Business Partners

Neha Joshi 22

Bhavya Nagda

32

Krunal Shah

50

Vani Shah

55

Introduction
The coffee industry of India is the sixth largest producer of coffee in the world. The Indian cafe market is expected to grow at 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.

 The coffee market in India has also witnessed a growth in the demand for outof-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.

 Caf Crunch will capitalize inside the campus 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.

Mission
Our mission is to become a daily necessity for local coffee addicts and to offer our customers the best prepared coffee in the campus at a reasonable price.

Vision
With the growing demand for coffee generation to build a core group of repeat customers and to expand in various areas by catering to different campuses.

Objectives
Caf Crunchs objectives for the first year of operations are:
Become selected as the "Best New Coffee Bar in the area". Turn in profits from the first year of operations. Maintain a 50% gross margin.

Keys to Success
Store design The best coffee preparation techniques

Marketing strategies

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 high gross profit margin and reasonable operating expenses.

 Caf Crunch will operate a 64 square foot coffee bar near to the entrance of building. The identified place can be obtained on rent 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.

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.

Strengths

Weaknesses

Superior product quality

Wide product line with many options available Health benefits of coffee Great customer relationships

Limited financial resources

Limited catchment area

Opportunities
Increased demand for tea and coffee

Threats
Increase in the price of raw material

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

Rising inflation
Canteen food Cold drink outlets

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.

Product Strategy
Two major products
Coffee drinks Tea

The caf offers 5 different flavors of coffee and 2 different flavors of tea.

Caf Mocha Cappucino Coffee A coffee combining double espresso with steamed, frothy milk and decorated with a sprinkle of chocolate powder.

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 on the side.

Lemon Tea Cold Coffee Savour rich and delightful coffee tones iced to perfection

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.

Pricing Strategy
Penetration pricing for all our products The prices of caf Crunch specialty drinks differ based on the customers order.
Espresso Rs.15/Black Coffee Rs. 10/Cold Coffee Rs. 20/Cappuccino Coffee Rs.20/Caf Mocha Rs.22/Lemon Tea Rs. 10/Masala Tea Rs.12/-

Promotional Strategy
Very little money will go into promotion or advertising. Word of mouth is an important way to advertise in a college. Drink of the Day Social Media

Projected Cost Sheet

Particulars Raw Material Milk Sugar Coffee Tea Lemon powder Chocolate Sauce Prime Cost ADD: Administration Expenses Salary Rent Maintenance cost Cost of production ADD: Selling & Distribution Expenses Marketing Cost Cost of sales Total Cost Profit* Sales

Year 1 160000 24000 34000 14400 550 1720 234670 5000 96000 1000 102000

Year 2 192000 26400 35000 15800 550 1892 271642 5500 106000 1000 112500

Year 3 240000 29000 36000 17300 600 2000 324900 6000 118000 1000 125000

1000 1000 337670 118330 456000

1000 1000 385142 190858 576000

1000 1000 450900 341100 792000

SALES FORECASTING Average price

Year 1
19

Year 2
20

Year 3
22

Footfalls

100

120

150

Working Days

24

24

24

Months

10

10

10

Total Sales

456000

576000

792000

 BEP (Break Even Point) of our sales will cross in the first year itself. After deducting the Set up cost of Rs.100000/- & other costs (utensils & appliances) of Rs.17400/-

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

900000 800000 700000 600000 500000 400000 300000 200000 100000 0 Total Cost Sales Profit

Projected growth of Total cost, Sales & Profit

1 337670 456000 118330

2 385142 576000 190858

3 450900 792000 341100