Marketing Management Essay writing help on Business plan : Business Plan for African Civet Cat Coffee Chain of Coffee Stores

Question Asked??

Write a business plan on marketing management for African Civet Cat Coffee Chain of Coffee Stores ??

Solutions the question frame is::

1. Business History

The team had a task to come up with unique business ideas which were either related to or incorporated tea or coffee market. The most promising idea which has been chosen is Premium Coffee Houses serving African Civet Cat Coffee. This is an iconoclastic idea because it challenges the current trend of serving and doing things in the beverages industry.  In this business plan we will incorporate the premium coffee houses like Costa, Starbucks with selling plan for African Civet Cat Coffee.

1.1 Vision and Mission Statement

 The mission of the project is three-fold and is integral to the success because the plan is to:

• Product Mission:  To provide customers with a finest and  quality beverage or coffee through premium coffee chains
•  Community Mission: environmental friendly coffee growing process and provides natural food for civet cats.
• Economic Mission: to work towards improvement of local economies for instance subsistence farmers in Africa. Along with this to grow and operate at profitable rate through sound economic decisions.

1.2 Objectives

The primary objectives which have been outlined for serving African Civet cat Coffee through Premium Coffee Houses is to:

• Provide highest quality coffee to the  coffee connoisseurs and  purveyors
• Make it an instant coffee product amongst the premium coffee chain stores
• To tap the drive-thru and Mobile Cafes of Premium coffee houses
•  Obtain a Gross Margin of 45% or more.

1.3 Keys to Success

  There are mainly four keys to this business plan out of which the three are almost similar for any food service business. It is the fourth key: “The Community –Environmental Mission” which will create extra special image of respect in the eyes of public.

1. The Prime Locations:  Premium coffee houses are mostly located in areas of high visibility, convenient access and have high traffic pattern.
2.  The Best-in-class Products:  Unique flavour characteristics, freshest and lacks bitterness, complex aroma profiles. High quality premium range of coffee.
3. The friendliest Servers: The staff in premium coffee houses is very cheerful, skilled, articulate and professional.
4.  The finest reputation: mission of charity, sustainable economies for local African community, sanctuaries for civet cats, humane treatment of animals.

2. About Company

Kopi Luwak coffee is said to be the most expensive coffee across the globe and is produced in Indonesia. It is retailed to different premium stores worldwide at a premium rate of $100 per 100 grams (CNN, 2008). The highly derivable civet cat ingested coffee is very much in demand and desirable because of its unique flavour, lack of bitterness found in traditional coffees and complex aromatic profile.

2.1 Ownership

The company ‘Hand-picked Coffee’ is a speciality beverage company which will mainly get involved in sourcing African civet cat coffee beans in Africa. It will use a unique system to mass produce the civet cat coffee. This will help in creation and development of branded chain of premium coffee stores in UK which will sell this premium product as instant coffees into the profitable hot beverages market of UK. The company is a limited liability company and the membership shares are being with the owner of company because if the company wants to raise some capital it can use some portion of the shares to do so.

2.2 Start-Up Summary

 The start-up expenses and the funding of ‘Hand-Picked Coffee’ can be seen from the Appendix A and Appendix B attached with the business plan. Most of these funds will be used for building the facility, developing sanctuaries for civet cats, pay deposits, and also for providing capital for six months for the operating expenses

2.3 Company Location and Facilities

The company will mainly open its facility in African continent where it plans to grow the civet cats coffee beans because the Tropical African region has huge population of civet cats. The sustenance farmers in Africa will be contracted near the coffee plantations of the company for breeding and keeping the civet cats which will be used in the process of coffee production.

3. Products

‘Hand-Picked Coffee’ would provide its customers with premium and high quality coffee which is freshest in taste and is extracted with great efforts.

3.1 Product Description

African civet cat coffee is the biggest trend in the luxury coffee range and is made from the coffee beans which are being found in the animal faeces. Famously referred as Kopi Luwak or Civet Coffee is one of the trendiest beverage which costs between 200 and 300 pounds for every pound of civet coffee. It is very expensive because of its scarcity because only 500 grams of beans are being produced in Indonesia every year (Daily Mail Reporter, 2011).

3.2 Competitive Comparison

The coffee produced from   these roasted beans after roasting is non-acidic, with a unique soft and sweet taste, with a deep and mellowed flavour as compared to traditional coffee.

The ordinary coffee beans come from the seed of the coffee plant fruit which is approximately the size of the cherry. Then the seed or bean is being separated from the coffee plant from the fruits flesh and then finally it is fermented and roasted. But in case of civet cats coffee beans the coffee beans undergo similar process inside the digestive tract of civet cats only. This gives them unique taste and aroma (Willett, 2012)

3.3 Sourcing

The framers are being supplied with high quality red coffee berries on daily basis which are being fed to the civet cats. Then every week the cleaned defecated coffee beans are being collected for roasting to send them to the roasting plants (Daily Mail Reporter, 2011).

3.4 Technology

The technology is nothing new it is just that the civet cats choose to eat the best coffee beans only and it employs the natural process and these red coffee beans are natural food of civet cats. Then the faeces of the cats is collected and cleaned in hygienic manner. Finally they are roasted in the roasting plants and a unique coffee is prepared (Willett, 2012) .

 4. Market Analysis

The two mainly focussed markets for the ‘Hand-Picked Coffee’ are:

• The luxury consumer:  someone who prefers to pay any amount for specialty cup of coffee but wants a totally out of the world taste of coffee.
• Regular Consumer: someone who is looking for a different taste of coffee as he/ she is regular consumer of coffee and wants to try something new which is best in quality as well as taste.

4.1 Market Segmentation

The two different market segments which will be tapped by civet cat coffee would be the regular coffee consumers and the luxury consumers. For the regular consumers the company has planned a drive-thru premium coffee houses which are located at premium spots in UK like the London Square etc. For the luxury segment of consumers to the coffee boutiques or chains located within the premises of expensive malls or five star hotels would be the target.

The luxury segment of consumers is the affluent locals which stay within an area of five miles of the premium coffee chain store where African civet cat coffee will be served. It covers all the artists, writers, trendsetters, key influencers and celebrities staying within this periphery (Crossan, 2005).

 The second segment is the regular consumer of coffee would definitely like to give a try to the new taste especially the local business people, students, etc.

4.2 Target Market Segment Strategy

The target market segment strategy is to maintain a high customer count by leveraging the appealing points of civet cat coffee. The affluent locals like writers, celebrities stay very close to the premium coffee chain stores within an area of approximately three or five miles. So they can always visit to taste a cup of premium African civet cat coffee by driving to the nearest coffee shop and they will also have a parking space available for them. Since they form the core of our business we will reach out to them local marketing which would also involve Chamber of Commerce, support and sponsorship of youth sports teams and events, and supporting the local charitable organizations.

Regular customers can be attracted towards the civet cat coffee by distributing promotional mailers and giving them discount coupons so that they get tempted to taste it. To reach out the students special student discount cards can be offered and give free coffee coupons during school or college events.

4.2.1Market Trends

The concept of speciality coffee was introduced by Starbucks and Costa Coffee in UK , but the premium coffee range is yet to catch fire in hot beverages market, because people are ready to try and taste new coffee tastes which is very hard to obtain. Since Starbucks and many other coffee chain stores have become well-known brand names amongst local customers , people want to try something which is unique and premium in coffee and this is where ‘Hand-picked Coffee’ can easily tap the market for the price they demand.

4.2.2 Market growth

As per the industry statistics the consumption of coffee is growing very rapidly. Moreover it is very tough to obtain civet cat coffee, due to its tough procedure, so its demand is very high in UK markets. The anticipated growth of coffee markets is 7000 more coffee outlets in UK with increased revenue of $6 billion from coffee consumer markets.

4.2.3 Market Needs

The consumer market consists of people with busy schedules and high earning and spending power so they need quality and would appreciate a cup of premium coffee sitting in upscale coffee store. The consumer still has the desire for a uniquely blended coffee or beverage.

4.3 Industry analysis

The growth of coffee industry can be seen at tremendous pace as Starbucks the coffee chain store leader earned revenue of $2.2 billion in the fiscal year 2000.

4.3.1 Distribution Pattern

The premium civet cat coffee would be easily distributed through the premium coffee chain stores as they already have regular base of customers and clients.

4.3.2 Competition and Buying Pattern

The main competitors which they would face are the national specialty beverage chains, specialty coffee companies like The Urban Coffee Company and other specialty coffee ranges like Weasel Coffee set to launch next year (Daily Mail Reporter, 2011).

4.3.3 Main Competitors

The main competitors which ‘hand-picked Coffee’ would have to face  are the Urban Coffee Company which deals with the same kind of specialty covet cat coffee, secondly the coffee shops in the luxurious hotels and spas which are already serving premium coffees like Black Ivory Coffee served at The  ANantara Hotels and Spa. Another competition would be the premium segment of coffee the Weasel Coffee which is slate to be launched by year end (Willett, 2012).

5. Strategy and Implementation

5.1 Strategy Pyramid

The strategy of the company is to make people realise that we provide excellent quality coffee which has attached community benefit and has convenient accessibility through premium coffee chain stores.

5.2 Value Proposition

The main value proposition of the product is the concept where customer drives, parks vehicle easily, places the order and receives and enjoys high quality premium coffee and rives back without wasting any time during the process. It also has a community value as it will provide employment to many African farmers and will work towards human treatment of animals.

5.3 Competitive Edge

Highly quality cup of coffee at competitive price with community value attached to it.

5.4 Marketing and Promotion Strategy

Placing advertisements at locations of high visibility and with great ease of access like high traffic commuters route or near shopping facilities.  It will implement low cost promotional or advertising campaign.

 Marketing programs will involve designing a distinct logo like a happy sun emerging out of cup of coffee with coffee branches.

 The Positioning Statement would be a premium coffee for the premium and busy people whose time is premium, but who always desire refreshing and quality beverage at any price.

5.5 Pricing Strategy

The pricing would be comparative pricing with their competitors but will come with value-added feature of accessibility, immediate availability and convenience without time wastage factors.

5.6 Sales Strategy

It would cover sales programs like:

• Corporate Tasting events
•  Offering  Drink Coupon at school events or other entertainment events
•  Offering memberships to premium coffee drinkers

5.6 Strategic Alliances

It will have to develop strategic alliances with most of the premium coffee chain stores like Costa, Starbucks etc along with local coffee stores.

6. Management

The management structure would be relatively flat one. A minimum amount of overhead would be allocated to the management and the senior managers will be treated as hand-on workers (Porter, 1998).

6.1 Management Team

The management team will be such where managers and workers will be treated equally.

6.2 Organisational Structure

The organizations structure would have more of production members in staff so the percentage of people in management would be relatively lower.

6.3 Labour Market Issues

Labour exploitation would be avoided and the wages would be paid as per industry standards to the farmers and the people working.

6.4 Regulatory Issues

Permission for the ethical treatment of civet cats would be taken from PETA and the conditions where they would be kept would be according to desired standards.

7. Financial Plan

The financial picture of this plan looks very promising. Because the start-up cost is not very high. Moreover the whole process being labour intensive so he talent of very high level is needed.

7.1 Important Assumptions

• Slow-growth economy due to recession
•  No unforeseen changes in the perception of public regarding health and coffee products.
• Access to equity capital and financing is sufficient.

7.2 Break-Even Analysis

7.3 Projected Profit and Loss

 The projected P/L statement shows a dramatic growth in the business within the next three years as can be seen from the Appendix C. Healthy sales would be achieved by the end of first year.

7.4 Projected Cash Flow

The cash flow would be monitored very carefully for the company. The business will turn self-sustaining once the start-up costs and initial investments are recovered. As can be seen from the figure below:

7.5 Exit Strategy

It can plan three exit strategies.

• Franchising
•   Initial public or private offerings
•  Becoming attractive target for buyout

8. Conclusion

 Thus from the above business plan it is evident that this would be a profitable venture with few risks like opposition from PETA but the cash flows and P&L statement suggest that it will turn out to be attractive target for buyout. But it should try to follow the second exit strategy of initial public offerings to plan for further expansion and go global.

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