Preface

This business plan has been written for 1001Beans, a company that we want to start in order to cooperate in the field of the Ethiopian coffee market in a sustainable way. Rabo Bank is willing to give us a loan but we first need to write a business plan.The authors of this business plan are third year students of INHOLLAND University, in Rotterdam, the Netherlands. Respectively; Shahnaz Abdoella, Sherin Abdoelrahman, Youssef Chouaibi, Sharon Morais.

Table Of Content 1. The Company

1.1Personal Motives

2. The Marketing Plan

2.1 The Company 2.2 Mission and Vision 2.3 The Market
2.3.1 The European coffee market 2.3.2 Target groups

2.4 The Company and Product in the European Coffee Market 2.5 The Marketing Mix
2.5.1 Product 2.5.2 Price 2.5.3 Place 2.5.4 Promotion 2.5.5 Personnel

2.6 Objectives
2.6.1 Quantity 2.6.2 Quality

3. Sustainability 4.The Financial Plan 5. Appendix

Introduction
This business plan is about the establishing of a new coffee business, namely 1001 beans. 1001 beans want to be seen as a company that cherishes sustainability. The whole production process, supply chain and end process will be carried out in a sustainable way. The following pages show the plans, strategies, and intentions of the company owners. Before these strategies are carried out a country was chosen to market the products. 1001 beans is a coffee company that plans to sell its products in the Netherlands and then extend to other EU countries. The focus of sales will be concentrated in specialist supermarkets, as will be seen in the coming chapters. The main parts include the marketing plan, and the financial plan. An analysis of the Dutch environment and economic situation offers insight to the chances for 1001 beans. The marketing plan explains the strategy that will be implemented in the Netherlands; the methods to be used such as promotion and pricing. The financial plan illustrates how much capital is needed and how it will be allocated.

Executive Summary

1.The Company
Name: 1001Beans Address: Posthumalaan 90 Zip Code: 3072 AG Rotterdam City: Rotterdam Telephone: 010-8448382 E-mail adress: 1001Beans@live.com Nationality: Dutch 1.1 Personal Motives Today, people attach more value to environmentally friendly products, whether it's food or clothing, that are produced in a sustainable way. When we came with the idea to start a coffee producing company it was immediately clear that we intend to address this in a responsible manner. Our coffee will be grown according to organic farming standards and techniques without the use of artificial fertilizers, pesticides. We choose to produce avoiding synthetic chemicals because organic agriculture stimulates the natural progress of developing disease and pest control. Seeing that much organic coffee is shade grown, large amounts of forest will be preserved. This preservation has many additional benefits: minimizing soil erosion, preserving habitat, especially for birds; further, the leaves from the trees and bird droppings naturally fertilize the soil. Birds also control pests by eating insects that eat the leaves of coffee plants. There are several different coffee species, two main species that are refined today are the Coffea Arabica known as Arabica Coffee, which accounts for 75-80 percent of the worlds production. Coffea Canephora known as Robusta Coffee, accounts for about 20 percent and differs from the Arabica in terms of taste. The first coffee was discovered in Ethiopia by the Arabians therefore the name Arabica. Today, Ethiopia is an important coffee producing country and the main exporter of coffee beans in Africa. Ethiopian coffees are said to be unique in flavor and one of the best in the world. About 50% of the coffee production in Ethiopia is done at an altitude of 1500 m. Coffee beans grown

in Harrar thank their special soft, herby and a slightly sour taste to the altitude and the aggregation of the soil. Therefore we are going to start an organic coffee production company in Ethiopia, Harrar named 1001 Beans. In order to focus on our quality we will only produce the following four products;

Regular coffee Mint flavored coffee Macadamia flavored coffee Hazelnut flavored coffee

The coffee will not be roasted until just before it gets shipped. In this way we ensure to deliver the coffee as fresh as possible for our consumers. The normal packages will contain 250gr and a promotion box with four flavors of 50gr each. The consumer price range is 5,90 for the natural flavor to 6,80 for the flavored coffee. The promotion box which we will sell when our product is being launched and during holidays will be sold for the special price of 5,-. At first you might say that these prices are high but our coffee is worth it because of the following reasons; Our coffee is organic and therefore better for our health and the environment. The packages are made from recycled paper and cardboard. Other coffee brands might say that they offer Arabica coffee from south America or Asia but it is only Arabica coffee when it is grown in Ethiopia so we offer the real and original Arabica coffee. Flavored and regular coffee at e.g. Starbucks, Mockamore, EZprezzo etc have price ranges from 3,- to 6,50 for just one cup of coffee.

1.The Marketing Plan

Marketing is a process which identifies the consumers' wants and needs, focusing on a product or service to fulfil those wants, attempting to push the consumers toward the products or services offered. Marketing is fundamental to every businesss growth. It includes advertising, distribution and selling. The marketing plan helps to create value for customers. In order to achieve this, the following things must be done: Understanding the market. Learn about the customers wants and needs. Is customer focused: have a customer-driven approach, ability to identify market changes and have a product innovative approach. Build a good marketing mix (4Ps). 1001Beanss goal is to create brand awareness in the European market starting with the Netherlands. Since there are allot of competitors we are mostly focussing on the newness of our product and our environmental friendly way of producing it. By constantly checking the new developments on how the Dutch consumers react on the new brand, 1001Beans will hope to have a clear vision on the market and consumers, so strategies can be adapted. Objectives

It is necessary that 1001Beans has clear objectives, because 1001Beans is a new company and thus entering the coffee market. The objectives: Create a solid base in the Dutch market so 1001Beans can eventually obtain brand awareness. Build a good relationship with organic supermarkets like Eko Plaza and Gimsel, but also with normal supermarkets who offer a wide variety of organic products. Growth: Increase the size of operation and broaden the geographic base.

1.1The Company Locatie Werknemers Environmental friendly machinery SHARON and SHERIN 2.2 Mission and Vision
Mission Statement 1001Beanss mission is to add value to coffee beans by being an entrepreneurial co-operative, by utilizing its expertise throughout the entire coffee production chain, by putting the customer first and by caring about people and environment. 1001Beans strives at adding value to the coffee products supplied by its member farmers; but also in countless innovative, organic and healthconscious coffee products which consumers now regard as an important part of their diet. Vision 1001Beans wants to grow as a company and become meaningful to its employees, commercial clients and consumers. In doing so, we will reflect our core values: being close to customers, natural, organic, healthy and sustainable.

2.3 The Market

DILLON

2.3.1 The Dutch coffee market DILLON 2.3.2 Target groups DILLON

2.4 The Company and Product in the European Coffee Market

DILLON The research for the external environment is based on the PEST analysis and Five forces. The results of the analysis can be found in the appendix. In the scheme below you are able to see the Strength and Weaknesses of 1001Beans and the Opportunities and Threats of Europe.

2.5 The Marketing Mix

2.5.1 Product As we are entering the coffee market as a new company we want to differentiate ourselves from the other coffee brands. Our company will offer high quality organic coffee. To start off our company 1001 Beans will offer one pot portion bags along with half-pound and one pound bags because we do not want to scare our customers off and we slowly want to gain their trust knowing that people hardly change their regular coffee tastes. Freshness is our number one concern and that is why we will roast our coffee weekly dependent on our consumers demand. Our product is really safe and reliable, any residues from the decaffeination process will be burned off in the roasting process. Next to the fact that our coffee is organic we will offer four different kind of flavors : natural , hazelnut, mint and macadamia just to diversify our offers to attract a bigger part of our target group which is basically everybody except children. Our coffee bags will be packaged in an airtight, heat-sealed, one-way air valve, polypropylene bag which will either be produced from recycled plastic or be recyclable. The bags will be hand stamped. The labeling on the package will contain information about the natural flavors, origin of beans and the type of roast. To assure the people that our product is 100% organic we offer them the possibility of tracing their coffee back to their origin through the traceable coffee system. 2.5.2 Price Us entering the coffee market can work in our advantage as in our disadvantage. We lack a name recognition but in contrast to that we will offer high quality products and deliver superior service. It is not enough to produce a good coffee. It is utmost important to pay close attention to the needs of the retailers and to the consumer. To As we are offering 4 kind of organic coffee flavors. We will sell at a price of 6.90 per half a pound of the natural flavor and the three other flavors will be

sold at a price of 7.80. In periods of time we will offer discounts on our coffee for example: If you purchase 2 bags you will get the second one for the half of the price, a 25 % discount. As for our price strategy we choose to use the economic, skimming, penetration . Price strategy ????? During our promotional period we will make use of the price bundle strategy in supermarkets: combine several products in the same package for a certain price.

2.5.3 Place 1001 Beans will produce their coffee beans in Ethiopia. Ethiopia's finest coffee is grown in the shade, which keeps the coffee cherries moist until they are ready to be picked. Without native trees, which are often cut down. Aid agency Oxfam International is sponsoring the Werka project, which helps coffee growers in this region of Ethiopia use sustainable methods. By utilizing eco-friendly coffee processing, the cooperatives will not only increase their income as a result of selling washed coffee but also address environmental pollution related to the conventional coffee processing method. In the conventional method the coffee pulp and mucilage are removed from the beans and get discharged into nearby streams and ponds where they decompose and deteriorate the water quality of ponds and streams that the local community uses for household consumption. The eco-friendly method of processing reduces the amount of organic waste from the washing process and cuts water usage by 98.5 percent As for the place to sell our coffee we decided on the Benelux starting from The Netherlands in big cities like Rotterdam , Amsterdam, Utrecht and later on in Luxemburg, Antwerp and Brussels. Not only do we target three similar countries but at the same time these three countries have their own little differences, which means an extra target group and more chance to attract more costumers outside the Benelux, considering the fact that The Netherlands is very multi-cultural what will help us reach a more wider range of people . We will provide coffee to the discerning coffee drinkers. We will be environmentally and socially conscious which will appeal to that same

market. Our main target group to deliver to will be the large supermarkets, gift shops, schools and offices with an average of 30 people. 2.5.4 Promotion Since the whole organic coffee idea has slowly been introduced in The Benelux by the bigger brands such as Douwe Egberts for example and as noticed is really catching on. We know consumers are really loyal to their local coffee stand or to their regular coffee brand in the supermarket ,but in order to change that we are going to represent ourselves at every roasting and cupping seminar and every fair like the huishoudbeurs. Since our company is new we will pay full attention to our marketing. The first six months we will create more brand awareness through promoting at supermarkets, offices and schools. Promotion in the supermarkets will be offering the customers a free promotional item if they buy a number of our products : for example if they purchase 2 bags you will get 1 mug for free, next to that we will offer a variation package mixed with all four flavors so that the consumers get a taste of our coffee and slowly get used to it. Special emphasis will be placed on capturing corporate gift business. by giving the employees free gift packages in their Christmas package and holiday business at the gift shops by offering one-pot portions, ground and whole bean, which we can sell in customized gift baskets. In the specialty shops we will offer promotional items such as matching mugs, press pots and many more coffee accessories. If there ever occurs a case that a consumer is dissatisfied with our product we will offer a money back guarantee which means that they can return the unused portion and of course be refunded.

2.5.5 Personnel 1001 beans will have 5 employees. We all have a degree in International Business management studies We all have the the required technical and marketing skills to get this company up and running. We will split the work duties as it demands. Dillon Daniels will primarily be responsible for the production end and Sharon Morais for the service and sales end. Each will fillin where necessary. Sherin Abdoelrahman will take care of the Marketing department , Shahnaz Abdoella will be in charge of the finances and Youssef

Chouaibi will be in charge of the logistic activities. When it comes time to hire new employees we feel confident we can train for any position. We continue to further our skills and knowledge by Attending roasting and cupping seminars.

2.6 Objectives
First of all is the main objective of our coffee production plant to achieve a 100% sustainable production process1. In order to achieve this goal 1001 BEANS will sell coffee with the Max Havelaar Label and Coffee Kids. This is the way to show commitment to poverty in Ethiopia and that the coffee farmers receive a fair price for their beans. As well as helping coffee farming families improve the quality of their; living standards investing in basic education organizing community projects in collaboration with local government events for making the locals aware of sustainability promoting a green environment

2.6.1 Quantity

1 Case blackboard

2.6.2 Quality

Organic gourmet coffees quality is higher and has a nicer taste. Organic coffee is the main production focus for 1001 BEANS. Organic gourmet coffee is produced without the use of fertilizers, pesticides or herbicides. This makes organic coffee healthier with a more natural taste. 1001 BEANS is not making use of the chemically and this has a direct effect on the environment and birds near to the coffee farms. 2

1.Supply Chain
To get a better understanding of the logistical levels in which 1001 BEANS will operate we made a supply chain in which all levels from the ordering phase and production in Ethiopia till the distribution to the international supermarkets, coffee shops and offices. Every step in this supply chain will be fully explained. Figure 1: Supply chain Ordering process: Agents of 1001 BEANS (the group members) that operate internationally, mainly in the BENELUX countries will search and bring in orders from supermarkets, coffee shops or even offices. These orders will then be send to the manufacturer. Calculating needed materials: In this phase 1001 BEANS calculates the beans (natural, hazelnut, macadamia, mint) needed to produce the organic coffee ordered by the ( Dutch) supermarkets. 1001 BEANS receives these
2 http://www.coffeeinspector.com/organic-coffee.html

orders from the agents that operate for 1001 BEANS, in which they mainly try to upgrade the client list of 1001 BEANS. Procurement of raw materials: After calculating the needed materials, these (mainly beans) materials are being purchased from local coffee farmers in Ethiopia that are acknowledged by their sustainable coffee producing ways. Purchasing of raw materials happens in great quantity, this to benefit from the economies of scale. Quality check: When the materials/ ingredients arrive from the suppliers they undergo a check. In this check the quantity and quality is checked. After approving the materials they will be send to parts of the plant for production or storage. Production: In this phase the beans will be produced into Organic Garmic Coffee in Ethiopia. Divided into 4 different groups of Organic Coffee natural hazelnut macadamia mint. Quality check: The finished products will be checked on quality and quantity. Packaging: When the products are of top quality that 1001 BEANS always aiming for, the coffee gets packed and stored ready for shipping to Europe in bags of half a pound. The coffee will be divided into groups of destination and marked. Transportation: In this phase the coffee will be transported by DHL to their warehouse in The Netherlands. The products will then be transported directly to the clients. The transportation will be arranged by a freight forwarder (DHL). Distribution: The sales agents receive the coffee from 1001 BEANS and will start distributing these to clients (the Supermarkets, coffee shops and offices) that placed the orders in the beginning.

4. Sustainability
1001 Beans will strive to be a company who participates in environmentallyfriendly activities to ensure that all processes, products, and manufacturing activities adequately address current environmental concerns while maintaining a profit. We want to be as environmental conscious as possible because we believe that we spend a long time ignoring the fact that we are destroying our natural habitat with pollution, drying out our natural energy sources and now it is time to turn the ties and start restoring the damage that we have done. Global Development Globe Scan Incorporated did a research on companies and the effect that being sustainable might have. The survey was conducted with 1200 sustainability experts and these are some key findings that resulted out of this survey. Almost nine in ten (88%) experts believe that improving sustainability performance leads to a stronger brand; only two percent of experts disagree. Just over half (55%) of experts say that integrating sustainability into a companys brand image results in improved sustainability performance, while two in ten (19%) disagree. Corporate experts are more convinced that

integrating sustainability into a companys brand image improves its sustainability performance. Four in ten experts (43%) find that sustainable brand claims by companies are mostly green washing. Experts from the corporate sectors are much less likely to agree that sustainable brand claims are green washing than are experts from NGOs or institutions. Almost three-quarters of experts (73%) believe that there will be a great deal more sustainable brand initiatives from companies in the coming year. 1001 Beans plans to be sustainable in three ways: Organizational, Environmental and Consumer. Organizational On the organizational level we will practice sustainability by Conservative use of energy. e.g. sustainable energy lamps. Sun panels that use solar energy. This will help us to save on extra costs. Reinforce the building we use with energy saving materials so that in the winter energy will be trapped in the building. Seeks to be independent of non-renewable resources, using renewable resources when possible. In addition to seeking renewable energy resources, they will promote education programs, provide medical care for workers, and provide decent wages and working conditions for their employees.

Environmental On the environmental level we practice sustainability by We will use an afterburner on the roaster to reduce the amount of air pollutants normally associated with the roasting process. Our packaging will be recyclable or made from recycled materials. We will produce organic coffee so we have to buy organic coffee beans. Organic coffee beans are coffee beans that have been produced without the use of pesticides or herbicides. This is both beneficial to both the producer and the consumer. However, nonorganic coffee is typically higher yielding because it is not usually shade grown. The definition of certified organic coffee can be extended to include an emphasis on recycling, composting, soil health, and protection of the environment.

We will buy coffee beans from sustainable farms. A sustainable farm gives back as much to the land and people as it receives. Sustainable farming minimizes pollution, takes steps to care for the environment, and cares for its employees. Sustainable farming implements practices to minimize water consumption and to clean the water used. A sustainable farm will replace the natural nutrients of the land by spreading fertilizers and organic matter (composted coffee pulp) under the coffee trees and between the coffee trees. This type of fertilization has been found to increase yields over time and to produce a more uniform and natural mineral content in the ground. Sustainable farms will also engage in practices such as shade growing, bio diversification, organic farming, and sustainable agriculture. These are important aspects to sustainability that are both cost effective and socially responsible. That is why organic fair trade coffee and organic shade grown coffee often goes hand in hand. We will become a member of the Coffee kids Association who helps coffeefarming families improve their quality of life. We want to have a working environment that promotes a feeling of pride and enthusiasm. Consumer We will try where possible to create awareness amongst consumers about the consequences of not living environmentally friendly.

http://www.globescan.com/news_archives/tss10_brand/

4.The Financial Plan

SHAHNAZ en YOUSSEF

http://webshop.degroenehof.nl/22-koffie-aroma-soorten/259/hazelnootkoffie.html

http://www.dekoffiethuiswinkel.nl/prijswinnaar-bendinelli-gourmet-arabicakoffiebonen-250gr-p-2639.html