INDIAN COFFEE HOUSE

Summary
The concept
Thanks primarily to Starbucks, within the past 20 years the coffeehouse has become a familiar
feature of India n life. Every day, millions of India ns stop for an espresso-based coffee drink.
People who would not have dreamed of spending more than Rs10 for a cup of coffee a few
years ago now gladly pay 70 to 100 for their cappuccino, mocha latte or vanilla ice blended
drink.
The specialty-coffee business is growing at a healthy pace. During the past 20 years, there has
not been a single year, despite war and recession, in which specialty coffee sales have not
grown. In many years the increase has been in double digits. In addition, no coffeehouse chains
have failed during this time, although the list of casualties in other industries is quite long.

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Long term assets:

Undercounter Refrigerators

Rs 60000

Service/Prep Counter

Rs 20000

Ice Machine

Rs3,500

Large Refrigerator

Rs10,000

Milk Coolers (3)

Rs50,000

Cash register (2) Point of Sale System

Rs14,000

Espresso Machine

Rs11,000

Fetco Coffee Brewer

Counters/Condiment bar/shelving

Rs2,500
Rs12,000

Short-term assets:
Tables, Chairs, Furnishings

Rs12,000

Persian Carpet

Rs1,000

Lighting Fixtures

Rs2,000

ESPRESSO
Name

Description

Regular

Large

Espresso

A double shot of straight espresso.

Rs100
Double

Caffe India no

Espresso combined with hot water, a gourmet brewed coffee. Rs100

Rs150

Cappuccino

Espresso with a smooth topping of milk foam.

Rs150

Rs350

Caffe Latte

Espresso combined with steamed milk, topped with a small

amount of velvety milk foam.

Rs275

Rs325

Caffe Mocha

A Caffe Latte combined with Ghirardelli chocolate, topped

with whipped cream and chocolate shavings.

Rs150

Rs375

Espresso
Macchiato

A straight shot of espresso topped with a spoonful of rich

milk foam.

Rs175

Rs250

Espresso Con
Panna

A straight shot of espresso topped with a generous dollop of

whipped cream.

Rs175

Rs250

Espresso Latte
Breve

Our famous latte made even more creamy with half and half. Rs250

Rs350

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Espresso "Red
Eye"

Espresso combined with our gourmet coffee of the day to get

Rs200
your day going.

Rs275

COFFEE DRINKS
Name

Description

Small Large

The Banana
Nut Java

Coffee. Warm milk. Banana, macadamia nut and vanilla syrups.

Topped with whipped cream and cinnamon dusting.

Rs275 Rs375

The Cafe
Milano

Coffee. Warm milk. Amaretto and vanilla syrups topped with

whipped cream and almonds.

Rs275 Rs375

FLAVORED ESPRESSO DRINKS

All flavored drinks feature quality Monin and Ghirardelli syrups.
Name

Description

Regular Large

Vanilla Cappuccino Cappuccino made with vanilla flavored milk foam.

Rs250

Rs350

Vanilla Latte

A Caffe Latte with vanilla essence added.

Rs300

Rs425

White Chocolate
Latte

Espresso, white chocolate flavoring and steamed milk topped

Rs300
with velvety foam and white chocolate shavings.

Rs425

The 50/50 Latte

Espresso. Vanilla and orange syrups, steamed milk and

whipped cream topping.

Rs300

Rs425

The Raspberry
Mocha Latte

Coffee. Raspberry and chocolate syrups. Half and half.

Whipped cream topping.

Rs325

Rs450

Chai Latte

Espresso. Chai. Steamed milk and whipped cream.

Rs300

Rs425

HOT COCOA DRINKS

All hot cocoa drinks are Rs275
Name

Description

French Vanilla Cocoa

Hot cocoa with vanilla and whipped cream.

White Chocolate Cocoa Hot cocoa with white chocolate and whipped cream.
Chocolate Truffle Cocoa Rich dark hot cocoa with whipped cream topping.
Holiday Spice Cocoa

Rich hot cocoa and holiday spices. Topped with whipped cream.

Peppermint Cocoa

Rich chocolate and refreshing peppermint. Topped with whipped cream.

Ovaltine

Ovaltine Chocolate Malt and milk.

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SMOOTHIES
All smoothies are Rs375
Name

Description

The Espresso Chocolate Malt

A chocolate malt for grownups.

The Double Dutch Chocolate Smoothie

Very chocolatey!

The Mocha Smoothie

An all-time favorite.

The Vanilla Smoothie

Rich natural vanilla flavor.

50/50 Smoothie (Orange and Vanilla)

A 50's favorite.

3.2.2 Teas
ICED TEAS
Classic India n Iced Tea, just like you remember as a kid.
Rs150 Small, Rs175 Medium, Rs200 Large
HOT TEA
Rs150 Regular

Earl Grey
English Breakfast
Peppermint
Herb Apricot
Earl Grey Lavender
Darjeeling
Formosa Oolong
Golden Flowers Herbal
Herbal Lemon
Tropical Green

4.0 Market Analysis Summary

INDIAN launches with an exciting new coffeehouse concept in a receptive and steadily growing
market segmentthe specialty coffee retail business.
Despite economic downturns in recent years the specialty coffee business has been a bright
spot. While literally hundreds of businesses in many categories are facing poor sales, negative
balance sheets and even bankruptcy, coffee chains continue to show strong growth.
It's clear that Indian's love for good coffee continues during good times and bad.
Mumbai: The Perfect Launch Market
By launching INDIAN in the Mumbai market we maximize our potential for success due to
several factors:

The highly affluent local population

Year-round tourist activity
Ever-changing upscale student population

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Excellent auto and pedestrian traffic by our location

Low media costs
High number of local special events
Prime site location

INDIAN is located at what is arguably one of the best locations for a coffeehouse in Mumbaiin
the heart of the tourist and business district, adjacent to fine dining and shopping, next to the
historic Egyptian Theatre and just steps from the busiest intersection in town.
INDIAN Coffee has all the ingredients necessary for immediate success.
4.1 Market Segmentation
Indiascustomer base in Mumbai is comprised of five target groups.
1.
2.
3.
4.
5.

Affluent local residents

Tourists
Local business people
Students
Travelers passing through

These groups are all potentially strong customer segments. The benefit of this mix of
customers is that it helps maintain consistent business throughout the year. For example, while
tourism is strong all year long in Mumbai, it peaks during the summer months. Conversely, the
student population is not as strong during the summer as it is from September through June of
each year.
The other customer segments (local residents, local business and pass-through traffic on US
66) provide a consistent foundation all year long.
Also, by appealing to several market segments, INDIAN does not become overly dependent on
any single consumer group. For example, several local coffeehouses with primarily student
customers do poorly during the non-school months. They must also market themselves anew
each year to the incoming students. INDIAN will avoid these peaks and valleys in business with
a mix of customers.

Affluent locals. Within five miles of INDIAN are 200,000 of the most affluent people in
India . Homes in adjacent Niceburg sell for $1 million to $50 million. Key influencers,
trendsetters, artists, writers and celebrities have homes in Mumbai.

Tourists. More than 5,000,000 tourists visit Mumbai every year. Most will pass by the
INDIAN location. Tourist come to "India 's Riviera" for the beaches, shopping, dining and
nearby vineyards.

Local business people. INDIAN is located on the corner of 'A' Street and First Avenue in
the heart of the prime downtown business district. It's across from the exclusive,
chic, Descarte (I Spend, Therefore I Am) department store, and one block from the number
one shopping destination in Mumbai, Lucre Galerie. 'A' Street and Frist Avenue are the two
most heavily traveled streets in Mumbai.

Students. Mumbai is home to a major branch of the State University as well as dozens of
other schools, including many prestigious private schools and academies. Mumbai High

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School is less than a mile from Dark Roast Java.

Travelers on US 66. One of the state's two major north/south routes passes through
Mumbai. According to Dept of Transportation, more than 35 million auto trips will pass
through the city. Many of these travelers will stop for a meal, to refuel and have a cup of
coffee. US 66 is also a heavily traveled commuter route to Shorewood and Beachey Head to
the south.

4.2 Target Market Segment Strategy

Overall, our strategy is to maintain a constantly high customer count by leveraging our
appeal to five groups of potential customers.
Local Residents. Approximately 200,000 people live within five miles of our INDIAN location.
The most affluent of these live even closer, within three miles. It is a short 5 minute drive to
INDIAN for most of our potential local customers. Excellent public parking is available within
100 yards.
Local customers form the loyal core of our business. We will reach out to them through local
marketing, involvement in the Chamber of Commerce, support of local charitable organizations
and sponsorship of events and youth sports teams.
Tourists. Mumbai has excellent year-round tourist activity. About 5 million people will visit the
area during the next year. While hotels are virtually sold out during the summer months,
tourism all year is exceptionally strong. This is due in large part to the temperate climate,
weekend or day-trip visitors from the greater Ontopolis area and an unusually large number of
special events (e.g. film festivals, concerts, art shows) scheduled throughout the year.
With a troubled economy and fears of terrorism, more people are opting for the relatively
inexpensive, easy and safe short trip to Mumbai for recreation. And, according to the Chamber
of Commerce, 90% of all tourists visiting Mumbai will pass by the INDIAN location.
We will target these potential customers with ads in local tourism guides.
Local businesses. Many local businesses, both private and government, are within two blocks
of Dark Roast Java. Lucre Galerie, the prime shopping center of Mumbai, is one block away. The
county courthouse is two blocks away. INDIAN is in the heart of the shopping and dining area.
Because much of the employee parking is out of the immediate area with shuttle service to
downtown, most people stay near their place of employment during breakfast, lunch and for
after-work relaxing. A significant number of these local business people find INDIAN an inviting
and convenient destination.
We also offer coffee service to local restaurants, night spots and businesses. Coffee service
brings in additional revenue and promotes INDIAN among employees at these businesses.
We will also reach business customers through Chamber of Commerce activities and by
personally visiting the shops and businesses to distribute discount coupons and menus.

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Students. The area has more than 30,000 students in several schools, including nearby City
College and State University. Students, most of whom are under the drinking age, have few
places they can go to meet their friends. Coffeehouses have proven to be very popular with
studentseven high school studentsas an "in" place to go that's also affordable.
To reach students we offer special student discount cards, pass out free coffee coupons at
student events and offer entertainment on weekends.
Students represent an excellent customer segment for several reasons:

Students bring an energy and youth to the coffeehouse

By attracting students we generate excellent word-of-mouth
Students represent a large base of potential part-time employees
Often under the drinking age, students need an affordable place to hang out with their
friends

Strategic Assumptions:

People want a better-tasting coffee drink

Coffee drinkers want a more inviting coffeehouse environment
Coffee drinks are considered an affordable luxury
The coffeehouse industry is largely unaffected by the economy and world events
INDIAN offers several unique advantages over all other coffeehouses

5.1 Competitive Edge

Our competitive edge, compared to the other coffeehouses in the greater Mumbai area includes
the following:

A significantly higher quality, better tasting coffee product.

Our current location can arguably be considered the best in the marketin the heart of the
downtown shopping, dining, entertainment and cultural district in Mumbai and adjacent to
the historic Egyptian Theatre.

An ambiance superior to all other coffeehouses in the area with upscale "Cote d'Azur" look.
It features stained glass decorations, art glasswork, Mediterranean Riviera style furnishings
and outdoor dining.

The only coffeehouse downtown to provide regular weekend evening entertainment.

A wider variety of popular drinks than our competitors, including flavored coffee drinks, tea,
chai, cocoa, juice and Italian sodas. We have several drink options for people who don't
drink coffee: tea, cocoa, juice and smoothies.

Our Internet website will include sales of whole coffee beans, tea, chocolates, gift items
and gift baskets.

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5.2 Marketing Strategy

Other coffeehouses rely almost entirely on word-of-mouth marketing to generate business. We
will engage in an ongoing aggressive marketing program that will help us establish profitability
quickly and set the stage for continual growth.
Our strategy will be to position INDIAN as the "Lexus" of coffeehouses, offering a high quality
product and superb service in a superior environment.
5.2.1 Launch Marketing
Most coffeehouse chains do little or no marketing and advertising. For example, Starbucks'
philosophy is that their ubiquity in the marketplace is all they need to sustain and grow their
customer base. They spend less than 1% of gross revenues on advertising, and when they do
spend, it is usually to introduce a new product.
The retail coffee industry is a sales-oriented business with historically very little experience in
marketing and advertising. This is likely why little is done. As yet, the major players have not
been taken over by sophisticated companies like Pepsico, where marketing is viewed as
essential to gaining market share.
An element of our differentiation from other coffeehouse chains will be our use of advertising
and marketing to gain awareness, build customer traffic and establish a strong brand image.
We intend to create immediate customer awareness and not wait for word-of-mouth. We are
also building customer traffic immediately with an aggressive Launch Marketing Plan.
Website
Our website is fully e-commerce functional and could easily become a significant revenue
source.
We will eventually sell the following items online:

Whole coffee beans, tea

Gift baskets
Gift items
Furnishings

And in a first for any coffeehouse in the world, we will also sell a catalog of glass
artwork representative of our store decor. We will act as the sales agent for a number of
participating stained glass, and art glass artisans.
The website also markets INDIAN with:

A monthly newsletter
Interesting information about the coffee industry
A map to our store
Store hours
Special events
Coffee recipes

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Most of these functions are already up and running.

Location
The location of the first INDIAN in Mumbai is a prototype of future sites. Our second site on
busy Shoreline Road in Mount Hill will feature our flagship store. It will be located just off
the Oak Patch Road and Highway 66 exit, across from the Mount Hill Inn and The Junction
Restaurant. It is by far the best location in Mount Hillone of India 's most affluent cities.
We will build INDIAN coffeehouses in the best locations possible, as this is the key element in a
successful operation.
Site selection criteria include:

High traffic location

Small or mid-size affluent market
Year-round tourist activity
Nearby (within 5 miles) student population
Outside dining

Other sites that meet these criteria include Newburg, Springfield, Bayview, Shorewood, Orchard
Valley, Beachey Head, and Capital City.
Exceptions will be made for some sites if they are deemed to be potentially very profitable.
Sites in other states might include Utah, New Mexico, Oregon, Washington, Montana, Idaho,
Colorado, etc. Plans are to locate INDIAN coffeehouses in the Western states for efficiency of
supply and management.
Outside Dining
The coffeehouse/cafe experience is indelibly linked to its European origins, where al fresco
dining is a way of life. India ns have embraced sidewalk dining. It is one of the fastest growing
additions to the India n dining scene.
Sidewalk dining also provides an excellent way for prospective customers to see and "check
out" the coffeehouse for the first time.

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Chart: Sales by Year

1 unit = Rs 2,00,000
Chart: Break-even Analysis

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Conclusion
Finally, taking into consideration all the aspects , statistics and future growth of the company I
would like you to send me a feedback on the same with proper justification and changes for the
same
Thank You
Team A

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Submitted by :
1.

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