To Build or Buy

Strategy for a coffee shop

I enjoy visiting City Brew coffee shop, it was established in 1998, and it is known for its quality coffee (City Brew, 2015). The plan is to establish a coffee shop with a competitive strategy that will enable it to navigate through barriers that are set-up by City Brew coffee shop. The coffee shop will develop a unique place where clients can socialize while enjoying their favorite cup of coffee. The primary focus will be to our customers as they play an important part in the growth of the business. Therefore, the business strategy is to offer customers quality services and to increase clients’ retention.  Highly engaged customers tend to be more involved with the brand (Hiebeler, Kelly & Ketteman, 2012). The company will also use information about the customers so as to enhance its services as well as their products quality.

Our business will be focused on assisting the clients to relieve their stress by offering a great ambiance, excellent customer service, and high-quality products. It is also important to uphold consistency in the delivery of the goods (Hiebeler, Kelly & Ketteman, 2012). The coffee shop will be fitted with sockets where the clients can charge their phone and laptops. There will also be fast, free Wi-Fi, where individuals can easily surf the internet. People can download their favorite music and watch movies while enjoying a quality cup of coffee. The students will be able to download lectures and finish their assignments with minimal disturbance. Clients also tend to focus on cleanliness. In this case, the workers will ensure that their work area is clean at all times. Any spills will be cleaned instantly, and the clients will be offered clean napkins at all times. The employees will handle any business complaint from customers in a professional manner.  This will enable the company to increase the clients’ retention rate as it helps in understanding the customers and ensuring that the business is on the right track. Fast handling of customer complaints is also important as it enhances the coffee shop’s image.

Additionally, each client is unique and he or she ought to be treated in a particular manner. Hence, the workers are trained to be quick and accurate in judging the clients, what they like and dislike and treat them in a way that shows that organization cares (Hiebeler, Kelly & Ketteman, 2012). There will also be customer loyalty programs as they assist they will help the coffee shop to retain clients. The loyal customers will be offered a loyalty card that will enable them to purchase their favorite cup of coffee at a discounted price.  The business strategy will also involve providing clients with freshly baked cakes that they can take with their favorite cup of coffee. Another important advantage of the coffee shop is its location. It will be located in a densely populated area with street parking and clean sidewalks. The rationale behind the particular strategy is to appeal clients and increase retention by offering them excellent services and quality products. It will also help in increasing the coffee shop’s competitive advantage.

It would make more sense to open a new coffee shop. One advantage of opening a new coffee shop is that it offers an individual a chance to expose new ideas and make them a reality. It will be easy to implement the business ideas compared to purchasing a company. Hence, it is important for the team to be creative and dedicated so as to avoid any failures. It will also allow individuals to explore unrestrained management and personal skills. Another advantage of opening a new coffee shop is that it will be easy to introduce clients to new products and services (Lussier, Corman & Kimball, 2014). The business strategy will focus on a certain group of customers; therefore, it will be easy to research on their preferences and what they dislike. There is also a possibility that starting a new business will be cheaper than purchasing. It will also be easy to make personal decisions and create a business system that suits the company’s strategy. Additionally, starting a new business offers an individual a chance to choose the most suitable location of the enterprise. Business location is an important aspect of our business strategy. Hence, it is important to start a new company as will have a chance to research on a suitable location. There is also no history of the company that one needs to consider when starting a new corporation.

Based on the current financial situation, the most appropriate form of ownership is a partnership. The partners will provide the startup capital which will be shared equally. It will also allow flexibility and more future growth. The more the business partners, the more they can offer as start-up capital (Pride et al., 2014). The partners will also be able to share future profits. Another advantage of the partnership is that the company does not have to pay income tax on each partner files the profits or losses in the personal income tax return. In this case, the business does not get taxed separately.

Business plan

A business plan is important as it acts as a guide for a new company (Shelton, 2013). Marilyn Coffee shop is focused on becoming an everyday necessity for coffee lovers. It is a place where individuals can relax after a long stressful day. Friends can also have a place to relax and talk about their day’s experience or enjoy a quality alone time. The coffee shop will offer excellent services as well as quality coffee that it is well blended. The coffee will be complimented with freshly baked pastries. 

Mission

To offer our clients a friendly and relaxing atmosphere where they can enjoy a quality cup of coffee and excellent services. The organization will be in business to assist the clients to relieve their everyday stress. Our friendly employees will offer each and every customer quality customers services. The company will invest in the customers so as to increase its profitability.

Objectives

Marilyn coffee shop’s goal is to become a coffee house of choice among the locals. Another objective is to generate profit from the initial month of establishment. Another goal is to uphold a high standard of services and quality coffee. Moreover, the coffee shop aims at ensuring that the clients enjoy a relaxing atmosphere.

Company Overview

Marilyn coffee shop sells coffee from quality coffee beans and different types of cakes. The shop will be located on a busy street with ample parking. The coffee shop targets working people and students who enjoy taking coffee. The coffee shop is focused on offering the clients high standards services (Hiebeler, Kelly & Ketteman, 2012). It values customers as they play a huge part in the organization’s growth. The company is expected to start making a profit within the first month of establishment.

Products

Marilyn coffee shop will provide the clients great tasting coffee that will be brewed from high-quality coffee beans. Some of the coffee drinks that will be included on the menu include lattes, mochas, and cappuccinos among others (Musso & Druica, 2014). They will be prepared using proper preparation methods. The workers will be trained on how to prepare the different coffee flavors so as to ensure constituency. The cafeteria will also offer the clients fresh pastries. The coffee shop will be fitted with free Wi-Fi where the customers can enjoy fast internet services. It will also be fitted with sockets where the clients can charge their phones and laptops.

Market analysis summary

Currently, the coffee business sector has become competitive as new coffee shops continue being established (Musso & Druica, 2014). The customers have also become more demanding as they consider not only the quality of the coffee but also the services. People want a place where they can relax and enjoy their coffee with minimal distractions. Technology is also becoming a huge part of the business world. Therefore, to succeed organizations are required to embrace the current technology.

Market Segmentation

Marilyn coffee shop targets individuals in full-time and part-time employment who loves a quality cup of coffee. Research shows that working people and students are among individuals who have high chances of purchasing gourmet coffee products. It also targets students who want a place to relax a long day.

Target market strategy

Marilyn Coffee shop will target individuals who enjoy quality coffee and services. The location in the busy business street means that most of the customers will be business people. It is apparent that a vast number of clients gravitate towards quality coffee and excellent services (Musso & Druica, 2014). Most of the students prefer visiting coffee to study or meet with friends. The coffee shop will provide a great ambiance for the students to enjoy quality time.

Company’s market competition

There are various competitors in the coffee industry. One of the major competitions is Starbucks which is an international coffee house. It has a well-established brand image in the local and international coffee market. It has various coffee shops in different states which are popular among residents (Starbucks, 2017). Another competitor is City Brew coffee shop; it offers their clients quality coffee brewed with coffee beans from around the globe. The City Brew coffee can be purchased at their stores and kiosks in the western United States (City Brew, 2015). Marilyn coffee shop will position itself as an outstanding coffee shop that offers its clients a relaxing environment which other huge coffee houses lack so as to gain competitive advantage. It will cater to customers in a more personal level, understanding each person’s preferences and dislikes. This will assist the company to increase its market share in the current competitive market.

Sales Strategy

Marilyn coffee shop will employ highly qualified baristas who will handle the sales transactions. The company is focused on providing quality services; hence, clients will be serviced by two workers while another employee will manage the preparation of customers’ order. This will ensure that the customers are offered fast services (Hatten, 2014). Marilyn coffee shop will utilize a computerized payment system so as to speed up the process. It will also use fliers and banners to advertise its products and services. Clients’ retention programs such as loyalty cards will be used so as to increase the retention rate.

References

City Brew. (2015). Taste Without Compromise. Retrieved January 25, 2017, from

https://citybrew.com/

Hatten, T. S. (2014). Small Business Management: Entrepreneurship and Beyond. Cengage Learning.

Hiebeler, R., Kelly, T., & Ketteman, C. (2012). Best Practices: Building Your Business With Customer-focused Solutions. Simon and Schuster.

Lussier, R. N., Corman, J., & Kimball, D. (2014). Entrepreneurial New Venture Skills. Routledge.

Musso, F., & Druica, E. (2014). Handbook of research on retailer-consumer relationship development. Hershey, PA : Business Science Reference

Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2014). Business. S.l.: South-Western Cengage Learning.

Shelton, H. (2013). The secrets to writing a successful business plan: A pro shares a step-by-step guide to creating a plan that gets results. Rockville, Maryland : Summit Valley Press.

Starbucks. (2017). Company information. Retrieved January 25, 2017, from https://www.starbucks.com/about-us/comp