Target Market Demographic Description Nothing outsmarts the smell of Arabic coffee, whether in the office, at home, or in a coffee shop. Perhaps people who have tasted this finest coffee are likely to spend more just to have a cup of this hot beverage. The target market for this product will be divided into four different categories: · Drip coffee drinkers · Coffee shop lovers · Specialty coffee drinkers · Whole bean buyers Drip coffee Drinkers Our main target market will consist mainly of the young population and business people who wish to have a cup of coffee for their caffeine kick. In addition, the coffee shop will strive to go after the upscale market to entice both the upper and middle class coffee drinkers who have the money to spend on a daily cup of coffee. The age of these coffee drinkers will range from 18 to 24 years who drink coffee daily, as well as those between the ages of 25 to 39 who indulge in a daily cup. Coffee Shop Lovers The other target market that the shop will hope to serve is the coffee shop lovers. These are the people who love to spend their time at cafes and shops where regular cup of coffee and specialty drinks are available alongside an inviting atmosphere. The age of these drinkers ranges from 18 to 24 years, and most of them are affluent and well-educated, with 65% of them likely to have a yearly income of about $100,000. Specialty coffee drinkers In order to sell specialty coffee drinks, we will make sure to provide cappuccinos, espressos and lattes. The target market for these specialty coffee drinks is people who like additional ingredients in their coffee and would be willing to part with an extra dollar to get what they want. We hope that this market will continue to grow as buyers become more educated on how these specialty drinks are made. Whole Bean Buyers Another target market that the shop will aim to reach out to includes those people who would want to purchase whole bean coffee to make in their offices, or at their homes. These people are likely to ask us to grind the beans for them at the shop, or do it themselves for the freshest coffee cups possible. These buyers often buy whole beans in different flavors, so offering the finest mix of Arabic coffee with Hail, regular Arabic coffee, as well as Arabic coffee with Zofran, will be key to meeting their varying tastes. Geographic Description The main target markets are the people who live in, or near Riyadh City in Saudi Arabia. The shop will make an effort almost every month to tour different learning institutions and offices to promote Arabic coffee options. The presence of an internet connection in the whole of Riyadh city will make it possible to advertise these coffee products through the internet. In addition, the partnership between Drive Thru shop and El Farouki Center, will allow the shop to take advantage of the company’s advertising space to reach out to a wider geographical area. Lifestyle and Psychographic Description The local pop ...

1. Target Market
Demographic Description
Nothing outsmarts the smell of Arabic coffee, whether in the
office, at home, or in a coffee shop. Perhaps people who have
tasted this finest coffee are likely to spend more just to have a
cup of this hot beverage. The target market for this product will
be divided into four different categories:
· Drip coffee drinkers
· Coffee shop lovers
· Specialty coffee drinkers
· Whole bean buyers
Drip coffee Drinkers
Our main target market will consist mainly of the young
population and business people who wish to have a cup of
coffee for their caffeine kick. In addition, the coffee shop will
strive to go after the upscale market to entice both the upper
and middle class coffee drinkers who have the money to spend
on a daily cup of coffee. The age of these coffee drinkers will
range from 18 to 24 years who drink coffee daily, as well as
those between the ages of 25 to 39 who indulge in a daily cup.
Coffee Shop Lovers
The other target market that the shop will hope to serve is the
coffee shop lovers. These are the people who love to spend their
time at cafes and shops where regular cup of coffee and
specialty drinks are available alongside an inviting atmosphere.
The age of these drinkers ranges from 18 to 24 years, and most
of them are affluent and well-educated, with 65% of them likely
to have a yearly income of about $100,000.
Specialty coffee drinkers
In order to sell specialty coffee drinks, we will make sure to
provide cappuccinos, espressos and lattes. The target market for
these specialty coffee drinks is people who like additional
ingredients in their coffee and would be willing to part with an

2. extra dollar to get what they want. We hope that this market
will continue to grow as buyers become more educated on how
these specialty drinks are made.
Whole Bean Buyers
Another target market that the shop will aim to reach out to
includes those people who would want to purchase whole bean
coffee to make in their offices, or at their homes. These people
are likely to ask us to grind the beans for them at the shop, or
do it themselves for the freshest coffee cups possible. These
buyers often buy whole beans in different flavors, so offering
the finest mix of Arabic coffee with Hail, regular Arabic coffee,
as well as Arabic coffee with Zofran, will be key to meeting
their varying tastes.
Geographic Description
The main target markets are the people who live in, or near
Riyadh City in Saudi Arabia. The shop will make an effort
almost every month to tour different learning institutions and
offices to promote Arabic coffee options. The presence of an
internet connection in the whole of Riyadh city will make it
possible to advertise these coffee products through the internet.
In addition, the partnership between Drive Thru shop and El
Farouki Center, will allow the shop to take advantage of the
company’s advertising space to reach out to a wider
geographical area.
Lifestyle and Psychographic Description
The local population within Saudi Arabia has continued to adopt
a western way of life. The rise in internet technology has also
made many people to subscribe to a number of social
networking sites, such as Facebook, Twitter, and Instagram. In
fact, this has exposed many youths in the country to
international dietary habits, fashions, trends and lifestyles.
Since many youths have the strongest desire of emulating the
western culture, this trend has been reflected in their everyday
life, be it in their eating habits, fashion, or beauty. Perhaps the
European style cafes, as well as the American-style dining
restaurants has been on the rise, and the country’s fast growing

3. young population, which includes women, have been seen
socializing in groups. The young population has also been
known to consume a lot of coffee, in spite of the fact that tea is
the national favorite. Therefore, once Drive Thru Coffee Shop is
established, it will always find ready market among this young
population.
Purchasing Patterns Description
The young population usually has restricted budgets and will be
keen on finding the cheapest coffee in town. Therefore, in an
effort to attract this young population, the shop will offer the
finest Arabic coffee at an affordable price. On the other hand,
the business people are likely to be influenced by their
awareness of specialty coffee, and would not mind parting with
an extra dollar to get what they want. Therefore, the shop will
offer specialty coffee drinks, such as cappuccinos, espressos
and lattes to this group of people.
Buying and Sensitivity Description
The young population is mostly sensitive to changes in prices,
and providing special offers to them will help in attracting their
attention. Therefore, we will strive to build Drive Thru shop in
a central location where the young population is large in
number to increase our sales. On the other hand, business
people are likely to go for quality and will be attracted on how
the coffee products are packaged, such as gold lining package
design. Therefore, the shop will produce the finest coffee that
guarantees 100% quality. This coffee will also be packaged
using different designs.
Market size and Trends
Drive Thru Coffee Shop has the greatest market potential
considering that Saudi Arabia is the biggest consumer of coffee
in the whole world. This is according to the study conducted by
Dr. Firdaus at King Abdul Aziz University in Jeddah. The
annual estimated quantities of coffee, which are imported for
production of Arabic coffee, stands at 10,000 tons. The study
further revealed that the per capita coffee consumption stands at
3kg annually. The same study also show that the Saudi citizens

4. spend over SR1 billion annually in preparing coffee and its
components. The number of coffee shops within the country has
continued to increase at a rate of over 10% annually. Therefore,
it is apparent that the shop has the greatest market potential.
INDUSTRY ANALYSIS
1
INDUSTRY ANALYSIS
2
Industry Analysis
30 April 2015

5. Executive Summary
Company Description:
Drive Thru Coffee Shop will be located in Riyadh city in Saudi
Arabia. The shop will provide Arabic coffee, which is rare to
find in shops that provide Arabic coffee in the country. Perhaps,
the reason for this is because preparing Arabic coffee takes 25-
30 minutes , (2008). However, if the shop provides large
quantities of Arabic coffee, then customers would be able to
collect them without having to leave their cars. This type of
coffee will also be prepared in a way that a customer would just
drink. They only need to add flavor such as, Arabic coffee with
1) Cardamom Arabic: Hal, Hail (Ginger Family), 2) Zofran. The
price starts from 9 to 20 RS depends on the flavor and size and
the type of dessert.
Mission Statement
It will always be the shop’s mission to produce the best Arabic
coffee. We will be at the forefront in listening to feedback that
will come from our customers, franchise owners, and staff. We
will always ensure that we have invested our resources, energy,
and time in coming up with innovative and new offerings
Abrahams, (2009). We will also continue to focus on the

6. success of both our franchises and employees by blending
excellence, providing quality products, and setting professional
standards. We will be a reputable and progressive company that
will play a crucial role in our communities while giving support
to our employees and franchisees. We will also provide a
friendly yet unique and welcoming experience for employees
and patrons alike.
Industry Trends and analysis
Saudi Arabia is the biggest consumer of coffee in the whole
world, since it is a country where coffee is used to signify the
Arabic hospitality and generosity, as well as the drink that is
irreplaceable.
A study that Dr. Firdaus Bukhari conducted in King Abdul Aziz
University in Jeddah reveals that Saudi Arabia is the biggest
consumer of coffee worldwide. The annual estimated quantities
of coffee, which are imported for production of Arabic coffee,
stands at 10,000 tons.
The study further revealed that the per capita coffee
consumption stands at 3kg annually. The same study also shows
that the Saudi citizens spend over SR1 billion annually in
preparing coffee and its components. The number of coffee
shops within the country has continued to increase at a rate of
over 10% annually. Therefore, these statistics are enough proof
that Drive Thru Coffee Shop has the greatest market potential.
The young Population
The local population within Saudi Arabia has continued to adopt
a western way of life. In their article, Euromonitor
International, (2014) notes that the rise in internet technology
has also made many people to subscribe to a number of social
networking sites, such as Facebook, Twitter, and Instagram. In
fact, this has exposed many youths in the country to
international dietary habits, fashions, trends and lifestyles.
Since many youths have the strongest desire of emulating the
western culture, this trend has been reflected in their everyday
life, be it in their eating habits, fashion, or beauty. Perhaps the
European style cafes, as well as the American-style dining

7. restaurants has been on the rise, and the country’s fast growing
young population, which includes women, have been seen
socializing in groups. The young population has also been
known to consume a lot of coffee, in spite of the fact that tea is
the national favorite. Therefore, once Drive Thru Coffee Shop is
established, it will always find ready market among this young
population.
Competitive Landscape
Drive Thru Coffee Shop will be aiming to be the leading coffee
provider in the year with more than 20% value share. The
company will also be keen on having a strong following among
the traditional coffee consumers, which includes Arabic coffee.
Since the Bedouins and traditional Arabs normally consume this
type of coffee in large quantities because they consider it as
premium priced, the shop will have a strong value share
Euromonitor International, (2015). The shop will ensure that
this coffee is available not only through our coffee shops, but
also through the main grocery stores, a situation that will help
us in maintaining the leading position. However, we also hope
to face stiff competition from the growing influence of instant
coffee, as well as the aggressiveness from companies, which
includes Nestle from South Africa.
Prospects
The increase in the young population within the country will
give a strong boost to coffee. Therefore, Drive Thru Coffee
Shop, spurred by the rise of western influence on the young
population, will always aim to increase its activities to meet the
increasing demand for Arabic coffee. This means that the shop
will not only increase its marketing activities, but also focus
more on innovative product developments, which results in
production of quality coffee. In addition, the rapid pace in
infrastructure development within the retail industry will also
help in boosting sales.
Vulnerability to Economic Factors
Technological factors
The coffee industry in Saudi Arabia constantly comes up with

8. quality coffee, which makes it difficult for Drive Thru Coffee
Shop to assume the largest market share. The production of
good quality coffee by the key industry players, such as Costa
Coffee, and Starbucks, has made these shops to command the
largest market share. For example, Costa coffee is a leader
specialist coffee shop in terms of value sales, with a percentage
share of 22%. On the other hand, Starbucks takes the second
spot, with a percentage share of 20%. These two companies
have employed the latest technology in production of quality
coffee, and this has made them accelerate their presence faster
as compared to other brands.
Risk Analysis
The consumption of coffee in Saudi Arabia is very high since
the product is considered as the daily lifestyle. As a result, the
risks associated with trading in coffee is very low, which means
that Drive Thru Coffee Shop will have a higher prospects of
success once it is ready to start business. The market potential
is also expected to grow, which is advantageous for the coffee
shop.
Regulatory issues
In order to import coffee to Saudi Arabia, an individual is
required to produce a manufacturer’s ingredients certificate.
This certificate provides a brief description of all the products
that are imported and since Drive Thru Coffee Shop will be
importing its coffee it would be required to produce this
certificate.
Barriers to Entry
Saudi Arabia is often seen as the most promising and emerging
market worldwide. However, this potential market has relatively
high barriers to entry, which would make it hard for Drive Thru
Coffee Shop to gain access to the market. The oligopolistic
firms that operate within the coffee industry, coupled with
government regulations always make it hard for new investors
to gain entry into the market.

9. Bibliography
Abrahams, J. (2009). The mission statement book: 301
corporate mission statements from America's top companies.
Berkeley, Calif: Ten Speed Press.
Euromonitor International. Cafés/Bars in Saudi Arabia. (2014,
October 10). Retrieved May 4, 2015, from
http://www.euromonitor.com/cafes-bars-in-saudi-arabia/report
Euromonitor International. Coffee in Saudi Arabia. (2015, April
7). Retrieved May 4, 2015, from
http://www.euromonitor.com/coffee-in-saudi-arabia/report
John, C. (2008). Coffee and tea industries and the flavor field.
New York: Spice Mill Pub. Co..
Competition
Competitive Position
Drive Thru Coffee Shop will be the only coffee shop that offers
Arabic coffee, which is rare to find in shops that provide Arabic
coffee in the country. In fact, this Arabic coffee is one of the
rarest products that guarantee 100% consistency in matters
quality. Many customers will be forced to walk past several
other competitors to get hold of Arabic Coffee, which is why no
one would ever need the most expensive location to get their
ready-made coffee. All the same, there are a number of coffee
products that local companies provide, which can be seen as a
trad-off for the coffee shop, even though they are mainly seen
as generic competitors.
The companies that will have offer competition products
include:
· Retail stores selling probiotic drinks
· Retail stores offering sparkling water

10. · Companies that specialize in processing of tea
· Other products that offer caffeine just like coffee, such as
Yerba Mate.
· Retail stores that deals in distribution of soft drinks, such as
hot apple cider.
Even though El Farouki Center will be offering the same
products as Drive Thru Coffee shop, it would not be seen as a
major competitor since there is a possibility that the shop will
reach an agreement with it on how to price their products, so
that the shop may earn significant profits. By forging a good
working relationship with El Farouki Center, the shop will be in
a position of growing its market share. In addition, the shop
will take advantage of the company’s advertising space to reach
out to new customers. Currently, the company is prides itself as
the best provider of traditional coffee, such as Turkish and
Arabic.
Competitive edge
Drive Thru Coffee Shop will aim to be the leading coffee
provider in the year with more than 20% value share. The
company will also be keen on having a strong following among
the traditional coffee consumers, which includes Arabic coffee.
Since the Bedouins and traditional Arabs normally consume this
type of coffee in large quantities because they consider it as
premium priced, the shop will have a strong value share. The
shop will ensure that this coffee is available not only through
our coffee shops, but also through the main grocery stores, a
situation that will help us in maintaining the leading position.
Market share Distribution
There are quite a number of companies that offer the same
products as Drive Thru Shop, even though their target market is
different from the shop’s target market, which targets the young
population and business people who wish to have a cup of
coffee for their caffeine kick rather. We have made a projection
that the shop will have about 20% of the market share at the end
of the year. The shop will strive to sell as much coffee as do
convenience stores and fast foods combined. By catering to this

11. well-defined audience, we will be in a position to gain this large
market share.
Future competition and Barriers to entry
Saudi Arabia is often seen as the most promising and emerging
market worldwide. However, this potential market has relatively
high barriers to entry, which would make it hard for other
competing firms to gain access to the market. The partnership
that Drive Thru shop will forge with El Farouki Center, coupled
with government regulations will always make it hard for new
investors to gain entry into the market. However, the shop must
take an initiative of being a low cost leader in the region so
everyone may be able to afford its products.
Strategic Position and Risk Assessment
The main objective of Drive Thru shop is to become a renowned
provider of the rarest type of coffee, which guarantees 100%
consistency in quality, in the whole of Saudi Arabia. The shop
will take advantage of the following core competencies to
become the premier provider of Arabic coffee in the country:
· The unwavering focus on quality
· Continuous product development
· Outstanding customer service
· Care for its employees
· The desire to be everywhere.
The strategic position of Drive Thru Shop will be based on the
evaluation of the following factors:
a. Industry trends and analysis
b. Customer needs
c. Our strengths
d. Risks
Industry Trends and Future Opportunities
Saudi Arabia is the biggest consumer of coffee in the whole
world, since it is a country where coffee is used to signify the
Arabic hospitality and generosity, as well as the drink that is
irreplaceable. A study that Dr. Firdaus Bukhari conducted in
King Abdul Aziz University in Jeddah reveals that Saudi Arabia

12. is the biggest consumer of coffee worldwide. The annual
estimated quantities of coffee, which are imported for
production of Arabic coffee, stands at 10,000 tons. The study
further revealed that the per capita coffee consumption stands at
3kg annually. The same study also shows that the Saudi citizens
spend over SR1 billion annually in preparing coffee and its
components. The number of coffee shops within the country has
continued to increase at a rate of over 10% annually. Therefore,
these statistics are enough proof that Drive Thru Coffee Shop
has the greatest market potential.
Customer Needs
The shop’s target market is the young population and business
people. Therefore, in an effort to attract these people to come to
our shop, we will consider several things. First, we will ensure
that the shop has a modern and young feel, which will not only
be warm, but also inviting. This ambience will set the tone and
will help in attracting these people. Secondly, our shop will be
fitted with comfortable and cozy furniture. This will ensure that
customers will always relax, stay for a while, and enjoy another
cup of coffee. Finally, we will ensure that our shop has a Wi-Fi
connection since this is a perfect complement to coffee. The
Wi-Fi will be fast, and hence customers will stay a little longer.
Our strengths
Our strengths will lie on serving the finest coffee. In fact, it is
so rare to find a business that offers a product that guarantees
100% quality all the time. All the same, our shop will offer just
that because customer satisfaction will always be our top most
priority. Our experience will also enable us provide flexibility
to the demands and needs of individual customers, as well as
provide excellent customer service that exceeds their
expectations. We will also ensure that all employees are well-
trained to ensure that they provide all customers with
outstanding services.
Risks
The consumption of coffee in Saudi Arabia is very high since
the product is considered as the daily lifestyle. As a result, the

13. risks associated with trading in coffee is very low, which means
that Drive Thru Coffee Shop will have a higher prospects of
success once it is ready to start business. The market potential
is also expected to grow, which is advantageous for the coffee
shop.
Sales Sales for Drive Thru Shop Sales for Other
companies 0.2 0.8