katrina whitecavage lauren libor caleb svendsen brent jackson
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Katrina Whitecavage Lauren Libor Caleb Svendsen Brent Jackson. Why Australia?. Lauren Libor. Located in Pacific Ocean Independent Western democracy 20 Million in population Urbanized- 70%! Major cities: Sydney, Brisbane, Melbourne - PowerPoint PPT PresentationTRANSCRIPT
Katrina WhitecavageLauren Libor
Caleb SvendsenBrent Jackson
WHY AUSTRALIA?
Lauren Libor
DESCRIPTION OF AUSTRALIA Located in Pacific Ocean Independent Western democracy 20 Million in population Urbanized- 70%! Major cities: Sydney,
Brisbane, Melbourne Eastern/Southeastern
coasts heavily populated
AUSTRALIA’S INDUSTRIES Agriculture Mining Farming Tourism Manufacturing: 84% of imports
WHAT MAKES AUSTRALIA UNIQUE? Stunning natural beauty One of the cultural centers of the world Prime beaches draw surfers from around
the world Stable, growing economy Strong government High standard of living
Sydney Opera House
WHY KANGAROO KOFFEE? Australia has an established “coffee
culture” New image for Australia Large shopping centers and urban
areas Strong economy: luxury spending is still
common Perfect match for consumers because
of unique sensory experience Appeals to the Australian culture
THE KANGAROO MARKET
Katrina Whitecavage
CUSTOMER ANALYSIS
THE CUSTOMER “The people of Australia believe in
living their life to the fullest.” Australians enjoy a relatively affluent
lifestyle Sixty-seven percent of Australia is
composed of people ages 15 to 64. Sydney is home to four major
universities
THE CUSTOMER Australians consume 2.4 kilograms of coffee per
capita annually
Coffee slang, including “skinny cap” and “babycino”
COFFEE PARTIES! Rock’s Aroma
Festival A festival just to
celebrate coffee in Sydney
Millions come out to try coffee from many vendors
COMPETITION
STARBUCKSStrengths: “finest coffee
experience” $400 million in
revenue internationally known household term
synonymous with the word “coffee.”
partners with Telstra
Weaknesses: mass-produced,
machine-made coffee lack of personalization Starbucks closed 2/3
of their stores, 61 locations
“grab and go” mentality
GLORIA JEAN’SStrengths: “Australia’s premier
provider of specialty coffees… the ultimate coffee experience”
largest coffee company in Australia
friendly, neighborhood feel
respected, established, dynamic, and experienced
Weaknesses: atmosphere is very
homey and country-styled
OTHER COMPETITION Bambini Espresso Bar, in the business
district of Sydney Ibiza Café near the coast
Both have the distinctive advantage of being locally owned and tailored to a specific group of people in Sydney
Established customer loyalty
WHAT MAKES US SPECIAL?
Caleb Svendsen
COMPETITIVE ADVANTAGE “Rustic” Feel, Incorporating “Australian
Outback” Design Elements Modern Amenities Warm Colors A Fountain as the
Centerpiece An “Oasis of
Refreshment”
STRENGTHS AND FEATURES Focus on Espresso
Personalization Options A Variety of Baked Goods for Every Taste
Fresh Muffins, Pastries and Scones Every Day Free Wireless Internet
Partnering with Local ISP Telstra Pleasing Design
Clean and Open, Visually Interesting Relaxing Environment
Comfortable Lounge Areas
PRODUCT STRATEGY Attract Skilled Baristas Gain “Regulars” Differentiation Based On:
Superior Product Convenience Unique Atmosphere
Creating a “Coffee Experience”
RETURN ON INVESTMENT& CONCLUSIONS
Brent Jackson
REVENUES PER ITEM (5 YRS.)
Year 1 Year 2 Year 3 Year 4 Year 5
Regular Coffee 25/day 45/day 65/day 70/day 75/day
Hot Cocoa 8/day 14/day 20/day 22/day 25/day
Specialty Drinks 22/day 38/day 74/day 78/day 82/day
Snack Items 25/day 40/day 55/day 65/day 75/day
Gross Profit Per Store $ 131,429 $ 235,443 $ 426,221 $ 459,100 $ 496,300
# of stores 3 3 3 3 3
Total Gross Profit $ 394,286 $ 706,329 $ 1,278,664 $ 1,377,299 $ 1,488,901
OPERATING PROFITS (5 YRS.)
Year 1 Year 2 Year 3 Year 4 Year 5
Gross Profit (AU$) 394,286.25 706,329.00 1,278,663.75 1,377,299.25 1,488,900.75
SG&A Expenses
Employee Wages 385,152 438,795 526,956 542,766 559,050
Building Rent 102,960 102,960 102,960 118,404 118,404
Equipment Purchase 36,000
Depreciation of Equip. 7,140 7,140 7,140 7140 7140
Sales & Marketing Costs 15,000 15,000 15,000 15,000 15,000
Total SG&A Expenses 546,252 563,895 652,056 683,310 699,594
Operating Profit (loss) $(151,965.75) $142,434.00 $626,607.75 $693,989.25 $789,306.75
CONCLUSIONS Australia is an attractive market for
makers of gourmet coffee drinks There is significant competition, but it
is not insurmountable Australian coffee drinking patterns are
ingrained, and adaptations must be made to suit their preferences
RECOMMENDATIONS Purchase three local coffee shops in Sydney
Australia to establish the Kangaroo name and clientele
Invest approximately AU$50,000 in each of the coffee shops to convert them to Kangaroo style
Engage in advertising to popularize the new locations
Consider future expansions based on the success of the first three locations