Strategic growth plan for Simply Coffee - Essay Example

0 Introduction Growing within a business allows for more consumers, better manufacturing of products and the ability to grow within a business. However, to do this effectively, there needs to be an overall initiative which is focused on providing the best results within a business. There are several components which factor into a strategic growth plan, all which provide different alternatives for continuous growth and development of a business. Within this are several special alternatives that are associated with small businesses, specifically because the growth incorporates not only changes within the external environment, but are also inclusive of ways in which the internal environment needs to change. Incorporating specific alterations can provide further development within an organization while promoting healthy growth within a company. 2.0 Strategic Growth Plan 2.1 Executive Summary The small business which will be evaluated for a strategic growth plan is “Simply Coffee.” The focus of this particular business is to provide coffee machines to other businesses that are interested in extra compensation with the on the go concept. The machine is placed into a specific business with available coffee which the individuals can pay for while they are going through for other needs. The coffee machines are combined with special coffee beans that are provided regularly to clients for a specific taste, including beans of espresso, latte, cappuccino or regular black coffee. The company has provided a commitment to sustainable economics, specifically with a guarantee that rainforest won’t be harmed and that the farmers that provide the coffee receive fair compensation. Each of these products are also inclusive of on – site training to connect the machine and make sure that all of the components are ready for servicing so individuals can get their own coffee while moving through a line or while on the go. Retailers are also provided with marketing materials, including graphics, floor graphics, wobblers, interior and exterior graphics and external banners (Simply Coffee, 2011). The main concept of Simply Coffee began several years ago because of the noticed trend of individuals who needed items faster. The main ideology was to create a coffee machine which could provide a variety of coffees quickly and without waiting for the specialized mixes which are often included in coffee houses. The main ideal began with noticing that coffee and tea are one of the fastest growing sectors in the coffee industry and is inclusive of 22% of sales and growth each year and a profit of 120 million per year. The industry is combined with the ideology of on the go becoming even more popular, specifically which the majority of the population is interested in because of the need to move quickly while getting the daily enjoyment of tea or coffee. The machine is designed to not only offer quick coffee but also adds into retail value without taking up retail space. It is through the noticed trends in the market and changes which are associated with this that has built the main demand of the business (Simply Coffee, 2011). 2.2 Vision and Mission The vision of the Simply Coffee will be based on growth for the coffee machines as well as popularity that will be provided to those who are interested in the coffee. The vision will include retailers implementing the machines in the stores with continuous demand for the coffee beans. The vision will also be inclusive of consumers recognizing the coffee as high quality, specifically in relation to coffee from home or from cafes. The mission will be based on growth of the demand of the coffee machines and finding the perfect cup for consumers while they are on the go. 2.3 Critical Success Factors The main concept which will need to be used with Simply Coffee is one which is based on changing the success of the company by altering the growth of the company. For the company to succeed, a stronger plan needs to be implemented with marketing. This will need to be based on recognizing the strengths and weaknesses of the company and working against the competition that is currently within the business. By doing this, there will be the capability of creating a stronger market and building positive relationships with those who are already familiar with the company. This will be inclusive of looking at both the internal and external environment for growth. 2.4 Internal Environment The main advantage which is associated with Simply Coffee begins with the product quality. This is one which is not noted in other companies and gives a specific sense of value. The product is built with the idea of a convenient way to get several types of coffee inclusive of a machine which combines various blending techniques, coffee blends and other aspects that are fast and easy to use. The product quality is combined with the idea of fresh coffee, where each produces between 100 – 500 cups of coffee per day. The product quality is one of the strengths of the company, specifically because it can continue to be manufactured in the same manner. Another concept which works in the favour of Simply Coffee is with the diversity of resources available. The company is able to provide the machine, coffee blends and services to ensure that the machines are set up correctly. These strengths can be furthered by allowing the coffee to have the right approaches for a full service when needed. However, for the company to expand, the resources will have to be furthered. The company will need to make sure that implementation of the coffee machines and the services can continue to bring the same results. Expansion and growth of the company also means that there will need to be individuals available to provide the services and to assist with the growth. Since the company is small, the need to provide services can be done as the demands begin to grow. This can be combined with a different set-up with the internal environment that promotes growth. As of now, Simply Coffee is maintained by the business owner and manufacturers with very few employees. To change this, Simply Coffee can add in an affiliate program to those who want to sell the different products. The affiliate program will allow individuals to attach to the business and sell the products to various companies. They will receive a percentage of the profit with the sales that they make while the main owners of Simply Coffee will be able to supply what is needed. This will offer continuous growth within the company while ensuring that there is the ability to meet specific demands with the internal environment for staffing and other necessary obligations. However, for this to work, Simply Coffee will need to specify arrangements with retail stores, individuals interested in the profit and will need to provide training to those who are interested in selling the coffee machines and products. 2.5 External Environment 2.5.1 Competition The first advantage which Simply Coffee has is based on the competition. The build of the business comes from the innovation of the coffee machine which is known to take up very little space while providing an accent to retail shops. For both small and large businesses, this provides a small investment that can continue to bring return. Combining this with the supply of coffee beans and the training, as well as the advertisements, allows the Simply Coffee brand to have more capabilities in building and expansion. The innovation and the compliments to the machines also offer strength from the competition while allowing the coffee makers to work as an addition to a business that wants to invest in extra components that will bring in customers. These aspects are the main strengths against the competitors that are within the business. When looking at the competition for coffee makers, it can be seen that there isn’t a focus on the segment of retail shops that are interested in the on the go culture. Most coffee makers are divided into two segments. The first are large and are used for coffee shops that are making a profit by offering the service of making coffee for customers. Using this as an accent to a shop is impossible because of the demands, size and because of the need to constantly have employees servicing the coffee making machines. The second segment is for individuals that are interested in home coffee. These usually come as smaller devices which don’t make more than ten cups at one time. The Simply Coffee machines are able to provide between 100 – 500 cups of coffee, meaning that the coffee is always fresh, one doesn’t have to maintain the machine and that it is complimentary to any retail store (Ryland, 2007). Even though the competition is one which moves out of the main competition, in terms of strength and opportunity, there are also threats and weaknesses with the perfect cup. The weakness is based on the limits that are a part of the machine. It is expected that some of the quality will be lost with the technology which is used, specifically which most consumers are looking for in demand. Technological expectations that are growing are inclusive of different ways to heat and brew the perfect cup of coffee. The tastes of consumers continues to grow, making the machine which is used by Simply Coffee responsible for not only having a simplistic and easy additional item, but also is included with the need to add in the expectations of consumer taste. The concepts of the coffee also show several threats because of the continuous growth of consumer culture for coffee. In the UK, the demand for coffee has grown by 16% from the years 2003 to 2008, specifically with coffee makers. There are also several emerging cafes that are able to provide coffee quickly and on the go for customers who are able to stop into a cafe for a short period of time. These two factors are allowing several businesses to begin picking up the niche markets with the demand from consumers. This is inclusive of larger, corporate cafes that have chain stores used and which are able to build their reputation from a profile that is based on quality (Ryland, 2007. This threat to Simply Coffee is one which has to be examined by diversifying what is available while looking at opportunities with the niche market that is available. 2.5.2 Brand Identity The second component which is used with the Simply Coffee business is through the brand identity concepts. Currently, the brand identity is one which doesn’t incorporate marketing at various levels. There are two main targets that Simply Coffee is working with. The first is through retailers who can offer the coffee makers as a complimentary item that is within the store. The second is to build a reputation with consumers that are interested in the on the go trend and want a cup of coffee while in a different store. Defining both of these components will ensure the growth of the business, specifically with a larger target that is on both. The brand identity is the first aspect to building this. When looking at the current brand identity, it can be seen that there are limits in what has been built with the company (see Appendix A). The graphics and the colours which are used are generic, which is inclusive of black and brown to signify the coffee. The strength of this is with the noticed aspect of the coffee. However, the weakness is from the inability to appeal to the market. The colours of brown and black as well as the sign which may not seem as noticeable doesn’t look as appealing, specifically if it is only used with the retail stores among other signs that are in the store. Diversifying this will create more opportunities for the company. At the same time, there aren’t ways of reaching the retailers and are unknown markets that aren’t being opened because of the lack of advertising or brand building for retailers that would be interested in supplying a coffee machine in their store. The idea which Simply Coffee needs to approach with the brand identity is based on creating a presence that is strong for both the retailers and for potential consumers. The basis begins with the ideal of creating brand equity. The brand needs to stand out in terms of graphics, colours and with an understanding of what the coffee means. Changing to a coffee maker, brewing the perfect cup of coffee and looking at aspects of value will help to change the overall use of the brand. The message would need to be communicated by enhancing the graphics, using a stronger message based on the strengths of the innovation of the machine and appealing to the “on the go” target market that is defined within the company. This can be furthered with brand positioning, which would allow Simply Coffee to change their brand into one that was focused on the retail market and the launching of a stronger identity. Since there are both coffee and coffee machines, the brand identity would need to be enhanced with creating a stronger marketing appeal while building diverse types of marketing materials that could be used for various niche markets. These various strategies would build and sustain the brand identity and would help with the growth of the company (Kapferer, 2008). 2.5.3 Target Market The target market is another element which is defined by both consumer demand and by conviction of retailers to add in the Simply Coffee machine as a part of the retail space. These two target markets can be enhanced through the external environment. The strength within the target market is based on the two main ways in which this can be approached. However, there needs to be implementation of specific designs to ensure that there is a strong response from the target market. Simply Coffee now focuses on the fact that 1/3 of society is interested in on the go materials as well as coffee. However, there also needs to be stronger implementation toward retailers who would be interested in carrying the machine. Other small businesses, convenience stores, and larger stores can all take part in the coffee machines as extra ways of offering satisfaction and customer service with the design. 3.0 Strategy and Actions The first part of the strategy will be to expand the market while keeping the ideals for the internal environment as a part of the process for later on. Over a span of five years, Simply Coffee will work toward doubling the amount of vendors that are taking the coffee machines and the coffee blends for their corporations. To achieve this goal, a stronger marketing plan will be used and other types of actions will be implemented to ensure the steady growth of the company. Initially, this will be based on upgrading the marketing and will be followed by changing the expectations for the company into a stronger market. 1. Market Development The market development will be the first initiative which is taken by Simply Coffee. Currently, the strengths with the company are seen with the product that is built as well as the implementation that is taken with the diverse services and products that are offered to various areas. However, there isn’t a strong implementation with the target market or with the ability to expand with the products through marketing and advertising. The first step with the initiatives of Simply Coffee will be to develop a new marketing plan that will provide the company with more recognition and the ability to grow within the company. The fist change in market development will be based on brand identity. Simply Coffee doesn’t have a strong presence and doesn’t stand out from the crowd with the brand presence which they have. A new brand presence will be created which incorporates the coffee machines into the “on the go” concept and the ideal of having the first cup of coffee quickly. A new logo and a slogan will be created to strengthen the brand identity first. This will be combined with an initial campaign which will be used. This will focus on reaching to the two target markets of consumers and retailers in providing the main outlook. To create the right identity, there is the need to enhance several areas of the market identity. The first is with the organization which will specify the quality of the products, ease of use and the ability for the coffee products to not take up space. This will be combined with the social identity, which will be based on the idea of the “on the go” products and the several quality types of products that are used. The visual identity will be combined with this which specifies both of these target markets and ideologies and which shows how both retailers and consumers can use the brand identity to have the perfect cup of coffee. Focusing on these three brand areas can provide stronger options for those interested in the coffee (Balmer, 2008). After the brand identity has been developed with a stronger presence and for the two target markets, an initial marketing campaign will be launched. The objective of this particular campaign will be based on a one year process that will use continuous marketing tools to grab the attention of customers and retailers and to begin enhancing the number of products sold. Retailers will be continuously contacted through flyers, post cards and in store visits, all which will be used with demonstrations on the machine. There will be exhibits as well as initiatives which are taken that will assist with the campaign to show the capacities of the machine. The goal of this campaign will be to increase the number of sales by 10% in the first year with strong campaigns that can be used for advertisements with consumers. The marketing campaign will be combined with initiatives that will draw the attention of consumers. As consumer demand increases, so will the demand for the coffee machines and other products that are provided. However, this is linked to the main initiatives that are a part of the retailer use of advertising. The main concept will be to launch an initial marketing campaign which is associated with the retailer advertising, but instead focuses on upgrading the demand for the coffee. The current advertising materials used for stores will be changed for a stronger image. This will be combined with the concept of “get on the go coffee” so consumers can build brand recognition for the Simply Coffee. By increasing this, the demand of the coffee products will continue to rise while allowing both target markets to be reached with a stronger brand. 2. Process Improvement The process improvement will be implemented with the ideal of bottom up initiatives within the organization. This is inclusive of working from what is already available within a business and beginning to incorporate various components into the business (Edmondson, 2008). For the business size, the process is stable, specifically with the manufacturing of the machines and the use of coffee that is known for being green and environmentally friendly, as well as stable within the environment. The process can be improved by enhancing the initiatives that are between manufacturers, coffee products and other concepts. The one area which is the main weakness of the company is with the amount of time which it takes to set up the machines and to offer training. The second phase of the strategic initiatives will occur when the business begins to grow and within the second year. A series of plans and a change in business strategy will be used for employees to be incorporated into the business. However, instead of incorporating more employees, Simply Coffee can use the small size to help with growth of the company. This will be based on finding independent contractors who are interested in selling the products to retailers for a return through commission. Each time one of the independent contractors sells the coffee machine, they will receive an amount of profits. Doing this will solve two of the problems within the company. The first is based on the diversity which is needed for retail stores. The second is with the need to plug in and train those who are interested in the coffee machines. While providing these services offers a unique niche to the project, it is also limited without the right employees working for the company. For the affiliate based program to work correctly, there will need to be a new niche which is created. Inviting an initial set of individuals to sell the coffee machines will be the initial launch. The individuals will need to go through a series of training that incorporates an understanding of the machines and products as well as an emphasis on what is needed to train and set – up the machines in various retail stores. The affiliates will have the ability to sell both coffee products and the machines to increase their revenue. This will be followed by marketing initiatives that are combined with the basis, all which are specified with training and development of the employees. For this to work, the independent contractors will need to keep close association with the owners of the store. As this grows, managers of teams can be used for the affiliate basis; however, the driving force will need to be implementation of the products so they are sellable and the understanding of how to work and take care of the main coffee makers. This initiative will begin in the second year and will continue to grow into teams through year 5 for rapid expansion of the business into new target markets and for promotion of the products by several key members. 3. People Development The association with people development is one which is dependent on training initiatives. As of now, the business is running with a core group of individuals that are responsible for specific tasks. As the people development begins to grow into independent contractors, there will be the need to offer different types of training. For this to work correctly, leadership skills and various elements of communication will need to be enforced. There will also need to be changes within the internal environment, specifically with a workflow that is more conducive to larger groups and initiatives to sell more of the coffee machines. This will begin in year 2 when the affiliate program is launched and will be re-assessed every quarter for continuous development of the independent contractors from the core group of members that are a part of the initiative (Sharp, 2009). 4. Product Development The last aspect which will be considered is based on the product development of the company. Right now, the company is dependent on coffee machines as well as specialized coffee beans which are used for a specific experience. This provides an initial set of diversity which not only helps with initial sales but also allows for continuous revenue to be made through the coffee beans. This specific initiative is one which can be expanded into offering more types of products as well as custom initiatives dependent on the consumer needs. Since the products currently have a system of diversity which remains in demand, the expansion won’t be built until the initial marketing campaigns and affiliate campaigns have been initialized. The approach to build the initial sales with diversity products will begin in the 4th and 5th year and will help with continuous growth of Simply Coffee beyond the five year expansion plan. The products will be inclusive of a variety of flavours which can be used with the coffee as the main initiative. There will also be an expansion of the extra affiliations with coffee, such as changing the other elements of the products available. To further this, the coffee can expand with new manufactured products. For instance, offering custom orders for different types of businesses, such as cafes, will help to diversify the market and introduce the company into a new area of strategic growth. However, this will need to be completed after an assessment of what is needed by retailers and cafes as well as how this can be completed and prioritized through the current stance of Simply Coffee. The product growth will not only be inclusive of changing the materials which are added. There can also be more product development by changing the advertising schemes which are used into diverse markets. For instance, Simply Coffee is currently selling by services offered to stores. However, they can also set up a secondary set of marketing initiatives with individuals that are interested in coffee products. To do this, the website can be changed into an e-commerce store that ships the products to individual homes. This will increase the revenue that is available and will allow those who like the Simply Coffee brand in the different stores to have the same products available in their home. The product development will then be based on diversifying the target markets and finding different types of coffee that can highlight the company. 3.0 Conclusion and Recommendations The main initiatives of Simply Coffee can provide new expansion and alternatives with the business. While they are currently a smaller business that is operating with a core team, their strong foundation can provide stable growth. Currently, Simply Coffee has several advantages. The first is based on the lack of competition from the initiative with the machines as well as the ability to offer fast coffee at a lower price to consumers. The product quality is one which is conducive to almost any business and can offer even more assistance with those who are interested in the coffee. This is combined with the initiatives that have been taken with the diversity of products as well as the initial materials that are offered to the various companies. It is the foundation of Simply Coffee that will help with continuous growth used throughout the company. For Simply Coffee to grow effectively there needs to be a re-examination of the marketing initiatives that are used as well as how the company can outreach to various clients. The limitations of the company are based on two aspects. The first is the amount of employees which are available, which is creating the inability to expand the services that are required for installation and training for retailers. The second is based on the brand identity and marketing plans that are not seen through the company. By changing these two weaknesses, Simply Coffee will easily be able to expand into the market and offer more options for growth within the company. This can be combined with a five year initiative that is based on an initial marketing campaign launch with the expectation to grow into an affiliate marketing plan and to develop a diversity of products while expanding into several niche markets that are based on the brand of Simply Coffee. The initiatives which Simply Coffee makes as well as the implementation of the strategic plan can help to double the amount of sales within a five year time frame. However, this is based on the ability for investments to grow within the company and to provide various aspects of the build of the company for better responses. As this is done, there will be the ability to create a strong response from the community while building a brand identity that is recognized among retailers, consumers and those who want coffee on the go. Developing these aspects first outside of the competition then into a diverse market will help with the overall expansion and growth of the company while ensuring that there is a stronger response from the initiatives that are taken within this five year time frame. 4.0 Reflective Experience Statement The concepts which were a part of this assignment helped me to recognize several aspects of strategy growth plans, specifically with small businesses. Analyzing and looking at the several aspects of the company as well as the initiatives which are associated with the company of Simply Coffee expanded my knowledge about being within a business and building it so there is a specific arrangement which helps with the growth of the company. By looking at these aspects, there is the ability to create a different approach to the strategy while learning more about the concept of growth for small businesses. The first encounter which limited some of the initial reactions was based on the amount of information available as well as the understanding of a small business. The small business is at a general disadvantage because of the amount of individuals working within the company as well as the capabilities which it has to create a strong statement about their presence. I found that I had difficulty finding information about the company, even though the products and services offered are not similar to others. I also found that there were problems based on describing more about the core team, history of the company and the ways in which they could grow financially. When building the strategic plan, there were some assumptions which had to be made, specifically with the overall goals which could be achieved. Even though there were these problems with the initial look of the company, the foundation of what Simply Coffee offers was strong enough to assist me in the understanding about the business. The products and services offered gave a general overview of what the company offered and what they needed for growth. I believe that this was an important note to make about the company strengths and weaknesses. I was able to look at the website, information of various journals and other areas of knowledge to draw conclusions about where the business stood in terms of foundational concepts as well as opportunities for growth. This was the driving point of the strategy which was built. The capacity to analyze the foundation and point where the business functioned and to understand how they could grow beyond what was offered from this foundation served as my basis for the analysis. When moving through the several points of analysis, I was required to use the same technique of looking at where the business was at and to look at possibilities for a five year plan for growth. However, the current concepts are based on goals for the company to grow. These can change drastically as the marketing initiatives take place, causing the growth to either be stronger or lower than expected. From this perspective, the plan is one which will most likely be altered as the business begins to initialize the overall plans and work toward growth. This is important to observe as I believe that any strategic plan needs to be recognized as a process which comes from initial goals and designs that can help to expand the foundation. They are not ones which are able to create a solid foundation of what will be done in the future. Since the plan is one which comes with several variables which are not inclusive, there is only one certainty that should be looked into. The initial marketing plan and the steps which are taken at this initial stage will make a difference in the rest of the plan. If the marketing plan is developed poorly, then the product development as well as the affiliate program won’t be able to start. From this viewpoint, the marketing plan becomes the most important aspect for growth. The marketing plan will be able to draw several conclusions about how the strategy needs to be adjusted and altered, what the options are for growth and whether the company is moving in the right direction. If this isn’t initially created in the correct manner then it will create several problems with the initial campaign and will lead to complications with the initiatives for strategic growth. Mapping out the marketing plan even more is what will determine the success of the company. Another application which is associated with the strategic plan and the outcomes is based on the inability to know how the consumer response will develop. The information found about the coffee was based on the current market, which is developed with individual coffee as well as cafes that are popular. This particular niche is one which is limited by the expectations that are within the market at the current time. The strategic plan, as well as the development and outcomes of the marketing plan then have to go on the known factors of the growth of the on the go culture as well as trends in coffee. However, changes in trends, environmental forces, factors that may change the outcome and other aspects limit the marketing plan and the ability to have the same outcome. This particular lack in estimating what will happen with the current trends also limits the strategic plan in developing into broader targets and understanding within the given framework. Adjustments will be required by Simply Coffee to initiate the strategy, specifically in response to the market strategy. I believe that for a strategic plan to work there needs to be an understanding of the flexibility, change and the room to grow. For small businesses, this becomes more challenging because of the lack of resources and the need to change while running and maintaining the same level of growth. While the initial marketing campaign can be implemented, the ability for this to work and to create goals which can be reached will need to include consistent evaluation, analysis and flexibility with how the marketing plan is developed and changed. It isn’t until responses are seen with the marketing plan that there will be the ability to alter what is done with the business as well as what can be incorporated into the development of the company. While this is a risk factor for every business, I believe that it is more pertinent for small businesses because of the amount of investment that is needed to continue to grow and build new foundations of stability with this growth. The concept of a strategic plan is one which I believe can be used as a framework for any business. However, when looking at the special dynamics of a small business as well as the changing trends in society, it can also be seen that the strategic plan should be followed by initial initiatives, analysis and flexibility with the plan. The framework is one which can serve as a strong plan for growth and which can help to look over the business and begin to grow in an effective manner. For this to work even more effectively, analysis and sub-categories within the strategic plan need to be mapped out to reach the success within the business and to continue to initialize the overviews and plans within the company. The more in which this is done, the better that the strategy can be implemented within any given business. References Balmer, JMT. (2008). “Identity Based Views of the Corporation: Insights from Corporate Identity, Organizational Identity, Social Identity, Visual Identity and Corporate Brand Identity.” European Journal of Marketing 15 (6). Edmondson, AC. (2008). “The Competitive Imperative of Learning.” Harvard Business Review 16 (5). Kapferer, Jean. (2008). The New Strategic Brand Management: Creating and Sustaining Equity Branding. UK: Kogan Publishers. Ryland, Anna. (2007). “Coffee Makers: The Rich Flavour.” Independent Electrical Retailer. Sharp, A. (2009). Workflow Modeling: Tools for Process Improvement and Applications Development. Routledge: New York. Simply Coffee. (2011). About the Coffee. Retrieved from: http://www.simplycoffee.com/coffee.php. Appendix A: Marketing Signs Read More