsible spending investment of personally £12,000 each.
The funding which is related to the contribution of capital from the owner, shareholders and the Oregon Economic Development Fund, will permit Java Net to successfully establish and run business operations by year one. The large amount of initial capital investment will permit Java Net to give its customers to present it as entire characteristics of internet cafe. This café is recognized as a unparalleled, up market, and creative environment is necessary to give the customers with an environment that will engender socialization. Successful operation in year one will give Java Net with a customer base that will permit it to be self sufficient in year two.

* The innovation of an unparalleled, up market, creative atmosphere that will diverse Java Net from local coffee houses.
* Give an understanding to the community about the Internet service that is what they offer or what their facilities are.
* The establishment of an environment that will attract people with various interests and settings together in a common forum.
* To provide a very good coffee and bakery items at a reasonable and fair price.
* Easily available of internet resources and other facilities of online.

Keys to Success
The main factors which are involved in the success of Java Net:

* The innovation of an unparalleled, creative, up market atmosphere that will add as the new features of Java Net and differentiate it from other competitors such as: local coffee shop and prospective internet cafes.
* The formation of Java Net as a residential centre for communication, socialization and entertainment.
* The innovation of an environment that won’t restrain the user who are initiator. Java Net will set up its position itself as one of main educational resource for individuals wanted to find out about their internet facilities and alternatives.
* Good coffee and bakery items.

Mission
Due to the increment of popularity of the Internet which is continually growing at an exponential rate, easy and low cost entryis rapidly becoming an essential of life. Java Net gives communities with the capacity to enter the Internet, take a cup of coffee, and enjoy Internet experiences in a comfortable environment. All ages and any backgrounds of people will come to enjoy the unparalleled, up market, educational, and creative environment that Java Net offers.
Risks
The risks consisted with starting Java Net are:

* Will there be a need for the services provided by Java Net in UK?
* Will the popularity of the Internet regular to grow, or is the Internet on less popularity?
* Will individuals be interested to pay for the service Java Net provides?
* Will the cost of entering the Internet from home drop so necessarily that there may not be a such market for Internet Cafes such as Java Net?

Task 2:
1.2 Literature review:
Java Net, soon to be established in Central London on 10th and Oak, will provide the community easy and affordable entry to the Internet. Java Net will offer entire access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Java Net will also give customers with an unparalleled and creative environment for enjoying great coffee, specialty beverages, and bakery items.
Java Net will in sort to all ages and backgrounds of customers. The instructional Internet classes, and the assisted staff that Java Net offers, will in sort to the audience that does not link themselves with the age of computer. This aspect of education will pull members such as younger and elder of the community who are quickly attaining involvement in the unparalleled resources that communicate through online have to provide. The downtown place will give business people with convenient access with their morning coffee and online requirement.
Java Net is a privately under by Oregon Limited Liability Corporation. Cale Bruckner, the founder of Java Net, is the majority owner. Luke Walsh, Doug Wilson, and John Underwood, all sustain minority position of stock as private investors.
Task 3:
Information about market
Java Net is meeting with the opportunity as stimulated of being the step-mover in the cyber-cafe market. The coherent quality of coffee, aggregate with the increasing interest in the Internet, has been established to be a gaining concept in other related markets and will produce the same results in that other market.
There are some factors such as current tendency, habituation, and sales data assure that the high requirement for coffee will continue invariable more than the next five years. The quick development of the Internet and online services which has been found there is only the tip of the iceberg. The possible development of the Internet is tremendous, to the item while one day, a computer terminal with the connection of online will be as usual and requirement as a telephone. It can be 10 or 20 years down the road, but since the next five years, the service of online supplier market is certain to feel enormous development. As a modern cyber-cafe in London, Java Net will enjoy the spontaneous advantages of name identification and customer commitment. At first, Java Net will maintain a 100 % share of the market of the cyber-cafe here in UK. Since the following five years, competitors will access the market. Java Net has established an aim to hold more than a market share of 50 percent.
Assignment 2:
Project resources:
Java Net will give full enter to email, WWW, FTP, Usenet and other Internet using for example: Telnet and Gopher. With the Internet system, printing, scanning, and introductory courses will also be available to the customer. Java Net will also offer customers with an unparalleled and creative environment for enjoying the great coffee, special beverages and delicious bakery items.
Competitive Comparison
Java Net will be the most Internet cafe in Central London. Java Net will vary itself from the strictly-coffee cafes in London by offering its customers with combination of Internet and services of computing.
Service Description
Java Net will provide its customers with complete enter to the Internet and usual computer software and hardware. There are some services of the Internet and computing available to Java Net customers are mentioned below:

* Enter to external email accounts of POP3.
* Customers can sign up for an email account of Java Net. This account will mainly be controlled by the server of Java Net and accessible from computer systems exterior the Java Net network.
* FTP, Telnet, Gopher, and other popular Internet application will be used.
* Enter to browser of Netscape or Internet Explorer.
* Application of laser and color printing.
* Enter to recognized and more using software applications such as: Adobe Photo Shop and Microsoft Word.

Java Net will also offer its customers with enter to basic classes of Internet and email. These classes will be started in the afternoon and in the evening time. By taking these classes, Java Net will establish a loyalty to the customers to its services. The computers, Internet access, and classes couldn’t mention half of the action if carried out of the environment Java Net will provide. Special offer such as: a good coffee, special drinks, bakery related items, and a comfortable environment will offer Java Net customers bring in the café from the far away from home. It will be considered as a place to enjoy the facility of computing in a comfortable and well-designed environment.
Fulfillment
Java Net will attain the support of computer and Internet entrance from British Telecom Company who provided the support of internet service located in UK. That company will offer the connections of internet, network looking up, and the hardware necessary to operate the Java Network. Allan Brothers will offer Java Net with coffee material, mass coffee, and paper supplies. At this time, the contract for the bakery related items has not been finished. Java Net is presently managing with Humble Bagel and the French horn to fulfill the requirement.
Technology
Java Net will spend money in high-velocity computers to offer its customers with a quick and effective link to the Internet. The computers will be authentic and amusing to work with. Java Net will extend to promote and change the method to remain present with the technology of communications. Other main interests is connected with Internet cafes, which is the equipment art and it is available there and the other facility is that not each person has the pc of Pentium on their office or home.
3Future Services
Since Java Net develops, more technology of communications systems will be included. The hypothesis of supplemental units has been responsible for in the present plan of floor. Since the need for connectivity of internet grows, on with the growth in competition, Java Net will extend to include modern services to sustain its customer base return back for more.
Start-up Summary
Java Net’s costs of business commencement will cover the equipment of coffee making, site redevelopment and change, arrange capital to adjust with losses in the first year, and the equipment of communications require to receive its customers online.
The equipment of communications is important to offer Java Net’s customers with a quick link to the Internet and the coffee services which have to provide to create a large proportion of the commencement cost. And these costs will incur the terminal of computer and total costs included with their establishment. Costs will also be incurring for the buying of two laser printers and a scanner.
Not only this, costs will be arranged for the buying of the instrument of coffee preparing. Minor additional instrument, a office grinder, one espresso machine which will be buying from other suppliers.
The site at Central London will need the funds for redevelopment and change. A single calculated figure will be distributed for this objective. The restoration cost estimate will add the costs which is associated with preparing the site for opening business.
Initial cost includes:

* Computers 11 = £22,000
* Printers 2 = £1,000
* Scanner 1 = £500
* System software = £810
* Espresso machine 1 = £10,700
* Automatic espresso grinder 1= £795
* Repairs and restructuring:
* Coffee /food preparation counters2 = £1,000
* Information display counter 1 = £1,000
* Drinking /eating counter = £500
* Stools 16 = £1,600
* Computer desks with chairs 6 = £2,400
* Items of stationery = £500
* Telephones 2 = £200
* Cost of decoration = £13,000

Start-up
£500
Cost of stationary
£50
Brochures
£500
Advisors
£2,000
Insurance
£700
Rent
£1,445
Coffee machine
£10,700
Grinder of bean
£795
Printer scanner, system software etc.
£24,310
Line of communication
£840
Fixtures/Remodel
£20,000
Total initial cost
£62,290
Initial capital
Cash Required
£24,000
Initial stock
£2,000
Other Current Assets
£0
Long-term Assets
£0
Total Assets
£26,000
Total Requirements
£88,290
Location of Company and opportunities
A site has been chosen at Central London in UK. This site is selected for various reasons, including:

* Closeness to the downtown business group.
* Closeness to trendy, up market restaurants.
* Closeness to London over ground Station. Parking availability.
* Renting cost is low – £.85 per square foot for 1700 square feet.
* High visibility.

These qualities are coherent with Java Net’s aim of offering a main part of communication and socialization for the British community.
Assignment 3:
Implementation of the project:
Java Net usually uses three crucial strategies. Firstly: they concentrate on pulling new user of Internet. By offering friendly environment to a new user, Java Net expects to teach and train a loyal customer base.
Secondly, which is the most important strategy concentrates on attracting in strength Internet users. Strength Internet users are enormously associated with the Internet and its services. Here, a large group of customers get the service from the Java Net. Power users should have the knowledge, understanding and experience of web-browsing that novice Internet users feel interesting and exciting.
The third and the last strategy emphasize on establishing a social environment for the customer of Java Net. A social environment, that gives entertainment, will assist to pull customers that couldn’t usually concentrate about utilizing the Internet. In former in place at Java Net, the group of customers that occurred for the over standard entertainment offerings, will recognize the prospective entertainment scope the Internet can offer.
Strategy Pyramid
The following subtle offer a concept of Java Net’s three basic strategies. Strategy pyramid graphics are demonstrated in the appendix of this plan.
Attract beginner Internet Users
Java Net’s first strategy focuses on attracting beginner Internet users. Java Net plans on attracting these customers by:

* Offering a friendly and social environment for new users. Java Net will be served through qualified personnel concentrated on serving the customer’s requirement.
* Java net arranges a customer service desk will always be served. If a customer has any type of query or matter, Java Net personnel will always be available to do help.
* Java Net will provide basic classes on the subject of Internet and email. These classes will be plan in such a way that can help novice users recognize themselves with these basic tools and the Java Net computer systems.

Competitive Edge
Java Net will focus on the strategy of differentiation to achieve a competitive advantage in this sort of cafe market. While offering the service of internet, Java Net distinguishes itself from other cafe and creates competition with all other cafes in UK. In addition, Java Net offers a relaxed environment with a coffee and bakery related items; differentiate itself from other Internet servicers in UK.
Marketing Strategy
Java Net will place itself as an up market coffee house and the most attractive service provider of internet. It will provide Standard quality coffee and drinks of different taste with a reasonable and competitive price. Because of the larger number of cafes in UK, it is necessary that Java Net establishes reasonable prices for its coffee. Java Net will apply the technique of advertising as it is considered as the main source of promotion. The café opening with an add which will be a coupon for a free one hour of Internet usuage. In addition, Java Net will offer away three hours of internet using which is free use to novices who sign up for a basic to the Internet workshop giving by Java Net.
Pricing Strategy
Java Net mainly depends on the value of coffee and drinks of different taste on the analysis of retail profit provided by our supplier, Allan Brothers Coffee Co., Inc. Allan Brothers, which has been in this sort of coffee business for almost of 22 years and has established a proper pricing strategy.
Establishing a reasonable market on the basis of hourly price, it is more difficult to use online because there is no such type of direct rivalry from another cyber-cafe in area. Therefore, Java Net will consider three main sources to establish the hourly charging rate. First, we concentrate the cost to use other Internet service provider; either it is the firm of local networking or UK online provider. The supplier of internet access applies various schemes of pricing. Some charges are fixed as on the basis of monthly hours, where other supplier charges the fee on the basis of hourly rate. In addition, some servicers apply a strategy with a blend of equally pricing schemes. By this, Java Net may promptly fix or charged more internet service fee for an individual at a monthly basis. Second, Java Net also concentrates about the market of other internet user. Third, Java Net may do a market survey on current market condition. By analyzing these three factors Java Net fix the hourly price of $5.

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Promotion Strategy
Java Net will mainly apply strategy of pull for increasing the consciousness and their demand. Primarily, Java Net has fixed its initial budget of £5,000 in order to promotional sector which will consists of promoting to manage the coupons system for the free time of internet using which is free on the basis of publication of local and the promotion of house for example: providing customers the free time using more internet if the payment will be cleared initially by Java net.
Java Net assumes that if competition increase that means new competitors access the internet business market, Java Net has to spend more money for the sector of advertising for increasing their sales for leading in case of market share.
Sales Strategy
Because of the retail business of Java Net, they recruit personnel for maintaining the transaction of daily or monthly sales and for these employees they should have the proficiency I computer or should have the good computer knowledge. There is another option on Java Net that is if the employees are not computer experts then they are trained by the expert technician of Java Net. These full time technicians of Java Net are always ready for assisting the customers. for distinguishes the services of Java Net from their competitors, they committed to provide friendly and helpful services which is considered as the key success factor for them.
Forecasting of sales
Sales: here, Java Net is mainly relied on their coffee item and sales of espresso in order the financial information supplied by Allann Bros Coffee Co to the Java Net.Their sales of internet are measured by estimating the hours total in related to the terminal on each day and after that they have to also estimate the numbers of hours of consumer use.
Cost of goods sold: products which are coffee related, it’s cost of sales are mainly measured by the analysis of the retail profit which is mainly receive from Allann Bros. Coffee Co. here, coffee related items that is bakery items costs are the 20 percent of the selling price . The internet using cost is £660 as monthly basis which have to pay as the networking fees to Bellevue company. E-mail account fees is also the selling price of 25%.
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