MARKETING PLAN

FOR

Presented by:- Group 8

14MBA1099 M. BHARATHRAM

14MBA1105 BHALA PRASANNA S

14MBA1107 VINAYAK BANAKAR

14MBA1110 SAI KEERTHI KETHINENI

14MBA1113 SANTHI KRISHNA

14MBA1115 AKILAN R

14MBA1116 NANDITA K

Why Healthy Coffee

Healthy Coffee is made of roasted wheat grains and tastes like normal coffee

Coffee made of coffee beans has below disadvantages

• It contains drug caffeine and hence is addictive

• Creates gastric problems if consumed more than limit

• Creates sleeplessness

• Cannot be consumed by certain people due to medical reasons

Executive Summary

• Healthy coffee manufacturing

unit would be set up in less

developed state in eastern India

where there is ample wheat

production

• Provide coffee powder to hotels

and restaurants

• Boon to people who would not

have dreamed of having more

coffee due to medical reasons

• Create café chain that provide a

unique forum for communication

and entertainment through the

medium of the Internet.

Market Summary : Market Needs

• Convenience :The area of coffee shop is convenient for targeted customer because it is near to college and Corporate locations

• Customer services :Servicing the customer with superior attention

• Competitive pricing :The price of coffee is bit more than a traditional competitor like Nescafe. But far less than coffee culture and café coffee day.

• Selection: A creative choice of food and drink and a well-constructed entertainment environment.

• Accessibility: The patron will gain access to the Healthy Coffee shop with minimal waits and long business hours.

Market Trends

• Health conscious consumer

• Food quality: Preference for higher-quality

ingredients

• Quality conversation: Intellectual

conversations can be had in coffee shop

settings

Market Growth

• Coffee – a sunrise industry

• Growing young population and

promotion of coffee culture

• Coffee Segmentation:

Robusta and Arabica Beans

Different growth culture

Pure and blended coffee

Cheaper products like chicory, vanilla, mocha

Filter coffee and instant coffee

43% share of filter coffee

Branded Coffee Network

of 1450 cafes across India

185 cafes

64 cafes

172 cafes

191 cafes

STRENGTHS

• Healthy product made with wheat and no preservatives are added.

• Ethical and environmental practices.

• Cost of production will be less.

• It can be used by people belonging to all ages.

• Comparatively lower cost of coffee.

• Increasing health consciousness.

• Unlike coffee from cocoa beans healthy coffee is not a

drug and people will not get addicted to it.

WEAKNESS

• Brand visibility of healthy coffee is less.

• People are not much aware of this product.

OPPORTUNITY

• Fastest growing industries in Asia

• Tie ups with other companies for promotion

• India is a huge and potential market.

• Young population.

• Growing middle class and increasing purchasing power of people

THREAT

• India has a tea based culture.

• Visiting a cafe frequently is not an Indian habit.

• Other coffee brand companies attracting customers with their advertisement.

• Presence of other Hangout locations

• Unorganized market

SWOT

Competitor Analysis

CCD

54% Barista

26%

costa coffee

14%

Local brands

6%

Market Share

CCD

68%

Starbucks

12%

Gloria

Jeans

3%

Barista

17%

Share of mind

Sample size – 150+

Product Offering

Critical Issues:-

Threat of new entrants - Medium

• Presence of several established brands/hangout places/fast food joints

• High Investments for Expansion.

• Government policies promoting FDI .

Buyer’s Po er - High

• Low switching cost

• Variety of products

• Variety of services

Profitability - High

• Increase Market Size and Brand Awareness by Vending Machines and Kiosks in public places.

• To Increase the use of Technology Portfolio.

Marketing Strategy: Mission

To e the est healthy coffee chain by offering a

world class coffee experience

at afforda le pri es.

Objectives

Marketing Objectives

• Develop brand awareness through a steady, month on month increase of new customers.

• Develop an increase in sales while achieving a status quo state or decrease in marketing expenses. Grow total sales by 10% annually.

• Diversify the service offering to insulate the business against fluctuations in any one component of the revenue stream.

• Build customer loyalty through educational programs.

• Build the Healthy Coffee brand to the point where it becomes a household word in the area.

Financial Objectives

• A double digit growth rate for each future year.

• Reduce the variable costs through efficiency gains.

• Reach profitability within the first year.

• Major chunk of customers falls within the age

group of 16 to 30 which accounts for 78% of the

overall percentage.

• The group comprises of mainly college going

students and young working professionals

Target

Audience

Target

Audience

• There is a definite skew towards singles: 66%

singles, 27% married & 7% others.

27%

66%

7%

Married Single others

•Students and working professionals

•Health conscious customers

•Customers who cannot drink coffee

containing caffeine due to medical

reasons

•2000 outlets in 200 cities

•Cafe in locations where business

can be generated.

•Tie ups with Educational

institutions and Corporate.

• Third Place" away from the home and

college or workplace for the young and

the young at heart.

•Fun Place for people to interact.

•Good quality coffee that would not spoil

health

Main consumer base in the age

group of 16-30 years.

TARGETING

POSITIONING DIFFERENTIATION

SEGMENTATION

S-T-P-D

DISTRIBUTION STARATEGY

60%

30%

10%

Growth Target

Tier I Tier II Tier III

• Network strength of over 2000 cafes in 200 cities

and towns with average footfalls of 200 per café per

day

• Distribution Strategy: • Single unit at eastern India with capacity of

70,000 tones per annum

• Packaging industry: • Serving hot coffee 210ml and cold coffee 350ml

• Regional Distribution: • Targeting expansion in smaller towns

• New café formats in metros –

• Lounge

• Square

300

150

50

Action

Programs:-

Advertising

• Branding based on projecting coffee

as a health drink which can be

consumed across age groups.

• Social media advertisement

• Word of mouth

• Subtle advertising in movies and TV

serials

• Print and social media

• Sponsoring college events and giving

out discount coupons

• Tie up with different corporates

• Presence of outlets in all areas

Alter ate Ad ertisi g Mediu s…

Media Partner Advertising Medium

Teli Brahma

Café Chronicle

DSN screens

Radiocity

405

721

168

334

Wi-Fi / Bluetooth Downloads

Café Newspaper

Television Screens

Café Radio

Budget allocation

Social media campaign focusing on health aspect

Sponsoring events and contests

TV screens to advertize content at Cafes

Bra d a paig Coffee Re olutio

Cup Branding

Vouchers / Scratch Cards / Discount Coupons

Branding options

Product

•Wide range

•Frappe – Summer

•Cappuccino – Winter

•Merchandizing

Price

•Range from Rs20 to R50

•Over the years only minor changes in pricing policy

Place

•Coffee powder distribution in all hotels and restaurants

•Strategically located outlets

•Coffee machines in college and corporate canteens

•Kiosks in offices

Promotion

•Channel [V] s Get Gorgeous Contest

•Tie up with youth brands

•Sales Promotion

•Social media web pages and ads

Marketing Strategy: Marketing Mix

Income and Expenses Forecast (in million)

Description 2015 2016 2017 2018

1.0 Income 16 22 30 45

2.0 Operating Expenses

2.1 Salary and Wages 5 5.3 5.6 6

2.2 Kiosks and other facilities 2 3.7 6 10

2.3 Transportation and utility 2 2.5 4 5

2.4 Marketing Expenses 3 4 5 8

Total Expenses 12 15.5 20.6 28

Operating Profit 4 6.5 9.6 17

Financials Break even analysis

CONTROLS

• The purpose of expression marketing plan is

to serve as guide for the business. The

following area will be monitoring to gauge

performance:

Revenue: monthly and annual

Expenses : monthly and annual

Customer satisfaction

References

http://www.casestudyinc.com/coffee-day-

brand-strategy-india

http://www.pr-inside.com/india-food-and-

drink-report-q-r2164244.htm

http://en.wikipedia.org/wiki/Marketing

http://www.cafecoffeeday.com/

http://www.barista.co.in/users/index.aspx