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Products and Service Cafe Blends in Dallas - Essay Example

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This essay analyzes Café Blends that is a startup Coffee shop in Dallas, Texas which aims to capture the loyalty of coffee lovers by blending traditional coffee experience in a concept store that is both modern and unconventional. It aims to be the coffee shop of choice in Dallas, Texas…
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Products and Service Cafe Blends in Dallas
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? Running Head: Cafe Blends Business Plan Cafe Blends Business Plan I. BACKGROUND Cafe Blends is a startup Coffee shop in Dallas, Texas which aims to capture the loyalty of coffee lovers by blending traditional coffee experience in a concept store that is both modern and unconventional. It aims to be the coffee shop of choice in Dallas, Texas. The thrust is to provide coffee lovers with new and exciting blends, served in a cozy and homely atmosphere, utilizing great customer service. The mission is to be able to satisfy the discriminating tastes of the coffee lovers in the city. Its business objectives are as follows: 1. To be able to launch and operate Cafe Blends with the aid of a bank loan amounting to $ 250,000 with a payback time of one year. 2. To create a unique menu of in house coffee blends that would propel the brand to popularity, beating the market of the already established coffee shops in the city. 3. To expand with two more stores in neighboring cities at the start of its second year. II. COMPANY OVERVIEW Cafe Blends will operate its first coffee shop along the Business District of Dallas, Texas. It will have fully operational dine in area with 10 indoor tables, four sets of which are accentuated with couches, and four outdoor tables. The store will be furnished in such a way that the atmosphere will be cozy and homely, giving its customer a relaxed feel. The thrust is to service healthy coffee by providing blend options to the market, served by the best service crew in the city. Management plans to capture the target market by segmenting its menus, basing on the country source of the raw materials. Coffee sources will vary. There will be coffee to be imported from Brazil, as well as from Asia. Brazil, being the world’s largest coffee producer (Third World Network 2010), is known for its good coffee ingredients. III. PRODUCTS AND SERVICES The Product Development Team will be tasked to conduct researches to ensure that the raw materials being exported will serve the needs of the company to create a menu that will be both exotic and familiar to the target market. On top of this, there will also be specialty house blends. Coffee products include latte, decaf, cold coffee and frappe. Moreover, apart from coffee, specialty tea and pastries will also be served. The menu will be a dynamic one, with a specialty drink and pastry for the day to be highlighted in the menu board. Initially, there will be coffee and tea (both hot and cold), and pastries that would complement the drinks. Eventually, other snack products such as cold sandwich and pasta will also be offered. The diversity of the products will be the key in obtaining loyal customers. Customers will be able to satisfy their cravings for good food at Cafe Blends Coffee Shop. Management is committed to deliver best healthy food in a convenient location using the excellent customer service. Cafe Blends will also offer reasonably-priced products compared with the other coffee shops in the area. IV. MARKET ANALYSIS AND PLAN The primary target market is the coffee lovers, 18 to 40 years old, who are either at the last years in the university or already embarking on a career. This group needs coffee and complementary food as both for nurturing and as a tool for social activities. The older students may need coffee as an aid for their studying needs, or a place to stay while they prepare for their homework and studies. With their limited time and budget, they will also look a place that offers reasonably prices and with good service. The young professionals market will also be a target market, as they need to socialize and find comfortable places to meet up with friends. They may also need a place where they could hang out, check on their laptops or just chill. Cafe Blends aim to cater to their needs by ensuring a good cozy atmosphere conducive for small talk, quiet reading or for relaxation. Moreover, the healthy options are perfect for this group of people who are also conscious of the food they take. They will express preference for healthy drinks and food without sacrificing their cravings for a good cup of coffee. As a startup company, Cafe Blends will rely on non traditional media and below the line advertising to make its presence known in the market. There will be very minimal above the line advertising. There will be merchandising activities along nearby roads and villages using announcement banners and streamers where applicable. These materials shall already be in full display two weeks prior to launch. The internet will be an important tool to captivate the market. There will be an official website for the company which will feature the menu choices. A coffee lovers club will also be launched simultaneously. This club will aim to provide privileges to its members. To become a member, customers should be able to meet the minimum purchase requirements. Members are entitled to obtain materials such as limited edition shirts and other items. They will be given privilege cards for them to use while they are in the store. There will also be loyalty programs to encourage the customers to return for next day purchases. Periodic promotional programs such as raffle and discounts will also be implemented. There will also be thematic celebrations such that customers will be given value added products and service in celebration of certain occasions such as Thanksgiving, Christmas, Valentines and the likes. V. MANAGEMENT Cafe Blends operates under sole proprietorship, and the owner will serve as its Chief Executive Officer overseeing operations and support teams. He will employ the services of one Finance Officer to directly assist him with the Finances of the store, and one Marketing Officer who will manage the advertising campaigns and needs of the store. There will be one store manager who is in charge of daily store operations, one barista who will manage the coffee blends, one chef/ baker who will plan and cook the pastries. There will be a total of two full time staffs and eight part time staffs to provide assistance backroom (kitchen) and dine in areas. There will be a chief Barista who is in charge of creating the signature ‘Cafe Blends taste’ in all its product lines. The Chef/ Baker, on the other hand, is in charge of preparing the food and pastries. He will have a daily regular menu that he will adhere to. He is also in charge of developing the menu to eventually diversify and offer more snacks that would complement the coffee products. Together with the Barista, he is in charge of Product development, and would be given support in terms of research and training. Two full time staff will act as senior personnel rendering service to the customers. They will be deployed on a different shift schedule. Together with the part time staff, they will be the front liners who will conduct sales, take orders and deliver the food to the tables. They will also be trained to ensure that they perform the right services to the customers. VI. FINANCIAL STATEMENT Cafe Blends will need to rent a space for its store operations. To achieve its desired look, the store will also have to be renovated and with the help of an Interior Designer, will be arranged to achieve a minimalist look integrated with wooden fixtures and furniture. Other assets for acquisition include baking and bar equipment, kitchen equipment, and dining equipment. Advertising expenses include design and production of merchandising materials; tie up fees, projected sponsorship and talent fee costs. Store Space Rental (Inclusive of first six months rental) $ 12,000 Store Renovation $ 80,000 Store Equipment and Furniture $ 80,000 Advertising and Promotions $ 30,000 Permits and Licenses $ 5,000 Initial Stocks Purchase (Raw Materials) $ 20,000 Other Expenses $ 23,000 TOTAL $ 250,000 VII. SWOT ANALYSIS 1. Strength Cafe Blend’s unique and diverse product line will prove to be the country’s strength. It will not adhere to traditional coffee, but will introduce tastes and blends from other parts of the world. 2. Weakness Competition is very stiff and other coffee shops implement various marketing strategies to get more customers and sustain their existing ones 3. Opportunities The fact the coffee continues to be the leading favorite beverage across all age groups serves as an opportunity for the company 4. Threat The emergence of more and more coffee shops is the greatest challenge that Cafe Blends will face VIII. CONCLUSION Coffee remains to be one of the most preferred beverages anywhere in the world. In the US, it is estimated that 50% of the total population or approximately 150 Million Americans drink coffee in any form, be it espresso, cappuccino, latte or cold coffee. Moreover, among these coffee aficionados, the average consumption is 3.1 cups per day (Coffee Business Statistics Report 2011). Coffee is known to have health benefits. Not only an anti-oxidant, coffee and aids in achieving better mental performance (Positively Coffee 2010). Clamor for this type of beverage is very high, allowing coffee shops to thrive in spite of the growing competition in the market. Knowing these, the Cafe Blends owner and management team is confident that with the right marketing mix, the business will find its niche market in Dallas, Texas and eventually in other neighboring cities as well. Reference List Brazil: Increase in Coffee Exports Lowers Price. Third World Network. Retrieved November 9, 2011. http://www.twnside.org.sg/title/coffee-cn.htm Coffee Business Statistics Report. E-Imports. Retrieved November 9, 2011. http://www.e-importz.com/Support/specialty_coffee.htm Coffee Throughout the Day. Positively Coffee. Retrieved November 9, 2011. http://www.positivelycoffee.org/%2ftopic_performance_statement.aspx Stella’s Gourmet Coffee and Such. Retrieved November 9, 2011. http://www.stellascoffee.com/ Read More
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