Gavina Coffee Presentation
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Transcript of Gavina Coffee Presentation
BandinCohen,Chris.neHasan,BlakeBennington,KleyChavez,KaShingSiu,DavidLean,JudyKim,LeeChoi,RyanBoynton,IsaacNurik,AronDaSiliva,JohnLim
Mission&Objec-ve
• EnhanceGavinabrandawarenessthroughflagshipretailstore
• Educateconsumersonen.reGavinacoffeeexperience
• Createself‐sufficientmarke.ngconceptwiththisflagshipstore
GavinaHistory&Opportunity
• GavinabrothersmovefromhomelandinSpaintocoffeerichCuba
• CastroRegimetakescontrolofCuba…DonFranciscomovedtoSouthernCalifornia
• Problem:Lowbrandawareness– Ex:McDonald’scoffee
• Opportunity:toexposeconsumerstopremiumGavinabrandthroughflagshipstore
StoreConcept
1) HighTrafficArea,pedestrianoriented
2) InformcustomersaboutGavinaCubanheritage
3) Func.onaldesignoverlaidwithCubanstyle4) ShowcaseallGavinacoffeebeansandDon
Franciscoproductsasfocalpoint
5) StoreZonings:Passive,Ac.ve,Community,Educa.on
6) Educate,Experience,Enjoy!
ConceptBubbleDiagram
SecondFloor(Loa)
FirstFloor
PassiveZone
Ac.ve/PurchaseZoneEduca.onZone
CommunityZone
EnterStoreHere
Poten-alLoca-on
• HighTraffic,PedestrianArea• Urban
– DowntownLosAngeles,LALive– SantaMonica,3rdStreetPromenade
GavinaEcosystem
Content
Service
Interoper Ability
Peer Opinion Supports My Goals
Customer Support
Channel
Device
Software
Gavina Coffee
-Retail Stores
-Mobile Posts
-Kiosks
-Online and Phone Delivery
-Superior Coffee
-Cater to sophisticated drinkers
-Increase brand awareness
-Enhancing the coffee ritual
-McDonald’s (Gavina) rated best coffee among Starbucks, Burger King, Dunkin’ Donuts -Premium product
-Premiere Coffee Shop
-Brewed Coffee
-Environment
-Ritual Enhancement
-Connoisseur’s Corner
-Cash registers
-Ordering supplies systems
-Brewed & Specialty beverages
-Furniture
-Dishware / Serving Equipment
-Packaging
-Synergy with high-end environments
GavinaStore
FloorPlan:UserExperience
Loa(2ndFloor)PassiveZone
1stFloor
Community
Ac.ve
Educa.on
Purchase/Ac.veArea
FirstFloor‐Sea.ng(foreground)‐Tas.ngBar(lea)‐OrderingCounter(right)‐Secondfloorloa(top‐back)
SecondFloorLounge‐Passivezone‐Fireplace
FirstFloor‐CommunitySea.ng(center)‐Fireplace(right)
FirstFloor‐CommunitySea.ng(lea)‐EspressoBar(backcenter)‐Tas.ngbar(backright)
Whoisourcustomer?
BusinessMan FriendsGedngCoffee JazzMusicianPersona
GavinaProducts
StainlessSteelVacuumBofle Tumbler
TableTopProducts
CandleHolder SugarBowl
FrenchPress
To‐goCups
In‐storeCups&Utensils
Tas-ngBar
FrontViewofTas-ngBar
GavinaTas-ngExperiencePackage
• OntheMenu:– Taste5blendsofcoffee+acookie+barista’seduca.onaltalkaboutcoffeefor$6
HeritageWall
Promo-on
• BuyLargecupofCoffeeandgetfreesamplebagofbeans
• Couponsforcoffeebeans• BillboardAds
SWOTAnalysis
Familialculture&tradi.on
Over130yearsoffamilyexperience
Highstandardsinquality
State‐of‐the‐artroas.ngandpackingfacility
LeadingretailbrandinSouthernCalifornia,top10brandintheU.S.
Strengths Weaknesses
No retail stores
Target Market lacks brand awareness
Non-coffee drinkers have no knowledge of them
SWOTAnalysis
Upscale/premierecoffeehouse
Emergingmarkets(18‐25/55‐64yearolds)
Over100milliondailycoffeedrinkersintheUS
Maleslessconcernedwithpricewillingtopayforpremierecoffee
65%morelikleytohavehouseholdincome$100k+ayear
Opportunities Threats
Entering an already over saturated market (Starbucks closed 76 stores in California alone last year)
Fierce competition and brand loyalty
Lack of brand recognition
Existing relationships with McDonald’s
“Coffee House”
Barriers of Entry • High due to strong existing companies with large market share
Rivalry • Starbucks, Coffee Bean, Pete’s • Low Differentiation • Multiple distribution channels
Substitutes • Rival coffee companies • Other independent coffee houses • Lounges, night-life entertainment establishments
Buyers • “Coffee Drinkers”…growing market
Suppliers • Quality • Quality • QUALITY!
Major Competition for Gavina…
• Starbucks
• Peet’s Coffee & Tea
• Coffee Bean
• Folgers
Starbucks • Largest coffee company in
world – 17,000 stores in 49
countries (11,000 US) • Retail and entertainment
product offerings – Hear Music = Starbucks’
music concept and record label
• Holds dominant position specialty coffeehouse market
• Over $9 billion in sales in 2009
Peet’s Coffee & Tea • Small, primarily California based company
-192 retail locations in US
• Focused on coffee and tea retailer rather than coffee bar
• Multiple distribution channels
-company owned stores, grocery stores, restaurants, food service accounts, and home delivery (online and mail orders)
Coffee Bean • 750 franchised locations in 22
countries – Within US, majority of
locations are in Southern California
• Multiple distribution channels – Franchised locations, grocery
stores (strategic partnership with Ralphs Grocery Company), and online purchasing
Folgers • Founded in 1850
– Strong brand equity; iconic American brand
• Online and retail distribution – Mostly available at large chain
grocery stores, drug stores, and convenience stores
– Online purchasing available on Smucker’s website
• 2008 became a subsidiary of The J.M. Smucker Co
– Since acquisition of Folgers, Smucker’s sales increased 52% (up to $1.28 billion)
Compe--on‐Starbucks• StarbucksforBusiness
– AbilitytoofferexclusiveStarbuckscoffeeincompanybreakrooms
– Deliveryavailable– Highvolume/trafficareascanleadtolicensingathealthcare
facili.es,universi.es,offices,hotels,orotherrelevantmarket
• StarbucksCulture– Emphasisonpeoplebeforeproduct– Supporttobaristascommongoal,worktogether– Emphasisonbeingaenvironmentallyresponsiblebusiness– Employeesreferredtoaspartners– Storesaredevelopedtomeetthecultureofthearea(somehigh
traffic/faststoresversusslowermorecommunitybasedstores)– Retailstorestryandbeapartofthecommunity
Compe--on‐Peet’s
• Peet’sCulture– Emphasisoncollabora.on,teamwork,anddiversityevidentthroughvarietyofproductofferings
– Opencommunica.onwithcustomerdesires– Educateemployeesaboutcoffeeandtea,turnthatknowledgeintoapassion
– Improveprofitabilityover.mebycrea.ngfana.candloyalcustomers
– Alwaysroastandshiponsameday
Sta-s-csonCoffeeDrinkers
KeyFinancialProjec-on
Year1 Year2 Year3
StartupCosts $925,000 ‐ ‐
Revenue $380,000 $687,500 $945,000
Expenses $580,000 $637,500 $715,000
CashFlow ($200,000) $50,000 $230,000
Posi.vecashflowshouldoccurinquarter2ofyear2.Breakevenshouldoccurinquarter2ofyear7.
• Mainobjec.veisnotprofit.• Objec.ve:Makeenoughmoneytokeepthismarke.ngprogramgoing.• ExcessCashflowwillgotoaddi.onalPR&Marke.ngbesidesflagshipstore.
StartUpExpenses
CapitalEquipment
Furniture 150,000
EqupimentandFixtures 275000
TotalCapitalEquipment 425,000
GeneralandAdministra-veExpenses
LeaseDeposits 15000
U.lityDeposits 5000
Construc.on(Remodeling) 250000
Décor 35000
PrepaidInsurance 10000
Pre‐OpeningSalaries 50000
TrainingCosts 15000
Other 25000
TotalGeneralandAdministra-veExpenses 405000
OpeningInventory
Cups,pots,utensils 10000
Coffeeonhandforretailsale 15000
Coffeesurplusforinstoreserving/ToGo(inaddi.ontoCOGS) 10000
TotalOpeningInventory 35000
Adver-singandPromo-onalExpenses
Promo.onalExpenses(materialsforfreedrinks,demos,etcetera) 25000
Signage 15000
Prin.ng 5000
WebsiteCrea.on 15000
TotalAdver-singandPromo-onalExpenses 60000
TotalStart‐UpCosts 925,000
P&LStatement
AugustSeptemberOctober November DecemberJanuary FebruaryMarch April May June July August TOTAL
Sales 0 0 0 6000 10000 9000 11000 12000 14000 16000 18000 20000 22000 138000
CostofGoodsSold 0 0 0 900 1500 1350 1650 1800 2100 2400 2700 3000 3300 20700
GROSSPROFIT 0 0 0 5100 8500 7650 9350 10200 11900 13600 15300 17000 18700 117300
G&A 1000 1000 5000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 17000
Payroll‐Managers 0 0 3750 3750 3750 3750 3750 3750 3750 3750 3750 3750 3750 41250
Payroll‐AssistantManagers 0 0 0 1500 1500 1500 1500 1500 3000 3000 3000 3000 3000 22500
Payroll‐Bar.stas 0 0 0 1875 1875 1875 1875 2812.5 2812.5 2812.5 2812.5 2812.5 3750 25312.5
Rent 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 78000
TOTALEXPENSES 7000 7000 14750 14125 14125 14125 14125 15062.5 16562.5 16562.5 16562.5 16562.5 17500184062.5
NetBeforeTax ‐7000 ‐7000 ‐14750 ‐9025 ‐5625 ‐6475 ‐4775 ‐4862.5 ‐4662.5 ‐2962.5 ‐1262.5 437.5 ‐67962.5
Assump-ons:
Posi.on AnnualSalary PerMonthSalary
1Manager 45,000 3750
2AssistantManagers 35,000 2916.666667
6Full.meemployees 30,000 2500
12Part.meemployees 15,000 1250
TOTAL 125,000 10,417
1) Lease
2400sq.a.
$2.89persq.a.(assume$3)
Rentpermonth 7200
Rentperquarter 21600
Totalrentperyear: 86400
2) Furniture
TableSea.ngandchairsfor30 10000
LoungeChairs/BoothSea.ngfor20 12500
Miscelaneousotherfurniture 5000
TotalFurniture 27,500
3) EquipmentandFixtures
IndustrialRefrigerators(3) 7500
IndustrialFreezers(2) 5000
EspressoMachines(4) 35000
Blenders(6) 2000
Sinks,dishwashers,steamers 15000
BakingEquipment(Ovens,ranges,etcetera) 25,000
Toiletsandbathroomfurnishings 5000
CountersandBar 20000
Total 114500
BreakEvenAnalysis
‐400000
‐200000
0
200000
400000
600000
800000
1000000
1200000
1400000
1 2 3 4 5 6 7 8 9
Year
CashonHand
Series1BreakEvenPoint
CashOnHand
ThankYou!AnyQues-ons?