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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 Service/Prep Counter Ice Machine Large Refrigerator Milk Coolers (3) Cash register (2) Point of Sale System Espresso Machine Fetco Coffee Brewer Counters/Condiment bar/shelving Rs 60000 Rs 20000 Rs3,500 Rs10,000 Rs50,000 Rs14,000 Rs11,000 Rs2,500 Rs12,000

Short-term assets: Tables, Chairs, Furnishings Persian Carpet Lighting Fixtures Rs12,000 Rs1,000 Rs2,000

ESPRESSO Name Espresso Caffe India no Cappuccino Caffe Latte Caffe Mocha Espresso Macchiato Espresso Con Panna Espresso Latte Breve Espresso "Red Description A double shot of straight espresso. Regular Rs100 Double Rs150 Rs350 Rs325 Rs375 Rs250 Rs250 Rs350 Rs275 Rs150 Rs275 Rs150 Rs175 Large

Espresso combined with hot water, a gourmet brewed coffee. Rs100 Espresso with a smooth topping of milk foam. Espresso combined with steamed milk, topped with a small amount of velvety milk foam. A Caffe Latte combined with Ghirardelli chocolate, topped with whipped cream and chocolate shavings. A straight shot of espresso topped with a spoonful of rich milk foam.

A straight shot of espresso topped with a generous dollop of Rs175 whipped cream. Our famous latte made even more creamy with half and half. Rs250 Espresso combined with our gourmet coffee of the day to get Rs200

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Eye"

your day going.

COFFEE DRINKS Name The Banana Nut Java The Cafe Milano Description Coffee. Warm milk. Banana, macadamia nut and vanilla syrups. Topped with whipped cream and cinnamon dusting. Coffee. Warm milk. Amaretto and vanilla syrups topped with whipped cream and almonds. Small Large Rs275 Rs375 Rs275 Rs375

FLAVORED ESPRESSO DRINKS All flavored drinks feature quality Monin and Ghirardelli syrups. Name Vanilla Latte White Chocolate Latte The 50/50 Latte The Raspberry Mocha Latte Chai Latte Description A Caffe Latte with vanilla essence added. Regular Large Rs250 Rs300 Rs350 Rs425 Rs425 Rs425 Rs450 Rs425

Vanilla Cappuccino Cappuccino made with vanilla flavored milk foam.

Espresso, white chocolate flavoring and steamed milk topped Rs300 with velvety foam and white chocolate shavings. Espresso. Vanilla and orange syrups, steamed milk and whipped cream topping. Coffee. Raspberry and chocolate syrups. Half and half. Whipped cream topping. Espresso. Chai. Steamed milk and whipped cream. Rs300 Rs325 Rs300

HOT COCOA DRINKS All hot cocoa drinks are Rs275 Name French Vanilla Cocoa Description 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 Peppermint Cocoa Ovaltine Rich hot cocoa and holiday spices. Topped with whipped cream. Rich chocolate and refreshing peppermint. Topped with whipped cream. Ovaltine Chocolate Malt and milk.

SMOOTHIES All smoothies are Rs375

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Name The Espresso Chocolate Malt The Double Dutch Chocolate Smoothie The Mocha Smoothie The Vanilla Smoothie 50/50 Smoothie (Orange and Vanilla) 3.2.2 Teas ICED TEAS

Description A chocolate malt for grownups. Very chocolatey! An all-time favorite. Rich natural vanilla flavor. A 50's favorite.

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 Excellent auto and pedestrian traffic by our location Low media costs High number of local special events Prime site location

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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 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

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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. 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.

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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.

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.

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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

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.

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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. Chart: Sales by Year

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

Break-even Analysis
$25,000 $20,000 $15,000 $10,000 $5,000 $0 ($5,000) ($10,000) ($15,000) ($20,000) ($25,000) $0 $6,000 $12,000 $24,000 $36,000 $48,000 $60,000 $18,000 $30,000 $42,000 $54,000 $66,000

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