coffee spot caf

Love at first sip

MBA595
Prof .Ahmed Banafa

Niyam

Patel
Sagar Joshi
Gazi Md Mazba Uddin
Aditya Singh Tongar

15792
13902
12928
13521

CONTENT
1.

EXECUTIVE SUMMARY

2.

COMPANY SUMMARY

3.

SERVICES

4.

MARKET ANALYSIS

12

5.

MARKETING STRATEGY

14

6.

MANAGEMENT SUMMARY

16

7.

FINANCIAL PLAN

17

EXECUTIVE SUMMARY
Vision :-

Our vision is to bring out people with diverse interest & background together.
Mission :-

Our mission is to provide friendly ,comfortable atmosphere where the

customers can receive quality food , drinks and services at a reasonable
price.
Objective :Customer

satisfaction and customer delight

Great friendly customer relationship
Turning profits from the first month
Maintain a 65% gross margin

Gazi

COMPANY FUNDING
Funding

for our company comes from bank

Loans and also our own investment
Obtaining licenses and permits services
Totaling $ 1,13,193
Promotional expenses $43,000
Consultants fees $10,000
Insurance coverage at a total premium $7,500

LOCATION
Our

location of coffee shop should be near

to
universities & corporate offices.
For choosing location we are considering
the
rent also.

Service

Description :-

We

have good well trained staff that can

aware of contamination and food safety.
They have clean uniform and also known
there responsibilities towards job and
customer satisfaction.

Products
Espresso Drinks

Americano

Other Drinks

Breve

Cappuccino
Brew-Reg./Decaf.

Latte
French Roast

Hot Tea

Mocha
Tour Blend

Chai Tea Latte

Macchiato

Kids Hot Cocoa

Hot Chocolate

Coffees
Daily
Organic
World

Fountain Drinks
Juice

White and Chocolate Milk

Product Continued

Bakery

Croissants

Smoothies

Bagels
Drinks

Fruit

Assorted Brownies and cookies

Coffee

Pie and Cakes by the slice

Jumpin Java

Muffins
Tea

Cinnamon Rolls

Breakfast Sandwiches

Iced

Blended Ice Coffee Drinks

Iced

COMPETITIVE COMPARITON
Coffee

spot Caf will be the first

cyber caf in Fremont CA. It will
differentiate itself from other
ordinary coffee shops in the same
area by providing its customers
with free Internet and computing
services.

TECHNOLOGY
Coffee

spot Caf will invest in high-speed

computers to provide its customers with a
fast and efficient connection to the
Internet. The computers will be reliable
and fun to work with. Jedi Caf will
continue to upgrade and modify the
systems to stay with current technologies.

PAYING

WITH SQUARE
ONLINE ORDERS
DRIVE THROUGH
MOBILE APP
10

MARKET SEGMENTS
Our

coffee spot caf will focus its marketing

activities on reaching the University students and
faculty, people working in offices located close to
the coffee bar and on sophisticated teenagers.
Our market research shows that these are the
customer groups that are most likely to buy
gourmet coffee products. Since gourmet coffee
consumption is universal across different income
categories and mostly depends on the level of
higher education.

11

Categories

Percentages

Students and faculty

55%

Teenagers

15%

Office workers

20%

other

10%

Sales
students and
faculty
teenagers
office workers
others

12

MARKETING STRATEGY
Promotional

strategy

:-

Initial brand awareness of the caf can be done by

conducting brand awareness events in the collages and
distributing advertisement leaflets in the nearby offices
and residential areas.
Once the customers start visiting the coffee. They can be
provided with discount coupons for their next visit, as a
part of the customer retention strategy.

Pricing

strategy :-

we

adopt the cost leadership strategy in order to In order

to maintain profit margin, the non combo attract the
customers. This will be ensured by introducing various
combo packages. products will be sold with higher margins.
aditya
13

Sales

strategy :-

We

will adopt pull strategy, that is attracting

the customer by creating brand awareness
and providing attractive offers.

Referral

Discount will be provided to the

customer.

Free Wi-Fi and a comfortable ambiance.

Discount on special occasions like birthdays,

anniversaries and special occasions.

14

PERSONNEL MANAGEMENT
SUMMARY
To

train the staff for friendly customer services.

Each employee should have product
knowledge and all the other services provided
in the coffee.

15

FINANCIAL PLAN
The

following sections lay out the details of our financial

plan for the next three years.
Start-up Funding
This business plan is prepared to obtain financing in the
amount of USD61,539. The supplemental financing is
required to begin work on site preparation and
modifications, equipment purchases, and to cover
expenses in the first year of operations. This amount is
planned to be repaid by USD15,385 each year by four
years.
Owners investments has already been secured as
follows:
1. USD24,359 of personal savings from owner .
2. USD15,385 from the second shareholder, .
3. USD11,911 in the form of short-term bank loans.
16

Start -up Expenses to Fund

$79,859

Start -up Assets to Fund

$33,335

Total Funding Required

$1,13,193

Assets
Inventory

$2,565

Cash Balance

$30,770

Total Assets

$33,335

Liabilities
Short Term Bank Loans

$11,911

Funds Needed to Raise

$61,539

Total Liabilities

$73,450

Capital
Owner

$24,359

Shareholder

$15,358

Total Planned Investment

$39,744

17

Projected Profit and Loss

Payroll Expense:

The founder of coffee spot caf , will receive a salary of

USD30,770 in year one, USD33,847 in year two, and USD37,231
in year three. Our caf intends to hire six part-time employees in
year one at USD7/hour and a full-time technician at USD13/hour.

Rent Expense:

Our Caf is leasing a 400 square foot facility at

USD2,565/month for a total of 36 months. At the end of the third
year, the lease is open for negotiations and Caf may or may
not re-sign the lease depending on the demands of the lesser.

Utilities Expense:

As stated in the contract, the lessor is responsible for the

payment of utilities including gas, garbage disposal, and real
estate taxes. The only utilities expenses that Caf must pay are
electricity and the phone bill generated by fifteen phone lines;
thirteen will be dedicated to broadband and two for business
purposes.
18

 Marketing

Expense:

Our Caf will allocate USD43,270 for promotional expenses

over the first year. This amount will be used for advertising
in food magazines in order to build consumer awareness .

Insurance

Expense:

Our Caf has allocated USD1,847 for insurance for the first
year. As revenue increases in the second and third year of
business, Our Caf intends to invest more money for
additional insurance coverage.

19

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