Analysis of Marvin and Smith’s Coffee Shop Business Plan
Assignment Brief
Hank Marvin and Patty Smith have worked together for years in the food and catering industry and, having the same dream to run their own business, decided to open their own coffee shop. Hank and Patty spent 12 months researching and planning the details of their coffee shop to decide on the best location, who their target market was, how much capital they would be able to raise, key competitors, what suppliers they would use and what products and services they would offer in their coffee shop and so forth. Then in January 2017 Marvin and Smith’s coffee shop was opened in Wandsworth in South London.
Sample Answer
Analysis of Marvin and Smith’s Coffee Shop Business Plan
Introduction
Business planning is a crucial step for any start-up, especially in the competitive food and beverage sector. A well-developed business plan provides direction, clarifies goals, and ensures that the founders can anticipate risks and opportunities effectively. Hank Marvin and Patty Smith, two experienced professionals in the food and catering industry, decided to pursue their shared dream of running their own coffee shop. After spending twelve months researching, planning, and preparing, they launched Marvin and Smith’s Coffee Shop in Wandsworth, South London, in January 2017.
This essay critically analyses their business plan by assessing its strengths and weaknesses across key areas, including market research, target market identification, competition analysis, financial planning, location choice, marketing strategy, and operations management. Recommendations are then provided to improve the business plan and strengthen its long-term sustainability.
Business Planning and Market Research
A business plan begins with detailed market research, which serves as the foundation for all subsequent decisions. Marvin and Smith spent twelve months planning, which demonstrates a strong commitment to understanding the market before launch. The UK coffee shop industry has experienced rapid growth over the past decade, driven by changing consumer habits, the popularity of artisan coffee, and the social aspect of coffee culture (Allegra, 2016).
By choosing to conduct year-long research, Marvin and Smith were likely able to evaluate key industry trends, such as the growing preference for independent coffee shops over large chains. This is especially important in areas like Wandsworth, where there is a mix of young professionals and families who value quality, ambience, and ethical sourcing. However, while the extended planning period is commendable, the case does not specify whether their research involved quantitative data (e.g., surveys or financial projections) or relied mainly on observational analysis. For a start-up, the quality and depth of data collection directly influence accuracy in forecasting demand, pricing, and profitability (Burns, 2016).
To strengthen their business plan, Marvin and Smith should have incorporated primary research, such as customer surveys or focus groups, to assess local preferences, and secondary research, including industry reports and competitor data. This would have helped them tailor their offerings and set realistic performance expectations.
Target Market and Customer Profiling
Understanding the target market is vital for creating a sustainable customer base. Marvin and Smith identified their target customers as those living and working in Wandsworth, a relatively affluent area of South London. The demographic includes young professionals, students, and families, many of whom enjoy local, community-based dining experiences.
By positioning their coffee shop to cater to this group, they tapped into a market segment that values both quality and experience. Customers in this area often look for more than just coffee, they seek a comfortable environment to work, socialise, or relax. This aligns with modern consumer behaviour, where coffee shops are often seen as “third spaces” between home and work (Oldenburg, 1999).
However, the business plan would have benefited from a more segmented approach. For example, developing customer personas (e.g., “the remote worker”, “the morning commuter”, “the weekend family”) could help them create tailored promotions and services. This segmentation also aids in targeted marketing through social media and loyalty schemes.
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