Financial: for my financial part, the alternative can be now that I have taken loan from the bank, I could have loan either from a family, friend or a relative instead. If any problem occurred in my business then it would affect my whole business, it will affect the marketing plan, production plan and also financial plan for which then I would be looking for alternatives to solve the problem and bring back things to normal again.
From my research I carried out on the market and financial side of the business, my business idea seems to be viable. However, it is likely that I will encounter some problems as it is my first year in the business. Therefore, I need to ensure I identify future plans and problems and work them out properly, so that my café is successful in the following year.
Overall I believe that my business plan is good enough to obtain loan from a bank. This is because my market research showed me that there is a gap in the market and a good chance of my business succeeding. Finally I believe that I can go on to succeed with my business and possibly expand in the future. Alternatively if my market is declining then I may diversify into another market.
Also I explained the swot analysis and pest for my café:
SWOT Analysis
- Swot analysis helps an organisation to identify its current position and also what the future might hold. A swot analysis can be done on a product or a company. The SWOT analysis is a very simple but effective means of carrying out an analysis of a company/product. Also SWOT analysis is probably the first step in putting together a decision in business and marketing plan or business plan for product/business.
The SWOT Analysis is stands for strengths, weaknesses, opportunities, and threats. In Strengths and weaknesses are internal factors. Opportunities and threats are external factors. Here is a swot analysis of my business here it will be telling me the strengths and the weaknesses of my business and the opportunities and threats there will be for my business.
Strength
Many business have an own strength from their business to attract more customer in the business. In my Café business I have also strength to attract the customers for my business. So my strength for my business are:
- Inside of my business I have friendly staff
- Unique Selling Point – I will be introducing a organic and non organic food which is sandwiches to impressed people to buy and come to my café.
- Large target audience – maybe I have a large amount of my target audience in my first year of my business because I will planning to introduce and promote my product, example are sampling method, promotion, the quality of product, the place where my business are located and different type of pricing strategies.
- I provide I wide range of clean environment inside my business because this one of the most important factors why people going in the company. Example my company which is Café, I need to provide or work a clean environment of my business to make sure the customer satisfaction.
- Providing the good quality of serving product for the customer.
- I providing good offers of my product to make attracting customers, examples of this are haft price of product, some gift away, physiological pricing - this means pricing designed to have a positive psychological impact from the customers to I going to sell my product – coffee to £2.99 rather than £3.00.
Weaknesses
Also in many businesses they are also lots of weaknesses which are one of the main reasons why other businesses are going down. So in my business I think that my weaknesses are:
- One of my weaknesses for my business is financial state. I may not have the financial resources to run my company. So I may not have money to advertise the product like in billboards or in news paper which are likely expensive, so maybe I will not able to attract much customer or maybe I will not have enough money to improve my service in the future.
- I setting to locate my business in town centre in Birmingham, so means that also I have lots of competitors of my business which is one of the weaknesses in my business.
- Because my business is new, maybe it will be loss profit in first year because example in customer it’s not popular because it’s new business. So maybe also is one of the major weaknesses about my business.
Opportunities
Because I am planning and build a new business and product, I am going to be looking at developing the new product, the product to have its typical features. This also many result in a new approach to the market and how the product will attempt to reach out to its audience. In my research I look at previous attempts that were made on making the product return to its status, using this I will see why the product failed and capitalised on this by using approaches that have never been used before. If it comes to a success my café would be a large market which will take in a large profit and may even attract new consumers which it never had before. I have also different opportunities for my business.
- One of the opportunities of my business is to get new customers and may make a small or a large profit and to expand my market share and advertising I great deal.
- To expand the business in the near future.
- To have a good name in the market.
- Increasing sales opportunities in take out business.
- The ability to spread overhead over multiple revenue centres. The business will be able to spread the management overhead costs among the multiple stores, decreasing the fixed costs per store.
- New location so people encourage to go in business
Threats – Because of the size of the market segment there are many competitors all who want the biggest share in the market and also producing products that will intake the highest profit. I will have to look at competitor’s profit. I will look at competitor’s products and see how they have managed a success in this type of market. There is a chance that my cafe could be unsuccessful and the product will not become established in the market. Competitors may improve their technology leading to their products being produced more efficiently and effectively. The style of the product may not attract the audience which would then lead to failure to my café. I have also another threats of my business these are:
- Competition against other café with big names in the market.
- Starbucks
- Costa
- Café de Nero
- Sunrise Café
- A slump in the economy reducing customer’s disposable income spent on eating and drinking out e.g. mass unemployment, inflation, decreasing wages.
- Restaurants might imitate our style of product and services.
- Maybe the problem also is the inflation rate because every year the price charge from the product are increase so it could be one threats for my business
In my business, the SWOT analysis is good and we are hoping that is going to improve. The cafe has so much strength than weaknesses. I can say that when it comes to service and quality, I can guarantee the satisfaction of the customers. Hopefully, the business can achieve its opportunities and expand the business. As the owner of the cafe, I am aware about the threats that may come and occur. This analysis can be the guide for the business to achieve its goals and objectives.
In the previous section of this coursework on planning and managing a new business (café) I explained the importance of a marketing mix within my businesses and I will applied it in the four P’s (price, product, place and promotion) to my products. I will be explaining, with help from my own research and what methods I am going to use to promote and sell my own product. In this section I am going to analysis my decisions and justify the choices I have made, further more I will be looking at other influences that will have an effect on my product such as external constraints. These will be help shown through a pest report and analysed for there importance and how they will affect my business. I will apply a PEST analysis to my product:
Pest analysis will help identify and evaluate external factors that can affect of my business. It allows a business to identify what they business make for the future. If it is growth or loss profit.
In the previous section I have described my product as a fun, loveable franchise. I believe this to be the case and these are the grounds in which my product will reach its audience and high profits. Supported by the research I found, it is obvious that success will come if I capture the all my customer’s attention and make the brand like many big and popular café in town centre which my business locate. By applying the strategies I have chosen I am meeting the requirements found to be successful and compete with the leading products within this market because today, more and more people planning to build a new business because business is likely more profit unlike in ordinary workers. So that I will be very make my own plan and decision on how to growth this kind of business which is café.
Another problem encounter for all businesses is face when releasing a product is how to price their product? This is the most important thing when managing a business. Because if the correct price isn’t applied it can have large negative results, too low and you can lose brand image and too high and you can be risking the loss of sales. It is known that the higher the price of a product the less demand their will be. I saw through my research what customers are willing to spend and the average price of competitor’s products, example of the café business I research is starbucks – this company provide a large amount of money to make easer from their customers to buy a product like they a lowest price to make more customers buy and come . With this knowledge at hand I appropriately placed my product within the price range found to be accepted and the most popular. As for pricing strategies I decided on using penetration – which means I set a low price of my product which is to increase my sales, and psychological pricing means I set my owned designed about my prices I made, examples is I selling a shortbread in 29p – means that I selling this product in 29p instead in 30p or other prices. By using penetration pricing I am hoping to attract and gain a large audience and then take as much money of them as possible after gaining customer loyalty. Physiological pricing will help the introduction into the market be more successful, giving value for money and creating awareness for the product. Used together and successfully my products price will be within the area found to be most acceptable in my target audience and capitalise on high profit margins. Another problem is there will be always a risk of inflation taking an unwanted negative turn on my product which is happen every month or year when the economy takes risk or something. Inflation in business world has the power to boost prices up and reduce customer’s expendable money. Unfortunately this is a factor that is unable to control and will also influence other products in the same market segment. So although it has an unwanted negative approach, it won’t have a large effect and wont damage brand image to my business.
I believe were I have placed my products to be sold is the best situated of my product and will have a successful impact on the profit scale. Other methods wouldn’t have the desired effect I wish upon my business and would hinder any chances of competing with leading brands, example of this popular brand company are starbucks, Costa and other leading brand.
Through promotion I have shown methods I wish to use, mainly through leaflets or in small billboard because I have a limited budget to promote my product, so that I decided to use this promotional method for my cafe. On the recently research oh promoting my product, I believe the method I have chosen will make my business explode into the market segment and situate itself as one of the leading brands, a place where I aim my product to remain.
Conclusion:
I have explained all influence and how I wish to use them to apply my product into its market segment and capitalise on sales. All my choices have been made was supported by my own research previously shown and show promise to be very successful. I believe my products will entre the market and through its advertising be a force in the coffee segment. Its price and look will help ensure a unique quality at an affordable and respectable price for my customers. My marketing mix of my business has the criteria to ensure a successful of my business and create my own product that will compete at the higher ends of the market segmentation.
