Coffee Shop Industry Assessment

Coffee Shop Industry

Introduction: Coffee Shop Industry

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SECTION 1

a) Explain the purpose of the marketing mix in business

Marketing mix in business structure has many purposes to promote their contents and values to the customers. Marketing aims to give standalone for the valuation through the long term demonstration in strengthening their brand loyalty and increasing the sale among the customers. 

b) Marketing mix strategy for the micro business idea

1. Product Strategy

Here, the chosen marketing strategy for the micro business field set up the business industry of coffee Marketing. Mix business strategy in the price and promotion that will extend to the industry that consists of its demand among the people (Kusuma et al. 2020). The demand of the coffee market belongs to the buyer's needs. The marketing strategy of coffee shops requires more local shops, markets and malls for the people.

2. Pricing Strategy

The pricing strategy of coffee marketing services can assist to make its business growth. The buyers will see it as a bargain and this can help it to increase sales. The low price product can attract the consumers but setting the pieces of the competitor’s margins is always wrong. Some customers can question the high prices on coffee shop business strategy. It depends on the high quality products and materials with its equipment will get the selling opportunity to make the pricing strategy for the coffee shop business.

3. Promotional Strategy

Marketing aims for the beginning of the promotional strategy for the coffee shop is to attract their new customers. This is for increasing the power of the social sites, media to make their promotion for the coffee shop making business. A proper promotional marketing strategy gives a brand an influence on their customers. 

4. Place (Distribution Strategy)

The distribution strategies of the coffee product are around the location of the United Kingdom. The products will be allocated to the needs of the consumers' demand.

 5. People

The people of the business product will conduct the growth of the marketing criteria in the position of promotions.

6. Process

The process of the beginning of coffee shop business planning will be arranged on the basis of the market analysis project. Opening with the coffee shop should be in the profitable purposes to continue their business. One must look into its location where he/she wants to start their business for the targeted audiences. This will decide what the customer wants in the processing of the coffee making for the business purposes.

7. Physical

It has been seen that attracting the customers in the coffee industry will help in making a delicate balance which entices or engage it. There must be a social security system to detect what the customer wants in this coffee sector or industry. The ingredients of the physical environment will consist of the facility in the ambience, service, social factors and layout.

(C) Carry out an analysis of your marketing strategy. Advantages and disadvantages of your marketing strategy.

1. Pricing Strategy

Pricing strategy on the high quality products and materials with its equipment will get the selling opportunity to make the pricing strategy for the coffee shop business. This can make it important to manage a balance in the positive and negative forms. 

 2. Promotional Strategy

This is for increasing the power of the social sites, media to make their promotion for the coffee shop making business. Consumers will be benefited by accepting the advertising on the news articles, social media and the sites.

3. Place Strategy

In the making of the coffee industry, the place of strategy will be decided to the point of the people’s nature. This is where the coffee products will be allocated in the U.K and its surrounding areas.

Advantages

The advantages of starting coffee servicing will increase to generate the value of revenue in a huge benefit. It is dependent on the costing value and the goal to arrive in profitability in the own coffee business. The profits that will generate the coffee business for the future cash earnings.

Disadvantages

Here the lack of coffee shops in this area will create the high demand among the people. The main thing is to make the business in a proper way to make or handle the responsibility for the coffee industry (Pesoa et al. 2021). But sometimes there will be financial issues in the starting part of a coffee sector or industry. Money shortages can also affect the business for making the business fruitful.

[SECTION 2]

a) What exactly do your business/products offer to your customer?

Coffee business/products will offer them to the customer with the new flavors of the coffee products and it generates the normal lifestyles in the incorporate sectors, local shops and other places. 

b) Provide a profile of your customer e.g. age, lifestyle, gender, income etc. Provide reasons as to why you are targeting this profile of customers

In this coffee service industry the intake of consumers age between 18-45 years. In this age group, they are young by their physical capabilities. Male and female both can take the coffee products (Ibrahim et al. 2021).

These young ages are targeting because their lifestyle is on the high and want to take different kinds of the coffee items.

c) How often is your customer likely to purchase your products and why?

Customers purchase the coffee products by their choice. It depends on the pricing systems, supply of the products and the position of the distribution system.

d) How will your customer purchase your product?

The customer can purchase the product by using online services on demand and also they can buy the various coffee products from the local coffee shops and markets (MAI et al. 2022). This is very helpful to conduct the customers by giving them beneficial services through online application services.

SECTION 3

Market Analysis.

a) Market size of your sector/industry

The market size of the coffee service area will be measured by 2,746.4

The revenue structure to the coffee segment can be expected to increase annually by 6.32%. The UK coffee shop market covers the current market share and statistics.

b) Market growth of your sector/industry

The market growth of the coffee industry will be projected by the register 4.34% in the forecast period. This will show the special performance of the growing economic capacity in the future business growth.

c) Who are your main competitors?

Costa coffee, Cafe nero and Starbucks, AMT coffee and so on. These coffee industries are included as the main competitors here.

d) Which market structure best resembles your industry

Monopolistic market structure will be entitled for making the coffee shop industry or sector.

e) What is your value proposition?

It is said that to serve the best quality of the products among the people and they want to enjoy their life as their whole experiences (Kim et al. 2018). The coffee products are owned by the business model of the service holders.

SECTION 4

Which legal factors are likely to affect your business?

1. Public liability insurance

Public liabilities are considered as the insurance policy for making a new coffee shop industry in the growth of the business. This insurance policy is also available for the coffee shop business owners.

2. Employment legislation

Employment levels and their working hours will be guided by the service sectors of coffee industries. This act is designed by the regulation of the payment of salary and the condition of work.

 3. Health & Safety

The condition of health and hygiene will be conducted by the process of the coffee industry. The coffee owners should maintain the process of making coffee in a healthy environment.

4. Data Protection

The industry must keep the data information along with all the provided reports for the growth of the coffee market industry.

It is essential to understand the needs of the eco-friendly condition of the coffee making industry nowadays. In the sunlight, the coffee can grow effectively in a large amount. Water pollution can affect the production of coffee in addition to the new equipment. 

Financial factors

a) Explain why the following are important financial aspects of a start-up business:

1. Sales forecasting

The sales of the coffee industry here are included by some financial aspects for the starting of a business (Areiza-Padilla et al. 2020). It must be notified in the terms of sale that it can deliver the products in the different regions.

2. Budgets

The owner should focus on the investment of the things, where some customer’s need. Beginning of a coffee industry requires taking a wide look at the cost involved. The coffee shop budget is playing an important factor to maintain the business of coffee products.

 3. Break even

Analyzing the break even in the coffee shop industry will detect the point of the moments where the total costs are equal to the revenue system. In the coffee shop industry, break even point involves accumulating comprehensive data about the service sectors and the local market.

b) financial documents for your business:

1. Sales forecast

The sales of the coffee industry here are included by some economical prospects for the starting of a business. It must be notified in the terms of sale that it can deliver the products in the different regions.

2. Start-up budget

It is followed by the register with the local and government authorities for distributing the coffee products to the markets. Schemes will be handled by the owner of the coffee industry sector.

3. 12 month cash flow forecast

The 12 month forecast on the sector of the coffee products has given their resilience. The market of the UK is undergoing shifts to the various coffee shops. All the profits will be covered between 6 to 12 months.

 4. Break even diagram

In the coffee shop industry, breakeven point involves accumulating comprehensive data about the service sectors and the local market.

SECTION 5

a) Analyze your marketing plan –

1. How b do you think your plan is?

The plan is so b in the business field of the coffee making industry. In this plan, there would be a supply chain for distributing the coffee products in the markets or malls.

2. Are there potential areas of weaknesses? If so, what are they?

There are a few areas of weakness. They are manual systems, less market share, difficult to make the name of coffee products and cost advantages.

3. How will you overcome them?

This has been said that the owner of the coffee industry will evaluate the more market share. It must be modified by creating the cost advantages. 

4. What could you do to make your marketing plan more effective?

This would be taken for the growth of the marketing strategies through the coffee making business services. All the necessary things will be acquired by the process of the new technologies in the factories.

SECTION 6

a) Conclusion:

1. What are the chances of success of your business idea and why?

There is an opportunity for advertising the new coffee shop opening business in a greater social experience (Dhisasmito et al. 2020). There will be highly recommendations among the existing customers. It depends on the high quality products and materials with its equipment will get the selling opportunity to make the pricing strategy for the coffee shop business.

2. Why did you decide to pursue this idea compared to other micro-business ideas?

The marketing strategy of coffee shops requires more local shops, markets and malls for the people. This will decide what the customer wants in the processing of the coffee making for the business purposes.

3. Calculate and explain the Return on Investment (ROI) if an investor was to invest in your business.

The return on investments is recognized by the process of core business policy that will conduct the working facilities with clients from the coffee industry. The owners try to relate with the functionality which one is about to start a new coffee business.

4. What is the potential valuation of your business in 3 years if you were to meet all your financial targets?

Through the marketing strategy, a proper promotional marketing strategy gives a brand an influence on their customers. During the period of 3 years, there will be all the potential valuation in the service sectors for promoting the new coffee industry to meet all the financial strategies.

Reference list

Journal

Dhisasmito, P.P. and Kumar, S., 2020. Understanding customer loyalty in the coffee shop industry (A survey in Jakarta, Indonesia). British Food Journal.

Areiza-Padilla, J.A., Cervera-Taulet, A. and Manzi Puertas, M.A., 2020. Ethnocentrism at the coffee shop industry: a study of starbucks in developing countries. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), p.164.

Kim, S.H., Kim, M. and Holland, S., 2018. How customer personality traits influence brand loyalty in the coffee shop industry: The moderating role of business types. International journal of hospitality & tourism administration, 19(3), pp.311-335.

MAI, T.C.T., NGUYEN, H.S., PHAN, N.N.D., LE, M.H., LUU, P.K., NGUYEN, T.T.T. and NGUYEN, T.T.T., 2022. Impacts of Corporate Social Responsibility and Authenticity on Brand Loyalty: Evidence from the Chain Coffee Shop Industry in Vietnam. The Journal of Asian Finance, Economics and Business, 9(6), pp.159-173.

Kusuma, P.K.N. and Giantari, I.G.A., 2020. The Mediating Role of Congruity and Customer Satisfaction in the Effect of the Personality Traits on Brand Loyalty in the Coffee Shop Industry in Bali. American Journal of Humanities and Social Sciences Research, 4(8), pp.426-434.

Ferreira, J. and Ferreira, C., 2018. Challenges and opportunities of new retail horizons in emerging markets: The case of a rising coffee culture in China. Business Horizons, 61(5), pp.783-796.

Ibrahim, B., Aljarah, A. and Sawaftah, D., 2021. Linking social media marketing activities to revisit intention through brand trust and brand loyalty on the coffee shop facebook pages: Exploring sequential mediation mechanism. Sustainability, 13(4), p.2277.

Ibrahim, B., Aljarah, A. and Sawaftah, D., 2021. Linking social media marketing activities to revisit intention through brand trust and brand loyalty on the coffee shop facebook pages: Exploring sequential mediation mechanism. Sustainability, 13(4), p.2277.

Pesoa, J.A., Kristyanto, B. and Dewa, P.K., 2020. Customer Loyalty in Coffee Shop: Literature Review and Condition for the Future. International Journal of Industrial Engineering and Engineering Management, 2(2), pp.61-76.