In the present scenario, there has been huge demand among the youths to consume tasty beverages and bakery items in New York, United States of America, however, they prefer the same to be healthy and tasty in nature. In such scenario, Stars Café is one of the coffees and bakery shops based in New York, United States of America, which is primarily serving the different customers of the economy of USA, and they have their outlets in different parts of New York as well. Each of the outlets of Stars Café is unique and different from one another and they have their presence in airport, schools and retail outlets. The respective location New York has been selected for setting up the coffee as it is centrally situated and it will be effective for the company in attracting large group of customers and it can generate high level of revenues positively. The different products and services which are sold by Stars Café include the variety of options of food which starts from sandwiches to different baked items such as customized cakes as well as pastries which are organic and gluten-free. There are various ranges and forms of coffee, juices and teas that has been capable of attracting customers and it can be effective for improving their profitability in contrast to the other competitors in the market.
The main aim and purpose of the marketing plan is to understand the mission as well as goals of the respective coffee shop named Stars Café. In addition, the environmental analysis and internal analysis are required to be done for understanding the environment in which they are operating and it will be efficient in being more profitable. Lastly, recommendations and conclusion are provided for understanding their current situation and improve the same with maintaining few objectives which will be efficient in gaining competitiveness.
The corporate mission of Stars Café is to inspire as well as nurture spirit of humans through offering the best coffee and other beverages at an affordable price. The mission statement of Stars Coffee Shop helps in reflecting that the café tries to keep the business in the running mode and it is made clear that the target customers are given proper emphasis in the corporate mission and the mission statement of company helps in influencing strategic management in the growth of the business which includes nurturing as well as inspiring the business and it starts off with the different employees.
There is also maintenance of the culture of the company wherein the communication and rapport are the two crucial elements which will be efficient in maintaining the motivation among the different individuals and it increases the business. The employees are motivated; therefore, they are able to perform well and they are able to serve the customers in a suitable manner (Aghazadeh, 2015). The corporate mission of Stars Café and Bakery helps in indicating personal and gradual approach which showcases the fact that the organization helps in ensuring the meaningful impact on employees and different customers for growing their business.
Goals
Proper analysis of the short-term and long-term goals play a beneficial role in understanding the different objectives which can be achieved by them within the stipulated time frame. Both short and long-term goals are important as they mainly focus on achieving desirable outcomes which would be profitable for the success of the business. The SMART aspects need to be included for setting the direction of business that will be efficient in nature.
As commented by Aguinis et al. (2017), short-term goals are defined as the ones which are helpful in making big changes within six months to one year of span. The main goal of the Stars Café and Bakery for the next six months to a year is to spread the business in the worldwide. Moreover, for developing the different products which are differentiated in nature, the company needs to exploit the smart variety and achieve profitability.
There will be increase in the revenue by more than 30% in the next six months for generating competitiveness in the market. By the year end, the main plan and goal of Stars Café is to increase their revenue which will increase their share in the market and gain a strong position in the market.
In addition, there should be increase in the promotional objectives by the company through the usage of advertising within a year through Twitter, Facebook and other techniques for generating awareness among the customers regarding the new introduction of organic as well as gluten-free products in the market. Through the same, there will be increase in providing value to customers and it will be helpful in creating loyal customer base (Bergh et al., 2016).
On the other hand, the long-term goals require planning and time and it can be around several years which will be helpful in improving the effectiveness. Proper the long-term goals of Stars Café in the next five years are to be on the top charts with the other bakery firms present in the market. To become extremely successful in the competitive market, Stars Café plans to open more distribution network and facilities for themselves that will be effective for them in gaining competitiveness.
Moreover, to become the zero-debt café in the long-run as it can enhance their brand image and the different customers will be able tovisit the respective bakery for purchasing the different products at an affordable rate (Njoku & Ou, 2016).
Additionally, there should be inclusion of the online purchasing options available to the different customers that will be increasing the revenue percentage (David& David, 2017). The online website analytics can be helpful for the bakery in generating profitability.
Moreover, there should be targeting as well as maintaining the net profit to at least 14% by the fourth to fifth year and therefore, the gross profit margin will be 40% or more. Lastly, the café is trying to become the best new coffee café in the entire area through the local restaurant guide.
PESTEL Analysis is the framework which is utilized for monitoring and analyzing macro-environment related factors which can create profound type of impact on the performance of the company. It is similar in case of Stars Café which will be helpful in understanding the impact of environmental factors on the profitability and business of Café. Stars has the macro-environment which is being credited with the continuous economic recession in the global manner which has been denting behavior of the different customers for purchasing.
The two major competitors of Stars Café include Café Grumpy and Hard Rock Cafe which is present in New York and they can be a huge threat to the Stars café. Café Grumpy has their outlets in New York and Los Angeles and the net income of the company has been approximately $200 million till the year 2019 in the month of March (David, David& David, 2017). Moreover, the company has been able to reach the large group of customers through the advertising slogans regarding the different offers and discounts offered by them for new customers and the loyal ones and there are different exclusive deals available for loyal customers. However, the young generation are preferring the different food items that are organic and it can be the advantage for Stars Café as they are specializing in organic food (Engert, Rauter& Baumgartner, 2016).
On the other hand, the Hard Rock Café mainly specializes in coffee and there are varieties of the food options available for the customers present in the market. There is lack of upgradation of the machinery which will be suitable in coffee brewing and it attracts only certain group of customers which can be generating competitive advantage for Stars Café as they are mainly specializing in the coffee and other food items which are gluten-free and organic in nature and it can be beneficial for increasing their share in market (Felix, Rauschnabel & Hinsch, 2017).
USA is one of the largest economies in terms of the GDP which has been earned by them and in such economy, the different companies like Coca-Col and other cafes are shaping in a proper manner which ultimately is leading to the growth of new companies or start-ups. In such scenario, there has been fall of unemployment and rise of income level of customers in 2016 which can be a huge strength and opportunity for Stars café in New York economy to start their business and gain competitive advantage (Zhao et al., 2017). Moreover, it can be seen that the different customers have changed their tastes and preferences over consuming coffee and other café items such as baked sandwiches or pastries. In such scenario, Stars Café has been performing well as they are specializing in different food items which are organic and gluten-free.
The regional integration along with political kind of stability are the most successful and current trends which helps in presenting the opportunity for Stars café in the global environment. The political stability of the New York economy is the other aspect which can be suitable for gaining opportunity for Stars café in accessing more markets or the suppliers in an efficient manner (Varadarajan, 2015). With the stable kind of political economy, with the advanced kind of infrastructure as well as technology, the USA economy markets itself as the most suitable destinations for the foreign direct investment.
On the other hand, in case of the legal analysis, it can be seen that Stars Café has various opportunities for improving their performance through satisfying the safety of product related regulations on the ingredients. In addition, there are different legislations in USA economy regarding the safety and health of employees and workers in different sectors that can be advantageous for Stars café to perform better and improve their sales (Papke-Shields & Boyer-Wright, 2017). However, the increase in the regulations related to employment is the threat through increased type of spending for the human resources.
The rise in the online mobile purchases is the most significant idea which is opportunity for Stars Café in gaining revenues. In addition, the company has the overall opportunity for improving supply chain effectiveness which is based on the new technologies which can be used by farmers (Saenko et al., 2016). There is high level of technological advancement in the USA economy that can be advantageous for Stars Café to start their business successfully. Through the usage of the Facebook and other social media aspects, the company can share the main points for their popularity and the offers which will be offered to the customers after their set-up.
The growth in culture of consuming coffee is the first and foremost social aspect which is increasing revenues based on increasing demand for specialty coffee (NJOKU& OU, 2015). Moreover, the increases in the health-conscious customers are becoming opportunity that can be affecting the growth of company and it has been beneficial for the company’s progress. As USA is termed as the diverse economy, therefore, through different surveys, it can be seen that more than 1 out of 3 individuals who are Americans have love for beverages which are healthy, yet tasty that will be helpful and effective in managing their business.
Stars Café is one of the trending coffee shops which is attracting the young generation individuals as they are becoming health-conscious in nature. However, there are different threats and weaknesses which can be affecting brand image of the company in comparison to other competitors. With the help of the SWOT analysis, the different internal strengths and weaknesses along with external threats and opportunities are being identified for their future perspectives.
Table 1
SWOT Analysis
|
Strengths · Strong Brand Image in comparison to other competitors · The company is known for treating the employees well as there is inclusion of numerous benefits · Extensive kind of global supply chain |
Weaknesses · The product imitability is the major weakness of Stars Café · Generalized Standard of the different products · More reliance on the innovation of organic beverages |
|
Opportunities · Diversification of the business · Partnerships with different firms · Expansion in different developing markets |
Threats · Imitation is the major threat · High Level of competition in case of the other competitors present in the market · Independent kind of coffeehouse movements |
Note:Strengths, weaknesses, opportunities, and threats for Stars Café.
Strengths
Weaknesses
Opportunities
Threats
Conclusion
Therefore, it can be concluded that Stars Café is one of the growing café businesses in the competitive environment of New York, wherein they are able to gain a strong market share through sell of the different organic and gluten-free products preferred by the young generation. In addition, there can be inclusion of aggressive innovation strategy which will be suitable for improving their presence in developing countries and increase their market share.
References
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