Moreover, Coffined also have the largest coffee plantation in Indonesia which creates advantages towards our cafe© because the company can fulfill our cafe© coffee demand and provide reasonable price compare to others suppliers. Not only that, Coffined also imported some Arabica coffee bean from Kenya and Mexico. This had fulfill our supplier requirement, the most important thing is economic of scale, when we order coffee bean with Coffined, we can get a better price since we order a lot of coffee bean with them.
Next, the plantation also located in a very strategic area which is Taken and Strickland and these two places is the famous Arabica coffee producing area. These places are called strategic because of their volcanic soils which are very fertile and it contains high nutrients when a volcano erupts. So, the quality of the coffee is assured and there are supplying roasted and ground coffee. Besides that, Coffined also have the rental of the coffee machine services. Coffined offer various types of package options of the coffee machines.
For example, Coffined Espresso (single and double group) and vending machines which we can process a zestful and fresh ready to drink coffee. In this case, our cafe© can save cost of the coffee machine by renting from the company, because of the innovative of the technology, the coffee machine functions will be upgraded time by time, so our cafe© can up-to-date with the coffee machine when we rent it from the company so that our cafe create and brew the best coffee to our customers. 3. 2 Other key relationships We partner with Fuji bakery shop to enhance our business . Our Cakes and pastries will supply by the Fuji Bakery Shop.
The reason why we collaborate with this bakery hop is because this company is the leading manufacturer of bakery and pastries goods in Malaysia which their quality and freshness of the goods are assured. Moreover, Fuji Bakery also provides various types of cakes for example red velvet which is their most popular cakes, Swiss roll and sandwiches. The most important factor why we choose Fuji Bakery is because of their strategic location which is nearby our cafe© in Public. In this case, Fuji Bakery can provide fast delivery service to us when the cakes and parties are out of stock which can avoid the disappointment of our customers.
Besides that, the price of the cakes and pastries re offer with a very reasonable price which our cafe© can earn profits from here as well and not depending on the coffee only. 4. 0 Customer interface 4. 1 Market analysis One of the most important parts for a business plan is the market analysis. The market analysis includes market segmentation, UP, SOOT analysis for own product and competitor analysis. Market segmentation is an effective way which allows us to segment our customer by using demography, geographic, behavioral or cryptographic. The SOOT analysis allows us to analyze the advantages and disadvantages of our products.
There is a saying that ‘knows your enemy and you can in ten Tattles ‘ tens Is winy we need to 00 competitor analyses. 2 larger market Our company segments our market based on demography. The components that included in demography are age, income, gender, and life style. Life style and income is the main thing that we need to segment. As we know, people who like to enjoy their life are willing to spend more money in order to get a better quality of goods and also food. Our company provides high quality of food and drinks to those who love to enjoy their “coffee break” in comfortable surroundings.
Next, people who are willing to spend more money usually have a higher salary. Therefore, these people are our target customers. 4. 3 SOOT analysis 4. 3. 1 Strength Esp.©ranch company strength is it have their own brand which different from others competitor. For example, the brand image was easy to remember by the public so that the peoples can realize the existing of the company and have a try for the first time. Furthermore, Esp.©ranch also give option for the customer to choose their Esp.©ranch and the taste which will give them a good image for Esp.©ranch company reputation.
Beside that’s, Esp.©ranch have provide 100% Arabica coffee beam which imported from Indonesia, Mexico and Kenya. Other than that, When the customer come to the Esp.©ranch retail shop, it will offer special services for the first 20 customer who visit and consumer our product by giving them discount and give them a tumbler or a Esp.©ranch coffee cup as free gift. Besides that, Esp.©ranch also have a coordination and communication between each retailer which it can easily manage to control the information flow and labor forces.
For example, when there is a stock out in certain area, Esp.©ranch will have a backup plan for each of the retail by storing some product such as coffee bean and cake with the supplier. 4. . 2 Weakness First of all, the Esp.©ranch weakness is their financial background, the company does not have large capacity and financial to support the daily operation which involve high cost on handling the advancement of equipment such as coffee maker which needed highly advance to create a quality coffee for the customer and the cost of high quality ingredient also is one of the considerations.
Beside that’s, lack of skilled labor at certain place cause inconvenience to find a suitable bartender to produce a quality coffee for the customer and if there is a skilled labor, the salary will be cost ore than normal worker do because of the lack of skilled worker. 4. 3. 3 Opportunity The opportunity of Esp.©ranch have is it will get more attention from the competitor which the competitor might request to Join venture together with them which will increase the Esp.©ranch financial capable to compete and boot of the partner will achieve win-win situation.
For example, Esp.©ranch can provide their idea for the partner and the other parties will be providing investment on the idea. 4. 3. 4 Threat One of the biggest threat for Esp.©ranch is the competitor, like Struck which have a giggly reputation and their financial background was stable enough to compete with Esp.©ranch The competitor might reduce the price in certain amount and will continue in a month or longer time which will cause the demand for Esp.©ranch decrease and Esp.©ranch can’t compete if Struck continue to compete in the same manner of way, thus, Esp.©ranch might be in a risk which needed to stop some of the operation.
Struck can compete in this method because it can cover the cost from its own strong financial background. 4. 4 Marketing mix 4. 4. 1 Price In term of pricing, Esp.©ranch price range are ARM 14. 90 to ARM 16. 0 each coffee and each mall add on will be charge for ARM 1 to attract the customer to spend a little more to get more drink. Beside that’s, for the cake pricing range will be each piece is ARM to ARM 15 depend on what type of favorite does customer wants. However, the highest price which is ARM 25.
The price will be higher compared with Struck but it has provided right quality for the customer at the right price. The price of coffee drink will be increase soon due to the lack of high quality resources and the competitor also might be increase the price due to the coffee industry environment affect. 4. 4. 2 Place Esp.©ranch is new in the Koala Lump area, thus the focus of retail shop location will be in a Public shopping gallery. Public shopping gallery had become one of the famous hang out place for teenager, by having a strategic location Esp.©ranch might gain more customer. 4. 4. Promotion In the promotion ways, Esp.©ranch will have an event in each of the institution area such as Dunk Abdul Raman Collage University and University Dunk Abdul Raman for promoting our product by giving coupon and free membership for the students. Besides that, promoting advertisement through online is the most common way now day, it’s because of the cost of advertising trough online is free and it only take short time to form an advertisement for example: faceable, Mainstream and tweeter. 4. 4. 4 product The Esp.©ranch first product will be the civil cat coffee and brewed coffees, espresso beverages, cold blended beverages and tea.
Additionally, it also provide sandwich and cake like carrot cake, New York cheese cake, chocolate cake, black forest cake and red velvet cake. The cake menu will change every 2 week to ensure the customer wills not getting bored. Not only Just that, Esp.©ranch also provides games, magazine, mimic, novelty for the customer when they are having their drink or breakfast. Esp.©ranch not Just only sell beverages but, it also sell coffee beam for the customer to try out their self to have their Esp.©ranch made in-home. 4. 5 Fulfillment support In Esp.©ranch we using the strategic of understanding customer taste.
In Severance, we believe everyone has different taste for coffee, we allowed our customer to choose the roasted level of coffee bean, as we know, and different roasted level of coffee will make the taste of coffee totally different. We will try our best to fulfill our customer distraction by providing them with high quality coffee and professional services. Next, we allowed our customer to customize the latte art on their coffee according to their will. Not only that, we will upload all our latte art making process to Youth as to share the uniqueness of this special creation. 4. Pricing structure We sell three different sizes of coffee and every sizes only ARM 1 different. The prices are ARM 14. 90 for MALL, RAW 5. 90 for 550 ML and ARMS. 90 for MALL. Combo set had become one of the promotion technical to induce customer purchase more of our product. To enhance the inventory turn over time, our company will having a promotion combo set. With purchase MALL, customer only needs to add ARM and they can choose either homemade cake or sandwich. We also provide civil cat coffee to our customer but with higher price, ARMS for ML. 4 / Porters Twelve Tortes 4. 7. Threat of substitutes Today, there are many coffee shops we can get in the market like Struck, coffee bean, Dry Cafe©, pacific coffee and etc. Every customer has their own preference for the coffee brand; some of the customer is Just too loyal to the brand. Besides that, the customer may also prefer to other substitutes drink instead of coffee. The threat of substitutes is very high. 4. 7. 2 Threat of new entrants There is not easy to run a quality coffee business, because the initial cost is high. The cost of machine, coffee bean cost, equipment cost and renovation cost will cost at least OROMO, 000.
Furthermore, the competitor is too strong such as Struck and Coffee bean. This 2 coffee brand had built up a place in consumer heart. When people want to go coffee shop, the first place they think about is Struck. Thus, the threat of new entrants is low. 4. 7. 3 The rivalry among existing firms The rivalry among existing firm is high due to there are many different brand of coffee in the market. Based on our research, coffee selling prince for our competitor from RMI 2. 90 to RMI 8. 90 and they offer a larger size of drinks. The rivalry among existing firms is not only about price but also environment.
As we know most of the coffee shop will provide free Wife to their customer. We will also do in the same way, we provided free iambs Unify to our customer. 4. 7. 4 Bargaining power of supplier Coffee bean is the soul of a good coffee, without good coffee bean, seller not able to make a good coffee. The coffee bean we will purchases from 5 different suppliers. As we know , if we can only purchase with one supplier ,than we will have a better negotiation power, but this is very dangerous if the supplier not able to provide the quality of coffee bean that we require or the coffee bean out of stock.
Therefore, we decided to purchase with 5 different suppliers, in order to get a better price, we will sign 1 year contract with them. Thus, the bargaining power of supplier is low in coffee industry. 4. 7. 5 Bargaining power of buyer Unfortunately, the bargaining power of buyer is high due to that there is many choice f coffee shop in the market. Consumer can very get a coffee even in seven-eleven. Not only that, due to we are selling 100% Arabica coffee bean and the coffee bean are fully imported from different country this make our cost goes higher compare to other famous brand coffee shop.
However, most of the consumer only cares about the price but not the quality of the coffee. To overcome these challenges, we will have promotion to our customer. 4. 8 Competitor analysis 4. 8. 1 Competitors of Esp.©ranch First of all, when we talk about coffee, Struck always come to our mind; therefore, Struck is our main competitor. Struck is known as the world’s number one coffee retailer, has over 14,000 coffee shops which more than 37 countries. Struck outlets offer not only coffee drinks but also food items, beans, coffee accessories and teas.
Struck does not compete on price but focus on the experience of customers receives while visiting their coffee shop. Struck focuses its retail choice on the “best places in town”. As we know , the firm is focuses on the high-traffic and also the high-visibility locations. Struck locates stores in shopping malls, and focus on laces that provide convenient access for pedestrians and drivers such as the drive thru system. Next, Coffee Bean & Tea Leaf was based in year 1963. In 2005 the company Ana outlets Ana ten revenues are Bean use is to “Keep Innovating”.
Coffee Bean is known for its depth choice of coffees and teas. Besides that, it is also have a good reputation for its innovation. For example, the ice-blended coffee drink and chi latte. Moreover, Coffee Bean has also get into the overseas market, finding niches in Struck-free markets, for example Israel which almost all of their drinks had certified as kosher. Besides that, San Francisco Coffee also our competitor as the shop is located in Public and same floor with our shop.
This coffee company is founded in year 1997 with a noble mission who is save good people from bad coffee. This company dare to admit that the standard of their coffee is in high quality which they serve only fresh brew coffee from the best coffee farms in the earth. Furthermore, San Francisco Coffee emphasize in their timing which they will never break the rule when it comes to the taste and the freshness of their coffee. Not only that , but they will never use the roasted beans which are more than one month to ensure the freshness and the quality of the beans.