ENVIRONMENTAL ANALYSIS

This section presents the industry analysis covering the following forces directly
affecting the proposed business; The trend in the industry, the consumers, the
competitors, the market forecast, market share, market position, and marketing strategy.

I. Trends in the Industry

Due to the fact that our country is a third-world country, different sectors of
our nation work hard to keep up with other countries in our world so that the
country’s economy will not drop leading to worse poverty and hunger. Employees
work overtime to keep up with the needs of their family and personal needs,
students sometimes even don’t sleep just to keep up with their assignments and
tasks, and teachers work overnight just to deliver quality education to our
students. Our country is really full of hardworking people who become very tired
and sleepy every day. That’s why we thought of introducing a business to them, a
coffee shop known as The Grounds.

Coffee is well-known by these people as this takes a place in their

everyday life. In the morning, some take it as a necessity to energize their day
while fighting through traffic and hassles in our community. A business like this is
popular nowadays since these don’t just help people relax, but also to become
energized for their day ahead. Working and studying outside is also a trend at the
current time. Some students and employees bring their laptops into their local
coffee shops to work and study while sipping hot-brewed coffee. People like
convenience and instant in today’s society and our business offers all of those. In
addition, late students and workers are common nowadays, so coffee shops like
ours can provide them their breakfast, such as coffee and any pastry, to fulfill
their hungry stomachs which will give them the strength to fight for another day
ahead.
 II. Consumer Analysis
The Grounds will offer you the best-brewed coffee to boost your day! Our
coffee shop will mainly target the students, workers, and employees near the
vicinity of our location, Samson Road, Caloocan. These will be the students,
workers, and employees of the University of the East Caloocan, Systems
Technology Institute Caloocan, AMA Caloocan, and GOMBURZA Elementary
School. We will cater to all age brackets, from minors to senior citizens. We are
inclusive to all genders, our coffee shop wants all of its customers to be their safe
space. Nowadays, students and teachers prefer to work and study in coffee
shops due to its cozy and relaxing environment. We will make sure that they can
chill, study, work, and relax with a relaxing scent of coffee beans with, of course,
a perfectly brewed coffee and a pastry in hand. In addition, we will cater to
vegans, gluten-free, and lactose-free individuals who are more conscious of what
they intake on a daily basis. Our coffee shop’s target market size is 10,000 -
20,000 people per month, and we will extend our efforts on reaching our target
market with the marketing strategies mentioned later in our environmental
analysis.

III. Competitors Analysis

Black Cups Barista Big Brew

Business Black cups is a Barista is a café based in Big Brew is a local coffee
Profile coffeehouse that Caloocan, Philippines. shop that serves coffee,
serves various types They serve coffee, tea, and snacks that are
of coffee and other milktea, and foods to eat. "big" in taste but "bit" in
drinks. price.

Target A consumer that is A consumer who loves to A consumer that looks for
Consumer finding a place to try a different coffee or tasteful and affordable
drink and hang out in milk tea flavor of their products to eat or to drink
 in a small yet cozy choice and a meal to eat. at any time of the day.
coffee shop.

Market The coffee shop’s Posts on social media Has an appealing

Strategy location is very cozy, platforms, has promos, facebook page where
hires baristas, has and has different they promote their
good social media variations of products products together with
marketing, and such as flavors and their own made memes
commences some meals. that helps in boosting
special events. their
audience/consumers.

Pricing 120-140 pesos 39-79 pesos 29-39 pesos

Strength Some of their Affordable products, They sell their products at

products are cheaper good marketing in social a very low price, has an
than other coffee media, the product is effective social media
shops, has an aesthetically pleasing to marketing, and there are
excellent social media the eyes. lots of feedback from the
marketing, the customers.
packaging of their
products looks
pleasing.

Weakness The coffee shop is Nothing new about the The products are not too
small and not too concept, lack of product unique and does not have
many customers can differentiation from other anything new to offer.
hang out in their coffee shops, and
place. availability of ingredients.
 Cafe 2020 Starbucks The Coffee Bean & Tea
Leaf

Business Cafe 2020 is a local Starbucks Corporation is Founded in 1963 by

Profile coffee shop located in an American Herbert B. Hyman, The
Caloocan City. They multinational chain of Coffee Bean and Tea
serve variations of coffeehouses and Leaf is the oldest and
coffee, non-coffee, roastery reserves largest privately held
and breakfast meals. headquartered in Seattle, specialty coffee and tea
Washington. It is the retailer and roaster in the
world's largest US. It is the lleader in
coffeehouse chain coffee and tea drinks and
the inventors of the World
Famous ORIGINAL ICE
BLENDED

Target A consumer that is a A consumer, either a A consumer, either a man

Consumer coffee lover looking man or a woman, that is or a woman, aged 18 to
for affordable drinks. middle and upper class. 40 as they tend to be
Also for those who frequent coffee & tea
like to eat breakfast drinkers
with coffee.

Market Sells their products Uses brand image as a Their strategy is to keep
Strategy and goods at an way to invite consumers innovating and develop
affordable price with to try their products more products. They also
combo meals. use radio, outdoor, digital
video, banner ads, and
sentiment-driven social
media placements to
invite consumers
Pricing 20-160 pesos 70-235 Pesos 115-205 Pesos

Strength Their services include One of its strength is its The company uses strong
curbside pick-up, extensive international and unique management
takeout, dine-in, and supply chain. Starbucks to produce new coffee,
delivery. sources its coffee beans tea and food products in
from three coffee all over the world
producing regions,
Latin-America, Africa,
and Asia-Pacific

Weakness Has no social media Starbucks doesn’t own The company is more
account active to the most unique products focused to working adults,
promote their in the market. This and youth as their target
business. It would be makes the imitability of market. This may leads to
hard for their business products quite easy for some lose of the potential
to get recognized. other companies market
IV. Market Forecast

With the help of our marketing strategy to introduce our business to the world
through the use of social media, we can say that our business will continue to grow in
the progressing months, with an exception for the months of March and April, we expect
that our sales and profit will go a little bit lower than previous months because of the
summer season during those months when the weather is hot enough for people to
even think of grabbing a cup of coffee at our coffee shop. Although, we expect our sales
and profit to get higher again and be back on track for the following months after the
summer season or after the months of March and April. This provides us with the
numbers of value that we need to expect based on our marketing position. These
figures are merely estimates, but we anticipate having regular customers who will share
and supply the possible market.

Total estimated/expected amount of sales in 6 months = PHP 2,334,000.00

Total estimated/expected amount of profit in 6 months = PHP 816,900.00

V. Market Share

VI. Market Position

VII. Marketing Strategy
Marketing strategy is important to our coffee business. It helps our
business to be introduced to the world and make it popular through the use of
different marketing strategies. Social media nowadays is used by everyone,
anywhere. This is where they spend most of their free time, thus advertising to
promote our business on that platform is greatly beneficial for us. We will create
social media accounts on different social media platforms so we can ensure that
we can get good coverage of people to see what’s our business. We will post
interesting information about us, sales in our shop, giveaways, promotions, and
the like. Our main target customers are the students, workers, and employees of
the schools near the location of our shop. With that being said, we will hang
posters and we will give fliers near the vicinity of our shop. Lastly, we will set up a
website wherein our potential customers can view our in-depth background, our
social media handles, our menu, and the like.

We aim to have good service to satisfy all our customers, so we ensure

that we can give them what they need such as good service and good quality
products. We will put in a free wifi connection inside our coffee shop, to ensure
our customers can sit for a long time to work and study, and of course, so they
will never get bored. They can post their experience and tag our social media
handles with their feedback which is another way to spread the word about our
business. If there is a problem with our products, we will always be here to assist
them to correct our mistakes to make our business even better.