Marketing Plan
for
INTERNET CAF*S IN INDIA
Table Of Contents
1 Executive Summary 2
2 Situation Analysis 3
2.1 Market Summary 4
2.1.1 Market Demographics 5
2.1.2 Market Needs 6
2.1.3 Market Trends 7
2.1.4 Market Growth 9
2.2 SWOT Analysis 10
2.3 Competition 14
2.4 Services 14
2.5 Keys to Success 16
2.6 Critical Issues 16
2.7 Macro Environment 17
3.0 Marketing Strategy 17
3.1 Mission 18
3.2 Marketing Objectives 19
3.3 Financial Objectives 20
3.4 Target Marketing 20
3.5 Positioning 22
3.6 Strategy Pyramids 22
3.7 Marketing Mix 24
3.7.1 Services and Service Marketing 24
3.7.2 Pricing 24
3.7.3 Promotion 25
3.7.4 Service 26
3.8 Marketing Research 27
4.0 Financials, Budgets, and Forecasts 27
4.1 Break-even Analysis 28
4.2 Sales Forecast 29
4.3 Expense Forecast 30
4.4 Linking Sales and Expenses to Strategy 32
4.5 Contribution Margin 33
5.0 Controls 34
5.1 Implementation Milestones 35
5.2 Marketing Organization 36
5.3 Contingency Planning 37
Executive Summary
The goal of this marketing plan is to outline the strategies, tactics, and programs that will
make the sales goals outlined in this Internet Cafe business plan a reality in the year 2003
in few states in India. This plan is for Indian Markets only.
Internet Cafe, unlike a typical cafe, provides a unique forum for communication and
entertainment through the medium of the Internet. Internet Cafe is the answer to an
increasing demand. The public wants: (1) access to the methods of communication and
volumes of information now available on the Internet, and (2) a place to socialize and
share these experiences with friends and colleagues.
Marketing will play a vital role in the success of Internet Cafe. Internet Cafe must build a
brand around the services it offers by heavily promoting itself through local television,
radio, and print advertising. Marketing efforts are just beginning by the time a potential
customer enters Internet Cafe for the first time. A strong emphasis will be put on keeping
customers and building brand loyalty through programs focused on staffing, experience,
and customer satisfaction.
Target markets include:
Students from nearby housing centers.
Business people from the downtown business centers and professional buildings.
Seniors from nearby retirement facilities.
Family members People who have relatives abroad. This group is very large in few states
in India especially states like Kerala where minimum one member from each family living
abroad.
Situation Analysis
Internet Cafe opened its doors for business a little over a year ago. Business is good, and
customers have been impressed with our offerings, but we need to focus our efforts on
implementing the strategies, programs, and tactics outlined in the original business plan.
Differentiating ourselves from other more traditional cafes has given us the ability to
effectively compete on the beverage and pastry side of the business with the already
entrenched competition. Sales are brisk and in-line with projections.
The Internet services side of the business is rapidly being accepted by the local
community. Memberships are meeting the projections outlined in the business plan, and
sales of Internet services are meeting the goals forecast. Students love to gather for
late-night sessions, nearby seniors are getting a glimpse of what the Internet offers and
local business people love to stop by for a quick bite and an email check.
Market Summary
Internet Cafe is faced with the exciting opportunity of being the first-mover in the local
cyber-cafe market. The consistent popularity of coffee/tea, combined with the growing
interest in the Internet, has been proven to be a winning concept in other markets and will
produce the same results here.
All three target markets for the Internet Cafe service are growing at a relatively fast pace.
Were faced with a large number of potential customers, and were offering a needed
service.
Target Market Growth:
University students continue to grow at a steady pace, at nearly 7-10%
Office workers in the downtown area and nearby professional buildings continue to add
value, growing at 8%
Seniors are becoming an important part of downtown business, growing at almost 7%
Teens continue to play a major role in downtown foot-traffic, growing at 2%
The number of people going abroad is growing at 4%
Office workers – I have clubbed both workers group with people who have family
members abroad.
University Students School/university students. Most of the states in India provide almost
free education
Market Demographics
Internet Cafes customers can be divided into two groups. The first group is familiar with
the Internet and desires a progressive and inviting atmosphere where they can get out of
their offices or homes to enjoy a great cup of coffee/tea and Internet access. This group is
made up of students from the University of Oregon and business people from nearby
downtown offices and professional centers.
The second group is not as familiar with the Internet. Seniors represent a growing segment
of Internet users. They use the Internet to communicate with friends and family and they
will be regular users of the Internet Cafe service. Looking into the facts like 1) More
family members are going abroad 2) Owning a computer is very expensive, more family
members will get attracted to Internet cafes.
Market Needs
Factors, such as addiction, and historical sales data ensure that the high demand for
coffee/tea will remain constant over the next five years.
The rapid growth of the Internet and online services that has been witnessed worldwide is
only the beginning of a long-lived trend towards an economy built on the infrastructure of
the Internet. The potential growth of the Internet is enormous, to the point where one day, a
computer terminal with an online connection will be as common and necessary as a
telephone or toilet. This may be 5 or 10 years down the road, but for the next five years,
the online service provider market is sure to experience tremendous growth. Establishing
itself as the first cyber-cafe in the area, Internet Cafe will enjoy the first-mover advantages
of name recognition and customer loyalty. Initially, Internet Cafe will hold a 100 percent
share of the cyber-cafe market locally. In the next five years, competitors will enter the
market. Internet Cafe has set a goal to consistently maintain a market share of greater than
fifty percent.
Market Trends
The Internet has become a point of conversation in almost all social groups. People are
talking about sites they visited, business people are talking about Internet-based
businesses, and kids are talking about the latest Internet clubs and chat rooms. People like
to communicate their Internet experiences with their friends, colleagues, and family.
However, it can be difficult to do it in front of a computer terminal at the office or in the
family study. A comfortable place to gather and share these experiences is becoming a real
need.
Internet Cafe will provide:
A meeting place for business people interested in sharing their Internet-based business
ideas.
A social hub for students and young people interested in sharing a beverage and their
Internet experiences with friends.
A place for nearby seniors to gather and learn about the powers of the Internet and better
communication methods.
A stopping point for travelers in need of an Internet connection.
Meeting (email, chat or conference) place for family members.
A market survey was conducted in 2001. Key questions were asked of fifty potential
customers. Some key findings include:
35 subjects said they would be willing to pay for access to the Internet.
$1.50 an hour was the most popular hourly Internet fee.
24 subjects use the Internet to communicate with others on a regular basis.
Office workers – I have clubbed both workers group with people who have family
members abroad.
University Students School/university students. Most of the states in India provide almost
free education
Market Growth
The market for the services Internet Cafe will offer is growing rapidly. The cyber-cafe
hasnt come to many of the areas yet, but similar services are growing rapidly on a global
scale. Large cities that cater to large numbers of traveling business people and tourists
have been saturated with businesses offering the services Internet Cafe will offer. Business
people use the Internet services to catch up on email and communications with their
family, and tourists do the same. Our area supports a population that has many of the same
needs and interests of this larger group.
Most of the states in India offer free education right from school level to graduation level.
Students tend to have money and an interest in up-scale social centers. Internet Cafe will
advertise with radio and TV spots on local stations.
SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses Internet Cafe must address. It also allows us to examine the opportunities
presented to Internet Cafe as well as potential threats.
Internet Cafe has a valuable inventory of strengths that will help it succeed. These
strengths include: a knowledgeable and friendly staff, state-of-the-art computer hardware,
and a clear vision of the market need. Strengths are valuable, but it is also important to
realize the weaknesses Internet Cafe must address. These weaknesses include: a
dependence on quickly changing technology, and the cost factor associated with keeping
state-of-the art computer hardware.
Internet Cafes strengths will help it capitalize on emerging opportunities. These
opportunities include, but are not limited to, a growing population of daily Internet users,
and the growing social bonds fostered by the new Internet communities. Threats that
Internet Cafe should be aware of include, the rapidly falling cost of Internet access, and
emerging local competitors.
Strengths
1. Knowledgeable and friendly staff. Weve gone to great lengths at Internet Cafe to find
