cafe crunch

Upload: krunal-shah

Post on 03-Apr-2018

230 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/28/2019 Cafe Crunch

    1/25

  • 7/28/2019 Cafe Crunch

    2/25

    Business Partners

    Neha Joshi 22

    Bhavya Nagda 32

    Krunal Shah 50

    Vani Shah 55

  • 7/28/2019 Cafe Crunch

    3/25

    Introduction The coffee industry of India is the sixth

    largest producer of coffee in the world.

    The Indian cafe market is expected to growat a CAGR of about 13-14% over the next

    five years.

    Ten years ago, coffee was fuddy, duddy and

    tea was zingy. But now, its the other way

    round.

  • 7/28/2019 Cafe Crunch

    4/25

    The coffee market in India has alsowitnessed a growth in the demand for out-

    of-home consumption of coffee.

    Coffee shop is the flourishing business in

    todays era.

    Coffee or Tea bar is a daily necessity for

    local coffee addicts.

  • 7/28/2019 Cafe Crunch

    5/25

    Caf Crunch will capitalize inside thecampus of Shah & Anchor Kutchhi

    Engineering College.

    The culture will be to offer its customers

    the best prepared variants of coffee/tea in

    the college campus.

  • 7/28/2019 Cafe Crunch

    6/25

    MissionOur mission is to become a daily necessity forlocal coffee addicts and to offer our customers

    the best prepared coffee in the campus at a

    reasonable price.

  • 7/28/2019 Cafe Crunch

    7/25

    VisionWith the growing demand for coffeegeneration to build a core group of repeat

    customers and to expand in various areas by

    catering to different campuses.

  • 7/28/2019 Cafe Crunch

    8/25

    Objectives

    Caf Crunchs objectives for the first year

    of operations are:

    Become selected as the "Best New Coffee Bar inthe area".

    Turn in profits from the first year of operations.

    Maintain a 50% gross margin.

  • 7/28/2019 Cafe Crunch

    9/25

    Keys to SuccessStore design

    The best coffee preparation techniques

    Marketing strategies

  • 7/28/2019 Cafe Crunch

    10/25

    Business Description The company will be operating on

    partnership basis with four partners.

    Caf Crunch will serve students, teachers,laboratory staff and visitors of the campus.

    The quality and cleanliness will be the

    distinctive feature of the venture.

    Caf Crunch will strive to maintain a highgross profit margin and reasonable

    operating expenses.

  • 7/28/2019 Cafe Crunch

    11/25

    Caf Crunch will operate a 64 square footcoffee bar near to the entrance of building.

    The identified place can be obtained onrent basis for a period of 11 months

    contract.

    The rent to be paid for the provided space

    would be INR 96000/- annually and can be

    paid in 2 installments.

  • 7/28/2019 Cafe Crunch

    12/25

    Sourcing Caf Crunch would be purchasing its raw

    materials from Mysore Concerns and from

    METRO located at Bhandup.

    Milk would be acquired from a local

    vendor at daily basis.

    The serving materials would be purchased

    in bulk from Arihant Plastics, Masjid

    Bandar.

  • 7/28/2019 Cafe Crunch

    13/25

    Strengths

    Superior product quality

    Wide product line with many options

    available

    Health benefits of coffee

    Great customer relationships

    Weaknesses

    Limited financial resources

    Limited catchment area

    Opportunities

    Increased demand for tea and coffee

    Increased demand for healthy food and

    fresh juices

    Many colleges in town and surrounding

    areas

    Adding new variants of coffee and tea

    Adding new food products like Maggi,

    sandwich and pastries

    Threats

    Increase in the price of raw material

    Rising inflation

    Canteen food

    Cold drink outlets

  • 7/28/2019 Cafe Crunch

    14/25

    Target Market The current target market of Caf Crunch

    is

    College students

    Professors

    The staff at the SAKEC campus

    The goal of the caf is to increase the

    amount of coffee drinks sold.

    Cafe Crunch target market is the 16 to 60

    year old female and male.

  • 7/28/2019 Cafe Crunch

    15/25

    Product Strategy Two major products

    Coffee drinks

    Tea

    The caf offers 5 different flavors of coffee

    and 2 different flavors of tea.

  • 7/28/2019 Cafe Crunch

    16/25

    Cappucino Coffee

    A coffee combining double espresso with

    steamed, frothy milk and decorated with a

    sprinkle of chocolate powder.

    Caf Mocha

    Espresso with chocolate, topped with steamed

    frothed milk and a sprinkling of chocolate.

    Espresso

    The original Italian-strong and dark small but

    packs a punch. The Godfather of coffee.

    Black Coffee

    Ebony and Ivory served hot. A double shot of

    espresso with hot water, served with milk onthe side.

  • 7/28/2019 Cafe Crunch

    17/25

    Cold Coffee

    Savour rich and delightful coffee tones iced to

    perfection

    Lemon Tea

    Refreshing black tea, with a wicked twist of

    lemon. An instant refresher.

    Tea

    A strong cup. Tea with Indian spices for that special 'kick'. Served garma-garam.

  • 7/28/2019 Cafe Crunch

    18/25

    Pricing Strategy Penetration pricing for all our products

    The prices of caf Crunch specialty drinks

    differ based on the customers order.

    Espresso Rs.15/- Cappuccino Coffee Rs.20/-

    Black Coffee Rs. 10/- Caf Mocha Rs.22/-

    Cold Coffee Rs. 20/- Lemon Tea Rs. 10/-

    Masala Tea Rs.12/-

  • 7/28/2019 Cafe Crunch

    19/25

    Promotional Strategy Very little money will go into promotion or

    advertising.

    Word of mouth is an important way toadvertise in a college.

    Drink of the Day

    Social Media

  • 7/28/2019 Cafe Crunch

    20/25

    Projected Cost Sheet

    Particulars Year 1 Year 2 Year 3

  • 7/28/2019 Cafe Crunch

    21/25

    Particulars Year 1 Year 2 Year 3

    Raw Material

    Milk 160000 192000 240000

    Sugar 24000 26400 29000

    Coffee 34000 35000 36000

    Tea 14400 15800 17300

    Lemon powder 550 550 600

    Chocolate Sauce 1720 1892 2000

    Prime Cost 234670 271642 324900

    ADD: Administration Expenses

    Salary 5000 5500 6000

    Rent 96000 106000 118000

    Maintenance cost 1000 1000 1000

    Cost of production 102000 112500 125000

    ADD: Selling & DistributionExpenses

    Marketing Cost 1000 1000 1000

    Cost of sales 1000 1000 1000

    Total Cost 337670 385142 450900

    Profit* 118330 190858 341100Sales 456000 576000 792000

    SALES

  • 7/28/2019 Cafe Crunch

    22/25

    SALES

    FORECASTING Year 1 Year 2 Year 3

    Average price 19 20 22

    Footfalls 100 120 150

    Working Days 24 24 24

    Months 10 10 10

    Total Sales 456000 576000 792000

  • 7/28/2019 Cafe Crunch

    23/25

    BEP (Break Even Point) of our sales willcross in the first year itself.

    After deducting the Set up cost ofRs.100000/- & other costs (utensils &

    appliances) of Rs.17400/-

    *Profit for the first year comes to Rs. 930/-.

    P j d h f T l S l & P fi

  • 7/28/2019 Cafe Crunch

    24/25

    1 2 3

    Total Cost 337670 385142 450900

    Sales 456000 576000 792000

    Profit 118330 190858 341100

    0

    100000

    200000

    300000

    400000

    500000

    600000

    700000

    800000

    900000Projected growth of Total cost, Sales & Profit

  • 7/28/2019 Cafe Crunch

    25/25