QSA0274

(Introduction to Business)

Marketing Plan of Coffee

Section 920

Group members:

1) Mohamad Hairie bin Mohamed Ali (160998)

2) Mohamad Izzat Mustaqim bin Rashid (161003)
3) Nor a’inina Najihah Najwa binti Nazaruddin (161802)
4) Puteri Nur Nadhirah binti Maharani (162839)
5) Mohamed Amirulmifzal bin Faziluddin Ibrahim (163448)

Lecturer’s Name: Sir Abdul Razak bin Abu Bakar

Date of submission: 19 September 2017
 Table of content

No. Content Pages No.

1. Introduction 1
2. Executive Summary 2-3
3. Environmental Analysis 4
4. SWOT Analysis 5-6
5. Marketing Objectives 7-8
6. Marketing Strategies 9-11
7. Marketing Implementation 12-14
8. Cash Budget 15-16
9. Appendices
10. References
 Introduction

This business is based on sole proprietorship where it is belonging to Mohamad Hairie bin
Mohamed Ali who is the owner of this business. This business has been named “Aroma
Café” and it is located at Lot CX-E-2, Complex Centre International Islamic University
Malaysia (IIUM) where is well known area in IIUM. We choose IIUM Gombak because this
place always visited and crowded by so many people. Furthermore, we also estimate that we
can get profit in a long-term.

This business has been started for five years ago by Hairie’s father Sir Muhammad
Ali and contributed capital about RM 100 000 before gave this business to his son,
Muhammad Hairie. He realizes that there are many cafés that attract people’s attention to
come and buy but mostly the café are not convenience and suitable place to hangout while
doing their assignment. Since many people especially university students love to take some
beverage as a daily intake and he realize the potential of this business in the future so he
decided to gain the experience by doing this small business.

Aroma Café is a café which focussed on selling various menus of drinks namely
Cappuccino, Espresso, Americano, Double Chocolate Chip, Hazelnut Chocolate and Vanilla.
Special taste, beautiful decoration and affordable price make it looks interesting and suitable
to serve for all customer. Moreover, the ingredients and the taste give a lot of benefits to our
business and give an opportunity to this drink to be one of marketable product. We expected
that there will be new products to be introduce in future.

Aroma Café provide various types of drinks with a sweet and special taste. It is help
students to enjoy and satisfied with drinks that they have buy. Not only that, coffee has a lot
of benefits in term of medical aspect. It can help a coffee drinker to fight diseases. Our café
also provides a better place for students to hangout, doing their assignment or even to study
while enjoying our drinks. It will save their time because they do not need to go somewhere
else to study or doing assignment after buy our drinks. Furthermore, most students do not
have much time for breakfast. So, our café is open early in the morning and students can just
grab a cup of hot beverages and a packet of muffin before going to the class. Thus, we choose
to introduce our café to fulfil public needs especially students and at the same time, it makes
their life be easier.
 Executive Summary

Aroma coffee shop produces best coffees in this university. This business is located at the
middle of the university and near to the bank. We are delighted to inform that this location is
strategic because it is the place where a lot of people walk here. It is good to promote coffee
to people at this university. So, our coffee shop could help them reduce their burden in many
aspects. We would like to share the benefit and secret of coffee before we introduce our
product. Coffee was discovered in 11th century in form of plant which is believed that it is
medicinal properties. Drinking coffee can lower the risk of getting diabetes, cancer, gout,
stroke and many more. Coffee also help a person to stay awake due to the caffeine ingredient.

Coffee is a huge gift from our legends because it has many benefits especially in
form of medical. So, we have decided to operate coffee shop with good quality and cheaper
price. Our coffee shop promotes and sell six type of coffee which are cappuccino, espresso,
americano, double chocolate chip, hazelnut chocolate and vanilla. These coffees prepared in
two form which in ice blended and hot. However, for second quartile of business, we have
planned to introduce new product in order to increase revenue. Our target market consists of
students, lecturers and staffs which can choose their coffee based on their taste and
preference since they are independent to make their own decision. The price we offer is
between RM6 to RM8 only. This coffee has been prepared fully in clean and ‘Halal’ way and
free from any bad to health.

To achieve the marketing objective and bring the business into next level, Aroma
coffee has setup a marketing strategy for the coffee that we produce which might endure a
significant acceptance by the people. The good quality can help the coffee in best and healthy
form which will lead to acceptance of people. The reason why the marketing strategy is
implemented to the people who are busy is to ensure their health is not in problem. Our target
market can get our coffee with cheap price and it is affordable for most of them in this
university.

The capital which were spent to started this business are quite affordable since we get support
from the university and the bank as well. We have planned to get income in short term and
long term. So, it is easy for us to get investment from outside. A good future plan can help us
to invest more in our business such as introducing new product and opening few more
branches in strategic places. Not only that, the business has planned to organized campaign
about advantages of coffee in future. This is for to promote the coffee and rip off the bad
impression towards coffee.

The analysis of the environmental issues consists of economic, competitive and

sociocultural forces. The SWOT of coffees is analysed same as the environmental issues and
both are used as a measure to enhance the business and the coffee as well. Cash budget is
prepared by our self with carefully to ensure the promotion and the sales we made is on right
track. To summarize, our marketing strategy of Aroma coffee can be success with an
effective and efficient implementation of strategies and plans. Coffee might be disliked by
certain people due to less knowledge of benefits of coffee. So, it is our responsibility to
promote the coffee and this considered one of contribution towards ummah. We not only
want to get profit and to perform ‘ibadah’ in muamalah.
 Environmental Analysis

Economic forces

Students of CFS get allowances every semester which amounted around RM 900. Usually,
spending for drinks does not require a lot of money and most of situations, it costs under
RM 8. Students are happy with the current price since it is affordable and worth money to
spend on the drinks.

Competitive forces

There are several coffee shops in IIUM Campus such as Taste buds, Richiamo and Geng
Mosha are located around the bridge. The drinks menu almost same with chocolate and bitter
coffee dominate the list this does not suit with customers’ taste. In addition, the shops are
close to each other and it is not too good for business. The shops condition is quite good but it
becomes the reason the drinks are sell with high price.

Sociocultural forces
Our target customers have high level of education, so we provided more scientific details
and explanations while advertising and promoting products. The communication language is
English since we are having business at an international university. Woman are the decision-
makers in shopping, hence we decided to make woman as the main target group by building
advertising strategy on women or girls. Based on the survey, we found that the customers
have a strong reference group which are friends and co-workers that they rely on.
 SWOT Analysis
Strengths

Our business has many return customers because coffee drinks suit most people taste. Before
we start the business, we had done some research about coffee that became the top choice of
the public, the taste of coffee whether creamy or bitter and other factors that we consider will
affect our profit. The business location is strategically located at centre of main route with a
lot of people walk around our shop. Customers are satisfied and gave the positive responses
with our well-provided services. We trained our workers and ourselves to smile and give
immediate response to customers with high manner. This is parallel to our motto which are
responsive, efficient and convenient.

Weakness

The only weakness is we do not have a lot of financial resources to spend on product
marketing due to limited budget and our decision to invest on product and shop development.

Opportunities

With the opportunities arises, we take full advantage on supplier’s promotion of various type
of coffees. Commonly, supplier offers to sell their product in bulk with cheaper prices due to
another product coming in. The admission of first year degree students which we can focus
on. The new environment encourages them to try something different. The hot and warm
tropical weather urge customers to keep hydrated. People easily feel down when they
hydrated and with having some coffee leisurely, it rests customers, physically and mentally to
continue the challenging day.

Threat

There is some problem with electricity supply because sometime the electricity supply stops
functioning properly and it surely takes plenty time to fix it. This will cause the coffee
machine cannot function efficiently due to electricity problem. Around our premise, there are
several empty shops that possibly rent to sell food and beverages. The opening of theme
coffee shop that offers lower price with high quality product near to our shop surely will
become threat to our business. The change of customers taste over coffee to other drinks is
possible either various factors such as the current trend, the innovation of technology because
it is a subjective perception that changes over time.
 Marketing Objectives

1. Increase sale which is targeting to achieve RM100,000 in one-year period.

- One of the most important goals of business is to maximize the profit and increase sales.
Business needs a good return on investment which indirectly means that the increase in sales
should significantly exceed the cost. So, every business need to setup their sales target so that
they can put maximum effort. In this business, we decided to setup our target around
RM100,000 which is reasonable for coffee shop. Each worker will put their effort and hard
work to ensure the sales target can be achieved.

2. Improve and rise the product awareness

- There can be many reason for us to setup this coffee shop. However, there is main factor of
opening coffee shop which is the benefit of coffee consumption itself. Coffee can give more
benefit to the coffee drinkers in long term and short-term benefit. This benefit is confirmed
by doctors and scientist in medical term. Opening a coffee shop nearby peoples can increase
their interest on coffee as well. Not only that, it is easy for us to promote coffee through
campaign so that people will get to know with coffees and try to drink coffees.

3. Provide good service to customer and satisfy customer needs

- Even though, our coffee is not service based business but we decided to prioritize service
also beside selling coffee. The reason to provide good service is to attract customers and
make them more comfortable in our shop. Next, to satisfy customer needs, we decided to
offer variety of coffees to customer and provide Wi-Fi connectivity so that they can do their
work while having pleasant coffee at our shop. So, good service is important for us to attract
customer and make sure they retain as our regular customer.
4. Open few more branches and create new coffee based on Malaysian tradition

- If we want people to remember us then we must do something big so that they won’t forget
us. This quote gave us spirit to develop idea for setup few more branches in future. To setup
new branches, we need to make sure people already know us. With support of customers, we
can open new branches without any problem since people already know us. Next, if it is not
possible, we try to develop idea of creating new coffee which based on Malaysia style. This is
for make Malaysia name to be more famous in world.
 Marketing Strategies

Target Market

As we all know, target market is important for a business to produce income. Based on our
coffee shop business, we are aiming our product to students, lecturers and staffs. It is easy for
them to stop by our shop because our shop is located at middle of the university. So, they do
not have to spend too much of energy for travel to our coffee shop. Apart from that, most
probably our target market will be around 18-50 years old. These people are students who are
studying for foundation, degree, master and PHD in this university. It is not impossible for us
to aim all of them since coffee will help them through their problems such as sleepiness,
stress level, pains and many more. Coffee lover could spend their money for good coffee
which we provide since coffee gives more benefit. Based on income level of our target
market, they can afford coffee from our shop since coffees from our shop is reasonable and
good in quality as well.

Marketing Mix

1.1 Product

Aroma Café produce many type of coffee which is predicted to be favourite for the expected
target market. There are two type of coffee which are ice blended and hot beverages. As we
informed you, coffee have many benefits which is for short term and long-term coffee
drinkers. Coffee can help fight diabetes for short term and burn fats for long term coffee
drinkers. For ice blended, the size of container slightly big than the hot one because it has the
big volume due to ice. The customers can have their coffee at our shop or they may take
away their coffee. Based on ice blended coffee, there are 6 types of flavours which are
Cappuccino, Espresso, Americano, Double Chocolate Chip, Hazelnut Chocolate and Vanilla.
Next, there are 3 types of flavours for hot beverages which are Cappuccino, Espresso and
Americano. Our customers can choose their coffee based on our coffee shop menu. It is
expected, there will be many variety of coffee to be added in the menu.
1.2 Price

The price of coffee is cheap and affordable for the target market. Based on their income level,
we are sure about the statement. The price ice blended coffee is slight higher than the hot
beverage due to adding of ice, extra sugar and extra flavours on the coffee. The price of ice
blended is between RM7 and RM8 only. For the hot beverages, the price that we charge is
RM6 for Cappuccino, Espresso and Americano. Our coffee not exceed RM10 and the price
we charge is extremely suitable compared to coffee at out there. Besides, our customer can
add any of ingredient for taste purpose and there will be no extra charges because it is not
reasonable. The price for these coffee is priced based on the quality and how frequent that
people consumed it. There will be no increase in price and new products in future will be
priced below RM10. So, our customer can spend their money to have our coffee without any
hesitate.

1.3 Place

Our customer can find our coffee shop at near to the bank in this university. The location of
our coffee shop is strategy because it is located at the middle of the big university. People
need to walk around there to go another place. So, it is great idea to operate a coffee shop at
the place where, there are many people walk. Not only that, our coffee shop is near to
cafeteria which will ease our customer to take away their coffee and drink while they are
eating at cafeteria. Our coffee shop is surrounded by glass doors and it allows the people to
look straight away at our coffee shop. Scientifically, it has been proven that 60% people were
attract to a shop because they can see the shop directly through glass doors. This is a plus
point for us because we do not have spent too much on advertisement since people are attract
due to our strategic place coffee shop. Moreover, location of our coffee shop has strong
connection of WIFI. So, people will make their mind to stop by at our coffee shop while they
are doing their assignments or other work. This happens due to strategic place of our coffee
shop. To our customer who feels our shop is far, we provide delivery to them with minimal
charge RM2 for per delivery.
1.4 Promotion

To ensure our sales to be achieved, we should do some promotion. First day of operating
coffee shop, we have provided sample to first 100 people who step to our shop. This type of
promotion will cultivate the customer to try the coffee and it will be a chance for people who
do not love coffee to try the coffee without paying a single Sen. This will encourage the
people to buy coffees and this might be good start for them and us. Next, our coffee shop also
decided to promote our existence at social media since it will cost less for us. People are
easily influence by media social so it is easy for us to attract customers by promoting the
benefits of the coffees. To increase our sales, frequent user- incentive method used in this
business. Customer who purchase frequently will give reward based on the bingo card that
we give. Each time they purchase, the card will be stamped and when they reach the reward
box, they will automatically receive the gift. This is also a way to boost our sales and make
our customers happy. This will make customers to talk about our existence with other people.
Indirectly, this will promote our coffees to others with any expenses. In future, there will be
more promotion to attract the customer and boost our sales.
 Marketing Implementation

MARKETING ACTIVITIES PERSON-IN-CHARGE

First quarter Grand opening for Aroma
(1st – 3rd months) Café
- Do promotions for
100 first customers Owner
will get free coffee
for the first day
opening

Ask feedback from the

customers

- We can know the

things that we can Customer services
improve for our
business.

Advertise about the product

- Our coffee contains
less sugar
- Freshly brewed by Marketing Manager
our experience barista

Second quarter Introduce of new products

(4th – 6th months)
- We add some new
flavor to be added in Owner
the menu.
- It can increase our
sales revenue.

We provide on job training to

new workers

- We train our new Human Resources Manager

workers with our
experience barista.

Third quarter Expand our coffee bar

(7th – 9th months) - We add more
furniture
- We renovate the Administrative Manager
entrance which can
attract customers with
greetings by our
workers.

Provide walk-thru coffee

- Customers can get Marketing Manager
their coffee without
queuing.
- We also give rewards
to the customers
based on the bingo
 card.

Fourth quarter Attend workshop

(10th – 12th quarter) - Owner attends
workshop to gain
knowledge how to Owner
compete with other
business.

Set up the annual financial

report for the company by Financial Manager
including total expenses,
sales and profits.

Analyses the ways to

increase the sales and profits Analyses Team
in the upcoming years.
 Sales Budget

First Quartile Second Third Quartile Fourth Quartile

Quartile
Ice Blended RM RM RM RM
Cappuccino 5670 6300 8190 9450
Espresso 6300 7560 6930 6300
Americano 5040 5670 6300 5670
Double 6480 7920 9360 10080
Chocolate Chip
Hazelnut 5040 5760 6480 5760
Chocolate
Vanilla 3600 5040 6480 6480
Latte - 5250 3990 4830
Frappuccino - 3120 7200 6480

Hot Beverages
Espresso 3780 4860 4320 3780
Americano 2700 2700 3240 4320
Cappuccino 3240 2700 3780 4860
Latte - 3750 3300 4350
Frappuccino - 5040 10800 3600
The Flat White - 3720 2976 9000

TOTAL 41850 69390 83346 84960

Cash Budget
 Cash Budget for Aroma Cafe Coffee Shop

First Second Third Fourth

Quarter Quarter Quarter Quarter Total

41,850 69390 83346 84960 279,546

Cash Sales & Collections

Less Payment:
15,000 15,000 15,000 15,000 60,000
Purchase
10,800 16,200 16,200 16,200 59,400
Salaries
- - 10,000 - 10,000
Furniture
- - 20,000 - 20,000
Renovation & Expansion
1,500 1,500 1,500 1,500 6,000
Rent
900 900 900 900 3,600
Insurance
28,200 33,600 63,600 33,600 159,000
Total Payment

13,650 35,790 19,746 51,360 120,546

Profit

References
1. https://www.turkishcoffeeworld.com/History-of-Coffee-s/60.htm
2. https://www.inc.com/guides/2010/09/how-to-write-an-executive-summary.html
3. http://www.healthline.com/nutrition/top-13-evidence-based-health-benefits-of-
coffee#section4
4. Module for Business Courses 2nd Edition (QSA0274 & QSA0294)
Business Unit
Department of Quantitative Studies
Centre for Foundation Studies
International Islamic University Malaysia