coffee ecvm marketing research project

8/2/2019 Coffee ECVM Marketing Research Project

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Marketing ResearchProject

On

Coffee& ECVMs

BySantosh SMMS B 108


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Product Profile

Coffee Coffee is A Beverage procured from

Coffee Trees that are cultivated in coffee

fields known as Beans Belt. The Beans Belt is The Area of the Earth

located near the Equator.

Coffee Cultivation requires Moderatetemperature, Steady Sunshine, Rich DarkSoil known as Black Soil.


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Source: IMRB.org Updated on August 2008 3

Top 10 Coffee Producers

(World) Country Units Produced / Annum

1. Brazil 22.5 Mn. Mt. Tonnes

2. Columbia 19.7 Mn. Mt. Tonnes

3. Indonesia 16.5 Mn. Mt. Tonnes

4. India 14.6 Mn. Mt. Tonnes

5. Vietnam 12.4 Mn. Mt. Tonnes

6. Mexico 10.6 Mn. Mt. Tonnes

7. France 8.2 Mn. Mt. Tonnes 8. U.S.A 6.5 Mn. Mt. Tonnes

9. Russia 4.2 Mn. Mt. Tonnes

10. England 2.6 Mn. Mt. Tonnes


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Major Coffee Producers

World Map

1. Top 4 Coffee Countries account for

65% of Total Coffee Production in the

World.

2. The Worlds Largest Coffee Consumeris U.S.A @ 61 % I.e 61 Mn. Mt. Tns

3. U.S.A Produces only 6.5 % of WorldsCoffee Production.


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Source: ICB (Coffee Board Of India) 5

Sourcing Of Indian Coffee

Powder Indian Coffee Powder is sourced from Southern Parts Of India such

as:

1) Coorg District, Karnataka State

2) Chikmangalur, Karnataka State

3) Hassan Town, Karnataka

4) Mangalore City, Karnataka

5) Chennai City, Tamil Nadu

In 2006/07, Indias Total Coffee Production was calculated as

12.6 Million Metric Tonnes. (Ranked 5th

in World List) In 2007/08, This Figure was calculated as 14.6 Million Metric

Tonnes. (Ranked 4th in World List upto 3Q)

Total Coffee Production = 91,25,000 Mn.Mt.Tns


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Demand /SupplyAnalysis

0

10

20

30

40

50

60

70

2007 2008 2009 2010 2011

Supply

Demand

Total Capacity


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Electronic Coffee Vending

Machines Aim: To Create, Build and Launch ECVMs in

association with Leading Coffee Companies such

as Nescafe

HUL

Godrej

Brio

Starbucks Ronicus

PrincipleBOOT:Build,Operate,Own,Transfer


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Existing ACVMS

MRP = Rs. 16,500/-


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Existing ACVM

MRP = Rs. 19,500 /-


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Alternative ACVM

Cost Of Machine = Rs. 18,800 /-


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New ECVM Prototype


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Marketing Strategy

The Objective of building this ECVM is to provide CoffeeCompanies with an Unbranded Device that can be

customized as per Buyers requirement

The Plan is to sell this ECVM to Firms such as Nescafe,HUL, Barista etc and enable them to brand theirequipment with their own Names, Logos, Ads & Images

I. Benefits to Buyer are: 1. Installment of CVM at Least CostII. 2. Branding of Machine as per Buyer

III. 3. Supply of Essentials for 8 Months


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Plan Of Action

1. Manufacture minimum 10 ECVMS and Sell each

unit at Rs. 9,500/- to Leading Coffee Producers

2. Assist Buyer in Branding Fresh Unit as perCompanys Style. e.g.: An ECVM Unit sold to

Nescafe will have only Nescafes Trademark, Ads

& Logos.

3. Install Units at Locations such as Banks, Post

Offices, Railway Stations, Telephone Exchanges,

Bus Depots, Multiplex Theatres, Shopping Malls

etc.


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Locations for ECVM

Banks

Shopping Malls

Multiplex Cinemas

Post Offices

Railway Stations

Bus Depots

Telephone Exchanges


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Source: National Geographic ResearchSurveys 2007

15

Projected Sales / Unit

Sales Of Units in U.S.A (General M)


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Pricing Strategies

Nescafe ACVM is presentlypriced at Rs. 16,500/- (10KGs)

Ronicus ECVM is priced atRs. 18,800/- (20 KGs)

Starbucks BRIO CVM ispriced at Rs. 19,500/- (25KGs)

Proposed ECVM ispresently priced at Rs.9,500/- (10 KGs)

New ECVM is priced at Rs.16,500/- (20 KGs)

Planned ECVM is priced atRs. 18,870/- (27 KGs)

1. ECVM Installation Charges = Rs. 4,000/-

2. Additional Units will be installed for Buyer at 50% of First Cost


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Conclusion & Recommendations

1. Target Market: Targetmarket for ECVM will beBanks, Malls, CollegeCanteens, CinemaTheatres & Post Offices

2. Segmentation: Will be doneon basis of Size of ECVMrequired by Buyer such as10 Kgs and 15+ Kgs

3. Positioning: Should be done insuch a way that ECVMs willreplace Conventional CVMs as

well as Manual Labor4. Pricing: Economic pricing to

ensure Market Penetration andProduct Development

Pricing

SegmentationPositioning

T. Market

coffee ecvm marketing research project

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