Bachelor study program

Business administration
Full-time, group 1VA

Islam Namozov
Rustam Rustamov
Javokhir Yuldashev
Asadbek Ulug’bekov.

Riga 2020

Contents.
1
Table of content……………………………………………………………………………….2

Introduction…………………………………………………………………………………….3

NACE classification………………………………………………………………………..................................4

Part 1 (Products)

Industry………………………………………………………………………………………………………………4-
6

Products……………………………………………………………………………………...................................7-
10

Part 2(General characteristics of industry)

Barriers to entry…………………………………………………………………………………………………….11

Barriers to exit………………………………………………………………………………………………………11

Key success factors……………………………………………………………………………………………….11

Industry trends and long-term perspectives………………………………………………………………......11

Traditions in given area…………………………………………………………………………………………12

Use of resources……………………………………………………………………………………………………12

Regulatory framework……………………………………………………………………………………………...13

Stability, specifics of demand……………………………………………………………..............................13-14

Part 3 (Competitor`s analysis)

Direct competitors………………………………………………………………………………………………14-16

Indirect competitors……………………………………………………………………………………………….16

Part 4 (Statistical data)

Statistics…………………………………………………………………………………………………………......1
6-17

Part 5 (Opportunities and threats)

Opportunities……………………………………………………………………………………………………….18

Threats………………………………………………………………………………………………………………19

Conclusion………………………………………………………………………………………19

2
 Introduction

The business idea:

LAX coffee bar is determined to become a daily necessity for local coffee addicts, a place
to dream of as you try to escape the daily stresses of life and just a comfortable place to
meet your friends or to read a book, all in one. With the growing demand for high-
quality gourmet coffee and great service, LAX will capitalize on its proximity to the
University of West in Uzbekistan, campus to build a core group of repeat customers. LAX
will offer its customers the best prepared coffee in the area that will be complimented
with pastries, as well as free books that its patrons can read to enjoy their visit.

The reason for choosing it:

LAX will make its best effort to create a unique place where customers can
socialize with each other in a comfortable and relaxing environment while
enjoying the best brewed coffee or espresso and pastries in town. We will be in
the business of helping our customers to relieve their daily stresses by providing
piece of mind through great ambience, convenient location, friendly customer
service, and products of consistently high quality. LAX will invest its profits to
increase the employee satisfaction while providing stable return to its
shareholders. Moreover, UZB developing more and more dramatically

Methods used in the industry and product analysis:

 Store design that will be both visually attractive to customers, and designed for
fast and efficient operations.

 Employee training to insure the best coffee preparation techniques.

 Marketing strategies aimed to build a solid base of loyal customers, as well as

 maximizing the sales of high margin products, such as espresso drinks.

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 NACE classification.

1. N (Administrative and support service activities)

-77 (High quality coffee.)

2. I (Store and Food Service Activities.)

-I.56 (Food and beverage service activities.)

-56.2 (Event catering and other food service

activities.)

-56.3 (Beverage serving activities.)

3. M (Professional customer service

Activities.)

-M.72 ( Getting knowledge regarding coffee )

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 Part 1.

The view of LAX

Area: Uzbekistan, Tashkent.

The best location has been chosen in the center of Tashkent where huge amount of people visiting
5
Customers: Students, employees of the company and coffee
lovers.

6
 Products.
№ Name Needs or wants to be satisfied in the Characteristics Target Specific
market group comments
1. Coffee Needs: All types of roast are should If you pick up a handful All students In Uzbekistan
beans be available and 37 Flavors of coffee beans and they and the
leave a residue on your Employees Entrepreneurs
 Wants: hands — or if you can see who
Peaberry Beans From residue on the inside of a has high
Tanzania. bag of beans — that knowledge
means they are oily, and about the
 Dark Roast Sumatra hence, freshly roasted.
coffee itself and
Mandheling Beans from Lighter roasts aren't as oily,
know how to
Indonesia. so don't expect as much
residue as you'd find with a run the
 Sulawesi Toraja Coffee business can
darker roast..
Beans from indonesia. thrive
 Central American
Geisha Coffee Beans.
 Monsooned
Malabar coffee beans from
India.
 Yirgacheffe Beans from
Ethiopia.
 Death Wish Coffee
Beans.

2. Store Needs: We've come up with the 1. Good coffee Employee , Will lead to get
most matters the most. CEO, high position in
important qualities your coffe 2. Some managers the market and
e shop workplace should have (okay, most) of our to be one of the
for you to be your most wishes are probably Biggest brand
productive and motivated. not within the
1. Wifi. This is essential. ... control of coffee
2. Outlets. ... shops owners and
3. Quality  Coffee baristas (see Asad
desire that there be "no
4. Atmosphere.
regulars who make it
5. Comfortable Chairs. truly impossible to be
Wants: Piece atmosphere there, like the guy in
Blue State Coffee who
shaves his beard in the
armchair....")
3. Opening our dream
coffee shop (i.e.,
checking off all our the
things on our wish

7
 list) would probably
not lead to a
very sustainable
business model.

3. Barista Needs: A great coffee barista Barista Training & New Self-improving

has the following attributes: Expertise vacancies of new Baristas
 Friendly and capable of More will be will help them
developing a rapport with experienced baristas ar open and for progress
customers — learning their e often tasked mostly
names and favourite drinks. ... with training new students
employees. are
 Able to prepare interested
beverages quickly, while The training can range
from making everyday in Part time
maintaining a high level of job
quality. drinks to creating
specialized drinks to
 Hard working and with learning how to use the
great attention to detail. complicated machinery.

 Wants: Customer service.

Bartending of any kind (even the
non-alcoholic kind) demands a
specific style of customer
service. ...
 Reliability. Timeliness can
make or break your chances of
success in this

4. Working hours Needs: If a cafe has a Will help to get More stuff
of Coffee Shop drive thru, they will be Will help to reach the more customers
set-up to make target in evening time
significantly more money as we can get as
return clients
for their business.
Although many people
enjoy the standard
coffee shop culture of
coming into the
8
 establishment and
ordering in, there are
many more people who
are in a hurry and don't
have time to do that.
These people are much
more likely to visit your
cafe if you have a drive
thru, and if they like your
coffee/food, they are
also likely to become
repeat customers!

The view of our new

store!

The view of package

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 Part 2.
General characteristics of the industry.

Barriers to entry:

LAX 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, proximity to the
University of Westminster campus will provide access to the targeted
customer audience.

Barriers to exit:

According to statistics if we could leave the business we could lose a lot of

money, however we still can sell our shop with equipment for the good price
as we use last version of coffee machine and land place itself in the most
visible area so I would say there will be some loses but still we could not lose
all invested money

 Key success factors: Store design that will be both visually attractive to customers,
and designed for fast and efficient operations.

 Employee training to insure the best coffee preparation techniques.

 Marketing strategies aimed to build a solid base of loyal customers, as well as

maximizing the sales of high margin products, such as espresso drinks.

10
Industry trends and long-term perspectives:

 LAX Culture will capitalize on its proximity to the University of Westminster

campus to build a core group of repeat customers. Java Culture will offer its
customers the best prepared coffee in the area that will be complimented
with pastries, as well as free books that its patrons can read to enjoy their
visit.

Traditions in given area:

Nowadays UZB becoming extremely popular for consuming coffee especially

in Tashkent as they have a lot of employees when they starting their job in the
morning due to that they want to have a cup of coffee, however still we need
to take it into account that we cannot still provide Dark roast beans as local
people did not use to drink them, moreover they will not like it and it will lead
by bad impression, I firmly believe that we can get into mentality of the
people according to that we can make small changes for our daily routine and
changes in our drinks as well, for instance to create special drink as a promo
for 2 weeks or even more so according to that we could get feedback where
we have to changes and will try to get out from bad feedback

How about traditions of producing the goods and services you offer in your market?

To begin with, the service which will be provided will be unexceptional service from our Baristas
as hospitality in Uzbekistan is one their heritage due to that we will take it into consideration
and we will provide trainings for all stuff even they are still would be with tremendously good
knowledge the trainer will be from locally so still we could get into the mentality of UZB
environment

Use of resources:

There are 4 kind of resources which I need

-LABOUR. It is important part to arrange the all process. I need workers (baristas, managers, builders,
coffee masters and etc…)

-CAPITAL. Capital is also needed in this industry

11
-LAND. One of the most necessary thing is land because I need to erect the building somewhere

Regulatory framework.

The first Thing is that I need to go to a place «Single government window» and fill the application form. I
have to open LLC owing to the capital is unlimited and maybe I will have more than 2 partners. After the
application all the partners have to give the copy of passports. After that the workers of «Single
Government Window» will give all the information. You have to pay about 87-88 euros and wait 3-4
days.

For registration of a construction project by customers, the following are submitted to the registration
authority:

a) a statement in the prescribed form.

b)

b) a positive consolidated expert opinion of state examination bodies on a working draft or a decision of
the Cabinet of Ministers of the Republic of Uzbekistan during the construction of an object with parallel
design;

c) a positive conclusion of the environmental impact assessment - on facilities with harmful production
conditions;

c1) a positive conclusion of the industrial safety expert review of design documentation for hazardous
production facilities;

(Clause 4 is supplemented by “B1” by the Decree of the Cabinet of Ministers of the Republic of
Uzbekistan dated December 10, 2008 No. 271 - SZ RU, 2008, No. 50, Article 496)

d) a copy of the license of the contractor for the implementation of certain licensed types of construction
an

d installation works;

12
 e) a copy of the general plan and the facades of the object, agreed with the architecture authorities, or
the corresponding protocol of the Town Planning Council of the Main Directorate for Architecture and
Construction of the Republic of Karakalpakstan, regions and the city of Tashkent;

f) the address list of the construction object.

Stability, specifics of demand:

Supply factors affecting the price of coffee include:
 Climatic conditions e.g. the impact of el Nino.
 Existing levels of coffee stocks (inventories)
 The number of countries producing coffee.
 Productivity and investment in coffee production in the major coffee farming nations.

Part 3.
Competitor’s analysis
Competitor’s analysis.
Direct competitor.
№ Name. General description. Strengths. Weaknesses.

13
1. CAFFELITO  This coffee shops is Good customer Not enough
located near service knowledge
city center as regarding the
of now they coffee industry
are popular as and not
they use qualified
Italian coffee baristas

Coffee Makers in CAFELLITO

14
 Store inside:

The food in Cafellito:

15
Indirect competitors:

Indirect competitors are rivals whose service is similar. In this case my indirect competitors the
enterprises the main part is we are going to use Arabica coffee which they are growing in
mountain evaluation above 1400 km. We would be better then our competitors as this Arabica
much flavor then Robusta, but our competitors they use Robusta which is cheaper and can
effect to health disease

Part 4.
Statistical data.
Statistics 1.

At the beginning of 2019 the population of Uzbekistan were 33.2 million of people
and in Autumn 2019 it constitutes of 33.7 million so we can observe that the
population increase by 550.000 individuals.

Statistics 2

16
Over 2.25 billion cups of  coffee  are consumed in the world  every day. Over 90%
of  coffee  production takes place in developing countries - mostly South America,
while  consumption happens mainly in the industrialized economies.

Statistics 3.

Studies have shown that  coffee  may have  health benefits, including protecting
against Parkinson's disease, type 2 diabetes and liver disease, including liver
cancer.  Coffee  also appears to improve cognitive function and decrease the risk of
depression. ... So, how quickly you metabolize coffee may affect your  health risk

FRESH COFFEE IS BEGINNING TO STIMULATE THE COUNTRY

In 2019, fresh ground coffee recorded the highest increase in retail volume sales
for several reasons. The first is that its sales are developing from a niche base, due
to the nascent coffee culture and strong prevalence of instant coffee.

TAX REFORMS MAKE COFFEE MORE AFFORDABLE

The Uzbekistani government made significant changes after the country became
independent. A major change that affected the economy was the liberalization
policy.

Part 5.

17
 Opportunities and threats.
Opportunities. Threats.

1)Be your own boss 1) Share great coffee and your passion

2) Be profitable 2)The personal benefit

3)Socialize with your neighbors …and get 3)To get name of Brand
paid
4)You can express your creativity

Conclusion
18
LAXs marketing strategy will be focused at getting new customers, retaining the
existing customers, getting customers to spend more and come back more
often. Establishing a loyal customer base is of a paramount importance since
such customer core will not only generate most of the sales but also will provide
favorable referrals.

LAX will position itself as unique coffee bar where its patrons can not only enjoy
a cup of perfectly brewed coffee but also spend their time in an ambient
environment. Comfortable sofas and chairs, dimmed light and quiet relaxing
music will help the customers to relax from the daily stresses and will
differentiate Java Culture from incumbent competitors.

 They favor well-brewed gourmet coffee drinks and demand great service. Eugene, OR,
with its liberal and outgoing populace and long rainy winter, has traditionally been a
great place for coffee establishments. Java Culture will strive to build a loyal customer
base by offering a great tasting coffee in a relaxing environment of its coffee bar
located close to the bustling University of Westminster campus.

19