Business plan of Mochalicious Term Paper 6 pages

Business Plan

Marketing Plan

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Business plan of Mochalicious

Business PLAN i

This assignment is based on the new business of a coffee shop, which is going to be opened in Australia, where people love to drink coffee, and it is the lifestyle of Australians. The name of the company is MOCHALICIOUS. Furthermore, this report will provide the background of the company and business mission. This report will analyze the marketing plan of the new business and market positioning, targeting, and segmentation is also discussed in this assignment. At the end, conclusion is also given.

Business description

Business mission and objective

Australian market for “MOCHALICIOUS”

Marketing plan

Product strategy

Pricing strategy

Promotion strategy

Potential audience and their needs

Market segmentation and target market

SWOT Analysis





Market positioning



Business PLAN iii


This assignment focuses on the business of coffee shop which is shortly going to be open in Springvale Victoria “in Australia,” and the brand name is “MOCHALICIOUS.” Australia is the country, where people love to drink coffee. Australia is a cold country that is why Australians mostly like to drink hot drinks. The sales of coffee in Australia in 2012 were $773 million, and in 2013, it will approximately lead to $800 million. Drinking coffee is one of the traits of Australian culture that is why, in Australia, coffee is available in all cafes and restaurants (Rose, 2010). Moreover, the growth in sales of coffee in Australia is increasing day by day. These are the reasons for which we decided to open a coffee shop named as “MOCHALICIOUS” in Springvale Victoria “in Australia.

A.1 Business description

The nature of the business that will be shortly starting in Australia in Springvale Victoria will be a coffee shop. Researchers have analyzed that Australians are the lovers of coffee; they like to drink coffee more and more. Therefore, it will be a beneficial business to open a coffee shop on that street “Springvale road” where several coffee shops and cafes are present. Drinking coffee includes in the culture of Australians, as well as it has become the lifestyle of Australians. The growth sector of sales of coffee is immensely increasing in Springvale. The new business will be opened by an entrepreneur. There will be no need to do the marketing of that product on high basis because it already positions in the minds of Australians. An entrepreneur will spend $80,000 in buying the shop. $500 will be the operating cost of the business which includes gas, electricity and all other expenses. The working hours will be 12pm to 10pm. An entrepreneur will decide to appoint six employees. In which, 4 employees will do the job of waiter: 1 will be the chef and the last one will be the manager and the manager will also perform the job of cashier. The shop will be designed in an attractive way to create a peaceful atmosphere. Different flavors of coffee will be offered such as cappuccino, Irish coffee, iced coffee, frappuccino, espresso hot coffee, mocha coffee.

A.2 Business mission and objective

The mission of the business “MOCHALICIOUS” is to deal with the best quality. They tend to serve fresh and hot coffee according to the needs of their customers so; they intend to generate a peaceful environment where their customers can feel better and can enjoy their drinks. The main objective of “MOCHALICIOUS” is to open a well-designed coffee shop in Springvale Victoria “in Australia” to attract the customers of every class. They offer all items at reasonable prices so that every customer can easily afford it.

A.3 Australian market for “MOCHALICIOUS”

Australians love to drink coffee and the nation of Australia spends millions of dollars per year in drinking coffee. The sales of coffee in Australia are immensely growing. To open the new business of coffee shop in Australia in Springvale Victoria will provide profit to the dealers of the business to a great extent. In Australia, coffee is assumed to be a number one hot drink, and it has become the lifestyle of every single Australian. The usage rate of coffee in Australia is high because of which coffee has now included in the culture of Australia (Commonwealth of Australia, 2011). Therefore, there will a positive outcome for an entrepreneur to open a coffee shop named as “MOCHALICIOUS” in Australia.

“MOCHALICIOUS” will be no need to do additional efforts for marketing their product because it already exists in their tradition. In 2013, the sales of coffee are expecting more than $800 million in which the sales of all other cafes and restaurants are not included. In Australia, every class like upper class and middle class used to consume coffee in large quantity. Consequently, MOCHALICIOUS have to offer their products at economical prices. Especially, in Australia youngsters much like to consume coffee as compare to other aged classes.

B.1 Marketing plan

Marketing plan includes product, price, promotion and place.

Product strategy

MOCHALICIOUS will offer their drink in three sizes that will be large, medium and small. The rates of these sizes will be large for $5; medium for $4 and small will be offer for $3. MOCHALICIOUS will offer different flavors of coffee with the best quality named as cappuccino, Irish coffee, iced coffee, espresso hot coffee, mocha coffee and frappuccino. They used to serve the coffee to their customers with extra topping of creme and chocolate syrup to make their regular customers, loyal customers to their product.

Pricing strategy

MOCHALICIOUS sets out the pricing strategy in order to attract their customers towards their product. Whenever a new company enters into the foreign market, they must have to face their competitors in the market. Therefore, MOCHALICIOUS will offer their coffee at minimum prices as compare to their competitor. After developing an image in the coffee market, “MOCHALICIOUS” they may adopt the competitive pricing strategy (Liu, 2010).

Promotion strategy

When a new product enters into the market they should adopt the promotional strategies to create awareness of their customers towards their brand. Effective communication is one of the ways to positions the superior image of their brand into the minds of their customers. Customers will be able to know much better about the brand by an effective communication. First of all, the company should target customers and provide all the details and positive effects of their brand to their consumers. Advertising, public relations and direct marketing are the main parts of promotional strategies which will be adopted by “MOCHALICIOUS” to force their customers to visit their coffee shop and purchase the delicious hot and fresh drinks (Fourie & Ball, 2012).

Nowadays advertising strategy is the main part to promote any brand into the market. Ads on television, radio and newspaper included in the advertising strategy. The ads should be colorful to attract the customers of all aged classes and should describe all the characteristics of MOCHALICIOUS. As the new business is decided to start in Australia so it will be easy to create an interest of Australians towards MOCHALICIOUS because they are coffee lovers. MOCHALICIOUS should adopt the AIDA plan in which first of all the company create awareness of the customers about the product, than the interest of their customers will be develop by TV commercials, then the plan makes the customers desired of MOCHALICIOUS and finally customers takes action to buy the product. MOCHALICIOUS should also use different ways of new technology to promote their product in the Australian market; they can send the details of their product by direct mailing with the use of data bases and can send direct messages on the phones of their customers (Tuten & Ashley, 2011).

MOCHALICIOUS should adopt the marketing strategies to promote their product according to the culture of Australians. Australians are very close to their religion and this strategy will be the best of all to attract the nation of Australia. MOCHALICIOUS can also adopt social media strategy to get their customers familiar with their product by the use of face book, twitter, LinkedIn etc. (Thackeray et al., 2008).

Place strategy

MOCHALICIOUS is a new business and decided to open in Springvale Victoria “in Australia”; because this is the place where cafes are common and the huge amount of the public visit daily. Furthermore, MOCHALICIOUS will serve the coffee to their customers through direct selling.

B.2 Potential audience and their needs

The potential audience for MOCHALICIOUS is the coffee lover. The people who want a pleasing environment and want to enjoy a sip of coffee for relaxing themselves; is the potential audience of MOCHALICIOUS. The needs of our potential audience are to relax, feel comfy, and refresh themselves, being modish and socializing.

B.3 Market segmentation and target market

MOCHALICIOUS will target two types of market; these are primary and secondary target market. The secondary are those who are above 36 and would like to prefer tea as compare to coffee. Thus, MOCHALICIOUS will target those customers to deliver them the coffee of light taste. In addition, the secondary market also includes those people are economically not so well, and their budget is not high as compare high class and middle class people. They do not assume the coffee, their life style. The primary customers are those people, who are youngsters, and middle-aged people as 13 to 21 are youngsters and 22 to 35 are middle aged people. They treat coffee as modish way of living. They prefer to drink coffee as compare to tea. People of upper and middle class will also be targeted and will offer affordable prices which will be suitable for both classes.

B.4 SWOT Analysis

The SWOT analysis of MOCHALICIOUS is described below which includes strengths, weaknesses, opportunities and threats.


The strengths of MOCHALICIOUS will be the quality which will be provided to their customers. People use to drink coffee for refreshing their minds. Therefore, when they will visit the coffee shop they expect to drink coffee in a peaceful environment. It will be also one of strength for MOCHALICIOUS that it has innovative flavors that they are offering to their customers according to their needs and wants.


As the Australians are lovers of coffee therefore; numbers of coffee shops are present in Australia. MOCHALICIOUS have to do the great efforts for developing an image in the market and people are unaware of their product and also with the taste of their product. Moreover, sometimes people prefer tea as compare to coffee.


There is a huge demand of coffee in Australia. MOCHALICIOUS is opening at the right place at Springvale Street in Springvale Victoria “in Australia.” MOCHALICIOUS is offering different flavors of coffee and at lower prices so it will be the great opportunity for MOCHALICIOUS.


Other cafes and restaurants will be the threat for MOCHALICIOUS because people are already satisfied with the quality of other cafes. In summer season, the sale of hot drinks will lead down the sales of MOCHALICIOUS. Consumers can switch to other coffee shops because of the increment in the prices.

B.5 Market positioning

Business of a coffee shop will be starting in Australia, and the brand name is MOCHALICIOUS. The sign of MOCHALICIOUS will be full of colors and the cup in which they will serve the coffee will be more attractive and stylish. MOCHALICIOUS will positions in the minds of their customers by attractive and unique TV commercials: as its name MOCHALICIOUS is a unique and a different name which differs it from other brands. MOCHALICIOUS will position their image in the minds of their customers by providing different flavors of coffee at lower prices and also by way of garnishing the coffee cups. If MOCHALICIOUS will do the strong positioning than it will be more beneficial for MOCHALICIOUS to earn more and more profit. They offer their product at affordable prices for both upper and middle class people so that they can afford it easily. MOCHALICIOUS also positions in the minds of their customers by way of direct messaging to their customers to invite them at their coffee shop. MOCHALICIOUS is a unique name and unique name always quickly positions in the minds of the consumers.


The conclusion of this assignment is that, MOCHALICIOUS is a new coffee shop which will be soon open in Australia in Springvale Victoria, where people are lovers of coffee. It has been estimated that the sales of coffee will exceed to approximately $800 million in 2013 and people spend $773 million per year on coffee. MOCHALICIOUS will provide their product at affordable prices so that people of every class can enjoy their coffee. MOCHALICIOUS will target the customers of every aged class. MOCHALICIOUS will adopt different marketing strategies to promote their product. It strongly positions their product into minds of their customers by offering different flavors and by developing a peaceful and calm environment at their coffee shop.


Commonwealth of Australia (2011) Australian food statistics 2009-10. Australian Government.

Fourie, I. & Ball, L. (2012) Promotional strategies for information products and services — aligning with the serious and entertainment facets of information consumers’ lives. Library Hi Tech vol.30 no. (4).

Liu, H. (2010) Dynamics of Pricing in the Video Game Console Market: Skimming or Penetration? Journal of Marketing Researchvol.47 no. (3) p.428-443

Rose, D. (2010) Australia a nation of coffee drinkers. The Sydney Morning Herald.

Thackeray, R., Neiger, B., Hanson, C. & McKenzie, J. (2008) Enhancing Promotional Strategies Within Social Marketing Programs: Use of Web 2.0 Social Media. Health Promote Pract vol.9 no. (4) p.338-343.

Tuten, T.L. & Ashley, C (2011) Promotional strategies for small businesses: Group buying deals. Journal vol.7 no. (2).

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