Cafezinho Coffee shop

Industry description
The name of the coffee shop will be Cafezinho Coffee Shop which will be located inside
the campus near 14 th block in Lovely Professional University, Punjab. The size of the
shop will be 20 x 20 ft. The rent will be Rs. 15, 000. Our Coffee shop will offer best
prepared coffee in the campus using high-quality ingredients and strictly following
preparation guidelines with fast food and refreshment beverages. The menu offerings will
be supplemented by free books and magazines that customers can read inside the coffee
bar.

The capital required to establish this business is Rs.10, 00,000. There will be four owners
in this business, whose names are Sushmita, Nishant, Anuj and Nandani. The profit
sharing ratio would be 1:1:1:1 because we are contributing equal amount of capital in the
business i.e. 2, 50,000 each. There would be four employees in the business. One
employee will be expert for coffee making and two employees will for serving & making
the food stuffs and one worker will for cleaning purpose.

Target Market

Our target market would be:

 Faculty
 Students
 Visitors i.e. parents and other people.
 Other employee & staffs
Market analysis

We have verbal communication with the other café who are our competitors and after that
calculated our estimation and going to establish our business in the campus.

Lead time

The lead time for the offering product and services would be as follows:
 If the customer will purchase any item in large quantity. It will take 10 min
maximum. It will depend on the time of order given by the customer.
 Other then it will take 5 maximum for coffee and other beverages for individual
customer service etc.

Evaluation of competitor

There are four competitors in the business which can be the biggest threat of our coffee
shop are as follows:
 Campus Café
 Bru
 Lipton
 Fuel zap
Out of these four competitors the campus café and fuel zap will be our major competitor
in this business inside the campus. The information regarding these are as follows:

Campus Café - This café is having a large number of loyal customers and it is one of the
oldest and biggest café in our university. It has created an identity in the mind of the
customer regarding product as well as services. They provide all the fast food and
beverages to the customer with a pleasant sitting arrangement. The main thing is the café
is already a well established inside the campus.

Fuel zap – This café is newly established in our campus which is very near to the campus
café. The café is selling all the food stuff and beverages with Coffee. The size of the
coffee shop is 15 x 15 ft.
The other left two coffee shops i.e. Bru and Lipton are the minor one which is
established in the form of kiosk which are offering only coffee, tea and soup as a product
line.
Swot Analysis of competitors

Strength
 Market is already established.
 Link with suppliers are good.
.
Weakness

Opportunities
 Huge customer base.
 Good service in a will mannered helps us to build a strong base of loyal customer.

Threats
 There is no entry barrier in the entering business inside the campus.
 Already established café like bru, Lipton, Campus cafe and Fuel zap are the threat
for each other.

Regulatory Restriction

It is required to take permission for opening any kind of business from certain authority.
As we are opening our business inside the campus so, we need to take permission from
entrepreneur development department which is in 26 block.

Market strategy (Promotion)

The advertisement will be done to promote the awareness of our coffee shop through the
following ways.
 We will use give ad in LOVELY TV. In every block and hostel there is a LCD
which shows news and advertisement through that we can approach to student by
giving ad in that.
 Word of mouth
 We will give ads in University Management System (UMS) also.
 Pamphlets at notice boards.
Sales strategy

To speed up the customer service, at least two employees will be servicing clients--while
one employee will be preparing the customer's order, the other one will be taking care of
the sales transaction. All sales data will be logged on the computerized point-of-sale
terminal will be later analyzed for marketing purposes.

We will provide comfortable Ac room, sofas and chairs, dimmed light

and quiet relaxing music will help the customers to relax from the daily stresses and will
differentiate CAFezinho from other competitors in that area. At the same time, customer
retention programs will be used to make sure the customers are coming back and
spending more at the coffee shop.