The unique features of the foods and products in the caf© along with the convenient health food shopping experience make The Healthy Buzz superior to its competitors. 2. 3 Vision and Mission The strategic direction and actions of The Healthy Buzz are driven by its mission: The Healthy Buzz seeks to meet the needs of discriminating, health-conscious consumers for high-quality, superior-tasting organic foods and products, all served by our assionately professional team who are dedicated in providing the best service in Brisbane.
In time, the vision is to integrate the love of functional healthy lifestyles within our caf©, and to become one of the world’s most famous and loved caf© in Australia. 2. 4 Goals and Objectives Goal one: Increase the business sales and growth to 30% in the first year operation. The strategies to achieve this goal are: Increase the awareness of the healthy caf© through an aggressive marketing and promotion Promote the benefits of a clean and lean diet Increase the number of customers Increase the average sales size
Increase repeat trade from customers Control product quality and maintain a high level of customer service Goal two: generate a before tax net margin of more than 30% for the next three financial years by Eliminating high cost purchases Improving cost control Improving stock control 2. 5 Corporate Culture The Healthy Buzz is an entrepreneurial organization. Thus, the key elements of the internal environment are our passion on clean eating and a culture that encourages innovation, risk taking, and individual creativity.
The company’s beginning will be based on a desire to provide unique, superior organic products, and company ecisions will be consistently emphasized this mission. 3. 1 The Market The consumer market for The Healthy Buzz is made up of anyone who is interested in healthy food and a healthy lifestyle. According to the statistic from the National Health and Medical Research Council (2013), the prevalence of overweight and obesity among Australians has been steadily increasing for the past 30 years, with around 60% of Australian adults were classified as overweight or obese in 2011-12.
While the negative impact of obesity is becoming more widespread in the community, people are now aware of the increased risks associated with poor diets. Thus, there is a definite demand for healthy, organics, and whole foods which have additional health benefitsl . The increasing ageing population in Australia has also contributed to the rising interest in healthy and high quality foods2. Accordingly, niche opportunities to operate the Healthy Buzz best exits among people who are passionate about organic foods and healthy diet. 3. The Customers To validate potential customers’ interest and desirability on the concept of The Healthy Buzz, primary data was collected in a form of a paper based questionnaire through convenience sampling which was distributed on 22 August, 2013 at Fitness First Brisbane CBD”King George Square, to 18 Fitness First members3. The questionnaire was designed with 7 questions, including six closed questions and one open question. Although the result of the findings were limited due to the small sample size and the restricted number of questions, the research is still useful for the development of the business.
The results of the research are concluded below: 94% respondents showed their desire in unprocessed fresh real whole food; 78% respondent found it difficult to have a healthy dining option in Brisbane before/after workout; 44% respondents agreed that people are too busy to cook; 3% respondents were likely to have a healthy convenient takeaway and readymade meals in the caf©; 62% respondents are in favour of lower priced healthy meal options ranging from ALJ$ 11-15.
The research has validated the feasibility of the is driven by the increasing health consciousness and the low accessibility of organic healthy foods and products in the Australian market which is dominated by the big fast food chains4. However, there is an increasing demand for healthy takeaway and readymade meals as the replacement of homemade meals, which is the result of the increase in working hours and the rise of disposable income5.
The Healthy Buzz has to be flexible on its products and services provided to meet the customer demand. The caf© also has to be competitive on the price of healthy organic food to maintain its competitive edge. 3. 3 The Competitors The Healthy Buzz faces several different levels of competition. Direct competitors are companies that are classified into the caf© and coffee shop industry6, which include: 1. Franchise caf© and coffee shops 2.
A large number of single establishments, owner-operated cafes Due to an excellent understanding of their market, the specialty caf©s and coffee shops are able o quickly respond to customer tastes and preferences, and provide quality coffee and services which has restricted the influence and growth of chain stores7. Although the three largest industry players, with less than 1 1. 0% of combined market share, have limited market power to influence the industry in terms of price or product trends, they continually strive for diverse product ranges, innovative recipes and food quality at competitive price with outstanding customer services8.
Consequently, efficient cost and quality control, as well as maintaining a high level of ustomer services are the priority tasks for the healthy caf© to compete against the chain stores or the other specialty coffee shops and caf©s. Indirect competition comes from the following9: 1 . Fast food retailers”McDonald, Pizza chains, Subway, sushi retailers, Boost etc. 2. Supermarkets and convenience stores Although the fast food operators have be linked to selling unhealthy food, their convenience, inexpensiveness, and accessibility to the customers are still the key factors influencing customers’ decision for dining outlO.
Additionally, fast food operators and the supermarkets and convenience stores have been forced to add ealthier options to their menus, providing less fat or lower cholesterol options to their customersl 1 . This poses a substantial impact to The Healthy Buzz. 3. 4 PESTEL Macroeconomic Environment Despite the global economic downturn, the Australian real GDP slowly grew to 2. 5% in 2013, with an expected average private consumption growth of 2. 5% in 2013-1412.
Even though the strong independent coffee culture in Australia, the economic recession may still has a certain impact on sales of the caf©. Technology Environment Technological advances may influence on the caf©’s operation. Wireless electronic The Healthy Buzz to promote quality service and reduce customer wait time13. The use of Internet provides an additional venue for sales, as well as allowing the caf© to reach wholesalers and suppliers online, reducing problems with deliveries, orders, and so on14.
The company will also establish a presence on social media sites, Facebook and Twitter, which can communicate with consumers in a more personal way while monitoring consumer’s feedback communication. A simple computer- based program, such as EDI (electronic data interchange) will also be used in the etail store function to manage the stock and help on specific stock management problems, as well as increasing efficiency and allowing the company to better predict trendsl 5.
Political and Legal Environment16 There are numerous licenses and application needed to start up the caf© business, which include: Food Business License Outdoor Dining license Premise license Application for Accreditation Application for Approval to Discharge Trade Waste Organic and bio-dynamic certification The followings are the laws and legislation in regard to the food safety and health that the healthy caf© has to comply with: Food Safety Act 2006
Food Production (safety) Act 2000 In addition, some main regulations affecting the retail store of The Healthy Buzz, governing shop-trading hours, mergers to pricing and supply issues which are monitored by the Australian Competition and Consumer Commission (ACCC). Sociocultural Environment With around 63% of Australian adults aged 18 years and over were classified as overweight or obese in 2011-12, the trend toward healthy organic foods and a healthier lifestyle has grown dramatically17.
In response to this demand, the numbers of certified organic processors have grown. Currently there are over 2,500 organic operators representing all levels of the supply chain18, which support the caf© a sufficient supply of organic foods to the business. During the past decade, consumers around the globe have become aware of the advantages of a low- carbohydrate, low-fat and low GI diet. The “lows” menu items abound in restaurants, fast-food chains, supermarkets and convenient stores.
A vast number of “lows” foods, including low-crab candy or low-fat yogurt, fill supermarket shelves19. However, the marketing hype are so misleading that most people are not aware that the processed ood, or even the diet yogurts, breakfast cereals, health bars and energy drinks are loads of sugar which makes people fat20. The Healthy Buzz is able to provide a 100% clean and organic food without any preservation, which allows the caf© to differentiate from its competitors. . 5 SWOT Analysts and threats identified by The Healthy Buzz through the analysis of its internal and external environments. Tablel: SWOT Analysts Strengths An innovative combination of a healthy caf© and a organic retail store A unique, high- quality organic product recipe that provides exceptional taste with high levels of utrition High customer engagement that the caf© allows customers to select the fresh organic food from the retail store and creative their own menus.
The ability to remain flexible and to adapt quickly to environmental changes due to its entrepreneurial spirit Strategic alliances with the health clubs which is experiencing growth Ability to access to the target market due to the strategic location High control of product quality and services level due to the in-house production and flat organization structure Weaknesses Limited financial resources for growth and for advertising and other marketing ommunications Little flexibility in terms of personnel due to size of the firm Reliance on in-house production to maintain quality standards makes it difficult to meet any unanticipated surges in demand of the product which is the result of the high cost of production The problems associated with the selected location are higher rent, lack of parking, security issue, intense competition, and the lack of customer traffic on evenings and weekends A weak network of health clubs, suppliers and distributors Opportunity A strong and growing interest in healthy living among upscale consumers and older onsumers Continuing consumer in healthy convenient alternatives that offers opportunities for health product creation Growing industry of organic farming Treats The competitors, especially those with large financial resources who can invest more in promotion, to develop products that consumers my find superior The threat of second mover advantages The continuation of a slowed economy that might affect sales Fizzling of the organic craze if other forms of dieting gain in popularity Advanced technology may assist innovative promotions and services of the other competitors 4. 1 Marketing Objectives The following are the marketing objectives set by The Healthy Buzz: To increase the awareness of The Healthy Buzz by at least 10 percent among the target market To position the business as a convenient place to eat clean and healthy meals To increase customer satisfaction by getting at least 40 percent customer loyalty within two years To increase gross sales by 30 percent over the next three years 4. 2 Target Market 21 Company research shows that the primary consumer target market for The Healthy Caf© can be described as follows: Table 2: Characteristics of the Target Market Demographics Male and female adults
Ages: 20-50 Average disposable household income: AU$938-1 , 162 weekly Education: college degree or above Primary located in midsize to large urban areas Psychographics Health-conscious, interested in living a healthy lifestyle Frequently go to gym or exercise Spend much time and money taking care of their bodies Enjoy holidays that include physical activities Live very busy lives and have a longer working hours 4. 3 Positioning The Healthy Buzz aims at being different from the others and seeks to position its products as the first-choice caf© for the serious health-conscious consumer, including hose who have health problems or look for organic, healthy and balanced-diet for dining options.
The Justification for this positioning is as follows: We believe that our bodies really want to be lean and light, and strong and healthy, simply because that is the way it is designed to be. We believe that people can feel energized and refreshed throughout the day, simply because we eat and live as Mother Nature intended. With our always fresh, organic, and deliciously innovative food, The Healthy Buzz will be the place to be for breakfast and lunch every day. 4. 4 Value Proposition Table 3: The Value Proposition of The Healthy Buzz The Healthy Buzz has developed its product, pricing, and promotion to communicate a superior, prestige image.
This positioning is thus supported by all its marketing strategies. 4. 5. 1 Product/services Strategies The Healthy Buzz will be divided into two functions, one is for caf©/coffeehouse function and the other is for retail store function. The menus of the caf© and the products sold in the retail store will be consistent to the concept of The Healthy Buzz. Table 4: The Product Line of The Healthy Buzz Caf©/coffeehouse function Product Description Customer Buying Motives Paleo Options A balanced option of eating a good variety of meat, seafood, eggs, fruit, vegetables, nuts, seeds and berries which are free of preservatives, artificial flavors and colors.
Create their favorite meals weight loss better skin, teeth, hair and nails improved sleep balanced energy levels throughout the day increased results from exercise stable blood sugar anti-inflammatory reduced allergies Improved self confidence and general wellness Vegan Options An option abstaining from the use of animal products in diet. For people who oppose he use of animals or animal products for any purpose. Organic coffee Made with organic coffee bean and a variety of different milks including soy, almond and coconut milk To adapt to the Australian strong coffee-dependence culture Green smoothies and Juices A range of freshly-made, innovative and delicious smoothies. The ratio of organic fruit and organic greens in the smoothies and Juices is optional, about 60% organic fruit and 40% organic greens.
Customers can select the seasonal fruits and veggies from the retail store and customize their own smoothies or Juices. Reduce the onsumption of oils and salt in diet Rich in nutritious and fiber Easy to digest An easy way to consume more greens A high protein beverage, prepared by mixing a specially formulated, high-protein power with liquid. Help develop lean muscle mass, encourage fat loss, increase satiety, deliver essential nutrients and improve metabolic activity Clean Treats Provide fresh, friendly and healthy clean sweet treats with only natural ingredients and sweeteners such as: Dark chocolate mug balls Chocolate hazelnut cake Coconut Brulee Fresh Greek Yogurt Avocado chocolate brownie Doughnut with caramel glaze And more.
Sugar, which contains no nutrient to us, is hidden in many forms of commercial fruit juice, white refined sugar, bad carbs, alcohol, cakes, ice cream and so-called “low fat foods” that make us put on weight, increasing the rates of obesity and heart disease. People who have a sweet tooth can satisfy their needs with our clean treats in a right amount of proportion. Table 5: The Products in the retail store function Retail store function Raw and fresh meat/flsh All products sold are organic, fresh and local farmers grown Organic and free range food (including vegetables, fruits, and dairy products) Organic baby food and products A line of The Healthy Buzz products including mayonnaise, sauces, salad dressings, ice-cream and so on.
These products are all made by natural organic ingredients without any artificial sugar or preservatives. Nutritional information will be labeled on the packaging. The products will be initially made in-house and sold in-store. Convenient meal packs These packs contain all organic ingredients required to prepare a meal except for the fresh items, allowing people to prepare their meals without buying heaps of ingredients. Nutritional information and suggested recipe will be printed on the ackaging. The products will be initially made internally and sold in-store. The Healthy Buzz believes that profits result from making customer satisfaction, which is the primary objective of the business.
Therefore, the company will adopt a target costing strategy, which is a demand-based pricing matching the price that the customers are willing to pay. According to our research, 62% potential customers are in favour of lower priced healthy meal options ranging from ALJ$ 11-15. The products will then be designed in such a way that the caf© can produce and sell the product at a profit. For the retail store function, a cost-plus pricing strategy will be applied for the grocery items. 4. 5. 3 Promotions Strategies The promotion objective is to increase the awareness of the target market about our new brand caf©, and to educate people about the benefits of the clean and lean diets through a pull strategy to build the customers’ desire for the products.
For the promotional strategies, we will utilize the media in Brisbane as well as a strategic alliance to generate positive publicity. 1. Brisbane magazines There is a range of free, lifestyle or specialty magazines delivered to homes and hubs across Brisbane. The Healthy Buzz can easily reach the target market through these social medium as the audiences can be narrowly targeted by specialized magazines. We can tailor our news story according to the style of the magazines, and offer a photo and interview for our story about how we make our deliciously healthy organic food, the benefits of consuming organic foods, and the importance of clean eating to weight loss and health. Suggested magazines for posting our advertising are22: bmag Brisbane News Fitness First magazine 2.
Facebook and Twitter marketing Facebook and Twitter, with a far larger audience than old media, provides cost- ffective tools and platforms to increase the visibility of the healthy cafe. The healthy caf© will regularly update interesting and specific contents related to health issues or innovative menus to keep Facebook Page fresh and generate people’s awareness and desire of a clean diet. We will also leverage Facebook Ads, applications, Pages, or Events to encourage user’s engagement via the form of liking or commenting. At the early stage of the operation, the caf© will also offer exclusive information, deals, or discounts Just to members of the Facebook Page. 3.
Strategic Alliances As the caf© is designed to locate nearby the gyms, we intend to get a contract with local big chain gym clubs such as Fitness First or GoodLife Health Club to gain access into their locations and to reach the target market who concern about clean and healthy eating. The members of the clubs would enjoy discount or promotional vouchers, helping the gym clubs to provide a comprehensive health services to their customers. In time, the caf© would build customer loyalty and word of month. Thus, the caf© will not only attract the members of the gym clubs, but also attract the general public who are interested in healthy eating.