Marketing Research Project On

Coffee & ECVMs By Santosh S MMS B 108

Product Profile
Coffee
Coffee is A Beverage procured from Coffee Trees that are cultivated in coffee fields known as Beans Belt. The Beans Belt is The Area of the Earth located near the Equator. Coffee Cultivation requires Moderate temperature, Steady Sunshine, Rich Dark Soil known as Black Soil.

Top 10 Coffee Producers (World)

Country 1. Brazil 2. Columbia 3. Indonesia 4. India 5. Vietnam 6. Mexico 7. France 8. U.S.A 9. Russia 10. England Units Produced / Annum 22.5 Mn. Mt. Tonnes 19.7 Mn. Mt. Tonnes 16.5 Mn. Mt. Tonnes 14.6 Mn. Mt. Tonnes 12.4 Mn. Mt. Tonnes 10.6 Mn. Mt. Tonnes 8.2 Mn. Mt. Tonnes 6.5 Mn. Mt. Tonnes 4.2 Mn. Mt. Tonnes 2.6 Mn. Mt. Tonnes
Source: IMRB.org Updated on August 2008 3

Major Coffee Producers World Map

1. Top 4 Coffee Countries account for 65% of Total Coffee Production in the World.

2. The Worlds Largest Coffee Consumer is U.S.A @ 61 % I.e 61 Mn. Mt. Tns
3. U.S.A Produces only 6.5 % of Worlds Coffee Production.

Sourcing Of Indian Coffee Powder

1) 2) 3) 4) 5)

Indian Coffee Powder is sourced from Southern Parts Of India such as: Coorg District, Karnataka State Chikmangalur, Karnataka State Hassan Town, Karnataka Mangalore City, Karnataka Chennai City, Tamil Nadu
In 2006/07, Indias Total Coffee Production was calculated as 12.6 Million Metric Tonnes. (Ranked 5th in World List) In 2007/08, This Figure was calculated as 14.6 Million Metric Tonnes. (Ranked 4th in World List upto 3Q) Total Coffee Production = 91,25,000 Mn.Mt.Tns

Source: ICB (Coffee Board Of India)

Demand / Supply Analysis

70 60 50 40 30 20 10 0 2007 2008 2009 2010 2011 Supply Demand Total Capacity

Electronic Coffee Vending Machines

Aim:

To Create, Build and Launch ECVMs in association with Leading Coffee Companies such as
Nescafe HUL Godrej Brio Starbucks Ronicus

Principle BOOT: Build, Operate, Own, Transfer

Existing ACVMS

MRP = Rs. 16,500/-

Existing ACVM

MRP = Rs. 19,500 /-

Alternative ACVM

Cost Of Machine = Rs. 18,800 /-

New ECVM Prototype

Marketing Strategy
The Objective of building this ECVM is to provide Coffee Companies with an Unbranded Device that can be customized as per Buyers requirement
The Plan is to sell this ECVM to Firms such as Nescafe, HUL, Barista etc and enable them to brand their equipment with their own Names, Logos, Ads & Images
Benefits to Buyer are: 1. Installment of CVM at Least Cost 2. Branding of Machine as per Buyer 3. Supply of Essentials for 8 Months

I. II. III.

Plan Of Action
1.
2.

3.

Manufacture minimum 10 ECVMS and Sell each unit at Rs. 9,500/- to Leading Coffee Producers Assist Buyer in Branding Fresh Unit as per Companys Style. e.g.: An ECVM Unit sold to Nescafe will have only Nescafes Trademark, Ads & Logos. Install Units at Locations such as Banks, Post Offices, Railway Stations, Telephone Exchanges, Bus Depots, Multiplex Theatres, Shopping Malls etc.

Locations for ECVM

Banks Shopping Malls Multiplex Cinemas Post Offices Railway Stations Bus Depots Telephone Exchanges

Projected Sales / Unit

Sales Of Units in U.S.A (General M)

Source: National Geographic Research Surveys 2007

15

Pricing Strategies
Nescafe ACVM is presently priced at Rs. 16,500/- (10 KGs) Ronicus ECVM is priced at Rs. 18,800/- (20 KGs) Starbucks BRIO CVM is priced at Rs. 19,500/- (25 KGs)
1. 2.

Proposed ECVM is presently priced at Rs. 9,500/- (10 KGs) New ECVM is priced at Rs. 16,500/- (20 KGs) Planned ECVM is priced at Rs. 18,870/- (27 KGs)

ECVM Installation Charges = Rs. 4,000/Additional Units will be installed for Buyer at 50% of First Cost

Conclusion & Recommendations

1. Target Market: Target market for ECVM will be Banks, Malls, College Canteens, Cinema Theatres & Post Offices Segmentation: Will be done on basis of Size of ECVM required by Buyer such as 10 Kgs and 15+ Kgs Positioning: Should be done in such a way that ECVMs will replace Conventional CVMs as well as Manual Labor Pricing: Economic pricing to ensure Market Penetration and Product Development

Positioning

Segmentation

2.

T. Market

3.

Pricing

4.