§


Coffee hours a hypothetical startup company located

near Faridabad, Haryana is planning to launch an
herbal coffee in the Indian market, initially focusing on
the national capital, Delhi.

For now, Coffee hours aims to setup 4 up market coffee

bars across various locations in Delhi, that will serve
herbal coffee in a good ambience.
{4 outlets are at:-
ͻ Rohini
ͻ C.P
ͻ G.K
ͻ Lajpat Nagar
 
 


ë ision: Coffee Hours aims to challenge the
existing players in the market with its herbal
coffee and has high hopes that that will bring
about a paradigm shift in this segment and that
the consumers will ditch their old brands and
will look forward on switching to us.
ë Mission: To enhance the wealth generating
capability of the enterprise in a globalizing
environment, delivering superior and
sustainable value.
^
 





 

  
ë Cafe culture has grown by leaps and bounds in the
capital regions and cafes have become a hotspot
for the young and old alike.
ë Coffee Bars have become more of lifestyle in Delhi
as we are heading towards development.
ë Tremendous growth in the industry in the last 2
years
ë Consumers are open to trying out new concepts &
brands.
ë Annual spend on eating out (organized +
unorganized segments) Rs.35,000 crore
 D
 


ë According to the current market situation Coffee
hours should target only Delhi͛s market.
ë There are several reasons, firstly Herbal coffee is a
relatively new product in the Indian market although
the product has gained immense popularity and is
well established in the west, but the Indian coffee
industry has remained conservative in its approach.
ë One of the major factors being that experimenting
with the ongoing trend involves a lot of risk and this
might show up in the company͛s marginal growth
ë  econd reason being, coffee hours is a new company and
lacks a brand identity.
ë The industry is dominated by niche players who have
deep roots and there might arise a situation whereby the
other players might imitate or come up with substitutes.
ë Opening outlets in a metro like Delhi will help coffee
hours to generate that much needed hype about the
concept of herbal coffee.
ë It also helps in better understanding about the potential
of the product, level of competition.
ë All together coffee hours can surrender itself to its target
audience that will provide with a much needed feedback
and will also respond to its every move.
^ 





 î

 



ë Coffee hours should go for patenting some
ingredients so as to retain its competitive edge else
its herbal coffee might face some serious threats
from its rival brands that might come up with similar
flavor coffee or substitutes.
ë Getting a patent right will ensure monopoly for some
period of time and will not only help in smooth
operations but also help the brand maintain that
exclusivity of its herbal coffee.

 §
 
ë Coffee - 2nd most popular drink after tea across
India.
ë Widespread acceptability amongst the
population.
ë Easy to manage.
ë Good return on investment
ë Relatively lower costs.
ë High Profit Margins.
ë Easy availability of manpower across the country.
 å î



ë Herbal Coffee
ë Coffee with Low Fat Content
ë Coffee with Low Calories
ë  alad͛s &  andwiches for Health Conscious
People.
ë Music and computer café with library.
ë Live performance of various up-coming bands
in weekends.
  WOT Analysis
 
  ‰



ë Brand ëårban Market
ë Management ëDiverse target market
ë Careful Pricing  trategy ëIT Hubs
ë Health Conscious ëEducational Hubs
ë Technology

D 
 
ë olatile Customer Base ëIncrease in coffee bar market
ë  easonal Business ëGrowing no. of in house coffee bar
^ 

 


ë Within these geographical markets it should not only
focus on person͛s in the age group of 15-25 years and
should look beyond for broader customer groups
mainly because coffee has gained the status of an
ideal beverage and today coffee bars are a hotspot
for the young and old alike.
 î
 
 
ë We perceive positioning of our coffee to our
customers as a pure herbal product that has no
chemical treatments done.
ë The biggest å P being that it is made from using
natural herbal extracts.
ë It is very energy giving and has no side effects.
ë One feels refreshing with a every sip
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{ Our customers will be satisfied with the product and services

we provide for the value of money they pay.
{ Our premium products satisfy high end customers at a nominal
price.
   

ë Our herbal coffee is only available in selective retail
stores and company owned outlets.

ë You can also place your order on our website

www.coffeehours.com
î 
ë Coffee Hour will be placed where masses come for recreation.
ë We will have our outlets in close proximity so that we don͛t
miss on our customers.

î




 
ë Intensive promotional offers have to be made via electronic and
print media. Also number of advertisements should be endorsed by
the celebrities.


 


ë Café Coffee Day

ë Barista
ë Mocha
ë Costa Café
ë Times Café
ë Nescafe bar͛s
 



ë Loyalty Cards For Premium Customer
ë Credit Limit Rs.300/- for Net  urfing
ë åsual Charges Rs.10/- per hour͛s
ë Promotional Offers
ë Priority Privilege
ë Discounts Offer͛s
 § 
‰î‰§

 
Coffee hours will use set of action programmes to achieve
its objectives:-
ë One week before the launch , a major advertisement
campaign will be held integrating print media.
ë Coffee launch will be supported by attractive point-of-sales
displays:-
1.Dangler:-a sign that sways when a consumer walks by it.
2.Wobbler:-a sign that jiggles.
3.Aisle interrupter:-a sign that juts into the aisle from the
shelf.
ͻ On the day of launch of our coffee, free coffee cups will be
offered to customers along with two or three cookies.
ë Pamphlets will be distributed amongst the
customers in order to make them aware of the new
herbal coffee.
ë Initially, combo snack offer will be offered to
customers in order to have a beneficial demand
from the customers & to develop CRM(customer
relationship mgt).
ë Free gifts:-we will give away a card with six spaces
for stickers with each purchase from our outlet
.once the card is full the customer will be given a
free sandwich.
ë One month before the launch it will begin efforts of
educating trade using communication experts.
 

  





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d Abhishek 1.00 crs
d Pallavi 1.50 crs
d Rajat 1.50 crs
d Ridhima 1.50 crs
d Jasia 1.50 crs
d Neeraj 2.00 crs
{ 3

d Bank 10.00 crs
d Friends & relatives 1.00 crs


 



  
Land = 1.5 crore
Infrastructure = 50 lacs
Books, computers and music system = 25 lacs
Parking = 10 lacs
Fixtures & fittings = 25 lacs
Advertising = 35 lacs
Employing staff & salary = 45 lacs
Cutlery = 25 lacs
Transportation = 20 lacs
Machinery = 25 lacs
Operating cost
(raw material, electricity, upkeep, utilities) = 90 lacs

 



details of 1 outlet (5crore) x no. of outlets (4) = 20 crore
 `§
3 ‰‰3 
 .NO. Particulars Amount (Rs.)
1 Investment 20͛crores
2 Return on 1,00,00,000
investment
@5%(Annually)
3 Monthly returns 8,33,333 (approx)

4 Daily  ales 15,900

265 cups (approx)
@Rs.60/-