Katrina WhitecavageLauren Libor

Caleb SvendsenBrent Jackson

WHY AUSTRALIA?

Lauren Libor

DESCRIPTION OF AUSTRALIA Located in Pacific Ocean Independent Western democracy 20 Million in population Urbanized- 70%! Major cities: Sydney,

Brisbane, Melbourne Eastern/Southeastern

coasts heavily populated

AUSTRALIA’S INDUSTRIES Agriculture Mining Farming Tourism Manufacturing: 84% of imports

WHAT MAKES AUSTRALIA UNIQUE? Stunning natural beauty One of the cultural centers of the world Prime beaches draw surfers from around

the world Stable, growing economy Strong government High standard of living

Sydney Opera House

WHY KANGAROO KOFFEE? Australia has an established “coffee

culture” New image for Australia Large shopping centers and urban

areas Strong economy: luxury spending is still

common Perfect match for consumers because

of unique sensory experience Appeals to the Australian culture

THE KANGAROO MARKET

Katrina Whitecavage

CUSTOMER ANALYSIS

THE CUSTOMER “The people of Australia believe in

living their life to the fullest.” Australians enjoy a relatively affluent

lifestyle Sixty-seven percent of Australia is

composed of people ages 15 to 64. Sydney is home to four major

universities

THE CUSTOMER Australians consume 2.4 kilograms of coffee per

capita annually

Coffee slang, including “skinny cap” and “babycino”

COFFEE PARTIES! Rock’s Aroma

Festival A festival just to

celebrate coffee in Sydney

Millions come out to try coffee from many vendors

COMPETITION

STARBUCKSStrengths: “finest coffee

experience” $400 million in

revenue internationally known household term

synonymous with the word “coffee.”

partners with Telstra

Weaknesses: mass-produced,

machine-made coffee lack of personalization Starbucks closed 2/3

of their stores, 61 locations

“grab and go” mentality

GLORIA JEAN’SStrengths: “Australia’s premier

provider of specialty coffees… the ultimate coffee experience”

largest coffee company in Australia

friendly, neighborhood feel

respected, established, dynamic, and experienced

Weaknesses: atmosphere is very

homey and country-styled

OTHER COMPETITION Bambini Espresso Bar, in the business

district of Sydney Ibiza Café near the coast

Both have the distinctive advantage of being locally owned and tailored to a specific group of people in Sydney

Established customer loyalty

WHAT MAKES US SPECIAL?

Caleb Svendsen

COMPETITIVE ADVANTAGE “Rustic” Feel, Incorporating “Australian

Outback” Design Elements Modern Amenities Warm Colors A Fountain as the

Centerpiece An “Oasis of

Refreshment”

STRENGTHS AND FEATURES Focus on Espresso

Personalization Options A Variety of Baked Goods for Every Taste

Fresh Muffins, Pastries and Scones Every Day Free Wireless Internet

Partnering with Local ISP Telstra Pleasing Design

Clean and Open, Visually Interesting Relaxing Environment

Comfortable Lounge Areas

PRODUCT STRATEGY Attract Skilled Baristas Gain “Regulars” Differentiation Based On:

Superior Product Convenience Unique Atmosphere

Creating a “Coffee Experience”

RETURN ON INVESTMENT& CONCLUSIONS

Brent Jackson

REVENUES PER ITEM (5 YRS.)

    Year 1 Year 2 Year 3 Year 4 Year 5  

Regular Coffee 25/day 45/day 65/day 70/day 75/day

Hot Cocoa 8/day 14/day 20/day 22/day 25/day

Specialty Drinks 22/day 38/day 74/day 78/day 82/day

Snack Items 25/day 40/day 55/day 65/day 75/day

Gross Profit Per Store $ 131,429 $ 235,443 $ 426,221 $ 459,100 $ 496,300

# of stores 3 3 3 3 3

Total Gross Profit $ 394,286 $ 706,329 $ 1,278,664 $ 1,377,299 $ 1,488,901

OPERATING PROFITS (5 YRS.)

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Profit (AU$) 394,286.25 706,329.00 1,278,663.75 1,377,299.25 1,488,900.75

 

SG&A Expenses

  Employee Wages 385,152 438,795 526,956 542,766 559,050

  Building Rent 102,960 102,960 102,960 118,404 118,404

  Equipment Purchase 36,000

  Depreciation of Equip. 7,140 7,140 7,140 7140 7140

  Sales & Marketing Costs 15,000 15,000 15,000 15,000 15,000

  Total SG&A Expenses 546,252 563,895 652,056 683,310 699,594

 

Operating Profit (loss) $(151,965.75) $142,434.00 $626,607.75 $693,989.25 $789,306.75

CONCLUSIONS Australia is an attractive market for

makers of gourmet coffee drinks There is significant competition, but it

is not insurmountable Australian coffee drinking patterns are

ingrained, and adaptations must be made to suit their preferences

RECOMMENDATIONS Purchase three local coffee shops in Sydney

Australia to establish the Kangaroo name and clientele

Invest approximately AU$50,000 in each of the coffee shops to convert them to Kangaroo style

Engage in advertising to popularize the new locations

Consider future expansions based on the success of the first three locations