MARKETING PLAN

FOR

Presented by:Group 8
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14MBA1116

M. BHARATHRAM
BHALA PRASANNA S
VINAYAK BANAKAR
SAI KEERTHI KETHINENI
SANTHI KRISHNA
AKILAN R
NANDITA K

Why Healthy Coffee

Healthy Coffee is made of roasted wheat grains and
tastes like normal coffee
Coffee made of coffee beans has below disadvantages
It contains drug caffeine and hence is addictive
Creates gastric problems if consumed more than
limit
Creates sleeplessness
Cannot be consumed by certain people due to
medical reasons

 Healthy coffee manufacturing

unit would be set up in less
developed state in eastern India
where there is ample wheat
production

Executive Summary

Provide coffee powder to hotels

and restaurants
Boon to people who would not
have dreamed of having more
coffee due to medical reasons
Create caf chain that provide a
unique forum for communication
and entertainment through the
medium of the Internet.

Market Summary : Market Needs

Convenience :The area of coffee shop is convenient for targeted

customer because it is near to college and Corporate locations

Customer services :Servicing the customer with superior attention

Competitive pricing :The price of coffee is bit more than a

traditional competitor like Nescafe. But far less than coffee culture
and caf coffee day.

Selection: A creative choice of food and drink and a wellconstructed entertainment environment.
Accessibility: The patron will gain access to the Healthy Coffee shop
with minimal waits and long business hours.

Market Trends
Health conscious consumer
Food quality: Preference for higher-quality
ingredients
Quality conversation: Intellectual
conversations can be had in coffee shop
settings

Market Growth

Coffee a sunrise industry

Growing young population and
promotion of coffee culture

Coffee Segmentation:
Filter coffee and instant coffee
43% share of filter coffee

Pure and blended coffee

Cheaper products like chicory, vanilla, mocha

Robusta and Arabica Beans

Different growth culture

Branded Coffee Network

of 1450 cafes across India

185 cafes

64 cafes

172 cafes

191 cafes

STRENGTHS

WEAKNESS

Healthy product made with wheat and no

preservatives are added.
Ethical and environmental practices.
Cost of production will be less.
It can be used by people belonging to all ages.
Comparatively lower cost of coffee.
Increasing health consciousness.
Unlike coffee from cocoa beans healthy coffee is not a
drug and people will not get addicted to it.

Brand visibility of healthy coffee is less.

People are not much aware of this product.

SWOT
OPPORTUNITY

Fastest growing industries in Asia

Tie ups with other companies for promotion
India is a huge and potential market.
Young population.
Growing middle class and increasing
purchasing power of people

THREAT
India has a tea based culture.
Visiting a cafe frequently is not an Indian
habit.
Other coffee brand companies attracting
customers with their advertisement.
Presence of other Hangout locations
Unorganized market

Competitor Analysis
Share of mind

Market Share

costa coffee
14%

Barista
26%

Local brands
6%

CCD
54%

Gloria
Jeans
3%
Starbucks
12%

Barista
17%

CCD
68%

Sample size 150+

Product Offering

Critical Issues:Threat of new entrants - Medium

Presence of several established brands/hangout places/fast food joints
High Investments for Expansion.

Government policies promoting FDI .

Buyers Po er - High

Low switching cost

Variety of products
Variety of services
Profitability - High
Increase Market Size and Brand Awareness by Vending Machines and Kiosks
in public places.
To Increase the use of Technology Portfolio.

Marketing Strategy: Mission

To e the est healthy

coffee chain by offering a
world class coffee experience
at afforda le pri es.

Objectives
Marketing Objectives
Develop brand awareness through a steady, month on month increase of new
customers.
Develop an increase in sales while achieving a status quo state or decrease in
marketing expenses. Grow total sales by 10% annually.
Diversify the service offering to insulate the business against fluctuations in any
one component of the revenue stream.
Build customer loyalty through educational programs.
Build the Healthy Coffee brand to the point where it becomes a household word in
the area.
Financial Objectives

A double digit growth rate for each future year.

Reduce the variable costs through efficiency gains.
Reach profitability within the first year.

 Major chunk of customers falls within the age

group of 16 to 30 which accounts for 78% of the
overall percentage.

Target
Audience

The group comprises of mainly college going

students and young working professionals

 There is a definite skew towards singles: 66%

singles, 27% married & 7% others.

Target
Audience

7%

27%

66%

Married

Single

others

S-T-P-D
SEGMENTATION
Main consumer base in the age
group of 16-30 years.

TARGETING
Students and working professionals
Health conscious customers
Customers who cannot drink coffee
containing caffeine due to medical
reasons

POSITIONING
Third Place" away from the home and
college or workplace for the young and
the young at heart.

DIFFERENTIATION
2000 outlets in 200 cities

Fun Place for people to interact.

Cafe in locations where business

can be generated.

Good quality coffee that would not spoil

health

Tie ups with Educational

institutions and Corporate.

DISTRIBUTION STARATEGY
Network strength of over 2000 cafes in 200 cities
and towns with average footfalls of 200 per caf per
day

Distribution Strategy:

Growth Target
Tier I

Single unit at eastern India with capacity of

70,000 tones per annum

Tier II

Tier III

10%
50

Packaging industry:

Serving hot coffee 210ml and cold coffee 350ml

Regional Distribution:

Targeting expansion in smaller towns

New caf formats in metros
Lounge
Square

30%
150

60%
300

 Branding based on projecting coffee

as a health drink which can be
consumed across age groups.

Action
Programs:Advertising

Social media advertisement

Word of mouth
Subtle advertising in movies and TV
serials
Print and social media
Sponsoring college events and giving
out discount coupons
Tie up with different corporates
Presence of outlets in all areas

Alter ate Ad ertisi g Mediu s

Media Partner

Advertising Medium

Budget allocation

Teli Brahma

Wi-Fi / Bluetooth Downloads

405

Caf Chronicle

Caf Newspaper

721

DSN screens

Television Screens

168

Radiocity

Caf Radio

334

Branding options

Social media campaign focusing on health aspect

Sponsoring events and contests
TV screens to advertize content at Cafes
Bra d a paig

Coffee Re olutio

Cup Branding
Vouchers / Scratch Cards / Discount Coupons

Marketing Strategy: Marketing Mix

Product
Wide range
Frappe Summer

Cappuccino Winter
Merchandizing

Price
Range from Rs20 to
R50
Over the years only
minor changes in
pricing policy

Place
Coffee powder
distribution in all
hotels and restaurants
Strategically located
outlets
Coffee machines in
college and corporate
canteens
Kiosks in offices

Promotion
Channel [V] s Get
Gorgeous Contest
Tie up with youth
brands
Sales Promotion
Social media web
pages and ads

Income and Expenses Forecast (in million)

Description

2015

2016

2017

2018

1.0 Income

16

22

30

45

2.1 Salary and Wages

5.3

5.6

2.2 Kiosks and other facilities

3.7

10

2.3 Transportation and utility

2.5

2.4 Marketing Expenses

Total Expenses

12

15.5

20.6

28

Operating Profit

6.5

9.6

17

2.0 Operating Expenses

Financials Break even analysis

CONTROLS
The purpose of expression marketing plan is
to serve as guide for the business. The
following area will be monitoring to gauge
performance:
Revenue: monthly and annual
Expenses : monthly and annual
Customer satisfaction

References
http://www.casestudyinc.com/coffee-daybrand-strategy-india
http://www.pr-inside.com/india-food-anddrink-report-q-r2164244.htm
http://en.wikipedia.org/wiki/Marketing
http://www.cafecoffeeday.com/
http://www.barista.co.in/users/index.aspx