24A – Venture Concept No. 1

24A – Venture Concept No. 1

ENT3003

Chris Ward

Opportunity:

·      What are the forces or changes in the environment creating this opportunity?

The recent opening of a new turnpike exit in the town of Minneola has attracted traffic heading to Orlando.  This traffic once passed by several coffee shops on the way to another exit.  There is now a demand for a local coffee shop in the area of the new Minneola exit. 

The town of Minneola has also recently approved a development with 4000 units.  This will also increase traffic in the area and with the traffic will come an even higher demand for coffee.

·      How is this Market defined geographically and demographically?

This opportunity is defined strictly geographically.  People from all demographics have this need.  The need is fulfilled by the location of this coffee shop.

·      How are customers currently satisfying this need? How loyal are they to what they use now?

Most of this need is filled likely with a homemade coffee, travelling out of their way to another coffee shop or it goes unfulfilled.  Given the opportunity to stop a local coffee shop that is on their way, I believe most would be unloyal to their current provider.

·      How big is this opportunity?

There is currently a large need for this opportunity and with the expansion of this area the need will only grow.

·      How long will the “window of opportunity” be open?

This opportunity will be open until another coffee shop opens in the area.  When that happens though the need will not disappear.  With a competitor in the area the opportunity will have to adapt and that may be a good thing as far as the customers are concerned.

Innovation:

            This opportunity does not require too much innovation.  The need is simple and so is the solution.  Opening a local coffee shop near the new turnpike exit in Minneola will provide products similar to Starbucks.  They may be some innovation in the quality of the product though.  Provided a higher quality product at a similar price may also attract customers from Starbucks.  In order to increase the quality, there will need to be coordination with a coffee roaster to ensure we are receiving the best coffee we can afford. As far as making money, we will charge a similar price, maybe even a bit lower, than Starbucks.  They have proven the people will pay more for a better product than Dunkin Donuts or some other low scale coffee shop.

Venture Concept:

·      What are the reasons to think customers would switch to this new product? How hard will it be to get them to switch?

Customers will switch to this product because of the convenient location and high quality.  Currently there is little option for coffee other than homemade so getting people to switch to my product will be relatively easy.

·      Who are the competitors? What are their possible weaknesses or vulnerabilities?

The obvious competition is Starbuck and Dunkin Donuts.  They both have major weakness based on their location.  Neither are convenient to the new turnpike exit and require customers to go out of their way to compete with my location. Another competitor may be at home brewing machines, but their weakness is their inconsistency and often lower quality.

·      What role does package, price points, distribution, customer support, customer experience, or location play in your concept?

All of these will play a big part in my business, especially, as I mentioned several times, location.  The location is the key to success here.  As mentioned earlier our price point will be similar to Starbucks which is proven.  We will also provide a positive customer experience with the best Wi-Fi and plenty of seating.

·      How would you organize a business to support ongoing production of your new product, service, or process? How many employees and what are their roles?

This business will be organized similar to Starbucks or any other fast food type restaurant. There will be at least a dozen employees there to serve coffee from 4am to 11pm seven days a week.  Orlando is a 24/7 city and employees travel to and from work at all hours of the day.  If there appears to be a large enough demand for our off hours, I would consider a 24/7 operation.

Three Minor Elements:

           

            My “Secret Sauce” is the location, it is the only thing that currently sets me apart from the competition.  Once the store is open though, I expect competition to move into the area.  When that happens, the quality of our product and atmosphere will keep my customers coming and still attract new ones.

            The next step is finding the exact location, designing the store, permitting and investor search.  This process could take some time, possibly even up to a year or more.

            Five years after opening, I would like to be looking for a second or third location.  Hopefully at that point the business is staffed to take care of itself allowing me to focus on expansion and possible franchising opportunities.