Executive Summary
Start-ups are one of the opportunities for entrepreneurs to present the most valuable services to consumers and develop a unique business model. The study of this kind of initiative provides an opportunity to gain awareness of the main aspects that must be included in the business to achieve success. Within the framework of this executive summary, attention will be paid to such a company as Bizzy Coffee, which, in a reasonably short period, has gained significant popularity as a cold brew coffee start-up. The analysis of this start-up according to generally accepted business standards will help to identify the factors that have effectively influenced its activities in the market.
Problem
At the moment, coffee is one of the most common and frequently consumed beverages in the country. Research data show “in 2021/2022, nearly 176 million 60 kilogram bags of coffee were consumed worldwide, a slight increase from almost 167 million bags in the previous year” (“Coffee consumption worldwide,” 2023, para. 1). These data confirm that there is a significant demand for this drink worldwide and that consumers may be interested in new offers on the market. Therefore, Bizzy Coffee, a company founded in Minneapolis, Minnesota, in 2015, solves this problem through the provision of a “variety of cold brew products from concentrates to shots” (“Bizzy coffee profile,” n.d., para. 1). Meeting the needs and requirements of customers becomes one of the main things for this startup.
Solution
Bizzy Coffee Company solves a problem that is highlighted in the market by providing a wide variety of beverages to consumers. This happens through the use of the value proposition concept, which implies providing customers with the value of the product it offers. The company’s website indicates that it provides options such as brew it yourself or ready-to-drink. In addition, the business provides an opportunity to complete a specialized quiz that will help people choose options that are more catered to the customer.
Business Model
The main advantage of Bizzy Coffee is that it has a reasonably wide audience. The target customers of this brand are individuals from various backgrounds and professions, which contributes to expanding opportunities in the market. Thus, the company makes money by meeting the requirements of individuals regarding preferences in coffee drinks. Their ready-to-drink options may be convenient for people who have limited time for breaks during work or other activities, so they tend to use these offers.
Underlying Magic
Two concepts of pricing and target market strategy make the company unique. Regarding the first aspect, it provides its products at a relatively moderate price in comparison with the market. For a 48 oz bottle of high-quality cold brew coffee, the company charges $7.99, which is low compared to other competitors. Another important concept that gives a feature to start-up is the target market strategy. Due to the fact that its demand directly depends on consumers, it places strong emphasis on customers.
Marketing and Sales Strategy
The go-to-market strategy of Bizzy Coffee start-up is based on focusing on world-class brand strategy and achieving the primary mission of the company. Special attention is paid to “strategic marketing partnerships in support of core marketing KPIs (revenue and awareness) including influencers, press, and CPG brand partnerships” (“Director of brand marketing,” n.d., para. 10). Thus, the business focuses on promoting its activities based on research on such vital aspects as consumer, customer, category, and market landscape factors.
Competition
Bizzy Coffee has a fairly large number of competitors in the market, among which companies of global importance can be distinguished. Cold Brew Coffee market report summarizes the top key players. Among them are Nestle S.A., HighBrewCoffee, The Coca-Cola Company, Starbucks, and California Farms (Fortune Business Insight, 2022). Their main advantage is a more substantial presence in the market and demand among customers. At the same time, Bizzy Coffee can offer more unique and customizable options. In order to fight competitors in these conditions, it is critically important to be able to pivot, which implies adapting some core aspects of the company’s activities for the most productive response to consumer requirements.
Projections
The central financial projection for the company for the next three to five years is to expand into the global market. It is stated that “Bizzy is raising about $2.5 million through equity investments, alongside $4.2 million in debt,” which allows a significant amount of money to be directed toward achieving the goal. (Niepow, 2021, para.). Differentiators as the main metric to achieve this projection can contribute to offering a product different from competitors. The company also addresses the concept of core revenue drivers, such as products and services that can enable it to achieve even greater success.
Team
At the moment, the start-up has a fairly small team, which, however, does not prevent it from successfully running a business. Bizzy Coffee includes about 30 people in total, and each employee contributes to the development of the company. They are unique due to the introduction of their own experience and outlook on the situation in the world and the cold brew coffee market, which gives the business an essential insight into strategy formation.
Status and Timeline
At the moment, the company has a prominent place in the online market through gaining popularity on a marketplace such as Amazon. The major and immediate milestones of the company are to obtain financing through bootstrapping, that is, without the help of external help or capital. Moreover, it has gained significant demand from customers and has excellent prospects for further development.
References
Bizzy coffee profile. (n.d.). Startup Savant. Web.
Coffee consumption worldwide from 2012/13 to 2021/22 with a forecast to 2022/23. (2023). Statista. Web.
Director of brand marketing. (n.d.). Bizzy Coffee. Web.
Fortune Business Insight. (2022). Cold brew coffee market size, share & industry analysis, by type (arabica, liberica, robusta), by distribution channel (company owned outlets, supermarkets/hypermarkets, online retail stores, others) and regional forecast, 2023-2030. Fortune Business Insight. Web.
Niepow, D. (2021). Bizzy coffee eyes national expansion. TCB. Web.