FEASIBILITY STUDY Background of case The NULearning Resource Centre (LRC) • 5th floor of the Resource Centre • 10-15-minute walking distance – canteen • rules prohibiting food and beverages in the library space • Hindrance factors: lack of convenience, accessibility and a unique selling point (USP) Problem Statement Despite spaces allocated in the LRC for self-study and group discussions, most of these spaces are often overlooked by students and have undiscovered potential. • either poorly managed or have dull tasteless settings Students often make visits to cafes outside of campus- creates additional costs for students who are trying to live on a budget. • sensitive to the ambience and quality of their learning environments in augmenting their efficiency of studying. Entrepreneuria l Opportunity Imperial College UK. • a library coffee bar and themed co-working spaces Library cafes: International School of Beijing. • incorporate foodservice elements into a modern library setting, which creates a more immersive experience for students looking for a place to engage in researching or networking activities. Co-working spaces with designated themes: • Individual study pods or specially segregated areas • to discuss assignments and hold meetings, and at the same time an on-site campus attraction for students. Komune Co-working, Bangsar. Market segmentation and targeting Geographic and demographic Behavioral and psychographic Library Users Student and staff of Nilai University Mass market Coffee Enthusiasts Students from surrounding universities, Residents of Nilai Town (Visitors) Undifferentiated marketing Niche marketing Richiamo, Taylors University Library STRENGTHS On-campus Affordable prices Moderated environment Conducive studying environment Privacy for users and student exclusivity OPPORTUNITIES Unfilled niche in campus Limited threat of new entrants Rarity of co-working spaces in Nilai area Engagement with Hospitality students Trends of minimalistic modern architecture Emerging urban contemporary lifestyle Readily available business model WEAKNESSES Slightly distant from student activity route Paid service THREATS Low consumer switching cost High bargaining power by buyers Limited spending power of students High bargaining power by suppliers Changing governance and policies by University management SWOT ANALYSIS PESTE Analysis Politico-legal • the rules and policies stipulated by the University management - influences and limitations on the operating hours, prices, market availability, etc. • statutory bodies for food safety and sanitation compliance with measures, such as hazard analysis critical control points (HACCP) and COVID-19 pandemic standard operating procedures Economic • purchasing power of the university - width of the potential is dependent on the consumer spending power and purchasing habits of students and staff • the general Malaysian economy- influences the readiness of youths to enter university and the allowance PESTE Analysis Sociocultural • popularity in urban contemporary lifestyles - lifestyles of younger generations and city dwellers who are sensitive to the ambience and experience • Social media-conscious individuals also seek opportunities for social media exposure. • emergence of modern design-inspired campuses around the world - demand for better architecture and design Technological • cashless payments - automated billing via student accounts in universities • minimal resistance- information technology (IT) literate Environmental • setting and ambience, rather than the natural environment - popularity of minimalism in coffee houses can results savings. • location of the library and its distance from the main route of the student activity - marketability Competitive Analysis – Strength-Weakness analysis Proposed venture Library Coffee Bar and Co-working Space Competitors Location Product attributes Price point Coffee houses and beverage shops On-campus, library Midscale caffeinated and noncaffeinated beverages, co-working space, refreshments Midscale Nilai University staff and students Target market Strengths Weakenesses On-campus Affordable prices Moderated environment Conducive studying environment Privacy for users and student exclusivity Similarity with Starbucks and Borders model Slightly distant from student activity routes Paid service Canteen Beverage Stall Starbucks, Mesa Mall On-campus, canteen 5 minute drive from campus Budget caffeinated and noncaffeinated beverages Premium quality affeinated and noncaffeinated beverages Public use space for students Co-working space, refreshments Budget Premium Free Nilai University staff and students Mesa Mall visitors and residents Nilai University students Midscale Freelance and selfemployed individuals in Nilai area Co-working spaces Student Activity Room / Kotak Kita – Coworking Space and Cube Shop Common Room 10 minute drive from On-campus campus On-campus Highly affordable by students Open-air environment Close to student traffic Well-known among exisiting markets Strong brand loyalty High quality and wide assortment of beverages Conducive environment for studying Inconsistent product quality Questionable hygiene Inconducive environment for studying Off-campus Unaffordable for most university students Lack of privacy On-campus Close proximity to student acitivity routes Free-of-cost Available 24 hours a day High student traffic Unmoderated environment Poor architecture and design Affordable prices Conducive environment tailored for working and studying Set meals and menus provided Off-campus Lack of media exposure Lack of exclusive privacy Competitive Analysis - Porter’s Five Forces Porter’s Five Forces Industry rivalry of existing competitors Threat of new entrants Threat of substitute Bargaining power of buyers Barganing power of suppliers Intensity Strategies – Marketing Mix 7P Strategies Tactics Offer ample menu options ranging caffeinated and non-caffeinated beverage Rotate seasonal items or special menus Product Offer simple and easy-to-eat treats in menu Ambience and amenities of the working space Complimentary free-flow simple refreshments Campus advertising Social media and intranet advertising Promotion Price Co-branding packages with the library Collaborative workshops and events with Hospitality and Tourism students Midscale price positioning Price-bundling with co-working space Delivery services and takeaway Place Food delivery services for external customers Workshops and events venue for university activities On-campus delivery and pickup. Complimentary refreshments for co-working space users. Co-working space and coffee bar as workshop avenues. Simple but ample menu with seasonal rotations. Strategies – Marketing Mix (cont.) 7P Strategies Tactics Adapt service model of Starbucks Offer sophisticated brewing methods Process Automated payment and check-in process Semi-self-service system Hire competent and skilled staff People Hire part-time staff from School of Hospitality and Tourism Integrate design elements into branding Physical Evidence Investing in capital expenditure that matches color scheme and theme Create an environment resembling modern cafés and bookstore Auto-billing and cashless payment systems. Rustic and minimal design. Sophisticated brewing experience. Hospitality students as parttime workers. Q&A End of presentation