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Analyse the potential and viability of the success of newly opened store Coffee
Planet (Sam) Mumbai
Target Market
Primary Target Market: The Primary target market for Coffee Planet in Mumbai is
the young generation both female and male students from the ages of 18-34. This
market is well educated and comes from middle class to upper middle class
population. Since the location is close to the Mumbai University customers can have
easy access to stores
Secondary Target Market: The secondary target markets are the, multinational
offices; local people where highly paid consumers work therefore special marketing
strategies will be used to gain their brand loyalty to Coffee Planet.
A. Proposed Organization
B. Proposed Product/service
1. The Product
Coffee Planet will sell a variety of coffee and tea beverages along with different
types of pastries, confections, and baked goods, coffee-related accessories and
equipment. The coffee shops provide customers with a pleasant place to come and
relax, study, work, or have business meetings. Both locations will provided wireless
Internet 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 new
menu will be originated after several months of research and development. There are
some common tastes preferences of the Indians known already. For example, Indians
tend to take more cream in their coffee. Also, the skim milk option will not be offered
in India because dieting is not a commonly accepted practice in the country. Indians
will 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 is
India’s national fruit. The coffee beans and tea will be bought from local Indian
farmers in order to support the local agricultural economy, save money in
transportation and tariffs, and gain tax benefits. Inspections of the crops will be taken
into consideration to ensure the high quality and in maintaining standards. The
inventory 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 Strategies
1. Pricing
Competitive pricing is vital for the business to grow and succeed but definitely costs
need 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 affordable
to the target audience. The payment will be done in rupees so the price of coffee
would 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 than
those 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 Coffee
company 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 from
newspaper advertising to television ads. Since this is a test venture and there is only
one location of store being opened, the promotion for the store has to be focused on
our target markets. Billboard advertising on the roads leading to the store locations is
a 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 big
companies. 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 the
latest product and services
STAKEHOLDERS
• Customers
• Suppliers
• Community
• Employees
• Bank and Brokers
Suppliers:
The key stakeholders especially the suppliers are crucial for my business as
operation depends on their supply of products.
These are many suppliers in the market available. However, my potential suppliers
are 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 have
mentioned have agreed to my proposal
Profit and loss A/c for the year ending March 2010
Costs:
Direct Mail: 3000 rupees per 2500 prints plus stamps costs to mail directly to the
homes.
Coffee Planet (Mumbai) will sponsor scholarship contests and cricket tournaments for
the local students and make an annual large donation of Rs75, 000 to the local public
school systems to enhance brand loyalty. This environmental campaigning will give
Coffee Planet positive publicity.
SWOT ANAYLSIS:
SWOT analysis is an important tool which will help business to analyse the
environment of any business. It also helps to originate the strategy of our products to
generate sales.
7) RISK ASSESMENT:
Risk assessment is examination of what factors are going to harm your project in
present and future and by identifying those factors what precaution or steps are taken
to minimize or avoid those risk factors.
4. Resources High Resources should be properly allocated and all the tasks
should be completed on time otherwise costs will go up
5. Budgets High Budgets should be identified at the start of the project
otherwise have to depend on other sources for availability of
finance
6. Objectives of the High If the objectives are not met the outcome of the project may
project not be achieved
COMPETITION
The products of Coffee Planet faces competition with its local competitors such as
Barista coffee company and Coffee café day. The competitive advantage is that there
are no local competitors within the desired location
KEY TO SUCCESS
Innovation of a coffee culture in the desired location and its products, services will
differentiate Coffee Planet from its local competitor’s.
Coffee Planet will position itself as an educational resource for individuals wishing to
learn about the benefits of the internet has to offer great Coffee and bakery products
CRITICAL ISSUES
The dual product/service of Coffee Planet business faces competition on two levels.
Coffee Planet competes not only with coffee retailers, but also with Internet service
providers. The good news is that it does not currently face any direct competition
from other cyber cafes in the local market. There are a total of three cyber cafes
within the desired area one located two in Kalina and nearby the Mumbai University
MACRO ENVIRONMENT
Many factors contribute to the large demand for good coffee. The student population
at the University is a main source of demand for coffee retailers. The popularity of the
internet is growing increasingly those who are familiar with the information
technology are well aware of how fun and addicting surfing the internet can be. Those
who have not yet experienced the COFFEE need a convenient relaxed atmosphere
where they can feel comfortable learning about and utilizing the current technologies.
Coffee Planet seeks to provide its customers with affordable internet access in an
innovative and supportive environment
POSITIONING
Coffee Planet will position itself as an upscale coffee house and internet service
provider. Students from downtown housing centres will use Coffee Planet as a place
to socialize and discuss the internet sites
Target Marketing:
Target marketing means we are targeting particular audience group in form of small
groups, individuals depending upon their level of interest, desires because they are our
potential customers. However the 6W will help us to decide who is our target market.
Who?
What?
As the project is about coffee business various products would be sold such as the
Cappuccino, Latte, Mocha, cold coffee, natural juices to fit into the customers taste
Where?
Why?
The potential customers will buy products because the product is gaining popularity
and in demand because the changing consumer attitude and taste
How?
Generally, my potential customer will buy the products and it totally depends on the
order of customers
At this stage the Project manager should make sure that the all the objectives are met
within the set deadlines in terms of budget, quality, and resources by monitoring and
controlling the process
The overall strategy for the project has been discussed earlier in this case. Thus the
ultimate objective would be to provide good quality products by taking quality
standards into consideration. As we provide the technical guidance and support.
Moreover, we aim to provide first three services free of cost to the customer within
the six months from the purchase date of the product which will add value to my
project and overall business. We have described earlier, to follow the low-cost high
turnover approach to attract the potential customer. If they are getting best quality
with the low prices, will help to gain the market share and sales.
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