Coorg Coffee Beans prepares high-quality Arabica coffee beans from Coorg, India for export to American specialty roasters. They aim to increase production from 180,000 bags annually to 300,000 bags by year three. Their coffee stands out for its large bean size and freshness within seven days of preparation. They plan 20% sales growth in year one, reaching maximum capacity and excellent profits in year three. Their customers are American importers supplying specialty roasters, and they have positive indicators these importers will buy their additional production.

1. COORG COFFEE BEANS

2. EXECUTIVE SUMARRY
 We prepares green Arabica coffee beans grown in Coorg, India for exportation to American specialty
roasters .
 Our coffee stands out from that of the competition. We prepare the top five percent, in terms of
quality standards of all Arabica beans on the market.
 We predict growth of twenty percent in the first year with sales increasing gradually. In year three the
plant will run at maximum capacity and based on the current price of coffee we expect excellent
profits.
 We have positive indicators from current importers that the additional amount of beans will be sold
in the market.
The objectives of Coorg Coffee Beans is: Increase production and sale from 180,000/60kg bags per year to approximately 240,000/60kg bags
per year in the first year of operation at the proposed facility and reach maximum capacity of
300,000/60kg bags per year by year three.
 Increase sales substantially in the first full year of operation.
 Establish strategic relationships with minimum 5 American importers in Seattle(Washington).
 Increase gross margins in the next three years.

3. COMPANY SUMMARY & OWNERSHIP
 Coorg Coffee Beans buys and prepares raw coffee in parchment or coffee in its post-
harvest stage.
 The finished product, green Arabica coffee beans are packaged in 60kg sacks and sold on
the U.S.A market in Seattle(Washington).
 Our customers are primarily American importers who provide high-quality beans to the
specialty roasting market.
 Coorg Coffee Beans is a Private(LLC) preparer and exporter of Indian grown coffee
beans. It is owned and operated by SINGH Pramod Kumar and his friends Anup and
Krishna Pandy.

4. INDIA-USA BILATERAL TRADE AND
INVESTMENT
 India is currently 13th largest goods trading partner with $57.8 billion in total (two ways)
goods trade during 2011.
 Goods exports totaled $21.6 billion; Goods imports totaled $36.2 billion. The U.S. goods
trade deficit with India was $14.5 billion in 2011.
 Trade in services with India (exports and imports) totaled $28 billion in 2011 (preliminary
data).
 Services exports were $11.6 billion; Services imports were $16.9 billion. The U.S. services
trade deficit with India was $5.3 billion in 2011.
 U.S. foreign direct investment (FDI) in India was $27.1 billion in 2010 (latest data
available), a 29.5% increase from 2009.
 India FDI in the United States (stock) was $3.3 billion in 2010 (latest data available), up
40.8% from 2009.

5. COMPETETIVE COMPARISON
 In order to differentiate our product from the competitors all beans are guaranteed fresh
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and are shipped within seven days of preparation.
In addition all beans are sorted at ninety-five percent screen 18 and above and compared
to the industry standard ninety percent screen of 17 and above. The beans shipped by
Coorg Coffee Beans are therefore larger than most and are guaranteed fresh.
In addition, all of the farms from which Coorg Coffee Beans purchases coffee adhere to
environmentally sound farming practices and avoid the use of pesticides and chemicals
in crop production.
There are approximately 5 competitors who offer a product similar to ours. Our research
indicates that with the additional capacity we would become one of the top three in
terms of quantity, providers.
We have the advantage of established distribution channels which has been outsourced.
In addition improvements in our marketing efforts will further separate us from the
larger market and from our close competitors.

6. MARKET ANALYSIS SUMMARY
 Coffee is the second largest commodity market next to oil . Imports of coffee in the
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United States have increased ninety-four percent in the past five years .
In addition, demand for green coffee is above the market clearing level and market
price and crop yield estimates are at an all time high.
U.S.A imports 1.42% coffee from India in a year.
The Arabica bean which is considered to be the best in the world and as such, the
demand for Arabica beans is high on the specialty roaster market. Specialty roasters
are willing to pay more for Arabica beans and attempt to distinguish themselves via
the characteristics of the bean they use i.e. the location in which it was grown,
farming methods, bean size, etc.
The final consumer is relatively price insensitive if the coffee is good, has won
awards, or is compatible with a popular trend. We estimate that specialty roasting in
the U.S.A alone is a ($USD) 30-32billion market.

7. MARKET SEGMENTATION
The potential customer groups for Coorg Coffee Beans are: American importers of green Arabica beans: Market research suggests that there are
around 15 importers of Green Arabica coffee in Seattle(Washington) in United States
that would be able to handle the quantities of our shipments and are in our target
market .
 Combined, they import a total of 360 tonne/60kg bags of Indian coffee per year.
 American specialty roasters: As we move towards maximum capacity we will plan to
more aggressively target this audience and we hope to eventually reduce transactions
with wholesalers and capture their value-added costs as profit.

8. PRODUCT PRICING
Penetration Pricing: The price charged for products and services is set artificially low
in order to gain market share. Once this is achieved, the price is increased.
PRODUCT PRICING CALCULATOR
PRODUCT DESCRIPTION: GREEN ARABICA BEANS
WEIGHT: FOR 1 KG
FIXED COST: 0.40$
VARIABLE COST: 0.50$
COST OF PRODUCTION: 0.90 $
SALES & MARKETING : 0.50 $
EXPORT DUTIES: 0.33 $
SHIPPING AND HANDLING CHARGES:0.50$
IMPORT DUTIES AND TAXES : 0.10$
TOTAL COST : 2.33$
SELLING PRICE: 3.35$
The price for 60 Kg bag of Green Arabica Coffee will be 201$

9. DISTRIBUTION PATTERNS
 All of the coffee produced for exporting by Coorg Coffee Beans is approximately eighty
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five percent of all coffee produced for exportation in Coorg , India and is shipped from
Mangalore Port.
Prepared coffee is shipped via Road Transport (Trucks) from the Coorg Coffee Beans
plant in Coorg to Mangalore Port.
From the port it is then shipped, in 20 foot containers(FCL) to the Seattle
Port(Washington) via cargo ship with Mediterranean Shipping Company. Distribution
charges are assumed by Coorg Coffee Beans up to the arrival of the shipments in the
Port and custom duties also after that importers assume responsibility, as detailed in
contract, of the shipment and additional distribution charges.
Incoterm Delivered Duty Paid (ICC Incoterm 2010) from Mangalore Port, India will be
used for shipment.
All jurisdiction are subject to High Court in Bangalore.

10. DIFFERENT STRATEGIES
Strategy Pyramid
Our main strategy is to communicate the unique and desired attributes of our coffee to
larger segments of the American markets. We sell a superior product, yet one that can be
considered a commodity. It is therefore important that we effectively communicate the
unique aspects which make it ideally suited for a niche market.
Marketing Strategy
 The marketing strategy will include the use of targeted print media, advertising and
direct selling to importers in the United States who provide green coffee to specialty
roasters. The primary goal of all marketing efforts will be to communicate this to
existing and potential customers.
Promotion Strategy
 Relationships are key to success in the export business. Importers in Los Angeles will be
invited for visiting the facility, family home, and farms from which coffee is purchases.
In addition to personal selling our company has identified several specialty publications
within which print advertisements will run. Direct mail, in the form of personal letters
will also be used to communicate with existing and potential clients.

11. Distribution Strategy
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The distribution system of India is very efficient and organised. Distribution costs for exports are
absorbed by us. Increasing the volume of our exports will makes us eligible to receive reduced fees
and helps ensure that trucks are running at maximum capacity.
Marketing Programs
 Our most important marketing program is an increase in online selling combined with targeted
direct mail and print advertising.
Positioning Statement
 For American importers of Indian coffee who will use our coffee to supply to specialty roasters.
Coorg Coffee Beans will be of highest quality and largest beans available.
 Unlike many exporters, our beans exceed the minimum acceptable quality standards and are
shipped within one week of preparation to ensure the largest and freshest beans on the market.
Pricing Strategy
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The import market largely determines the price of imported coffee in the United States. We have
priced our product for 10 MT contract 16,000 $.
Sales Strategy
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To speed up the customer service, at least three employees will be servicing clients ,while one employee will be
preparing the customer's order, the second one will be taking care of the sales transaction and the third will take
care of CUSTOMER SERVICE SUPPORT 24/7.

12. Sales Forecast
 The following chart and table show our present sales forecast. We project
healthy growth in sales in 2013, a slightly smaller increase again in 2014, and
reach maximum for production capacity in 2015 representing a large growth
over the previous year.
SALES IN USD LACS
8
7
6
5
4
3
2
1
0
SALES IN USD LACS

13. FINANCIAL PLANNING
 We want to finance the business through a start up capital invested by owners and
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combination of long-term debts. Purchase of new equipment will require
approximately eighty percent debt financing.
Additional technology will be primarily financed with cash-flow.
Inventory turnover must remain at or above four or we run the risk of backing up
orders.
We expect to maintain our collection days at 30 with thirty percent of sales on
credit.
In addition, we must achieve gross margins of thirty-five percent and hold
operating costs no more than sixty-five percent of sales.

14. ESTIMATED YEARLY PROFIT
PROFIT IN USD
250000
200000
150000
PROFIT IN USD
100000
50000
0
2013
2014
2015

15. SAMPLE REQUISITION FORM
Please use the below form to request green coffee samples.
Note: Samples will only be sent out within United States Of America
Coffee Type :Coorg Green Arabica
Company Name :-
Full Name :-
Address :-
Email Address :-
Phone Number
:-

16. PACKAGING

17. THANK YOU