Case Study Café MochaCase Study Café Mocha

MOS Group 2Team 5

Submitted by:

Swati Pahuja (C - 03)Nitika Choudhary (C - 10)

R. Keerthika (C - 14)Jeevika Janmejya (C - 22)

Puja Jha (C - 23)Shashank Khanduri (C - 26)

Paurush Gaur (C - 42)Rajan Grover (C – 48)

About café mochaAbout café mocha

Mocha draws its inspiration from the “Quahveh Khanneh” or Mocha draws its inspiration from the “Quahveh Khanneh” or

Coffee House of Morocco and Turkey, where people used to Coffee House of Morocco and Turkey, where people used to

gather over hot coffee, Hookahs and just talk, and enjoy each gather over hot coffee, Hookahs and just talk, and enjoy each

other's company.other's company.

Currently the total no. of units is 20; of which 12 are franchisedCurrently the total no. of units is 20; of which 12 are franchised

Investment required: Between INR 65 - 85 lacsInvestment required: Between INR 65 - 85 lacs

Business Established: 2001Business Established: 2001

Franchising commenced: 2002Franchising commenced: 2002

Qualifications Required: Just the PASSION to excel in the service Qualifications Required: Just the PASSION to excel in the service

industryindustry

Q.1 STP analysis of Q.1 STP analysis of Café MochaCafé Mocha

UNDERSTANDING STPUNDERSTANDING STP

SEGMENTATIONSEGMENTATION

Dividing the market into smaller groups with distinct needs and Dividing the market into smaller groups with distinct needs and characteristics.characteristics.

TARGETINGTARGETING

Evaluating each market segment’s attractiveness and selecting one or more Evaluating each market segment’s attractiveness and selecting one or more segments to enter.segments to enter.

POSITIONINGPOSITIONING

Arranging a product to clearly occupy a clear distinctive & desirable place Arranging a product to clearly occupy a clear distinctive & desirable place relative to competing products in the minds of the target customers.relative to competing products in the minds of the target customers.

SEGMENTATIONSEGMENTATION

ON THE BASIS OF AGE GROUPON THE BASIS OF AGE GROUP 47% of its customers are in age group of 18-25 years.47% of its customers are in age group of 18-25 years. 28% of its customers are in age group of 26-30 years.28% of its customers are in age group of 26-30 years.

ON THE BASIS OF PROFESSIONON THE BASIS OF PROFESSION 52% are students who find café as a good place to hang out with 52% are students who find café as a good place to hang out with

friends.friends. 23% are working professionals.23% are working professionals.

ON THE BASIS OF FREQUENCYON THE BASIS OF FREQUENCY Approx 18% visits café daily.Approx 18% visits café daily. 40% weekly.40% weekly.

ON THE BASIS OF GEOGRAPHICAL AREAON THE BASIS OF GEOGRAPHICAL AREA Mainly urban population visits to café’s and that is why Café Mainly urban population visits to café’s and that is why Café

Mocha’s outlets are in urban areas and metro cities.Mocha’s outlets are in urban areas and metro cities.

TARGETINGTARGETING

People who not only like coffee but also who are hookah People who not only like coffee but also who are hookah lovers.lovers.

Students who want a place to spend leisure time with their Students who want a place to spend leisure time with their friends.friends.

Solo-eaters (introducing table for one)Solo-eaters (introducing table for one) For executives who stop by between meetingsFor executives who stop by between meetings For students who drop in to read a book or studyFor students who drop in to read a book or study For calorie conscious people by introducing light shakes like For calorie conscious people by introducing light shakes like

blueberry & seasonal fruit pines with zero calorie ice cream.blueberry & seasonal fruit pines with zero calorie ice cream. Eggless desserts for veggies.Eggless desserts for veggies.

POSITIONINGPOSITIONING

Not only a coffee shop but a place where you Not only a coffee shop but a place where you can spend time with your friends.can spend time with your friends.

Different from competitors ( Shisha) as Café Different from competitors ( Shisha) as Café Mocha offers a vast variety of hookah flavors Mocha offers a vast variety of hookah flavors including wine in their menu.including wine in their menu.

Truly “ Twenty Minute Vacation”Truly “ Twenty Minute Vacation”

Yes the size of the customer segment justify the economic Yes the size of the customer segment justify the economic viability in other cities as Café Mocha offers a good option not viability in other cities as Café Mocha offers a good option not only for coffee and hookah lovers but also it has dishes like only for coffee and hookah lovers but also it has dishes like

Panini (Panini (traditional Italian flat breads toasted with individual traditional Italian flat breads toasted with individual stuffing) stuffing)

PoutinesPoutines (French fries smothered in cheese or curry sauce) (French fries smothered in cheese or curry sauce) Shakes, cakes, desserts etc.Shakes, cakes, desserts etc.And that too with a nominal price rangeAnd that too with a nominal price rangeCouches, beanbags, decoratively tucked curtains etc add-on's to Couches, beanbags, decoratively tucked curtains etc add-on's to

its cheerful ambience.its cheerful ambience.

Q.2 The need to change the offering Q.2 The need to change the offering & the entire experience for smaller & the entire experience for smaller

citiescities

Pricing – needs reconsideration based on ‘value’ Pricing – needs reconsideration based on ‘value’ offered to customeroffered to customer

So many varieties in food and beverages may not be So many varieties in food and beverages may not be required and can be reduced to increase profitabilityrequired and can be reduced to increase profitability

But tier-2 cities may not be so open to the idea of But tier-2 cities may not be so open to the idea of young adults going to smoke hookah with friends so young adults going to smoke hookah with friends so maybe only launch very few outlets in posh areas maybe only launch very few outlets in posh areas with few flavors – for young adults of upper class- with few flavors – for young adults of upper class- till adoption increasestill adoption increases

Q.3 Discuss the Positioning of Café Q.3 Discuss the Positioning of Café Mocha through ‘Evidence of Mocha through ‘Evidence of

Service’ described in the case.Service’ described in the case.

PeoplePeople

The waiters have a uniform which is The waiters have a uniform which is

inspired by Arabic styling.inspired by Arabic styling.

Services offered are casual and not so Services offered are casual and not so

formal.formal.

There is no as such qualification needed to There is no as such qualification needed to

get a job at café mocha but it’s the get a job at café mocha but it’s the

“Attitude” which matters.“Attitude” which matters.

The Coffee bar is spread over 3000 square feet having of an outer The Coffee bar is spread over 3000 square feet having of an outer seating area.seating area.

The use of multi-colored hookahs positioned the café mocha on the The use of multi-colored hookahs positioned the café mocha on the typical Indian Traditiontypical Indian Tradition

The Low wooden benches gives comfort to the customersThe Low wooden benches gives comfort to the customers

The use of different colors on the walls and ceiling makes the eyes The use of different colors on the walls and ceiling makes the eyes feel better and a feeling of happiness generated through these colors.feel better and a feeling of happiness generated through these colors.

Physical EvidencePhysical Evidence

Cont…Cont…

The Leopard striped chairs and airplane seats gives the feeling The Leopard striped chairs and airplane seats gives the feeling of royalty and importance given to the customer.of royalty and importance given to the customer.

A relaxed casual atmosphere accentuated with superb coffees A relaxed casual atmosphere accentuated with superb coffees makes the café mocha perfect to chill out and hang out with makes the café mocha perfect to chill out and hang out with friends.friends.

The uniqueness of the café mocha is that all the articles are The uniqueness of the café mocha is that all the articles are meant for sale which gives a feeling to the customer that meant for sale which gives a feeling to the customer that everything in café mocha is meant for customers only and everything in café mocha is meant for customers only and customer is given the utmost importance in café mocha.customer is given the utmost importance in café mocha.

Q.4 Role of ServicescapeQ.4 Role of Servicescape

Consists of an outer seating area, where multi-colored hookahs Consists of an outer seating area, where multi-colored hookahs

and low set wooden benches add to your coffee experienceand low set wooden benches add to your coffee experience

Give a Sindbadian experience – Arabia with a scent of Give a Sindbadian experience – Arabia with a scent of

Morocco and flavors from Turkey.Morocco and flavors from Turkey.

Mocha started a hookah trend with coffee - time for gossipingMocha started a hookah trend with coffee - time for gossiping

Imbibing a very med coffee bar cultureImbibing a very med coffee bar culture

Coffee served in large, colorful cups, Turkish jeweled hookahs Coffee served in large, colorful cups, Turkish jeweled hookahs

or Sheeshas in assorted flavors, desserts and snacks or Sheeshas in assorted flavors, desserts and snacks

PackagePackage

Inside is a riot of colors, Split into two levels with walls in Inside is a riot of colors, Split into two levels with walls in yellow and pink and a bright blue ceiling,yellow and pink and a bright blue ceiling,

flaming red beanbagsflaming red beanbags leopard striped chairs leopard striped chairs airplane seatsairplane seats velvet covered couches velvet covered couches

curtains decoratively tucked curtains decoratively tucked – – a warm and relaxed atmospherea warm and relaxed atmosphere The cheerful ambience receives a touch of serenity downstairs The cheerful ambience receives a touch of serenity downstairs

with book lined shelves and Japanese-style floor settingwith book lined shelves and Japanese-style floor setting. . ----place to meet and suspend reality for a few momentsplace to meet and suspend reality for a few moments

The individual pieces of furniture chosen for the intrinsic The individual pieces of furniture chosen for the intrinsic beauty rather than set theme furniture beauty rather than set theme furniture --It’s about feeling --It’s about feeling good and surrounding yourself with everything that feels goodgood and surrounding yourself with everything that feels good

FacilitatorFacilitator

‘‘Coffee and Conversations’ tag line and their concept which is to provide Coffee and Conversations’ tag line and their concept which is to provide guests a total memorable experience and a 20-minute vacation.guests a total memorable experience and a 20-minute vacation.

It is the perfect place to chill out and hang out with friendsIt is the perfect place to chill out and hang out with friends As it provides a relaxed casual atmosphere accentuated with superb As it provides a relaxed casual atmosphere accentuated with superb

coffees and aesthetic settingcoffees and aesthetic setting

Wi-fi connection – an extra facilityWi-fi connection – an extra facility

Every piece of furniture at mocha is for sale – lets café mocha customers Every piece of furniture at mocha is for sale – lets café mocha customers take with them a part of their experience and make it a part of their home take with them a part of their experience and make it a part of their home

They also plan to host poetry readings and art exhibitions in an effort to They also plan to host poetry readings and art exhibitions in an effort to promote upcoming and offbeat art in the city.promote upcoming and offbeat art in the city.

Experimental Menu – Experimental Menu – During Monsoon – Chai and Bhajiyas During Monsoon – Chai and Bhajiyas

SocializingSocializing

Mocha has come up with new initiatives like backpacking club Mocha has come up with new initiatives like backpacking club The Mocha Backpackers Club meets on the last Sunday of every The Mocha Backpackers Club meets on the last Sunday of every

month at 12 pm to give backpackers gyan about how to go about month at 12 pm to give backpackers gyan about how to go about organizing a trip. organizing a trip.

Exotic experience – ambience + offeringsExotic experience – ambience + offerings

All the articles here are meant for sale. Such qualities make this place All the articles here are meant for sale. Such qualities make this place unique – conveys that the environment in café mocha is relaxed but unique – conveys that the environment in café mocha is relaxed but dynamicdynamic

Mocha gets a lot of solo eaters.Mocha gets a lot of solo eaters. They are basically executives who stop by between meetingsThey are basically executives who stop by between meetings Students who drop in to read a book or study. But they are mostly Students who drop in to read a book or study. But they are mostly

people who need their space and privacy.people who need their space and privacy. At the Churchgate Mocha two tables are meant only for one, in case At the Churchgate Mocha two tables are meant only for one, in case

people want to spend time by themselves and enjoy their coffee. people want to spend time by themselves and enjoy their coffee.

DifferentiatorDifferentiator Sindbadian experienceSindbadian experience – Medieval theme – Turkey, Arabia, Morocco – Medieval theme – Turkey, Arabia, Morocco

HookahHookah – since inception, first in the country – since inception, first in the country

Exotic foodExotic food – Signature dishes - Panini, Poutines, Lava Lava, Jamaican Blue – Signature dishes - Panini, Poutines, Lava Lava, Jamaican Blue

Mountain Coffee CakeMountain Coffee Cake

World FlavorsWorld Flavors: Choices: Choices

1.1. Coffee: Coffee: Ethiopian Yirgacheffe Sidamo, Costarica Tarrazu, Guatemala Antigua Brazil Bourbon Ethiopian Yirgacheffe Sidamo, Costarica Tarrazu, Guatemala Antigua Brazil Bourbon

Santos, Hawaiian Kona, Java EstatesSantos, Hawaiian Kona, Java Estates

2.2. Blends: Blends: Mocha-JavaMocha-Java

3.3. De-caff: De-caff: Columbian SupremoColumbian Supremo

4.4. Old Favorites: Old Favorites: Oreo cookie shake, Snicker Bar shake, Toblerone shake in addition to classic Oreo cookie shake, Snicker Bar shake, Toblerone shake in addition to classic

tastes like cappuccino, espresso, flavored latte etctastes like cappuccino, espresso, flavored latte etc

5.5. Calorie Conscious: Calorie Conscious: Light shakes (blueberry, strawberry), fruit pies zero calorie ice cream Light shakes (blueberry, strawberry), fruit pies zero calorie ice cream

toppingtopping

6.6. Eggless dessertsEggless desserts

Awards and Recognition: Differentiation acknowledged by other bodiesAwards and Recognition: Differentiation acknowledged by other bodies

- Times Food Award for the Best Coffee Bar in 2004, 2005 2006 & 2007, consecutively for 4 - Times Food Award for the Best Coffee Bar in 2004, 2005 2006 & 2007, consecutively for 4 years.years.

- Nominated for “New Format of the Year” for the year 2002 – 2003, by Images Retail.- Nominated for “New Format of the Year” for the year 2002 – 2003, by Images Retail.

- Voted as one of the Top 12 Coolest Companies in India by Business Today magazine- Voted as one of the Top 12 Coolest Companies in India by Business Today magazine

Experimental Menu – Experimental Menu – During Monsoon – Chai and BhajiyasDuring Monsoon – Chai and Bhajiyas

FurnitureFurniture - Chosen for beauty, no fixed theme – All for sale - Chosen for beauty, no fixed theme – All for sale

PricingPricing – Very reasonable compared to competitors offering similar ambience – Very reasonable compared to competitors offering similar ambience

VarietyVariety offered not only in food and beverages but also in hookah flavors offered not only in food and beverages but also in hookah flavors

InitiativesInitiatives: Backpacker’s Club and Table For One: Backpacker’s Club and Table For One

DistinctDistinct Ambience:Ambience: eclectic and elegant eclectic and elegant1.1. Walls- yellow and pinkWalls- yellow and pink

2.2. Bright blue ceilingBright blue ceiling

3.3. Flaming red beanbagsFlaming red beanbags

4.4. Leopard striped chairsLeopard striped chairs

5.5. Airplane seatsAirplane seats

6.6. Velvet covered curtains and couchesVelvet covered curtains and couches

7.7. Book lined shelfBook lined shelf

8.8. Japanese style floor settingJapanese style floor setting

Experimental Menu – Experimental Menu – During Monsoon – Chai and BhajiyasDuring Monsoon – Chai and Bhajiyas FurnitureFurniture - Chosen for beauty, no fixed theme – All for sale - Chosen for beauty, no fixed theme – All for sale PricingPricing – Very reasonable compared to competitors offering similar – Very reasonable compared to competitors offering similar

ambienceambience VarietyVariety offered not only in food and beverages but also in hookah flavors offered not only in food and beverages but also in hookah flavors InitiativesInitiatives: Backpacker’s Club and Table For One: Backpacker’s Club and Table For One WineWine – on the menu – on the menu CoffeeCoffee and Conversationand Conversation – 20 minute vacation, memorable experience – 20 minute vacation, memorable experience Imports beans etc + Fully backward integratedImports beans etc + Fully backward integrated Mocha Life ShopMocha Life Shop Literary MovementLiterary Movement – Lonely Planet – Lonely Planet

Highly Differentiated – No Direct CompetitorHighly Differentiated – No Direct Competitor

Their Unique Value Proposition is through disseminating a Their Unique Value Proposition is through disseminating a Holistic Holistic Value Proposition Value Proposition

offered by an overall approach to serve their target customers in all offered by an overall approach to serve their target customers in all ways possibleways possible

Thank YouThank You