Introducing Roffee: A New Café Essay Offering A Unique Rum-Coffee Blend.

Challenges in Introducing 'Roffee' to the Market

Discuss about the Role of Creativity in Opportunity Search.

Process of establishing a new business venture is known as entrepreneurship. There is no for sure guaranty of success of a new business idea. But if all the functions will be performed in effective manner in relevance with setting up a business, chances of success and growth increases. Governments of various countries promote entrepreneur’s innovative and new business ideas with the objective of development of the industries. Ultimately, industrial development will lead the country towards development. In this report, new business idea will be discussed in relevance with providing enriched and leisured experience to its target audience. USP of this café will be “Roffee” which will be made with Rum and coffee.

Primary issue which will be faced in the target market is non-acceptance of their new business idea i.e. “Roffee”. Apart from this, organization could also face certain other issues such as copy of their business idea by existing big players in coffee industry. In order to serve “Roffee” in the target market, organization will require license because without license, alcoholic beverages cannot be served or sold. Further, before serving this coffee to the customers, organization will require to check the age criteria because in most of the countries, government decides age limit for their citizens to consume alcohol. In this scenario, organization requires to check its consumer’s age before serving them “Roffee” in order to avoid legal glitches in its operations (Eppler, Hoffmann & Bresciani, 2011).

Idea of serving “Roffee” in the target market will generate positive outcomes as it is a unique business idea. Apart from this, still there are not much strong coffees available in the market as compared with the demand of the strong coffee. Last strongest coffee available in the market is espresso but the idea of “Roffee” will fulfil that customer’s demand which require strong coffee. It will make consumers more active and refreshed along with this, “Roffee” will increase satisfaction level of consumers in relevance with consumption of coffee.

There are many people who are fond of coffee and to provide various types of coffee to them, exported coffee beans from various countries in which coffee beans are produced and refined. This café will not be similar to other coffee shops like Starbucks, Café coffee day, etc. because new business is providing the best coffee from various parts of the globe to target audience along with the Roffee. In order to make the business idea more effective and innovative, entrepreneurs have decided to set up a unique them for café which could attract the target audience (Chesbrough, 2010).

USP of Roffee and Positive Outcomes

There varieties of coffees from various countries across the globe will be served in order to make their target audience’s experience relished. Famous places across the globe for coffee are Portugal, Finland, Turkey, Malaysia, Australia, Greece, etc. It will serve all those varieties of coffees at one place along with their unique idea of “Roffee” which will increase customer satisfaction.

In initial times, provide discount and other attractive offers will be provided to the target audience in relevance with developing a separate image from its competitors. Apart from this, organization will implement value based pricing technique (Heslop & Nadeau, 2010). Under value based pricing technique, cost of the making coffee plus the value offered to its customers will be added along with a certain amount of profit margin. It is expected that the innovative idea will help the organization to gain competitive advantage as there will be no such café is available in Australian market which are serving “Roffee” yet.

Primary success factor of “Roffee” will be its uniqueness and the freshness which will be felt after consumption of “Roffee”. It will attract those people who love to consumer strong coffee. In relation with this business idea along with a unique variety of coffee, key success area will be those areas where demand for strong coffee is high along with the number of people who prefers to consume alcohol in coffee. The key success factors of the organization and their unique product idea will be varieties of coffee served at one place. Apart from this, consumers will feel more active and relished after consuming “Roffee” due to its unique combination.

It is important for a new business to define its target market at the initial stage only. This is necessary as it plays vital role in success of the new business. Target audience is the group of individuals whose demands will be fulfilled by business. For example: a toy manufacturing firm’s target audience will be children but as children would not be able to take their own decision, secondary target audience will be their parents (Menegaki, 2012). In the same manner, target audience for Roffee will be people fond of coffee, youth, and those people who love to explore new things. Concept of this café is bit unique and in order to accomplish the goals and objectives, appropriate marketing strategies will be used for approaching the target audience in most appropriate manner.  Promotion of Roffee would utilise its USPs and the efforts made for importing varieties of coffee from various places in its promotional strategies. This will help the organization to fulfil its objectives along with the development of distinctive and unique image amongst the target market (Heinonen, Hytti & Stenholm, 2011).

Offering Unique Varieties of Coffee

In terms of analysing feasibility of the new business idea, organization will use various methods such as review, feedbacks, and questionnaire in order to determine the effectiveness of new business idea.

In initial period, this business will start with limited number of employees and for performing the duties of Consultants, Research and marketing & PR, organization will use external sources. This will reduce the fixed cost of the organization as well as the profitability will increase (Luan  & Sudhir, 2010).

Initial period will require certain amount of investment because setting up an effective and distinctive image will require investment in marketing and promotional campaigns to spread awareness amongst the target audience. This will help the organization to make its business feasible as per market environment. Below is the detailed table showing requirement of investment:

From the above table, it can be assumed that organization will be able to recover its cost incurred from the third year and it will move towards profitability, success and growth.

Product: It will provide varieties of coffee from various places and USPs for this café will be “Roffee”. In order to gain competitive advantage and to attract the target audience, it is necessary for the organization to showcase and highlights the unique features in the target market. Coffee and other food items served under one roof are unique and attractive. In relation with promotion of “Roffee”, organization will use discount and offer strategy. This will attract large number of audience and the due to innovative idea of “Roffee”, organization will easily be able to showcase primary features the product (Fan, Lau & Zhao, 2015).

Place: Place of distribution will be selected as per reviewing the market research and the preferable location will be nearby to high densely populated area. Apart from this, the most visited place, market, etc. by Aussies will be selected. This is because place of distribution plays vital role in the success and growth of restaurant, café, hotel, etc. It should be easily approachable for customers, thus, the centralised, easily approachable and attractive location will be selected for opening the café (Zheng, Yang & McLean, 2010).

Price: In order to gain competitive advantage as well as to attract large number of customers, it is necessary for the organization to adopt fair pricing strategy. Along with this, promotion and offer strategy will also be adopted with the objective of providing certain type of discount to the target audience. Value based pricing strategy will be the most suitable strategy in terms of enhancing the demand and market share of Roffee in the target market (Ashkenas, et. al., 2015).

Promotion: Promotion and marketing is necessary to spread awareness amongst the target audience and it plays significant role in reaching to the target audience in an effective manner. Following are crucial promotional techniques that would be adopted:

• Event marketing
• Digital marketing strategies
• Traditional marketing strategies such as television, radio, magazine, newspaper, etc.
• Relationship marketing (Armstrong, et. al., 2015).

Apart from this, organization will promote its customer centric approach. Customer centric approach defines that the customers will be treated in the most appropriate and fair manner. Apart from this, it is an effective tool for developing appropriate customer relations (Gordon, 2012).

Conclusion

From the aforesaid information, it can be concluded that this business idea will fulfil its target audience’s demands and wants in the most appropriate manner. Most importantly, this café is importing coffee beans from various parts of the globe which are specially known for producing and refining coffee. This is an innovative business idea and the speciality of this business is “Roffee” which is made with rum and coffee. It will provide relished experience to the target audience.

References

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.

Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization: Breaking the chains of organizational structure. John Wiley & Sons.

Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range planning, 43(2-3), 354-363.

Eppler, M. J., Hoffmann, F., & Bresciani, S. (2011). New business models through collaborative idea generation. International Journal of Innovation Management, 15(06), 1323-1341.

Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business intelligence through the lens of marketing mix. Big Data Research, 2(1), 28-32.

Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), 122-126.

Heinonen, J., Hytti, U., & Stenholm, P. (2011). The role of creativity in opportunity search and business idea creation. Education+ Training, 53(8/9), 659-672.

Heslop, L. A., & Nadeau, J. (2010). Branding MBA programs: The use of target market desired outcomes for effective brand positioning. Journal of Marketing for Higher Education, 20(1), 85-117.

Luan, Y. J., & Sudhir, K. (2010). Forecasting marketing-mix responsiveness for new products. Journal of Marketing Research, 47(3), 444-457.

Menegaki, A. N. (2012). A social marketing mix for renewable energy in Europe based on consumer stated preference surveys. Renewable Energy, 39(1), 30-39.

Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business research, 63(7), 763-771.