Transcript
Problems to establish this product in the market:
High Prices of Coffee is charged by the Foreign
based companies like Starbucks, Costa Coffee.
It is costly for people with low income to enjoy
coffee in Café.
This shops only attract Rich High class peoples.
Solution
To launch the New Brand of Coffee for common
people with low income group with same range of
products with lesser prices.
KB’s Café is an for all People from
lower Income group to Higher
Income Group.
KB’s Café Offer large variety of
product at minimum cost.
The Market Analysis
•Coffee is the drink of choice for many people across the world. Every morning
millions of people rely on their morning fix to get going for the day.
•According to USDA, consumption in India has been hovering around 1.2 million
bags for last 5 years.
•In India the trend is increasing and more and more urban and semi-urban
population is switching to coffee over tea.
•Growth rate of market is around 20% annually and is expected to remain in
double digit till next decade.
Customers
•My target market will be to anyone who enjoys coffee, but will mainly target
people age 15 and older, both male and Female, who are students and of working
class.
Products
Espresso Drinks
•Americano
•Breve
•Cappuccino
•Latte
•Mocha
•Macchiato
Coffees
•Daily Brew-Reg./Decaf.
•Organic French Roast
•World Tour Blend
Smoothies
•Fruit
•Blended Ice Coffee
Drinks
Bakery
•Croissants
•Bagels
•Pie and Cakes by the slice
•Muffins
•Cinnamon Rolls
•Breakfast Sandwiches
•Scones
Other Drinks
•Hot Chocolate
•Hot Tea
•Chai Tea Latte •Kid’s Hot Cocoa
•Fountain Drinks
•Juice
White and Chocolate Milk
Sales
As the product and the brand is new in the market and as there is huge
competition in the market from current market players like CCD, Barista
etc.
My sales strategy will be to sell my coffee products in lower cost
compared to competitors. This is simply to penetrate the market. And sell
as much as coffees and create the brand awareness among the customers
Marketing
Competitors
Revenue Model
Start Up Cost
Yearly Rent = Rs. 240000/-
Modernize Cost = Rs. 300000/-
Furniture Cost = Rs. 100000/-
Equipment Cost = Rs. 200000/
Supplies Fees = Rs. 540000/-
Electricity and Water Bill = Rs. 100000/-
Advertisement Expenses = Rs. 1000000/-
Total Start up Cost Rs. = Rs. 2480000/-
Monthly Operating Cost
Rs. 8000/- per month for Electricity, fuel and water expenses
Rs. 20000/- Rent per month of the Shop
Rs. 45000/- Supply Cost
Rs. 83333/- Advertisement Cost
Rs. 60000/- Employee Salary
Estimate Operating Cost per Month of Rs. 216333/-
Price and Revenue
Coffee : Rs 50 to Rs. 150 (Depends on flavor)
Bakery Products : Rs. 60 to Rs. 300
Smoothies : Rs. 45 to Rs. 350 (Depends on flavor)
Ice Drink and other drink : Rs. 40 to Rs. 200
Estimated Sale per month
Coffee: 200
Bakery Products: 75
Smoothies: 60
Ice Drink and other Drinks: 100
Day Revenue
Coffee = 100*115 = 11500
Bakery Products = 50*200 = 10000
Smoothies = 25*250 = 6250
Ice Drink and other drinks = 25*150 = 3750
Total Day Revenue = (11500+10000+6250+3750 = Rs. 31500)
Monthly Revenue = 31500*30= Rs. 945000/-
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Government Taxes
Service Tax: 12.36% on 1567500 = Rs. 193743/-
Total Monthly Tax Expenses = Rs. 193743/-
MONTHLY PROFIT
= Total Revenue – (Total Cost + Taxes)
= 945000– (216333+193743)
=945000 – 410076
= Rs. 534924/-
Funds Borrowed
Rs. 480000/- is self Invested amount .
Borrowed Loan of Rs. 2000000/- from Bank of Baroda @ 12.25%
For 60 Months
EMI per month is Rs. 52379.0
Pay for the Loan
Monthly payment is Rs. 52379.0 /-
Monthly Profit is Rs. 534924/-
Net Profit After Payment of Monthly EMI = 534924 – 52379
= Rs. 482545/-
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