Beyond the bean BY salesmanship’s Beyond the bean Team members: Taylor Concordances Sales Lorenz Ineradicable Lanai Intro The partners of Beyond the Bean want to combine a traditional coffee shop with table/ board game rentals, where customers can socialize, in a relaxing environment. Our case analysis will demonstrate the appropriate decisions Beyond the Bean should apply to their business plan in order to achieve their goals. The report clearly identifies the problems within the case, and what choices the business should make to in order to be successful in the given area during a time of rescission.
We explore the strengths, weaknesses, opportunities, and threats of Beyond the Bean’s business structure, identifying vital decisions that the business should make, such as pricing, wireless Internet, and liquor license. Problems David Gregg and Angela Peck are looking for the best marketing strategy in order to successfully launch their new business, Beyond the Brenan. Their goal is to gain market shares, and produce high volumes of sales to break even and generate some overall profit. David Gregg is preparing to finalize the marketing portion of a business Lana to launch a board game cafe©, and the time is limited.He has Just one week to prepare this marketing plan so that he can review it with his partner. Beyond the Bean is entering the coffee shop industry at a time when the recreation economy is constrained. The business plan exposes additional problems when considering the possibility of not offering customers wireless access within the cafe. Both partners are looking for the best marketing scheme that would allow them to best capture the market.
Therefore, finding the best marketing scheme that would enable Beyond theBean to success in a constrained and fairly competitive economy represents the problem. SOOT Analysts Strengths Beyond the Bean has a lot of positive elements that could make the business successful. The idea of creating a board game cafe© is a highly innovative business idea, and has a high growth rate within the cafe industry. The partners believed Beyond the Bean would be competing directly with businesses that provided social and recreational experiences among friends.
The two direct competition businesses in the area, Fleetly, and Paellas North.The indirect competition is the corporate Effie shops in the area, such as Tim Horror’s, Struck, and Williams Coffee Pub. Beyond the Bean must determine an affordable price point plan to be able to attract their target market (15- 34 year olds). The reality is that the business does have a fair bit of competition, however their business does set them apart from the competition. Weaknesses A potential weakness that Beyond the Bean could come in contact with could possibly be the fact that both partners do not have limited formal business experience.Gregg had received expert advice on how to get a new business started, such as preparing rejected financial statements, creation of a cash budget, financing, and the development of a marketing and business plan, however neither of them have any idea how to properly run a cafe©.
This could cause problems, especially when considering that people/ businesses are still recovering from the worldwide recession, and has caused 8. 8 percent higher unemployment in the area. High unemployment generally leads to reduced spending on optional expenses, which could include coffee and board games.Opportunities An opportunity that could work in Beyond the Bean favor is that it doesn’t have many imitators.
This increases the chance of the business succeeding in the market, since it’s not a saturated market. Availability of a large number of board games. With the right choice of promotion beyond the bean could reach a large number of it’s target market with low cost. Threats One of the major threats beyond the bean might face is the inability to generate enough profit to cover their costs.This is a worst-case scenario, however the reality is that several Canadian businesses struggle entering the market. According to Statistics Canada, in 2009, 54. Percent of businesses entering the marketplace failed within the first year.
Due to recession In the economy the forecasted demand might not meet the actual demand. Decisions Gregg and Pecks first idea for their cafe© was to have tables for games and customers can choose their own game and rent it plus snacks and drinks.There would be a very knowledgeable staff about all the board games available for the customers. The cafe© will have no Internet access to encourage face-to-face socializing.
The location of the cafe© might be along or near the Richmond Row area of London. The other option was basically the same as option one except they would add availability of alcoholic beverages to the cafe© ” Only wine and beer”. There was the option of Gregg and Peck running the business themselves, during the first few months. After making some profits they can start hiring people.There are few alternatives in which the cafe© can be opened keeping in mind being close to the target market. Advertising & Promotions part is very important since it’s a new start up business people need to start being aware of it’s existence and there are different methods to use in advertising specially with a limited budget of only $6000.
The first approach is the web and faceable advertising, which will not cost much because of Pecks technical background. This will increase publicity of the business with no cost induced.Another alternative is advertising in the Gazette newspaper and the upside of advertising in this newspaper is that it’s distributed on western university students which are the biggest target market for beyond the bean and it’s also distributed for free and can be accessed online or other available newspapers. Another advertising amp; promotion technique they could use is Group, which was an appealing option because it involves zero start up cost and a wide customer reach. There are two options for the pricing strategy of board game rentals.
The first option is to charge customers $8/hour for a table of maximum 6 customers. The second option is to charge customers $6 for unlimited number of games per day. Wireless Connection Gregg and Peck made a major decision to not offer their customers access to free wife in their cafe©. This was a bold choice to make, especially when you consider that most reporter and locally owned coffee shops on average offer WI-if to their customers. The logic behind this decision was to encourage genuine human interaction, and eliminate distractions from technology.
Beyond the Bean’s hours of operations were planned to be 1 1 a. M. To 1 1 p. M. , and the partners discussed that the average customer would stay for at least three hours before leaving. Taking this into consideration, Beyond the Bean may experience some difficulty contending with their competitors, and would potentially have more success offering their customers access to WI-FL. If WI-FL were to be available to customers, it could give customers the incentive to stay longer than three hours, and would increase the average stay of customers, and in turn would increase sales.
Location The choice to locate Beyond the Bean near the universities in order to make the cafe© accessible to students was a smart choice. Locating the cafe© close to the university would ensure consistent traffic throughout the school year, and would aid in maintaining sustainability for Beyond the Bean. A challenge could be during the universities off seasons, there would most likely experience a decrease in traffic flow. Options for marketing communications during the university down time needs to be explored and should be addressed within their business strategy.The partners should definitely take advantage of social media marketing in order to accommodate to students.
Promoting and attracting students through social media (Faceable, Twitter, Mainstream) would create an online presence and would make in-store promotions easily accessed to young people. Maintaining a consistent social media presence would give regular customers a sense of community, and would drive individuals back. Liquor License The partners of Beyond the Bean explored the idea of selling liquor to customers. This would require them to have a liquor license and would increase their spending significantly.Obtaining a liquor license came with a number of stringent requirements, including staff training and AGO or police inspections. Serving alcohol would also expose the business to potential liabilities, such as intoxicated students leaving the cafe© late in the evening. Serving alcohol increases a business’s liability, which would increase the businesses overall expenses.
Beyond the Bean loud have to keep these potential risks in mind when deciding whether to sell liquor to customers. The reality is that the local demographic is predominantly students, which would increase the possibility of irresponsible drinking behavior.There is a strong possibility that Beyond the Bean would experience more success, and less potential risk if they focused more so on entering the coffee market. Pricing The partners have two price points to choose from for the cost of customers to rent a table/ use board games. We suggest the second option is a better fit for the majority anemographic, and for Beyond the Bean, which is to charge customers $6 per person for a table and unlimited number of games per day. The cost of food and drinks offered in store is flexible, and should be close in price of their competition.
The partners have estimated that customers will spend on average 4 dollars within a three-hour period. Keeping this in mind, if visiting customers spend the average price on food and drinks, and additionally the price of renting board games, Beyond the Bean should make a profit. Promotion Gregg had budgeted $6,000 to be used for marketing during the business’s first three months of operation. Our first suggestion in order to appropriately promote to Beyond the Beans demographic (students) is to build a large social media presence. Building a social media presence is an incredibly cost-effective way to communicate with the student audience.
Keeping in mind that Beyond the Bean is a new business, and the partners are looking for ways to save money, social media would be an effective way to endorse the company at its early stage. Furthermore, social media outlets can be used to construct a web-based version of Beyond the Bean that will act as their way to communicate, and inform their public. Gazette western university newspaper will be also a chosen alternative because of the large number of student in western university and beyond the bean most target market are student.The advertisement will not cost much and it will have a wide reach which is exactly what beyond the bean needs. We also suggest that Beyond the Bean takes advantage of the company Group.
This is also a cost- effective way to promote to students, and give customers an incentive to visit the store location. Group collects personal information from its members in order to send e-mails about local deals for products r services that might interest its members. Typically, Group deals offer members a 50 per cent to 90 per cent discount on a products or services in their area.
Implementation After analyzing beyond the bean case we have decided that beyond the bean in going to launch on. The partners may have a limited budget but they will choose the least expensive and most efficient alternative to effectively operate. They will offer customers a table with an unlimited number of board games for $6/day. They offer a very competitive price for food and beverages. They will advertise on social media evilly and Group and Gazette because that’s where they can reach most of their target market with the lowest cost.