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Sales and Distribution Assignment
Distribution and launch of Coffee product
8/21/2013
Abhijat Dhawal - 80303120011

2. ©Abhijat Dhawal
PGDM- 2012-14
About the company
Coffeebean is a coffee distributing and promoting company. Coffeebeanhas a hand in every
aspect of the coffee distribution and making process, with business activities ranging from
procuring best coffee beans from farmers and marketing of value-added coffee products. We
provide value add to coffee by procuring best beans, process beans with standard process and
distribution.
Product & Service Description
PRODUCT DESCRIPTION
We have personally researched and sampled each of the following products that we offer to
ensure the quality we guarantee.
Whole Bean Coffee
Espresso coffee
Instant Coffee
Rost and ground
Service Description
An important component of our business is not just our products, but our service. In addition to
our full service delivery, the following are other important service elements that we will offer to
our customers:
Ideas to help our customers increase sales through menu development, creative
promotions, co-op advertising, and much more.
Custom designed marketing material such as printed banners, promotional posters, punch
cards, pre-purchased beverage cards, reader boards, etc.
Distribute a monthly newsletter featuring the latest coffee trends, new industry
equipment, breaking trade news, promotional ideas, new creative recipes, and upcoming
events.
Samples of the latest product releases - with eye-catching point-of-sale to advertise new
items to the end consumer.
Routine equipment maintenance and training.
Sourcing
Wewill purchase coffee beans directly from farmers, from Karnataka. By eliminatingthe broker
or "middle man," allows us to operate on high profit margin, while providing our customers with
competitive prices.

3. ©Abhijat Dhawal
PGDM- 2012-14
 Indian Coffee Productivity
State/District
Post Blossom Forecast
2013-14
Final Estimation
2012-13
Arabica Robusta Total Arabica Robusta Total
Karnataka
Chikmagalur 41,200 37,360 78,560 37,325 40,300 77,625
Kodagu 24.100 1,10.320 1,34,420 21,300 98,700 1,20,000
Hassan 21.435 14,700 36,135 18,800 13,800 32,600
Sub total 86,735 1,62,380 2,49,115 77,425 1,52,800 2,30,225
Kerala
Wayanad 0 59,725 59,725 0 53,475 53,475
Travancore 900 7,250 8,150 975 7,200 8,175
Nelliampathis 1,100 1,575 2,675 1,100 1,450 2,550
Sub total 2,000 68,550 70,550 2,075 62,125 64,200
Tamil Nadu
Pulneys 7,210 340 7,550 6,425 255 6,680
Nilgiris 1,800 4,050 5,850 1,625 3,765 5,390
Shevroys (Salem) 3,875 50 3,925 3,450 50 3,500
Anamalais
(Coimbatore)
1,300 500 1,800 1,300 500 1,800
Sub total 14,185 4,940 19,125 12,800 4,570 17,370
Non Traditional
Areas
Andhra Pradesh 7,400 60 7,460 5,890 30 5,920
Orissa 550 0 550 310 0 310
Sub Total 7,950 60 8,010 6,200 30 6,230
North Eastern Region 130 70 200 100 75 175
Grand Total (India) 1,11,000 2,36,000 3,47,000 98,600 2,19,600 3,18,200
Pricing of Coffee Beans
Arabica Robusta
Exchange Rate
Rs./ US $
USCents/lb Rs./kg US Cents/lb Rs./kg
139.72 (138.38) 187.28 (186.43) 98.53 (96.60) 132.07 (130.14) 60.80

4. ©Abhijat Dhawal
PGDM- 2012-14
Coffee Manufacturing Process
 ROASTING THE BEANS
Roasting coffee is considered a chemical process in coffee manufacturing. It’s a technical job.
Roasting creates the aroma of the coffee. It changes the acids of the beans through heating. The
final result depends upon the experience of the person who manipulates the process.
In coffee manufacturing, the roasting takes a little time to finish. It is essential in achieving the
“identity” of any coffee brand. The coffee beans do not acquire any flavor. Roasting will turn
them from light green to brown. They will release an intense aroma. Roasting will force the
hidden oils to come out.
The roasting recipe is a great secret formula in coffee manufacturing. It is passed from father to
son. The person attending the procedure must be of high responsibility qualities. Different
varieties of coffee (Arabica/Robusta) require and different roasting routine. This fact makes an
experience roaster a very important person in this business.
Roasting time depends on machinery and technology. The process will take approximately up to
20 minutes.
Basic roasting steps in coffee manufacturing are:
1. The temperature begins from 100 degrees Celsius (211 Fahrenheit). It will change the coffee
beans to yellow. The smell will be like toast.
2. It increases to 180 degrees Celsius (356 Fahrenheit). The coffee beans turn to light brown
color. They double in size. The first crack is clearly heard at this point.
3.From this point, further increase of temperature will depend on the flavor recipe followed. It
sometimes might rise up to 300 degrees Celsius (572 Fahrenheit).
 GRINDING THE ROASTED BEANS
After the flavor uncovering, coffee beans go to the grinding process. Coffee grinding is a critical
step in coffee manufacturing. The proper procedure will lead to improvement of coffee taste. The
aroma is naturally preserved. Every type of coffee is ground in a different way.
The 5 most used grinds in coffee manufacturing are:
1. COARSE – Particles of coffee look like sea salt (i.e. French press coffee).

5. ©Abhijat Dhawal
PGDM- 2012-14
2. MEDIUM – Like sand in a beach (i.e. Filter coffee).
3. FINE – Like table salt (i.e. Espresso in mocha pot).
4. EXTRA FINE – Like castor sugar (i.e. Espresso from steam machine).
5. TURKISH – Like fine powder (i.e. Turkish style coffee).
Usually there is a procedure of selecting same sizes of beans. This will avoid problems in the
final texture of the coffee. The grinding should be done in small quantities.
 PACKING THE GROUND COFFEE
Coffee packaging must follow the soonest possible the phases grinding. Keeping the ground
coffee fresh on shelves is a serious factor for a successful coffee manufacturing business.
The main enemy of fresh ground coffee is oxygen. The correct package must take into
consideration this factor seriously. Coffee staling will be subject not only to oxygen contact but
also on moisture and sunlight.
The most usual package options are:
BULK COFFEE – In cans or foil type bags ranging in different weight options (i.e.
250gm.).
SINGLE SERVE – Ground coffee sealed in a small filter paper which makes 1 cup of
coffee (i.e. Coffee pods, Keuring K-Cups, Tassimo).
Technology
To streamline the efficiency of our distribution methods, weplan to use the latest in cutting edge
technology - not only in the warehouse - but also in the trade.
All of our drivers/sales representatives will be equipped with Thinque MSP handhelds and
software. Thinque MSP applications will reduce field expenses, decrease day's sales outstanding,
and increase worker efficiency. Features can be used in or out of the warehouse and include
managing returns and collections; adjusting item price, profit or margin; applying promotional
items to an account; streamlining orders; tracking inventory; reducing out-of-stocks; and
providing sales history reports. All information recorded in the handheld is available in real time
to be viewed by management in the office.
Market Analysis Summary

6. ©Abhijat Dhawal
PGDM- 2012-14
Coffee is the second largest commodity market next to oil, and growth is expected to continue at
a strong pace for the foreseeable future. The specialty beverage industry is growing at an equally
strong pace, with sales growth in some categories projected to grow at rates of 40% per year.
This growth offers excellent opportunities for new companies to enter this market, and we are
excited about the possibilities of what The Coffee Warehouse can accomplish in the Spokane and
Northern Idaho market.
Market Segmentation
Consumers who enjoy coffee products purchase drinks at restaurants, coffee houses, sports
venues, drive-thru espresso stands, and even inside other retail establishments that might feature
Industry Analysis
The coffee and specialty beverage industry is pulverized, with hundreds of manufacturers,
brokers, suppliers and retailers. Unlike the beer/soda industry, with large companies such as
Anheuser Busch, Pepsi and Coca Cola controlling most of the market, the coffee and specialty
beverage industry does not have large national chains with market control.
In an open industry growing at such a strong rate, The Coffee Warehouse is in position to
capitalize on the customer's need for quality product, exceptional service, and an effective
partner to success.Indian coffee market is of Rs 511crores.
Distribution Patterns
The following flow chart illustrates the overall industry surrounding the distribution patterns of
coffee and specialty beverages. (The Coffee Warehouse falls into the level highlighted in
yellow).
Several manufacturers are represented by master distributors and/or brokers who in turn provide
the product to direct distributors and other wholesale suppliers. Other manufacturers allow
distributors and suppliers to purchase product direct - depending on the quantity of product being
purchased. Product is then distributed or sold through cash and carry wholesale stores to retail
businesses as illustrated below.

7. ©Abhijat Dhawal
PGDM- 2012-14
Freight expense
We will procure raw coffee beans from Karnataka and Indian Railways is used to transport the
product to manufacturing unit is Hyderabad. Detail of transportation is given below
PARCEL RATES PREMIER PARCEL RATES
SCALE- P Weight of the Parcels
Distance
slabs
1-
10
11-
20
21-30 31-
40
41-
50
51- 60 61-
70
71- 80 81-
90
91-100
Kgs. Kgs. Kgs. Kgs. Kgs. Kgs. Kgs. Kgs. Kgs. Kgs.
(Kilometres) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
1 2 3 4 5 6 7 8 9 10 11
501 - 510 7.85 15.70 23.55 31.40 39.25 47.10 54.95 62.80 70.65 78.50
Distribution Network
1. Company will have C&F in Hyderabad, Chennai and Delhi
2. From Hyderabad Company will distribute the coffee packets in bulk to each part
of AP with the help of delivery truck.
 Replenishment will be done at every 15 days.
3. Replenishment to C& F will be done on monthly basic.
Competition & Buying Patterns
There is no much intense competition in the industry. Most importantly, there is room for new
business that understands the need for high-quality service and sales support - in addition to
product at competitive prices.

8. ©Abhijat Dhawal
PGDM- 2012-14
In this industry, customers choose their suppliers based on available product, price, and service -
though most often, it is the service that suffers most. While one supplier may offer the product at
the right price, they do not provide the level of service that the customer demands. By
positioning ourselves in the market with in-demand, quality product at competitive prices, with a
consistent high level of customer service - we are confident that we will see customers and their
business continue to increase
Sales and Marketing
The unique aspects of our business include individual product selection, quality assurance, and
high-quality full service distribution. Our strategy is to focus 100% of our efforts on good quality
service. By focusing all of our effort and energy on this particular area, we expect to quickly
develop and maintain a leadership position.
The Coffebeanwill offer the best, most highly personalized service in the marketplace. Being a
small, owner-operated company, we intend to use this to our advantage to be absolutely certain
that every one of our customers receive excellent service. We will go out of our way to make
sure that our customers know that they truly matter to us. Sales reps and in-house personnel who
deal with customers will be carefully trained and given wide latitude for insuring that customers
are always satisfied.
Marketing Strategy
Our basic marketing strategy is to work with customers on a one-to-one basis to ensure their
supply needs are being met and help develop unique marketing programs for each of them. We
intend to prioritize customer service and make it a key component of our marketing programs.
We believe that providing our customers with what they want, when and how they want it, is the
key to repeat business and positive word-of-mouth advertising. Because we want to develop
close working relationships with our customers, we want to establish accounts in as personable a
way as possible. It is for this reason that we will overwhelmingly emphasize in-person sales calls
to build accounts.
We will closely integrate all of our marketing and sales efforts to project a consistent image of
our company and a consistent positioning of our products and services. We will build this image
around our name "The Coffeebean." and emphasize to customers the high-quality service that is
behind this name.
To support our marketing initiatives and product knowledge, we will attend as many area
conventions and trade shows as possible to ensure we are offering the most up-to-date market
trend information.

9. ©Abhijat Dhawal
PGDM- 2012-14
IMC Budget
Particular Details Cost in Rs
Website
Hosting – 5000 20000
Designing – 15000
Phone application
Hosting – 5000 15000
Designing – 10000
Offline events
Events – 50,000 200000
Promotions – 1,50,000
Consulting-50,000 120000
Events-60,000
Promotions-10,000
Total 355000
Distribution Strategy of Distributor to retailer
We will operate two delivery trucks with a third vehicle for special deliveries between scheduled
delivery days. Deliveries will be made Monday through Friday, and will be strategically routed
to minimize travel time and fuel costs - while maximizing production. On average, we will
service 20-30 accounts per day, with deliveries to each account twice a week. As the number of
accounts increase, the need for additional delivery trucks will continue to be evaluated. With
each additional delivery truck, routes will be restructured to maintain maximum efficiency.
Sales Strategy
Phoned Orders: Customers can easily phone orders into our office, up until 2:30 p.m. of
the afternoon prior to their scheduled delivery day.
Faxed Orders: Customers can fax in a completed product order sheet, with the same
deadline as phoned orders.
Tel-Sell: Customers may choose to have a representative from the office call them the
day prior to their scheduled delivery to check product quantities and assist them in
placing their order.
We understand the hectic schedule of a small business, so if a customer fails to call or fax their
weekly order, they will receive a courtesy call from our office to verify that an order is not
needed.