SCHOOL OF COMPUTERS AND ELECTRONICS, IPS ACADEMY INDORE

BUSINESS PLAN REPORT ON COFFEE SHOP COFFEE WITH DELIGHT

SUBMITTED TO: MS. GARIMA DAYAL MAM SUBMITTED BY: AJAY PATIL ANURAG PANDEY ASHISH RATHOR MANOJ JAIN MITHUN MALAKAR MOHD. SIDDIQUE NILAY SHRIVASTAVA SANTOSH PATIDAR

Department of MBA, IPS Academy

Executive Summary
The COFFEE WITH DELIGHT is specially a beverage retail shop. CWD uses a system that is new to the beverage shop which provides hot and cold beverages in a convenient way. One Sip, Makes A Better Relationship The Coffee with Delight will focus on two markets: The Daily Customer- someone traveling to/from work, out shopping, delivering goods or services, or just out for a drive. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. The Coffee with Delight will penetrate the commuter and captive consumer markets by deploying Drive-thru facilities in the most logical and accessible locations. CWDs financial structure is partnership business and cash & carry. We also take a loan from bank. CWD start its business with initial capital of Rs. 9,00,000. We also provide some exciting gifts and discount coupons to those customers who will celebrate anniversary. After successful completion of one year we will also open new branches and mobile coffee shop on wheels which is traveling from one area to another according to situation and functions like celebrity shows, college functions, fairs etc. Our future sale strategy is that we will donate some amount of profit to local and national charities like Shiksha Bharti. We also contract with the villagers and giving them financial support to start milk production so that we will get milk at low cost with good quality. Because of this our production cost is getting low. We are using every possible medium for advertisement like outdoor media, print media and electronic media to attract the customers. Our website is www.cwdindore.com

Table of Content
1. Introduction 1.1 Objectives 1.2 Mission 1.3 Key to Success 2. Company Summary 2.1 Partnership firm 2.2 Startup Summary 2.3 Location Facilities 3. Products 3.1 Product Description 3.2 Competitive Comparison 3.3 Sourcing 3.4 Future Products 4. Market Analysis Summary 4.1 Market Segmentation 4.2 Target Market Segment Strategies 4.3 Market needs 4.4 Competition and Buying Products 4.5 Main Competitors 5. Strategies and Implementation Summary 5.1 Value Proposition 5.2 Marketing Strategies 5.3 Pricing Strategies 5.4 Sales Strategies 5.5 Promotion Strategies Inventory Management 6.1 Transportation 1 1 1 1 2 2 2 4 5 5 5 6 6 7 7 7 8 8 8 10 10 10 10 11 11 12 12 13 13 13 14

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7. Management Summary 7.1 Management Team 7.2 Organization Structure 8. Financial Plan

1. Introduction
1.1 Objectives
1. To satisfy the customers. 2. To earn profit . 3. Provide different taste to our customers. 4. Expand business in Indore and 2 or 3 tier cities also.

1.2 Mission
The COFFEE WITH DELIGHT Mission is three-fold, with each being as integral to our success as the next.

Product Mission - Provide customers the finest quality beverage in the most efficient time.

Community Mission - Provide community support through customer involvement. Economic Mission - Operate and grow at a profitable rate through sound economic decisions.

1.3 Keys to Success

There are three keys to success:1. Locations (A) Easily visible. (B) Where traffic is high and convenient to access. 2. The best products are hot and cold coffee, soft drinks, teas, cleanest equipment, consistent flavor. 3. The friendliest servers - cheerful, skilled, professional, articulate. 4. Advertisement - word-of-mouth advertising, promotion. 5. Facilities:- separate room for Corporate meetings along with coffee.

2. Company Summary
The COFFEE WITH DELIGHT is a special coffee shop. CWD provide coffee in a convenient and time-efficient way. CWD provides its customers, freshness by giving cool and joyful environment to come over from fatigue. Special division for corporate meeting.

2.1 Partnership Firm

The COFFEE WITH DELIGHT is a partnership firm. There are eight partners in this firm and each partner invest Rs. 75000 and a loan of Rs. 3,00,000. Every partner is active in the firm. Profit is invest in firm for first six month, and then profit is equally distribute after six month to every partner (according to capital ratio).

2.2 Start-up Summary

The COFFEE WITH DELIGHT start-up expenses and funding are shown in the tables and chart below. The majority of these funds will be used to build the first facility, pay deposits, and provide capital for six months of operating expenses, initial inventory and other one-time expenses. The COFFEE WITH DELIGHT anticipates the need for operating capital for the first few months of operation.

Start-up Requirements # Start-up Expenses Legal Office Equipment Land Lease (5 years) Vehicle Finance (6 months) 10,000 40,000 2,50,000 60,000

Website Development & 20,000 Hosting Identity/Logos/Stationary 12,000 Other 15,000

Total Start-up Expenses 4,07,000 # Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets 50,000 60,000 0 2,90,000 4,00,000

# Liabilities & Capital Liabilities Long-term Liabilities Total Liabilities Capital 3,00,000 3,00,000

Planned Investment Partner 1 Partner 2 Partner 3 Partner 4 Partner 5 Partner 6 Partner 7 Partner 8 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000

Total Planned Investment Total Capital Total Capital and Liabilities

6,00,000 6,00,000 9,00,000

2.3 Locations and Facilities

The COFFEE WITH DELIGHT will open its first venue facility near to Mangal City, Vijay Nagar. This location is chosen because there is a huge crowd of youth and Vijay Nagar is a populated area and many corporate offices are there, we also provide them a business meeting room with peace environment. The demographic and physical requirements for a location are:

Huge population area. Visible from roadway and convenient to access. Many retail shops and malls in that area.

3. Products
The Coffee with Delight provides its customers the finest hot and cold beverages, specializing in specialty coffees and custom blended teas. In addition, CWD will offer select domestic soft drinks. Seasonally, CWD will add beverages such as hot chocolate, frozen coffees, and more.

3.1 Product Description

CWD provides its customers, whether at a Drive-thru facility, the ability to custom order a coffee beverage that will be blended to their exact specifications. CWD appoint two experienced and trained beverage makers from Barista and CCD. Besides coffees, The Coffee with Delight will offer teas, domestic soft drinks, frozen coffee beverages, seasonal specialty drinks. We will also provide herbal tea in morning for morning walk peoples. Through the website and certain locations, CWD will market premium items such as coffee mugs, T-shirts and ball caps, and more.

3.2 Competitive Comparison

The COFFEE WITH DELIGHT considers itself to be a player in the retail coffee house. However, it knows that competition for its products range from soft drinks and different coffee ranges. The Coffee with Delight's primary competition will come from two sources: 1. Coffee Cafe Day and Barista 2. Locally owned and operated cafes. Like Mug21. Two things will make The Coffee with Delight stand out from all its competitors: The Coffee with Delight will be providing products in the most convenient and efficient way by Drive-thru facility. This separates CWD from the competition in that its customers won't need to find a parking place, wait in a long line, jockey for a seat, and clean up the mess left by a previous customer. CWD customers can drive or walk up, order their beverage, receive and pay for the beverage, and drive off.

3.3 Sourcing
The Coffee with Delight purchases its coffees, teas and sugar from Siyaganj Market. CWD also has wholesale purchasing agreements for other products with Major Brands, Coca-Cola, Pepsi, Kurkure, Lays. Milk is purchase from near villagers and local dairies. The Coffee with Delight computer equipment and Internet connectivity is provided by Zenith Networking.

3.4 Future Products

As season changes, The Coffee with Delight will be offering products that will enhance sales and satisfy its customers' desires. During summer months, CWD will subsidize lower hot beverage sales with frozen coffee drinks, as well as soft drinks, and other cold beverages. CWD will also have special beverages during holiday seasons. The Coffee with Delight's primary desire will be to listen to its customers to ascertain what they are looking for most, and provide it.

4. Market Analysis Summary

The Coffee with Delight will focus on two markets: 1. The Daily Commuter - someone traveling to or from work, out shopping, delivering goods or services, or just out for a drive. 2. The Captive Consumer - someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. 3. The corporate professionals - we are tie up with call centers and BPOs for customize service.

4.1 Market Segmentation

The Coffee with Delight will focus on two different market segments: Commuters and Captive Consumers. To access both of these markets, CWD has two different delivery systems. For the commuters, CWD has the Drive-thru facility. The Coffee with Delight greatest concentration will be on commuters heading to or from work, or those out on their lunch break. Captive Consumers would include those who are tethered to a campus environment, or in a restricted entry environment that does not allow free movement to and from. Examples would include corporate campuses where the same time constraints are involved, but regarding meetings and project deadlines, and special events such as fairs or festivals where there is an admission price to enter the gate, but exiting would mean another admission fee, or where refreshments are an integral part of the festivals.

4.2 Target Market Segment Strategy

CWD's target market is the one who wants the economical and on the hand services excellent taste in a choice of beverage. By locating the Drive-Thru in high traffic/high visibility areas, this unique things that the consumer will seek. The Coffee with Delight out and become a regular guest.

1. Youth and Professionals. 2. Family and Couples. 3. Mini Corporate Meetings.

4.3 Market Needs

Indore is developing as a education hub and also it has a future market possibilities for IT industries. Our market is made up of consumers who have busy schedules, a desire for quality, and disposable income. As much as they would like the opportunity to sit in an upscale coffee house and sip a uniquely blended coffee beverage and read the morning paper, they don't have the time. However, they still have the desire for the uniquely blended beverage as they hurry through their busy lives.

4.4 Competition and Buying Patterns

There are four general competitors in The Coffee with Delight drive-thru market. They are the national specialty beverage chains, such as Barista and Cafe Coffee Day, local coffee houses which are already established and a quality product. There is a dramatic distinction among the customers of each of these outlets. They want the ability to "design" their coffee, for work relaxation and read the local paper. It is a relaxing, slow paced environment.

4.5 Main Competitors

When measuring head-to-head, direct competitors, we have found that there are none in this area. The Coffee with Delight will be the first drive-thru coffee house in this area. However, there is still significant competition from traditional coffee houses and other retailers. The Coffee with Delight believes it has a significant competitive advantage over these chains because of the following benefits:

Drive-thru Service Better Customer Service Community Benefit Higher Product Quality Economic Rate
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Local Cafes: The toughest competitor for The Coffee with Delight is the established locally owned cafe. CWD knows the quality and pride that the local cafe has in the product purchase by their customers. Any local cafe has a customer base that is dedicated and highly educated. The competitive edge The Coffee with Delight has on the local cafes is based on the attributes of:

Drive-thru Service Supply Discounts Consistent Menu Quality Product

5. Strategy and Implementation Summary

5.1 Value proposition: We offer the customer various other services which is free of cost like parking facility, so they does not have to find parking place, free net and wifi facility to all customer , so they easily in touch with their friends and office work also. We also provide the beverages and tea facility so the customer can easily place the order, receives high quality product at a cheaper price, and save time and money. We also provide membership for those people who will daily visit our shop, and also provide exiting gift and offers on the basis of draw.

5.2 Marketing strategy:

We display our ads at locations of very high visibility and easy to access. They will be located on high traffic routes (high crowded) and close to shopping facilities in order to catch customers going to or from work, so we easily attract the customer. All the aids are very different and eye-catching, which will be a branding features of its own. We also use the electronic media, print media, and outdoor advertisement. For marketing we also were building relationships with schools, colleges and corporate people. Word of mouth has always proven to be the greatest advertising program. We also use local media: newspaper, local programming like radio channels etc. Broadcasting coverage like MARATHI MELA, MALWA UTSAV etc.

5.3 Pricing Strategy

The pricing will be comparable to the competition; We are providing low cost products comparable to competitors because we have established our milk center in near villages for our daily supply. It helps to reduce the operation cost and maintain supply management. Pricing according to the different types of varieties like cold coffee, hot coffee, hard, soft etc.

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5.4 Sales Strategy

For sales we offer free drink coupons to those customers who have purchased a certain number of cups or something similar, for e.g. If someone want to celebrate his or friends birthday that time we can offer some discount or coupons them. The sales forecast include that after the one year of opening the shop another will be open. After successful completing one year we will launch mobile coffee shop, which is traveling from one place to another, which provide coffee on wheel.

5.5 Promotion Strategy

The long-range goal is to gain enough visibility to leverage the product line into other regions and generate inquiries from potential inventors. To do that, The Coffee with Delight needs:

Public relations services at 10,000 per month for the next year intended to generate awareness of editors and product information insertions, reviews, etc. It is anticipated that the school fundraising program will generate a fair amount of publicity on its own and will, perhaps, minimize or even eliminate the need for a publicist.

Advertising at 10,000 per month concentrating on drive time radio. The Coffee with Delight will experiment with different stations, keeping careful track of results. Tie up with call centers and BPOs, because of this many employee get the information about The Coffee with Delight.

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6. Inventory Management
One of the most important aspects in running a coffee shop is supply inventory management because this is a tool of reducing the production cost. Without a good inventory management system the coffee shop will not able to provide its customer with what they need and wants. So its indeed important for us to invent good inventory management system. Inventory for per day consumption: 1. Milk 2. Sugar 3. Coffee Flavors a. Vanilla b. Chocolate c. Ice Coffee 4. Tea 5. Snacks Items 2 packs 2 packs 1 pack 5 K.g. as per requirement 50 liters 25 K.g.

6.1 Transportation
With the help of good transportation system we are able to minimize our operation cost. Therefore we use local and economical transportation system. For carrying the milk we use local milk vendor, our coffee flavor brought from Bangaluru because this state produce 53% of total production of coffee so we get coffee in an affordable cost.

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7. Management Summary
7.1 Management Team
The hot and cold has selected Mr. Anurag Pandey to perform the duties of chief officer, because he has leadership quality, he has good influencing power so he can easily influence customers. Mr. Manoj Jain has been selected to fulfill the position of marketing and office work because he has good idea about market. Mr. Nilay Shrivastava has been selected for financial transactions, Mr. Ajay Patil and Mr. Mithun Malakar has covered the total sales of shop outside as well as floor level sales. Purchase and inventory is provided to Mr.Rehan Siddique and Mr. Santosh Patidar, because he is well known about the basic material and he has good relation with the village people, which help him to getting the raw material such as milk etc. Mr. Ashish Rathor and Mr. Manoj Jain study about future possibilities and research about new locations and products.

7.2 Organizational Structure

The organization will be a relatively flat one, since the majority of personnel are involved in production and there will be a relatively low headcount in management. There are two functioning groups within the company: Production, Sales and Marketing. Production involves the Customer Service Specialists in our group, who will be manning the Drive-thrus and blending the beverages for the customers. Sales and Marketing will handle Drive-thrus and the Community Contribution program.

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8. Financial Plan
Trading and P&L Account of Coffee with Delight For the year ended 31.12.2011
Particular To Opening Stock To purchase Less Return To Gross Profit Total To Salaries To Telephone Exp. To Electric Exp. To Interest @ 5% To Rent To Office Exp. To Selling Exp. To Dep. On machine On furniture To Net Profit Total 150000 30000 120000 360000 500000 Total 96000 By Gross Profit 4000 By Discount Received 17000 15000 96000 13000 20000 10000 7500 500000 360000 20000 Amout Particular Amount 400000 100000

20000 By Sales by Closing Stock

17500 101500 380000 Total 380000

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References:
Cafe Coffee Day Barista Indian Coffee House Websites: www.scribd.com www.slideshow.com www.nestle.com Guidance: Mr. S.R. Tripathi Sir

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