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Cofee Machines
1. The following is the market survey for
launching fully automatic coffee machines.
2. The company (name undisclosed) is a trading
company dealing in all kind coffee machine
from automatic to semi automatic.The semi
automatic machines like the ones used in ‘Café
day’, ‘Barista’ produces large numbers a day and
are for dedicated cafes.These machine cost in
excess of Rs 2 lacs.The company wants to
introduce small machines below Rs 1 lac/ unit for
restaurants , or small ‘live and dine’ places.
3. The beans are ground at the instant the
coffee is brewed to maintain the rich aroma
of coffee.The cost /unit of coffee of such
process is equal to or less than instant coffee
but the rate card is higher than instant coffee
or premix coffee on account of the value it
adds to coffee
4. The process of coffee making requires the coffee
beans to be ground and coffee extracted at a
precise temperature and pressure.These
machines follow this process of extraction
(preserving rich aroma and taste) unlike premix
machines, which already have coffee powder and
milk powder and just require hot water to make
coffee.The places selected were not dedicated
cafes but were restaurants or small “live and dine
“places
5. A sample size of 100 restaurants and ‘live and
dine’ were selected.The survey included small
guest houses, small hotels and restaurants and
bars in prime locations like Greater Kailash,
Connaught Place, Noida.The survey did not
include dedicated coffee houses and star hotels
as they use larger coffee machines.
Team size-2 people
6. 1. If the outlet is serving coffee?
2. If not serving coffee, the reason for being not
interested (open ended)
3. How many cups of coffee are served in a day?
4. The type of machine being used.
5. Do the person in charge knows the art of
making authentic Italian coffee
7. Out of 100 sample size,18 said that they were not
interested in serving coffee.When asked for
reasons.
7 did not reply.
5 said that the customer buys time while sipping
coffee thus reducing per table billing/hour.
6 said they do not have customers asking for
coffee and if they do one a while they serve
instant coffee
8. 82 serving coffee
42 were serving between 50-100 cups/day
2 were serving below 100 cups/day
38 were serving below 50 cups/ day
9. Out of the 42 selling above 50-100 cups of
coffee/day.Out of this 42
3 had taken machine on rent
6 were using automatic coffee machines
26 were using premix machines
7 were serving instant coffee
10. Out of sample size of 100
Only 45 were aware about the art of making
coffee
55 were not aware about the art of making
coffee.
Note: Just serving cofee does not make one
know the art of making coffee
11. 18 % of the sample size was not interested in serving coffee.(not the
target customers)
Out of those who are serving coffee or interested in serving coffee (82)
(the target customer), 26 were using premix machines. 26 percent of the
sample size uses premix machines. Extrapolating, 26 percent of all
restaurants in Delhi NCR uses premix machine.
Out of those (42) selling 50-100 cups a day, 7 sold instant coffee.These
can also be strongest prospect for buying automatic coffee machines .
Out of those (42) selling 50-100 cups a day, 3 percent had taken machine
on rent.These can also be strong prospect for buying automatic coffee
machines as they can be easily explained the commercial advantage of
buying the machine over renting it.
Note:The figures are low in low sample size so extrapolation to the
entire universe would give error. So a conservative figure needs to be
taken.
45 percent of the total sample size is not aware about the art of making
coffee.
12. The target customers are the 36 selling 50-100 cups
and not already using (6) fully automatic coffee
machines.
The breakup of the target customers based on priority
(from top to below).
1. 7 percent of those who sell 50 to 100 cups and
who sell instant coffee.
2. 3 percent of those who sell between 50 to 100
cups/day and have hired the machine on rent.
3. 26 percent of those who sell between 50 to 100
cups/day and those who use premix machines
13. 45 % of the sample size is not aware about the
art of making coffee and its commercial
advantages.Thus, lot of effort has to go in
creating awareness.
Only 6% of total sample size use fully automatic
coffee machines.Thus, the low presence does
not allow word of mouth publicity.Therefore,
physical demo of machines at such outlets
would be helpful in making the customer realize
about how it can add value (both commercial
and in terms of quality).
14. 45 percent of the respondents are not aware about the art of making and
serving coffee. So informative awareness campaign needs to be
undertaken to educate about bean to cup coffee machine (wherein to
preserve the aroma the coffee beans are grounded at the time the coffee
is prepared, unlike instant coffee.This awareness can be created through
the following:
1. To make live demonstration of the machine at hospitality fair like
‘Aaahar’, ‘host’ etc. anybody interested can operate such machines
and also taste coffee thus delivered.This would bring out the ease
of operation of such machines and the quality thereof.
2. Promotional material including emails, pamphlets need to be sent
to small and medium restaurants managers and owners
mentioning the preposition of live demonstration of the machines.
3. Launching a website dedicated to coffee making to captivate the
interest of restaurant owners and other aspiring restaurant and
café owners.
15. Service
Service is an important aspect of selling.The response time to a complain of
breakdown of machine is an important differentiation between machines. Since
there are few automatic machines in the market, it goes without saying that the
service of all the other trading companies cannot be up to the mark as it would
not be cost effective for them to stock spare parts and have dedicated
technicians.Therefore, initial sale of stipulated machines during stipulated period
is essential for long term service impact. For example depending upon the cost
analysis it is decided to sell 200 units in the first month.The profits, initially can
be immediately ploughed back to maintain spares and having dedicated
technician.
The priority of the target customers (ranking) would help in selling the machines
fast initially. So, 7 percent of the customers who server between 50-100 cups a
day and who serve instant coffee should be immediately targeted as such
customers are migrating to premix coffee machines in the immediate run. If such
customers are shown the ease of making coffee from such machines and the
commercial advantage of serving coffee (price per cup is always be higher than
premix and instant coffee while the cost per cup is lesser than the two) there is no
reason why the will not be interested in such machines.