Black & White Coffee Shop (Naim's group)

BLACK & WHITECOFFEE SHOP

BACKGROUND

A. Food and beverages

Charcoal burger Black coffee

B. Entertainment

Live band Stand up comedy

WHERE?

Comercial areas

WHY?

• Earn profit• In trend/high in demand• Offer variety to the market

MARKET ANALYSISA PHASE OF MARKETING RESEARCH CONDUCTED TO

DETERMINE THE CHARACTERISTICS AND EXTENT OF A MARKET.

HOW BIG IS THE MARKET?

• Less than most major coffee shop franchises, but still capable of attracting large amounts of customers.• Revenues: RM 10.5M/year, considerably less than

major coffee shop franchises, but highly successful in Malaysia.• An average of 3 shops in 50 metre-radius in large

cities, average of 2 shops in a small town.

CUSTOMERS

• The majority group: students, workers and foreigners.• The income: RM800-1000/m for students, RM3500+ workers & foreigners.• The location: densely populated areas, most universities' vicinity.

COMPETITORS

• Starbucks Coffee, obviously.• The Coffee Bean & Tea Leaf• DÔME Café.

COMPETITORS, STRENGTH

• Starbucks Coffee: a billion-dollar franchise.

• The Coffee Bean & Tea Leaf: better drinks than Starbucks Coffee, personal preference.

• DÔME Café: good coffee, decent but hearty meals.

COMPETITORS, WEAKNESS

• Starbucks Coffee: price.

• The Coffee Bean & Tea Leaf: marketing.

• DÔME Café: price and marketing.

MARKETING STRATEGIES

Our product

• Drinks: coffee, tea, Italian sodas, smoothies, juice and cocoa

• Deli items: Charcoal burger, sandwiches etc.

• Organic

Sales strategy

• Quality service & products• Friendly staff• Black & White themed interior• Waiters wearing tuxedo

Advertising & Promotional Activity

• Local print and broadcast media.

• Direct mail, discount card.

• Sampling.

MANAGEMENT STRATEGIES

Legal structure

• partnership - share profit - easy to establish - more ideas - cost effective

Roles of members

• Market analyst (Ameer) - study information - reports & presentations

• Manager (marketing strategies) (Yu Xuan) - identify strengths of product - sales strategy - pricing - promotions

• Manager (management strategies) (Nurina) - identify the business' legal structure

- identify the lower and mid-level employees

• Financial planner (naim) - Manage the finances (investment capital, future investment, forecasted sales)

Mid-level employees

• Supervisor• Store manager

Lower level employees

• Barista (important)• cashier• Cleaner • dishwasher• Chef (Chef & sous chef)

FINANCIAL PLAN

FUNDING REQUIREMENTS

• Amount of money needed to start the business.

-300k• Capital invested by owners.• Amount of loans from lenders.

Important Assumptions

• strong economy, without major recession.• No drastic changes in technology.

Break-even Analysis

• An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.

Forecasted sales

• Profit figures over the next 3 years - sale 150k - profit 100k• How to split profit or losses among the

owners -devide equally

REFERENCES• Book -Hamel, G. and Prahalad, C. (1994). Competing for the future. Boston, Mass.: Harvard Business School Press.

• Newspaper article -Coy, P. (2014). Network Admins Wanted: New Ideas for Filling 'Middle-Skill' Jobs. Business Week.

• Internet - the Guardian, (2012). So what does a market analyst do, exactly?. (online) Available at: http://careers.theguardian.com/why-consider-career-in-market-analysis (Accessed) 13 Nov. 2014.

• Blog -Roberts, J. (2014). Brilliant B2B Marketing Examples: What Made These People and Companies Our 2014 Bright Bulb Winners Read more: http://www.marketingprofs.com/opinions/2014/26440/briliant-marketing-examples-from-marketingprofs-2014-bright-bulb-b2b-award-winners#ixzz3IxQfMi2n. (Blog)Marketing Profs. Available at: http://www.marketingprofs.com/opinions/2014/26440/briliant-marketing-examples-from-marketingprofs-2014-bright-bulb-b2b-award-winners (Accessed) 13 Nov. 2014.

• E-Book -Ritson, N. (n.d.). Strategic Management. 2nd ed. [ebook] BookBoon. Available at: http://bookboon.com/en/strategicmanagement-ebook# (Accessed 13 Nov. 2014.)