Ankit Joshi (7936530)

Likaa Abu Abbadi

(7516538)
Obaro Ojarikre
(7449585)
Omotola Omopo
(7557324)

THE EXOTICA COFFEE

CAFE

Agenda
1.
2.
3.
4.
5.
6.
7.
8.

Introduction
Industry Analysis
Market Analysis
Market Strategy
SWOT Analysis
PESTLE Analysis
Financial Analysis
Sales forecast

Introduction
The Exotica Caf is a new start-up
company entering the food and beverage
industry in Canada.
The Canadian Coffee industry is worth 6
billion dollars.
TEC is introducing the Mobile Cafs and
drive-thrus.
It is a specialty beverage retailer that will
provide all the different coffee types from
different places across the globe.
It would focus on two markets: the daily
commuters and the captive consumer.

Industrial Analysis
Ottawa has a population of 1.2 million and
the popularity of the Coffee is increasing day
by day.
Coffee is the most consumed beverage in
Canada after Water.
According to national coffee association and
national coffee drinking study above almost
60% of total citizens drink coffee every day.
720,000 of Ottawa people have a cup of
coffee on regular, routine basis.
We are planning to open our first fixed caf
in Kanata. There are only 2 Tim Horton & 1
Starbucks in Kanata that too situated at
remarkable distance.

Market Analysis
Market Segmentation
The Captive Consumer

The Daily Commuter

Geographic
Ottawa

Demographic
University Students,

Population between the age

of 18-59

Tourists , young professionals

and shoppers

Psychographic
Friends looking for a hang out
place

Tourists who visit famous

spot in Ottawa (parliament)

Market Analysis
Market
Trends

Coffee is the most consumed drink in

Canada.
According to North America Tea & Coffee
INC, almost 14 billion coffee cups are
consumed every year in Canada.
Only 35-40 % of total coffee drinkers have
cravings for branded coffee.
60-65% of population in Canada have a
cup of coffee as part of their daily routine.
Customers are very time sensitive and
quality sensitive.

Market Analysis
Competitor Analysis

Market Share
OTHER BEVERAGE DRINKER

9.5

LOCAL CAFs

15

THE EXOTICA CAF0.5

Mc CAF

11

STARBUCKS

21

TIM HORTON'S

43
0

10

15

20

25

30

35

40

45

50

Marketing Strategies
Introduction of Mobile Cafes
Discounts to disabled persons and
Students
Tie ups with Macs or Quickie
(convenience stores)
Lowest prices for quality coffee
Promotional offers on social media (Caf
Facebook page, Twitter and so on)
Discount coupons would be published
once a week in newspapers
Advertisement on radio stations

SWOT Analysis
Strengths

Superior product
and in the most
efficient time.
Wide variety of
Global products
available
Discounts to disable
people and students
which increase the
popularity
Higher Quality
Baristas

Weaknesses
Not enough
experience
compared to its
competitors.
Lack of adequate
funds.

SWOT Analysis
Opportunities
Expansion, start
franchising business by
selling the brand name
Try to convert coffee
drinkers to become
coffee connoisseurs is
important key to
continued growth
Expansion of retail
operations.
Starting a tie up
business with quickie or
Macs to gain more
market share

Threats
Increased competition
from specialty coffee
stores and other coffee
house chains.
Rising coffee beans and
Milk prices.
Achieving the market
share

PESTLE Analysis
Political Factor

Economical Factor

The level of
relationships between
Canada and other
countries that produce
coffee beans .

Customer Income
increased in recent
years.

Industry specific rules

and regulations

labour cost

Currency fluctuation

Environmental
Factor
Weather Condition
Waste remaining
from packaging

Fair Trade

Social Factor
Changing life style
choices and taste of
consumer
increase in
population Growth

Technological
Factors
Emergence of
innovative
technology
Biotechnological
developments
Developments in
agriculture

Legal

Licensing
regulations related
to the industry
Introduction of
policies and
regulations by health
authorities about
caffeine production
and consumption

Financial Analysis
The Legal Registration charge for registration of the business will be :$ 1,000
The rent of the caf will be :- $ 2,500(per month)=(yearly)

$ 30,000

The Insurance for the mobile caf and static main caf= $4,000 -5,000
Advertisement & Promotion cost :- (per month)

$ 2,000

Supplies for both the cafes:- $ 5,000(per month)=

Static Website cost:-

$ 60,000

$ 500

Other expenses which includes fuel for the mobile caf and other small
compensation :- $1,000
Working capital for the cafes :-(On start-up)
Total Monthly Expense for the cafes :-

$ 10,000
$ 26,000

Financial Analysis (contd)

The Leasehold Improvement of the caf :-

$ 70-75K

The Cost for the Furniture and Fixtures in caf:-

$ 20-25K

The Equipment Cost :- $ 40-45k

The Point Of Sale Equipment for both the cafe :- $ 20K
The acquisition cost for the mobile caf :-

$85K

Total Expenses on Assets:- $250,000

So the total Cost sums up to : Asset Cost + Expenses
Total Cost =

$276,000

Financial Analysis (contd)

Sources of Funds
Two Sources of Funds:- 4 Partners(Owners
Injection) $(10,000*4)
= $ 40,000
Commercial Loan of = $ 250,000
Total:-

$290,000

SALES FORECAST
cups of coffee consumed in whole Canada : 14
billion
60% of the population of Canada drinks at least
single cup of coffee every day.
According to census of 2012 there are
approximately 1.2 million people in whole
Ottawa.
Step 1: calculating 60% of 1.2 million comes to 720,000
people who drinks coffee daily.
ASSUMPTION: we are expecting to get 0.5%
market share
Step 2: calculating 0.5% of 720,000= 3600 people

SALES FORECAST (contd)

We are calculating the sale forecast in reference to
medium cup of coffee as our main core product
COFFEE
So multiplying rate of a medium coffee cup * total num.
of cups
= 1.6*3600 = $5760 a day
= $5760 * 30 a month
= $ 172,800 a month
BEP is attained at: 1404 cups a day.
Total profit comes to $93,097.25 a month.

BEP ANALYSIS GRAPH

BEP GRAPH EVALUATION

4000

3600

3500
3300

UNIT SOLD DAILY

3000

3000
2700

2500

2400
2100

2000
1800
1500

1500
14001403.65
1200

1000
500
300

900
600

CUMMULATIVE