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Submitted To: Mr. Vimal Jaisawal
Submission Date: 3rd Mar 2011
Submitted By: Himanshu Gaurav Roll no. 23 MBA(IB)
Institute Of Management Studies University Of Lucknow
Contents Executive Summary Business & Industry Profile Organization & Insurance Competition & buying patterns Business Strategy SWOT Analysis Competitive Edge Sales Strategy Products & Services Product Line Organizational Structure Marketing Strategies Promotion Strategies Positioning Strategies Pricing Cost Analysis Mode of Payment .
The café establishment will play modern music for ambiance and provide free wireless internet access for patrons to attract professionals in the nearby business areas. light snacks and sandwiches will be offered to customers. . In addition. including gourmet blends. and other tasty treats. Other available beverages. will also be available. such as soda and juice. The café will serve a variety of coffees. muffins. The café will also search deli-style sandwiches with the freshest ingredients. The mission of Coffee Brake is to provide high quality products and services in a warm and inviting environment. The café will be known for different flavors of coffee.Executive Summary The Coffee Brake is a new coffee shop in the Valencia Town. nestle and espresso.
Coffee brake will capitalize on its proximity to the Valencia Society to build a core group of repeat customers. all in one. strong coffee-based beverages.Business and Industry Profile Description of the business: Coffee Brake is determined to become a daily necessity for local coffee addicts.5 billion with gourmet coffee representing 33% (or 2. At the same time. hot dry summers drive people into cafes to order iced drinks. which recently announced a project to open 40. This trend has partly been emphasised by Starbucks. . snaks as well as free books that its patrons can read to enjoy their visit. The retail coffee industry is flourishing in the India. There is no doubt that new coffee culture is brewing and one that bodes well for new entrants in the market. In 1994. Industry Analysis: A coffee business provides unbelievably high profit margins.5 billion) of that. more than most other types of businesses. biscuits. coffee has really become a part of the lifestyle in the high society of India. a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book. comfortable atmosphere where the customer can receive quality food. Coffee consumption has shown a steady 2. It is estimated that a cup of coffee can generate upwards of 50% in profit. though cyclical as people will consume less hot drinks during the summer. Further. total sales of coffee were approximately 7. Its discerning coffee drinkers are in favor of well-prepared.5% growth rate in the India over the last decade. which they can consume in a relaxing environment Vision Statement: The perfect cup… Mission Statement: To provide a friendly. The great thing about a coffee business is that. Recent trends have shifted from ordinary coffee to more speciality coffees. service and entertainment at a reasonable price.000 new stores worldwide. Coffee brake will offer its customers the best prepared coffee in the area that will be complimented with pastries. it is nevertheless becoming more common for people to drink coffee even in the summer. With the growing demand for high-quality gourmet & roasted coffee and great service.
P.) Location Criteria: • • • • • 2700 Square feet Open and clear road In a good society Have good location Less cost in the form of rent Competitors • • • • • • Main competitors in Lucknow Café coffee day Barista Lawazza The Coffee Shop Nescafe Royal Café . and designed for fast and efficient operations. Mahanagar. • Targeted Market and Customers: My customers will be students. adults. as well as maximizing the sales of high margin products. • Marketing strategies aimed to build a solid base of loyal customers. Lucknow(U. Married peoples (males & females) and Employed persons. Location The Coffee Brake will be located in the : Gol Market. • Employee training to insure the best coffee preparation techniques.Keys to Success: The keys to success will be: Store design that will be both visually attractive to customers.
beverages. Buying Patterns: The major reason for the customers to return to a specific coffee bar is a great tasting coffee. Coffee Brake will offer only the best quality products and service to its customers. We strongly believe that selling coffee with a great service in a nice setting will help us build a strong base of loyal clientele. Although.Competitive advantage The main competitive advantage of the Coffee Brake is its menu. and treats to go along with their connectivity. getting customers to spend more and come back more often. coffee consumption is uniform across different income segments. Coffee bar will price its product offerings competitively. No other café offers a full range of food. SWOT Analysis Strength High quality Reasonable price Best taste Good location Weaknesses Load shedding No brand Unawareness . retaining the existing customers.The Coffee Brake other competitive advantage is its location. as stated before. quick service and pleasant atmosphere. 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. Business Strategies: Coffee Brake marketing strategy will be focused at getting new customers.
customer retention programs will be used to make sure the customers are coming back and spending more at the coffee bar. Comfortable sofas and chairs. Sales Strategy: Coffee Bar baristas will handle the sales transactions.Opportunity No direct competitor in the same area Job opportunity for locals The initiator in the selective area Caters Threat Economic condition Political instability Local restaurants Competitive Edge Coffee bar will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. the customer will be given their order free of charge. At the same time. at least two employees will be servicing clients--while one employee will be preparing the customer's order. the other one will be taking care of the sales transaction. Coffee Bar will use banners and fliers. If that does not work. dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Coffee Bar from incumbent competitors. Focus on the quality of product and as well as customer satisfaction. To speed up the customer service. . Warranties: If the customer has a complaint. In order to build up its client base. everything will be done to satisfy them. utilize customer referrals and cross-promotions with other businesses in the community.
We will offer designer flavored cream and five kinds of sweeten. and Sweet-n-Low. Coffee bar will also offer its clients pastries. Splenda. We will also sell homemade cookies. Cream and sweetener is at no extra charge. will be sold in the coffee bar. . Along with the espresso drinks.Products and Services Coffee Bar will offer its customers the best tasting coffee beverages in the area. and cappuccino. Features All drinks will be made with filtered water and the highest quality ingredients we can get. as well as some refreshment beverages. i. brewed coffee and teas. Product Description Coffee Brake will offer high quality coffee. small salads and sandwiches.e. hot coca. tea. The store layout. For the gourmet clientele that prefers to prepare its coffee at home. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. and doughnuts. brownies. at a very reasonable price. Cappuccino and hot coca will have whipped cream toppings as well as the option for candy sprinkles. Frozen drinks will have caramel or chocolate syrup drizzled in the glass and over the drink. Cookies will have the option of a chocolate or caramel dip and sprinkles. Uniqueness The menu offerings will be supplemented by free books and magazines that customers can read inside the coffee bar. honey Equal. Coffee bar will also be selling coffee beans. also reasonably priced. menu listings and marketing activities will be focused on maximizing the sales of higher margin. sugar.
There are five persons who will manage all the responsibilities of the coffee bar. these will be recruited from the local community. Staffing: We will hire two persons for home free delivery and two waitress. . Management Team: It’s a partnership project.Product Line Hot Coffee Cappuccino Coffee Dry Cappuccino Black Coffee Icy Coffee Cold Coffee Russian Coffee Freeze dried coffee Russian Tea Green Tea Simple Tea Cold Tea Cakes & Pasties Snaks & Biscuits Beverages Organizational Structure Our organizational structure will be a simple pyramid style with the owners putting in as much work as the employees.
Target market The customer will be between 18 to 55 years old. people working in offices located close to the coffee bar and on sophisticated teenagers.000 per year.19 years Young 19 – 25 years 25 – 50 years . Marketing Strategies Indian coffee consumption has shown steady growth. They favor well-brewed gourmet coffee drinks and demand great service. The income level is between Rs300000 and Rs1000. Market Segmentation: Coffee bar will focus its marketing activities on reaching the University students and faculty. Regulatory Issues: Somewhere in India have regulations regarding food service establishments.Labor Market Issues: In this area there are many students looking for work. We have already obtained the appropriate business permits. part time or full time. Coffee drinkers in the Lucknow are among the most demanding ones. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. with gourmet coffee having the strongest growth. Coffee bar will strive to build a loyal customer base by offering a great tasting coffee in a relaxing environment of its coffee bar located at their location. Total population of Lucknow= More then 5 million Targetted population= more then 2 million Economic Profile: Middle Class Upper Middle Class Privileged Class Age Groups: Teenagers Adults AdultS 16 . we want to fill their needs.
Our market research shows that these are discerning customers that gravitate towards better tasting coffee.Mature Professional Classification: 50 and above Students Young Professionals Mature Professionals Retired Target Market Segment Strategy: Coffee Bar will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. a lot of college students consider coffee bars to be a convenient studying or meeting location. this will provide a unique possibility for building a loyal client base. internet advertising and word of mouth. We will leverage universities. community organizations." to differentiate our service from the competition. 2. These postcards will announce Grand Opening Specials. where they can read or meet with peers without the necessity to pay cover charges. print ad. Promotion Strategy Coffee Bar will use several ways to reach new customers. . although our location close to the colleges & schools (Montford school & IT college is nearby) means that most of our clientele will be students and faculty. 1. Postcards—Coffee Bar will employ targeted mailings to our customer base. For us. Advertising--We'll be developing our core positioning message: "On-Site Roasted Coffee. Made to Order. Such customers vary in age. Furthermore.
Vision Focus 1.The Coffee Brake will be promoted in a variety of ways. special. informed. They are: Price .3. Marketing Programs The programs Coffee Bar will initiate are depicted on the following graphs. and enjoy quality beverages. Promotion ." 4. Coffee Bar is a place to feel welcome. and have been transliterated into "Vision Focus" and "Customer Focus" programs. Relaxing Environment o Product Offerings o Speakers and Entertainment 3. A great place for food. they will be asked if they wish to sign up on our internet mailing list. These programs support the soft needs and product offerings listed in the Marketing Strategy section. and energized. Place . beverages. Coffee Bar meets the needs of this market. Media—Coffee Bar will work with local media on several different "story of interest" venues.The Coffee Brake will be located in the Gol Market. Internet Advertising--As customers come in. Mahanagar. Product . Community Involvement Community Reinvestment 2.The Coffee Brake will offer a wide variety of food. Only the highest quality items will be sold. fun. Special promotions will be available only through Internet "coupons. relax. and treats. Unlike the other coffee shops in the metro area. have fun. Marketing Plan We will build our marketing plan around the four P's of marketing.The Coffee Brake will be known for its competitive prices for food and Internet service. . and entertainment. Coffee Bar has character and a purpose. Welcoming Environment o Vision Communication o Positioning Statement For the community who needs a place to seek.
with prices ranging from Rs. Pricing: We have to take 30% profit of from each cup. Through menu analysis. A veggie sandwich will be the lowest priced sandwich at Rs. The look and feel of the shop will ensure that anyone who walks through the door feels right at home. All prices take into consideration the cost of material. Cost . This is a place where all are welcomed and embraced with a warm greeting and hot coffee. Coffee will be sold in three sizes. Chocolate and Pineapple cakes will be sold by the half slice. 25% for food and 45% for beverages.250 to 1000. Prices range from Rs. Products Hot Coffee Black Coffee Roasted Coffee Cappuccino Coffee Dry Cappuccino Coffee Russian Coffee Icy Coffee Cream Coffee Cold Coffee Dried Freeze Coffee Normal Tea Green Tea Russian Tea Cold Tea Price 40 30 110 70 80 100 90 50 80 120 15 50 70 60 All soft drinks and juices will be sold for different prices. We want our customers to learn about coffee. as well as look at national statistics on coffee and sandwich pricing. Sandwiches will be sold for various prices. Flavors will be available at an additional charges.40 to 100. we have planned menu pricing accordingly. Whole cakes will be available for purchase in a price range of Rs.35. depending on the meat chosen.For the neighborhood.25 to 45. We have polled local and regional cafes. Coffee Bar brings a positive message with a community centered focus. We have done extensive research regarding pricing for the Coffee. and experience quality first hand.
Purchase: Prices 490 343 110 120 90 110 175 300 100 40 3000 530 960 700 7068 Raw material Milk Coffee Cream Sugar Mineral water Tea bags Dry milk Disposable cups Disposable plates Disposable sticks Machine rent Other expenses cakes Marketing Expense Total Sale: Hot Coffee 4000 .Analysis: For one day which exhibited on 3rd March 2011.
Personal Interviews: On a daily basis.Cream Coffee Tea Almond Cake Pineapple Cake Chocolate Cake Total 4350 435 375 425 510 10095 Difference: Total Earning Total Expense Profit Feedback The Coffee Brake will use two methods to measure customer satisfaction. Mode Of Payment Bank Loans. and service. They include: Comment Cards: With each purchase. attitude of the employees.60% of the capital Self Financed-40% of the capital 10095 (7068) 3027 . The cards will have questions about quality. and overall satisfaction from the experience. customers will receive comment cards to fill out. speed of service. we will stop and speak with customers to ask them about our food. We will give out 25% off coupons to people who give us "honest" answers. drinks.