AROMA Caffe Pvt. Ltd.

Presentation By:
Rishabh Kr. Singh
About AROMA Caffe Pvt. Ltd.
 Aroma started its operations just 2 years back
 Led by one of the most prominent and Trendsetter
Personalities in Beverage industries.
 “AROMA” is one of the fastest growing Coffee brand with
turnover of Rs 75 Cr in the year 2009-2010
 For the last 6 months, Company has started exporting
“AROMA” to European countries.
 Fairly high contribution of export in last quarter.
 Plan to enter Organic Coffee , a new concept in India.
Something about Organic Coffee
 Organic coffee is coffee that has been grown according
to organic farming standards and techniques, without the
use of artificial fertilizers, pesticides or herbicides.
 The primary producers of organic coffee are Peru, Ethiopia,
and Mexico.
 According to the center for Tropical Agricultural Research
and Higher Education in Costa Rica (CATIE), 75% of the
world's organic coffee comes from Latin America[1]
 Organic agriculture stimulates the environment’s natural
development of disease and pest control.
 Certified Organic Indian Coffee : Indian Robusta - from
Nirali estate [2]
Benefits of Organic Coffee
 The environment is able to benefit from organically grown
coffee.
 The moisture for the plants comes from the shade and that also
helps these beans to get a better taste
 By choosing organics we are choosing the best ingredients for
ourself and our family. 
 When we drink our coffee we do not have any fear of
synthetics or chemicals being used in the process.
 Organic coffee prevents pollution of chemicals into local water
sources

Source: http://www.cooperativecoffees.com/resources/papers/organic.html
Current Market Situation
 Organic Coffee is relatively new product in the Indian Market,
though the traditional coffee is well established.
 Coffee consumption in India to double in 5-10 years, says
ICO[3]
 The coffee consumption in India increased to 94,400 tonne in
2008 from 18,400 tonne in 1951, according to Roop Rashi,
director of finance, Coffee Board, the apex body of the Indian
coffee industry.
 Traditionally, India used to export around 80% of its coffee
production while only 20% was utilised for the domestic
purpose.
Whether to or not to enter the
organic coffee market
Opportunity and Issue Analysis
 Delhi’s estimated population in 2010 is 15 million, about
30-35 percent of this population has a monthly income of
10,000 Rs. If AROMA can reach 6.66% i.e. 1 million with
monthly consumption of 100 grams, potential sale would
be around 1 lakh kilogram.
 Similarly other metros can be targeted gradually and then
teir-2 cities.
Marketing Strategy
 Targets:
Big corporate houses, as this would add to on-going green
revolution
Teenagers and youth (15-20 years) in the Rs 10,000 and
above monthly household-income families.
 Positioning:
Trendy and clean drink from AROMA for bright youth
Refreshment for professionals.
 Product:
Packaged in packs of 25grms, 50 grams and 100grams for
households
Packaged in packs of 1kg, 5kg & 10Kg for corporate houses
Marketing Strategy
 Pricing:
Available in Rs 50 for 25grams, Rs 80 for 50 grams, and Rs.
150 for 100grams
 Distribution
Upmarket retail chains and kirana stores.
Cafe-chains
Malls and shopping complex.
Marketing Communication
Creating brand awareness and a distinctive image
Brand endorsement from a celebrity
Free trail packs with existing products of AROMA (pre-
launch)
Entry Barriers
 High initial investment, as its a new concept and awareness
is at lower end.
 Capital requirements
 Lack of clear Government policy and regulations
 Production of organic coffee is generally done by farmers
left with no other option, its not by choice hence they can
switch at very first availability of favourable option.
Exit Barriers
 Since a relatively new concept in India, exact stats is not
available, we are presuming too much. Hence exact break
even point may be delayed a bit.
 Traditional Coffee market is saturated, need to identify new
product opportunity.
 Also, since most of the producers are small holders , heavy
investment need to be put in financially and otherwise, and
in turn to recover it, we will have to stay longer.
References
1. wikipedia
2. http://www.uniqueroasts.com/indian.html
3. http://www.financialexpress.com/news/coffee-consumption-in-india-
to-double-in-510-years-says-ico/527252/