Colombian Coffee Essay

El Dorado Coffee Shop is a start up business projected to open its doors to the public next year. Some of the priorities of the business are focalized in giving the consumer the ulti- mate coffee experience, by offering them with an extensive variety of options that range from a soft favored taste to a strong taste of pure coffee for those who enjoy their coffee black. Moreover, the company has designed not only to pro- vide the best quality of Colombian coffee, but has also thought about the consumer’s pocket, offering one of the most competitive prices in the coffee premium market. The firm is able to have this competitive price by importing the coffee straight form Colombia which also allows us to control the quality and providence of our product. The company will be managed and directed by its only owner Juan De La Parra as their CEO. Also, the store will have one general manager in Colombia who will be in charge of exports. WHAT WE SELL El Dorado Coffee Shop will be offering its costumer with a variety of coffee products described bellow. †¢whole beans †¢blended coffee †¢Organic †¢Single origen †¢Instant coffee †¢decaf WHO WE SELL TO In order to identify the main target market, El Dorado Coffee Shop has divided the general popu- lation of the Chicago area by age, focusing on the population over 40 years old with a middle to a high income. The most important group of customers are those coffee lovers who have some time during the morning to brew their own cup of coffee before starting the day. The idea is to target those people who are not completely satisfy by any kind of quality coffee but would rather prefer the taste of a more high quality premium coffee taste CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential,trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee FINANCIAL SUMMARY Financial Highlights El Dorado Coffee Shop will fund its starting up costs by using personal savings and probably a loan. However, because the initial plan of initiation does not necessarily requires a physical loca- tion since the coffee could be distributed and promoted by internet and local establishments, most of the investment would be used to purchase the product. Sources of the funds include: †¢5,000 Personal savings †¢2,000 to 5,000 Loan ( Depending on the demand and the current coffee production in Colombia. Also we would have to consider the fluctuation of the price depending on the world demand) Financial Highlights by Year CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee Company COMPANY OVERVIEW Overview: The company was founded as an initiative topromote an d distribute Colombian coffee in a relatively unexplored market. The main idea of the company is to create awareness of Colombia’s coffee inside a heavy coffee drinking society as the United States. Taking into account that the liquid capital that is go- ing to be used for the company’s creation is quite small, we are focusing on creating a web page where large amount of potential customers can be reached with a relatively low cost. Moreover, the web page will also serve as a medium to order any of our products, facilitating product distribution and the acquisi- tion of the product MANAGEMENT TEAM. The management team for el Dorado Coffee Shop will consist of the following personnel: Juan De La Parra, CEO. Some of the main responsibilities will be †¢Keep the store with the sufficient supply in order to maintain the demand while consider- ing the freshness of the product. †¢Coordinate and promote events that create awareness of Colombian coffee. †¢Coordinate monthly meetings with the general manager in Colombia. †¢set up goals and sales projections. Edgar Cruz, General Manager in Colombia. †¢Coordinates the exports to the U. S from Colombia †¢In charge of all legal documents. †¢Web site maintenance. Employees. (2 people). †¢Packaging and delivery CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee Products and Services PRODUCTS AND SERVICES. This company will specialize in selling and distributing coffee as its main product. The coffee will be sold in different presentations and sizes. The presentations include whole bean, blend, or- ganic and Instant coffee. Kind †¢whole beans †¢blended coffee †¢Organic †¢Single origen †¢Instant coffee †¢decaf Size †¢Half pund †¢One pound COMPETITORS The essence of the company is based on meeting the expectations of a specific market share within the coffee drinkers, therefore competitors would be measured in the degree of how effec- tive they meet these expectations. We believe that we would have two kinds of competitors. Therefore only direct competition would be taking into account. examples of direct competitors are as follow: †¢Caribou Coffee shop †¢Intelligentsia †¢Big Shoulders Coffee †¢Bow Truss Coffee †¢Metropolis Coffee CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee Target Market MARKET OVERVIEW According to statistics, the total percentage of Americans over the age of 18 that drink coffee ev-eryday is 54% and the total percentage of coffee consumption that takes place dur- ing breakfast hours is 65%; therefore, the intended main target market would be fo- cused on people 45 and older who have a little extra time to prepare coffee in the morning. How- ever, according to coffee statistics, younger people between the ages 18-34 in the office are pay- ing almost about $10 more per week on coffee than their 45-and-older counterparts ($24. 74 vs. $14. 15, respectively). So, this last group would be projected as a potential market in the future. MARKET NEEDS We believe that the American society runs on coffee consumption. From the young students who need to stay active and focus late at night, to general everyday workers who are always seeking for extra energy. However, to specify our target market we have selected a more specialized and knowledgeable consumer who not only sees coffee as a source of a little extra energy, but also appreciates and distinguishes the quality of a premium cup of coffee. CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au-thor. Colombian Co? ee Strategy and Implementation MARKETING PLAN Overview Our market strategy will be focused in two main points. First of all, the main objective is to meet or exceed the expectations of the consumers. By implementing this first step, the company will be able to create customer loyalty and therefore be abel to rely on a stable demand. Second of all, the company will be focusing on the creation of awareness of the qualities of premium Colom- bian coffee. Even though most people have heard about Colombian coffee being one of the best in the world, very few people have tried before. We believe that the stimulation of Colombian coffee awareness will boots the demand for premium Colombian coffee. Moreover, by doing so, we will be able to differentiate our quality from the rest of the competition. Positioning Our business is intended for people who appreciate coffee, not only for a boots of energy, but also for those who appreciate and distinguish a premium high quality cup of coffee every time. For those who won settle from something else but the best. Pricing El Dorado Coffe Shop, will be competing with the high edge providers of premium coffee in the Chicago area. However, We will be able to provide the consumers with not only the best coffeebut one o f the most competitive prices in this kind of market. Promotion we will offer a free membership which will enable us to keep track of our regular customer wile rewarding them by a special promotion on their birthday and also with discounts after reaching certain amount of money in purchases. †¢Free membership card †¢Special discounts on your birthday †¢10% to 20% discounts after reaching 100 dollars cumulative in your card †¢Buy one get the second one 50% discount on special events during the year †¢3 referrals= 10% discount on your next purchase CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee Distribution As a start up business we believe that the best way to grow and promote ourselves is to distribut- ing our products to other selling points besides ourselves. We will be willing to offer our product to coffee shops and cafes that are interested. Also, we plan to distribute the coffee ourselves, us- ing the Internet and local distribution channels. The distribution costs will vary depending the mediums available. MILESTONES Milestone Due Date Who’s Responsible Open the business February 28, 2015 Juan De La Parra CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee Financial Plan REVENUE FORECAST Revenue Forecast Year 1 Year 2 Year 3 CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee Revenue whole beans co? ee bags $6,360 $0 $0 Organic co? ee $5,625 $0 $0 blend co? ee $4,750 $0 $0 Instant co? ee $3,105 $0 $0 Total Revenue $19,840 $0 $0 Direct Cost whole beans co? ee bags $2,862 $0 $0 Organic co? ee $2,250 $0 $0 blend co? ee $1,900 $0 $0 Instant co? ee $1,553 $0 $0 Total Direct Cost $8,565 $0 $0 Gross Margin $11,275 $0 $0 Gross Margin % 57% 0% 0% CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con? dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee Revenue by Month About the Revenue Forecast PERSONNEL PLAN Personnel Table Year 1 Year 2 Year 3 Legal representative and chief manager in South America $12,000 $12,000 $12,000 assembly and Packing $2,400 $2,400 $2,400 Chief executive in North America $12,000 $12,000 $12,000 Total $26,400 $26,400 $26,400 About the Personnel Plan Personnel Plan will be as follows: CONFIDENTIAL – DO NOT DISSEMINATE. This business plan contains con?dential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan au- thor. Colombian Co? ee †¢North American manager who will be in charge of managing the storage and distribution o0f the products inside the U. S †¢Legal representative who will be in charge of administrating all the legal aspects and agreements between the company and the local producers. Also will be in charge of su- pervising the packing and exports to North America. †¢There will be one employee in charge of packing all the product meeting the legal re-quirements for exportation. BUDGET Budget Table Year 1 Year 2 Year 3 Operating Expenses Salary $26,400 $26,400 $26,400 Employee Related Expenses $2,400 $2,400 $2,400 Marketing & Promotions $0 $0 $0 Exports $5,777 $0 $0 Utilities $0 $0 $0 O