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:Rohini C.P G.K Lajpat Nagar
Vision & Mission statements
Vision: 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. Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable value.
³Current marketing situation´..
Coffee Market in Delhi & NCR
Cafe culture has grown by leaps and bounds in the capital regions and cafes have become a hotspot for the young and old alike. Coffee Bars have become more of lifestyle in Delhi as we are heading towards development. Tremendous growth in the industry in the last 2 years Consumers are open to trying out new concepts & brands. Annual spend on eating out (organized + unorganized segments) Rs.35,000 crore
Why only Delhi & NCR??
According to the current market situation Coffee hours should target only Delhi s market. 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. One of the major factors being that experimenting with the ongoing trend involves a lot of risk and this might show up in the company s marginal growth
Second reason being, coffee hours is a new company and lacks a brand identity. 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. Opening outlets in a metro like Delhi will help coffee hours to generate that much needed hype about the concept of herbal coffee. It also helps in better understanding about the potential of the product, level of competition. 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.
³Opportunity and Issue Analysis´
Proposition to the customers
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. 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.
Coffee Culture ± An Opportunity
Coffee - 2nd most popular drink after tea across India. Widespread acceptability amongst the population. Easy to manage. Good return on investment Relatively lower costs. High Profit Margins. Easy availability of manpower across the country.
USP of Coffee Hours
Coffee with Low Fat Content Coffee with Low Calories Salad s & Sandwiches for Health Conscious People. Music and computer café with library. Live performance of various up-coming bands in weekends.
Threats Increase in coffee bar market Growing no. of in house coffee bar
Within these geographical markets it should not only focus on person s 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.
We perceive positioning of our coffee to our customers as a pure herbal product that has no chemical treatments done. The biggest USP being that it is made from using natural herbal extracts. It is very energy giving and has no side effects. One feels refreshing with a every sip
Leafy material, packed in modern carton packs of 25 grams, 50 grams and 100 grams. The 25 grams pack will be trial packs, which will be discontinued in the sixth month of operation. The product has to be brewed like in boiling water , preferable consumed without adding milk, sugar can be added for taste. The idea is not only to serve the coffee but to provide complementary snacks with it. To serve low calorie sandwiches and salads to go with coffee. loyal customers are charged at minimum on special events Various attracting services of net, music and books. Herbal coffee is also available in cups i.e according to the size. Ex. Regular, small and the prices vary accordingly.
Available in packets: Rs.49 for 25 grams Rs. 95 for 50 grams Rs. 180 for 100 grams Available in cups a/c to size: Small cup - Rs 45/ Regular cup - Rs 60/ Large cup - Rs 75/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.
Our herbal coffee is only available in selective retail stores and company owned outlets. You can also place your order on our website www.coffeehours.com
Coffee Hour will be placed where masses come for recreation. We will have our outlets in close proximity so that we don t miss on our customers.
Intensive promotional offers have to be made via electronic and print media. Also number of advertisements should be endorsed by the celebrities.
Café Coffee Day Barista Mocha Costa Café Times Café Nescafe bar s
Coffee & Technology
Loyalty Cards For Premium Customer Credit Limit Rs.300/- for Net Surfing Usual Charges Rs.10/- per hour s Promotional Offers Priority Privilege Discounts Offer s
ACTION PROGRAMMES Coffee hours will use set of action programmes to achieve its objectives: One week before the launch , a major advertisement campaign will be held integrating print media. 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. On the day of launch of our coffee, free coffee cups will be offered to customers along with two or three cookies.
Pamphlets will be distributed amongst the customers in order to make them aware of the new herbal coffee. 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). 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. One month before the launch it will begin efforts of educating trade using communication experts.
Tools used for promotion
I. II. III. IV. V. Free gifts Discount for loyal customers Coupons Combo snack offer Advertisement
Note: Advertisement will be done via. print media.
Mainly focus on creating brand awareness and a distinctive image that has emphasis on exclusivity.
LAUNCH PROGRAM «
On the day of the launch of HERBAL COFFEE, free cups of will be provided to customer along with two or three cookies. This will apply to all outlets. One week before the launch of coffee, advertisement will be done via. Internet and pamphlets.
Sources of funds:
Partner s fund:
Abhishek Pallavi Rajat Ridhima Jasia Neeraj 1.00 crs 1.50 crs 1.50 crs 1.50 crs 1.50 crs 2.00 crs