New Venture Development

ASSESSMENT 1

Elevator Pitch

The current business is based on coffee cafe under which customers will be provided varied choice for their preference related food. They will be offered great ambiance along with numerous facilities such as playing, working etc. However, the novel concept is that cafe targets all consumers whether old, young, working or students. The unique menu of coffee cafe will be prepared by management of 24*7 Coffee cafe through which buyers can be attracted. In this manner, investors will be attracted towards varied products and services. This in turn firm can effectively attract more buyers and make them able to invest in the new venture. The concept of new business is based on hygiene which targets health conscious people and support them to buy good quality of products and services in the marketplace. Apart from this, additional facilities will be offered along with product which would be supportive in attracting more buyers or consumers. Not only this but online delivery is also available for very light breakfast which reflect unique identity in the marketplace.

The market and its needs

The market needs and its trend can be understood by taking into account several aspects such as customer needs, problem and services addresses etc. This would be effective for cafe to understand requirement of buyers and offer them product and services accordingly. Therefore, different factors are explained as follows-

Customer needs or problem

The issue related to obesity shifts focus of UK people towards hygienic food which aids to maintain their good health. However, the main issue behind obesity is unhealthy life style whereby people face issue in making their daily schedule perfect. Owing to this, it becomes important to shed light on good quality of food and offer a chance to respondents to intake food in accordance with their health and safety (Bell, 2010). At this juncture, it is important to shed light on appropriate quality of food and motivate citizen to take good food for their better health. Apart from this, busy schedule of customers is the main aspect which support the current business to access good quality of services. Hence, it is important to meet their expectations by offering them appropriate kind of products and services. At the same time, 24*7 Coffee cafe also plan to deliver the food at home in convenient packing for students or professionals who do not have enough time to prepare food or spent time in restaurant for purchasing the same.

Furthermore, many of the restaurant offer limited food or drink but the current 24*7 Coffee cafe will seek for the preferences of buyers and then they will be offered accordingly. This shows that firm must have its skilled and competent personnel to meet the expectations of buyers and retain them for longer time span (Burns, 2010). Apart from this, customer need to have product at their place so as to save the time but during the outings they want greater ambiance along with different facilities. Furthermore, customer needs will be understood by conducting appropriate research to understand their preferences and expectations. In this manner, it would be effective to target large number of buyers and offer them desired products and services. In this manner, customer expectations and their need is considered for producing appropriate kind of drink and other eatables for the business.

Target market and its characteristic

The target market of 24*7 Coffee cafe will young, old and professionals as well as students. However, youth and professionals will be the major customers whereby it becomes easy for business to grab their attention and retain them for longer time span. Furthermore, professionals and students will be served at their home as they like to save their time to a great extent. This shows that almost all kind of customers are targeted by 24*7 Coffee cafe which in turn it becomes easy to recover the cost of production and enhance overall rate of return of the business in the marketplace.

Growth, stability and shirking of market

There will be growth of the business with stability of at initial level. Management will think to expand the business in term of disco bar etc. This would the effective to reduce overall risk and increase the customer base. It can be critically evaluated that stability phase will be there with 24*7 Coffee cafe until it start gaining huge profitability. In this manner, it becomes easy for buyers to approach consumers and support them in gaining best quality of products and services with greater ratio of profitability (Dudin and et. al., 2015). Apart from this, all marketing strategies are adopted in accordance with requirement of business so that accordingly growth can be ensured. At the same time, reviews will be taken from customers for specific products which are being offered currently. In this manner, growth of business is derived with the help of continuous improvement in current products and services on the basis of taken reviews and suggestions.

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The Product and Service

There are varied products and services which will be offered to end users such green tea, lemon grass tea and other kind of healthy tea will be offered to cater need of buyers. At the same time, breakfast such as sandwiches and non-vegetarian items will also be offered. In this manner, 24*7 Coffee cafe will have plenty of products and services to targets its buyers. Furthermore, omelettes with fries and pasta as well as several other eatables will be produced along with plenty of dishes. This shows that different products and drinks will be offered by business in order to grab attention of large number of customers (Evans, 2015). Moreover, all related products are offered in vegetable form as well so that tourists from countries like India can be also be targeted., However, several working professional of UK are from different countries who do not prefer non-vegetable food. Hence, variety of food is provided to meet their expectations effectively.

In this manner, hygiene concept is followed in the offered products and services. This is the major strategy to attract more buyers and create sense of achievement among them. This facilitates to shift their focus towards better quality of products and make it possible for buyers to access products offered by 24*7 Coffee cafe. Apart from this, services like fantastic furniture and attractive interior of the business would be effective for working professionals so they can work. However, automatic order processing will be launched with innovation and growth in the business. This made possible only with the help of suitable example so that accordingly firm can be develop its strong database and support all related parties in an effectual manner (Gheorghiu, Gheorghiu and Spanulescu, 2010).

Therefore, selected products and services directly approach potential buyers and it is helpful to retain them for longer time span. This would for future growth of business under which business put efforts to bring continuous innovation ion its products and services. The target customer segment will get benefit out of the company can they can be retained easily. Not only this but uniqueness in current products and services makes it possible for firm to create competitive edge in the marketplace (Horng and et. al., 2013). This proves to be effective to utilize limited resources and create unique identify of the firm in the marketplace. However, initial the cost structure might be higher but later on business will get increase profitability along with coverage of large market. Apart from this, innovation will be brought in the product and services for benefit of target market. Hence, all strategies would be effective for successful operation of 24*7 Coffee cafe.

Alternatives and Competitors

A good business entity that meets the needs of someone or a group of people. We can create new beautiful things or gadgets, it doesn't address the basic needs or desires of the people. Its use for extraordinary purpose. When we trying to initiates a well planned coffee shop there are several motivational sources before opening the new cafe are previous work experience, education or training, personal interests, hobbies and to recognize the market opportunity.

Products and services different from other comparative cafe

Coffee shop needs to offer something new

New and advance elements create a positivity which makes better contribution in business success. New coffee roasting profile, new type of service, a specific novel features should be necessary to improve the company brand image.

Delivering something better to your customers

Coffee is a commodity which uses as daily routine by many offices and businesses so that we can deliver the services on these places with the suitable discount to aware regular services (Kwok and Yu, 2013). We should improve in delivery of services from the existing competitors or substitute within a local area network. Major competitors of cafe are Costa and Straw buck. This may include adding new features, delivering at a competitive price, faster speed, or convenience.

Brand name

Brand name is signature mark of a particular business firm. Name Costa signifies luxury, excellence and perfection. Brand logo also provides the company identity and entire feel of business is warm . Special coffee, tea, juice and hot chocolates although serve best product by best trained staff (Meertens and et. al., 2012). Healthy organic sandwiches, salads and pastries are also provides by the same company to acquire the customers. The prices of all the products are comparatively lower than Costa and star buck cafe which targets all class of customers. Our company don't become price leader its main motto to serve more and more.

Perfect location

Perfect location is exposure, accessibility gain competitive advantage in order to easy transport facility which must be available at any location. High quality and well designed attractive furniture which shows our company brand and theme, Free WiFi to everyone and Children corner. Hygienic coffee beans should be used in order to customer health conscious and services foods (Mohan and Kaushik, 2014).

Utilization of appropriate knowledge management tool. Company mainly focuses on wide target market and maintains the ideal atmosphere comparison to others, Also paste appropriate posters on wall of the infrastructure of the business which shows their products and prices also mention any discount and special scheme program because service is everything and more motivating. minimize costs by maximizing efficiency.

Unique selling points are

• Easy and very much convenient. Cheaper price of products target all the age group of customers.
• Extra services and combo plan with a reasonable rate in order to acquire new customers and retained existing customers. Free WiFi. High quality and well designed furniture which shows our brand and signature theme. Extra and advance healthy organic sandwiches, salads and pastries, which attracts the customers. Better location exposure. Proper and timely services according to the time of order place.

Market entry and supply chain

It can be defined as one of the most important parameter which needs to be taken care by new business. Effective market entry strategy is required to be adopted by new companies in order to penetrate in the market and attract more customers (MuhtaroÄŸlu and et. al., 2013). The new business which is 24*7 Coffee cafe-Home deliveries will be entering the market with completely new and innovative service. The selected business enterprise is well aware of the fact that the competition among food industry has become highly intense. In order to sustain in the market and gain competitive advantage, the new business will be offering services that are highly innovative. Along with this, direct channels of supply will be used by the selected business enterprise. The coffee beans and other products will be imported from different countries of the world. Along with this, the new business will be setting up partnership with farmers for the process of producing the best quality of coffee beans. This will help in supplying best coffee and other related product to customers and enhance the degree of satisfaction. Furthermore, online and offline both the channels will be used for supplying the final product to customers. In terms of the target market, it can be asserted that youngsters and working professional will be targeted. In order to attract customers, effective and aggressive marketing activities will be carried out by the brand (Mullins and Komisar, 2010). Different types of promotional events will be carried out at places such as malls, colleges and public places. Along with this, tools such as digital marketing will be also used with an objective to create more and more awareness among people in the market.

The brand will be opening different stores in various places. This will help in making the shopping or buying experience more convenient for people in the market. The stores will have a complete new and innovative layout which will help in gathering the attention of people in target market. On the other side of this, the new business will also carry out the distribution of its coffee and other related products with the help of online channels (Omar, Ariffin and Ahmad, 2015). Customers in target market will be made available with an option to place order to coffee and other related to product via online. It can be stated that home delivery will be offered to customers by new businesses in order to penetrate in the market and carry out operations in more effective manner. In context of long term plan, it can be stated that the new business will be looking forward to open more and more stores in the country. Along with this, expansion in international market is also planned up by the selected business enterprise. For this purpose, the selected business enterprise will need to lay emphasis on areas such as developing as a brand, enhancing the degree of customer satisfaction and retaining its workers for long term.

The raw material will be directly sources from market such as Brazil and Africa with an objective to provide customers with a rich and more unique taste of coffee. The new company will make its customers available with two different alternative two buy the product and services (Rashid and et. al., 2015). This includes online and offline way of buying coffee and other related products/services. In long term the new business will also seek for becoming a strong brand in the international markets of the world. From the beginning itself, the selected business or new company will be focusing upon carrying out sustainable supply chain practices. It can be asserted that this will contribute directly to the long growth and success of new company. A strategic alliance will be established by the new business with all suppliers in order to carry out smooth flow of supply chain practices in the long run. Along with this, the major suppliers and other related stakeholders will be encouraged to take part in the process of decision making. This will help in developing sense of satisfaction among suppliers and will also results in developing a long term relationship with them.

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ASSESSMENT 2

This assessment covers detail information regarding the product and services along with its distribution channel and all other aspects. This would be appropriate for management of firm to create its strong position with increased rate of return. All elements of CANVAS model are explained as follows-

Customer segmentation

The customer segmentation divides is the procedure to divide overall buyers groups. The target customer covers basis focus on working professionals and youth. Basically their need related to less time and hygiene food is considered. Owing to this, product procedure has been selected accordingly whereby it becomes easy to target the buyers effective and raise their attention towards products and services which are being offered by 24*7 Coffee cafe. This proves to be effective for company to increase customer base. Further, perfect competition market is selected for offering varied range of products and services in the marketplace (Simoneaux and Stroud, 2011). This shows that customer segmentation is decided effectively and accordingly competitive edge of the business is created. In addition to this, business can put efforts to bring innovation in the market so that customers can be retained for longer time. However, this strategy is adopted by using more suitable pricing strategy and grabbing attention of buyers towards unique and new services offered by the business. This reflects that customer segmentation has been decided by using appropriate marketing strategy along with association of unique concept related to hygiene because obesity related issues are shifting focus of youth towards hygienic food. It has already been said that all customers are targeted by the business. Hence, it becomes important to shed light on specific expectations of buyers and met the same by using appropriate strategy. Thus, segmentation has been done by focusing customer needs and type of market under which business will be operate.

Value proposition

There are several coffee shops in London but no specific focus is given for hygiene and varied products and services in accordance with customers. However, the present 24*7 Coffee cafe is offering bulk of benefits together. For this purpose, features of current business is additional facilities such as Wi-fi and calm environment which grab attention of professionals also for their meeting purpose (Sinkovics, Sinkovics and Yamin, 2014). At the same time, focus is laid on different kind of food such as vegetable, non-vegetable and different drinks. This in turn support business to create its unique identify and expand its venture at global level in future time span. Not only this but, uniqueness of business is that it is targeting to all age people with specific need related to hygienic food, time issues and delivery at home and professionals meeting in calm environment. This in turn firm can effectively increase overall rate of return and deliver good quality of services to large number of buyers. Furthermore, 24*7 Coffee cafe is unique among its competitors because it offers several benefit in single service. It can be considered as the key destination for attraction or satisfaction of buyers who prefer to have quality food. So, value proposition is hygiene concept and additional services which offer complete quality food.

Distribution channels

Distribution channels are considered as the most important procedure under which management of the firm tends to deliver its end product among users. However, 24*7 Coffee cafe has its physical outlet to give rich experience for new users related to quality services (Teece, 2010). This unique concept of business attract more health conscious people along with professionals and youth who want to spend their quality time at perfect place. The most important aspect is related to online delivery whereby firm will have its own application which can be uploaded on mobile phone of users. This application make it possible to ping 24*7 Coffee cafe regarding any kind of requirement. Accordingly personnel of firm define or design attractive plan to deliver food in relatively less time span. Apart from this, competent and skilled personnel will be hired in the outlet who can easily understand the requirement of buyers and provide them product and services accordingly. They key personnel will be highly qualified who can also review instant feedback of customers and make them feel comfortable by resolving their queries. However, only two mode of delivery has been selected so as to ensure operation of firm in a cost effective manner. This facilitates to increase its profitability and reduce the cost of production to a great extent.

Customer relationships

Customer relationship is another important element of CANVAS model under which business covers all marketing related activities and promotion of the products and services. It is the common fact that customer relationship cannot be developed without interacting with them. For this purpose, 24*7 Coffee cafe will use internet as the most effective technologies to keep customers informed about special offers and other related information (Trimi and Berbegal-Mirabent, 2012). Furthermore, social media page will also be designed and buyers will be attracted in the same manner. Apart from this, specific site of business will also be updated whereby it becomes easy to approach customers to get their review. At the same time, after online delivery of food product a small and interesting survey can be conducted by firm to ask review from its consumers. In this manner, lacking areas will be explored and buyers will experience very good things or services from 24*7 Coffee cafe. Furthermore, distinct application of corporation of firm is also effective through which it can be in contact with potential buyers and provide them timely information regarding any kind of specific discount. However, regulator customers can get the club card and get discount on purchase of specific products and services. All these strategies are helpful to retain buyers and build good relationship with firm.

Revenue streams

Revenue streams is another important element of CANVAS model which reflects that what will be the sources of finance for current business and how firm will increase its rate of return. Here, 24*7 Coffee cafe will access personal finance and bank loan so as to access cost effective sources and meet the expectations of all related buyers in an effectual manner. Furthermore, revenue streams is promoted by offering specific discount on offers products and services so that customer base can be increased for particular time span. It aids to increase sales turnover and support firm to meet its long as well as short term objectives (Wright and et. al., 2016). At the same time, leasing companies might approached to access machinery used to produce products and services of 24*7 Coffee cafe. It would reduce initial burden of finance and enable firm to approach potential buyers effectively in relatively less time span. Furthermore, sales turnover is increased by adopting suitable marketing strategies and gaining popularity in the market. It is the main reason that cost effective mode of communication is implemented and in the same manner firm can effectively build competitive edge in the marketplace. Apart from this, cost plus mark up price strategy would be adopted so that directly management target to recover the cost of production and increase rate of return in the marketplace.

Key resources

It is common fact that business need to ensure inclusion of varied resources for production of tea and other eatables. These can be done with the help of physical, financial and human resources. All these resources facilitate firm to produce good quality of products and services in the marketplace. Further, competent and skilled employees are recruited whereby it becomes easy to approach buyers effectively. Apart from this, financial sources such as bank loan and personal finance is considered to start the venture. In addition to this, all other facilities and machinery as well a furniture and land will be purchased on the basis of specific plan (Bell, 2010). Hence, all these sources are helpful to start the venture in relatively less time span and meet the expectations of all related buyers. Furthermore, all these key resources contribute towards successful operation of firm through which company can reach to its break even point as soon as possible. It can be critically evaluated that employees associated with the business must be skilled and highly competent. This aspect contribute towards organizational success at the global marketplace. It enables business to meet expectations of all related consumers and accordingly retain all stakeholders such as investors. Therefore, key resources are associated for success of 24*7 Coffee cafe and long run survival with increased rate of return.

Key activities

There are different activities performed by 24*7 Coffee cafe to retain buyers and interact with them. At this juncture, marketing, production and sales related activities are performed by key personnel. At the same time, activities related to motivation and satisfaction of employees is prominent which is made possible by offering them reward in financial and non-financial aspects both. At this juncture, marketing activities are completed by taking into account internet (Burns, 2010). In this manner, internet marketing proves to be effective to approach huge customers and create sense of achievement among them by purchasing different products and services. However, unique page of social media is created wherein customers review the same and like its appropriate updations. In addition to this, sales related activities are supported by marketing only. However, employees motivation is done with the help of suitable work environment and providing them immense support to carry out given task on right time. Apart from this, production procedure is the main aspect whereby firm start operating its business in accordance with set procedure so that customers can be provided the ordered product in less time.

Key partnership

The key partnership of firm will be with farmers who provide coffee beans and other providing fresh vegetables and meat etc. At the same time, retail stores like Tesco and Sainsbury can be approached by 24*7 Coffee cafe to purchase raw material and semi finished goods. However, other related small kiosk can be contacted to offer food in bulk. Therefore, all these key partners support business to approach consumers and offer them products as well as services on right time. Apart from this, van can be contacted for online delivery of food to end users (Evans, 2015). Hence, it is also the effective aspect for attracting more buyers and ensure success of the business in the marketplace with the increased rate of return. Furthermore, key partners forms their contract and accordingly enter into legal relationship to offer their product and services for specific time.

Cost structure

The cost structure of the business will be additional of direct and indirect cost. This would be done by adding all the expended incur to purchase the land, raw material and rent, taxes and other related expenses. Here, basic income statement will be prepared for two to five year so as to record all related information effectively and meet the expectations of all related buyers (Gheorghiu, Gheorghiu and Spanulescu, 2010). Moreover, break even analysis will be done by checking the income of the firm against the expenses generated for particular financial year. This proves to be effective to derive exact amount of profitability or loss occurred to business. Hence, a very simple cost structure of the business is followed under which pricing strategy is done on the basis of perfect competition market. This tends to create competitive edge of the business by meeting expectations of all related parties and recovering the cost of production for 24*7 Coffee cafe.

CONCLUSION

The aforementioned business plan is appropriate to start new business under which corporation can access cost effective sources of finance and accordingly provide good quality of services to all related buyers. This enables business to retain its consumers as break even point will be reached in less time span. It can also be said that uniqueness in current product and services is the major aspect which make it possible to create competitive edge of the business. Furthermore, application of CANVAS model make the business task more easier and support management to conduct all operation activities effectively.

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REFERENCES

• Bell, J., 2010. Student business plan competitions: who really does have access. In Small Business Institute National Conference Proceedings. 34. pp. 18-25.
• Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan.
• Dudin, M.N. and et. al., 2015. The innovative business model canvas in the system of effective budgeting. Asian Social Science. 11(7). pp.290-296.
• Evans, V., 2015. The FT Essential Guide to Writing a Business Plan: How to win backing to start up or grow your business. Pearson Higher Ed.
• Gheorghiu, A., Gheorghiu, A. and Spanulescu, I., 2010. Target market risk evaluation. arXiv preprint arXiv:1007.1908.
• Horng, J.S. and et. al., 2013. Professional conceptions of creativity in restaurant space planning. International Journal of Hospitality Management. 34. pp.73-80.
• Kwok, L. and Yu, B., 2013. Spreading social media messages on facebook an analysis of restaurant business-to-consumer communications. Cornell Hospitality Quarterly. 54(1). pp.84-94.

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