Date Prepared
May 10th
San Jose City College
TABLE OF CONTENTS……………………………………………………..2
EXECUTIVE SUMMARY…………………………………………………...4 OBJECTIVE…………………………………………………………………….........4 MISSION……………………………………………………………………………..5 VISION……………………………………………………………………………….5
KEY TO SUCCESS…………………………………………………………………..5
INDUSTRY ANALYSIS………………………………………………….......6 STRENGTHS…………………………………………………………………………6
WEAKNESSES………………………………………………………………………6
OPPORTUNITIES…………………………………………………………………....6
TREATS………………………………………………………………………………7
MARKETING STRATEGIES SUMMARY………………………………...8 PRODUCTS AND SERVICES……………………………………………………....8 PRICING STRATEGIES…………………………………………………………….8 PLACING………………………………………………………………………….....9 PROMOTION STRATEGIES……………………………………………………….9
COMPANY SUMMARY……………………………………………………10 OWNERSHIP……………………………………………………………………….10 LOCATION AND FACILITIES……………………………………………………10 START-UP COST…………………………………………………………………...11
MARKETING ANALYSIS SUMMARY…………………………………...12 MARKETING SEGMENTATION………………………………………………….12 TARGET MARKET…………………………………………………………………13 MANAGEMENT SUMMARY………………………………………………14 MANAGEMENT TEAM…………………………………………………………….14 PERSONNEL PLAN………………………………………………………………...16 IMPORTANT ASSUMPTION………………………………………………………16

1. Executive Summary
When the economy is growing fast, the majority of Ho Chi Minh City residents become richer. Their standard of living is higher as a result. People expect higher quality in the products and the services they get. Nowadays, customers do not say “drink a cup of coffee” anymore; instead, they use “enjoy a cup of coffee”. They expect not only high quality coffee, but more than that they expect to have a relaxed, joyful time when they come to a coffee shop. Love café is opened to satisfy that demand.
Main products Love Café offers are coffee, soda, smoothes and some other drinks. Love café also sells fast food for breakfast, lunch, dinner. There is also a wireless internet network available. With it, customers will be able to go online while they are enjoying their coffee.
Total amount of capital is $400,000. It is the contribution from two different parties. $300,000 is used for operating the business. It includes infrastructure’s fee, rent, employees’ salaries, input goods fee and so on. $100,000 left will be a reserve fund for additional financing. The scale of the coffee shop can be expanded if it operates successfully in the first year. 2.1 Objective
To customers, Love cafe’s objectives for long-term include: * Provide good meals, good coffee, beverages, and good customer services at a reasonable price. * Be sure customers feel relaxed and comfortable.
To the store, its objectives are: * Every employee cooperates and helps each other to perform a great business. * Earning profit above $10,000 per month.

2.2 Mission
Successfully retain its customers. The competition in the industry is very tough. Therefore, the store mission is making sure customers are happy when they leave. Then they can come back later, even better, with more friends. 2.3 Vision
People can come to the store for various purposes. It can be a place to celebrate a birthday party. Friends can come there to chat. Students can use the internet network as a great resource for studying. Business people can continue with their works after office hour.
Ultimately, spending a couple hour in a coffee shop seems to become a habit of people in Ho Chi Minh City. Therefore, it is really promising to invest in Love café. 2.4 Key to success
The keys to the success for Love café are: * Serving customers with all devotedness. * Listening and responding to every comment as well as complaints from customers. * High quality products. * Visibility of the store. * Friendliness of the staff. * Marketing strategy.

2.0 Industry Analysis
Industry analysis helps us to realize our internal strengths and weaknesses. It also helps Love café predict its external opportunities as well as potential treats. From that, Love café can respond to any specific situation that can occur in future.
2.1 Strengths * Love café is new in the market. In the first two year, I think “being new” is strength. When people see a new coffee shop, they are always curious to find out how it looks inside, what the products are, or how the quality of coffee is. * High quality products. Foods and services are guaranteed to be always in great quality. * Friendly staffs. Customers can expect to receive best serving by Love café’s staffs. Our staffs are willing to explain any question and listen to any comment from customers.
2.2 Weaknesses * Love café is new in the market. Love café will face great competition from long time-well-established stores in the area. Beside, being new means not too many people know about it. That reminds us the importance of our marketing plans. * A dependence on quality of input materials. If the weather suddenly turn bad and affects to the quality of raw coffee, it will indirectly affect to the coffee shop business.
2.3 Opportunities * Growing in number of potential customers. The economy of Ho Chi Minh City is growing fast; therefore standards of living as well as incomes of people are also increasing. Then people are more likely to come to a coffee shop to enjoy a cup of coffee instead of preparing a cup of coffee themselves at home. * Increasing in demand of using the Internet. Internet is not new to people in Ho Chi Minh City anymore. In fact, it is really familiar now. And the demand for using internet keeps increasing rapidly. Coming to Love café, customers will not have to go to two different places: a coffee shop and an internet store.
2.4 Threats * A lot of competitions. Many coffee shops have already been there, and new competitors enter the market every six months. Therefore, competition is very tough. * Falling in costs of computers and Internet access. Most people have computers at their home today, and the fee for a high speed internet access is only around $20. People can afford that price. Then it will reduce the utility of the Internet network in the coffee shop.

3.0 Marketing Strategies Summary
Love café will neither spend money for advertising on TV nor newspaper. I personally think they are not efficient ways to make people know about my coffee shop. Instead, the capital will be used for decorating the store such as landscaping, installing neon lights and neon signs. It does not mean that the store will be flashy.
Besides, it will be special enough to attract attention of people who pass by. Then those people will probably tell their friends, their relatives about the coffee shop later on. In my opinion, that is a good way to advertise for the store. 4.1 Products and Services
Major products of Love café are coffee and beverages. Food for breakfast, lunch, dinner and the Internet network will be additional products. In my opinion, serving good products is the main key to succeed in business. Therefore, Love café will highly focus on the quality of its products as well as the quality of the internet network. The store has come up with some strategies based on products to compete to other competitions: * Keeping the quality of products as high as possible. * Beverage and food items will be changed a little bit every day. By doing that, customers can still choose their favorite products, and they can decide to try a new product with new taste. * Beverages and food will be expounded nicely. * Create a special and unique flavor for coffee.

4.2 Pricing Strategies
Love café is considered as one of the top coffee shops in the city. Therefore, prices are as high as prices in other top ones, but very important, they are reasonable. Customers will not feel the prices are high because they will realize the products and services of Love café worth the money they spend. 4.3 Placing
The only place where customers can buy coffee or beverage of Love café is at the store. That is why the coffee shop does not have any placing strategy. 4.4 Promotional Strategies
Love café acknowledges that promotion is a good strategy to keep formal customers and seek for new customers. Through the promotion Love café will send its information outside to build consumers’ awareness and demands. These are promotional plans that the coffee shop will apply: * Beautiful pens are placed at multiple places in the store. Customers are free to take them. The brand name “Love cafe” and its address will appear on those. * Giving customers free key-rings attached with many small plastic cards (one per customer). On two sides of those cards will be the brand name “Love cafe”, its address and pictures of product items. * Whenever one customer pays more than $10 for the bill, he or she will have one free cup of coffee to bring home. Then friends or relative of that customer will be able to have a taste of coffee at Love café. * Customers have one free beverage on their birthday. * Discount 10% for a group of ten or more customers who called for reserve earlier.
In future, when new competitors enter the market, Love coffee will invest more capital for promotion in order to maintain the market share. 4.0 Company Summary
Love café is located in the center of Ho Chi Minh City in an area of 800 m2. The store is divided into two main parts: outdoor and indoor.
Customers who feel uncomfortable with the cool air from the air condition machines may choose to have seats outdoor. Realizing that it can be really hot at noon, Love café has planted a lot of trees and different kinds of flowers. Those trees go along with a small fish pond built at the middle will cool the atmosphere down.
Indoor is a different part. With the cool air and soft music, it will be a great place for customers to relax after a hard working day.
4.1 Ownership
The ownership of Love café is general partnership. My partner and I share in both operating the store and holding unlimited liability for the shop’s debt. The coffee shop is willing to accept more general partner in case the store will be expanded in future. 4.2 Location and Facilities
Love café will be located at 183 Nguyen Thi Minh Khai Street, District 1, Ho Chi Minh City. Its location is in the center of Ho Chi Minh City. That site is chosen for various reasons, including: * It is a beautiful region. * High density in population. * Ho Chi Minh City is a popular destination for tourists and foreign investors. * Easy access. * High visibility.
4.3 Start-up Cost
Total amount of capital is $400,000 for the first year. Infrastructure is a biggest cost. It includes construction costs, furniture costs, decoration costs, landscaping costs. The second largest cost is for the rent. Because Love coffee shop locates at the center of the city, the rent is pretty high. It could be up to $90,000 in the first year.
In addition, costs will be allocated for hiring employees and input products.
Finally, any additional cost is secured by a fund of $100,000.
Table: Start-up

Start-up Expenses

Construction $ 62,000 Furniture $ 25,000 Decoration $ 18,000 Landscaping $ 15,000 Rent (1 year) $ 90,000 Maintenance $ 5, 000 Total Start-up Expenses $ 215,000 Start-up Assets Cash require $ 21,000 Total $ 236,000 5.0 Marketing Analysis Summary
A big advantage of a coffee shop is that it has a wide range of customers. Kids can come to a coffee shop with their parents. Students can come there to chat. Business people can continue their works there. A coffee shop can also be a romantic place for lovers. Furthermore, with additional services such as serving food for breakfast, lunch, and dinner, Love café is now able to attract people who want to go to a restaurant to have meal first before they come to a coffee shop. Love café is faced with a great opportunity to go forward.
5.1 Market Segmentation
Due to the wide range of customers, Love café divides its customers into five groups. They are university students, office workers, seniors, teenagers and other. The market Analysis chart below shows more details about the market segmentation of the store.

Market Analysis

5.2 Target Market The main target markets of Love café are people who are from 18 to 40 year old. It is because when comparing people in 18-40 year old group to others: * They come to a coffee shop much more frequently. * They are familiar with the Internet and they have a higher demand of using the Internet. * They have good incomes and they are willing to spend them. * They usually like to show their wealthy (a fancy laptop, a luxury car/motorcycle) as well as their social status.

6.0 Management Summary
The structure of Love café is flat. Three main services of the store are serving breakfast, serving coffee and other drinks (soda, juices, soft drinks and so forth), and providing a wireless internet network which customers can connect to the Internet with their laptops. There is a manager for each of those three. Besides, there are two more managers for accounting and security department. 7.1 Management Team
I will have a partner in this business plan. Therefore, she and I will be the owners of the coffee shop.
We will have 5 managers: * A manager of beverage service: He should know about coffee, and knows where to buy best raw coffee with acceptable prices. He also knows how to make great cups of coffee for customers. * An IT manager: He will take care of everything that relates to internet part. He will be at the coffee shop most of the time. * A manager of food service: Having good meals is as important as having great coffee cups, so she needs to make sure that raw materials bought from markets have to be fresh. * A manager of accounting department: She will synthesize all costs and profits every week, and then report them to me or my partner. * A security manager: This department has only about 4 employees, but it is not less important than others. When people decide to go to a coffee shop, they expect a relaxed time. That is why I want customers to feel comfortable right after they stop at Love café. They will have parking tickets fast, and then their motorbikes will be ridden to the parking lot by the employees.

Organization Chart of Love café

7.2 Personnel Plan:
The staff will consist of 10 part-time waiters and waitresses, 4 full-time employees who prepare drinks, 3 cooks and 4 employees work in security department. Working employees can be flexible. The number of employees work on weekends is more than the number of employees work on weekdays. Employee can shift their working hours in case of family emergencies as long as they report to their managers in advance.
The salary for manager will be $600 per month, and salary for every employee left will be guaranteed at least $250 per month (it depends on how well the business is going and tips from customers).
Table: Personnel for a month | Pay roll | People | Total | Manager | $600 | 5 | $3000 | Waiter/Waitress | $200 | 10 | $2000 | Drinks preparers | $250 | 4 | $1000 | Cook | $300 | 3 | $900 | Security guard | $200 | 3 | $600 | Total | | | $7500 |

7.3 Important Assumption
Besides expenses for input products and salaries, Love café will build a fund for compensating the depreciation of equipments such as tables, chairs, lights, plants and so forth. After all, Love café is expected to bring back at least $6,000 per month for two co-owners.