EXECUTIVE SUMMARY
Coffee House 101 is a food and beverage business that provides many coffee kinds such as iced-cold coffee, a range of smoothies, hot coffee drinks, and a pastry menu to satisfy your appetite. Coffee House 101 is a coffee shop that serves more than just our daily caffeine fix. You might assume it's the cute barista behind the counter, amazing customer service, or modern interior design, but there are a few more features a comfortable café can utilize to steal consumers away from their competition across the corner. Coffee House 101 has compiled a collection of brilliant coffee house designs and solutions, and the unique concepts are so out of the box that we can't get enough of them. From reusing spent coffee grounds as compost to creating never-before-seen coffee shop designs, to coming up with alternate syrup names.
II. MISSION
a) Business Description
Coffee House 101 will serve high-quality coffee to office employees, students, businessmen/women, coffee enthusiasts, and individuals who work nearby. We will sell iced coffee, smoothies, and hot coffee drinks, with a focus on providing quality at a fast pace. We will sell coffee to go as well as to eat in, with an indoor seating area for 25 customers, and to make the customers feel at ease, the design of the venue gives a calm ambience that is appropriate for unwinding and relaxing, which will undoubtedly make them return. While there are other coffee shops in the community, we believe there is a need for more, particularly those that focus on high-quality products. We will also provide a pastry menu, which we hope will set us apart from other coffee shops in the region.
We are on a popular street and anticipate receiving business from passers-by during the day. Coffee House 101 will work to increase consumer loyalty in the future. We will maintain a core product while rotating offers on a regular basis to keep our consumer base interested.
b) Mission Statement
To supply the greatest freshly roasted coffees in the world to our consumers, along with excellent service, at a price that is fair to both the producers and our customers.
c) Vision Statement
Serving with pride and working with Passion to deliver the Coffee House 101 Promise.
d) Marketing Mix
Products
The Coffee House 101 product mix includes a diverse selection of items that are especially appealing to Filipino coffee and snack enthusiasts. Food and coffee, for example, have a distinct Filipino flavor. The company provides a wide range of coffee varieties and flavors. Cappuccino, Latte, Flat white, Americano, Mocha, Expresso, and other well-known beverages are available. Coffee cream, Mocha cream Frosting, Lemonade, and other ice blended items are available. Coffee House also sell to businesses and caterers; for example, the company provides vending machines to corporate offices and colleges under the brand name Coffee House Express. The products offered are the major driver in the company's business strategy, as it employs a pull strategy to attract and retain clients. With its core product, coffee, the company believes in providing customers with "wow" moments.
Price
It is priced extremely reasonably for the upper middle class in the Philippines. The Coffee House 101's marketing mix includes a broad price range, albeit it is driven by competition and is slightly pricey. Coffee House 101's products are priced in the premium class due to their brand value and high quality. Coffee House believes that pricing is secondary to quality for any consumer and concentrates on providing high-quality items. Small and large sizes are available in the company's beverages.
The cost is likewise proportionate to the quantity ordered. Coffee House express is a brand of coffee vending machines sold by Coffee House. This vending machine's price is competitive when compared to competitors such as Starbucks and Cafe Coffee Day. The price of coffee also changes depending on the additions made to it, such as extra chocolate, cream, and so on.
Place
The Coffee House 101's basic strategy is to open a cafe in every feasible area where some business may be produced. This is a critical aspect in deciding a retail chain's success. It intends to serve their target clientele through strategically placed outlets. Our locations are typically found on Main Street/Family Entertainment Centers, gas stations, and near colleges, among other places. Coffee Houses are mostly aimed towards the upper middle class. In order to achieve a larger consumer base, we also adapt its menu based on the country in which it operates.
Promotion
The Coffee House 101 is a luxury brand that does not rely heavily on television, print media, and other forms of advertising. The company's most essential marketing approach is to rely on word-of-mouth exposure from its clients, as the brand Coffee House not only gives coffee but also an experience. In addition, as part of its new product promotion strategy, the company distributes free samples to its consumers in order to obtain feedback on the product and raise buy intent. Coffee House also focuses on digital media to promote its campaigns and connect to its customers. The company also runs a loyalty program as The Coffee House 101 Club which allows its frequent customers to get discount on products and earn points on purchase of products from any Coffee House outlet. One of the promotional campaigns followed by the company is Shakeup Summer which promotes company’s cold coffee products. Also Coffee House uses its logo on the cups that are served to the customers.
III. SITUATION ANALYSIS
a. Market Analysis
i. Market Summary
Coffee house 101 belongs to the food and beverage service that offers different varieties of coffee such as iced-cold coffee, variety of smoothie, hot coffee drinks, and we also offer pastry menu that completes your appetite. Coffee house 101 is a coffee shop not only for our daily fix of caffeine. You might think it's the cute barista behind the counter, great customer service, or modern interior design, but there are a latte more details a cozy cafe can use to steal customers from their competitors around the corner. Coffee house 101 has collected a series of clever coffee house designs and solutions, and the creative ideas are so out there, we can't get bean-ought of them. From giving away used grounds as compost and never-seen-before coffee shop designs to coming up with alternative syrup names.
b. Industry Analysis
In the restaurant or coffee shop industry, coffee shops are the emerging star. Companies sell many varieties of coffee, such as lattes, espresso, and cappuccino. All varieties of coffee will be available at my coffee shop, as well as all of the specialties, which will be of the highest quality. According to a 2013 survey, however, there has been a 12 percent growth in coffee shops. With hundreds of manufacturers, brokers, suppliers, and retailers, the coffee and specialty beverage business is fragmented.
Unlike the beer/soda sector, which has giant national chains like Anheuser Busch, Pepsi, and Coca-Cola controlling the majority of the market, the coffee and specialty beverage industry does not. In an open industry with such a rapid growth rate, The Coffee House 101 is well positioned to profit on the customer's need for a high-quality product, excellent service, and a reliable business partner. Because of the rapid growth of the gourmet coffee business, as well as new trends in Jet Teas and other specialized beverages, the sector is made up of many tiny players, each focusing on only a few distinct goods or brands at a time. We expect the industry to consolidate as markets evolve, with larger distributors covering a wider range of items in each area.
There are currently no significant national chains with market control in our industry category. There are also just a few products available with exclusive rights to a certain market. While this is true for many products, The Coffee House 101 is working with manufacturers to change that. We not only represent a wider range of products than our competitors, but we also have exclusive rights to many of the products in our portfolio.
c. Company Analysis
i. Focus
At Coffee House 101, we aspire for quality, character and excellence in all we do. We aim to serve the best quality and most interesting varieties of coffees, teas, espresso drinks and accompaniments at all times to everyone. We strive to treat our customers respectfully as our guests; we intend to offer our guests service that is prompt, efficient, friendly, and relaxed. We will provide a pleasant, welcoming environment, and will maintain a clean and attractive coffee house at all times. We want Coffee House 101 to be a great place to work. We aim to create a positive, respectful workplace and to empower our staff to be themselves and to achieve their fullest potential. Coffee House is committed to furthering the spirit and well-being of our neighborhood and the overall community.
ii. SWOT Analysis
Strengths
High Service Culture - Although the coffee house 101 is a quick turned around small business. But its target market and customers require high-quality service like a clean place, washed cups, good sitting arrangements, nice seats, and clean waiters and staffs. It’s because all of these little things give the impression of a healthy environment.
Continuous Sale - Coffee is such a small item that people can make it at home. But they would like to go out with friends to have coffee at some outdoor place. That’s why customers keep coming and going throughout the day, whenever they get time.
Quick & Motivated Staff - The work routine is so simple that the staffs know the steps they have to perform over and over again. Since a variety of customers keep on Coming and going all the time, all these things make our staff motivated. They know that they have to be quick to serve our customers.
Direct Relationship with Customers - Customers physically come to our shop to have coffee. Therefore, it’s a great opportunity for the owner of the staff to connect with the customers and make him/her a regular client.
Weaknesses
Difficult to Estimate Capital & Profit - Profit in the coffee shop business comes in the form of bits and pieces. Therefore, we have to be very vigilant in accounting and math. Only then you would be able to keep your accounting books in order.
Less Market Share - There’s a limit to acquire a market share in this business. It’s because we’ve limited seating arrangements and limited supplies to serve several customers. You can’t go beyond that. Therefore, you can’t have the market share at a certain limit.
Cost Disadvantage - There’s a very slight margin between the profit and cost, and we have to manage everything in between. We also heavily rely on the supplies of our suppliers. If they keep on providing us the ingredient on time at a cheap price, our business would keep on running well.
Less Market Data - When you’re launching a coffee shop business in a new market, then you need data to check the statistics. It’s very difficult to collect the market data, especially in this niche.
Opportunities
Developing a Direct Relationship with Customers - The good thing coffee shop 101 is that, it provides you an opportunity to establish a direct relationship with customers face to face.
Innovation & New Techniques - Since you have to do things manually, therefore, you should keep on trying innovative techniques to increase the performance of the business. It could in the form of a new product’s taste, different seating arrangements, changing work routines, etc.
Threats
Difficult to Maintain Cash Flow - It’s difficult to maintain the same cash flow every day in the coffee shop business. It’s because of several reasons like weekends, holidays, strikes, protests, pandemic, etc. If customers keep visiting our shop for coffee, it’s good business. But every day isn’t the same day in this line of work.
Price Sensitive Market - Coffee is such a product that you can’t raise the price at a certain limit. If you do that, people would stop coming to your shop for coffee at being too expensive. Soon you’ll run out of business.
Costly Supplier - Suppliers know that your business completely relies on their support. It gives them an upper hand, and they raise the prices of daily supplies whenever they want.
After a detailed SWOT Analysis of a coffee shop business, we have concluded that it’s good and it can run well in the volatile market. If the owner of the coffee shop is smart and knows how to capitalize on strengths and take advantage of the opportunities.
Then it’s good. But threats are also real; you should have a plan to overcome threats.
d. Customer Analysis
i. Primary Competition
Our main rival in Urban is the Don Calisto, which is also a coffee shop. They serve pastries and coffee at a modest rate to everyone who comes to visit.
1. Product/Services
A diverse range of low-cost sweets and coffee products.
2. Estimated Projected Sales (Month)
Products
Estimated Sales
Pastries
Php 10,000 – Php 15,000 per month
Coffee
Php 15,000 – Php 25,000 per month
Juices
Php 1,000 – Php 5,000 per month
ii. Secondary Competition
Tents and karenderias are our secondary competitors. They serve milk tea, burgers, fries, topsilog, and lomi in a low-cost setting that is accessible to everyone who desires these foods.
1. Product/Services
A large range of low-cost ready-to-eat foods.
2. Estimated Projected Sales (Month)
Products
Estimated Sales
Milk tea
Php 6,000 – Php 7,000 per month
Burger
Php 1,000 – Php 1,500 per month
Fries
Php 900 – Php 1,500 per month
Tapsilog
Php 700 – Php 900 per month
Lomi
Php 750 – Php 1,000 per month
e. Competitive Advantage
No other wholesaler in the industry can match our selection of products and complete service delivery. Because we focus entirely on high-quality distribution and customer service, we are better positioned than our primary competitors to capitalize on the growing demand for coffee and specialty beverage supplies. The Coffee House 101 also has exclusive distribution rights to Good Cow's concentrated milk/dispensing technology, in addition to the wide range of items we provide. No other vendors provide this product in our market right now.