I.

Statement of the Problem

What marketing approach should Kim and Andres use in opening a coffee
business?

II. Objectives

a.) To be able to decide what kind of marketing approach should Kim and
Andes apply.
b.) To establish a creative coffee shop that will attract the Korean Market.
c.) To trace the advantages of having the best possible mode of business.
d.) To be able to sustain their new business.

III. SWOT
Strengths Weaknesses Opportunities Threats
-Andes have an
experience in
entrepreneurship.

-can cover start-up
funding for
opening the
business

-Kim has an inside
knowledge of the
Korean market and
facts about
business
management.

-University
connections

-No experience
in Food and
Beverages
industry.

-Lack of market
research

-Increase in
purchasing power
because of
partnership

-Coffee market is
still Growing

-Confucian
Values

-Competitors

-Late entry in
business

-Crowded
Market

-Competitive
Pricing


IV. Alternative Course of Action

a.) Franchising

- In franchising there is immediate brand recognition, opportunities are
rapidly expanding through this mode of business. Franchising permits your
company to grow with capital invested by individual franchise owners.
There is low risk in franchising because their business models are already
approved. In todays marketplace, the window of opportunity for a new or
unique business concept closes very quickly. Franchising permits multiple
units to be opened simultaneously, gaining a foothold over would-be
competitors. But there is a limited power of decision making, there is a
need high requirements, and requires high fees and royalties. Such as
payment for franchise and etc.

b.) Independent Coffee Shop (inside campus)

- In independence, there is more control and freedom of decision making.
You can make your own brand and product specifications. Revenues are
only shared by partnership, having a business inside a campus can mean
even more customers, having the nearest possible location to the
students. It is more accessible, available and safe location. Though it is a
risky business model because of new intervention, still, marketers can find
a way to promote their products.

c.) Independent Coffee Shop (outside campus)

- It is where other large business companies can interfere. Rather than
franchising, having your own business means that you are the one in
control, no one tells you what to do. But still, you must accept customers
feedbacks and follow government laws. With the same definition of
independence, having business outside the campus can define a general
market. Which means there are great opportunities but are risky because
of great competitors.

V. Recommendation
- We recommend the second alternative courses of action which is b.)
Independent Coffee Shop (inside campus) because in starting a business
they must focus on a small market for them to be able to sustain their
business and it is more advantage in having a own coffee shop they can
have their own menus.

VI. Conclusion
We therefore conclude that this recommendation can help them to keep
up with other business that are already establish and patronize by the
Koreans. They dont need to find a bigger market for them to be able to
compete with others.
VII. Action Plan
JAN. FEB. MAR. APR. MAY JUNE JULY AUG SEP OCT NOV DEC
Survey
Planning
Lay-out Plan
Building
Buying of
ingredients &
equipment.

Advertising
Opening
Monitoring
Evaluation of
Performance












TRYING TO CREATE A STIR: OPENING
A COFFEE SHOP IN KOREA









Submitted to:
Mr. Francis Arroyo





Submitted by:
Lim, Marjorie F.
Morales, Jeus Angellu M.
Natividad, Anna Rose Y.
Ompoc, Clarisse Ann V.
Patino, John Roy G.
MGT204 - A