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CHAPTER 1

Marketing Aspect

This chapter presents the marketing aspect of the proposed business

consisting of product/service description, target market, demand and supply

analysis, competitor analysis, pricing structure, projected sales, marketing

program/strategies and marketing/selling expenses.

Product/Service Description

The Taste of Indian Coffee is a place especially made for Indian students

of Davao Medical School Foundation, since there is no coffee shop yet that

welcomed them or open for them. And it is also fit for them to get away from

urban life, to get free from stress. This coffee shop library offers you various

books especially medical books and other kinds of books that anyone can

choose whatever they want which is highly age accorded. It is a comfy spot that

is located along Dr. A. Gahol Avenue, in between Y.L. Finance Building and

Pluma Veterinary Clinic. Everyone, especially Indians are all welcome here

especially its nearby school, DMSF’s students which population of Indian

students is more or less 200. And also it will serve as a good venue to study or

even hang out with your friends. The Taste of Indian Coffee offers you the best-

tasting variety of Indian coffee ever which came from high quality ingredients with

best services and allowing you to have something to read or browse the internet

if you really need it because we are Wi-Fi connected while enjoying our
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specialties. Surely, Indians will drop their time here drinking our coffee while

indulging every moment in their stay here in the Taste of Indian Coffee.

Target Market

The target market of the Taste of Indian Coffee consists of area coverage

of the business and to what market does it marketing activities focuses.

Definitely, it will focus on its located area where there is a certain target market

were prospected of the business.

Area Coverage

The Taste of Indian Coffee will be located along Dr. A. Gahol Avenue, J.P.

Laurel, Bajada, Davao City, in between Y.L. Finance Building and Pluma

Veterinary Clinic.

Consumer/Customer

The Taste of Indian Coffee will center or focus its marketing activities in

reaching specifically the Davao Medical School Foundation’s (DMSF) Indian

students.

Demand and Supply Analysis

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Table 1. Demand Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Product
(2017) (2018) (2019) (2020) (2021)
Indian Brewed Coffee 72,000 75,600 79,200 82,800 86,400
Indian Caffe Latte 54,000 57,600 61,200 64,800 68,400
Indian Mocha 32,400 36,000 39,600 43,200 46,800
Indian Chocolate 64,800 68,400 72,000 75,600 79,200
Indian Caramel 42,480 46,080 49,680 53,280 56,880
Indian Vanilla 45,360 48,960 52,560 56,160 59,760
Indian Cappuccino 46,800 50,400 54,000 57,600 61,200
Total 357,840 383,040 408,240 433,440 458,640

Table 2. Supply Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Product
(2017) (2018) (2019) (2020) (2021)
Indian Brewed Coffee 12,600 14,400 16,200 18,000 19,800
Indian Caffe Latte 9,000 10,800 12,600 14,400 16,200
Indian Mocha 5,400 7,200 9,000 10,800 12,600
Indian Chocolate 7,200 9,000 10,800 12,600 14,400
Indian Caramel 9,720 11,520 13,320 15,120 16,920
Indian Vanilla 6,480 8,280 10,080 11,880 13,680
Indian Cappuccino 11,520 13,320 15,120 16,920 18,720
Total 61,920 74,520 87,120 99,720 112,320

Existing supply is based on the indirect competitors since there is no

existing coffee shop.

Present Supplier/Competition
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Our business will compete indirectly with the Blugre, Fagioli Coffee

Club of Landco Corp. Center and Starbucks, The Coffee Bean, Bo's

Coffee, Krispy Kreme, J.CO, Annabelle's at Abreeza Mall. Such

businesses are presently supplying a portion of our target market.

Potential customers may include percentage of those who are presently

supplied by our indirect competitors who are fond with books. Putting up

the Taste of Indian Coffee, the customers will find it more affordable prices

which mostly students can afford.

Table 3. Competitor Analysis

Business
Competitors Location Services Products
Hours

Blugre Ground 10:00 AM  Good Facilities  Brewed

floor, to 2:00 AM
PDCP  Good ambiance  Frappe
Landco
 Free Wi-Fi  Caramel
Corp.
Center J.P  Vanilla
Laurel
Ave.,  Cappuccino
Bajada,
 Mocha
Davao
City  Latte

 Cakes

 Chocolate

 Meal

Fagioli Landco 10:00 AM  Good  Brewed

Coffee Club Corp. to 2:00 AM Food/Ambiance/M
Center J.P usic  Frappe
Laurel
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Ave.,  Magazines  Caramel

Bajada,
Davao  Free Wi-Fi  Vanilla
City
 Cappuccino

 Mocha

 Latte

 Cakes

 Chocolate

 Meal

 Sandwiches

Starbucks Ground 8:00 AM to  Good Food/Drinks  Brewed

floor, 12:00 MN
Abreeza  Free Wi-Fi  Frappe
Mall,
 Caramel
Davao
City  Tea

 Bread

 Vanilla

 Cappuccino

 Mocha

 Latte

 Cakes

 Chocolate

The Coffee Ground 10:00 AM  Good Drinks  Tea

Bean floor, to 9:00 PM
Abreeza  Brewed
Mall,
 Frappe
Davao
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City  Caramel

 Vanilla

 Cappuccino

 Mocha

 Latte

 Cakes

 Chocolate

Bo's Coffee 2nd floor, 10:00 AM  Good Drinks  Brewed

Abreeza to 9:00 PM
Mall,  Free Wi-Fi  Frappe
Davao
 Caramel
City
 Vanilla

 Cappuccino

 Mocha

 Latte

 Cakes

 Chocolate

Krispy Abreeza 10:00 AM  Accurate Service  Donuts

Kreme Mall, to 9:00 PM
Davao  Free Wi-Fi  Vanilla
City
 Frappe

 Brewed

 Caramel

 Cappuccino

 Mocha
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 Latte

 Chocolate

J. CO Abreeza 10:00 AM  Free Wi-Fi  Frappe

Mall, to 9:00 PM
Davao  Accurate Service  Chocolate
City
 Donuts

 Brewed

 Caramel

 Vanilla

 Cappuccino

 Mocha

 Latte

Annabelle's Abreeza 10:00 AM  Free Wi-Fi  Meal

Mall, to 9:00 PM
Davao  Good Food  Cakes
City
 Brewed

 Frappe

 Caramel

 Vanilla

 Cappuccino

 Mocha

 Latte

 Chocolate

Table 4. Price Analysis (Pricing Structure)

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Product YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Indian Brewed Coffee 75 80 85 75 65

Indian Caffe Latte 110 115 120 110 100

Indian Mocha 110 115 120 110 100

Indian Chocolate 100 105 110 100 90

Indian Caramel 100 105 110 100 90

Indian Vanilla 80 85 90 80 70

Indian Cappuccino 120 125 130 120 110

Table 5. Projected Sales (Daily)

Customer
Frequency No. of Total
Product (Indian Price
of Buyers Orders Amount
Students)
Indian Brewed Coffee A – 15 Once (1) 15 75 ₱1,125.00

B – 10 Twice (2) 20 75 1,500.00

Indian Caffe Latte C - 15 Once (1) 15 110 1,650.00

D–5 Twice (2) 10 110 1,100.00

Indian Mocha E-5 Once (1) 5 110 550.00

F-5 Twice (2) 10 110 1,100.00

Indian Chocolate G - 10 Once (1) 10 100 1,000.00

H-5 Twice (2) 10 100 1,000.00

Indian Caramel I–7 Once (1) 7 100 700.00

J - 10 Twice (2) 20 100 2,000.00

Indian Vanilla K-8 Once (1) 8 80 640.00

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L–5 Twice (2) 10 80 800.00

Indian Cappuccino M - 20 Once (1) 20 120 2,400.00

N-6 Twice (2) 12 120 1,440.00

TOTAL ₱17,005.00

Marketing Program/Strategies

 Practices of Competitors

Existing coffee shops are just around the area of the Taste of Indian

Coffee such as Blugre, Fagioli Coffee Club of Landco Corp. Center and

Starbucks, The Coffee Bean, Bo's Coffee, Krispy Kreme, J.CO,

Annabelle's at Abreeza Mall. Those establishments will definitely become

indirect competitors of the Taste of Indian Coffee since they are not

catering Indian coffees. These coffee shops offer variety of coffee drinks,

other beverages and full service to customers. Aside from these, they also

have their own strategies. Based on an interview conducted in each one of

those coffee shops' customers, they liked their good ambiance with music

and others said that they also offered good tasting coffees and amazing

food presentations. These shops are also promoting their business

through the use of social media which is trend nowadays. They have

Facebook page where they posted their various products and promos and

customers may share the post and invite their family and friends to come
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by and try their products. With this, the information will easily spread out

and they can promote their business easily and cost-efficient.

 Own Marketing Program/Strategies

The Taste of Indian Coffee will present and position itself as a

vibrant coffee shop that not only offers the best-tasting Indian coffees but it

also provides you a home-liked and comfy environment, which established

corporate environments' lack. We will cater Indians' minds and bodies,

which will help us grow our market share in this competitive market.

Before the business will commence, we will be distributing flyers

and posting some tarpaulins to inform everyone near the place, such as

the students of Davao Medical School Foundation (DMSF), which is our

direct customers, and even for those who are willing to try this. Through

this, they will be informed on our opening date, the products and services

we are offering, the price range of our specialties, promos and

commodities they can avail. The Taste of Indian Coffee will also develop

its own brand symbol and tag line for customers to remember the place

and business name easily.

Aside from its great ambiance, the Taste of Indian Coffee will also

be displaying three (3) bookshelves filled with medical and any kinds of

books for the customers who are really fond of reading books and Wi-Fi

connectivity is also offered for those customers who want to surf and

browse the internet.

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And we will also have our Facebook page, and you can also follow

us on Twitter and Instagram.

Marketing/Selling Expenses

The marketing/selling expenses include advertising expenses which

consist of the marketing promotion expenses for the grand opening of the Taste

of Indian Coffee in an amount of P8,500.00; Flyer printing (500 flyers at P5.00

per copy) for the total amount of P2,500.00; and tarpaulin printing (20 pieces at

P160.00 per piece) for a total of P3,200.00 which tantamount to P14,200.00

start-up expenses.