Strategy and Implementation Summary

SWOT ANALYSIS

Strengths: By offering a wide selection of coffee products, Big Mocha Joe’s can appeal
to every type of coffee drinker. Provide an atmosphere drastically different from our
competitors. Hold open mic nights to attract new customers and establish Big Mocha
Joe’s as the hub for new upcoming artists in Wichita.

Weaknesses: There are already three competitors in our area which will make it difficult
to take a sizable portion of the market share. Since we are a startup business we will have
limited resources to compete with our competitors and expand our brand.

Opportunities: The growing music scene in Wichita is a market through which we

expect of business can take advantage of. The construction of new manufacturing plants
will help to increase the population of Wichita and as result increase our addressable
market.

Threats: The increasing price of coffee beans presents a threat to our business. Coffee
bean prices have risen to a two year high. At this time, it is uncertain as to whether or not
these price hikes will continue in the long term.

Not sure how a SWOT analysis can benefit your business? Read our article on How to
Perform a SWOT Analysis.

COMPETITIVE EDGE

Our company will offer a similar coffee tasting experience as our competitors, at a
similar price. However, Big Mocha Joe’s will strive to attract loyal customers based on
our relaxed coffee shop atmosphere, frequent live performances, and friendly staff.
Customers will want to visit Big Mocha Joe’s because the vibe is friendlier, more
interesting, and less corporate.
 The Coffee Beans coffeehouse uses a strategy of total quality—in product and service. Our promise is in our
location, the products we sell, the people we attract and the atmosphere we create.

Strategic Assumptions:
 People want a better-tasting coffee drink
 Coffee drinkers want a more inviting coffeehouse environment
 Coffee drinks are considered an affordable luxury
 The coffeehouse industry is largely unaffected by the economy and world events
Launch Marketing:
Launch marketing will promote awareness, build immediate traffic and establish our brand image via several
methods:

 Public relations/publicity
 Direct mail
 Local print and broadcast media
 Design and packaging
 Community involvement
 Sampling
 Superior location
 Desirable store ambiance
Public Relations:
A strong public relations/publicity program uses as its primary “hook” these three main points:

1. Our unique quality products

2. No commitment on taste
The goal of the PR/publicity is to achieve local market awareness and establish the brand on a wider scale to set the
stage for future expansion. Local market awareness is vital because more than 50% of sales will come from people
living within a 5-mile radius of the store.

National awareness will help drive the expansion by generating opportunities created by the media buzz and
familiarizing people with our brand name. It will help set the stage for future brand identification.

Local Media:
 Newspaper
 Magazine
 Posters
 TV add
 Radio
Regional/National Print Media:
 Business week
 Newsweek
 express News
 Entrepreneur
 Fortune
National Broadcast Media:
 8 radio stations nationwide
Direct Mail:
 Ongoing direct mail generated from our website data
 Visa or MasterCard local direct mail program
Design style:
The interior design of Coffee Beans is unlike any other coffeehouse chain. While there are some upscale designs,
they are the entire modern Italian or Coffee Day look. Our upscale stylized “Cote d’Azur” Mediterranean Riviera
design, featuring stained glass decorations, art glasswork, differentiates us from all others.

Gift Items:
We carry a wide variety of quality gift items, including gift baskets. Gift basket business could eventually grow to
be substantial. However, since it is difficult to project at this time we have not included it in the financial
computations. We also offer sales of stained glass and glass artwork by the artisans who produced our decor
furnishings.

Location:
The location of the first Coffee Beans in Liberty is a prototype of future sites. We will build Coffee Beans
coffeehouses in the best locations possible, as this is the key element in a successful operation.

Site selection criteria include:

 High traffic location

 Small or mid-size affluent market
 Year-round tourist activity
 Nearby (within 5 miles) student population
 Outside dining
Sampling:
We will engage in several sampling activities to introduce potential customers (and current customers) to
Coffeehouse’s range of drink options.

 Samples will be distributed at the coffeehouse

 Samples will be given to passers-by on the street
 Discount coupons will be distributed on the street, via direct mail and at special events
 Complementary coffee will be served at charitable and civic events
Sales Strategy:
Our sales strategy includes:

 Staff salaries that are 10% above the industry average in order to attract the best people
 Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers feel welcome and
appreciated; constant staff training to assure the best quality possible
 State-of-the-art sales/inventory system to (A) reduce customer waiting time, and (B) create efficient product
ordering
 Create a mobile kiosk to take Coffee Beans into the community at special events, farmer’s markets, art shows,
etc.
 Sell coffee, gift baskets and glass artwork on our website
 Establish coffee service at local businesses
 Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups
 Create an ongoing sampling program
 Conduct a consistent, aggressive marketing program
 Be an active member of the community; be visible at charitable functions
 Solicit customer feedback to constantly improve and streamline our operation
Key Strategy: an advanced and expandable point-of-sales system
After carefully tracking the performance of the Liberty store through an expandable and highly detailed point-of-sale
system, we will use this as a “blueprint” for expansion. For example, daily sales are tracked and analyzed by item,
time period and cost of goods. Labor requirements are matched to projected in-store sales based upon past
performance for maximum efficiency. Even after paying higher than average wages we expect to allocate no more
than 25% to labor costs. Cost of goods can be monitored for increased efficiency too. As we continually research
methods of delivering a high quality but cost-efficient product, and by making small incremental improvements in
the costs of items we expect to increase overall COG by a minimum of 5% during the first year of operation.

As expansion occurs, the POS system can be adapted to each individual location and allow the central office to
monitor the stores remotely as well as the overall combined operation. Close monitoring will allow us to achieve a
high level of communication between stores as well as spot problems immediately and take corrective action.

Sales Forecast:
Conservatively, we are forecasting an average of 300 customers per day during the first year with average guest
check expenditure for all items of $4.10. This figure was arrived at by surveying the customer traffic at the nearest
competing coffeehouses which have a range of 150 – 500 customers per day and an average customer expenditure of
$4.10. We have estimated our customer expenditure to be slightly higher (2.5%) due to the premium price we will
charge for some of our items. Total cost of sales is approximately 25%.

We expect growth to occur across all categories at about 10% annually as the business becomes more established
and well-known, reaching 400+ customers per day within a year and more than 500+ within three years. These
estimates are likely conservative. However, it is possible we could attain a 1,000-per-day customer count within
three years.

Objectives

Java Culture's objectives for the first year of operations are:

 Become selected as the "Best New Coffee Bar in the area" by the local restaurant
guide.

 Turn in profits from the first month of operations.

 Maintain a 65% gross margin.

1.2 Keys to Success

The keys to success will be:

 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.