Social, Ethical and Legal Implications - TDMaddox

Organic Fusion Teahouse and Café University of Phoenix

MKT 571

Team C

Ivan Reyes

Mark Mallos

Alan Taylor

Marketing Plan

Organic Fusion Teahouse and Café

Created by: AIM Consulting Group

Alan Taylor

Ivan Reyes

Mark Mallos

AIM Consulting Group

500 Humane Way, Pomona, CA. 91766

Phone: (909) 623-9777 Fax: (909) 623-9888

Organic Fusion Teahouse and Café

11000 Wilshire Blvd #1700

Los Angeles, CA. 90024

February 5, 2020

Dear Board of Directors,

AIM Consulting is very excited to have had the opportunity to prepare a marketing proposal for the strategic planning of expanding Organic Fusion Teahouse and Café onto the international stage. Our report is an in-depth analysis and strategic planning of current situation analysis, marketing objectives and strategies. Developing product mix and price mix strategies, along with product placement and promotion ideas to best penetrant and grow in the Japanese dynamic markets.

The market plans include budgetary demands along with the first-year investment cost and operating cost, including projected sales numbers based on customer analysis in the Japanese market, weighted to the average sales numbers of previous openings. Forecasting budget numbers for three years, based on the analysis for market demand and growing trends in Japan. So, an extremally exciting investment opportunity in the Japanese Teahouse and café market.

AIM Consulting Group is looking forward to the opportunity to discuss and help develop any further analysis and or market information in the future.

Best Regards,

AIM Consulting Group

Table of Content

1.0 Executive Summary “Key parts on the plan”

2.0 Situation Analysis

2.1 Organization Description

2.2 Mission Statement and Vision Statement

2.3 Product Description

2.4 SWOTT Analysis

2.5 Host Country Synopsis

2.6 Target Market Characterization

2.7 Market Potential

2.8 Trade Barriers to Entry

2.9 Competition Landscape

3.0 Marketing & Objectives Strategies

3.1 Marketing Objectives

3.2 Market Research Hypothesis

3.3 Market Research Approach

3.4 Market Segmentation and Penetration Analysis

4.0 Product Mix Strategies

4.1 Product Description

4.2 Product Differentiation

4.3 Product Positioning and Branding Strategy

5.0 Price Mix Strategies

5.1 Pricing Strategy

5.2 Suggested Selling Price Point

5.3 Profit Margin and Markup Strategy

6.0 Place/Placement Mix Strategies

6.1 Placement Strategy

6.2 Distribution Strategy

7.0 Promotion Mix Strategies

7.1 Promotion Campaign Strategy

7.2 Public Relations Strategy

7.3 E-Business Practices

8.0 Communication Plan Strategies

8.1 Communicating Value Campaign Strategy

8.2 Stakeholders Communication Plan

9.0 Overall Marketing Plan Implementation and Financial Strategies

9.1 Marketing Plan

9.2 First-Year Operational Budget

9.3 Three-years Sales Forecast

10.0 Control and Performance Monitor Strategies

Conclusion “Strategic Intent” – only old information

References & Appendixes

1.0 Executive Summary

AIM Consulting Group has developed a Marketing Plan for the expansion of the Organic Fusion Teahouse and Café into Japan.

The Marketing Plan is comprised of key factor for strategic entrance into the Japanese market covering key topics from situation analysis and marketing objective and strategies. Formulating and analysis market research to launch the Organic Fusion Teahouse and Café brand by research the combabilities of the United States operation to Japan’s market. Marketing plan includes strategic research into the four “P,” Product, Price, Place and Promotion. With a complete implementation plan and financial strategies as well as control and performance monitoring strategies in the new market.

Key factors; An opening in the Japanese market and research showing the openness and willing to accepts and US Teahouse in Japan. Small barriers to entry and growing market segmentation for the marketing goods. Multi key locations and sites to ready to accept the new product. Financial strategies have a very low risk and operation cost, allow for a project ROI within three years of opening. Only seven months to launch an Organic Fusion Tea House in Japan.

2.0 Situation Analysis

Bringing new and modern style of Fast- Food and with traditional taste of Japan. We find ways for traditional Japanese and millennials Japanese enjoy drinking tea and coffee in a Western Fast-Food style with healthy choices. With our different approach and unique style of serving high quality drinks and people that craves for western style Fast-Food will definitely enjoy our food and services.

2.1 Organizations Description

We are dedicated to serve outstanding organic food and drinks. Your satisfaction is our greatest motivation. Please enjoy yourself while you dine with us and share your experience with your family and friends.

We specialize in blending our organic tea with fruit flavor juice, as well making smoothies, slushies, and seasonal fruit blends. We also serve tasty finger food, organic salad, and organic food dishes.

2.2 Mission and Vision Statement

Mission Statement: Creating a vibrant cafe that provides reflection, improvement and inspiration

to our communities.

Vision Statement: Being able to get people together and enjoying each other’s company.

2.3 Product Description

We specialize in blending our organic tea with fruit flavor juice, as well making smoothies, slushies, and seasonal fruit blends. We also serve tasty finger food, organic salad, and organic food dishes.

2.4 SWOTT Analysis

Strengths

· Locally source of raw material

· High quality food

· We stand out as a unique alternative to fast food

· Younger Japanese likes Western taste

Weakness

· Startup funds will come from loans and investors

· We haven’t established ourselves as a reputable Fast Food chain

· Small budget for advertising

Opportunities

· Improvements with new technologies

· Healthy Food choices

· New restaurant locations

· More food choices

Threats

· Changing customers towards unhealthy food

· Campaign against fast food chains

· Intense competition from competitors (McDonalds and Dunkin Donuts)

· Consumer taste may vary from other countries

Trends

· Bottled Tea

· Home Deliveries

2.5 Host Country Japan

Japan is the largest consumers of tea and coffee in the world. Alarmed with growing trend of people drinking bottled tea, local farmers are struggling to sell their products. Organic Fusion Teahouse and Coffee have taken on a mission to save the industry in Shizuoka as farm closures continue to rise amid an aging population and growing public apathy about preserving the region’s ancient tea culture. Our focus is to encourage people to truly appreciate the depth of tea, so that they will be interested in buying high quality tea and at the same time they can enjoy each other’s company while drinking tea/coffee and eating healthy food as well.

For bottled drinks, businesses seek cheap, low-quality tea leaves, squeezing out farms and processing plants that produce higher-end product.

2.6 Target Market Characterization

In Japan, with growing Western population, young and adult Japanese craving for western style of Fast food. Organic Fusion Teahouse and Café will bring not just fast-food but healthy foods that caters everybody including vegetarians. Millennials in Japan will definitely enjoy this new western style but at the same time with a traditional taste of Japan.

2.7 Market Potential

The key first step for any business is to find out whether it is worth putting the time and resources into a market like Japan.

There are three ways which may help:

· Do desk based research can be done with some dedicated and expert search online.

· Speak to Japanese buyers at international trade.

· Get an initial market assessment from experts.

In Japan revenue in the Coffee segment amounts to $39 M in 2019 and expected to grow annually by 2.5%. In Japan, tea boasts a larger amount 85 liters per person and year. With this numbers we can see that tea and coffee is definitely are in demand and revenues are going up each year.

2.8 Trade Barriers to Entry

In Japan, while tariffs are generally low, Japan does have some non-tariff barriers that may impact commercial activity by possibly impeding or delaying the importation of foreign products into Japan.

US companies may still encounter non-tariff barriers in the following areas:

· Licensing powers in the hands of industry associations with limited membership, strong market influence, and the ability to control information and operate without oversight

· Cross stock holding and interconnection of business interests among Japanese companies that disadvantage suppliers outside the traditional business group

· The Cultural importance of personal relationships in Japan and the reluctance to break or modify business relationship.

2.9 Competitor Landscape / Analysis

Starbucks

· 23,000 chain stores globally.

· Market share is 29.8%

· High Brand Recognition.

Dunkin Donuts

· 12,000 locations in 36 countries.

· Market share is 19.1%

· Offerings include donuts, bagels, and other baked goods.

McDonalds

· McDonald Café chain have more than 1300 operations world-wide.

As a start-up business we must remember the customers and competition. We must constantly assess how well or poorly they are doing. We must also assess what the needs of our customers are, constantly.

3.1 Marketing Objectives

Bring new and modern style of Fast-food and with traditional taste of Japan.

We are bringing new ways to enjoy drinking tea and coffee with a modern and western style of fast food with healthy choices.

· Increase our Market shares by 15% in our first full year.

With our different approach and unique style and traditional way of serving high quality drinks and people that craves for western style of food will definitely enjoy our food and services.

3.1 Marketing Objectives

Bringing new and modern style of Fast- Food and with traditional taste of Japan. We find ways for traditional Japanese and millennials Japanese enjoy drinking tea and coffee in a Western Fast-Food style with healthy choices. With our different approach and unique style of serving high quality drinks and people that craves for western style Fast-Food will definitely enjoy our food and services.

3.2 Marketing Research Hypothesis

If we locally source our raw materials, will it lower our operation costs and increase our profits?

In Japan, there are three largest producing regions for Japanese tea they are Shizuoka, Kagoshima and Mie. Although tea is grown throughout most of Japan excluding Hokkaido in the north, green tea grown in commercial quantities requires certain climatic and geographic conditions to be viable. In particular, since the tea plant has its origins in subtropical areas, it does not grow well in cold climates. In addition, the roots of tea bushes not only supply moisture and nutrients from the soil but also serve to temporarily store nutrients. For this reason, the soil used for growing tea should be well-draining, have good aeration and moisture retention properties and be so sufficient depth to allow the roots to grow.

Tea Farmers are struggling to sell their products. Alarmed by a growing trend of people drinking bottled tea. For this reason, we are are able to help Japan economy by purchasing the tea products (raw materials).

3.3 Market Research Approach

While there are many ways to perform market Search. Our business will focus on survey, and field trials.

· In person survey are one on one interviews typically conducted in high traffic locations such as shopping malls.

· Field trials Placing a new product in selected stores to test customer response under real life selling conditions.

3.4 Marketing Segmentation and Penetration Analysis

There are 19 US Military base in Japan. We are targeting 3 Major US military bases to open our business. Kadena Air Force Base, Misawa and Okinawa.

To introduce our products, we have to develop a launch communication plan. Determine who needs to hear what by when, and then use this as your roadmap for implementation. We also need to define our key messages and tailor them to each audience. Simply going through the exercise of developing key messages doesn’t do anyone any good if you don’t communicate effectively with each individual audience. And lastly, secure adequate budget. It may seem obvious, but be sure you have ample budget to gain the exposure and presence you need. Clearly, consumer brands have different requirements. There is nothing worse than launching a brand and then failing to support it.

4.0 Product Mix Strategies

In any business we need to know how to satisfy the needs of the customer. Organic Fusion are dedicated to serve outstanding organic food and drinks. Your satisfaction is our greatest motivation. Please enjoy yourself while you dine with us and share your experience with your family and friends.

4.1 Product Descriptions

We specialize in blending our organic tea with fruits flavor juice, blending traditional tea with smoothies, slushies, and seasonal fruit blends. We also serve tasty finger foods, organic salads, and organic food dishes.

4.2 Product Differentiation

Promoting new flavorful organically infused teas and healthy on the go foods for the busy customers. Providing a peaceful place for people to put their busy lives aside and provide a break of enjoyment.

4.3 Product Positioning and Branding Strategy

With Fast Paced lifestyle people are rushing and doing multiple task in a short period of time. Majority of them wants to maintain healthy lifestyle. Our company are focus

on Healthy Living and Healthy Lifestyle. Enjoy our Food and drinks with your family and friends.

5.0 Price Mix Strategies

A common strategy for beginning small businesses is creating a bargain pricing impression by pricing our product lower than our competitors. Although this may boost initial sales, and consumers might think we are promoting low price that equates to high quality instead of low-quality products. Healthy fast food is on a high demand since it is an excellent replacement for the growing health concerns that are offered at tradition fast food restaurants, popular option of convenient healthier diets is a growing trend globally. The introduction of a healthy concept into fast food chains is a potentially powerful strategy to market toward a health concuss customer looking for that hole in the market. Consumers trends find price premiums for organic products acceptable and even appropriate. A medium price strategy marketing a healthier consumer could be superior to the standard low-price strategy of entering the market. It seems from our research that this consumer segment seeks the very best organic food products across the board, believing they can only get the desired high quality if they also pay a high price. Research shows these select consumer are willing to pay that price, creating an opportunity to create a marketable trend of being trend and fashionable that comes alone with this consumer segment.

5.1 Pricing Strategy

Consumers view the price not just as the cost of the product but as a quality cue of the product combined with the experience and atmosphere of the Teahouse, will drive the price levels. Appropriate organic products price levels are created by atmosphere organization rather than the true cost of the product, leaving it to organic food producers and retailers to fit the pricing strategy to their general strategy goal. Medium price plans were most common for organic food category (Culliney, 2014). If consumers find a price premium for organic products acceptable, even appropriate, up to a certain point, a medium price strategy could be superior to a low-price strategy to avoid the miss interruption of an inferior product and service.

5.2 Suggested Selling Price Point

Enormous amount of data is required to track, small changes in pricing or ingredients can have a huge effect on restaurant food cost (Content, 2015), calculating gross profit can be very difficult exercise without the right tools. Cost-plus pricing strategy will stabilize the influx of cost instability over market change and seasonal patterns. Calculating selling price per unit based on markup and overhead cost demands will allow cyclical smoothing of product cost over time. New pricing strategy and selling points will be review quarterly for the first two year, till supply chains and enough data on demand trends is acquired to allow for better forecasting and cyclical trends analysis can be done. Committed to standardizing the price levels in the organization will build better relationships with our customer base increasing the probability of repeat customers.

5.3 Profit Margin and Markup Strategy

Setting the correct price on the products and service of the Organic Fusion Teahouse is based on key factors based on the organizations business model. While the standard cost of materials tends to be a small value of the overall organization cost. The profit margin of the organization is high, with the average cost of making a cup of tea ranging for .25 cents to 1.50 based on the ingredients used. The standard price structure for a cup of tea in Japan from $3.00 up to $27.00 for limited high-end teas. Organic Fusion Teahouse medium structure pricing the average cost for a cup of tea will range between $4.50 to $8.00. Providing a very high profit margin in the organization price structure. The markup strategy of the Teahouse is based on service and atmosphere provide to the customer. The overhead for providing these services and experiences to the customer while vital to drive the profit margin down. While building brand recognition and customer loyalty to our organization.

6.0 Place/ Placement Mix Strategies

Placement Mix Strategies outlines how and where a company will place its product and services in an attempt to gain market share and consumer purchases. This component of the 4 P’s is sometimes referred to as the distribution strategy and may include stores, both physical and online or other means by which the company can reach customers. The direct sales method utilizes internal sales groups that reach potential customers through direct mail offerings, telemarketing, or online portals (Accion, 2020). Typically, these are used for unique products or services that have a specific target audience and require intricate customer details.

6.1 Placement Strategy

Placemat strategy plays a fundamental role in the marketing mix of the Teahouse products and service. Placement strategy is based off the demographic of Japan that provides the largest section of target customer segment. Providing our research with three primary targets for placement of the Teahouses, Tokyo, Yokohama and Kyoto. All three provide growing metropolitan areas with growing middle- and upper-class demographics. All areas show growing population in target age groups from 15-34-year old, with the financial means to support the Teahouse business models. Tokyo, Yokohama and Kyoto are all known for their trend setting abilities throughout the country. Research in these three metropolitan areas, will provide the best location for multiple sites for opening the Organic Fusion Teahouse and Café.

Product placement is a marketing concept where a product or logo is used as a prop in a movie or television show. This is a modern merchandising strategy for brands to reach their target audiences without using overt traditional advertising. Aside from an increase in profit, product placement can also boost brand recognition. Even if that doesn’t translate to immediate sales, higher brand recognition will benefit your business in the long run.

6.2 Distribution Strategy

The strategy or a plan to take the products and service available to the target customers through the supply chain is a vital setup for the Teahouse. Distribution strategy from nature to the product provide to the customer is the core concept to the service side of the organization. Designing the entire approach for availability of the special, “rare” ingredients to customer, providing a story of heritage and purity of nature to the customer. Building key strategic partnerships with suppliers, bring the history and importance to life in every cut. Marketing campaigns to target audience through the distribution chain. Using an Intensive Distribution strategy and key partnership will create pricing stability as well as maximizing outlets to maximize sales and minimizing risk in price fluctuation.

Distribution Strategy depends upon following parameters:

· Location of Suppliers

· Transportation and Logistics

· Warehousing

· Location of Target Market

· Reaching the Target Market

Distribution strategy should be optimized and updated regularly as per the market parameters through demand analysis and supply analysis so that it can keep up with the current market scenarios and does what it is intended to do. Push or pull marketing strategies would both not if a company’s distribution strategy is not in place and should be oversee and maintain on a monthly bases till structural stability allows to extend to either an annual or semi-annual review.

7.0 Promotion Mix Strategies

Promotion Mix Strategies refers to the blend of several promotional tools used by the business to create, maintain and increase the demand for goods and services. The fourth element of the 4P’s of Marketing Mix is the promotion. It focuses on creating the awareness and persuading the customers to initiate the purchase. The several tools that facilitate the promotion objective of a firm are collectively known as the Promotion Mix.

7.1 Promotion Campaign Strategy

The need to continually review and follow the market target demands and trends will provide the best outcome for the organization, while controlling and preventing risks and markets shifts. Ability to create an experience of Organic Fusion Tea’s in Japan will be centered on a three-pillar communication campaign. The first two pillars are based around the experience and service of the cafés the proud heritage of the Japanese culture centered in all of the cafes’ and teas. With the wild and free, exciting spirit of the west (United States) accenting the cafes’ and fusion fruity flavors. The third pillar is based on the delivery campaign of getting the message out to Japan. According to Statista young adults aged 18 to 34 are using up to six hours a day on online media consumption, which include social networks such as LINE (80.8%), Twitter (42.8%) and Instagram (35.8%) at the top three positions (Department, 2019). Partnering up with Japanese social marketing experts such at Tamko or Dentsu

. Building a consumer communication strategy to directly go after the core market target audience will be the most effective and efficient way to reach the young adults in Japan, to build a personal connection channel of communication.

Another element to the promotion mix is the business class of Japan, a growing market with disposable income. Building marketing partnerships with largest business firms with promotions and coupons to bring in the older side of the Teahouse target market.

7.2 Public Relations Strategy

Building a favorable image of the organization to the market by creating relations with the general public and target market. Public relations campaigns with the objective to have a support of all the people associated with it either directly or indirectly. The push of heritage and nature, bring a moment a peace and health to the target customer. The public customers comprise of the employees, suppliers, distributors, shareholders and government, simply the busy society of Japan as a whole and while our target customer does not focus on everyone. Organic Fusion Teahouse and Café should be designed and provided service for all of Japan to find some piece of home

7.3 E- Business Practices

E-commerce is a challenging industry. A saturated market and mass availability of goods to consumers means that successfully capturing customers has become less about the products you offer and more about the experience you deliver to each user.

· Using artwork and imagery to make emotional connection with new visitor on the homepage. Creative imagery is a powerful tool for making an emotional connection with your visitors. Key placed in the e-commerce funnel, will have a significant impact on the customer, building an emotional attachment to the Teahouse.

· Experiment with the best email capture methods is a powerful method for driving engagement and purchases with website visitors. Many e-commerce websites are testing out popup modals, or lightboxes, that ask a visitor to share their email address, often in exchange for an initial discount (Accion, 2020).

· Test a value proposition adjacent to the product. Answer the question if we offer free shipping for larger orders? What about money-back guarantee, or easy returns? Value propositions like these are a key way to differentiate our e-commerce experience.

· Keep shoppers focused with a prominent breadcrumb. The product page is a key middle ground where shoppers are exploring their options, but will need to focus their decision-making attention before they add their product(s) to a cart and move on to check out.

· Confirm when shoppers add a product to their cart. Capitalize on your visitor interest and help them stay focused on the task at hand by making the next step obvious. Show them confirmation after adding a product to their cart.

8.0 Communication Plan Strategy

The design of communication for Organic Fusion Teahouse and Café is based on: Being people together in a momentary moment of peaceful and joyful bliss, where the fusion of balancing powers of tea and fruitful excitement is fused together to create a place of reflection, improvement and inspiration of oneself and community come together. A place where dreams and reality meet and become one. This communication strategy goal is to bring two different point of views across in a messaging strategy to brand, as well as build a value to Organic Fusion Teahouse and Cafe.

8.1: Communicating Value Campaign

Ability to create an experience of Organic Fusion Tea’s in Japan will be centered on a three-pillar communication campaign. The first two pillars are based around the experience and service of the cafés the proud heritage of the Japanese culture centered in all of the cafes’ and teas. With the wild and free, exciting spirit of the west (United States) accenting the cafes’ and fusion fruity flavors. The third pillar is based on the delivery campaign of getting the message out to Japan. According to Statista young adults aged 18 to 34 are using up to six hours a day on online media consumption, which include social networks such as LINE (80.8%), Twitter (42.8%) and Instagram (35.8%) at the top three positions (Department, 2019). Partnering up with Japanese social marketing experts such at Tamko or Dentsu. Building a consumer communication strategy to directly go after the core market target audience will be the most effective and efficient way to reach the young adults in Japan, to build a personal connection channel of communication.

8.2: Stakeholders Communication Plan

Communication Plan for the Stakeholders structure is to visually show the communication lines within the origination, show in the illustration below is the preliminary structure of the origination’s further addition or amendments to the plan can be addressed and changed.

9.0 Overall Plan Implementation and Financial Strategies

Organic Fusion Teahouse and Café overall plan for implementation and financial strategies laid out in identifiable steps to better quantify the strategic plans of the organization and keep the organization on time as well as on budget.

9.1 Marketing Plan Implementation Timeline

Expanding Organic Fusion Teahouse to Japan can be a seamless transition. As shown below Teahouse can have an up and running café in just ten months. Some of the key factors to implementation timeline is finding a suitable location, completing all the legal requirements needed. Setting up a supply chain is another key factor in having a successfully launch. Starting reach on developing and streamline the supply chain in March will reduce risk in shortage and spoilage. In 2021 starting marketing review and updating the business model will ensure continued growth and success in Japan.

9.2 First Year Operational Budget

In the figure below are based on the selling of 120,000 cuts of tea in the first year of operations. With standard margins of food sales and sealed beverages based on normal margins of sales from cafes based in the United States. Cost of goods sold/ labor are based on regional study of cost of raw material and standard labor cost in the region.

9.3 Three-years Sales Forecast

10.0 Control and Performance Monitor Strategies

Identifying quantifiable elements to evaluate, monitor and control our marketing plan begins with establishing goals. Establishing quantifiable goals that must be met within a certain time frame gives us context within which to evaluate whether our marketing campaigns are brining enough leads or sales. Based on whether we are on track to meet our goals or not, you can adjust plan accordingly. The quantifiable elements are the number of new leads or sales brought in.

· Set quantifiable goals for your marketing plan. Common goals increasing brand awareness, store or website traffic and the number of leads or sales.

· Create new marketing campaigns or tweak existing ones to help us reach the goals we set in the marketing plan.

· Review sales records, so we have something to which to compare the following year.

· Set metrics for tracking the direct impact of each campaign on its ability to help us reach our marketing goals. Common metrics include number of click-through on an online ad, number of new sales, number of new leads or percent increase in traffic to the store.

· Analyze the results of each campaign based on our metrics. Determine whether the campaign brought in more profit than it cost to run

· Based on the number of new leads and sales each successful campaign brings in, determine how many more times we need to repeat them to meet our goals.

· Repeat the campaigns until marketing goals are met. Once current goals are met, set new goals.

Conclusion

With revenues growing in Japan, in the Coffee segment amounts to $39 M in 2019 and expected to grow annually by 2.5%. In Japan, tea boasts a larger amount 85 liters per person and year. With this numbers we can see that tea and coffee is definitely are in demand and revenues are going up each year. while tariffs are generally low, Japan does have some non-tariff barriers that may impact commercial activity by possibly impeding or delaying the importation of foreign products into Japan.

Bringing new and modern style of Fast- Food and with traditional taste of Japan. We find ways for traditional Japanese and millennials Japanese enjoy drinking tea and coffee in a Western Fast-Food style with healthy choices. With our different approach a d unique style of serving high quality drinks and people that craves for western style Fast-Food will definitely enjoy our food and services.

References Accion. (2020). Product Placement: Why It Matters and How to Get It. Retrieved from Accion: https://us.accion.org/resource/product-placement-why-it-matters-and-how-get-it/ Acutt, M. (2019). Marketing Mix - Price (Pricing Strategy). Retrieved from The Mareting Mix: https://marketingmix.co.uk/price/ Carnrite, J. (2020). Place Strategy in Marketing: Examples & Definitaion. Retrieved from Study.com: https://study.com/academy/lesson/place-strategy-in-marketing-examples-definition-quiz.html Content, S. (2015, September 15). How to Calculate Your True Food Cost Profit Margins. Retrieved from QSR Magazine: https://www.qsrmagazine.com/content/how-calculate-your-true-food-cost-profit-margins Culliney, K. (2014, 07 20). The highs and lows of organics: to stimulate repeat and cross-purchases. Retrieved from Food Navigator: https://www.foodnavigator.com/Article/2014/07/21/Organic-food-pricing-High-versus-low-to-stimulate-purchases# Department, S. R. (2019, 09 24). Most Popular social networks in Japan 2018, ranked by reach. Retrieved from statista: https://www.statista.com/statistics/258849/most-popular-social-networks-in-japan-ranked-by-reach/ E, D. (2018, June 29). Benefits of Using Margin. Retrieved from The Strategic CFO: https://strategiccfo.com/benefits-of-using-margin/ MBASkool. (2019). Distributaion Strategy. Retrieved from mba skool: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/7048-distribution-strategy.html Karjaluoto, H., Mustonen, N., & Ulkuniemi, P. (2015). The role of digital channels in industrial marketing communications. Journal of Business & Industrial Marketing, 30(6), 703-710.

PositionRequirementsWays to ManageInfluence

Power

Level

Stage of

Influence

Investors/

Stakeholders

Reviews Financial Reports

Controls organizations

mission and direction

Annual voting

11

Board of Directors

Reviews and builds Financial

Statements, Develops Core

Values of organization,

Develops organization

Direction

Phone Calls

Emails

Monthly Reports

In-person meets

111

Project Directors

Stay on time and Budget,

Develop plans for operations

Monthly meetings with

Board of Directors,

Reports with feed back

with

General Managers

122

General Managers

Budget, timeline, day to day

operations, Implements

business Strategies

Oversees Operation

In person meetings

with Sommeliers

Weekly reports to

Board

231

Tea Masters/Sommeliers

Daily task, well dressed

happy and positive

Discuss, feedback,

meetings with GM

342

Customers

Enjoys the service and theme

of the organization

Online Customer

review, paper notes

feedback box, in

person

121

Marketing Plan Implementation

FebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDec

Suitable Location

Legal Documentation

Acquistion of Location

Remodeling

Employement and Training

Starting Online Marketing

Website Luanch

Order Equipment Supplies

Advertising

Setting up Supply Chain

Ordering

Offical Launch

Marketing Review

Customizing/Altering Business

Implement New Stratagies

20202021

2021

Sales:$%

Tea Sales600,000 58%

Food Sales200,000 19%

Beverage Sales150,000 14%

Total Sales950,000 92%

Merchandise & Others25,000 2%

Total Gross Sales

Less: Comps & Discounts60,000 6%

Total Net Sales1,035,000

Cost of Sales

Tea 250,000 53%

Food120,000 26%

Beverage 70,000 15%

Total Sales Cost440,000 94%

Merchandise & Cost30,000 6%

Total cost of Sales470,000

Gross Profit565,000 55%

Operating Cost

Labor

Management87,500 22%

Hourly Staff220,507 56%

Employee Benefits87,045 22%

Total Operating Cost395,052

Expenses

Rent67,500 40%

Marketing40,000 24%

Utilities34,688 21%

Repairs & Maintenance26,156 16%

Total Expenses168,344

Net Income before Taxes1,604 0%

Organic Fusion Teahouse and Café

First Year Operational Budget

202120222023

Sales:$US$US$US

Tea Sales600,000.00$ 750,000.00$ 937,500.00$

Food Sales200,000 222,222.2 246,913.6

Beverage Sales150,000 157,894.7 166,205.0

Total Sales950,000 1,130,117.0 1,350,618.6

Merchandise & Others25,000 25,000 25,000

Total Gross Sales

Less: Comps & Discounts60,000 60,000 60,000

Total Net Sales1,035,000 1,215,117 1,435,619

Cost of Sales

Tea 250,000 296,875.00 352,539.06

Food120,000 126,666.67 133,703.70

Beverage 70,000 73,888.89 77,993.83

Total Sales Cost440,000 497,431 564,237

Merchandise & Cost30,000 31,250 32,552

Total cost of Sales470,000 528,681 596,789

Gross Profit565,000 686,436 838,830

Operating Cost

Labor

Management87,500 91,145.83 94,943.58

Hourly Staff220,507 229,694.79 270,229.17

Employee Benefits87,045 90,671.88 106,672.79

Total Operating Cost395,052 411,513 471,846

Expenses

Rent67,500 67,500 67,500

Marketing40,000 40,000 40,000

Utilities34,688 36,513.68 38,435.46

Repairs & Maintenance26,156 26,156 26,156

Total Expenses168,344 170,170 172,091

Net Income before Taxes1,604.00$ 104,754.22$ 194,892.90$

Organic Fusion Teahouse and Cafe

Sales Forecast for the First Three Years