Business Plan For Turkish Coffee Shop In Marrakech - Culture Coffee Essay.

Discuss about the Business Plan For The Turkish Coffee Shop.

Every new and successful project needs an inventive business idea. This is the objective while starting a new business project and its success. This report is about the business plan of a new venture of Turkish coffee shop in Marakech. In present time, coffee has grown as an important part of the society. So, there is the huge demand for the people to find a place that suites their taste for coffee. With the opening of coffee shop of Turkish coffee shop in Morocco, people living there can also get the good taste of coffee easily. The Turkish coffee is totally different and unique. So, the name of the coffee shop will be ‘Culture Coffee’ which will be opened in Marakech, the city of Morocco. The coffee shop will provide Turkish coffee, tea and Turkish sweets to the customers. This report focuses on the business plan for a coffee shop that will provide Turkish tea and coffee to the customers. The report includes all the relevant information i.e. business objectives, missions. Guiding principles, key to success etc. related to the coffee shop and its business idea (McKeever, 2016).

The objective of the business is to achieve a substantial income and develop a business and working environment where both employees as well as customers are treated with respect and dignity.

The specific objectives of the business are-

Profit- Enhance the profit and growth in excess of Morocco Dirham 50,000 per year within three years

Customers- Create a strong customer base who will like a relaxed environment where they can ‘hang out’

Employees- Hire competent employees who are committed and loyal for their job role

Mission of Cultural Coffee Café is to bring to market the testiest Turkish coffee by providing real value over other coffee shops in Morocco. High standard of quality and cleanliness will establish a reputation in Morocco.

Culture Coffee Café will be focused on some values such as excellence, leadership, quality products, effective services and customer support by which the café will be able to deal with existing issues and problems in the business. Further, café will also be committed towards the employees by providing them compensation and rewards to make them loyal (Burns, 2014).

Coffee Culture Café needs to stay competitive in the market. There are some key to success and those are discussed below:

Great products-Café will provide standard products at the market prices. That will make the customers loyal so that they return again and again.

Hire quality employees- Café will provide opportunities for the long term career to the employees along with attractive salary. Along with this, café will also provide opportunities for the advancement with long term plans in order to open a second facility.

Covert customers to loyal customers- Café will also try to covert the customers into loyal customers as 40% of coffee drinkers want quality coffee with good taste. This will enhance the expansion of the business (Toor&Dhir, 2011).

Mission

For doing the business in Morocco, it is important to analysis the market environment of the country. By the PESTEL analysis, the situation of market in Morocco will be analyzed effectively (Yükse, 2012).

The kingdom of Morocco, in North Africa is one of the oldest monarchies in the world. Morocco has multiparty political system. Government is supportive for the foreign direct investment. New business in the country needs to pay a tax in the country that is intensely not expensive. Morocco has implemented various labor laws and service regulations. Government of the country is enhancing the pool of skilled labor by providing fund for their vocational training (UK Trade & Investment, 2013).

The economy of Morocco is characterized by macroeconomic stability, and high growth rates over part many years. There are rapidly changes in tourism and service sector that will create various opportunities for the new business in the country. Further, there is grip inflation rate in Morocco and foreign exchange reserves are also strong. In the employment rates, women labor force participation is low as compared to men (Bennani, 2009).

Despite of economic growth, the country is suffering from unemployment and poverty. The socioeconomic hardship drives social unrest and emigration. Further, Morocco is considered as highly collectivistic society as people have long-term commitment in the group in order to extend the relationship. They value the relations and businesses are also run based on relations. There is the hierarchical society and it means that people in the country has adopted a hierarchical process so that everybody can get unique identity. This culture will be helpful for new venture to establish the business in the country.

There is rapid development in the technological environment of the country which is helpful for the business growth and development. Morocco has various reforms of information and communication technology. There are various steps taken by government to enhance the technology in the country i.e. expanding private competition and focus on technical requirements, innovations, access and quality. Country is focusing on e-government and service provision for the welfare of people. 

Morocco is a leading country in ecological and environmental protection. Further, climate change is the factor that can impact on the business. Climate change takes place in Morocco which leads to drought and various risks but government of the country is focused on dealing with these environmental issues.

In Morocco, business laws are affected by French laws. The key principles of drafting and executing the contracts are similar to foreign investors. New business in the country has to face due to various clauses. The country has simplified the customs schedule by imposing tariffs and taxes on imported products i.e. accessories and equipments (Hollensen, 2014).

The café will target three key segments of the customers. The market of the potential customers will be divided on the basis of age and work. By focusing on age, the café will serve the customers from 15 years old upwards. Along with this, in case of profession, the consumers will differ from students, working professionals and tourists. Students spend lots of time in the coffee shops after attending their school and colleges. Employees and working people, who have high or middle earnings, are extremely demanding for cafes where they can have tea and coffee, settle down and make their meetings and schedules. Located in Marakech, the coffee shop will be oriented for serving the tourists also who need quality experiences in coffee (Bickhoff, Hollensen & Opresnik, 2014).

Values

As the target consumers have diverse habits and styles, both occupation and age of three sections are stated. It is analyzed that the age of 15 to 22 comprises students of schools, colleges and institutions of higher education. Student need money daily for hangouts and money is given by their parents. So, theses consumers have high requirement of activities after the school. Along with this, the updated trends and internet have high impact on the consumers. So, they can be easily targeted by the social media and internet marketing (Armstrong & Cunningham, 2012).

Further, target group is the age of 22 to 40. They are businessmen and work full-time in order to generate their income, so they make accurate selection for the specific products and services. Further, they are ready to pay for the quality products and services. Along with this, businessmen are always comfortable while using coffee shops as the places for their business appointments and meetings. Business people are adopting new and high technology day by day so, it will be easy to attract them by TV commercials, magazines and internet. 

Next, the coffee shop will target those people who are over 40 years. Although, they are not target segment but they are also significant. They generally earn stable income. Along with this, they are also willing to pay more for the best quality and better standards that they could get from the products and services. So, coffee is predictable to convey more values to them. They will slowly react to the new technology and trends so; newspapers, magazines and commercials will be efficient ways to target them

Now days, customers are concerned for the quality of the products. If the quality of products will not be good then it will reduce the number of customers come to the coffee shop. The meaning of quality is meeting the needs and requirements of the customers. So, café will provide high quality products to satisfy the needs and requirements of the customers. Culture Coffee Café will use high quality of coffee beans in order to make coffee. So, lots of customers will be attracted by the taste of coffee and come to the coffee shop (Seshadri, 2009).

Further, strength is that Culture Coffee Café will sell sweets and beverages on lower prices. So, the coffee shop will be able to increase the number of sales and revenue. Price is the factor that enhances profitability, sales, market share and eliminates competition. By keeping the prices low as compared to other coffee shops, Culture Coffee Café will be able to earn more profit. If the prices of the coffee will be low then it can also prevent the potential competitors to enter in the market (Payne & Holt, 2008).

Further, Culture Coffee Café will also provide online services to the customers. Customers will be able to search any beverages or products in the shop through online. The advantage of online services is that it saves time and cost. For instance, customers do not need to come to the café and search for the products by catalogue or menu. So, it will reduce the driving cost of the customers. The webpage of the café will include the list of products with prices.

Market Environment

The weakness of Culture Coffee Café is that it is not popular or famous as the coffee shop is new in the market. So, it will affect that the customers do not have more information about this coffee shop. Along with this, initially coffee will not have good brand name and will lose many customers. The reason is that coffee shop does not have various resources and enough experiences for the improvement.

Other weakness of Culture Coffee Café will be losing customer loyalty. Coffee shop is new in the market and at the initial stage; there will be the lack of loyal customers. It is due to changing taste and preferences of the customers. Customers always try to find out alternative products and their expectations are increasing continuously. So, the concept of loyal customers is very crucial for the café.

Coffee drinking is very popular in Morocco amongst the young generation, basically those who come to spend their vacations. Most of the coffee is consumed by the tourist. So, there will be opportunity for the coffee shop to attract the tourists. Further, the café can also cooperate with various suppliers in order to provide good quality of tea and coffee (Joshi, 2009). In the country Morocco, people have ability to consume the quality products. Along with this, there are various coffee shops and their resources and technology can be shared with the Culture Coffee. By this, café can learn more from other coffee shops. The area of coffee shop can attract more customers and that will create a business opportunity for Culture Coffee café (Lim, Machado and Iglesias, 2015).

Global market for the business of coffee is high competitive. Culture Coffee Café will face high level of competition from the overseas competitors. There are lots of competitors such as Costa and Starbucks in the coffee market. They have enough resources, modern technology and more experience. In such circumstances, it is difficult for the café to capture the market share in short time. Further, there are various creative coffee shops that can also reduce the loyal customers for Coffee culture. Throughout all the drinking market, there are various substitutes like milk tea, bubble tea etc. So, these substitutes can become threats for Turkish tea and coffee (Mai, 2014).

Culture coffee café will be a well-resourced roasting division providing to the particular requirements of the customers. The process will be done by the skilled and experienced people so that high quality coffee can be provided to the customers. The most recent technique will be available in order to maintain the consistency and to meet the demanding specifications of the coffee consumers (Kursunluoglu, 2014).

Culture Coffee café will provide wide range of products i.e. Turkish tea, coffee, sweets and beverages etc. in summer, frappe will be in the product list as it is the best selling product among the customers. Young customers will favor it. In winter, hot coffee will be liked of the customers. Along with this, the merchandising will include funky stuffs like caps and t-shirt etc. So, key products of the café will be hot coffee, cold coffee, tea, smoothies and beverages.

Key to Success

Culture Coffee café will use premium pricing strategy in order to attract the customers in the market. The target customers of the café are businessmen with high salary and tourists with high living standard. As compared to high prices, they focus on high quality products and first class services. Café will analyze the pricing strategies of competitors. So, the prices of Culture Coffee café will be high as compared to most of the competitors.  Along with this, café will also provide some offers and discounts to the customers, which may catch their eyes. For the loyal customers, café will provide 20% discount on all the products. Children and women will also have some special services (Chakravarthy& Coughlan, 2011).

The strategy of Culture Coffee Café is to place the café in those locations from where the customers can be targeted easily. This is a key factor to determine the success of a retail chain. The café will seek to target the customers with the intentionally located stores. The stores will be generally located at high streets, stations, near colleges and family entertainment centers etc. Further, Culture Coffee café will also provide delivery services within 3 km. if the customers do not have time to visit the store, then they can make a phone and receive the coffee and other products within one hour. With the help of internet, customers can also place their order online also. For this, café will provide electronic coffee and gift cards (Baraban& Durocher, 2010).

Being a new venture, coffee house needs to promote itself by various media tools. There are various methods and ways by which café will promote its products in Marakech.

Online advertising- The coffee shop will promote its products frequently on various trendy social media like FaceBook. Rather than long-established print media advertisements, the online media tools will be cost effective tactics that will let the coffee shop to reach the prospects in the highly targeted way i.e. based on the factors like age, gender and geography etc (Yu et al, 2016).

Website- Culture Coffee will also develop a simple website that will give essential information about the company, products, catalogue and the links to the existence on various social media sites and platforms. The café will develop the website that will include all the information related to product offerings i.e. coffee, tea, smoothies and pastries along with map, address and time of openings. Further, the website will also have the chart of future events and sponsorships. The website will also provide links to its social media sites i.e. Twitter, FaceBook and Pinterest (Basil, 2011).

Sales strategy- Culture Coffee will also use some methods to enhance the sales and revenue. The menu will follow on the most advantageous product range. For this manner, the café will always try to grasp the attention of consumers to the most profitable products. Further, the café will increase the prices of the products to improve the brand image. Prices basically communicates about a assumed value of the product so, if the café will keep the prices low, then customers might perceive that the products are inferior as compared to the competition (Baroto, Abdullah & Wan, 2012). Along with this, coffee shop will focus on the flavoring inventory and for this; it will utilize 4 to 6 variables including sugar free products. The salespeople have great impact over the ordering process of the customers. All the salespersons will have some form of sales. Customer service training will be provided to them in order to make each transaction active. They will also focus on high margin items or cross selling (Terpstra, Foley &Sarathy, 2011).

Target Customers

Manager will be hired for the full time job role in order to manage daily activities of Culture Coffee. The candidates who have three years of managerial experience would be preferred. The person will be responsible to managed the employees, order raw material, develop strategies for marketing, deal with various suppliers and maintain daily operations of café. Profit sharing arrangements for the managers might be considered on the basis of first year operational results.

In the selection of employees for its new business, the company will use various staffing and hiring methods. In starting of first month, the managers will be in the workforce and he will hire distribution people and customer service people. For the hiring process, café will adopt some internal and external methods. The advertisements will be published on the newspapers and various job portals. By these resources, organization will hire people for daily operations. Along with this, Culture Coffee will also hire programmers and exert in information technology in order to develop the website of café. It is a plan that will also comprise the pay arrangement of the staff (Muturia&Oeba, 2012).

Culture Coffee will also provide home delivery facility to the customers.. Café will tie up with the familiar delivery and dispatch rider organizations in order to deliver the products on time. It is obvious customers are using internet and they will expect fast delivery of the products. So, by having various distribution centers, café will be able to enhance the delivery times for the products. Café will not impose delivery charges. Along with this, café will also form right partnership with the distributors that can improve supply chain management of café. So, it will adopt an efficient and systematic distribution system and supply chain (Banerjee &Soberman, 2013).

The objective of Culture Coffee is to provide Turkish coffee, tea and beverages in the city Marakech.

Culture Coffee will acquire various start-up costs. The costs will comprise web development, office supplies, permissible cost for the expansion of business, telephone fixing, projection for stock up raw material, laptops and computers with software like internet connection, Microsoft and laser printer etc. (Pardalos & Tsitsiringos, 2013). The financial projection for the start-up costs is given below:

Expenses for start-up		Amount in Moroccan dirham
Official Charges		3000
Stationery expenditures		500
Website creation		15,000
Total Start-up Expensitures		18500
Start-up Assets    Compulsory Cash       Long term Assets      Current Assets		70000 3500
Total Assets		73500
Total required fund		92,000

In order to introduce this new venture of coffee shop, there will be an efficient financial plan that that will be helpful in managing the flow of fund.

Culture Coffee café
								Profit & Loss Statement
			Amount (dirham)
			Year 1		Year 2		Year 3
A.    Amount of sale			189397		208336.7		229170.37
Direct Cost of Sales			56819		62500.9		68750.99
B.     Cost of Sales			56819		62500.9		68750.99
Gross Profit (A-B)			132578		288620		317482
C.    Operating Expenses							0
Wages			157000		174000		191400
Lease			8400		8400		9240
Insurance			1800		1800		1980
Utilities			1500		1500		1650
Depreciation			636		636		699.6
Payroll excises			23550		26100		28710
Sales and promotion and Other operating cost			10800		9200		10120
D.    Total Operating charges			203686		221636		243799.6
Profit Before Interest and Taxes			-71108		66984		73682.4
EBITDA			-70472		67620		74382
Taxes			0		20095		22104.5
Net Profit			-71108		46889		51577.9
Net Profit/Sales			-0.3754		0.1137		0.12507

The projected balance sheet includes all the important assets and liabilities of café. The projected balance sheet of the café is given below.

Culture Coffee Café Balance Sheet Amount (Dirham) Assets Year 1 Year 2 Year 2 Current 17,091 18,800 20,680 Assets for Long-Term 12,563 13,819 15,201 Total Assets 29,654 32,619 35,881 Liabilities 0 Total Liabilities 11,963 13,159 14,475 Total Capital 0 0 Total Liabilities And Capital 9,658 10,624 11,686 Net Worth 17,691 19,460 21,406

In order to implement all the strategies and operations in the new business idea, café will also make a time table that will consist of all the important operations and time for the end. The time table will also help the café to complete all the business operations in the timely manner. This will comprise various activities i.e. setting up office, business plan completion, appointment of the employees at initial stage and website creation. Along with this, this will also be an important part for the continuous improvement and performance of the business.

Activity	Start date	Ending Date	Concerned Authority	Concerned section
Formation of business plan	1-4-2018	1-8-2018	Marketing Manager	Promotion Division
Office set up	1-8-2018	1-12-2018	-	Proprietor
Development of website	1-12-2018	1-1-2019	Managers	IT division
Recruitment of personnel	1-1-2019	1-4-2019	Human resource manager	HR Division

So, the above table will be helpful for the organization in providing the products i.e. Turkish tea and coffee effectively. For the new business venture, website creation is the significant process in order to attract more and more customers. Attractive and creative website will be developed to attract the customers (Gruca&Rego, 2009).

Conclusion

Thus, the business plan of Culture Coffee Café includes all the relevant information that is required for introducing a new business. It includes all the details i.e. marketing, operations, financial plan and implementation plan for the coffee shop. The financial plan of the coffee shop consists of projected balance sheet and profit and loss statement. The coffee shop will also provide the products by e-commerce website also. In current business world, people are much concerned about quality products, so quality tea and coffee will be provided at the affordable prices. This business plan will be effective for the café and it will be helpful for the café to develop its strong customer base in Morocco.

References

Armstrong, G., & Cunningham, M. H., (2012), Principles of marketing, Australia: Pearson publication

Banerjee, S. and Soberman, D., (2013), Product development capability and marketing strategy for new durable products: International Journal of Research in Marketing, 30(3), pp.276-291

Baraban, R. S., & Durocher, J. F., (2010), Successful Restaurant Design, USA: John Wiley & Sons

Baroto, B., Abdullah, M. & Wan, H. L., (2012), Hybrid Strategy: A New Strategy for Competitive Advantage: International Journal of Business and Management, 7(20), pp. 1-14

Basil, M., (2011), Marketing and social enterprises: implications for social marketing: Journal of Social Marketing, 5(4), pp.285 – 306

Bennani, T., (2009), Morocco Franchise Market Information: U.S. Commercial Service, Casablanca, Morocco.

Bickhoff, N., Hollensen, S., &Opresnik, M., (2014), The Quintessence of Marketing: Strategic and Operative Marketing Planning—Segmenting, Targeting, Positioning. pp. 47-11

Burns, P., (2014), New venture creation: a framework for entrepreneurial start-ups, USA: Palgrave Macmillan

Chakravarthy, B., & Coughlan, S., (2011), Emerging market strategy: innovating both products and delivery systems, 40(1), 27-32

Gruca, T. S. &Rego, L. L., (2009), “Customer Satisfaction, Cash Flow and Shareholder Value,” Journal of Marketing, 69, 115–30

Hollensen S., (2014), Global Marketing, (6^th), Harlow: Pearson Education Limited

Joshi, A. W., (2009), Continuous supplier performance improvement: Effects of collaborative communication and control: Journal of Marketing, 73(1), 133–150

Kursunluoglu, E., (2014), Shopping centre customer service: creating customer satisfaction and loyalty: Marketing Intelligence & Plan, 32(4), pp.528-548

Lim, M., Machado, J. and Iglesias, O., (2015), Brand, identity and corporate reputation: Marketing Intelligence & Plan, 33(2)

Mai, L., (2014), Consumers' willingness to pay for ethical attributes: Marketing Intelligence & Plan, 32(6), pp.706-721

McKeever, M., (2016), How to write a business plan,Nolo Publications.

Muturia, J. M. &Oeba, L. K., (2012), Strategic planning, planning outcomes and organizational performance, University of Nairobi

Pardalos, P.M. and Tsitsiringos, V., (2013), Financial engineering, E-commerce and supply chain (Vol. 70), Springer Science & Business Media.

Payne, A., & Holt, S., (2008), Diagnosing Customer Value: Integrating the Value Process and Relationship Marketing. British Journal of Management, 12 (2), pp 159 – 182

Seshadri, S., (2009), Sourcing strategy: principles, policy, and designs, India: PHI Learning Pvt. Ltd

Terpstra, V., Foley, J., &Sarathy, R., (2011), International marketing,Naper Publishing

Toor, T. P. &Dhir, T., (2011), Benefits of integrated business planning, forecasting, and process management: Business Strategy Series, 275-288

UK Trade & Investment, (2013), Doing Business in Morocco, accessed on 7^th March 2018 from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/303020/Doing_Business_in_Morocco.pdf

Yu, Y., Wang, X., Zhong, R.Y. and Huang, G.Q., (2016),E-commerce logistics in supply chain management: Practice perspective: Procedia CIRP, 52, pp.179-185.

Yükse, I., (2012), Developing  a  Multi-Criteria   Decision   Making   Model   for   PESTEL Analysis: International Journal of Business and Management,7,24, pp. 56-57