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Coffee Planet (Sam's Business)

Coffee Planet (Sam's Business)

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Published by Samir Kanhere
my plan's to set up business in Mumbai
my plan's to set up business in Mumbai

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Published by: Samir Kanhere on Jan 13, 2011
Copyright:Attribution Non-commercial

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01/13/2011

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COFFEE PLANET (SAM)Analyse the potential and viability of the success of newly opened store CoffeePlanet (Sam) Mumbai
Analysis of Coffee Planet
Target MarketPrimary Target Market:
The Primary target market for Coffee Planet in Mumbai isthe young generation both female and male students from the ages of 18-34. Thismarket is well educated and comes from middle class to upper middle class population. Since the location is close to the Mumbai University customers can haveeasy access to stores
Secondary Target Market
: The secondary target markets are the, multinationaloffices; local people where highly paid consumers work therefore special marketingstrategies will be used to gain their brand loyalty to Coffee Planet.
3. Analysis of the potential location
The coffee shop is located in a highly sophisticated place whereby MumbaiUniversity, multinational companies and small scale industries are based. The CoffeePlanet will be located in Mumbai Santa Cruz (east). The buildings around the area arevery contemporary and developed. The roads are in good condition to maintain easyaccess to our location. (A map of the location can be seen in Appendix
.)
IV. Planned Operation of the Proposed BusinessA. Proposed Organization
Coffee Planet will be a privately owned business with horizontal organization.The store will have a manager and three employees that will rotate shifts dependinghow busy the store is during the day. Coffee Planet believes in an open and friendlywork environment and all employees of Coffee Planet refer to each other as BaristasThe store will open on 1
st
November with the legal paper work, licensing, andgovernment approval should be completed in May of this current year 
B. Proposed Product/service1. The Product
Coffee Planet will sell a variety of coffee and tea beverages along with differenttypes of pastries, confections, and baked goods, coffee-related accessories andequipment. The coffee shops provide customers with a pleasant place to come andrelax, study, work, or have business meetings. Both locations will provided wirelessInternet access in the stores so that customers can bring their laptop and continue their work if they wish.
 
Coffee Planet will customize the menu to fit the tastes of the local people. A newmenu will be originated after several months of research and development. There aresome common tastes preferences of the Indians known already. For example, Indianstend to take more cream in their coffee. Also, the skim milk option will not be offeredin India because dieting is not a commonly accepted practice in the country. Indianswill feel that they are being cheated out of their money if skim milk is put in their  beverages. Indians also like spices in their tea and coffee, especially ginger and black clove. One of India’s favourite fruit flavours in mango, and in fact the mango isIndia’s national fruit. The coffee beans and tea will be bought from local Indianfarmers in order to support the local agricultural economy, save money intransportation and tariffs, and gain tax benefits. Inspections of the crops will be takeninto consideration to ensure the high quality and in maintaining standards. Theinventory policy will be put into practise to keep the stores stocked but not over stocked to ensure freshness of products. 
2. Transportation of goods
The raw materials (coffee beans and tea) will be transported to Mumbai making use of India’s vast and efficient railway system, and supply trucks.
C. Proposed Strategies1. Pricing
Competitive pricing is vital for the business to grow and succeed but definitely costsneed to be taken into consideration. Because of the costs involved in start up,transportation and imported goods, the price will be set to make the coffee affordableto the target audience. The payment will be done in rupees so the price of coffeewould be about 10 to 15 rupees. The prices for all good will vary from each and every product with the use of pricing policy, Coffee Planet prices will be 20% lower thanthose of the other Barista Company. This use of penetration pricing will ease the business to slide into the market place. Though it is possible to get a cup of coffee for 15 merely 5 rupees at small stalls on the street, the success of the Barista Coffeecompany in India show that the customers are willing to pay for better quality,service, and environment
2. Promotion
Types of available media for marketing purposes which include everything fromnewspaper advertising to television ads. Since this is a test venture and there is onlyone location of store being opened, the promotion for the store has to be focused onour target markets. Billboard advertising on the roads leading to the store locations isa good way to increase awareness of the locations. Direct mail advertising with promotional coupons will be used to reach the homes of the target market. Sales brochures offering delivery services will be sent to the local call centres and bigcompanies. A large number of people have access to internet therefore a proper website will be developed to communicate the products and other social networking
 
sites Face book and Orkut will also be used to keep the customer updated with thelatest product and services
STAKEHOLDERS 
As I am the proprietor of my own business by nature a sole trader Generally, mystakeholders includes
Customers
Suppliers
Community
Employees
Bank and Brokers
Suppliers:
The key stakeholders especially the suppliers are crucial for my business asoperation depends on their supply of products.These are many suppliers in the market available. However, my potential suppliersare Kings Food for food such as muffins, cakes, Paninis, sandwiches and for coffee beans directly from the local suppliers such as farmers. The suppliers which I havementioned have agreed to my proposal
FINANCIAL FORECASTING AND BUDGETING:
 
Profit and loss A/c for the year ending March
 
2010ParticularsAmt inINR Average Percentage of SalesNet Sales 15,00,000100%Cost of Goods Sold 12,00,00069.00%Gross Profit 6,00,00034.00%Selling Expenses35,0004%General Administration Expenses80,0005%Depreciation ( Premises ) 8% SLM1,30,0008.00%Operating Profit 3,20,00021%Interest @ 11.25 on loan 1,22,8009%Earnings before Tax2,12,00014%Tax (10% + 1 surcharge+ 2 cess on tax )% as to IT Actof India, First Slab)19,0001.65%Profit After Tax ( Forecasted) 2,01,00011.25%
 

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