Fundamentals Of Writing Marketing Relation

Motivations of the business

Discuss About The Fundamentals Of Writing Marketing Relation.

The business idea relates to coffee café that serves high-quality coffee for the customers. The coffee uses an innovative method, which the customers pay a monthly or annual subscription fee. The fee allows the customers to access unlimited coffee at the café. Customers can enjoy the coffee at all times of the day and bring loved ones or friends to the café for coffee. The subscription caters for the member’s coffee and allows the discounts for other persons accompanying the member. Members also enjoy free deliveries to the places of work and home at a small fee or on paying for a membership package that includes the delivery (Baack, 2017).

The coffee shop has a luxurious lounge where the customers relax while taking coffee as sweet music plays. The lounge has leather seats and big screens where the customers can watch favourite TV shows and games. Additionally, the customers can also participate in preparing own coffee using the coffee making machines available in the lounge. The purpose of the lounge is to give the customers a home like experience that increases the customer’s satisfaction (Chalmers Brother, 2015).

The business location is in Sydney due to the large population of coffee lovers. Therefore, the café has a great potential for many customers, which is necessary for increasing the sales revenue. The business requires funds to buy the equipment such as coffee makers, utensils and cutlery, leather seats, TV screens, paying rent and other expenses. Additionally, the business requires human labour experienced in the coffee industry. Moreover, the labour should have high hospitality skills to ensure that the customers get the best experience at the coffee shop (Ferrell, 2017).

The membership coffee café exploits a huge market gap of coffee lovers. Most persons love drinking coffee, which accounts for most of the expenditures due to the payments made for each cup of coffee. Therefore, a coffee shop where the customers subscribe monthly and annually for an unlimited amount of coffee proves very economical to the coffee lovers. The café will exploit the inability of other coffee shops to assure customers of unlimited coffee and discounts for friends. Additionally, most of the customers like the feeling of belonging and attachment to a coffee shop, which most coffee shops in Sydney have not availed. Therefore, the shop has the ability to capture a large customer base and high revenues from the sale of coffee through membership (Giovani J.C, 2010).

The context of operations

The starting of the business arises from various motivations necessary to make the business successful.  The main motivation is a great desire to have an enterprise that generates cash inflow and serves the customers’ needs. The desire comes from knowledge gathered in business studies and research in the coffee industry, which assists to identify the gaps café operations. The desire gives the urge to get into the coffee industry with new ideas, which will change the running of coffee cafes (Gregory G Dess, 2015).

Furthermore, the need to tap into the huge market of coffee lovers motivates the business plan. Sydney has a large population made up of students, workers and businesspersons. The various persons require a place to relax and talk business or go for coffee dates. Therefore, the persons create a great chance for the success of a coffee business especially one, which offers unlimited coffee at a small subscription fee. The coffee shop business plan also aligns with the motivation of financial independence by practising hobbies. The business is in line with my hobby of collecting coffee berries and discoveries new tastes of coffee, which comes handy with the business. The coffee business requires creativity in the coffee tastes and brands to beat the competition (Grunig, 2013).

The business operates in an uncertain environment with a lot of competition, opportunities and risks.  The business operates in an environment with a huge opportunity for growth and becoming a strong brand above other coffee cafes. The opportunity arises from the opportunity to develop new unique coffee blends, which customers cannot find in other shops. Additionally, the availability of luxurious and spacious lounges allows the coffee café to attract customers. Most of the coffee cafes do not avail such relaxing lounges for the customers, which means that the business plan will result in great success. Additionally, the idea of a coffee shop that operates on monthly and annual subscriptions will tap great clientele due to the cost-saving advantage to the customer (James Michael Stewart, 2015).

However, the shop faces the risk of failure due to the stiff competition in the coffee industry posed by established brands such as Starbucks. The established brands operate efficiently at low costs compared to the new business plan due to the lack of already established customer loyalty. Additionally, the big brands have the finances to market and develop an appeal to the customers. The ability to market allows the competing brands to attract many customers, which leaves the shop with a few customers. The business plan also faces huge costs at the start-up stage, which could result in the increase in the subscription fees and the prices of coffee. The high prices could result in customers preferring other cheap coffee brands (Johansson, 2010).

Market potential

The business has the potential to attract approximately 500 members in a month. The number represents a huge sales volume for the coffee shop within a month, which translates to a more sales revenues. The dense Sydney population is capable of availing such numbers of customers. Sydney has a mixed population made up of business people, students and employees who take coffee. Therefore, the business has the perspective of serving many customers within a month and annually (Kannaiah, 2015).

The coffee shop targets business people who need a place to relax and discuss trade deals. The coffee shop gives the businesspersons a good environment to effectively talk and transact business in the luxurious coffee lounges. The other group targeted include students who attend the colleges in Sydney. The students take coffee in the morning before classes and in the evening after classes. The shop offers the special services tailored to the student’s needs by offering morning and evening coffee. The employed persons also fall into the target group due to the need for a place to relax and interact while taking coffee. The coffee shop responds to the need by making a luxurious lounge where customers relax over a cup of coffee (Maloney, 2015).

The market has many customers, which is an advantage to the business. The many clients will ensure that the shop sells a lot of coffee and has a large number of members. The market size is large in Sydney compared to other regions, which make the location of the business suitable for success (Mandviwalla, 2015).

The market has an increasing number of customers over the years, which the customer could tap. The introduction of the subscription for an unlimited amount of coffee will change the market for coffee with other shops adopting the idea. The subscription follows a trend in the market, which the customers require a personal touch and a sense of belonging to the coffee shop. The coffee shop through the subscription will cultivate a sense of belonging to the customer (Mankiw, 2017).

The customers targeted involve both genders male and female. Both genders have an equal liking for coffee and represent potential customers. Additionally, most of the targeted customers have the age of 25-60 years, which is the age that includes the students in colleges, employees and business people. The students fall at the age of 25-30 and require different services from the other customers, the students like coffee in the morning before classes and in the evening after classes. Therefore, the shop should avail the special services to the students. The other group is 30-60, which involves the business people and employees. The age group of 30-60 also require specialised services to cater for the specific needs (Marone, 2013).

Market Target

The shop will offer very special services to all the groups to ensure the total satisfaction of the customers for example selling coffee to students at discounted prices. The discounts will lead to the students developing a loyalty to the shop and the willingness to buy coffee at the shop repeatedly. Additionally, the business and employee group will have a special lounge to relax and transact business over a cup of coffee. The lounges will ensure no disturbance and high levels of privacy, especially for the businesspersons. The service will attract new customers and help retain the already existing. Additionally, the café will special and customized blends of coffee to the different customers since the customers have the ability to make own coffee using the coffee makers at the shop. Therefore, the customers will have a say in the taste and brand of coffee berries to use the making of coffee (Mizrahi, 2010).

Additionally, the subscriptions for unlimited coffee will enhance the customer retention rate for the shop. The customers will have a personal touch and a sense of belonging to the café due to membership and customized services. Therefore, the cafe will retain and make new customers through the operations (Mizrahi, 2010).

The business deals with the sale of coffee and snacks to customers who pay a subscription fee to earn membership at the hotel. Additionally, the business also sells coffee to customers without membership, which is usually at a high cost compared to members. The business provides customized coffee to the customers depending on the requirements that the members fill in the registration form. Furthermore, the café has luxurious lounges where the customers relax when drinking coffee. The café also has an online platform where the customers place orders and have coffee delivered (Monanghan, 2011).

The value of the business lies in the annual and monthly membership fees paid by the members. The fee is renewable after the expiry of the subscription. Additional, sources of revenue are the delivery of coffee to the customers, which usually carry an added transport cost. The transportation fees and the membership fees translate to the profits of the coffee shop. However, the shop has expenses such as the payment of employees, buying coffee inventory, replacing broken utensils and cutlery and cleaning expenses. The business aims at maintaining higher revenues compared to expenses to make a profit during a financial year (Monanghan, 2011).

The coffee shop will use various marketing techniques to stay remind, persuade and inform customers. The methods used aim at putting the shop at the top of competition by having a wide customer base. Additionally, the café tries to give better services to customers as compared to other shops in Sydney (Mizrahi, 2010).

Industrial analysis

The business uses advertisements using television and radio to reach the customers. The advertisements happen during favourite radio and television shows to capture a large audience. The adverts show the location of the shop, the interior designing and testimonials of satisfied customers. The adverts intend to create an impression on the customers, which increases the curiosity of visiting the coffee shop. Furthermore, the adverts communicate the benefits of paying the membership fees to the customers (Nicolas Bacon, 2010).

The café uses social media platforms such as Facebook and Instagram to market the products. The café posts images and videos of the products on Facebook and Instagram where the customers’ view, share the messages and give comments. Additionally, the company uses the opinion shapers on social media to market the products. The online marketing develops customer goodwill and loyalty, which translates to increased sales for the shop (Nigel Slack, 2010).

The coffee shop has erected billboards in Sydney for the customers to view and understand that the shop exists. The billboards show an image of a satisfied customer seeping coffee at the shop. The posters also attract customers by using colourful pictures and sweet messages. The shop puts posters at strategic points such as bus stops to ensure that many people get the message. The billboards and posters attract all customers to the shop by using the attractive messages and eye capturing images. Additionally, the posters give a short description of the membership and the high-class services offered at the shop (Noe, 2014).

The café has many processes that happen to satisfy the customers and earn revenue. All the operations concentrate on quality assurance to ensure that the customers do not complain about poor services and products (Perks, 2017).

The café sells coffee prepared by the employees to customers. The café uses coffee making machines to prepare the coffee for customers. The machines require high expertise to customize the client’s coffee since each customer has different tastes. Furthermore, the shop needs to maintain a certain blend of coffee taste, which identifies with the brand. The shop has a transparent production method since the customers also participate in the process. The customers with the help of attendants prepare coffee according to own specifications (Rajesh K. Singh, 2010).

The shop has a group of trusted suppliers who provide high-quality coffee. The coffee is usually graded and checked properly to ensure high-quality standards. The suppliers deliver the coffee to the shop constantly when ordered to avoid shortages. The supplies have to uphold high-quality standards to avoid compromising on the quality of the coffee. Therefore, the shop only qualifies suppliers after a long process of vetting to ensure that the ability to deliver the right quality (Ralph M. Stair, 2015).

Customer composition

The café has the equipment to assist in the delivery of services to the customers. The equipment includes coffee making machines, which the attendants use for preparing coffee for the customers. Additional, equipment includes cutlery and utensils, which the customers use to take coffee at the café. The lounge also has extra equipment, which, include leather seats and television screens to offer customer luxury (Robert J. Anderson, 2015).

The café has a unique computer-based method of communicating externally to customers and internally within the employees. The employees communicate through an internal communication network where messages move through handheld walk talkies. The gadgets ensure quick communication from one client to another which allows quick response to the customers’ needs. Moreover, the shop communicates externally using the café’s website where the customers place coffee orders and the deliveries happen immediately. The website conveys messages such as increases or decreases in the membership fees, any special events happening at the shop and discounts available for coffee. Additionally, the café reaches the customers through portals developed for the members after paying the membership fees. The portals allow the members to place orders, give comments and raise complaints and apply for various fun activities at the shop (S.K Breja, 2011).

The shop operates on a 24-hour basis to ensure customers get products at any time of the day without failure. The attendants work at the café on an eight-hour shift basis to prevent fatigue among the employees. Therefore, the customers can place orders at any time of the day without fear of not receiving the products (Singleton, 2017).

The shop has a clear plan to maintain quality and boost customer satisfaction. The shop begins to maintain quality at the raw materials delivery point. The delivery point ensures that only high-quality coffee delivery occurs at the shop, which will result in the required blend and taste. The other quality checkpoint happens when preparing the coffee where only qualified employees prepare the coffee for the customers. The employees ensure that the customers get customized coffee tastes and brands to avoid complaints. The servers at the shop also maintain quality by giving customers high-quality treatments when taking coffee at the shop. The attendants offer quick responses to the customer needs and maintain a friendly relationship with the customers (Suranovic, 2010).

The café requires a place of operations, which accommodates the equipment and the customers. Other resources include capital to buy the equipment, employee workers, buy inventory, pay rent, market and pay for other emerging expenses. The café also requires human resources experienced in the making of coffee and able to offer high-quality services to the customers (William Stallings, 2012

(Monanghan, 2011)

The business will get money from various places convenient to the owner. The decision to use money from the various sources come after researching for the best and affordable finances. The business will get money from loans offered by business development banks. The banks offer loans after reading the business proposal and identifying the ability to repay the loan. Therefore, the owner will take the business plan to the bank for qualification of a loan (Terje Slatten, 2009).

Additional sources of finances include personal savings and borrowings from friends. The finances fill the financial gap left after securing bank loans. The borrowing from friends and personal savings represent a source of finance that does not accrue interest. Additionally, the personal savings does not require that the owner make payments (Suranovic, 2010).

The business values at approximately 8450 dollars, which counts for the asset including assets, plant and equipment of the business. The café requires finances to buy the assets, which will ensure that the business runs successfully. The available funds collected from personal savings and borrowing from friends add up to 5000 dollars. Therefore, the 3450 dollars deficit should come from the investors. The investor’s funds will go towards buying more assets and paying rent for the business premises. The investor will get a percentage of the business shares in exchange for the investment finances. Additionally, investors will earn dividends from the profits earned by the business. The investor has the option of withdrawing finances through the sale of shares to another investor or to the business. In the event of winding up the business, the investors will receive a refund of the amounts invested (Terje Slatten, 2009).

During the set-up year, the business will establish operations in Sydney. The café will also strive to make customers by cultivating for customer loyalty and informing of the population about the existence of the shop. Additionally, the business will get the most qualified employees to offer high-quality services to the customers.

In the next two years, the business will establish as a strong brand able to beat the competition in the market.  Moreover, the café will pay the loans owed to various parties and pay the dividend to investors holding shares (Tyler Cowen, 2014).

References

Baack, D. (2017). Organisation behaviour (2nd ed.).

Chalmers Brother, V. K. (2015). Leadership Excellence. New Possibilities Press.

Ferrell, O. M. (2017). Marketing Strategy. Texas: South-Western Cengage Learning.

Giovani J.C, R. S. (2010). International Journal of Operations. Operations and Production Management.

Gregory G Dess, G. M. (2015). Strategic Management: Text and Cases. McGraw-Hill Education.

Grunig, J. (2013, 9 27). Excellence Theory. Retrieved from Excellence Theory Website: https://excellencetheory.wordpress.com

James Michael Stewart, M. C. (2015). Certified Information Systems Security Professional. Sybex.

Johansson, J. K. (2010). Global Marketing Strategy. Wiley Online Library, 1(1), 5. doi:10.1002

Kannaiah, D. S. (2015). Consumer Perception on Online Shopping. Journal of Marketing and Consumer Research.

Maloney, J. (2015, July 20). Entrepreneur. Retrieved from Entrepreneur Website: https://www.entrepreneur.com

Mandviwalla, M. (2015, March 19). Fox School of Business . Retrieved from Fox School of Business Website: https://www.community.mis.temple.edu

Mankiw, G. (2017). Principles of Economics (8th ed.). South-Western College Pub.

Marone, F. (2013). Fault Lines in Global Jihad: Organisational, Strategic and Ideological.

Mizrahi, J. (2010). Fundamentals of Writing for Marketing and Public Relation. New York: Business Expert Press.

Monanghan, P. (2011). Sustainability Accounting. Management and Policy Journal.

Nicolas Bacon, T. R. (2010). The Human Resource Management. Sage.

Nigel Slack, S. C. (2010). Operations Management. Madrid, Spain: Pearson.

Noe, H. (2014). Human Resource Management. Mcgraw Hill Education.

Perks, R. (2017). Quality Control Systems and Customer Satisfaction at Tesco. Retrieved April 21, 2018, from Uk Essays: acdemic.mintel.com

Rajesh K. Singh, S. K. (2010). Management Research Review.

Ralph M. Stair, G. W. (2015). Fundamentals of Information Systems. Course Technology.

Robert J. Anderson, W. A. (2015). Mastering Leadership. Newyork: Wiley.

S.K Breja, D. B. (2011). The TQM Journal.

Singleton, R. A. (2017). Approaches to Social Research. Oxford University Press.

Suranovic, S. (2010). International Trade: Theory and Policy. Washington: Saylor Foundation.

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Tyler Cowen, A. T. (2014). Modern Principles: Macroeconomics (3rd ed.). Worth Publisher.

William Stallings, T. C. (2012). Business Data Communication. Pearson.

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