Addiction ….

Sinfully Yours!
Executive Summary
 In Mumbai, the service industry is rapidly growing with restaurants, cafes, pubs,
and nightclubs coming up every day.
 In order to enter such a market, we have come up with an idea of an out and out
chocolate cum café lounge that will cater to the needs of chocolate and
coffee fans. Along with it, it will keep into consideration the interest of hookah
lovers.
 Powai is an area densely populated by corporate offices and is a hub for young
+ earning crowd. Our basic focus will be to target such individual with high
levels of education and disposable income
 With “Addiction” what we exactly intend to do is to provide an areato such
people where they can come and chill out even at 2 in the morning.
 If you still need to work what’s better than a calm area filled with exotic aromas
where Wi-Fi connectivity is never a problem. The motto will be to make a
position in the minds of young professionals that “Addiction” is a place where
they can come and enjoy the delicacies while they work.
 The area is in need of a warm and friendly place that will be open late in the
night. It will be a place where you’ll always welcomed and a place which
promises its guests the best of everything. Addiction Lounge will feature cozy
and elegant lounge with comfortable furnishings and decor with soothing
warm tones. The lounge will comfy couches and antique wooden furniture. It
will be the perfect place to fulfill the needs of a sweet tooth. Stop in for a bite
to eat, for a drink or for a small business meeting. For extra comfort and to
please a large group of people we will make up happy hours from 2:00 pm to
7:00 pm for the customers.

ADDICTION - Company Summary
 Addiction , an amazing out
and out café lounge
especially designed to
mesmerize you in the
sinful world of choco,
caffeine and hookah

 It specializes in exquisite
chocolate deserts and
shakes

 It also serves world class
coffee and exotic hookahs
Start - up Expense ( in Rs )
sd 10,00,000
license fee 1,00,000
marketing 50,000
salary 50,000
rent 1,50,000
electricity 30,000
interiors 1,00,000
Total Startup Expense 14,80,000

Startup Assets ( in Rs )
furniture 3,00,000
electrical appliances 1,50,000
music and DJ 50,000
Total Startup assets 5,00,000

Total Requirement 19,80,000

Company Ownership
 The café lounge will start out as Friends and
Co. owned by its founders Taruna Gupta,
Harsha Haridas, Tejas Jain, Mayank Jain and
Basant Jalan.

 Tejas Jain and Basant Jalan will function as
the managing partner while Mayank Jain
will look after the finances. Harsha Haridas
and Taruna Gupta will head the marketing
department.

Start Up summary
 We are looking out for a
rented area in
Hiranandani Estate
1500-2500 sq.ft.
carpet area

 It will be in close
proximity to the
corporate houses like
Nomura & Credit
Suisse


 Vision
 We would like to take “The Addiction”
experience pan India. As a cloud in our dreams
part, we see our “Addiciton” café lounge in
Kolkata, Delhi, Bangalore and Pune
 Make it a selective getaway to give it a feel of
exclusivity.  


Mission
We want to establish our brand “Addiction”
as…………………………………..
Market Analysis
Intended Customer Segment


 The chocolate confectionary

fan …………

 The typical gourmet coffee fan
is that sought-after individual
with high levels of education
and disposable
income

 This targets college students
and business professionals in
general
Consumer Trend
 Chocolate
◦ The traditional Indian sweats is getting substituted by chocolates
and its variants among upwardly mobile Indians
◦ Range and variety of chocolates and chocolate products available
in market seems to be growing day by day, which leads to lot of
impulse sales for chocolate companies
◦ Chocolate items which use to be unaffordable, is now considered
mid-priced. Convenience over Mithai in terms of packaging and
shelf life is making both middle class and rich Indians opt for
them
◦ Demand for international flavored delicacies is increasing
◦ Partying at lounges have become a status symbols. They are
linked to one’s aspiration and lifestyle and are perfect points of
sale as people usually are happy and gay at these destinations
◦ Young generation loves having a wide range to choose from and
also likes an option of getting customized deserts at the same
time enjoying a service friendly and happening environment
that connects to their lifestyle
◦ There is a gradual change in the Indian palate which gives a boost
to this industry

Consumer Trend
 Coffee
 Coffee consumption in India is witnessing an upward trend
with better branding of coffee among the youth by various
domestic and international coffee chains in recent years
 experts feel that coffee is receiving encouraging response
from youth as a popular drink with opening of coffee retail
outlets in the country
 Homegrown Cafe Coffee Day (CCD), Italian Barista Lavazza
and Costa are some of the coffee retail chains with close to
1,250 outlets across India.
 Industry estimates say there is a scope for another 5,000
outlets in the country which will provide significant boost
towards domestic consumption
 Coffee retail in unconventional region like northern, western
part is one of the fastest growing segments of the
companies
 Coffee consumption was promoted by creating awareness
among different segments of the population by
disseminating the positive health effects of coffee through
media and messages

◦
Cust om er
profile and
relat ed
inform at ion
for CCD

* source:
ht t ps://search.
ebshohost .com
Forecast sales in café/bars by subsect ors: unit s/out let s 2007-2012

*source: https://search.ebshohost.com
Forecast sales in café/bars by subsectors: % units/outlets growth 2007-2012

*source: https://search.ebshohost.com
Phase
 Future Plans
 We intend to open more outlets
in Mumbai –( Logitech Park-
Sakinaka, Mindspace- Malad,
Millenium Park-Navi Mumbai

 To start an exclusive wine and
cheese tasting segment

 To start “Pool” in the café to
attract more customers
CCD
 PORTER’S 5 FORCES MODEL

BARRIERS TO ENTRY

RGAINING POWER OF SUPPLIERS

DEGREE OF RIVALRY BARGAINING POWER OF BUYER

THREAT OF SUBSTITUTES
 Barriers to entry (moderate)
◦ Start up capital required to establish
◦ Industry is in growing phase
◦ Raw materials have to be imported
◦ Ambiance needs to be created
 Bargaining power of suppliers (moderate)
◦ The quality of chocolates, coffees and other ingredients required for
the preparations need to be imported
◦ The prices of cocoa have risen globally due to unavailability of the
commodity


 Bargaining power of buyers (low)

◦ People already have limited options (very few such lounges are open
late at night)
 Degree of rivalry (less)
◦
 Threat of substitutes (less)
◦ Since the ambiance also matters
◦
◦
SWOT Analysis
 Strength
◦ Limited options of such lounges available in the area so far
◦ Such cafes have started gaining popularity in the recent years
◦ The idea is youth oriented and the Powai area is youth populated
◦ Growing rate of chocolate and coffee comsumption
 Weakness
◦ Small target group (18-30)
◦ Stiff competition even among limited players
 Opportunity
◦ Has a lot of potential for growth and diversification
◦ Franchises, tying up with corporate officies and colleges
◦ Collaboration with international brands
◦
 Threat
◦ Licensing required
◦ Govt. policies
◦ The prices of cocoa have risen globally due to unavailability of the
commodity
Mocha
Theobrom a

CCD Cost a Coffee

Chocolat e Affairz

Barist a
 Hookah
Elect rical Hookah

Sugar Free Desert s

Nicot ine free hookah

Int ernat ional Coffees and Desert s
Market
 Leader- Mochas / CCD

 Follower- Timbactoo

 Challenger-


 Niche - Cad B / Chocolate Affair / Out of

the blue

 Mocha
CCD

French Loaf / Café Basilica