CLUB COFFEE

The Seekers

Name Batch ID Contributions(%)

Galib Talukdar (Leader) 35th 141351120 16

Arif Hossen 40th 153401332 16

Kamrul Hossain 40th 153401315 16

Asaduzzaman Rony 39th 152391352 16
Md. Ashiqur Rahman 39th 152391309 16
Atikur Rahman 39th 152391355 16

AKM Aminul Islam

Lecturer
Department of Business
Administration

16/10/2019
 ACKNOWLEDGEMENT

At first we present our rewards to all mighty, who have provided us the
brilliant opportunity to complete this Project successfully with good
health & sound mind.

This report is about launching a new product. While any and all errors of
fact, omission, and emphasis are solely on our responsibility. We would
remiss, if we do not acknowledge those great hearts, without whose kind
help and cooperation, this paper would be jeopardized.

At first, we must humbly nod to our most honorable course instructor

AKM Aminul Islam for assigning the topic and further guideline. We are
really grateful to him for his kind co-operation in regard of this project
paper, which will help us a lot in our future course of life.

We desire & hope that this program will certainly help us to get a good
experience, so that we can be successful & build up our career in a
precise way.

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 INTRODUCTION

Coffee is the second largest commodity market and growth is expected to

continue at a strong pace for the foreseeable future. The specialty
beverage industry is growing at an equally strong pace, with sales growth
in some categories projected to grow at rates of 40% per year. This
growth offers excellent opportunities for new companies to enter this
market.
Existing coffee market size in Bangladesh is BDT 600 mn+. Contribution
of brewed coffee is almost two-third of the market while the instant
coffee market counts for the rest of the market. At present, there are more
or less 50 premium coffee cafés in Bangladesh which happen to cater a
mammoth market of almost 160 mn+ consumers which clearly indicates
that there is a huge untapped market. Among these 50 cafés, 4
international chain coffee shops (Gloria Jean’s, North End, Coffee World,
and Barista Lavazza) currently operate in Bangladesh.

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 HISTORY

The café culture is very a recent phenomenon in Bangladesh’s history.

Post-independence, there were just a handful of places for eating out,
while restaurants in general were just food serving places. Local Chinese
restaurants were the only popular places for eating out, family dining and
special events. In late 90s, fast food industry had a significant boom in
Dhaka as well as other major urban areas. People first got introduced to
local pizza and fried chicken chains.

During and after 2000, the whole food industry flourished significantly.
International restaurant and fast food chains started opening outlets in the
country. Dhaka, being the capital, experienced the biggest transformation
as many new restaurants and fast food shops have mushroomed, catering
to the palate of different consumer segments.

The industry witnessed an upward shift in demand over the last decade,
with rapidly increasing per capital income, changing consumer taste and
altering lifestyle. Massive development in electronic media introduced a
complete cultural shift for the entire nation and like most other service
oriented industries; this industry also got a major revamp in terms of new
consumer generation, increased spending and improvement in consumer's
taste and preferences which resulted in tremendous growth in this
industry introducing high end restaurants with specialization in one or
multiple cuisines followed by the introduction and the rise of the café
culture in the country and particularly in Dhaka as unprecedented number
of cafés having sprouted up in the key commercial and residential zones
of the city. The traditional local tea stalls and canteens still flourish
beside these new coffee joints, suggesting that the rise in café culture has
not stolen business; rather it’s filling up a massive gap in the market.

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1.0 Company Summary
Club Coffee, will be an company, which is sells coffee, other beverages
and snacks in its 1,300 square feet premium coffee bar located near the
City University of City campus. Club Coffee's major investors are all
group members of this group who cumulatively own over 100% of the
company.

1.1 Mission
Club Coffee will make its best effort to create a unique place where
customers can socialize with each other in a comfortable and relaxing
environment while enjoying the best brewed coffee or espresso and
pastries in town. We will be in the business of helping our customers to
relieve their daily stresses by providing piece of mind through great
ambience, convenient location, friendly customer service, and products of
consistently high quality. Club Coffee will invest its profits to increase
the employee satisfaction.

1.2 Objectives
Club Coffee's objectives for the first year of operations are:
◥ Become selected as the "Best New Coffee Bar in the area" by the
local restaurant guide.
◥ Turn in profits from the first month of operations.
◥ Maintain a Decent gross margin.

1.3 The keys to success will be:

◥ Store design that will be both visually attractive to customers, and
designed for fast and efficient operations.
◥ Employee training to insure the best coffee preparation techniques.
◥ Marketing strategies aimed to build a solid base of loyal customers, as
well as maximizing the sales of high margin products, such as
espresso drinks.

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3.0 Store Locations and Facilities
Club Coffee bar will be located on the ground floor of the any
commercial building near at Kawran Bazar. The lease contract has an
option of renewal for three years at a fixed rate that Club Coffee will
execute depending on the financial strength of its business.

This property is located in a commercial area within a walking distance

from the City University campus. The commercially zoned premises have
the necessary water and electricity hookups and will require only minor
remodeling to accommodate the espresso bar, kitchen and storage area.
The coffee bar's open and clean interior design with modern wooden
decor will convey the quality of the served beverages and snacks, and
will be in-line with the establishment's positioning as an eclectic place
where people can relax and enjoy their cup of coffee. The clear window
displays, through which passerby will be able to see customers enjoying
their beverages, and outside electric signs will be aimed to grab the
attention of the customer traffic.

3.1 Industry Analysis

This café culture is mainly triggered by the growing number of White
Collar young professionals and college and university going students. The
young professionals like to go to all these cafés for various reasons like
business meetings, family hang out with or without children and catching
up with friends and colleagues; while the students prefer to go there for
dating, hanging out with friends and passing the time while browsing the
internet and preparing assignments and presentations. Other than these
two groups, there are also people who are just looking for a nice and
warm cup of morning coffee that would make themselves ready for the
day ahead or a strong one to get refreshed after a day’s hard work while
returning home.

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4.0 Products
Club Coffee will offer its customers the best tasting coffee beverages in
the area. This will be achieved by using high-quality ingredients and
strictly following preparation guidelines. The store layout, menu listings
and marketing activities will be focused on maximizing the sales of
higher margin espresso drinks. Along with the espresso drinks, brewed
coffee and teas, as well as some refreshment beverages, will be sold in
the coffee bar.

The menu offerings will be supplemented by free books and magazines

that customers can read inside the coffee bar.

4.1 Product Description

The menu of the Club Coffee bar will be built around espresso-based
coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the
espresso-based drinks will be offered with whole, skimmed, or soy milk.
Each of these coffee beverages is based on a 'shot' of espresso, which is
prepared in the espresso machine by forcing heated water through ground
coffee at high pressure. Such espresso shots are combined with steamed
milk and/or other additives like cocoa, caramel, etc., to prepare the
espresso-based beverages.
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5.0 Market Segmentation
Club Coffee will focus its marketing activities on reaching the University
students and faculty, people working in offices located close to the coffee
bar and on sophisticated teenagers.
Our market research shows that these are the customer groups that are
most likely to buy coffee products. Since coffee consumption is universal
across different income categories and mostly depends on the level of
higher education.

5.1 Target Market Segment Strategy

Club Coffee will cater to people who want to get their daily cup of
great-tasting coffee in a relaxing atmosphere. Such customers vary in age,
although our location close to the University campus means that most of
our clientele will be college students and faculty. Our market research
shows that these are discerning customers that gravitate towards better
tasting coffee. Furthermore, a lot of college students consider coffee bars
to be a convenient studying or meeting location, where they can read or
meet with peers without the necessity to pay cover charges. For us, this
will provide a unique possibility for building a loyal client base.

5.2 Positioning
The Club Coffee will position itself as a local coffee house-
》 By charging similar prices as the large chains – the service and
quality of the product will commensurate with the price.
》 The Club Coffees is genuinely unique place to gather and meet
friends, and enjoy coffee.
》 Amenities such as free WIFI, chess games, comfy overstuffed chairs,
create a relaxing environment.
》 The market does not need a café offering fast food breakfasts or
another after hours bar.
》 The Club Coffee will position itself as the alternative to the
chain/franchise/fast food coffee house.

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5.3 Competition
Club Coffee's direct competitors will be other coffee bars located near the
City University campus. These include Peyala, North End Coffee and
other Food service establishments that offer coffee. Peyala will definitely
be one of the major competitors because of its strong financial position
and established marketing and operational practices. However, despite of
Peyala's entrenched market position, many customers favor smaller,
independent establishments that offer cozy atmosphere and good coffee at
affordable prices.

5.3.1 Competitors:

5.4 Strategy and Implementation

Club Coffee's marketing strategy will be focused at getting new
customers, retaining the existing customers, getting customers to spend
more and come back more often. Establishing a loyal customer base is of
a paramount importance since such customer core will not only generate
most of the sales but also will provide favorable referrals.

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5.5 Our Product Offerings
The existing competition uses lower grade beans, inexpensive equipment,
and does not properly train staff resulting in inconsistent product quality
and dissatisfied customers.
At Club Coffee's we are passionate about coffee and intend to focus on
consistently serving the highest quality product by:
∣ Sourcing premium beans and snacks and maintaining freshness at all
times.
∣ Using a top-of-the line espresso machine and related equipment.
∣ Providing baristas with professional training.
By focusing on quality, consistency, and great customer service, we will
build a steady repeat customer base.

5.6 Pricing Strategy

We intend to focus on specialty coffees including espresso, cappuccinos,
mochas, etc. as the profit margins are much higher than regular coffee. To
command a higher price for regular coffee, we will not use drip machines.
Instead, each cup will be single served using a coffee press so that every
cup is up-to-the-minute fresh and delicious.
Our pricing will be competitive with the higher end of the market. We
believe that customers will be happy to pay top prices for a great cup of
coffee.

5.7 Sales
We will be offering counter service in a professionally designed, cozy,
inviting interior space. Interior seating will be a mix of smaller individual
tables for intimacy, and longer, bench-style ones for larger groups. . We
intend to be open from 7:30 a.m.-9 p.m. on weekdays, and 7 a.m.-9 p.m.
on weekends.
In addition to cash, credit, and debit, we also will be accepting any kind
of payment method for purchases.

5.8 Advertising and Promotion

To minimize costs and connect with our customer demographic, most of
our advertising will be of the digital variety. We intend to aggressively
promote our products using the following methods:
∣ Posters on the local campus billboards
∣ Our state-of-the-art website
∣ Daily specials announced on Facebook, Instagram, and Twitter
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Statistics demonstrate that loyalty cards are highly effective, and Club
Coffee's will use a custom-designed rewards card to promote repeat
business.

6.0 Five-Year Marketing Plan

Opening the best coffee house this side was only the beginning. Now we
have to get the word out. This is where a well-thought-out marketing plan
comes in. Marketing a business typically involves advertising, word of
mouth and promotional ideas. Combining each of those elements ensures
that we reach as many potential customers as possible.

Signs
Place a portable A-frame sign in front of our coffee shop every morning
to remind people we are here. Changing the colors on the sign, adding
balloons and crepe paper streamers will continue to get the attention of
those driving and walking by.

Promotional Tools
Use promotional tools. Promotional tools work to bring customers in with
the promise of a reward. Examples of promotional tools include a free
cup of coffee for every 10 that are purchased, a key chain card that, when
displayed, gets the customer a 10 percent discount and free coffee
mugs -- with our logo imprinted on it -- for those who frequent the shop
at least three times a week for three months.

Advertising
Place strategically timed advertisements in newspapers, on radio stations
and on television spots. Use the ads to promote a special coffee blend or
the fact that we will offer free Wi-Fi in our coffee shop. Each ad or
announcement will state that mention of the ad gets a ten percent discount
on the purchase. This allows you to track which ads are successful and
which are not we will have employees record in a notebook which ad the
customers refer to when getting their discount.

Stamped Items
Have the coffee shop's logo stamped on coffee mugs, pens, coasters and
other items that the shop offers for sale and for free. Each bag of ground
coffee should be placed in a foil pouch that is stamped with the company
logo and each package that pastries are put into at the point of sale,
should be stamped with the company logo.
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Uniforms
Have employees wear shirts branded with the company logo. The shirts
should be provided to employees free of charge to wear during their shifts.
Higher quality, similar shirts will be for sale within the coffee shop.

Timeline for Last Two Years of Marketing Plan-

YEAR 4

New Outlets Added -1

YEAR 5

New Outlets Added -1

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 7.0 Financial Plan

The financial plan will cover the following:

Required Cost of Start-Up

START-UP REQUIREMENTS

Start-up Expenses TK

Legal 2000

Stationery etc. 5000

Brochures 8000

Insurance 5000

Remodeling 50000

Rent Expenses 80000

Promotion Expenses 20000

Equipment 300000

Other 5000

TOTAL START-UP EXPENSES 475000

Liabilities

Long-term Liabilities 0

TOTAL LIABILITIES 0

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Capital

Planned Investment

Galib Talukdar 83,333

Arif Hossen 83,333

Kamrul Hossain 83,333

Asaduzzaman Rony 83,333

Md. Ashiqur Rahman 83,333

Atikur Rahman 83,333

Additional Investment Requirement 0

TOTAL PLANNED INVESTMENT 500000

Profit and Loss

Name Profit % Loss %

Galib Talukdar 16 16
Arif Hossen 16 16
Kamrul Hossain 16 16
Asaduzzaman Rony 16 16
Md. Ashiqur Rahman 16 16
Atikur Rahman 16 16

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