2. KARMA COFFEE – A START UP COMPANY
Karma coffee ® – A start up company in Hyderabad
Founder : Abhishek Nagre
Karma coffee product lines
• Karma pre – mix coffee
• Karma Pure coffee
• Karma coffee machines
• Karma cafes
Operating
Hyderabad
Secunderabad
Rangareddy
3. PROCUREMENT OF RAW MATERIALS
Coffee Machines – Cisper Manufacturing company
Chennai
Single machine with Coffee making & Tea making – 12000 INR
This can be sole at a price ranging from Rs.15000 - Rs. 18000
Pre mix coffee manufacturing outlets are in Nacharam – Hyderabad
Procurement Cost of one kg pre-mix coffee for machines
Premium = 190 Rs
Normal = 150 Rs
Pure coffee – Manufacturers are located in Delhi , Bangalore , Karnataka
In Hyderabad pure coffee manufacturers are at Mallapur
4. PRICING WHEN BOUGHT FROM HYDERABAD MANUFACTURERS
Manufacturer to us
Our Selling price
Margin
Pre mix – coffee /KG
Coffee
Milk powder
Sugar
Rs. 190
Rs.230 - 250
Rs.30 – 50
Pure Coffee
Rs. 250
Rs. 280 – 300
Rs. 30 – 50
Coffee Machines
Rs.15000
Rs. 15000 – 19000
Rs. 1 k – 5 k
5. GENERAL DISTRIBUTION CHANNEL
Karma coffee
Target customers
- appoints sales persons
- Achieves LEADS
- meets the administration of the leads and Closes deals
- Installs or rents the coffee making machine
- Every month supplies coffee mixes by door delivery
– Show rooms
Hospitals
College canteens
Corporate offices
It companies
Call centers
Government offices - Secretariat , Rto etc
6. STRATEGIES – TO LAUNCH
AND IMPROVE
Pre mix coffee
Rather than buying Pre – Mix coffee from the Hyderabad Manufacturers
I Propose that we make our own mixing unit
Coffee powder can be bought from Bangalore unit of Ayyam manufacturers { compared to Delhi which is far }
Milk powder would cost us at 250 / kg
Sugar at 35 Rs if purchased in bulk from Nizamabad – Sugar factory
Mixing unit setting up is easy – Upon setting up own mixing unit we can cut down the price
Pre – mix powder can be produced at 130 Rupees / kg
Can be sold at 230 – 250 Rs. Leaving us huge chunk of profit
WHEN IT COMES TO PURE COFFEE
Buying from a manufacturer form Karnataka we can get it at 200 Rs. For Bulk orders
Can be sold at 280 – 300 Rs.
7. We even have plans of wetting up coffee powder manufacturing unit
Buying coffee beans from Bangalore , Delhi Markets
Upon setting up a small unit for roasting the beans & with the blends of chicory
We can produce Deluxe priced coffee
40 % chicory
Premium priced coffee 25 % chicory
Ultra premium coffee
10 % chicory
Coffee machines
Renting of coffee machines is a good options for customer with less usage
For renting machine a monthly 1000 Rs collected
Pre mix powder is bought by the renter
1 kg mix – makes 80 cups of coffee
Life time of the machine is 7 – 8 years
Return from the machines will yield profit
8. Other than selling machines and renting
We give away the machine for free
In return - a promise from the buyer for minimum buying of 15000 R.s worth coffee every month
Even if he fails to do so – he pays the amount for the month
Launching of Packets and Bottles
Karma coffee also plans to launch bottled coffee and 1 kg packets with pricing of 280 rs
500 Grams – at 150 RS.
9. DISTRIBUTION STRATEGY
Karma coffee company
Regional Distributors
Target customers
Govt offices
Hospitals
Corporate companies
Show rooms
College canteens
Super markets
