View
13
Download
1
Category
Preview:
DESCRIPTION
feasibility study for coffee shop
Citation preview
MARKET ASPECT
CHAPTER 1
MARKET STUDY
I. MARKET DESCRIPTION
Foss Coffee will focus its marketing activities on reaching the University students and
faculty, people working in offices located close to the coffee shop and on sophisticated
teenagers. Since coffee consumption is universal across different income categories
and proximity to the University Belt campuses will provide access to the targeted
customer audience. It will also cater to people who want to get their daily cup of great-
tasting coffee. Such customers vary in ages, the location of our proposed business is at
Upper ground floor of SM City Manila near Pizza Hut. The lease contract has an option
of renewal for three years at a fixed rate that Foss Coffee will execute depending on the
financial strength of its business, although the location is close to the University campus
means that most of its clientele will be college students and faculty members. Our
market study shows that these are discerning customers that gravitate towards better
tasting coffee. Furthermore, a lot of college students are pulling off all nighters for their
exams and they need caffeine to keep them awake and this will provide a unique
possibility for building a loyal client base.
II. DEMAND
The demand is based on the population of the university students, faculty members
and office workers in the vicinity of Ermita, Manila in the National Capital Region.
This is for a five (5) year period beginning 2010 to 2014.
YEAR HISTORICAL POPULATION2011 20000
2012 30000
2013 40000
2014 50000
2015 60000
There is no available data about the demand of coffee services for the past
years. Therefore, the proponents used assume what the demand was for last five years.
The total projected demand for the past next three years is presented below.
YEAR INCREASE (DECREASE) PROJECTED DEMAND2016 5900 25900
2017 4100 34100
2018 5600 45600
COMPUTATION:
METHOD USED
Arithmetic Straight-line Yc= a + Yi-1
Where
A = (Yn-Yc) / (N-1) = (2800-1000)/(5-1) = 450
Yc= Initial Value (first year)
Yn= Final Value (last year)
N= Number of years
Yi= Value for the year past
2016 2017 20180
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
DEMAND
DEMAND
III. SUPPLY
Currently, there exist 33 competitors in the vicinity of Ermita, Manila. They have
maximum 15,000 customers per year.
SUPPLY FIGURES DATA
YEAR NUMBER OF COFFEE SHOPS AND STALLS
2011 10
2012 16
2013 22
2014 28
2015 33
Computation
Method Used
Arithmetic Straight-line Yc= a + Yi-1
Where
A = (Yn-Yc) / (N-1) = (33-10)/(5-1) = 5.75
Yc= Initial Value (first year)
Yn= Final Value (last year)
N= Number of years
Yi= Value for the year past
PROJECTED SUPPLY FIGURES
YEAR INCREASE (DECREASE)
TOTAL PROJECTED
SUPPLY
2016 4.6 14.6
2017 4.6 20.6
2018 4.6 26.6
2016 2017 20180
5
10
15
20
25
30
SUPPLY ANALYSIS
SUPPLY ANALYSIS
IV. DEMAND SUPPLY ANALYSIS
Based on statistical data gathered it is proven that there is still a number of demands
for unsatisfied clients of which even in the inclusion of that company the demand is
high. Therefore it is very evident that the current demand cannot be satisfied by the
present supply.
YEAR DEMAND SUPPLY D-S GAP
PERCENT
UNSATISFIED
(Past)
2011 1360 14.6 990 1.0
2012 1860 20.6 14 0.99
2013 2360 26.6 1978 .989
2014 2860 32.6 2472 .98888
2015 3160 37.6 2767 .9882143
(Projected)
2016 1360 14.6 1345.4 .9892647
2017 1860 20.6 1893.4 .9889247
2018 2360 26.6 2333.4 .9887288
V. GENERAL MARKETING PRACTICES
Foss Coffee will seek accreditation from Department of Trade and Industry, Bureau of
Internal Revenue for taxes, Intellectual Property Office of the Philippines for the
trademark. Foss Coffee will also get updates and reviews and other useful information
for better business operation. Foss Coffee will follow all the rules and regulations and
will comply with the standards set by these organizations and agencies to ensure the
proper operation of the business. As to operation and security, the Foss Coffee will
secure its necessary requirements such as Mayor’s permit, sanitary permit and building
permit.
Foss Coffee will focus its marketing activities on reaching the University students and
faculty, people working in offices located close to the university belt and on
sophisticated teenagers.
Our market research shows that these are the customer groups that are most likely to
buy gourmet coffee products. Since gourmet coffee consumption is universal across
different income categories and mostly depends on the proximity to the University
campus will provide access to the targeted customer audience. Foss Coffee's marketing
strategy will be concentrate at getting customers to spend more and come back more
often. Establishing a loyal customer base is of a paramount importance since such
customer core will not only generate most of the sales but also will provide favourable
referrals.
The competition comes from several different sources: Coffee Shops and Tea shops however, none of them have the mission to aspire and give the customers a unique blend of coffee drinks that customer can truly enjoy, affordability and product consistencies.
Foss Coffee will consider some factors in quoting the price. Hence, we will assure to
quote the customer at a reasonable price. In order to build up its client base, Foss
Coffee will use banners and fliers and utilize customer referrals. At the same time,
customer retention programs will be used to make sure the customers are coming back
and spending more at the coffee stall.
VI. PROPOSED MARKETING PROGRAM
Coffee consumption has shown a steady 2.5% growth rate in the Philippines over the
last decade. In 1994, total sales of coffee were approximately $7.5 billion with iced
coffee representing 33% (or $2.5 billion) of that. The retail coffee industry is flourishing
in the National Capital Region. The local climate, with a long rainy season, is very
conducive for the consumption of hot non-alcoholic beverages. At the same time, hot
dry summers drive people into cafes to order iced drinks. Further, coffee has really
become a part of the lifestyle in the Philippines. Its discerning coffee drinkers are in
favour of well-prepared, strong coffee-based beverages, which they can consume
immediately. The general trend toward quality among Filipino consumers definitely
plays an important role in the recent growth in iced coffee. Philippine coffee
consumption has shown steady growth, with gourmet coffee having the strongest
growth. Coffee drinkers in the Pacific are among the most demanding ones.
Additionally, such factors as desire for small indulgencies, for something more exotic
and unique provide a good selling opportunity for coffee stalls. Foss Coffee will strive to
build a loyal customer base by offering a great tasting coffee located close to the
bustling University belt in Manila.
Foss Coffee will appeal to the university students residing within the vicinity of the
university belt, the faculty members, office workers who desire a sophisticated great
tasting coffee and other teenagers who want to experience a unique taste of coffee.
Members of this market dine out frequently, approximately three times or more this
week. The market segment is made up of students between ages of 15 and 45.
Foss Coffee baristas will handle the sales transactions. To speed up the customer
service, at least two employees will be servicing clients--while one employee will be
preparing the customer's order. Foss Coffee will use banners and fliers, utilize customer
referrals. At the same time, customer retention programs will be used to make sure the
customers are coming back and spending more at the coffee bar.
Foss Coffee continues to innovate its product mix to capture more of the market this
component of the product mix focuses on what the business offers to customers. At
present, the following are the main categories of Foss Coffee products: Ice blended
Coffee with 9 different choices of flavour and Ice Blended Cream with 8 different
choices of flavour. This product mix is a result of business innovation. The company
also has an ongoing product innovation process that aims to offer new products to
attract and keep more customers. The company offers most of its products through
Foss Coffee cart stall. This component of the marketing mix determines the venues at
which customers can access the products.
The coffees are priced to give us an attractive margin while at the same time offering
value to the consumer. Foss Coffee does not utilize coupons and discounts because we
believe that most valuable customer demographic of daily coffee consumers is not
influence by discount programs or coupons.
Foss Coffee will promotes its products mainly through advertising. This component of
the marketing mix refers to the communication strategies used to disseminate
information about the firm and its products. Foss Coffee will advertise by giving flyers,
appear regularly on popular social media sites, such as facebook compared to
traditional print advertising, this cost effective tactic will allow the business to reach
prospects in a highly targeted way. Foss Coffee will also develop a simple website
which will provide basic information about the business and the menu. Foss coffee will
also promote by giving flyers within the vicinity of the University Campuses.
The product will undergo channels of distribution. It will be in three level; Manufacturer –
Retailer – Consumer. Our product ingredients and other supplies will be delivered by
the manufacturer to us (Retailer) then we will then sell this to our customers.
VII. Projected Sales
Our coffees are affordable with a price Php 55 pesos for all kinds of flavours of your
choice .The following are the Main categories of our product. On the upper part stated in
the picture is Ice blended coffee with 9 different flavours and each of these coffee
beverages is based on a shot of espresso which is prepared in the espresso machine
by forcing heated water through ground coffee at high pressure. Such espresso shots
are combined with steamed milk and/or other additives like cocoa, caramel, etc., to
prepare the espresso-based beverages and in the lower part of the picture are Ice
blended cream with 8 different flavours filled with whip cream and a minimum shot of
caffeine.
Sales Projection
PRODUCT YEAR 1
DESCRIPTION UNIT UNIT PRIC
E
Total QUANTITIES TO BE
SOLD
UNIT PRIC
E
SALES REVENUE
Espresso 1500 25 ₱ 37,500.00 1000 55 ₱ 55,000.00
Dark Mocha 2300 25 ₱ 57,500.00 1800 55 ₱ 99,000.00
Java Chips 2000 25 ₱ 50,000.00 2000 55 ₱ 110,000.00
Caramel Macchiato
2300 25 ₱ 57,500.00 2000 55 ₱ 110,000.00
White Choco Oreo
2000 25 ₱ 50,000.00 1800 55 ₱ 99,000.00
Coffee Jelly 2800 25 ₱ 70,000.00 1500 55 ₱ 82,500.00
Chocolate Mint 1000 25 ₱ 25,000.00 500 55 ₱ 27,500.00
Cookies and Cream
1800 25 ₱ 45,000.00 1500 55 ₱ 82,500.00
Black Forest 2200 25 ₱ 55,000.00 2000 55 ₱ 110,000.00
Chocolate 2200 25 ₱ 55,000.00 2000 55 ₱ 110,000.00
Vanilla 1200 25 ₱ 30,000.00 1000 55 ₱ 55,000.00
Vanilla Oreo 2100 25 ₱ 52,500.00 2000 55 ₱ 110,000.00
Chocolate Cream Chips
2500 25 ₱ 62,500.00 2200 55 ₱ 121,000.00
Strawberry and Cream
2200 25 ₱ 55,000.00 2000 55 ₱ 110,000.00
Blueberries and Cream
2200 25 ₱ 55,000.00 2000 55 ₱ 110,000.00
Mixberries and Cream
800 25 ₱ 20,000.00 600 55 ₱ 33,000.00
TOTAL 31100 400 ₱ 777,500.00 25900 880 ₱ 1,424,500.00
YEAR 2
DESCRIPTION UNIT UNIT PRIC
E
TOTAL QUANTITIES TO
BE SOLD
UNIT PRIC
E
SALES REVENUE
Espresso2500
25 ₱ 62,500.00
2300 55 ₱ 126,500.00
Dark Mocha2500
25 ₱ 62,500.00
2300 55 ₱ 126,500.00
Java Chips2500
25 ₱ 62,500.00
2200 55 ₱ 121,000.00
Caramel Macchiato 2500
25 ₱ 62,500.00
2300 55 ₱ 126,500.00
White Choco Oreo 2200
25 ₱ 55,000.00
2000 55 ₱ 110,000.00
Coffee Jelly2300
25 ₱ 57,500.00
2000 55 ₱ 110,000.00
Chocolate Mint2000
25 ₱ 50,000.00
1800 55 ₱ 99,000.00
Cookies and Cream 2500
25 ₱ 62,500.00
2000 55 ₱ 110,000.00
Black Forest2800
25 ₱ 70,000.00
2500 55 ₱ 137,500.00
Chocolate2800
25 ₱ 70,000.00
2500 55 ₱ 137,500.00
Vanilla2000
25 ₱ 50,000.00
1500 55 ₱ 82,500.00
Vanilla Oreo2500
25 ₱ 62,500.00
2300 55 ₱ 126,500.00
Chocolate Cream Chips 2300
25 ₱ 57,500.00
2100 55 ₱ 115,500.00
Strawberry and Cream 2500
25 ₱ 62,500.00
2200 55 ₱ 121,000.00
Blueberries and Cream 2800
25 ₱ 70,000.00
2200 55 ₱ 121,000.00
Mixberries and Cream 2000
25 ₱ 50,000.00
1900 55 ₱ 104,500.00
TOTAL 38700 ₱ 967,500.00
34100 ₱1,875,500.00
PRODUCT YEAR 3DESCRIPTIO
NUNIT UNIT
PRICE
TOTAL QUANTITIES TO BE
SOLD
UNIT PRIC
E
SALES REVENUE
Espresso3300
25 ₱ 82,500.00
3000 55 ₱ 165,000.00
Dark Mocha3300
25 ₱ 82,500.00
3000 55 ₱ 165,000.00
Java Chips3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Caramel Macchiato 3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
White Choco Oreo 3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Coffee Jelly3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Chocolate Mint 3000
25 ₱ 75,000.00
2900 55 ₱ 159,500.00
Cookies and Cream 3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Black Forest3000
25 ₱ 75,000.00
2900 55 ₱ 159,500.00
Chocolate3300
25 ₱ 82,500.00
3000 55 ₱ 165,000.00
Vanilla3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Vanilla Oreo3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Chocolate Cream Chips
3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Strawberry and Cream 3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Blueberries and Cream 3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
Mixberries and Cream 3000
25 ₱ 75,000.00
2800 55 ₱ 154,000.00
TOTAL 48900
₱1,222,500.00
45600 ₱2,508,000.00
Our sales forecast assumes no change in cost of prices, which is reasonable
assumption for the last few years. Proximity to the University campus will dictate certain
sales seasonality with revenues slightly decreasing during the school vacation periods.
The chart and table below outline our projected sales forecast for the next three years.
YEAR 1 YEAR 2 YEAR 30
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
YEAR 3YEAR 2YEAR 1
VIII. SYSTEM AND FORMS DESIGN
Some marketing forms and records that will be used are Sales Invoice; this
document contains the date of sale and information – quantity, description and price
– about the goods sold. Delivery Receipt; this document is the record of the
franchisor and delivered supplies and ingredients to our stall this contains the date
of the delivery and information – quantity, unit, unit price and amount – of the goods
delivered to us. Receiving Receipt; this document is our record
SALES INVOICE FORM
FOSS COFFEETIN 143-777-888 VAT
NO. 0613SOLD TO:DATE OF PURCHASE:
QUANTITY UNIT AMOUNT
RECEIVING RECEIPT FORM
FOSS COFFEEReceive from:Date:
RECEIVING RECEIPTQUANTITY UNIT UNIT PRICE AMOUNT
DELIVERY RECEIPT FORM:
Recommended