Introduction
The idea of the business is coffee shop. The main aim of this section is to provide information about industry, market, and primary research analysis. Regarding industry, this will be done through providing information about economy, legal, political, social, cultural, demographic, technological, and natural environment. Regarding marketing strategy, this will be done through providing information about our product, price, promotion, place, and people. Regarding primary research analysis, this will be done through analyzing results of distributed survey.
The industry
Economy
There are many advantages in the economy of Qatar for our business. According to Doha Stock Market (2009), these benefits include:
Qatar is a stable and pro-business country with clear vision and direct focus.
Qatar has the highest GDP per capita income in the world estimated at US $68, 467 in 2008.
Qatar’s nominal GDP growth continues to reach record levels, averaging 25% over the past five years.
Qatar has a strong trade surplus over the years with revenues mainly driven from oil and gas exports.
Qatar is a country of creative energy, a leader in Liquefied Natural Gas (LNG) sector and one of the desirable investment destinations of the world.
All these indicators mean that the economy in Qatar is strong. These indictors are for the benefit of our business.
Legal/ Political Environment:
According Qatar Embassy, (2009), Qatar is a state with political stability. It provides greater freedom of expression, an independent judiciary, and establishes a partially-elected consultative council which will have the power to question ministers and approve the budget. The State of Qatar came first among the Arab states in the prevalence of law and political stability. At the same time, Qatar legal environment is accessible, suitably (but not overly) regulated, and, in many commercial respects, is familiar. These indictors are for the benefit of our business.
Social-Cultural
Population values and behaviors are affected by Islamic culture. Islamic and Arabic traditions and norms affect the Qatari culture. This is because Qatar is a part of The Arab World. The majority of population is Muslims. Regarding population, about 20% are native Qatari while 80% of the population is foreign guest workers. The majority of migrant workers come from South Asia, the Philippines and other Arab countries. The total population in Qatar is about 1. 5 million. This social environment is good for our business because there are no high social restrictions. Still, the small size of population doesn’t allow the opportunity for market growth. Therefore, some social trends are helpful, while others are hurt our business.
Demographic
In May 2009, there were about 1. 5 million people in Qatar, three quarters of whom were male. According to Iran Tour, indicators of demography in Qatar are as following:
Population growth rate: 2. 5%
Age structure : 0-14 years: 23. 4% , 15-64 years: 73% , 65 years and over: 3. 7%
Birth rate: 15. 56 births/1, 000 population
Death rate: 4. 72 deaths/1, 000 population
Religions: Muslim 95%
Languages: Arabic (official), English commonly used as a second language
Technological:
Qatar is a state with high level of technological development. Most of Qatar’s citizens have access to a phone and have Internet service accounts. Businesses in Qatar have been modernizing their IT systems during the last few years. Businesses can easily adopt up-to-date technologies to provide services in Qatar. This environment is helpful for our business to use technology to provide and deliver services. It is easy to use short messages or internet to make advertising. Still, the technology infrastructure is not good enough in rural areas. Therefore, the current technology will help our business to achieve its goals.
Natural Environment
According to Qatar Embassy, (2009), the landscape of Qatar is generally flat to wavy with some prominent hills. According to its geographical location and climate, Qatar is classified as a hot subtropical desert. The country has no rivers or lakes, and besides the rainfall received, the primary source of fresh water is the ground water. In general, there are no volcanoes, floods, or natural disasters take place in Qatar. So, there is nothing in the natural environment that the company should be aware of.
Survey Analysis
The survey was distributed to (50) persons. Results of the analysis follow.
Characteristics of the sample
– Age: Less than 15 (12%) 15- 34 (38%) 35-54 (44%) 55-older (6%)
– Nationality: Qatari (36%) non Qatari (64%)
It is clear that most respondents at the age of 15-54 as 82% of respondents are within this range. At the same time, 64% of respondents are non-Qatari. This means that we should target 15-54 years, non Qatari target group.
Attitudes towards coffee shops
– Do you regularly go to coffee shops: Yes (24%) No (76%)
– Would you like to go to coffee shop: Yes (88%) No (12%)
– Do you think that new coffee shops are needed: Yes (88%) No (12%)
– Do you think there is enough demand on coffee shops: Yes (88%) No (12%)
It is clear that there will be enough demand on a new coffee shop. This is because 88% of respondents believe that there is enough demand on coffee shops, and there will be enough demand on a new coffee shop. At the same time, 88% of respondents think that new coffee shops are needed.
Satisfaction with current coffee shops services
– The prices: Unsatisfactory (68%) Somewhat (24%) Satisfactory (8%)
– The menu: Unsatisfactory (38%) Somewhat (28%) Satisfactory (34%)
– The location: Unsatisfactory (28%) Somewhat (24%) Satisfactory (48%)
– The privacy: Unsatisfactory (78%) Somewhat (20%) Satisfactory (2%)
It is clear that respondents are not satisfied with privacy and prices. But they are somewhat satisfied with menu and location. Therefore, in our business, we should concentrate in privacy and prices.
Pricing
– Do you think that the prices of current coffee shops are fair: Yes (14%) No (86%)
– How much would you like to pay for coffee shop at each time:
Less than QR 20 (34%) 20-50 (44%) More than QR 50 (22%)
It is clear that customers feel that the prices of current coffee shops are not fair. They are willing to pay less than QR 50 for coffee shop at each time.
Place
– Where the new coffee shop should take place:
Al Sadd (38%) Al Dhauil (24%) Al Ghrafah (18%) Al Rayan (18%) Other locations (2%)
– Do you think that the new coffee shop should take place at a shopping center: Yes (34%) No (66%)
– Do you think there is a need for exclusively ladies coffee shop: Yes (100%) No (0%)
It is clear that customer prefer Al Sadd and Al Dafnah as place for the new coffee shop. They do not prefer shopping center as a place for the new coffee shop. All of them believe that there is a need for exclusively ladies coffee shop.
Promotion
What type of advertising method do you think is 6 the most suitable for coffee shop:
Radio (8%) TV (22%) Newspapers (34%) Internet (12%) Broachers and posters (30%) Others (4%)
It is clear that respondents prefer newspapers, posters, and TV as advertising media.
Other issues
What type of décor and design do you want to see in the coffee shop?
Traditional décor (24%) Modern décor (60%) Semi-French decor (16%)
Which type of activity do you prefer at coffee shop?
Drinking (44%) Internet (24%) Eating (20%) Playing (12%)
What kind of activity you would like to be considered in this coffee shop:
Snooker (22%) Ping Pong (10%) Billiards (18%) Foosball (10%) Backgammon (10%) Chess (10%) Darts (20%)
Which hot and cold beverages do you prefer? Tea (20%) Hot chocolate (32%)
Soft drinks (24%) Bottled water (20%) Iced tea (4%)
It is clear that respondents prefer modern décor. They do prefer drinking and using internet at the same time. They do prefer juice and soft drinks. They do not like ice tea at all.
Marketing Strategy
In order to develop marketing strategy, it is important to understand the five marketing elements.
Product:
Our business is a coffee shop. It is a service business that provides all services related to a coffee shop. The coffee shop serves hot, soft, and fresh drinks. It also provides an area for internet where customers can use the internet to chat, search, and email. There will be area for playing billiards, darts, ping pong, and snooker. This means that the area of the coffee shop will be divided into main three sections: drinking area, internet area, and playing area. Customers can not only sit and drink, they can read newspapers, magazines, and eat snacks. At drinking area, there will be a hall with tables and chairs. At this area customers can order coffee, tea, juice, snacks, etc. Customers can also move to internet area where they can find well-developed computers with high internet speed. They can easily use the internet to chat, search, and email. At the internet area, there will be a hall with enough computers connected to internet. There will be also couple of printers to serve customers if they want to print papers. Customers can also play many games. At the playing area there will be enough tables for billiards, ping pong, foosball, and snooker. Also, we will offer darts, chess, and backgammon. There will be area for relaxation and waiting that include comfortable couches and nice background music.
Tangible attributes of our business includes the location, the décor, drinks, and playing machines. Intangible attributes included customer service, relaxation, and entertainment. Our product is at initial (introduction) stage of product life cycle. The competitive advantage of our products is that it is provided only for ladies and by ladies. We will position our product as it is the first exclusively coffee shop owned and operated by women.
People:
Coffee House is a coffee shop that serves only ladies. It will be the first coffee shop in Qatar that provides services only for ladies. Therefore, the atmosphere of the coffee shop will be with high degree of privacy and security. The final decision regarding customers will be made after analysis of the survey. All staff of the coffee shop will be ladies. Regarding our staff, qualified ladies will be recruited and trained to provide high quality services to customers. About (10) employees will be recruited to work as customer service, cashier, and busboy. We will provide high quality services through our skillful employees. Staff qualifications include (1) should have good command in Arabic and English. (2) Should have training course in customer service. (3) Should have good experience in customer service.
Price:
Coffee House will adopt the price of market strategy. This is because Coffee House is a new business and will utilize price to create competitive advantage. Coffee House will care with quality rather than price. Followings are examples of some of our products and prices:
Item
Price (QR)
Soft drinks (Pepsi, Coca Cola, etc.)
5
Cup of tea
5
Cup of coffee
7
Small plate of snakcs
10
Promotion:
Coffee House will do comprehensive advertising at the initial stage. Two main methods of advertising will be used: newspapers and posters. We will not use personal selling. We may provide sales promotion in Ramadan and summer. The poster will include photo of our coffee shop with list of our services and products. The ads will include our address, products and services, and our competitive advantage.
Place:
Coffee House will take place in Doha. There are very few coffee shops in Doha. Suitable locations those close to other stores that serve women will be selected. The location will be attractive, close to the sea, and equipped with all services. Our location will be in Al Sadd Street. This is because this area is provided with good infrastructure. All services are available. At the same time, it is well known area in Qatar. The site of the coffee shop is easy to access. It is provided by all services.
Conclusion
This is the third section of feasibility study for Coffee House. In brief Coffee House is a service business that provides all services related to coffee shop. The coffee shop serves hot, soft, and fresh drinks. It also provides area for internet where customers can use internet to make chatting, searching, and emailing. There will be area for playing games. Coffee House will provide services only to ladies. The coffee shop will also be operated and managed by ladies. The competitive advantage of Coffee House includes concentration on female customers only through providing services to ladies and by ladies, and providing comprehensive services: drinks, snacks, internet, and playing area.
