UNIVERSITI KUALA LUMPUR

BUSSINESS SCHOOL
ASSIGNMENT: BUSINESS PLAN

NEWTOWN COFFEE
GROUP MEMBERS:

NAME
NUR ALIA SYAFIKAH BT ALIAS
NUR ZATIL HIDAYAH BT IBRAHIM
RAFIZI B ABDUL RAHMAN
SHAFRIZ B SALIM
MUHAMMAD FAIZ B ISMAIL

ID STUDENT
62288113959
62288113953
62288113751
62288113257
62288313233

CLASS GROUP: AC 30

LECTURERS NAME: SIR LOKMAN SALIM

1.0 EXECUTIVE SUMMARY

The Newtown Coffee will be a one of a kind coffee house / caf located in Granville Avenue,
Chicago. The 1,500 square foot caf will be located in the newly constructed located on the
northeast corner of 1039 West Granville Avenue. The anchor tenant, the Price Chopper grocery
store, has already taken occupancy and the excellent location brings more than 10,000 shoppers
weekly.
Newtown Coffee, aptly named for the aromatic brown liquid that will fill the cup, fills
the void of original cafes in the market area, stands out from its corporate peers with their fast
food

concepts

and

fast

services.

Newtown

Coffee

is

the

alternative

to

fast

food/commercial/coffee shops and offers a much calmer, civilized gourmet coffee experience.
There are no televisions in the caf, but we put some designs from Malaysia culture to make
our coffee shop more attractive with the background music is subtle and work from local artists
will hang on the walls when you dine in or dine out. The caf is well appointed with
overstuffed leather chairs and sofas in a library like setting. The caf is reminiscent of times
gone by yet is cutting edge technologically with WIFI and state of the art espresso machines.
Newtown Coffee measures its financial success in terms of increased market share and
in earnings. With a total local market of $54 million, this is a tremendous opportunity! The
keys to success will be the ability to offer quality gourmet coffees, take advantage of its small
size, and reliance on an outstanding barista staff. In order to achieve these goals, the caf will
offer some the areas finest gourmet beans from local distributors. Because of its small size, the
caf can enjoy larger margins in the form of lower overhead. The cafe will hand select baristas
and offer salaries comparable to the chains. In turn the baristas will be trained to cross-sell, and
sell the higher margin products.

To start the business plan, we NewTown Coffee need to propose financial capital from
bank or any investor that interest to corporate and support our coffee shop to entering new
global business in Chicago. As our financial institution is less than what we needed, we need to
raise the capital to give satisfactory to our consumer in using our accommodation services.
1.1 INTRODUCTION
This business came about the thought of a business partnership under limited company between
the group members to run a coffee shop ventures. Because of this, NewTownSdn. Bhd. was set
up by us in January 2013. There are 5 partners involved to run the business which is Nur Alia
Syafikah Bt. Alias, NurZatilHidayahBt Ibrahim, Rafizi b. Abdul Rahman, Shafriz B. Salim and
Muhammad Faiz B. Ismail. We able to corporate with each other when we all become a friends
when we taking Bachelor of Accounting in Universiti Kuala Lumpur Business School. We have
same vision where are we wanted to build our own coffee shop and expand our business going
global business. Five of us are working in different departments to control our own position to
make our business run smoothly. All of us have extensive experience in the managing and
service industry, and have maintained excellent reputations in this same industry. In addition,
we are capable of handling the sales or management and finance or administration areas,
respectively. NewTown Coffee is a start-up organization that provides coffee shop. NewTown
Coffee opened in January 2013, and we are providing a low cost but exclusive service,
provided by a dedicated experience staff. Taman Melati, Setapak, Kuala Lumpur is our first
coffee shop located.Interiorexterior design givescomfortless towards the customers to dine in
or dine out atthere. Our coffee shopbecomes successful and a lot of customer from others
country like our design, our coffee especially, our service and our Malaysian culture that we
bring in our coffee shop. One of our customers where he is the successful entrepreneur in
Chicago wants to joint ventures with our business. This is the first step we take to make our
business become international business and we build our coffee shop in Chicago where we

know the place such a popular place and a lot of people at there like our coffee so much. Why
we choose Granville Avenue, Chicago for our business because there a lot of reasons which is
we know the people over there love the coffee so much and we attracted them by our unique
design coffee shop and the tastes of the coffee itself.
1.2 BUSINESS OBJECTIVES
The primary objectives of the business plan for Newtown Coffee are below:

To increase revenues $36,000 or 5% in Year 2 and by $73,000 or 10% by Year 3

Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3
Be the Caf of Choice in the Granville Avenueand recipient of the Best Coffeehouse
Award

1.3MISSION STATEMENT
To inspire and nurture the human spirit one person, one cup and one neighbourhood at one
time.
1.4 VISION STATEMENT
To be established and trusted as the perfect coffee business partner.
1.5 GUIDING PRINCIPLES
The Newtown Coffee is committed to values such as excellence, passion, quality, integrity and
leadership which allow them to navigate challenges and provide for future opportunities. These
core beliefs start with their commitment to their products and their employees. The Newtown
Coffee rewards excellence and cherishes loyalty. The caf will work with its employees to
build strong businesses and a secure future.

1.6 KEYS TO SUCCESS

The Newtown Coffee stands out from the competition. Below are their Keys to Success:

Great Products providing exemplary products at market prices will make

customers want to return again and again

Hire Quality Baristas Pay employees rates similar to the larger chains with
opportunities for long term careers and opportunities for advancement with long term

plans to open a second facility

Convert Customers to Connoisseurs - Only 40% of the nations coffee drinkers
consume premium ground and whole bean coffee this will aid in continued growth

1.7 LOCATION/ MAP ENTERING NEW GLOBAL BUSINESS

1.8 ORGANIZATIONAL CHART

Managing Director
SHAFRIZ B SALIM

NUR ALIA
SYAFIKAH
ALIAS

RAFIZI B
ABDUL
RAHMAN

NUR ZATIL
HIDAYAH
IBRAHIM

MUHAMMAD
FAIZ BIN
ISMAIL

HR MANAGER

MARKETING
MANAGER

FINANCIAL
MANAGER

OPERATIONAL
MANAGER

1.8.1 PERSONAL BACKGROUND

Name: Shafriz Bin Salim

Position: Managing Director
Age: 31 years
Hometown: Selangor
Status: Married
Job and Responsibility:
Develop New Town Coffee strategic marketing and sales plans to boost profit and
efficiency, coordinates the effort of every department in this company to achieve
company goals.
Contact No: 013-3795901
Academic Qualification:

Diploma in management (marketing) at Universiti Teknologi Mara Shah Alam

Bachelor of Management in Accounting at Universiti Kuala Lumpur Business

School and
Master in Management (marketing) at Universiti Teknologi Mara .

Working Experience:

October 2009-2012: Work as General Manager at Caramel Crisp Malaysia Sdn.

Bhd, Petaling Jaya, Selangor.

Name: Nur Alia Syafikah Bt Alias

Position: Human Resource Manager
Age: 27
Hometown: Kedah
Status: Single
Job and responsibility:
To maintains the work structure by updating job requirements and job descriptions for
all positions in New Town Coffee. To maintain organization staff by establishing a
recruiting, testing, and interviewing program, counselling managers on candidate
selection, conducting and analysing exit interviews, recommending changes, prepares
employees for assignments by establishing and conducting orientation and training.
Contact No: 016-5685171
Academic Qualification:
Diploma in Human Resource Management Studies at University of Technology
Malaysia;

Bachelor of Management and Entrepreneurship at University Kuala Lumpur

Business School

Working Experience:
HR Officer at Shangri La Hotel; and
HR Manager at Ikano Pte. Ltd. Damansara.

Name: Rafizi Bin Abdul Rahman

Position: Operational Manager
Age: 29
Hometown: Kedah
Status: Single
Job and responsibility:
Improve the operational systems, processes and policies in support of organizations
mission. Play a significant role in long-term planning, including an initiative geared
toward operational excellence. Oversee overall financial management, planning,
systems and controls, management of operational budget in coordination with the
Finance Manager, invoicing to funding sources, including calculation of completed
units of service, to be more responsibility for maintenance, transportation and service.
Contact No: 019-4281303
Academic Qualification:
Diploma in Management at University Technology PETRONAS; and
Degree in Management at University Kuala Lumpur Business School.
Working Experience:
Operation Leader at Perfect Food Manufacturing (M) SdnBhd, Melaka.
Logistic admin at KLIA1 AIRPORT.

Name: Nur Zatil Hidayah Bt Ibrahim

Position: Financial Manager
Age: 28
Hometown: Kelantan
Status: Single
Job and responsibility:
Play a significant role in long-term planning, including an initiative geared toward
operational excellence. Oversee overall financial management, planning, systems and
controls, management of operational budget in coordination with the Finance Manager,
invoicing to funding sources, including calculation of completed units of service to
boost more profits and lower cost.
Contact No: 017-6257110
Academic Qualification:
Diploma in Accounting at University Technology PETRONAS; and
Bachelor in Accounting at University Kuala Lumpur Business School.
Working Experience:
Financial Leader at PNB BERHAD; and

Assistant finance manager at Texchem Restaurant System Sdn Bhd, Subang Jaya,
Selangor

Name: Muhammad Faiz Bin Ismail

Position: Marketing Manager
Age: 30
Hometown: Perak
Status: Married
Job and responsibility:
Responsible to perform many duties aimed at developing and implementing the long
and short term marketing strategies of his employer. The board scope of this task
required her to interact heavily with varies department of her firm, including research
and development, manufacturing, supply chain, sales and in same industry.
Contact No: 019-2484839
Academic Qualification:
Diploma in Business Studies at UniversitiTeknologi Mara, Melaka; and
Degree in Management and Entrepreneurship at University Kuala Lumpur Business
School.
Working Experience:
Marketing Executive at IKEA KL; and
Marketing Assistance at Public Bank Berhad, Kuala Lumpur.

2.0 INTERNATIONAL STRATEGIC GOALS AND OBJECTIVES

2.1 Marketing Strategy and Implementation
The Newtown Coffee will provide a quiet and relaxing environment to enjoy the coffee and
smoothies and an opportunity to visit with friends, catch up on ones email, or read a chapter of

a book. The Caf will fill the great void providing originality in a sea of facsimile, corporate
coffee shops. The cafs baristas will be extremely knowledgeable and offer assistance in any
coffee purchase while simultaneously providing customers with outstanding service. It should
be equally a place to relax as a place to plan a revolution. A coffee house should be a showcase
for artists, a forum for ideas, and a catalyst for conversation. Honestly, we are confident that
our Newtown Coffee will truly be a coffee house when you have more to say about what goes
on here than we do.
2.2 SWOT Analysis
The SWOT analysis examines the cafs strengths, weaknesses, opportunities and threats of an
organization. Specifically, SWOT is a basic, straightforward model that assesses what an
organization can and cannot do as well as its potential opportunities and threats. The method of
SWOT analysis is to take the information from an environmental analysis and separate it into
internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is
completed, SWOT analysis determines what may assist the Newtown Coffee in accomplishing
its objectives, and what obstacles must be overcome or minimized to achieve desired results.

2.2.1 Strengths
Based on its smaller size, the fact that it is not a franchise, the Newtown Coffee is a unique
coffee shop concept unlike any other in the West Granville Avenue.
The owner has first-hand experience, in operating and starting new restaurants,

 Handpicked baristas will bring professionalism and enthusiasm to the shop.

2.2.2 Weaknesses
Franchises are the easiest way and often the safest conduit to start a caf; the caf will not
have the backing of one of these established entities.
The Newtown Coffee has a minimal budget and is competing against larger and more
established coffeehouses for market share.
2.2.3 Opportunities
The Chicago demographics support the need for a unique coffee shop.
Additional opportunities to target the active and recently retired target market and 45 years+
age group.
A small slice of a much bigger pie is the goal. Only 40% of the nations coffee drinkers are
consuming premium ground and whole bean coffee. Encouraging coffee drinkers to become
coffee connoisseurs is the key to continued growth.
The local coffeehouse/caf market is $54 million
2.2.4 Threats
The Morning Glory Coffee shop is currently for sale. It should be another independent
purchase this caf, it could pose significant threat to market share.
2.3 Strategy Pyramid
In the short-term, a number of promotions and activities are planned around launch of the
business to create awareness. The coffee shop will have a contest offering 20 bottomless mugs

and will publicize this promotion via radio advertising, as well as countertop displays and
posters in the shopping plaza.
In addition, during its first year of operations the coffee shop will pass out a limited number
of coupons for a free cup of coffee to prospective customers visiting the shopping centre.
2.4 Unique Selling Proposition (USP)
The Newtown Coffee truly stands out from a crowded sea of coffee chains and franchises.
What sets them apart from the competition is primarily its smaller crozier size combined with
premium coffees served by knowledgeable baristas providing so much energy and enthusiasm
for the products they sell.
2.5 Competitive Edge
The Newtown Coffee competitive edge, its size, is also its greatest attribute. Because they are
small there is no red tape, and they can easily adjust business hours to say accommodate an
afterhours book reading session whereas the corporate chains do not provide such an
accommodation. The Newtown Coffee will truly cater to its patrons needs.

2.6 Marketing Strategy and Positioning

The Newtown Coffee utilizes a focus strategy on its market. By specifically targeting three
primary segments they can cater specifically to their needs :-

Senior Market (age 45+)

The Newtown Coffee will target this market simply by its well selected location. Although this
demographic group could readily drive downtown, they prefer a local caf to unwind and relax
and historically become some of the most loyal patrons
Newly Hired Employees
The caf will attract regular customers (weekly or more) - particularly the newly employed
(first job) by providing free WIFI services and providing interesting games in the customer
area.
Young Families
The third targeted markets, younger families, often find those coffeehouses are not kid
friendly. The company has long term plans to create a combination coffee shop / play area so
that parents and caregivers will have a place to meet with other adults while the children can
enjoy the bounce houses, slides and indoor playground equipment.
2.6.1 Positioning Statement
The Newtown Coffee is a gourmet coffee lovers gem. It is truly one of a kind coffee house
offering outstanding gourmet coffees and blends, served by enthusiastic and knowledgeable
baristas, in a warm, relaxed environment. It is the place to go to visit with friends or cosy up in
a quiet corner with a good book either from the library or from one of the patrons personal EBooks.
2.6.2 Pricing Strategy
The Newtown Coffee primarily utilizes competition based pricing. The caf does not utilize
coupons and discounts (other than opening promotion) because they believe that the most

valuable customer demographic of daily coffee consumers is not influenced by discount

programs or coupons.
2.6.3 Promotion and Advertising Strategy
Online Advertising - The Newtown Coffee will advertise regularly on popular social media
sites, such as Facebook. Compared to traditional print advertising, this is a cost effective tactic
that will allow them to reach prospects in a highly targeted way (e.g., based on criteria such as
age, gender, geography, etc.).
Web Site - the Newtown Coffee will develop a simple Web site, which will provide basic
information about the business, the menu, and links to their presence on the aforementioned
social media channels.
Radio Advertising - During the first six months of operation, and during the busy holiday
shopping season, the business will advertise on local radio stations.
2.6.4 Website
The Newtown Coffee will have a simple website identifying its menu items of gourmet coffees,
smoothies and pastries, along with the address, map and hours of operation. The website will
also have a calendar of any upcoming events or sponsorships. The site will also have links to
their social media sites such as Facebook, Twitter, and Instagram.

2.6.5 Marketing Programs

The caf will also rely on signage and draw to its location. Price Chopper brings 10,000
shoppers weekly to its location

2.7 Sales Strategy

The Newtown Coffee will use the following methods to increase sales revenue
(as recommended by Andrew Hetzel on Better Coffee, Better Business):
The menu will focus on the most profitable products sold. The caf will always draw
customer attention to the most profitable products.
As warranted, the caf will raise prices to bolster brand image. Prices communicate a
perceived value of a product; so if set too low, the customers might assume that the beverages
are inferior compared to the competition.
Monitor flavouring inventory Excess flavouring inventory ties up capital and valuable back
room space for storage. The caf will utilize 4-6 varieties, including sugar free offerings.
Control waste and theft audit sales and inventory reports to evaluate ingredient waste due to
inefficient preparation, returned drinks and employee consumption. Retail locations can easily
waste 20% or more of their daily sales these three key categories, which is a substantial and
unnecessary loss.
Run employee sales contests The baristas are the salespeople and have a great deal of
influence over the customer ordering process. All baristas will have some form of sales and
customer service training to make each transaction active, rather than passive. Sales contests
will emphasize high margin items or cross selling.

2.7.1 Sales Forecast

The sales forecast assumes a conservative 5% increase in revenues during Year Two and 10%
increase in Year Three. The following chart shows estimated sales over the next three years.

Table 2.7.1 Annual Sales Forecast

Annual Sales Forecast
Product

Year 1
$ 494,800

Year 2
$

519,900
$
95,800

Product / Service 2

90,300

Product / Service 3

90,300

Total Income

675,400

95,800

Product / Service 2

$
$

74,294
26,932

$
$

Product / Service 3

18,060

Total Cost of Sales

119,286

Gross Margin

556,114

572,500
$
106,000
$
106,000
$

711,500
Cost of Sales
Product

Year 3

784,500

72,968

28,572

80,351
$

19,160

31,614
$
21,200
$

120,700
$

133,165
$

590,800

651,335

2.7.2 Sales Programs

The Newtown Coffee will run employee sales contests The baristas are the salespeople and
have a great deal of influence over the customer ordering process. All baristas will be required
to have sales and customer service training to make each transaction. The sales contests will
emphasize high margin items and cross selling.
2.8 Legal
The Newtown Coffee is organized as an S-Corporation formed in the state of Kansas.
2.9 Start-Up Costs
Following are needed start-up costs associated with the Newtown Coffee

Table 2.9 Start-Up Costs

Start-up Expenses
Operating Capital
Salaries and Wages
Insurance Premiums
Beginning Inventory
Legal and Accounting Fees
Rent Deposits
Supplies
Advertising and Promotions
Licences
Other Initial Costs
Working Capital (Cash On Hand)
Total Start-Up Expenses

Amount
$
$
$
$
$
$
$
$
$
$
$
$

Start-Up Assets
Real Estate
Buildings
Leasehold Improvements
Equipment
Furniture and Fixtures
Vehicles
Other Fixed Assets

$
$
$
$
$
$
$

Total Start-Up Assets

4,800
2,075
2,000
4,000
8,000
8,000
28,875

71,725
38,275
14,000
-

124,000
$
152,875

Total Required Start-Up Costs

Table 2.10 Pro Forma Profit and Loss

Pro Forma Profit and Loss
Income
Total Income
Total Cost of Sales
Gross Margin

Year 1
$
675,400
$
0
$
675,400

Year 2
$
711,500
$
0
$
711,500

Year 3
$

784,500

784,500

Expenses
Total Salaries and Wages

Advertising

8,800

9,600

9,600

Car and Truck Expense

Credit Card Charges

Insurance

3,600

3,600

3,600

Legal and Accounting

816

816

816

Office Expenses

Rent on Business Property

24,900

24,900

Business Expenses

Rent on Equipment

24,900
$

Repairs

2,200

2,400

2,400

Suppliers

9,548

10,416

10,416

Telephone

4,800

4,800

4,800

Travel

Utilities

14,400

14,400

14,400
$

Amortized Start-Up

Expenses
Depreciation

18,514

Total Business Expenses

18,514
$

18,514
$

89,446

Total interest Expensed

87,578
$

89,446
$
0

Net Operating Income

Miscellaneous Expenses

Less Income Taxes

Net Profit (Loss)

587,822
$
0
$

622,054
$
0
$

587,822

622,054

695,054

$
$

0
695,054

Table 2.11 Pro Forma Balance Sheet

Pro Forma Balance Sheet
Assets

Year 1

Year 2

Year 3

Current Assets
Cash

Accounts Receivable
Inventory
Prepaid Expenses

39,891
$
$
$

Other Current

12,875
$

12,875
$

Total Current Assets

8,000
$

8,000
$

60,766

141,428

Fixed Asset
Improvements

0
0

120,553
$
0
$
0
$

167,479
$
0
$
0
$
12,875
8,000

188,354
$ 71,725

Furniture and Fixtures

71,725
$

71,725
$ 14,000

$ 14,000

Equipment

14,000
$

$ 38,275

$ 38,275

Real Estate
Buildings
Other Fixed
Total Fixed Assets
Less Accumulated

38,275
$0
$0
$0
$ 124,000
$ 18,514

$
$
$
$

$
$
$
$

Depreciation
Total Assets

0
0
0
124,000
$ 37,029
$

166,252

0
0
0
124,000
$ 55,543
$ 256,811

228,399

Liabilities and Owners

Equity
Accounts Payable
Notes Payable
Mortgage Payable
Line of Credit Balance
Total Liabilities
Owners Equity
Common Stock
Retained Earnings
Total Owners Equity

$
$
$
$

$
0
109,362
0
0
109,362
$
$
$

22,875
34,015
56,890

$
$
$
$

$
0
86,336
0
0
86,336
$ 22,875
$ 119,189
$ 142,064

$
$
$
$

$
0
60,645
0
0
60,645
$ 22,875
$ 173,291
$ 196,166

Total Liabilities and

Owners Equity

228,399

$ 256,811

166,252

3.0 INTERNATIONAL COMPETITIVE STRATEGY STATEMENT

3.1 Business Concept
The Newtown Coffee will be a coffee house / caf located in West Granville Avenue,
Chicago.The Newtown Coffee will be located in the newly completed on the northeast corner
of 1039 West Granville Avenue. The caf will serve gourmet coffees, espresso and drip coffee,
lattes, and smoothies. The simple pastry offerings may vary with seasonality but the primary
line will be muffins, breads, cookies, scones, and rolls. All pastries will be supplied daily by a
local bakery. The caf will be owned and operated by Jones Owen, a veteran restaunteur with

several years experience running and managing chain restaurants. The caf will be open for
business Monday to Saturday 8am to 12am and closed on Sunday. Jones had a lot of
experience. In college, he worked in a campus coffee house for seven years, eventually rising
to the position of assistant manager. Following graduation, Jones secured a business
development position for regional restaurant chain, which provided additional first-hand
exposure to the food and beverage industry especially the steps involved in establishing and
open his own caf and strategic locations.
3.2 Outlet Description
The Newtown Coffee will have seating for 45 patrons. The rent is $20 000 a month. The site
consists of 1500 square feet of leased space consisting of a dining room, a coffee bar, two
restrooms, and a storage room in back. To be used as a restaurant, this storefront needs to be
plumbed and wired appropriately. Painting, new floors, and countertops are also needed. A
custom coffee bar needs to be built. With materials bought on sale and volunteer labor, the cost
to renovate will be $40 000. The coffeehouse equipment will consist of two commercial
espresso machines; air pots a commercial blender, commercial brewer, and top loading coffee
bins, barista syrups, cold drink dispenser, frothing equipment, a commercial refrigerator,
microwave and stainless steel prep bar. The cost for the equipment is $37 000. The furniture
will consist of leather couches, and chairs (purchased at auction), coffee tables, bookcases, and
window treatment. The artwork will come from local artists and will be sold on a consignment
basis. The books were secured via donations. Total cost to furnish is $11,000. Other startup
expenses will be dishes, furniture, rent deposit, and marketing.
3.3 Location and Facilities

The Newtown Coffee is located in the highly desirable in West Granville Avenue, on the
northeast corner of 1039 West Granville Avenue. The property is located in an excellent
location. The property is 85% leased with Price Lower as the Anchor Tenant.
3.4 Products/Services Descriptions
Then Newtown Coffee primarys offering is gourmet roasted coffees with such varieties such
as mocha, white mocha, candy bar latte, and brewed coffee. Complementing the coffee will be
a smoothie line including wild berry, strawberry, peach, mango and lemonade. Rounding out
the simple menu line will be pastries obtained with an outside supplier, freshly made and
delivered daily. The pastry offerings may vary with seasonality but the primary line will
muffins, breads, cookies, scones, and rolls.
3.5 Competitive Landscape Consumer
The taste and personal income drive demand. The profitability of individual companies
depends on the ability to secure prime locations, drive store traffic, and deliver high-quality
products. Large companies have advantages in purchasing, finance, and marketing. Small
companies can compete effectively by offering specialized products, serving a local market, or
providing superior customer service. Specialty eateries, which include coffee shops, are laborintensive: average annual revenue per worker is about $50,000. Coffee shops compete with
businesses such as convenience stores, gas stations, quick service and fast food restaurants,
gourmet food shops, and donut shops.
3.6 Competitors
i) Take Five Coffee
This competitor operates from a 4,300 square foot space. The caf has WI-FI. In addition to
serving coffees and smoothies, the caf offers more food offerings with a full service kitchen

offering light breakfasts, and sandwiches and wraps. In the evenings the caf has musicians
performing on a small stage. The Caf also has a full liquor license. The broad offerings of
amenities do not make this a true comp for the subject.
ii) Wood Coffee
This competitor operates from a 6,300 square foot space in a shopping center. The shop was
established in 2001 and in 2011 reported $3.5 million in revenues. The shop employs 31
employees and provides music on the weekends. The subjects advantage is its smaller, cozier,
and quieter environment.
iii) Starbuck Coffee International
With more than 21,000 stores in over 65 countries, its clear that their passion for great coffee,
genuine service and community connection transcends language and culture around the
world.Coffee shops had been around for a while, but in the Chicago, they were small and
tucked away, and thought of as quiet venues for getting away from it all to enjoy a cup of
coffee.Starbucks big idea was to make good coffee and put it right where customers would
have easy access to it. They came up with the winning formula of quality and convenience. As
demand for their coffee grew, they knew they had a hit, so their vision was to have a franchise
everywhere they thought customers were likely to be. They created popularity, and made coffee
an affordable luxury, and a treat beyond something average you drank in the morning after you
woke up.
Starbucks also introduced the market to the idea of coffee snobbery, where you
could customize your coffee drink exactly as you liked it. In the US, customers seemed to love
the exotic and complicated coffee drinks you could get, as opposed to the average cup of
filtered coffee made in giant percolators and kept on a heating element all day long.

4.0 MARKET ANALYSIS

4.1 Target Market Segment Strategy
Most adult coffee drinkers said their lifelong habit began during their teenage years. In fact,
54% said they began drinking coffee between 13 and 19. Another 22% reported their coffee
cravings started between the ages of 20 and 24. This means that 76% of adult coffee drinkers
began drinking coffee by the time they were 24. So, despite the large amount of marketing and
advertising directed at the younger age groups, savvy coffee shop owners will not forget to
cater some of their offerings to the adult and senior market. This is from (National Coffee
Drinking Study). The Newtown Coffee will offer a unique experience for coffee aficionado by
offering a quiet and cozy yet sophisticated cafe and offer a sense of refinement and peace in an
otherwise hectic and fast paced world. While other coffee shops cater to convenience with
drive through or loud music venues late into the night, the Newtown Coffee will stand apart
from its competitors with its quiet yet soothing ambience, capturing a truly unique (and much
needed) market niche.

4.2 Market Needs

The Newtown Coffee customers, by nature, are looking for something special thats why they
are willing to pay so much for a cup of coffee! Many customers of the big national chains,
while satisfied with their daily coffee would be intrigued to find a local coffee that is different.
4.3 Market Trends

Unique products (specialized roasts, local ingredients, locally themed or named drinks, custom
drinks by the star barista, etc.) .Games, puzzles, mind benders and other activities that
encourage customers to linger over their coffee .Hosting or sponsoring local events
(entertainment, readings, book clubs, etc.). Using technology to creatively compete in
marketing with the big chains services like Foursquare, Yelp, and Google Places can increase
visibility in the local market. Delivering amazing service from knowledgeable baristas spend
lots of time training staff and utilize online services like the American Coffee & Barista
School . Selling coffee-related items (and track down any co-marketing opportunities with a
local community college or other student-related group in the area) .The sales of coffee
dominate sales of hot beverages, making up 83.3% of the total hot beverage market in the
Chicago Coffee consumption is expected to increase through 2015 at an average annual rate of
2.7%, while tea consumption is expected to increase through 2015 at an average annual rate of
3.1%. Positive expectations for continued growth in coffee sales, despite its mature product
position in the market, are due to the innovations in premium coffee products (pods, singleserving instants.

4.4 Market Growth

Market Growth Despite the economic woes, according to the National Coffee Drinking Study
suggests consumers were set on drinking good coffee and visiting their local coffee shop even
in the face of an uncertain economy. The sales of coffee dominate sales of hot beverages,
making up 83.3% of the total hot beverage market in the Chicago Coffee consumption is

expected to increase through 2015 at an average annual rate of 2.7%, while tea consumption is
expected to increase through 2015 at an average annual rate of 3.1%. Positive expectations for
continued growth in coffee sales, despite its mature product position in the market, are due to
the innovations in premium coffee products.

5.0 CONCLUSION

New Town Coffee is a creative space that offers a wide array of food including delectable
brunch, coffee and desserts to enjoy. However we opt to become a cultural cafe that not only
focuses on coffee and food, but also art and music, encouraging customers to linger around
intimate surroundings and friendly staffs.

We conclude our cafe can delivering the highest standards of excellence food and
beverages. Besides that , develop enthusiastically satisfied customers all of the time and
contribute positively to our communities and our environment . So , our cafe can recognize that
profitability is essential to our future success and make perfect place to go after work for
everyone to unwind and catch up with friends .

6.0 BIBLIOGRAPHY
James Manktelow. (1996) SWOT analysis. Retrieved from http://www.mindtools.com/pages/
article/newTMC 05.htm. (15 September 2015: 3.45 p.m.).
Hisrich, R. D. (2009). International Entrepreneurship.(Second Edition). Developing and
Managing a Global Venture. SAGE Publications Inc. (18 September 2015: 1.40 p.m).

7.0 APPENDIXES