Marketing Management and Communication

The business plan seeks to develop a business enterprise named the Easy Access coffee cyber. This is a modern internet offering cybercafé that provide its services plus a subsidized cup of coffee. Other than that is will assist its customers in filling online stuff and assist the customers in any dimensions that may arise. The mission of the business is to provide fast and reliable internet and other services to all the esteemed customers. The aim is to enterprise is to realize a market share in the overly competitive technological business in the provision services. The objectives of the business are as follows

• Achieving a new market where it will be able to make profits
• Introduce new and become the largest market shareholder
• Meet the consumer demands and satisfactions by delivering the services in time to all customers
• Achieve the organisational goals and objectives as well as making profits.
• Use the internet and social networking sites as well as the mobile phones to market the company’s services.
• Create a positive company image and repetition so as to place itself above the par of other competitors.
• Become the leading cyber cafe in the region in a period of six months.

The business targets the whole population and has no age discrimination. However, some of the services like photocopying, scanning, lamination; printing and other services target the school students who form the largest population of the city. The teaching targets the old and the young who are not versed with the new technological change. This will attract them as the company tries to narrow the gap between the old and the youth and make them technologically savvy. For easy access the business will be located around bus stations, restaurants, schools and tourist attraction zones. These areas have the targeted clientele and can make the company achieve its objects before the end of the first financial year. The company has three shareholders whose partnership is based on the contributions for capital. It will employ ten employees and operate as a team towards the realization of its goals and objectives. The capital is raised by the partners and no bank loans are used whatsoever. It operations will be based on a premise on the ground flow so that the old and the young can access it with ease.

There is a bright future for the enterprise and the industry. However, stiff competition is expected because of reduced cost of broadband cost. The business will capitalize this and provide fast and reliable services that are of its kind and gain 50% of the market share. It will also lower its prices to attract many customers. This way it will be possible to attract the more customers and because of its services it will self advertise itself. The business projects a profit of $250,000 at the end of the first financial quarter. The projection is low but because of the competition, entry costs and other barriers this is good start for the business. Hoping no economic recession the profits will double in the first quarter of the second financial year. By the end of the second quarter it expects to open other branches and invite any willing investor to help in increasing the capital base. The business will be a huge success.

Business Plan – New Startup Business

General Company Description

The business plan provides the development of a business enterprise. The business is based in offering of the technological services that are required by the population. It will involve establishment of a cybercafé that will offer other services like photocopying, printing, scanning, typesetting among other services. It will also involve the offer of teaching services to computer packages and coffee to the clients. It will be named the Easy Access cyber coffee shop.

Mission statement

The mission of the business enterprise is to provide fast and reliable internet and other services to all the esteemed customers.

Company Goals and Objectives

The goal of the business enterprise is to realize a market share in the overly competitive technological business in the provision services. A technological service provider, the business will employ the SMART principle in making its objectives when entering a new market (Mulin 2020, p. 44). The following are the business objectives’

• Achieving a new market where it will be able to make profits
• Introduce new and become the largest market shareholder
• Meet the consumer demands and satisfactions by delivering the services in time to all customers
• Achieve the organisational goals and objectives as well as making profits.
• Use the internet and social networking sites as well as the mobile phones to market the company’s services.
• Create a positive company image and repetition so as to place itself above the par of other competitors.
• Become the leading cyber cafe in the region in a period of six months.

Business philosophy

The business will offer unique services at a lower prices because it beliefs in customer satisfaction and loyalty.

The business enterprise will target school students who require computer services and other related services. It will also target the young and the old who need to learn the operation of computers as starters. In general the business targets the whole population because the world has changed to technological services and nobody should be left out. The industry is growing and becoming more competitive because of the dropping internet broadband rates. It is deemed to be fully competitive and congested in the next five years as we are living in the technological era. But because of the diversification of the services the enterprise will be providing it will be possible to maintain its market services. It will also take advantage of the need for the internet services and the increased demand for other services by students. By this it will provide these services to the customers at low prices but in quality and gain, expand, and maintain market share.

Before launching the company several factors which are essential in establishing process have been put into consideration. In this case, the company is likely to use SWOT analysis in determining the factors. The aim SWOT analysis will be to identify the key internal and external, So as to achieve the marketing objectives (Dooley, 2006). Dooley, (2006) notes that Internal factors make the strength and weaknesses of the organization from the inside side. External factors involve the opportunities and threats posed by the external environment directly to the company (Dooley (2006).The following SWOT analysis will give the main strengths and weaknesses found within the industry and description of the opportunities and threat that face the business enterprise from the new market. Stokes and Lomax (2008) suggest that internal and external factors determine the pricing of a commodity.

Strengths

• Excellent staff and customer care which will meet customer needs thus attracting more customers.
• They have the technological requirements that will be useful.

Weaknesses

• The struggle in getting relevant consumers so as to start getting ploughed back earnings.
• Limited market knowledge which will take long time and huge budgets in creating the new brand awareness.

Opportunities

• Growing market foreseen to have significant percentage customers due to introduction low prices and services.
• Increase the customer clientele since through p loyalty and customer satisfaction.
• Be able to lower operating costs through lowering of the variable cost since the business will be prospected to make profits.

Threats

• Competition from other already established cyber cafes and internet service providers.
• Market downsizing and economic recession which is facing many companies
• High market entry capital and costs

Other factors to consider include finance available, technology advancement and cost incurred in installation of new machines as well as advertisements. Other internal factors affecting pricing according to AlKumar (2001) are

• Image the company is seeking
• Price elasticity of demand of the services
• Marketing and corporate objectives of the company
• Aspects of marketing mix in relation to pricing
• Use pattern of the product and the turnaround of consumers

The enterprise major competitive strengths will be providing services to the whole population. This means that all people will feel free to have the services because there is no age discrimination. I have wide experience in management and cyber operation, so I will be able to provide my past experience and skills in running the business. I am a computer enthusiast and have taken keen understanding on how computer and other machines operate. So the need for a programmer, and technological provision and management is catered by my experience and skills. The enterprise will be a partnership of 3 people, because their need to distribute the management post. Also the other two partners have experience in business management, programming and customer care services. This will lower the costs of operations. The partnership is also necessary in the provision of the required start up capital.

Product and Services

The business enterprise is as service provider of internet and other related services. It will offer photocopying, binding services; typesetting, scanning, assisting customers fill in online documents and business transactions. Because of the increased demand of the technological services it will be possible to gain the required market share. Through the use of the cheap rated internet broadband the enterprise will be able to take the advantage and use the fastest broadband. This will make it possible in provision of the fastest internet at low cost. The pricing of the services are interdependent and will be lower than the lower by 1%. The company will lower the prices with the aim of gaining large clientele base and huge market share.

Marketing Plan

The market research conducted is based on both primary and secondary market research. Through the chamber of commerce and new business registry office it will be possible to determine the number of cyber cafes. The secondary research will focus on the number of the cyber cafes are counted and located in the geographical location. According to Mullin (2010, p. 44) marketing objectives should be based on the SMART principle so as to realise the market share and organisational goals. The SMART principle comprises- specific, measurable, achievable, reliable and time conscious/bound. For the Easy Access cybercafé these principles have been put into consideration during the formulation of the marketing objectives. The set marketing objectives are achievable, time bound realistic, specific real and measurable. The company will employ the 4ps in the marketing strategy so as to achieve its organization goals and objectives. The 4Ps include following as given by Kurtz, Mackenzie and Snow (2009, p.424)

• Product or services
• Price
• Promotion
• Place (distribution)

Product or services

The business will provide the following services, Internet browsing, photocopying, typesetting, and scanning of documents, lamination among others. The enterprise will also provide online services like e-banking, filling of online documents and offering teaching services to the young and the old. The unique aspect about this is that the prices are low and customer friendly. The customers will be able to enjoy the services provided to them. It will also provide coffee to the clients at a subsidized price that is below the normal rate by 20%. This will be used to attract more customers.

Place

Lamb, Hair, and McDaniel (2006, p. 46) notes that strategic placement of the store is necessary for customer attraction and convenience. Several outlets will be set around bus station, schools and tourist attraction place. These places will target the targeted population and achieve the required market share. The enterprise will provide its services directly to its customers.

Price

The prices will be below the normal market price by 2%. This is aimed to attract more customers and maintain high customer clientele. There will be discount esteemed customers to maintain loyalty. AlKumar (2001) notes that pricing is essential and should meet the consumers’ expectation in relation to the market demand and the quality supplied. He adds that it should meet the marketing strategies of the organization. The pricing are not below the pioneers in the industry but the little reduced will attract more customers.

The pricing is set according to Gerber and Du Plessis (n.d, ) suggestions

• Value based pricing
• Cost based pricing
• Competition based pricing

Promotion

To get the attention of the customers the company will use online advertisement as one way of promoting the sales (Mullin 2010, p.32). Social networks like face book, MySpace, twitter among many other will be used to advertise. The company will also launch a blog where customer views and comments will be accessed and any changes rectified.Because we are operating on low budget the flyers will be used around the schools restaurants, and churches. These selected modes of advertisement are cheap and cost effective. Through these it will be possible to create a positive image and a brand that is unique in the market.

The company will create a unique and world class niche in the internet provision business. It will be noted that the clientele or the consumer target group is made of a population that is both growing and embracing the new technology. Accordingly, this will catapult the business to a next level. The reason is because the enterprise is diversified and located in different places within the city. Lastly the company is deemed to provide the services with the best available customer care agents and supporting staff. The company expects to gain a market share and make profits that will cover the initial costs within the first financial year.

Operational Plan

The Easy Access café will provide its services within its premises. The quality will be checked through customer satisfaction where a blog will be created for comments to be placed by customers. It will also have comment boxes located around the business premise. Customer satisfaction will be number one goal of the enterprise where customer services will be of high quality. The location of the enterprise is in a convenient place where it can accommodate 100 computers. It should also have adequate power supply that is uninterruptable and possibly on the ground floor for easy access. It will have insurance cover against theft and fire and practice code of ethics. Because it serves the general population, sites with adult theme or materials will be blocked and be provided under request to persons over 18 years. A license and operation permit will also be applied for. The enterprise will employ 10 employees apart from the partners. This will allow the personnel serve at least 10 customers at a given time. The labor is skilled labor with employees with skills in computer and related courses. The employees will be paid on monthly basis according to the ILOs requirements.

Management and Organization

The management team will comprise of the partners where one will be in charge of the finance. He will oversee the financial transactions and keep all the financial records. The second will head the operations and offer technical services to the 10 employees and to customers. The third partner will deal with the customer care department. He/she will foresee the daily running of the enterprises and will also maintain the customer clientele and the expansion of the enterprises. The professional and advisory support will include, management advisory board, attorney, accountant, insurance agent, banker, consultant, mentor and other advisors.

Personal Financial Statement

The financial statements will be available after six months of operations. This is because the enterprise is not going to borrow capital for the start up. Instead the enterprise will use the savings each partner has and family contributions. Other than that the statements on what is contributed by who will be put in a financial statements.

Startup Expenses and capitalization

The start up expenses of the business enterprise will be catered by. The family contributions will be used to finance the expenses and any other miscellaneous that may arise. The miscellaneous is about 10% of the whole total coat required in the establishment of the enterprise. The contribution by the partners forms the require capital for successful running of the business. The finances cover up to two months pay for the employees. With experience in cyber café it is easy to estimate the required total capital. The start up expenses and capitalization will cost $100,000.

Financial Plan

The financial plan will consist of a 12 month profit and loss projection, cash flow projection, a balance sheet, and break even analysis. The profits projections in the first year are estimated to stand at $250,000. The assumption made is that the enterprise will face competition and cannot make abnormal costs. It has also been assumed that the entry expenses are high and that a lot of costs are involved in the establishment of the business. All the costs and expenses are included in the financial plan (Sloscore, 2010). A sample is available at the SCORE website. Opening day balance where the assets and liabilities are recorded. The difference between these two gives the equity of the company.

Break even sales = fixed costs/ (1-vaiable costs).

The fixed cost is $75,000 and variable cost is 0% the enterprise does not expect any change in variable costs they are estimated to remain at par in the whole year. So the break even will be $75000

References

AlKumar, N. (2001).Marketing Managemen. India, Anmol Publications PVT. LTD

.Dooley, D. (2006). Business. Book 2. Oxford: Heinemann.

Gerber & Du Plessis (n.d). FCS Marketing Communication. Capetown, Pearson South Africa

Kurtz, D. L., Mackenzie, H. F., & Snow, K. (2009). Contemporary marketing. Toronto: Nelson Education.

Lamb, C. W., Hair, J. F., & Mcdaniel, C. D. (2006). Essentials of marketing. Mason Ohio: South-Western

Mullin, R. (2010). Sales promotion: how to create, implement & integrate campaigns that really work. Philadelphia: Kogan Page Limited

Stokes, D., & Lomax, W. (2008). Marketing: a brief introduction. [S.l], Thomson.

Sloscore. (2010). Financial plan. Web.