This document discusses Kopi Luwak, an expensive coffee produced in Indonesia. Kopi Luwak is made from partially digested coffee cherries eaten and excreted by the Asian palm civet. To produce the coffee, civets are fed ripe coffee cherries and their feces containing undigested coffee beans are collected. A cup of Kopi Luwak can cost $40 and half a kilo bag sells for $100-400 due to its unusual production process. The document also outlines the company's business model, marketing strategies involving social media and subscriptions, and cost analysis methods like variable costs, fixed costs, and break-even point.

1. KOPI LUWAK
MBA 1 – Business Strategy
Teacher: Professor BEN DOGLEY

2. Group Member
Realized by:
• EL-AYOUBI Mohamad
• LOUBANI Mohamad

3. Background
• It is called kopi luwak, it is produced in Indonesia and
taking it is a real luxury in the United States.
• Famous for its strong smell and a flavor reminiscent of
caramel or chocolate that drives coffee lovers crazy, the
exotic kopi luwak is not only amazing for its price.
• Also because of its complicated and unusual production
method, which explains its value and makes it a rare in
the coffee shops field.

4. Overview
• Often referred to as the best coffee in the world, Kopi
Luwak is also among the most expensive coffee in the
world. The coffee is renown due to its unusual production
method, where it is made of partially digested coffee
cherries from Asian palm civets – small mammals that look
like a cross between a cap and a racoon.
• Thus, to obtain the coffee (kopi for the locals), the civet
should be fed with the ripe fruit of the coffee plantations and
then their faeces should be collected to get the already
digested but still whole grains from them.

5. Pricing
Ready to be consumed: a cup of kopi luwak can cost 40 dollars and the bag
of half a kilo gets sold between 100 and 400 dollars

6. Marketing
To process and distribute its coffee capsules into the french market Kopi Luwak works together with:
 coffee beans traders,
 cups manufacturers and
 Packaging companies.
Passionate and devoted coffee lovers who own a coffee capsule machine can order the coffee capsules
anytime via the website.
The product is processed and delivered exactly when the customer need it). Customers can customize
their own coffees based on the extensive Real Indonesian coffee variety provided.
Kopi Luwak sells and advertises its products via social media. The communication with customers is
done via emails and website. Customer can choose monthly payment (subscription) or payment upon
order.

7.  The Company’s Business model
A business model is a company's plan for generating revenues and profits
The Business Model Canvas (BMC)
The Business Model Canvas was proposed by Alexander Osterwalder.
The BMC shows a representation of how a company delivers, creates and /or captures
added value.
Contrary to traditional business plans, BMC focusses on what drives a business. BMC is
also much easier to fine-tune as it can be drafted on a single page.
Additionally, it provides managers with a swift and adequate way of understanding the
business model, mission and vision of a company since all information is accessibly
provided on one page.

8.  BMC –The Business Model Canvas

9.  Cost analysis
˗ Variable cost (VC)
˗ Fixed cost (FC)
˗ Marginal Cost MC)
˗ Break-even analysis (BEP)
˗ Opportunity Cost (OC)
Total Fixed Costs + Total Variable Costs = Total Costs
Profit!
Break-even Point:
Total Costs = Total
Revenues
loss
Total Fixed
Costs
(don’t change
with units sold)
Total Variable
Costs (change
at a constant
rate)
Total Costs
Total
Revenues
0
Break-even Volume in Units
Units
Break-even Volume
in Dollars
The Break-even Point is
where…
TotalCosts = Total
Revenues

10. THANK YOU