ZEEMH Business Plan
ZEEMH Business Plan
ZEEMH Business Plan
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Executive Summary
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The Business
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Company Ownership/Structure
Vision
Mission
Values
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Products and Services
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Research, analysis, and background
Market Analysis
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Cooperative alliances
ZEEMH has aligned itself with key players in the industry: Coffee Beverages Industry,
located in Port Melbourne and the specialty Australian Specialty Coffee Association (ASCA).
Both of these organizations are nationally and internationally known for their knowledge of,
and expertise in, the specialty beverage industry. ZEEMH has also formed key alliances with
non-competing experts in Restaurant and Retail markets. Finally, ZEEMH has established
itself within the community through developing relationships with five of the surrounding
Neighbourhood Associations, key developers and planners of the Port Rail Transformation
Project and various City Officials and city Council Members. These alliances will serve to be
conducive to the company's success and marketability.
Strategy
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Risks and assumptions
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The economy isn’t the best right now but it has yet to hurt the coffee industry. The coffee
business as of late has been doing very well. The coffee business is actually rapidly
increasing according to Value line. There is an article that states that Starbucks, a store very
similar to ZEEMH has seen rapid growth in customers and profits over the past few years.
This article shows promise in the market that ZEEMH is in.
The coffee industry is expected to see an increase in growth over the next three years. This
increase is due to the high demand of coffee on top of people living longer which makes the
coffee drinking market bigger and bigger each year. This means that there is room for
growth and new coffee oriented business. Thus our team believe this is especially true to
Port Melbourne where the business been located.
Cost/Benefits Analysis
Undertake a cost/benefit analysis and provide the results of the analysis below.
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Implementation plan
Marketing Strategy and Positioning
ZEEMH Coffee utilizes a focus strategy on its market. By specifically targeting three primary
segments they can cater specifically to their needs.
Young Families
The third targeted markets, younger families, often find that coffeehouse are not ‘kid’
friendly. The company has long term plans to create a combination coffee shop / play area
so that parents and caregivers will have a place to meet with other adults while the children
can enjoy the bounce houses, slides and indoor playground equipment.
The Russet Cup is a gourmet coffee lover’s gem. It is truly one of a kind coffee house
offering outstanding gourmet coffees and blends, served by enthusiastic and knowledgeable
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baristas, in a warm, relaxed environment. It is the place to go to visit with friends or cozy up
in a quiet corner with a good book either from the library or from one of the patron’s personal
E-Books.
The Russet Cup primarily utilizes competition based pricing. The café does not utilize
coupons and discounts (other than opening promotion) because they believe that the most
valuable customer demographic of daily coffee consumers is not influenced by discount
programs or coupons.
Online Advertising – The Russet Cup will advertise regularly on popular social media sites,
such as Facebook. Compared to traditional print advertising, this is a cost effective tactic that
will allow them to reach prospects in a highly targeted way (e.g., based on criteria such as
age, gender, geography, etc.).
Web Site – the Russet Cup will develop a simple Web site, which will provide basic
information about the business, the menu, and links to their presence on the aforementioned
social media channels.
Radio Advertising – During the first six months of operation, and during the busy holiday
shopping season, the business will advertise on local radio stations.
5.5.4 Website
The Russet Cup will have a simple website identifying its menu items of gourmet coffees,
smoothies and pastries, along with the address, map and hours of operation. The website
will also have a calendar of any upcoming events or sponsorships . The site will also have
links to their social media sites – such as Facebook, Twitter, and Pinterest.
The café will also rely on signage and draw to its location. Price Chopper brings 10,000
shoppers weekly to its location.
The Russet Cup will use the following methods to increase sales revenue (as recommended
by Andrew Hetzel on Better Coffee, Better Business):
The menu will focus on the most profitable products sold. The café will always draw
customer attention to the most profitable products.
As warranted, the café will raise prices to bolster brand image. Prices communicate a
perceived value of a product; so if set too low, the customers might assume that the
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beverages are inferior compared to the competition.
Monitor flavoring inventory – Excess flavoring inventory ties up capital and valuable back
room space for storage. The café will utilize 4-6 varieties, including sugar free offerings.
Control waste and theft – audit sales and inventory reports to evaluate ingredient waste due
to inefficient preparation, returned drinks and employee consumption. Retail locations can
easily waste 20% or more of their daily sales these three key categories, which is a
substantial and unnecessary loss.
Monitor and evaluate hours of operation
Run employee sales contests – The baristas are the salespeople and have a great deal of
influence over the customer ordering process. All baristas will have some form of sales and
customer service training to make each transaction active, rather than passive. Sales
contests will emphasize high margin items or cross selling
Appendix
(Optional), collect the data that were used to develop the plan.
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