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HIMALAYAN JAVA :A LOCAL STARBUCKS

Presenters: Group 4

COFFEE BACKGROUND
First coffee plantation: Ethiopia Arab began expanding its trade, the beans

moved to Northern Africa, then Indian and European markets caff.

Origin of the coffee -1598 via Italian Arabic : qahwa (qahhwat al-bun or wine

of the bean

COFFEE IN NEPAL
Tea was introduced in Nepal in 1800s but

coffee during the mid 1900s 1500meters

Grown in Nepal at the altitude of 500 Coffee producers: Arghakhanchi, Kaski, Parbat,

Lamjung, Lalitpur, Kavre, Sindhu Palchok,


Robusta

Two varieties of coffee in world Arabica and

In Nepal only Arabica variety is grown

BACKGROUND
First specialty coffee house in Nepal

Established in 1999 by Gagan Pradhan and his

American Partner

He took a three-months Barista Course in US

Caf on the eastern edge of Thamel


Uses the red beans harvested by Nepalese farmers Offers three separate blends:

Mountain supreme, House Blend, and Long Black

VISION
To promote Nepalese Coffee

(When Himalayan Java was first established, the national production of Nepal was only 20 tons but today the national production is about 300 metric tons)

MISSION
Its mission is to promote Nepali coffee industry by

investing in the people, from the grower to the consumers, and to promote local grown coffee in the international market.

FIRST STORE AT THAMEL

DEVELOPMENT OF HIMALAYAN JAVA BRAND


Mr. Gagan Pradhan along with his

American partner established Himalayan Java in 1999


Target customers the white collar office

workers
Set in Heritage Plaza in Kamaladi
Many corporate office in that building

BRAND NAME
Java coffee is one of the most famous Java, island of Indonesia best coffee production Name to differentiate coffee house from other

restaurants
Misconception among people- Computer training

centre
Adopted a logo of a hot steaming cup of coffee

TARGET MARKET
Nepalese who had returned from abroad White collar workers Hip and cool urban middle class

Kathmandu society

INITIAL CHALLENGES
Flaw in the market survey
Sales did not match their research data

High electricity bills contributing to overhead


Building management had been fleecing Himalayan

Java

Situation became untenable in Heritage Plaza

Himalayan Java decided to move its base

ESTABLISHMENT IN THAMEL
Moved to Thamel in 2000

Partnership with the landlord of the

building
Strategic decision
Centre of the city

POSITIONING STATEMENT
Third place a place in the minds of the

customers after their home and office.


Motto Coffee, Conversation, Community. Place to socialize with your friends. Java would cater to this niche market A coffee house never a restaurant.

INITIAL MARKETING STRATEGIES


Word of Mouth Print advertisements in English dailies

Couldnt achieve expected mileage


No further advertisements

BEVERAGES AND MENU


SELECTION
Customers not familiar with Coffees bitter

taste
Offered foods like bagels, croissant,

pastries, cookies
Customized food and drinks to local taste Menu was redesigned

GROWTH
During the World Cup 2002

Java bought 50 inch TV and started playing live

matches
Filled with 400-500 customers during match day After match also people continued to visit Java Introduced Coffee cards

BUILDING THE BRAND EQUITY


Focus always on Coffee products Careful designing of settings Continuous emphasis on quality CHAMPS- Guiding motto for all staffs Member of the American Specialty Coffee

Association (ASCA) and registered under FDA

EXPANSION / EXTENSION
Opened outlets in

Sell coffee beans and machines through

Mocca Trading
Export beans to USA, Canada, Hongkong and

Singapore
Training for baristas, comprehensive training

and post sales service for machines

MARKET SHARE
It has been acquiring a monopoly
Coffee house market
Resounding brand recognition Sales of Coffee machine

But, recently host of competitors has entered


Illy, Kaldi, Himalayan beans

But, Competition was invited by Java!!!!

INVITED COMPETITION
Competition is encouraged by Java so,

Java sell coffee machines, Java produced

beans & even provide training to its

competitors
Believe in yourself and Be confident in your

Brand equity
Achieved strong resonance with its customers

SUCCESS STORY
Most famous place to have coffee

Pleasant environment
Great Coffee & Good Food Success Factor: Consistency in quality,

service & product


High Brand awareness among customers

COMING SOON @ JAVA


Soon to bring new & innovative products
Take Away Cups
Blended coffee (enhance coffee tasting

experience)
Menu redesign (Display calorie content) Franchises of Himalayan Java Cut Food from its menu (25% cut)

CONCLUSION
Premier Coffee house of country

Achieved huge success through its innovative &

novel offering
Industry Leader New Innovations

QUIZ TIME..!!!! MILLION DOLLAR QUESTION..!!!!

How Many Java

coffee outlets are there in Civil Mall, Sundhara ??????

RECOMMENDATIONS
Differentiate itself from Himalayan Beans (Confusion

among customers)
Expansion of small outlets at various points Consistency of quality, price & service Expansion beyond the valley Urgent need to employ tools of Brand recall
Use of Social Media for brand recall

Loyalty programs for customers


Take Away cups Write some messages (Love, Friendship)

COFFEE BREAK..!!!!!