EspressoLink Business Plan
The company will manufacture and sell ready-made coffee to people in North Carolina. Other than doing home deliveries and partnering with various supermarkets chains, retailers, and wholesalers to distribute its products, The business will also operate a coffee shop to market and sell the product. Been a start-up, the business will focus on the coffee shop as it provides a platform where residents can sample its specialty coffee. The outlet offers the most cost effective method to promote the firm’s products as clients get to try the product while still paying for the same. It will customize its coffee shop to meet the interests and aspirations of coffee consumers in the region. Knowledge of the target market, 2. The provision of a specialty product offered at an affordable price.
Espresso will have efficient roasters and an experienced barista to deliver its special proprietary blend, 3. The presence of passionate and motivated employees providing a memorable customer experience, 4. Effective marketing to build and sustain a solid base of loyal customers, 5. The difference between the two industries illustrates the tremendous potential available in the coffee shop market. Moreover, even though 75% of all brewed coffee is consumed at home, 66% of Americans purchase their coffee outside of their homes. As reported by the Specialty Coffee Association of America, current trends indicate that the greatest opportunity in the industry lies in the provision of specialty coffee explaining why EspressoLink focusses on that specific product. The average rate of expenditure in a coffee shop is $8 because coffeehouse visitors rarely purchase food.
As a result, EspressoLink will not sell any food items, just the beverages and a few accompaniments. The company appreciates the fact that nothing beats the fragrant smell and taste of roasted coffee, be it at home, coffee shop, or in the office. The most interesting thing is that people in the United States spend over $30 billion on specialty and regular cups of the hot beverage. EspressoLink knows it target market clearly, and the knowledge has been used in the design and development of its products and services. As earlier stated, the company’s main target market consists of specialty coffee drinkers; its primary product is espresso coffee. An analysis of the coffee shops in the area shows that a majority of them stock latte, cappuccino, and mocha, causing a shortage in the espresso market, which creates an excellent opportunity for EspressoLink.
Need to socialize: Teenagers and young single adults seek to meet potential spouses over restaurants. Many restaurants have therefore taken up serving coffee since it consists of a broad range of customers from all age groups and gender. Producing coffee will, therefore, earn high profits for the company as it increases the target market size. Quality meetings: Hiring conference rooms has become too expensive for small discussions. Therefore, corporate executives wishing to hold short but meaningful discussions prefer to do so to a cup of coffee. The coffee house industry in the U. S. has about 22,000 stores with a total revenue close to $12 billion. Competition in the sector is driven by consumer tastes and preferences along with personal income. The profitability of players in the industry depends on various issues, such as their ability to secure prime locations, offer high-quality products, and drive store traffic.
As a result, EspressoLink will ensure that it avails innovative products, which are excellently priced. Additionally, the company will have a variety of products catering to the needs of health-conscious items. However, EspressoLink still expects formidable competition from industry heavyweights such as Starbucks and Dunkin Donuts, both of which have a market presence in the area. Strategic Position and Risk Assessment EspressoLink will apply a strategy of total market service, which involves the provision of a unique product attracting the entire spectrum of coffee drinkers and providing a conducive environment for coffee drinkers. The company aims to offer a memorable experience not to sell a product. Additionally, EspressoLink will promote its brand in malls to reach and access a higher proportion of its target customers, particularly the high social class.
We have entered into ten-year contracts with three malls within the region, which sums up to 20% of our gross income. Thirdly, we have established ten restaurants under our brand name which are dedicated to serving EspressoLink products only. The restaurants are expected to avail 30% of the firm's gross income (Scott, 2008). Finally, EspressoLink will sells its products online, which is expected to account for more than 30% of its gross income. Political risk. The firm mainly imports raw coffee from other nations. As a result, political wars could affect the coffee availability or raise the price of acquisition, thus, lowering the company's profit. Foreign currency fluctuations. The firm mainly imports coffee from other nations and is likely to be affected by changes in the exchange rates.
In addition to that, social responsibility is considered to be more essential as the business ethics. This is because it takes care of the workers working in companies, being responsible to the environment as well as giving back to the community. Any socially responsible person is always involved in some practices like aiding the needy in the community and ensuring that equality and fairness prevail. (Griseri & Seppala, 2010). Creating jobs Any company that comes to existence have got a primary task of provision of employment opportunity to the community members where the business is set (Simpson & Taylor, 2013). EspressoLink will also embark on partnerships with local universities and colleges to offer to eligible part-time and full-time partners the opportunity to complete a bachelor's degree with full tuition reimbursement.
This will help empower people who work with EspressoLink as they advance their careers and become their own people or get promotions in the company. Employees will be able to study while they work through this program. Since EspressoLink is designed as a social venture, it is the company's goal to EspressoLink as a place for public conversation and elevating civic engagement through service and promoting education among the young people and discouraging violence in the community. Education is important for the next generation to be successful. EspressoLink therefore is seen to create awareness about the importance of conserving and providing care for the environment. EspressoLink has one of its objectives as minimizing the amount of wastes that are being produced during the recycling process.
EspressoLink deals with recycling of cardboard where there is waste management. Furthermore the company is looking forward to venture into front-of-house recycling. In addition EspressoLink is aiming at collaborating with mall caretakers to ease the process of recycling for both the company and the customers. A cup of coffee in the morning may pack more than just an energy boost as research shows that it helps in preventing diabetes as well as lowering the risk of liver diseases (Simpson & Taylor, 2013). The company's strategy to mitigate the negatives that are associated with coffee will be to train its staff to educate its customers. EspressoLink employees will be trained on how to talk to customers about the effects of coffee as well as have warnings on its advertisements.
This will also be achieved through community sensitization that the company conducts and employees involved will be able to train community members on the dangers of excessive coffee drinking and how it can affect their health. Through these forums, the society will be educated, and responsible behaviors on coffee consumption will be encouraged. By this the business will encounter a good relationship with the customers and all the other stakeholders hence increased quality of service delivery to customers and finally making the society at large to move forward. References Packaged Facts. Energy drinks and shots: U. S. market trends. Market share of carbonated beverages worldwide as of 2015, by company. Statista. com. Retrieved from https://www. statista. Westport, Conn. : Greenwood Press. Chandrasekaran,.
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