Small Business Management Coffee Project
this is a coffee project and I need you to write an introduction about the project and executive summary for ( Major Objectives, Description of Product’s, Financial Projection, Marketing Strategy ) for this coffee project and the information should be base on this coffee project file.
and another question
How Sales Are To Be MadeBusiness description: GRIND is coffee shop that will be located in AL-Ahsa city on Joba straight close to King Faisal University. It will offer finest types of hot and cold beverages and desserts. The coffee shop is equipped to suit university students, workers in companies and residents. As it became necessary to provide these services near workplaces and human gatherings, and hence the need for the presence of coffee shops. The establishment of a coffee shop in areas with large gatherings will contribute greatly to provide places of entertainment for all segments of society. Where the coffee shop provides drinks of all kinds and sweets in modern ways at prices that suit the general level of the targeted customers in the region. The coffee beans will be roasted in the same coffee shop. In addition to the products, we will provide some services including delivery to take into account the busy students and faculty members. Also, we will provide youth employment opportunities. The coffee shop projects are among the projects with good cost, but in return, their returns are also considered to be high returns. Market description: The coffee market is currently experiencing great growth in economies around the world, where it grows at a significantly large compound annual growth rate of 5.5%. The big reason the coffee market is growing can be acquainted with the increase of demand from millennials as their consumption has increased almost 10%. With the increase in urbanization and the demand for quick, quality product fueling the expansion. The market is expected to continue to inflate in the next five years, leaving ample room for returns and profit (Andrew, Wallengren, 2020, 2014) . Our target market will be the university students, faculty members, employees working in offices located near to the coffee shop and sophisticated teenagers. According to our market research, these customer groups are most likely to buy gourmet coffee products. Since gourmet coffee consumption is global across different income classes and mostly relies on the level of higher education, closeness to KFU campus will provide access to the targeted customer audience. ❖ Competition: Our competitors will be other coffee shops located near the KFU campus. These involve Bloom cafe, C+ specialty coffee, Starbucks and other Food service establishments that provide coffee. Why Us? Great coffee, extra options for tea, very friendly atmosphere, spaces prepared for reading and working, comfortable chairs and tables and good wireless. ❖ Our weaknesses: Firstly, the image has not yet been formed. Secondly, Lack of loyal customers. Thirdly, lack of stable supplier relationships. These weaknesses will be managed by implementing shop design that will be both visually attractive to customers and designed for quick and efficient operations. In addition, adopting marketing strategies that aimed to build a solid base of loyal customers. For example, making discounts for frequent customers. ❖ Market penetration tactics Our market penetration strategies will be Strong pricing by providing our products at lower prices than our competitors’ prices to attract the largest possible number of customers. The strategy is based on the expectation that customers will switch to us because of our lower price. Also, saturating the market with an aggressive advertising campaign by leveraging influencers on social media. Advertising and sales promotion: Customers will be motivated to make a buying decision by the following methods :Firstly, Motivation game; the behavior of attracting events that could increase the presence of the cafe and inform the residents of its presence. Secondly, service promotion; the opportunity to visit the original event should encourage customers to visit the coffee shop and distribute the information later among friends and relatives. Thirdly, advertising; effective advertising for a coffee shop in Internet and other media. Fourthly, souvenirs; regular visitors are entitled to free coffee upon reaching a certain number of visits. To start any Business we have to build a plan. When our plan builded successfully, sure the result which mean the business will succeed. Each plan have steps need to be follow. No mater the business size is small or big. Most of big business looking for planning before they start, that because they have previous knowledge that time cost money, any missed steps will be effect the business in future. But in our normal live, any small business not care about business plan, which is totally wrong for several reason. However the Planning should be the first steps to sets future course of actions in business. The Planning is the foundation we build our project on. Planning helping us to decide how our business will look like, What we will sell?, or What we will produce? Where to buy our initial material? Where the good place to located our store or office? How many employee need to start our business? What the finances do I need? How much profit can I expected? All this and more question need to answer before we just start. The Planing is main important steps have to be start on. But the planning is steps to choosing organizational objectives and setting policies to achieve and leading to Next step in business circuit where we will deciding what resources and activities are needed to meet organizational objectives inadditional to assigning authority and responsibility. That let us moving to next step which is the staffing where will training, developing and orienting employees. That to prepare our self for next steps in business circle, Leading; it’s toward goal achievement, and informing them about their work assignments. Then will move to next steps which is controlling; where will measuring performance against standards, and taking corrective action to monitor the planned performance. As result of business planning may motivate people to investing in our business. In-additional to guide us to operating the business and motivate employees, with out forget the most important thing it’s environment to attract customer and employees. By applying this study to our project which coffee shop, we have to create business planning to identify what we will sell in the coffee shop? How many type of coffee will offer? What type of snake we need to offer? How many type of donate will offer? To move forward on our business plan we have to create Financial Planning. That to determining what funds are needed to create our business, what our funds resource will be or from where will got the funds, in-additional how will control the budget. The locating sources of Funds category to Equity Investors; were the owners become part of the business. Lenders; the business owners provide required money from outsiders for limited time at a fixed rate. Microloans; that is small short term loan provided by the Bank. Our coffee shop it’s small type of business, the funds resource will be earn from outsiders for a limited time at fixed rate of interest. To build strong capital. It’s small type of business no need to earn money from the bank, because that will produce extra financial cost to our business During the finical planning we have to calculate the estimation net profit, which is the amount of revenue over and above the total amount of expenses of doing business. In-additional to Cash flow, which is the amount of cash should be available at a given time to pay expenses such as purchasing the basic ingredients to prepare the donate and snakes every day, or every week. Also the electricity bill every month, and more. Our financial planning have to including estimating income and expenses. Where divided to two category Variable expenses; that relations to volume of output, and Fixed expenses; that do not vary with output, but still same. Our coffee shop will offer Donut with different flavor, such as donut with strawberry, and chocolate. Plus Cookies and Croissant.. All this and more will be produce localy in the shop, depend on customer required. All items will be display in printed menu. The Donut will have two size large and medium the customer have ability to choose between them, the flavor can be chocolate, strawberry, or honey without forget to provide more when require in future. Our food will written in printed menu including calories and what consists of, the thing make us special that calories will be less than other competitors, Plus all our fruit will be fresh not freezes that will give us advantage to customer to join us every time need natural flavor. Our coffee shop will be a great experience to enjoining and spend special and relaxation time, we will provide free WiFi and natural view, without forget the naturalist of the place. Marketing Plan Situation Analysis and Marketing Message The Grind is a unique coffee shop that aims to spread the culture of coffee and work effectively at the same time. Our main goal is to build a name that is directly related to the customer’s mind to comfort, relaxation and the ability to do their work in a suitable atmosphere that provides everything needed for achievement including a dedicated corner containing some books and papers for those who need to study or write notes. In addition to the appropriate tables to do the work. Most importantly, we provide a free Wi-Fi. Also, we make sure to keep the mind active by offering the finest types of coffee that are roasted in The Grind. From here, we were inspired by our message which is good coffee, great work. As we care about customers getting their work done, we also care about reduce psychological pressures by providing a suitable environment for relaxation, such as comfortable couches and appropriate lighting with calm music while enjoying different types of coffee, hot and cold drinks with some dessert and snacks, as our goal is to provide high quality product and services to get on customer satisfaction and to ensure that they spend an enjoyable and comfortable time, which increases their production capacity. The Grind has two competitors, Bloom café which has some strengths such as excellent workplace culture and weaknesses such as lack of fund. The other competitor is C+ which also has strengths such as talented staff and weaknesses such as limited social media success. On the other hand, The Grind can face its competitors and surpass them with its previous advantages, in addition to the availability of fund and our successful marketing strategies through social media. however, we have a weakness such as lack of trained personnel. Target Audience The Grind is targeting their customers based on the demographic variables which are their age, gender and income. The Grind targets both males and females with ages starting from 18 to 25 under young adults who are usually students need to study in a suitable environment, and from 26 to 40 under adults who are working and need to reduce the stress, and whoever above 40 under matured who are usually want to relax and enjoy the services. Finally, low, middle and high income are targeted as well. Marketing Goals The Grind will start with these goals for the next year to help gauge the success of the effort. First goal is to launch the website for The Grind, sharing discounts and offers in it to attract 500 new website visitors and convert them into potential or real customers by the first quarter of the year, thus drive up sales by 5% every month. The second goal is to use social media such as Instagram, Twitter and Snapchat for digital marketing in order to increase brand awareness by 55% by the end of the second quarter. Third goal is to activate email marketing to facilitate the sharing process by the third quarter. Finally, staying informed of customer needs by submitting questionnaires with the purchase invoice and developing the products by the end of the fourth quarter, in line with their needs and changes in the market requirements. Marketing Strategy The Grind use the marketing mix strategy, which consisting of Product, which is The Grind desire to become a brand that offers the finest types of products, which are represented in 7 main categories of coffee and 3 main categories of foods in order to satisfy the desires of all customers in addition to the possibility of buying coffee beans. Second is Price, The Grind interested in being a brand that suits all classes of society therefore, it uses a cost leadership strategy which means cell more units at the lower price while maintaining high quality. Third is place, the product is provided to the consumer directly or via HungerStation and mrsool delivery applications. The last thing is Promotion, The Grind use some marketing activities to trigger customer to buy, which are loyalty programs, support for university students by offering discounts when showing the university ID card, in addition to discounts on the bill if the number is 3 people and additional discounts depending on the events. The Grind will also hold coffee-making courses with the possibility of involving customers by drawing on their own coffee. Marketing Budget The Grind allocated 26,554 SAR for its marketing budget based on its capabilities. 40% of the budget has been set for social media marketing which means 10,622 SAR. 20% go to email marketing which is 5,311 SAR. 15% allocating for The Grind’s website 3,983. 25% for other overhead costs associated with marketing which means 6,638. Management Structure The management structure of The Grind consists of the Chief executive officer (CEO) who has previous experience in management consulting and project management for six years. The CEO responsibilities include making major decision and offer development advice. Chief operating officer (COO) who has experience in managing the day to day operating activities for one year. The COO required to develop short- and long-term strategic goals and monitoring production quantities. Chief financial officer (CFO) his two years of experience was in supervising financial activities. The CFO responsible for improving the financial plan when needed and monitoring cash flow. Chief marketing officer (CMO) who has previous experience in digital marketing for one year, conduct marketing research and marketing campaigns management for two years. The CMO require to carry out all marketing activities, efficiently achieve marketing goals, and create and marketing offers. Human resources manager who has experience in managing development and change, in addition to attract and train talented employees for four years. The HR manager is required to hiring new employees, supporting their innovation and evaluating their performance. Required financing and capital: The owners will invest 560,000 SAR. A loan of 88,000 thousand riyals will be taken to complete the required investment amount. To start operating we will need SR 101,257. For legal expenses (shop license, permit, health cards for workers “to be renewed annually”). Total amount: 4875 SR Social media celebrities’ promotion and marketing expenses: 26,554 SAR Rental expenses prepaid for one month at 6.6 riyals per square foot and 9001.44 S.R Redesigning the building, interior and exterior decoration and furnishing, amounting to 37506 SAR. Insurance expense (general liability, workers compensation and property losses) by a premium of 16502.64 S.R Operating expenses for stationery (outer cups, bags. And paper holder): 9831 SAR Consultants’ fee to assist in preparing the coffee shop: SAR 11251.80. Telephone, internet and request site charges amount to: 9376 SAR. Stationery expenses: 1875.30 SAR We will start with these expenditures before the grand opening so they take their place in the financial forecast as negative retained earnings of: 103816 SAR. The start-up fees also include an amount of SR 536335. They are distributed as follows: An amount of 251290 SR : Cash in the bank to cover employee and owner salaries amounting to 89,639 SR for the first two months .and cash reserves amounting to 54,008 SR. For the first three months of operation. The startup stock includes the following 60,000 SAR. Coffee beans of 12 types, Ethiopian, Brazilian, and others, and 5 types of decaffeinated, amounting to 22,503 SAR. Filters for coffee, baked goods, sandwiches, drinks, tea, fresh herbs, etc … and amounts to 29,629 S.R Cleaning supplies, napkins, coffee bags and monthly office supplies amount to 7977 SR. Total equipment: 225036 SAR. Professional coffee, espresso and coffee grinder machines: 26629 SAR. Food preparation devices (microwave, toaster, dishwasher, refrigerator, blender, etc.) amount to 67510 SAR. Storage tools (boxes, cup shelves, utensils, cupboards, and food boxes) amounting to 13952 SAR. Preparation area tools (table top – sink – ice machine, etc.) amount to 35630 SR. Serving area equipment (table (plates, cups, serving plates) is: 115,251 SR. Store equipment (billing machine – security, air conditioning, signage) amounts to 51570 SAR. Office equipment (computer, printer, phone and furniture) amounts to 13502 SR. Other miscellaneous expenses: 1875 S.R. The financing of the cafe comes from two main sources, namely the owners’ investments, namely: Latifa Khaled – Hadeel Abdul Latif – Aisha Al-Dossary – Lina – Rawan with an amount of 110,000 each, with a total of 550,000 SAR. The amount of 88,000 long-term loan from Al-Rajhi Bank (five years) assumes a total start-up loss of 101,266 SAR, which is the amount of expenses as negative retained earnings. Expectations:We plan to grow as shown in the following chart: It is taken from our sales forecast. We aim to maintain a 60% profit margin and moderate operating expenses and achieve reasonable profits in the second and third year. Financial Highlights by Year 800000 700000 600000 500000 INCOME EXPENSES AND COST 400000 NET PROFIT 300000 NET LOSS 200000 100000 0 FY2020 FY2021 2 FY2022 3 Software, P., 2020. Coffee Shop Business Plan. [online] Bplans: Business Planning Resources and Free Business Plan Samples. Available at: [Accessed 27 October 2020]. Software, P., 2020. Cafe Bistro Coffeehouse Business Plan. [online] Bplans: Business Planning Resources and Free Business Plan Samples. Available at: [Accessed 27 October 2020]. …
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the three requirements should be in two pages length