Business Idea
Our company aims to set up a new chain of coffee shops in Saudi Arabia under the brand name of Beverly Coffee & Confectionaries. These coffee shops will not only serve highest quality coffee and confectionaries but also induct flower shop with an emphasis on the store set up.
Uniqueness of Proposition
The unique of proposition is the combination of coffee shop with flower shop. The surrounding of the coffee shop will be tailored in such a way that customers can have the pleasure of beautiful layout decorated with flowers. The integration of flower shop will give the store a personalized touch where customers can also buy flowers for their homes and loved ones.
Products / Services to be Offered
Beverly Coffee & Confectionaries will offer the following products:
- Coffee
This main product category on the menu will comprise of instant coffee, specialized brewed coffees and both hot and cold coffees. These drinks will be offered to customers in skimmed, whole or soy milk.
- Espresso Drinks
This category will have all sorts of espresso coffee such as mochas, cappuccino, latte Macchiato and other delicious tasting espresso drinks.
- Sandwiches
The store will have great options in the menu to select from. Some of the examples from the menu consists of club sandwiches, Cuban sandwiches, Bierock, Finger sandwiches etc.
- Pastries
The store will offer baked delicious pastries using special recipes. These will include dark chocolates, cocoa and cheese cream pastries with beautiful garnishing on them.
- Flowers
A whole range of fresh flowers to be acquired from different sources will be offered to customers.
Pricing Strategy
- Beverly Coffee & Confectionaries
Will implement a pricing strategy which is based on standard industry practices. The objective behind the use of this strategy is to target customers who are inclined towards drinking coffee as part of their daily routine and are not put off by higher or even lower prices. The quality of coffee and services offered are surely considered as major demand factors. Keeping in this mind, we have taken an estimated range of our competitors that is the range of SR 4.50 to SR 9 for our coffee range with expected guests’ checks averaging about SR 5.00 per visit. Pricing for confectionaries and flower sets will be provided in a separate table.
- Targeted Market
The company aims to open its first coffee shop in the Eastern Province which is the largest province of Saudi Arabia. The targeted city is Dammam which is the capital city of the Eastern Province. The city has grown significantly over the last few decades and is hustling with business activities especially in the oil sector.
- Customers’ Profile
The demographic review of the city suggests that the city is the third largest of the country and shares similar population trends with majority falling in the age bracket of 16-64 years which is considered as the potential target market. The city has a large work force particularly comprising of workers from other countries who are familiar with the trends of coffee shops and they are likely to visit such stores offering unique approach as our company’s proposed business. The population has a good level of income as majority of them are working for oil and technology companies in the region. Also there are a large number of tourists visiting from neighboring countries which are also targeted. Therefore, Beverly Coffee & Confectionaries targets the mass population; its segmentation includes young adults, office workers, tourists and shoppers of malls.
Competitors Profile
There are major international coffee brands operating through their stores in Dammam. Brief profile of major competitors of the proposed coffee shop is provided in the following:
- Dunkin Donuts
Dunkin Donuts is one the largest international chain serving coffee and baked products since 1950 with its headquarters in the US. The company’s product profile include bagels, donuts, oven toasted items, beverages and bakery (Dunkin Donuts, 2009).
- Starbucks
Starbuck is the largest international chain of coffee shops based in the US since 1971 serving all kinds of coffee beverages, coffee beans and confectionaries. The company has a product profile which varies according to the location of the store (Starbucks, 2009). The company has 4 stores in the area of Dammam which are delivering similar services to their customers (Alshaya, 2009).
- Krispy Kreme
Krispy Kreme is one of the oldest US companies established in 1937 having its major market concentration in its home country and also Canada. The company’s stores offer great variety of donuts and coffees to its customers. The company has three outlets in Dammam which are offering same products and services to their customers (Americana, 2009).
Promotional Activity
The proposed business of integrating coffee shop with flower shop is a unique one itself. In order to promote the products and services to be offered by Beverly Coffee & Confectionaries different activities as proposed below will be carried out that will help in creating awareness of product, immediate traffic and establishment of brand image:
- Online
The coffee shop will have its own website and extensive promotion will be carried out through this website. In addition to this additional promotion will be done through placing advertisements on different websites, online blogs and social networking portals.
- Advertising Channels
Physical advertisement banners and pamphlets will be posted and distributed through different channels to carry out personalized advertisement for our coffee and flower products and specialties.
- Public Relations
It is suggested that public relations are viewed as much more important than advertisement (Harris & Kotler, 1999). Therefore, the company will ensure that public relations are made stronger through participations in trade shows and various local social events.
Success Targets
The success of the proposed coffee shop will be dependent on the following success factors identified by the company:
- Uniqueness in store layout
- Versatility in products and services to be offered
- High Quality
- Competitive pricing
- Excellent customer service
- Customer Relationship Management
- Efficiency in value chain
All these success targets are set out to achieve the long term goals of the company as laid out in the next section.
Long Term Goals
The company’s long term goal is to achieve a strategic position in the food retail industry by gaining a recognized and reputable brand name for its new venture. The company expects to expand its business integrating coffee and flower shops to other locations in the Eastern Province. If the initial set up proves to be profitable the company may aim to expand to other major cities of Saudi Arabia such as Riyadh and Jeddah.
Management
The company’s management has a versatile experience having other businesses such as fast food outlets in Dammam and Khobar and also distribution of frozen food products from other countries throughout Saudi Arabia. The management has close corporate relationships and it is considering expansion of its business in the food retail industry by opening chain of coffee stores throughout the Eastern Province.
Funding Needed
The funding required for the proposed business will be raised from private equity of the owners of the company. The company aims to remain debt free and cover all investment and operational expenses from the fund that will be created for this business.
Reference List
Alshaya. (2009). Address for 70 Starbucks Coffee Stores in Kingdom Of Saudi Arabia. Web.
Americana. (2009). Krispy Kreme Store Locations in Al Dammam. Web.
Dunkin Donuts. (2009). About Us. Web.
Harris, T., & Kotler, P. (1999). Value-added public relations. Chicago: McGraw-Hill Professional.
Starbucks. (2009). About Us – Starbucks Coffee Company.