Executive summary:

The task has discussed the marketing plan of cafe Bistro D Orsay that will locate in 184 Collins Street in Melbourne. The discussion has been done on the business objective, maetirkng mission, strategy, and external environment. The internal environment of the cafe has been analyzed to identify organizational strength, weakness, threat, and opportunity.  Evaluation of the competitor position has enabled us to understand the issues and challenges that the cafe will face in the market.  

Business objectives

Bistro D Orsay will set some business objectives that will allow the company to fix up and set marketing strategy. The objectives are given below,

• To acquire 15% market share in  Australian small resultant business between 5 years
• To target the sales approach and surpassing  $12 million  by the end of the first year
• To cultivate strong human resource of minimum 300 staffs in the first year
• To open more than 10 branches in different location of Australia

1.3 Description of business activity

The cafe Bistro D Orsay’s primary offering is the gourmet roasted coffee with some varieties such as carmelicious, mocha, white mocha, brewed coffee, and candy bar late.  Along with that, some smoothie will be provided by the café such as wild berry, peach, mango, strawberry, and lemonade (McCamley & Gilmore, 2018). The cafe will provide snacks such as sandwiches, pasta, and fries. The pastry offerings may vary with seasonality but primary offerings will be bread, muffin, cookies, and rolls. The café will select the monopoly market of Australia as the location of the café is the heart of Australia (Melbourne city). The target customer is the young people from the age group of 18-45 years and coffee lovers. 

1.4 Commencement date & commencement capital 

 The business will operate from 1^st August 2021. The business will open from Monday to Sunday from 10 am to 9 pm. The operating expenses of the company will be classified based on the start-up requirement assessment. Total capital investment will be analyzed based on the evaluation.

  Based on the table it has been seen that minimum capital will require the business start-up will $96,679. The business will be a joint venture of two bothers so that the total capital will take for this business is $756,197 that is the total asset of this business. Each of the parties will provide an equal amount of capital for start-up and rest capital will take from the bank loan.  The first business partner will invest $200,000 and the second partner will invest the same. The rest amount of $365,197 will take from the bank in terms of the loan.  

1.5 Business structure

The cafe business will run in partnership between two brothers. The cafe Bistro D Orsay will follow the partnership business structure where each of the partnerships has equal rights in the investment to profit gaining (van Scheers & Makhitha, 2016). The name of two partners is Kenneth Meere and John Tully who are brothers.  The business structure of cafe Bistro D Orsay’s is given below,

1.6 Competitive advantage

The competitive advantage of the business is  classified into the three major portions that are, 

Location: The location of the cafe is 184 Collins Street Melbourne that is the popular city and connectivity of this location is very unique. Customers will not face any issues to reach the location.  

Product and service: The cafe will focus on the multiple coffee range along with the facility of customized service (Paddison & Biggins, 2017). Destination will prepare as per the customer need that is the major competitive advantage 

Target population: target population range is very high 18-45 years and coffee lovers. A huge range of service classification will enable Bistro D Orsay to take a competitive position. 

1.7 Owner or owners’ profiles

1.8 Licences and registrations

The cafe will hold some follow licenses and permit to sell products and services in the location. The licenses are given below,

• Foodservice License
• Employee Identification Number (EIN) 
• State Licenses
• Liquor license
• Sales Tax License

1.9 Business advisors

2. Operational strategy:

The internal operation of the cafe Bistro D Orsay will enable the company to achieve long term operation.  Internal operations includelocation, premises, plant and equipment management, environmental strategy, and marketing plan (Enckell, 2016).

2.1 Location and premises

Leasing agreement: The location of the cafe Bistro D Orsay’s is 184 Collins Street Melbourne.  The café will take a lease from a restaurant that has already been closed last year. The apartment will take for an initial 5 years lease by the owner of the Café. The owner of the company will take this apartment as it is already ready for use.  Rent for the apartment is $400 per month.  The total area of the apartment is 400 square meters. The apartment will take the lease on the name of the first partner Kenneth Meere (Erkollar & Oberer, 2017). All the legal activities will compete with the presence of a managing agent and landowner.  

Describe the premises: The location of the Café Bistro D Orsay’s is 184 Collins Street Melbourne that is very popular for the transportation facilities.  The location is very close to the Regent Theater. Connectivity with the main road of Russell Street will enable the cafe to maintain huge customers. The area is occupied by the commercial buildings as well as the residential building so that people for working purposes will visit this café (Marsiwi et al. 2019). The café will very near to St Paul's Cathedral.  Apart from the location, Bistro D Orsay will provide valet parking facilities to the customers. Customers can book a car from the Café as the Café will take some car for rent.  

2.2 Plant and equipment

2.3 Major suppliers

Major supplies of the Cafe are local suppliers. Café Bistro D Orsay’s for their raw material supply will choose as it will be more beneficial. Transportation and logistics costs will comparatively low as they will choose local suppliers (Mohamud et al. 2017).  The Café will receive a discount on purchasing signature pieces of dining sets, furniture, and kitchen appliances from the Melbourne retail store. 

2.4 Shrinkage

To minimize shrinkage and loss, the cafe Bistro D Orsay will maintain a major security system. Strong internal control will take where during recruitment and selection proper documentation will do.  CCTV cameras will put in every area of the café to protect the threat of theft (Türko, 2016).  Fire escape and fire alarm, fast aid facilities, and damage control facilities will exist in the cafe. 

2.5 Personnel (human resources) strategy

The human resource strategy of Bistro D Orsay’s is about to recruit workers who have effective skills and experience to work in their designation.  The employees have to work for 6 hours per day and 6 days a week. Along with the salary the employees of Bistro D Orsay’s will provide financial benefits and rewards (Morland, 2017).  Basis salary starts from $900-$1200 for kitchen helpers and waiters.  Part-time workers of Bistro D Orsay’s will provide wages per hour.  Part-time workers will provide $6 per hour. 

Summary of positions

2.6 Strategic alliances

Bistro D Orsay will not build any strategic alliances with other companies. It is a partnership company and resources will take from other companies in terms of making buyers and suppliers relationships.  

2.7 Environmental strategy

The Bistro D Orsay will follow the Australian corporation Act 2001 where all the business principles that the companies under the Australian government need to follow will follow by this café (Higdon, 2016).  Following the environmental protection Act and legislation of Australia, Bistro D Orsay will follow waste management and recycling.  

3. Marketing plan

3.1 Overview

Bistro D Orsay will operate in the fast-food retail chain of Australia.  The Australian food sector will reach USD 80.7 billion by 2025.  In terms of Coffee production, Australia is not the major operator of coffee bean production (Ferreira & Pinheiro, 2018).  Therefore, the café business comes under the fast-food industry that is growing very rapidly. The market share of the fast-food industry is 35% as per the 2018 market data. 

3 .2 SWOT analysis

3.3 PEST analysis

3.4 Competitor analysis

 Based on the assessment, Bistro D Orsay will face strong market competition from Kettle Black as this restaurant is competitively attractive in its service range and product quality.  The price range of this café is satisfactory for customer attraction.  

3.5 Target market - identification and segmentation

The market will segment as per the demographical location and economical condition of the people of Melbourne.  Based on the assessment target customers of 18 years to 45 years will select by the marketing manager of the café (Watson, McGowan & Cunningham, 2018).  Based on the assessment positioning will continue in the form of social media marketing and product plan. 

3.6 Marketing objectives

3.7 Marketing mix

Product:  The cafe will sell coffee and different types of snacks to the target customers.  The unique quality range of the product will attract customers.  Customer will provide value-added services like valet parking pick up and drop by rent and customized decoration.  

Price: Price range will set as per the demand of the customers.  The average price of the dish is $80 that can easily afford by the target customers.  

Place: The location of the cafe is unique due to transportation facilities and localities. Commercial buildings and the residential location is helpful for customer supply (Fichter & Tiemann, 2020). 

Promotion: The application of social media and digital media channels for product promotion will be helpful. Bistro D Orsay’s will promote their company through Facebook, Twitter, and Youtube (Higdon, 2016).  

People: Recruitment of the local employees will enable the company to maintain a marketing position.  The demand for local customers will analyze by Bistro D Orsay’s from the local employee. 

Process:  Each of the processes like payment process, service process, preparation process, and supply chain process of Bistro D Orsay’s will be very systematic so that market sustainability will maintain.  

Physical evidence: Bistro D Orsay will focus on the quality of service so that customer's perceptions towards the café will positive (Morland,  2017). 

4. Financial strategy 

The financial strategy undertakes the following:

• Break even analysis
• Profit and loss statements 
• Cash flow 
• Balance sheet 

Break-even analysis 

Monthly revenue break-even = $ 200000

Assumptions: 

Average VC = 10%

Estimated average FC= $50000

4.2  Profit and loss statement 

4.3 Cash flow statement 

4.4 Balance sheet 

5. Risk analysis: 

6. Evaluation: