EXECUTIVE SUMMARY

Boutique Café will be a small entrepreneurial cafe located in CMart, Sungai Petani.
Boutique Cafe will be offered with a variety of coffee, smoothies, sodas, soft drinks, and
tea of all sorts will be available. Boutique Café is a unique concept providing a cafe
experience coupled with a cozy and nice cafe with comfortable and relaxed atmosphere.
The cafe is the alternative to fast food/commercial shops and offers a much calmer,
civilized gourmet experience. There are no televisions in the cafe, the cafe is reminiscent
of times gone by – yet is cutting edge technologically with WIFI and state of the art
machines. The cafe is a medium size cafe for around 50 people maximum inside which
does not require much staff to operate there.

Boutique Café will have an extensive target market. It will focus all types of customers
such as youngsters, mature, professionals etc. My cafe will offer a variety of coffee
choices to the customers. Smoothies, sodas, soft drinks, and tea of all sorts will be
available. The cafe will also serves deli-styles breakfast sandwiches with the freshest
ingredients, muffins, croissants, cinnamon rolls, coffee cake, and other tasty treats.
Boutique Café will be open from 6 A.M. to 9 P.M. daily.

Product quality is critical in the food industry. For that reason, Boutique Café will ensure
product quality through the use of fresh ingredients, sale of only fresh items, and a focus
on cleanliness. Innovations are also a goal of the company. One way which this will be
accomplished is through creating new products each month and offering them for a limited
time. This will allow the business to test new products and determine which ones are
preferred by consumers. Product quality and innovations will be a major focus of the
business.

Though Boutique Café will open as a single, small cafe, over time the business will strive
to expand. Once the cafe proves to be a success, the business will open more stores in
areas nearby the original. As the success of the overall business increases, Boutique Café
will slowly expand to a wider range of locations. A company website will allow consumers
to view everything offered by the cafe, as well as grant the option for customers to place
orders. These expansions will allow Boutique Café to be accessed by a larger quantity of
consumers.
Prices at Boutique Café will strive to be competitive with the industry. Costs and expenses
will be calculated to provide the business with a minimum price option, preventing any
losses. The company will also research the prices of comparable products of other similar
businesses in the area to know the price requirements to remain competitive. As long as
the industry prices are high enough to cover the calculated costs, Boutique Café will
choose prices similar to its competitors.

When Boutique Café first opens, it will host a grand opening to gain consumer awareness.
The event will offer free samples of a variety of products offered by the business to
achieve consumer interest and desire, which in turn will increase consumer purchases.

Community involvement will also greatly promote Boutique Café as the company shows its
participation and intent to contribute to the community. Such involvement will also increase
consumer awareness as community members are frequently exposed to the business
name.

These plans for Boutique Café are intended to help the business grow more successful
and profitable. However, through the use of financial analysis, customer surveys, and
market share comparisons, the company will be capable of determining which of these
strategies truly are productive to help the business thrive. Evaluating the effectiveness of
different methods of marketing, Boutique Café will learn what is needed for the company to
be an absolute success.

BACKGROUND

Boutique Café will be a medium size cafe located in CMart, Sungai Petani, Kedah. The
business will be entrepreneurial with enough employees to help the business run
smoothly. Boutique Café will employ General Manager(s) who will take charge of other
employees and the overall operation of the business. We will rely on its POS (Point of
Sale) system to generate daily accounting and cost activity reports. General Manager will
supply these to an outside bookkeeper for preparation of annual income taxes.

Boutique Cafe mission is to provide a friendly, convenient environment where the

customers can receive quality food, drinks and service at a reasonably price. It will focus
on all types of customers such as youngsters, mature, professionals etc.
The product of focus for this business will offer a variety of coffee choices to the
customers. Smoothies, sodas, soft drinks, and tea of all sorts will be available. The cafe
will also serves deli-styles breakfast sandwiches with the freshest ingredients, muffins,
croissants, cinnamon rolls, coffee cake, and other tasty treats. To rise above competitors,
Boutique Café will offer numerous options to satisfy common health and diet needs of
consumers. By offering options which meet these requests, more consumers will feel
welcome to this cafe because their needs will be recognized and satisfied.

OBJECTIVE, GOAL AND STRATEGIES

The menu will change frequently, the service will be good, and the food will be the best.
The restrooms will be clean.

There are three influential key success factors and activities that will contribute to the
accomplishment of Boutique Cafe's goals. These factors include: our ability to select the
best location(s), keeping variable and overhead expenses as low as possible, and building
high market visibility through brand building and advertising.

With respect to the business transaction, Boutique Cafe will deliberately choose to be
distinctive and unique in its customer experience. Boutique Café will present an image of
wholesome, healthy food in an attractive and clean atmosphere. The sign will be large
enough to be read from the street, and will be designed to promote the cafe image.
Comment cards will be at each table and will be collected at the register. Suggestions for
new or improved meals will be sought, as well as feedback on service and the dining
experience.

ORGANIZATIONAL STRUCTURE

Boutique Café will employ General Manager(s) who will take charge of other employees
and the overall operation of the business.

Boutique Café will rely on its POS (Point of Sale) system to generate daily accounting and
cost activity reports. General Manager will supply these to an outside bookkeeper for
preparation of annual income taxes.
SWOT ANALYSIS

 STRENGTH
 Reasonable prices, wide variety of coffee and drinks, a lot of home made treats
 Ensure quality of product
 Focus on customers treats and preferences
 Convenient and friendly environment
 WEAKNESS
 Existing competitors
 New in the business
 Turn down in the economy
 Start-up costs
 No reputation
 OPPORTUNITIES
 Differentiation by pricing
 Diverse target market
 Introduce online/telephone order system
 New machines are introduce in the market
 International look
 THREATS
 Starbucks, McDonalds and other local café
 Government rules and regulation

MARKETING - THE INDUSTRY

The cafe will contain a comfortable lounge area open to customers, allowing them to stop
in and sit down. Boutique Café is a unique concept providing a cafe experience coupled
with a cozy and nice cafe with comfortable and relaxed atmosphere and offers a much
calmer, civilized gourmet experience. There are no televisions in the cafe, the cafe is
reminiscent of times gone by – yet is cutting edge technologically with WIFI and state of
the art machines. The location of Boutique Café will be another advantage of the
company. This cafe will be the first, and therefore the only shop in the town of Sungai
Petani that offer this kind of service. The business will work out of a store front at the heart
of the mall, making it extremely visible for all consumers. Being centrally located in CMart,
Boutique Café will be easily accessible by all members of the area.
TARGET MARKET

As a cafe, Boutique Café will have a broad target market. People of all ages, children
through adults, enjoy delicious treats, and therefore will be incorporated in the target
market. This product is not a high priced item and, as a result, will be available to nearly all
people regardless of varying incomes.

Whether consumers are looking for breakfast, lunch, or intricately designed treats, this
cafe will be able to meet their needs. For consumers who are looking to come in and sit
down, Boutique Café will be preferred by customers who enjoy a calm, modern,
comfortable atmosphere

Business Owners & Workers - During the week, most of them work early in the morning,
so the cafe will open at 6 A.M. This group includes managers, factory employees, retail
clerks, professionals, tradesmen, laborers, and other food service workers. This group will
form the base clientele, as many will be repeat customers. A number of tradesmen have
promised to patronize the café every day. Fast, accurate service will be provided, as these
customers often have limited time to eat.

Local Residents & Workers - Small ads will be placed weekly in the dining section of the
local newspaper. Specials will be promoted with an A-frame sign and, during slow periods,
coupons and “2-for-1” deals will be offered. Menus will be distributed to local businesses
and faxing in orders will be encouraged. Take-out will be attractively boxed and given
equal priority to sit-down services.

Students – Community College and University is nearby. Students there are likely to visit
Boutique Café on the weekends, on very nice days and during their holiday periods. Flyers
will be distributed on campus during those times, offering the students a percentage
discount on certain meals and during certain times.

INDUSTRY INDICATORS

Although Boutique Café will be the only shop to offer this kind of service, other existing
businesses like McDonalds, Starbucks and other local cafes will offer competition. But
major is college cafes and restaurants in nearby vicinity.
Despite the similar businesses in the area, Boutique Café will contain a few beneficial
strengths to make it more desirable than its competitors. Boutique Café will be capable of
meeting the needs of consumers requesting specific modifications to satisfy particular
health and diet needs, including free high speed WIFI. The central location of Boutique
Café will be an additional valuable aspect of the company, allowing it to be accessible to a
large market. Finally, the convenient and the comfortable lounge for customers to relax in
as they indulge in their delicious delights will be major advantages of Boutique Café.

Another weakness of this cafe will possibly include its competition with businesses which
have been open for many years. Locals often choose to support the local businesses. With
these habits created, it may be difficult for Boutique Café to receive the business of locals
who already have a favorite or preferred cafe.

The growth of Boutique Café may be limited based on the location of the business. Coffee
is the drink of choice for many people across the world. Every morning millions of people
rely on their morning fix to get going for the day. Growth rate of the market is around 20%
annually and is expected to remain in double digits over the next decade. However, the
growing trend is very promising for the success of Boutique Café.

MARKETING STRATEGY

In order to ensure product quality, this cafe will emphasize cleanliness and sanitation, use
quality ingredients, and will always be sure all ingredients are freshly fresh and properly
baked. Innovations are also an important factor in the growth and success of the company.
This cafe will start by offering a variety of options, from simple flavors like chocolate and
vanilla, to more decadent ones such as red velvet and chocolate cake as well as different
kinds of decoration styles for all types of occasions.

However, to grow as a business, it is important for Boutique Café to innovate their product.
To do so, the cafe will continually work to develop and test new recipes for new flavors of
cookies and cakes. Doing so will allow the company to have more variety to offer and
possibly attract new customers. By creating new product flavors, Boutique Café will not
only grow as a business, but will also increase sales.

PROMOTION:
 Flyers – will be distributed on cars with business name and logo
 20% offer on any drink of any sizes if customers bring the flyers during first week of
opening
 Advertisement
 Two coupon for 35% offer for any purchase over RM100 in local newspaper
 Social media (Facebook, Twitter, Instagram)
 Store front display
 College and University Campus
 Local Buses and Cabs
 Discount coupon on frequent visit
 Local FM radio advertisements

PRODUCT:
Key product of Boutique Café will be lunch and coffee with baked goods.Our baked goods
will offer great taste and superior nutrition. Product quality is essential for the success of
the business. We will be serving :

 Expresso: Americano, Breve, Cappuccino, Latte, Mocha, Machiato.

 Coffees: Daily Brew (Regular or Decaf), Organic French Toast, World Tour Blend.
 Other drinks: Hot Chocolate, Kid’s Hot Cocoa, Fountain drinks, Juice, White and
Chocolate Milk, Hot Tea, Chai Tea Latte
 Iced Drinks: Coffee, Jumpin’ Java, Iced.
 Bakeries: Breakfast Sandwiches, Assorted Brownies and cookies, Bagel, Muffins,
Cinnammon Rolls, Croissants, Pie and Cake by the slices

PRICE:
The pricing would be as follows:

PLACE
Product will be dispended from our one and only shop. We will provide home delivery.

BUDGET ESTIMATION

START-UP COST

ASSETS AMOUNT (RM)

Rent (per month) 2,000.00
Improvement (Impression: Calm, Soft 5,000.00
mood, Light music, Painting)
Furniture (Sofa, Bar counter, Tables, 2,000.00
Chairs)
Equipment (Coffee machine, Coffee mill, 8,000.00
Air conditioning, Stereo, Cash Registers,
Water treatment)
Supplies (Coffee snacks, Coffee cup, 500.00
Napkin, Forks and Knives, etc)
Utilities (Water, Electricity, Telephone, 1,500.00
Internet)
Advertising 500.00
TOTAL 19,500.00

SALARY

STAFFS AMOUNT (RM)

Manager (x1) 4,000.00
Accountant (x1) 2,500.00
Cashier ( x2), Waiter (x2), Waitress (x2), 3,600.00
Coffee Maker (x2) (RM30 per hour)
TOTAL 10,100.00

OPERATING COSTS

EXPENSES AMOUNT (RM)

Utilities - Water, Electricty, Telephone 2,000.00
(Monthly)
Rent (Monthly) 2,000.00
Supplies Costs (Coffee, Snacks, Cups, 5,000.00
Napkins - Monthly)
Salary ( Monthly) 10,100.00
Advertising (Monthly) 500.00
Insurance (Monthly) 600.00
TOTAL 20,200.00

SALES

GOODS PRICE
Coffee (x125 cups) RM5 to RM12 (Depends on the flavor)
Breakfast (x50) RM3 to RM6 (Depends on the item)
Cake (x30) RM5 to RM10 (Depends on the serving)
Cookies (x30) RM4 to RM8 (Depends on the serving)

Day Revenue = RM6*125 + RM3*50 + RM5*30 + RM4*30 = RM1,170.00

Monthly Revenue = RM1,170*30 = RM35,100.00

LOAN

Boutique Cafe will get a loan from CIMB BANK with 5 years term and interest rate of
12.50% per annum. So the monthly repayment will be as below:

RM30,000.00 * 12.50% * 5years = RM18,750.00

RM30,000.00 + RM18750.00 = RM48,750.00 / 60 = RM812.50 MONTHLY

TAXES

Boutique Cafe will also be needed to pay 6% of GST to Government

RM35,100.00 * 6% = RM2,106.00

PROFIT

So the actual profit Boutique Cafe will received :

Total Revenue – Total Costs – Taxes – Loan = Profit

RM35,100.00 – RM20,200.00 – RM2,106.00 – RM812.50 = RM11,981.50

FINANCIAL ANALYSIS

Considering a conservatif approach, we expect the Break-even Point to be reach early in

the Quarter II of operations

IMPLEMENTATION AND CONTROL

 The purpose of Boutique Café marketing plan is to serve as a guide for the business.
 The following area will be monitoring to gauge performance:
 Revenue: monthly and annually
 Expenses : monthly and annually
 Customer satisfaction

PHYSICAL TRAINING
 Smile
 Manners
 Good posture for long time
 Balance
 Talking skill
 Operation of the machine

SKILL TRAINING

 Familiar with our product

 Coffee culture
 Proper reaction
 Inner decoration
 Never judge a person by his/her appearance
 Cooperation and leadership