International Marketing Project on Coffee Café launch in

1

Chetan Panara, Xcellon Institute,Ahmedabad

31-12-2011

y Country: Norway y Capital: Oslo y History:

9th to 11th century was Viking kings period From 1387 Norway was under of Denmark By 1586 Norway become part of Danish Kingdom In 1814 Norway become part of Sweden 1905 Sweden recognize Norwegian freedom y Area: 323802 sq km Natural Resources: y petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites, nickel, fish, timber, hydropower y Environmental issue: water pollution; acid rain damaging forests and adversely affecting lakes2 Chetan Panara, Xcellon Institute,Ahmedabad 31-12-2011

y y y y y

Population:48,85,240 (2010) Population growth:0.329% Major City: Oslo ( 8,75,000) Language: Bokmal ,nynorsk and Sami Religion : church of Norway 85.7%, Pentecostal 1%, Roman Catholic 1%, other Christian 2.4%, Muslim 1.8%, other 8.1% (2004) Death Rate:9.24/1000 (2011 ,July)

y Birth Rate:10.84/1000 y Life expentency:80.2

y Health Expenditure: 9% of GDP y Education Expenditure: 6% of GDP Literacy Rate : 100%Chetan Panara, Xcellon Institute,Ahmedabad 31-12-2011

3

y GDP:$414.5 billion (2010 est.) Growth rate:o.4%(2010) y Budget surplus:11.4%(2010) y Unemployment rate:3.6% y Inflation rate:2.5% y Export:

petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fish y Import: machinery and equipment, chemicals, Coffee, metals, foodstuffs y Per capita income: 72300$ y Main Industries :petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing4 Chetan Panara, Xcellon Institute,Ahmedabad 31-12-2011

y Government type:constitutional monarchy y Legal system:mixed legal system of civil, common, and

customary law; Supreme Court can advise on legislative acts y Head of government: Prime Minister Jens STOLTENBERG (since 17 October 2005) y Cabinet: State Council appointed by the monarch with the approval of parliament y Main political party:Christian People's Party, centre party, Labour party

5


31-12-2011

y Company: Caf Coffee Day y Product: Coffee Caf y Reason for selecting caf coffee shop: y There are many reason for selecting this product y 1: There no big competitor in the market y 2: Norwegian coffee consumption is very high y 3:Norway import coffee from India y 4:Ability to pay high price

6


31-12-2011

y y y y y y y y y y y

Product Wide range of products appealing to Indian coffee and snack lovers Indian taste Eatables adapted to Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc. Indian taste along with classic coffee Merchandising includes funky stuff like t-shirts, caps etc. People People at C.C.D. believe that People are hired for what they know but fired for how they behave Motivation and personal skill are laid emphasis upon. Process Order process - Based on services (Customer read menu and order). Flexible delivery process (Customer can go directly, take the order placed or order delivered on his table).

7


31-12-2011

y Sales Promotion y Offer coupons, Gifts vouchers, Caf Citizen Cards y Caf Beat- an in-house magazine. y Tie-up with World Space & Micro sense to provide satellite connectivity y Physical Evidence y Logo, Colours, Images y RED signifies leadership, vitality and passion . The GREEN signifies coffee

8

growing heritage and the coffee plantations that they own. WHITE SWIRL signifies purity of purpose, invigorating properties of growing coffee. y Signifies that Caf Coffee Day pioneered the caf concept in India way back in 1996.C.C.D. will like to own the word caf in the minds of its customers. y Dcor & Architecture y Literature New Logo Chetan Panara, Xcellon Institute,Ahmedabad y Dress Code 31-12-2011

y USP of brand is its considered a highly affordable brand. y Excellent brand name and brand visibility y Huge young crowd as target group y Excellent ambience and service y Over 1000 outlets and 300,000 visitors per day y It produces/grows the coffee it serves hence reducing the cost y Products of extremely good quality and taste. y Its a youth oriented brand , hence huge potential since 40 %

population is below 20

y Variety and wide choice y good hospitalityChetan Panara, Xcellon Institute,Ahmedabad

9

31-12-2011

y Annually consumption:40,000 tones y Per capita consumption 10.7 kg per year in 2010 y Key supplier of coffee:, Peru, Guatemala, Brazil and Papua,

New Guinea, India. East Timor, and Bolivia y Key factor of coffee in Norway Quality of cup Consistent and reliable supply Price relative to conventional coffee Awareness of consumers about these coffees10 Chetan Panara, Xcellon Institute,Ahmedabad 31-12-2011

y There are three major player in Norwegian market y 1:Friele y 2:coop caf y 3: Tim Wendelboe y These three major player have approximately 50 to 55%

Market share in Norwegian coffee market y Friele is Domestic player and Coop and Tim Wendelboe are y international player y 45 to 50% market share is cover by small player in Norwegian market11 Chetan Panara, Xcellon Institute,Ahmedabad 31-12-2011

y Friele: y Friele is the largest Coffee shop company in Norwegian y y y y y

market Company was started in 1799 Friele coffee brands have a total national market share of 35% Friele have main focus in two city: Oslo and Bergen Friele import coffee from seven country Company goal is to create the perfect "coffee moment" for as many as possible31-12-2011

12


y Coop caf y It was came Norwegian market in 1953 y subsidiary of Coop Industrier y Coop caf establish his caf in only Oslo y Coop caf import coffee from Brazil y Tim Wendelboe y Started his business in 2007 from Oslo y The goal of Tim Wendelboe is to be among the best coffee

roasteries and espresso bars in the world.13 Chetan Panara, Xcellon Institute,Ahmedabad 31-12-2011

y Target Market

Generation x, y and Young boomers Means Age from 14 to 34. Segmentation: Student who go to collage every day Teenagers Young couple

y y y y

y Positioning: y Main three city of Norway

14


31-12-2011

y IMC plan y Focus on primary target y Word-of-mouth advertising y offering a loyalty card targeted at the primary target with the y y y y

intent to increase sales. Increase top of mind recognition by 0% of 20% Sponsorship of local philanthropic events To increase Top of Mind in the minds of both the primary and secondary targets. Ads in newspaper and Magazine31-12-2011

15


y Population y Demography and geography y Political and legal environment y Investment opportunities y Competitor analysis y Company analysis y Marketing mix of caf coffee day y Coffee caf in Norway

16


31-12-2011

y y y y y y y y y y

Entry Strategy: Launch CCDs own coffee shop in Norwegian market Raw material will export from India Land will take on lease 4ps: Product: Mixed taste Indian and Norwegian ccds existing product which is suitable in Norwegian market Norwegian product which is used by Friele ,coop caf and other major player menu contains brewed coffee, espresso traditions and favourites, cold-hot beverages, coffee alternatives, frappuccinos, and the sale of whole beans

17


31-12-2011

y Place : y Main focus in three city : Oslo ,Bergen and Stavanger y 5 caf in each city y a place where people can come together y Store will placed near crowed area

Promotion : y Advertising in Newspaper and Magazine y The company spends very little on advertising y word-of-mouth promotion y Sponsorship in local events18 Chetan Panara, Xcellon Institute,Ahmedabad 31-12-2011

2012 Sales $584,000 Operating expenses $243,730 Net Profit $99,308

2013

2014

$642,400 $273,194 $106,530

$706,640 $290,782 $124,491

Total liability and capital Net profit Margin %19

$270,30317.00%

$369,92116.58%

$490,04017.62%31-12-2011


20


31-12-2011

THANK YOU! Happy new year

21


31-12-2011

Documents

International Marketing Project on Coffee Café launch in