Newinternationalmarketingprojectautosaved 120109085952 Phpapp01

S
2011
Caf Coffee Day
International Marketing Project on
A Coffee Shop Launch in Norwegian Market

Prepared By:
Chetan Panara
Submitted To:
Pro.Jitendra Sharma

Xcellon School of Business Management, Ahmedabad. Page 2

AN
INTERNATIONAL MARKETING PROJECT
REPORT ON
A COFFEE CAF LAUNCH
BY
CAF COFFEE DAY IN NORWAY
BY
CHETAN PANARA
SUBMITTED TO:
JITENDRA SHARMA
IN PARTIAL FULFILLMENT OF
INTERNATIONAL MARKETING COURSE IN
POST GRADUATE PROGRAM IN GENERAL
BUSINESS MANAGEMENT

Xcellon Institute of Business Management,
Ahmedabad
(2010 2012)


Declaration

This project report on Caf Coffee Day launch in Norwegian market. Project has been
submitted to Xcellon Institute-School of Business, Navarangpura, and Ahmedabad in
partial fulfilment of PGPGM Degree. Here by I, undersigns that this project report has
been completed by me under the guidance of Pro. Jitendra Sharma (Faculty:-International
Marketing, Xcellon Institute-School of Business Ahmedabad)
Study of this project Report is entirely resulting of my own efforts and research is original
in nature. This project Report is not submitted either in part of whole to any other institute
for any other degree.

Place: - Ahmedabad


Acknowledgement

I would like to hear fully acknowledge my gratitude and thanks to all the members who
took active part in accomplishing my project.
At the very outset, I wish to thank Prof. Jitendra Sharma, Who helped me to choose such
an interesting topic to work upon as a fully fledged project and guiding me at each step.
Interacting with him gave me a completely different view to look at a subject, throughout
its completion.
I would also like to thanks again Mr. Devang Patel, for guiding, introducing and teaching
me formal reports and showing me the direction at each step I make a mistake.
I am also thankful to all the faculty of my institute, who helped me in giving all the
required information in a very cooperative manner. The project would not have been
possible without the help of my friends and colleagues who have been patient enough with
me.


Table of Contents
Part 1: Country Analysis
History-------------------------------------------------------------007
Geography--------------------------------------------------------009
Culture-media----------------------------------------------------011
Norwegian people and nature---------------------------------016
Education and Heath-------------------------------------------018
Political condition-----------------------------------------------020
Economy----------------------------------------------------------024
Industry-----------------------------------------------------------034
Immigration------------------------------------------------------038
Foreign Relation------------------------------------------------039
Some IMP fact about Norway---------------------------------040
Part 2: Company selection and analysis
History-Background--------------------------------------------046
Caf format-------------------------------------------------------048
Department at Caf Coffee Day-------------------------------052
7ps of Marketing------------------------------------------------056
SWOT analysis of Caf Coffee Day--------------------------058
Competitor and Competition-----------------------------------059
Compensation and Benefits------------------------------------061
Major responsibilities-------------------------------------------063
Seven steps of service-------------------------------------------068
Product at Caf Coffee Day-----------------------------------071


Advertising Campaign-------------------------------------------074
Conclusion------------------------------------------------------- 078
Part 3: Norway Coffee Industry Analysis
Industry analysis-------------------------------------------------079
The Norwegian market structure------------------------------082
Environment------------------------------------------------------084
Five force analysis-----------------------------------------------086
Major competitor-------------------------------------------------089
Competitive analysis---------------------------------------------095
Target market analysis------------------------------------------100
Marketing tactics-------------------------------------------------106
Marketing Mix Tools--------------------------------------------109
Budget--------------------------------------------------------------114
Conclusion--------------------------------------------------------118
Bibliography------------------------------------------------------ 119


PART-A: Country Analysis
Country: Norway
Introduction

History
The Viking period (9th to 11th centuries) was one of national unification and expansion.
The Norwegian royal line died out in 1387, and the country entered a period of union with
Denmark. By 1586, Norway had become part of the Danish Kingdom. In 1814, as a result
of the Napoleonic wars, Norway was separated from Denmark and combined with
Sweden. The union persisted until 1905, when Sweden recognized Norwegian
independence.
The Norwegian Government offered the throne of Norway to Danish Prince Carl in 1905.
After a plebiscite approving the establishment of a monarchy, the Parliament unanimously
elected him king. He took the name of Haakon VII, after the kings of independent Norway.
Norway was a no belligerent during World War I, but as a result of the German invasion


and occupation during World War II, Norwegians generally became sceptical of the
concept of neutrality and turned instead to collective security. Norway was one of the
signers of the North Atlantic Treaty in 1949 and was a founding member of the United
Nations. The first UN General Secretary, Trygve Lie, was a Norwegian. Under the terms
of the will of Alfred Nobel, the Storting (Parliament) elects the five members of the
Norwegian Nobel Committee who award the Nobel Peace Prize to champions of peace.
From 1945 to 1962, the Labour Party held an absolute majority in the parliament. The
government, led by prime minister Einar Gerhardsen, embarked on a program inspired
by Keynesian economics, emphasizing state financed industrialization, cooperation
between trade unions and employers' organizations. Many measures of state control of the
economy imposed during the war were continued, although the rationing of dairy products
was lifted in 1949, while price control and rationing of housing and cars continued as long
as until 1960.
The wartime alliance with the United Kingdom and the Norway was continued in the post-
war years. Although pursuing the goal of a socialist economy, the Labour Party distanced
itself from the communists (especially after Soviet seizure of power in Czechoslovakia in
1948), and strengthened its foreign policy and defence policy ties with the U.S. Norway
received Marshall Plan aid from the Norway starting in 1947, joined the OEEC one year
later and became a founding member of the North Atlantic Treaty Organization (NATO) in
1949.
Around 1975, both the proportion and absolute number of workers in industry peaked.
Since then labour intensive industries and services like factory mass production and
shipping have largely been outsourced.
In 1969, the Phillips Petroleum Company discovered petroleum resources at
the Ekofisk field west of Norway. In 1973, the Norwegian government founded the State
oil company, Statoil. Oil production did not provide net income until the early 1980s
because of the large capital investment that was required to establish the country's
petroleum industry.
Norway was a founding member of the European Free Trade Area (EFTA).
Two referendums on joining the European Union failed by narrow margins in 1972 and
1994.In 1981, a Conservative government led by Kre Willoch replaced the Labour Party


with a policy of stimulating the stagflated economy with tax cuts, economic liberalization,
deregulation of markets, and measures to curb the record-high inflation (13.6% in 1981).
Norway's first female prime minister, Gro Harlem Brundtland of the Labour party,
continued many of the reforms of her right-wing predecessor, while backing traditional
Labour concerns such as social security, high taxes, the industrialization of nature, and
feminism. By the late 1990s, Norway had paid off its foreign debt and had started
accumulating a sovereign wealth fund. Since the 1990s, a divisive question in politics has
been how much of the income from petroleum production the government should spend,
and how much it should save.
In 2011 Norway suffered a pair of devastating attacks which struck the government
quarter in Oslo and a summer camp of the Labour party's youth movement at Utya island,
resulting in 77 deaths and 96 wounded. The man behind the attacks, Anders Behring
Breivik, who held far-right beliefs and claimed the attacks were "atrocious but necessary"
in order to defend Europe from what he viewed as an excessive presence of Muslims on
the continent, has been arrested and can be charged with crimes against humanity.
Geography
Norway comprises the western part of Scandinavia in Northern Europe. The rugged
coastline, broken by huge fjords and thousands of islands, stretches 25,000 kilometres
(16,000 mi) and 83,000 kilometres (52,000 mi) including fjords and islands. Norway
shares a 1,619-kilometre (1,006 mi) land border with Sweden, 727 kilometres (452 mi)
with Finland and 196 kilometres (122 mi) with Russia at the east. To the north, west and
south, Norway is bordered by the Barents Sea, the Norwegian Sea, the North
Sea and Skagerrak.
At 385,252 square kilometres (148,747 sq mi) (including Svalbard and Jan May), (and
323,802 square kilometres (125,021 sq mi) without) much of the country is dominated by


mountainous or high terrain, with a great variety of natural features caused by
prehistoric glaciers and varied topography. The most noticeable of these are the fjords:
deep grooves cut into the land flooded by the sea following the end of the Ice Age. The
longest is Sognafjord at 204 kilometres (127 mi). Sognafjord is the world's second deepest
fjord, and the world's longest. Hornindalsvatnet is the deepest lake in all Europe.
[44]
Frozen
ground all year can be found in the higher mountain areas and in the interior of Finn
mark county. Numerous glaciers are found in Norway.
Norway lies between latitudes 57 and 81 N, and longitudes 4 and 32 E.
The land is mostly made hard granite and gneiss rock,
but slate, sandstone and limestone are also common, and the lowest elevations contain
marine deposits. Because of the Gulf Stream and prevailing westerlies, Norway
experiences higher temperatures and more precipitation than expected at such northern
latitudes, especially along the coast. The mainland experiences four distinct seasons, with
colder winters and less precipitation inland. The northernmost part has a mostly
maritime subarctic climate, while Svalbard has an Arctic tundra climate.
Because of the large latitudinal range of the country and the varied topography and
climate, Norway has a larger number of different habitats than almost any other European
country. There are approximately 60,000 species in Norway and adjacent waters
(excluding bacteria and virus). The Norwegian Shelf large marine ecosystem is considered
highly productive.
Climate
The southern and western parts of Norway experience more precipitation and have milder
winters than the south-eastern part. The lowlands around Oslo have the warmest and
sunniest summers but also cold weather and snow in wintertime (especially inland).
Because of Norway's high latitude, there are large seasonal variations in daylight. From
late May to late July, the sun never completely descends beneath the horizon in areas north
of the Arctic Circle (hence Norway's description as the "Land of the Midnight Sun"), and
the rest of the country experiences up to 20 hours of daylight per day. Conversely, from
late November to late January, the sun never rises above the horizon in the north, and
daylight hours are very short in the rest of the country.


The oil and gas industries, manufacturing and road traffic are the most important sources
of CO
2
emissions. The NO
x
emissions are still above the target in the Gothenburg Protocol
because of growth in the emissions from manufacturing industries, energy supply,
shipping, motor equipment and oil and gas activity.
The manufacturing industry, wood-burning and road traffic are important sources of
emissions of several heavy metals and organic environmental toxins. Wood-burning and
road traffic lead to exceeding of air quality criteria set for towns and urban settlements.
Old wood-burning stoves emit about six times as much airborne particulate matter as new
stoves. Emissions of SO
2
were in 2010 below the target for 2010 in the Gothenburg
Protocol despite increased emissions during the last year
Biodiversity
The total number of species include 16,000 species of insects (probably 4,000 more
species yet to be described), 20,000 species of algae, 1,800 species of lichen, 1,050 species
of mosses, 2,800 species of vascular plants, up to 7,000 species of fungi, 450 species
of birds (250 species nesting in Norway), 90 species of mammals, 45 fresh-water species
of fish, 150 salt-water species of fish, 1,000 species of fresh-water invertebrates and 3,500
species of salt-water invertebrates. About 40,000 of these species have been described by
science. The red list of 2008 encompasses 3,886 species.
Seventeen species are listed mainly because they are endangered on a global scale, such as
the European Beaver, even if the population in Norway is not seen as endangered. There
are 430 species of fungi on the red list; many of these are closely associated with the small
remaining areas of old-growth forests. There are also 90 species of birds on the list and 25
species of mammals. 1,988 current species are listed as endangered or vulnerable as of
2008; of these are 939 listed as vulnerable (VU), 734 species are listed as endangered
(EN), and 285 species are listed as critically endangered (CR) in Norway, among these are
the gray wolf, the arctic fox (healthy population on Svalbard) and the pool frog.
The largest predator in Norwegian waters is the sperm whale, and the largest fish is
the basking shark. The largest predator on land is the polar bear, while the brown bear is
the largest predator on the Norwegian mainland, where the common moose (also known as
the "European Elk") is the largest animal
Natural Resources


Petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites, nickel,
fish, timber, hydropower
Culture and media
Norwegians' interest in culture is growing. Surveys show that women are more interested
in cultural offerings than men, particularly with regard to ballet, opera and the theatre. Men
have the greatest interest in sporting events. The majority of cultural offerings are taken up
much more frequently by persons with higher education
The culture sector includes areas that cover music, dramatic art, libraries, museums and
not least media, which is steadily growing. Media is a collective term for newspapers,
radio, TV, films and videos, books and the weekly publications.
Broadcast Media
state-owned public radio-TV broadcaster operates 3 nationwide television
stations, 3 nationwide radio stations, and 16 regional radio stations; roughly a
dozen privately-owned television stations broadcast nationally and roughl y
another 25 local TV stations are available; nearly 75% of households have
access to multi-channel cable or satellite TV systems; 2 privately-owned radio
stations broadcast nationwide and another 240 stations operate locally (2008)
Internet Hosts: 3.352(million 2010) Number in world: 27
Internet Users: 4.431(million 2010) Number in World: 53
Religion
Norway has an official Protestant State Church based on the Evangelical-Lutheran
religion. Although there is no separation of Church and State, all inhabitants have the right
to exercise their religion freely in accordance with a 1964 amendment to the Constitution.
Eight out of ten ethnic Norwegians are members of the State Church of Norway.
Norwegian religious expression is largely private; whereas most individuals state that
religion is important to them, this is not generally expressed through active religious
participation in organized communities. While roughly 80% of the population belong to
the Church of Norway, only 10% attend church services or other Christianity-related
meetings more than once a month.


Some 5.9% of the population are members of other religious communities, while 6.2% do
not belong to any religious community at all. The largest religious and life-stance
communities outside the Church of Norway are the Humanist Movement, represented by
the Norwegian Humanist Association (63 000), Islam (60 000), the Pentecostal Movement
(45 000), the Roman Catholic Church (40 000 or more), the Evangelical-Lutheran free
church (20 000), Methodists (13 000) and several lesser free churches.
The conversion of Norway to Christianity started in around 1000 and was a result of
contact with Christian Europe through a combination of trade ties and Viking raids.
Missionary activities conducted by the Anglo-Saxon church as well as from Germany and
Denmark also helped Christianity to gain prominence over the gods of traditional Norse
mythology and Smi nature worship.
Christian Norway belonged to the Roman Catholic Church until the Reformation of 1537.
A ban on lay preaching was lifted in 1842, giving rise to several free church movements
and a strong lay organization within the Church of Norway. As a result, Norwegian church
society became closely associated with a conservative Christian interpretation and an
active missionary movement.
Festivals
Festivals take place throughout the year, covering all areas of culture including music,
film, literature and various forms of art. Norway Festivals is the organisation that helps
to coordinate and develop all the Norwegian festivals.
Molde International Jazz Festival, the Quart Festival and Norwegian Wood are all
international music festivals attracting renowned performers from all over the world.
There are three travelling cultural institutions in Norway: the Norwegian national touring
theatre Riksteatret, the national touring concerts Rikskonsertene and the national touring
exhibitors Riksgalleriet. These institutions are all funded by the government and perform
across the country.
Gender equality
o 4 out of 10 students at universities and university colleges are men
o 2 out of 3 women are employed
o 40 per cent of employed women and 14 per cent of employed men work part-time


o 7 out of 10 managers are men
o 89,3 per cent of children aged 1-5 had a kindergarten place in 2010
o 40 per cent of board members in public limited companies are women. In private
limited companies, 17 per cent of the board representatives are women
o 6 out of 10 Storting representatives are men

Parental benefits and paternity leave
Did you know that Norwegian parents have the right to a paid leave of absence during the
first year of a childs life? To encourage more men to assume a greater share of care-
giving responsibilities, 10 weeks of parental leave are reserved for fathers.
The aim of the parental benefit scheme is to help parents to combine working life and
family life. Thanks to the scheme, Norway tops European statistics on birth rates and
participation of women in the workforce.
Norwegian parents may choose to take a total of 46 weeks of leave at 100 per cent pay or
56 weeks at 80 per cent pay

The paternal quota works
The paternal quota was introduced in 1993 to encourage more fathers to participate in
caring for their child during its first year of life. Today 10 weeks of the parental leave
period are reserved for fathers. If a father does not use his quota, these weeks will be
forfeited.
Norway was the first country in the world to establish such a scheme.The results have
been striking. In 2008, 90 per cent of fathers used their paternal quota. Moreover, a
growing number of men are choosing to take more leave than their quota. In 2008, 16.5 per
cent of fathers extended their leave beyond the reserved 10 weeks, compared to 11 per cent
in 2000.
Strengthening the role of fathers


The paternal quota gives men an opportunity to develop a stronger bond to their children
from birth. The impact of this extends far beyond the paternity leave period. More and
more, men are demanding equal parenting rights, for example in custody cases. A white
paper on male roles and gender equality was published in 2009. It is the first of its kind in
the world.
Debate on sharing leave
Parental leave is still a hot topic of debate. The Equality and Anti-discrimination Ombud,
Beate Gangs, has proposed that the parental leave period be divided into three, with one-
third reserved for the mother, one-third reserved for the father and one-third to be used as
desired. As of yet few political parties have shown their support for this solution.
There is, nevertheless, broad political agreement that the paternal quota is an excellent
instrument for encouraging more men to take paternity leave. The quota was therefore
extended from six weeks to 10 weeks in 2009.


Norwegians People and nature
Norwegian adoration of nature is a vital ingredient in the country's national identity. Over
half of the population have ready access to a cabin, the schools arrange annual obligatory
ski days, and most postcards produced by the tourist industry depict nature scenes rather
than cultural attractions.
Most Norwegians live in single-family homes and large apartments, equipped with every
thinkable electric appliance. Nevertheless, great value is attached to closeness to nature
and a simple lifestyle. Thousands of Norwegians spend weekends and holidays at the
family cabin, which ideally speaking should be tucked away in the wilderness surrounded
by the pristine landscape of the Norwegian mountains.
The typical Norwegian cabin is built of logs and consists of a living room, one or more
bedrooms, an outdoor lavatory, woodshed and small kitchen. Heating is preferably by
wood, although kerosene is permissible, just barely. Oil lamps and candlelight provide
light on dark winter nights. This simplicity is not due to a desire to save money. In fact a
mountain cabin in an attractive location is a costly investment, no matter how simply they
are furnished. The absence of modern comforts is founded on ideological and moral, rather
than economic, reasons. (It must be added here that many Norwegians have a cabin by the
coast, usually in an area with a mild climate. Here, completely different rules apply: these
cabins can be comfortable second homes.)
Hiking and going for walks are a way of getting out of the house, as Norwegians put it;
you leave civilization and all its comforts and depravity behind to get in touch with your


inner self and feel like an authentic person. Hikes and walks can be taken on a weekday
after work, but are usually a weekend activity. A normal yardstick for gauging the success
of a walk is the number of people you meet along the way. The fewer the people, the more
successful the walk was.
Adoration of nature in Norway has many facets. It is official and has a political aspect;
unspoiled nature is a national symbol. It is private and is associated with family rituals,
such as cabin life. But it is also personal and individual, and in this area veneration of
nature has a clear sprinkling of religion. The state religion in Norway is the Lutheran faith,
but reverence for nature is also very strongly ingrained. Instead of renouncing it as
heathenish, Lutheranism has consciously embraced it - among other things, Christian
books published in Norway often display Norwegian nature scenes on the cover.
Moreover, the outdoors is often recommended by state church clergy as a great place for
ssreligious meditation and reflection. In this way, Christianity, which in principle places a
sharp dividing line between culture and nature (nature is evil, people are by nature sinful),
avoids a direct confrontation with the strong Norwegian ideology that culture and nature
are two sides of the same coin.


Education
Children and youths have a right and duty to complete a compulsory education, as do
adults. Young people and adults who have completed their compulsory education have a
right to further education that results in qualifications leading to higher education or
employment. With the right qualifications, pupils can go on to take a university or
university college education.
Adult education statistics encompass adult education at primary and upper secondary
level, Norwegian language studies for adult immigrants and courses organised by folk
high schools, study associations and distance learning institutions
o Private kindergartens account for 47 per cent of all kindergartens (2010).
o 2.7 per cent of primary school pupils are in independent schools (2010/11).
o Upper secondary education is split into 12 education programmes; 3 to prepare for
higher education and 9 vocational.
o 22 850 qualifying exams and apprentice final examinations were sat in 2009/2010.
o 57 per cent of the pupils at upper secondary schools complete their education
during the standard period of time, while 70 per cent finish within 5 years (2010).
o Close to 28 per cent has higher education. 60 per cent of today's students are
women (2010).
o 36 800 completed a higher education of a lower or higher degree in Norway in
2009/10.
o In 2009/10, 249 200 graduates in Norwegian tertiary institutions achieved on
average 43 credit points (ECTS).
o There are 504 200 participants on courses organised by study associations. 36 200
of these have offers of public or other approved exams or certifications (2010).


The information society
o In the early 1990s, use of the Internet by the public became common. Today,
surfing the net and e-mailing are part of our everyday lives. Information and
communication technology (ICT) evolves quickly and is now used by enterprises,
the public sector and households. The information society in Norway is
characterised by the following:
o An increasing number of services are being offered via the Internet. Only 11 per
cent of the population did not use the Internet during the last 3 months. Especially
older women are left outside the digital world.
o 73 per cent of households have broadband, and this is most common in households
with high incomes.
o The share of households in Norway with access to a PC and the Internet is about
the same as in the other Nordic countries, but Norwegian enterprises use ICT to a
lesser extent than enterprises in the neighbouring countries.
o In 2008 the information sector had a turnover and value added of NOK 272 and 98
billion respectively.
o The information sector had 112 000 employees in 2008.

Standard of living
Norway has been ranked the best country to live in by the United Nations Development
Programme (UNDP) several times during the past decade. In addition, the World
Economic Forums Global Gender Gap Report has ranked Norway one of the worlds
leading countries in closing the gender gap between men and women.
Today Norwegians are living longer than ever before. A girl born in 2008 can expect to
live to nearly 83 years of age, while a boy can expect to reach just over 78 years of age.
The general health of the population is very good, and the infant mortality rate is
extremely low. Literacy is virtually 100per cent and most of the adult population has


completed upper-secondary schooling. There is no extreme poverty in Norway, and the
relative poverty level is low compared to other OECD countries.
The GDP per capita is high, and wealth is relatively equally distributed among the
population. There is a high degree of gender equality at all levels of society. In keeping
with its welfare orientation, Norway has implemented a universal, public health service
financed by tax revenues and a national insurance scheme, applicable to all citizens and
residents that provide a host of social benefits.
Both public and private consumption have increased enormously since 1900, and the
wealth of the last few decades is primarily due to the discovery and exploitation of subsea
oil and natural gas deposits in the North Sea. As a result of modernisation and
urbanisation, the stable, traditional settlement patterns of the past have been replaced by a
trend towards greater mobility, in which people more frequently move and change jobs.


Political Condition
Until the 1981 election, Norway had been governed by majority Labor Party governments
since 1935, except for three periods (1963, 1965-71, and 1972-73). The Labor Party lost its
majority in the Storing in the 1981 elections. Since that time, minority and coalition
governments have been the rule.
From 1981 to 1997, governments alternated between Labor minority governments and
Conservative-led coalition governments. The first government coalition led by Christian
Democrat Kjell Magne Bondevik came to power in 1997, but fell in March 2000 over the
issue of proposed gas-fired power plants, opposed by Bondevik due to their impact on
climate change. The Labor Party's Jens Stoltenberg, a Brundtland protg, took over in a
minority Labor government but lost power in the September 2001 election when Labor
posted its worse performance since World War I. Bondevik once again became Prime
Minister, this time as head of a minority government with the Conservatives and Liberals
in a coalition heavily dependent upon the right-populist Progress Party.
The September 2005 elections ended the Bondevik government, and the Labor party came
back with its most substantial victory in years, securing 60 of the 169 seats in Parliament.
While this election result once more made Labor the undisputed heavyweight in
Norwegian politics, Stoltenberg, chastened by his previous stint as the head of a minority
government, reached out to the far left Socialist Left party and agrarian Centre party to
form a coalition government that commanded a majority of seats in Parliament. The
current government is the first majority government in Norway in over 20 years, but the
governing coalition has had to bridge substantial policy differences to build this majority.
Principal Government Officials
King--Harald V
Prime Minister--Jens Stoltenberg
Minister of Foreign Affairs--Jonas Gahr Stre
Minister of Defense--Anne-Grethe Strm Erichsen


Government
Norway is a constitutional monarchy that divides responsibility between the parliament
(Storting) and the King's Council of State, which consists of a prime minister and other
ministers of state. The Storting, which consists of 165 representatives, is the supreme
authority and controls finances. Representatives are elected by direct vote for a four-year
term. One-quarter of the representatives serve in the upper chamber (Lagting), and the rest
form the lower chamber (Odelsting). Local government is represented by 450
municipalities in eighteen counties.
Leadership and Political Officials
Leaders are supposed to be articulate and dedicated spokespersons for the policies of their
parties. The major parties, listed roughly in order of their popularity in recent elections, are
the Norwegian Labor Party (Arbeiderpartiet), a socialist party affiliated with labor unions;
the Progress Party (Fremskrittspartiet), a nationalistic party; the Conservative Party (
Hyre ); the Christian People's Party (Kristelig Folkepartiet), which supports the use of the
principles of Christianity in politics; the Center Party (Senterpartiet), which originally
focused on agrarian issues; the Socialist Left Party (Sosialistisk Venstrepartiet); and the
Liberal Party (Venstre), a reform party. Coalition governments that rely on the cooperation
of two or more parties are not uncommon. Party leaders receive considerable media
attention and are supposed to be accessible to the electorate. They are not likely to respond
to offers of gifts or special privileges.
Social Problems and Control
The judicial system has three levels: the district (Herredsrett) and city
courts (Byrett), the High Court (Lagmannsrett) with six jurisdictions in the nation; and the
Supreme Court (Hyesterett). Each municipality has a conciliation council (Forliksrd),
where civil cases go first for mediation and possible out-of-court settlement. If this effort
fails, the case can be taken to the district or city court. An "ombud" system has been
established to hear complaints about actions by government agencies and private firms.
The crime rate is about ten reported crimes per hundred thousand population. While the
rate of crimes against persons is increasing, most crimes involve property.


Military Activity
National military service is required, with the option of community service for
conscientious objectors. The nation has an army, navy, and air force; is a member of the
North Atlantic Treaty Organization (NATO); and participates in peacekeeping operations.
Norway spends 3 percent of the gross national product on defense.
Social Welfare and Change Programs
After 1945, the National Insurance Scheme was developed to manage and allocate
resources for health, old age, disabilities, widows, widowers, children, and single parents.
Approximately 15 percent of government expenditures are for health services.
Nongovernmental organizations play an important role in supplementing this welfare
system in partnership with the government. Special attention is given to organizations that
support disadvantaged citizens through subsidies granted by local governments.
Nongovernmental Organizations and Other Associations
Approximately 62 percent of the population belonged to at least one voluntary
organization in 1995. Historically, voluntary organizations were first developed in the
middle of the nineteenth century as agents of change to support the social movements that
were sweeping the country. Voluntary organizational life has been based on unpaid
participation, personal membership, and commitment to egalitarian democratic principles.
While participation in religious and temperance organizations has declined, membership
has increased in organizations devoted to recreation and outdoor sports.


Economy
Norway is one of the world's richest countries in per capita terms. It has an important stake
in promoting a liberal environment for foreign trade. Its large shipping fleet is one of the
most modern among maritime nations. Metals, pulp and paper products, chemicals,
shipbuilding, and fishing are the most significant traditional industries.
Norway's emergence as a major oil and gas producer in the mid-1970s transformed the
economy. Large sums of investment capital poured into the offshore oil sector, leading to
greater increases in Norwegian production costs and wages than in the rest of western
Europe up to the time of the global recovery of the mid-1980s. The influx of oil revenue
also permitted Norway to expand an already extensive social welfare system. Norway has
established a state Petroleum Fund that exceeded $132.6 billion as of December 2004. The
fund primarily will be used to help finance government programs once oil and gas
resources become depleted. Norway is currently enjoying large foreign trade surpluses
thanks to high oil prices. Unemployment remains currently low (3%-4% range), and the
prospects for economic growth are encouraging thanks to the government's stimulative
fiscal policy and economic recovery in the Norway and Europe.
Norway voted against joining the European Union (EU) in a 1994 referendum. With the
exception of the agricultural and fisheries sectors, however, Norway enjoys free trade with
the EU under the framework of the European Economic Area. This agreement aims to
apply the four freedoms of the EU's internal market (goods, persons, services, and capital)
to Norway. As a result, Norway normally adopts and implements most EU directives.
Norwegian monetary policy is aimed at maintaining a stable exchange rate for the krone
against European currencies, of which the euro is a key operating parameter. Norway is
not a member of the EU's Economic and Monetary Union and does not have a fixed
exchange rate. Its principal trading partners are in the EU; the Norway ranks sixth.
Energy
Offshore hydrocarbon deposits were discovered in the 1960s, and development began in
the 1970s. The growth of the petroleum sector has contributed significantly to Norwegian
economic vitality. Current petroleum production capacity is more than 3 million barrels per


day. Production has increased rapidly during the past several years as new fields are
opened. Total production in 2003 was about 263 million cubic meters of oil equivalents,
over 63% of which was crude oil. This represents a slight decline in crude oil production
over the past year, accompanied by sharp increases in gas and liquefied natural gas (LNG)
production. Hydropower provides nearly all of Norway's electricity, and all of the gas and
most of the oil produced is exported. Production increased significantly in the 1990s as
new fields come on stream.
Norway is the world's third-largest oil exporter and provides much of western Europe's
crude oil and gas requirements. In 2003, Norwegian oil and gas exports accounted for 56%
of total merchandise exports. In addition, offshore exploration and production have
stimulated onshore economic activities. Foreign companies, including many American
ones, participate actively in the petroleum sector.
Transportation
o Airports
98 (2010)
Country comparison to the world: 61
o Railways:
Total: 4,169 km
Standard gauge: 4,169 km 1.435-m gauge (2,784 km electrified) (2010)
o Roadways:
Total: 93,247 km (includes 253 km of expressways) (2008)
Other economic data:
GDP (Purchasing power parity)
$255.3 billion (2010 estimates)


GDP (real growth rate)
0.4% (2010)
-1.4% (2009)
0.8% (2008)
GDP by sector
Agriculture: 2.5%
Industry: 39.4%
Services: 58.1% (2010)
Labour Force
2.602 million (2010 est.)
country comparison to the world: 108
Labour force by occupation
agriculture: 2.9%
industry: 21.1%
services: 76% (2008)

Unemployment rate:
3.6% (2010) 3.2% (2009) country comparison to the world: 28
Investment:
20.3% of GDP (2010) country comparison to the world: 88
Budget:
Revenues: $235.5 billion
Expenditures: $191.9 billion (2010 est.)
External Economy
Norway trades extensively with other countries. In addition, we have major investments


abroad and other countries also invest a lot in Norway. The large revenues from export of
goods and services mean that we can buy a great deal of what we need from abroad, at the
same time saving for the future. This has not always been the case. For a large part of last
century, we had to import more than we managed to sell, and we were constantly
borrowing money in order to cover the deficit. Although we still have debt abroad, other
countries now owe us far more than we owe them. This development is largely due to the
fact that Norway sells vast quantities of oil and gas to other countries. Norway has sold
more than it has bought form other countries since 1990. The surplus was at its peak in
2008.
o Crude oil and natural gas are the goods that make up the largest part of the export
revenue. In second place we find fish and preparations thereof.
o The largest part of Norway's export of goods in 2010 went to European countries.
The UK receives most goods from Norway, caused by their import of oil and gas.
If this export is excluded, Sweden is the largest importer of Norwegian goods.
o The three largest import countries, excluding oil and gas, are Sweden, Germany
and China.
o Norway also trades in services extensively. International shipping contributes the
most to the revenues from the trade in services.
o At the end of 2010, other countries owed Norway NOK 2.358 billion. This makes
up round NOK 478 000 per capita in Norway.


This is gross domestic product of Norway.


Norway is has more export basket than import basket in service sector.

Norway imported road vehicles, miscellaneous manufactured articles, petroleum,
petroleum products, electronic machinery, metalliferous

Norway mainly exports metals, fish, petroleum product, gases, manufactured general
electric machinery and equipment.


Balance of trade of Norway.


Establishments and enterprises
Norwegian business and industry is made up of 350 000 private sector enterprises
(including publicly-owned enterprises, excluding the primary industries). There has been a
steady increase in the number of enterprises since these statistics were first published in
2001.
o Two out of three Norwegian enterprises are small enterprises in which the owner is
the sole employee.
o There are 1.6 million employees in private establishments and almost 770 000
employees in establishments in the public sector as at 1 January 2010.
o 44 per cent of employees in private establishments are in enterprises with more
than 100 employees. The enterprises with more than 100 employees constitute only
0.5 per cent of the number of enterprises.
o The majority of enterprises and employees are found within wholesale and retail
trade, repair of motor vehicles and motorcycles.
o The most common organisational form is private limited company, followed by
sole proprietorship. As many as nine out of ten enterprises have one of these two
organisational forms.
o The majority of newly established enterprises are within Professional, scientific
and technical activities.
o Newly established enterprises in Sogn and Fjordane have the highest survival rate,
and enterprises in Oslo the lowest.
o One out of three sole proprietorships is established by a woman.
o The share of female board representatives in private limited companies was 17 per
cent as of 1 January 2010.
o The share of female board representatives in public limited companies was 40 per
cent as of 1 January 2010.


o
o Key figures:
o 357 581 enterprises (2009)
o 99.5 per cent of enterprises have less than 100 employees
o 481 720 establishments as at 1.1.2010
o 5 013 bankruptcies in 2009; 38 per cent more than 2008
o 42 069 newly established enterprises in 2009, 9.7 per cent less than 2008
o 53 per cent newly established enterprises in 2003 survived for a year and 32 per
cent were still in business after five years
o 48 per cent of turnover in 2008 was generated in enterprises with 100 or more
employees

Income
In an economy where the majority of goods and services can be bought, our level of
income has a great bearing on how we live. In order to comment on the economic living
conditions of the population, the fact that many persons form part of a household where
both incomes and expenses are shared must be taken into consideration. Households in
Norway receive cash incomes from a variety of sources: wages, income from self-
employment, property income, different types of transfers, such as social security benefits,
unemployment benefit, child allowance, cash for care, dwelling support, supplementary
benefit etc.

o The majority of households have had good income growth in recent years.
Measured in terms of fixed prices, the median income increased by 33 per cent
from 2000 to 2009.
o The most important source of income for households is wages. On average, income
from wages accounted for 65 per cent of the total income in 2009.
o In 2009, the 10 per cent of the population with the highest income had 20.2 per
cent of the total income in Norway. Among the 10 per cent with the lowest income,
the corresponding share was 4.0 per cent.


o The low income group is strongly overrepresented by recipients of the basic
pension, supplementary benefit recipients, immigrants, persons with longstanding
illness, the long-term unemployed and young single persons.
Prices
A price index is an average (often weighted) of prices in a specific class of goods or
services, and is used to measure price changes over time, or between different
geographical regions. Price indices measure prices in different areas of the economy.
Statistics Norway's price indices are used in planning public-sector activities, when signing
contracts, pay settlements, forecasting and analysis, preparing the National Accounts and
so forth.
The Consumer Price Index (CPI) describes the monthly change in the price of goods and
services for an average household in Norway. The percentage change in the Consumer
Price Index is a measure of inflation.
o For comparing price changes between countries, a Harmonised Index of Consumer
Prices (HICP) is used, while the European Purchasing Power Parity (PPP) survey
shows the differences in price levels between countries.
o The House Price Index measures the average change in value of all housing in
Norway. The Price Index for New Detached Houses measures the trend in house
builders' house prices including VAT.
o The Construction Cost indices measure the overall price trends for materials,
labour, machinery and other factors involved in building and construction activity.
o The Producer Price Indices measure the average changes in the prices domestic
producers receive for goods or services they sell to the Norwegian and foreign
markets.
o The Price Index of First-hand Domestic Sales measures the price change of
different goods in the domestic and import markets at the point of their first
Norwegian transaction.


Industries
Wholesale and retail trade

o Turnover in the wholesale and retail trade has steadily increased in the last decade.
Turnover in the retail stores has increased by more than 60 per cent. Mail order
houses and sale via the Internet have had a significant increase in turnover during
the last decade; it is more than twice as high in 2009.
o In 1993, turnover for the 35 731 retail stores in Norway totalled NOK 163.8 billion,
and the total number of employed persons was 152 448. In 2009, the number of
establishments increased to 38 267, while the number of employed persons was
213 503. Turnover increased to NOK 386 billion.
o In 1958, the average household spent almost 40 per cent of its budget on food and
about 13 per cent on clothes and shoes. The share of expenses for food and drink
has fallen, and from 2008-2009, the average household spent just over 11 per cent
of its budget on food and more than 5 per cent on clothes and shoes.
o Since 1945, the total consumption of alcohol has increased sixfold. In 1945, the
average person (aged 15 and over) drank 1.68 litres of pure alcohol. By 2009,
consumption had increased to 6.68 litres of pure alcohol.
o The decline in the world economy lead to a drop both in exports and imports of
goods in 2009. As an example the passenger cars import to Norway was about 140
300 last year - this is about 28 per cent less than in 2008 and 13 per cent less than
in 2008. Especially imports of German, American and British cars fell. On the
contrary, when our neighbouring country Sweden is concerned imports of cars
increased.


Construction and housing
Construction
The construction industry is a cyclical industry. From 1966 to 1988, employment in private
construction businesses increased from around 80 000 to 126 000. In the four years from
1988-1992, however, employment dropped by 30 per cent, back to the level of the late
1960s.
Following a relatively quiet period around the turn of the millennium, the construction
industry has experienced unprecedented growth in recent years. In 2008, the number of
employed increased to 186 000 (including employees in the public sector). In addition to
this figure comes foreign labour.

The building stock
o In January 2008, the number of buildings in Norway was 3.8 million, of which 1.44
million or 38 per cent were residential buildings.
o There are 2.3 million dwellings in Norway, of which 1.2 million are detached
houses (January 2008). The number of residents per dwelling was 2.3 in 2001.
Almost eight out of ten households own their dwelling.
o There are almost 418 000 holiday houses in Norway.
o Almost 1.2 million buildings, or 30 per cent of all buildings, are garages,
outhouses, annexes etc. joined to or next to dwellings and holiday houses.
Tourism
In 2010 Norwegians had 22.9 million trips with at least one overnight stop.
33 per cent of these trips were outbound. The most popular destinations abroad were
Sweden, Denmark and Spain.
o Women had more often holiday-trips than men in 2010.


o On our outbound trips, we prefer going by air and accommodate on hotels,
while on domestic trips we prefer private car and private accommodation.
o Number of guest nights at Norwegian hotels, camping-sites, holiday dwellings
and hotels were 28.5 millions in 2010.
o Germans, Danes, Swedes, Dutch and the British are the most frequent guests in
Norway. They had almost two out of three foreign guest nights at collective
accommodation establishments in Norway in 2010.
o Accommodation enterprises had a turnover of about NOK 21.0 billion and food
and beverage service activities had a turnover of about NOK 36.0 billion in
2009.
o Non-resident guests in Norway spend most money on passenger transport
services.
o The travel industry accounts for approximately 3.3 per cent of the Gross
Domestic Product (GDP), and 6.3 per cent of total employment in 2009.
o Foreign tourists had over 7.9 million overnight stays in Norway in 2010, of
which German tourists accounted for 21 per cent. Danes and Swedes
accounted for 12 %. Norwegians aged 16-79 travelled on a total of 22.9
million overnight-trips in 2010. 17.6 of these were holiday trips
o The average cost of a hotel room was NOK 859 in 2010.
o Overall, tourists spent NOK 106 billion in Norway in 2010. Foreign tourists
spent NOK 31 billion.
o In 2009, there were 13 999 local kind-of-activity-units in the Norwegian
tourism industry. They had a total turnover of NOK 89 billion.

Oil and gas

o Investments: In the last years the investments exploration and in fields on stream


have increased to record high levels. The most common investments activities are
exploration- and production drilling, upgrading and measures to improve the
degree of recovery. The greatest fields being developed now are Skarv in the
Norwegian Sea and Gja in the North Sea.
o
o Production and reserves: The production of gas and oil (including NGL and
condensate) ended at 61 Sm3 million oil equivalents (o.e.) in the first quarter of
2011. This is a decrease by five percent compared the first three months of 2010.
o The international oil market: The average Brent Blend crude price in 1st quarter
2011 was 24 per cent higher than in 4th quarter 2010. The main driver for the
increase was geopolitical concerns by oil market participants regarding the
escalating unrest in the Middle East and North Africa.
o Key figures and employees: The gross value of production and value added in the
Norwegian oil and gas industry decreased by 20 and 27 per cent respectively from
2008 to 2009. The decrease came as a consequence of lower oil and gas prices and
a continuing reduction in oil production.
o


Immigration

Immigrants and those born in Norway to immigrant parents constitute 600 900 persons or
12.2 per cent of Norway's population. Broken down by region, 287 000 have a European
background, 210 000 persons have a background from Asia, 74 000 from Africa, 19 000
from Latin-America and 11 000 from North America and Oceania.

The majority of the immigrants are from Poland, Sweden, Germany and Iraq. Thirty-four
per cent of the immigrants have Norwegian citizenship. Between 1990 and 2009, a total of
420 000 non-Nordic citizens immigrated to Norway and were granted residence here. Of
these, 26 per cent came as refugees, 26 per cent were labour immigrants and 11 per cent
were granted residence in order to undertake education. Twenty-three per cent came to
Norway due to family reunification with someone already in Norway, and 16 per cent were
granted residence because they had established a family.
.
The number of immigrants residing in Norway varies with the government's immigration
policy, labour market needs and shifting global crises. Immigration increased during and
after the Balkan wars of the 1990s. In recent years, the majority of new immigrants have
come to Norway as a result of family immigration.

Statistics Norway has published figures on those born outside Norway since the Population
Census of 1865. Back then, 1.2 per cent of the total population of 1.7 million were born
abroad; the majority in Sweden. By 1920, the immigrant share of the total population had
increased to 2.8 per cent. During the interwar period there was little immigration, and by
1950 only 1.4 per cent of the population was born abroad. Statistics Norway does not
register individuals by religion or membership in life stance communities. Therefore, we
do not know who or how many persons in Norway are Buddhists, Muslims, Catholics, etc.
However, we do have information about the number of members of the Norwegian Church
or other religious communities that receive central government subsidies.
Key figures per 01.01.2011:


There are 500 000 immigrants and 100 000 Norwegian-born persons with immigrant
parents living in Norway. Together these two groups represent12.2 per cent of Norway's
population.
Immigrants and Norwegian-born persons with immigrant parents are represented in
Norwegian municipalities. Oslo has the largest proportion with 28 per cent, or 170 200 people
Almost half of all the immigrants come from Asia, Africa or Latin-America.
2 in 10 immigrants have lived in Norway for more than 20 years, and 4 in 10 have lived here
for 4 years or less.
54 per cent of all Norwegian-born persons with immigrant parents have parents with an Asian
background. 17 per cent are 20 years or older.

Foreign Relations
Norway supports international cooperation and the peaceful settlement of disputes,
recognizing the need for maintaining a strong national defence through collective security.
Accordingly, the cornerstones of Norwegian policy are active membership in the North
Atlantic Treaty Organization (NATO) and support for the United Nations and its
specialized agencies. Norway also pursues a policy of economic, social, and cultural
cooperation with other Nordic countries--Denmark, Sweden, Finland, and Iceland--through
the Nordic Council.
In addition to strengthening traditional ties with developed countries, Norway seeks to
build friendly relations with developing countries and has undertaken humanitarian and
development aid efforts with selected African and Asian nations. Norway also is dedicated
to encouraging democracy, assisting refugees, and protecting human rights throughout the
world.


Some very useful information for industrialist who want
to do business or want to launch product in Norway
Facts and Statistics
Location: Northern Europe, bordering Finland 729 km, Sweden 1,619 km, Russia 196 km
Capital: Oslo
Population: 4,574,560 (July 2004 est.)
Ethnic Make-up: Norwegian, Sami 20,000
Religions: Evangelical Lutheran 86% (state church), other Protestant and Roman Catholic
3%, other 1%, none and unknown 10%
The Norwegian Language
Over 99% of the 4.3m population of Norway speak the official language, Norwegian.
Norwegian has 2 written forms, "Bokmal" (Book Norwegian) and "Nynorsk" (New
Norwegian) and they enjoy the same legal recognition, although "Bokmal" is increasingly
more common. Minority languages include Finnish, spoken by 0.2% of the population,
mainly in the northern region of Finnmark, as well as "Sami", a language closely related to
Finnish, spoken by 0.9% of the Norwegian population.
Norwegian Society & Culture
The Family
Many families consist mainly of the nuclear family.
Marriage is not a prerequisite to starting a family.
Many couples live together without legalizing the arrangement with marriage. Therefore, it
is best not to make presumptions about people's marital status.


Women
Women are highly respected in business and generally receive equal pay and have access
to senior positions. Norwegian women expect to be treated with respect in the
office. Businesswomen are direct and can be skilled negotiators. Women may take up to
one year's maternity leave at 80% pay or 10 months at 100% pay. If a woman decides to
stay home with pre-school children she receives a monthly stipend from the government.
Jante Law
The poet Aksel Sandemose put Jante Law into words and they convey an important
element of Norwegian culture: humility. Jante's Law teaches people to be modest and not
'think big'. It is demonstrated in most people's refusal to criticize others. Norwegians try to
see all people as being on equal footing. They do not flaunt their wealth or financial
achievements and look askance at those who do. The tenets of Jante Law are:
You shall not think you are special.
You shall not believe you are smarter than others.
You shall not believe you are wiser than others.
You shall not behave as if you are better than others.
You shall not believe that you know more than others.
You shall not believe that you can fix things better than others.
You shall not laugh at others.
You shall not believe that others care about you.
You shall not believe that you can teach others anything.
Egalitarianism
Norwegians view themselves as egalitarian people whose culture is based on democratic
principles of respect and interdependence.
They like people for themselves and not for what they do for a living their professional


accomplishments or how much money they earn.
They have simple tastes and are not prone to ostentation or excessive showiness.
They pride themselves on being honest and sincere in their personal relationships.
Meeting and Greeting
Greetings are casual, with a firm handshake, direct eye contact, and a smile.
Norwegians are egalitarian and casual; they often introduce themselves with their first
name only.
In some circumstances people may use the honorific title "Herr" (Mr.) or "Fru" (Mrs.) and
their surname.
You can wait to be invited before moving to first names although most people will start
with this.
Shake hands and say good-bye individually when arriving or departing.
Shake hands with people on a first come first served basis.
Gift Giving Etiquette
If invited to a Norwegian's home, bring flowers, chocolates, pastries, wine, or imported
spirits to the hostess.
Flowers may be sent the morning of a dinner party so they may be displayed that evening.
Do not give carnations, lilies or white flowers as they are used at funerals.
Do not give wreaths, even at Christmas.
Do not give even numbers of flowers.
A houseplant is well received in the winter months.
A bouquet of freshly picked wildflowers is always appreciated. Gifts are opened when
received.
Dining Etiquette
Invitations are generally given verbally.
Norwegians are punctual in both business and social situations.
Confirm the dress code with your hosts.
Offer to help the hostess with the preparation or clearing up after a meal is served.


Do not discuss business. Norwegians separate their business and personal lives.
Reciprocate any invitation.
Table manners are more formal than one might expect of a culture that is informal and
egalitarian.
Hold the fork in the left hand and the knife in the right while eating.
Do not begin eating until the hostess starts.
Most food, including sandwiches, is eaten with utensils.
When you have finished eating, place your knife and fork across your plate with the
prongs facing down and the handles facing to the right.
The male guest of honour, generally seated to the left of the hostess, thanks the hostess on
behalf of the other guests with the phrase "takk for matten" (thanks for the meal).
The host makes a small speech and offers the first toast.
Toast the host/hostess during the meal.
Women may offer toasts.
Toasts are made with alcoholic beverages, but not beer.
When someone is being toasted, raise your glass, look at the person, take a sip, look at the
person again, and then return the glass to the table.
Women must put down their glasses first after a toast.
Business Etiquette & Protocol in Norway
If you were to think about the most important cultural attributes that you will see operating
in business in Norway, they will be:
Informal style
Individual interests
Transactional relationships
Direct communication
Building Relationships & Communication
Norwegians are transactional and do not need long-standing personal relationships in order
to conduct business.
Nonetheless, they prefer to do business with those they trust, so it is important that you
provide information about yourself and the company you represent prior to meeting your


business colleagues.
Relationships develop slowly and depend upon the other person being professional and
meeting all agreed upon deadlines.
Giving a well-researched presentation indicates that you are serious about conducting
business.
The basic business style is relatively informal.
Norwegians respect confident, self-assured businesspeople.
They are excellent time managers who do not require face-to-face contact in order to
conduct business.
If you are like-minded, the relationship will develop over time.
Appearing overly friendly at the start of a relationship may be viewed as weakness.
Maintaining eye contact while speaking is interpreted as sincerity
Norwegians are direct communicators.
They have no difficulty telling their colleagues that they disagree with something that has
been said.
Their communication is straightforward and relies on facts.
They are conservative and deliberate speakers who do not appreciate being rushed.
They are scrupulous about honesty in communication, often to the point of pointing out the
negatives in their own proposals in greater detail than the positives.
Norwegians are not emotive speakers and their body language is subtle.
Business Meeting Etiquette
Appointments are necessary and should be made as far in advance as possible.
Appointments may be made in writing or by telephone.
If writing, address the letter to the head of the division, even if you do not know the
person.
Punctuality is imperative since it indicates trustworthiness.
If you are delayed even 5 minutes, it is polite to telephone and explain the situation.
Arriving late without prior notice can damage a potential relationship.
It is often difficult to schedule meetings during July and August, which are popular
vacation times; during the two weeks before and after Christmas; and during the week
before and after Easter.
Meetings are rather informal.


Send an agenda before the meeting so that your Norwegian colleagues can be prepared.
There is not much small talk. Norwegians prefer to get to the business discussion quickly.
Presentations should be precise and concrete, and backed up with charts, figures and
analysis.
Avoid hype or exaggerated claims in your presentation.
Leave time for Q&A at the end of a presentation. Norwegians do not interrupt and will
save their questions until you have finished speaking.
Negotiating
Decisions are consensus driven.
Expect decisions to take time as your colleagues must weigh all the alternatives.
Present a firm, realistic, and competitive initial price and expect a minimum of bargaining.
Price is often the most important deciding factor.
Norwegians do not generally give discounts, even to good customers or for large orders.
Norwegians are detail oriented.
Maintain eye contact while speaking.
Negotiations are frank.
Avoid high-pressure sales tactics.
It is imperative to adhere to deadlines and commitments. If you do not, you will not be
considered trustworthy, which will destroy the business relationship
New concepts should be shown to be high quality, practical, and already market tested.
Do not interrupt others while they are speaking.


PART-2
PRODUCT AND COMPANY SELECTION AND ANALYSIS

Product: Coffee Shop
Company: Caf Coffee Day

History and Background
Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia that is
owned by a sister concern and from 11,000 small growers. It is one of Indias leading
coffee exporters with clients across USA, Europe & Japan. With its roots in the golden soil
of Chickmaglur, the home of some of the best Indian Coffees and with the vision of a true
entrepreneur nurturing it, Coffee Day has its business spanning the entire value chain of
coffee consumption in India.
Its different divisions include: Coffee Day Fresh n Ground (which owns 350 Coffee bean
and powder retail outlets), Coffee Day Xpress (which owns 251 Coffee Day Kiosk),
Coffee Day Take away (which owns 7000 Vending Machines), Coffee Day Exports and
Coffee Day Perfect (FMCG Packaged Coffee) division


Caf Coffee Day (CCD) pioneered the caf concept in India in1996 by opening its first
caf at Brigade Road in Bangalore. Till about the late 1990scoffee drinking in India
was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop
visitors. As the pure (as opposed to instant coffee) coffee caf Culture in
neighbouring international markets grew, the need for a relaxed and fun hangout for
the emerging urban youth in the country was clearly seen.
Recognizing the potential that lay ahead on the horizon, Caf Coffee Day embarked on a
dynamic journey to become a large organized retail caf chain with a distinct brand
identity of its own. From a handful of cafs in six cites in the first 5 years, CCD has
become Indias largest and premier retail chain of cafes with 251 cafes in 58 cities around
the country.
Cafe Coffee Day introduced the caf culture in India with its first cafe at Brigade Road in
Bangalore in1996.There has been no looking back for their company from then till now,
infect they have grown from strength to strength.
Cafe Coffee day is the regular meeting place for 18 to 35year olds, both male and
female, who are waited on by friendly and informed staff, and are offered the best made,
hot or cold , in an invigorating ambience.
They provide invigorating ambience and excellent customer service clubbed with excellent
coffee to their customers. Each cafe depending upon its size attracts between 400 to800
customers daily.
The following are ABCTCL 6 divisions:
o Exports - India's largest coffee exporters. Currently export over 30000 tonnes of
green coffee per annum, i.e. 15% of Indias coffee exports. They have
also ventured into specialty coffee exports.
o Coffee Day Fresh and Ground- Major Player in the roast &ground
filter coffee segment. It provides a unique assortment of blends at affordable
prices. The coffee is freshly ground in front of the customer and sold to him.
o Cafe Coffee Day It is a place where customers come and rejuvenate themselves.
It is a meeting place for the young and the young at heart. In the caf Hot and Cold
coffee as well as merchandise are sold to the customers.
o Coffee Day Vending To serve the man on the move who though hurry does not
have to compromise on quality of coffee he drinks. Coffee Day has its
vending machine placed in vendor outlets in major cities.


o Coffee Day Express Bridges the need gap between the leisurely cuppa and
the bite at the caf and a quick drink at the vending point. In this segment you will
notice kiosks strategically positioned where a customer can not only drink
coffee but also grab a quick bite on the move.
o Coffee Day 'Perfect'- For mass-in-home consumption section where filter coffee is
consumed everyday. The filter coffee is sold in packaged form to the customers.
CAF FORMATS

Caf Coffee Day has been experimenting with caf formats for quite sometime. Backed
by the motivation of providing customers with exciting choices as well as constantly
redefining the caf experience, CCD has ventured into the following formats: Music
Cafs provide customers with the choice of playing their favourite music tracks on the
Digital Audio Jukeboxes installed at the caf! There are around 85 cafes with such
jukeboxes. 32 cafes also provide customers with the visual treat of watching their favourite
music videos by means of Video Jukeboxes.
Book Cafs offer the perfect solution to people who think that the coffee experience is
incomplete without browsing through the bestsellers or reading a classic. CCDs book
corners accentuate the age-old combination of coffee and books. This exciting concept
has been successfully tested at 15 cafes in 12 cities across India and the numbers are set to
grow exponentially. CCD has tied up with English Book Depot, one of Indias leading
book distributors for placement and rotation of reading materials appealing to Caf Coffee
Days discerning customers.
Highway cafs presents the traveller en route not only with good coffee and scrumptious
snacks amidst great ambience but also with clean restrooms to get rid of that weariness
from the road!
Lounge cafs at Hauz Khas, Delhi and Southern Avenue, Kolkata (Southern Avenue) and
Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the lively
ambience and comfort of a caf. With exquisite interiors, exotic menu and thematic music,
CCD Lounge offers a whole new experience to the connoisseur while assisting the latter
through its team of hostesses who are poise and style incarnate and are looked upon as
fashion icons.


Garden cafs combine the joy of rejuvenating amidst verdant landscapes and pots of
coffee.
Cyber cafs combine the urge to surf, & not to mention get connected through the internet
while enjoying perfectly brewed cups of coffees, both domestic as well as International
blends! These are of course just milestones. CCD is about to launch Sports Caf, Fashion
Caf & Singles Caf..
LOGO

New logo Old logo
For a brand to stand out and be successful there has to be a personal commitment from
staff at all levels. The target customers must identify with it. It should be vibrant and have
a life of its own. Liveliness, growth, fun and passion depicts our brand, our customers,
our staff and our future this is embodied in our design and colour.
Our LOGO colours embody:
Red Square= Leadership, passion
White Swirl = Purity of purpose, invigorating properties of coffee
Green Stroke = 125 years of coffee growing heritage of this vertically integrated Group


SEGMENTATION STRATEGY:
Caf Coffee Day has its main consumer base in the age group of 15-29 years. Its customers
are mainly middle class and upper middle class youth who are upwardly mobile.
CCD seeks to target not just the youth but anyone who is young at heart.
Brand Equity's Most Trusted Brands 2008 survey. - In the food services category,
CCD ranks No 2
McDonalds stands at No. 3
Barista lags at No 5

The most profitable segment is the 20-24 age brackets. These customers can afford to visit
CCD on a regular basis and have a habit-forming attitude towards CCD.

Age Profile of the Customer

BUSINESS ASSOCIATION
CCD has emerged as an interactive alternative media for brands to communicate with the
young at heart.
Other media, such as electronic, print and outdoor, offer brand communication through
visual and audio modes to a large section of the populace, both relevant and irrelevant.
Caf Coffee Day offers a much more interactive, targeted communication, sometimes
adding even a taste dimension to a brand idea!


Various in-caf collaterals used to impart visibility to a brand inside a caf or to add the
element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets,
Brochures, Coasters, Drop boxes, Contest Forms, Stirrers, and Standees etc.
Over the years, CCD has successfully promoted a number of brands/products/events
through various innovative tactics and promo ideas. Cashing in on its mass captive
audience
AWARDS AND ACCOLADES
Cafe Coffee Day was named Food Services Retailerof the Year and Exclusive Brand
Retailer of the Year at the 1st ICICI Bank Retail Excellence Awards functionin 2005.
Cafe Coffee Day was rated the No. 3 food services brand in Business World and Brand
Equity surveys in 2004. Cafe Coffee Day was ranked as the 3rd best" Retail F 6t B"
chain in India in the Brand Equity survey in 2004
Mr. V.G. Siddhartha, Chairman (Amalgamated Bean Coffee Trading Company Limited)
received the Economic Times - Entrepreneur of the year 2003 "award.
afe Coffee Day has had a hat trick victory in the India Barista Championship. For 3
years in a row, 2002, 2003, 2004 CCD has won all the top awards and its representative
has gone on to represent India at World Barista Championships, winning silver medal in
2002 and 5th place in 2004 for the country.

DEPARTMENTS AT CAF COFFEE DAY
BUSINESS DEVELOPMENT:
The team decides upon a suitable site where the cafes can be set up. They identify,
shortlist, and finalize a site by negotiating with property owners. A significant effort is
involved in getting legal clearances and statutory compliances. After all formalities are
completed, the site is handed over to the projects team.


PROJECTS:
The team comprises of some of the best designers who ensure that the coffee culture is
spread across the country through beautiful outlets. All new cafes are built with a
standardized design and the look of the caf is in sync with the brand positioning. They
aim to build cafes in the shortest possible time, at the least possible costs to capital outlay.
A recent innovation is the Lounge cafes which are set up in Delhi, Bangalore, Hyderabad
and Kolkata.
OPERATIONS:
This team achieves their sales objectives and is responsible for the daily running of their
cafes in a profitable manner. Customer interaction is very important for this team, as they
are the ones who interface with the customer and provide them with a satisfactory service
and product experience. Caf managers train all their employees who are involved in day-
to-day operations. The caf staffs are their brand ambassador. The brand image of caf
coffee day is and will be reflected through them by the way they dress, behave and carry
themselves , both within the organization and outside. They are the face of the company
since they will be the first point of interaction with the customer.
FOOD AND BEVERAGES {F & B}:
CCD is a lot more than coffee. Apart from serving the best coffee in the country they also
serve a wide assortment of savories and desserts. The various coffee concoctions that they
serve are the creations of their F&B team. They also ensure the highest level of hygiene
and food quality. They impart training to the team on the preparation of the best quality of
coffees and food at their cafes. The F&B team sources and manages vendors who supply
food to the cafes.
MARKETING:
The marketing team is responsible for the brand positioningand all brand building
activities that result in increased sales and greater visibility. They are also responsible for
the various sales promotion activities and tie-ups. This team designs and manages the
merchandise category, which is displayed and sold at their cafes. They constantly track
loyalty programs and promotions at the cafes to help minimize sales. The caf citizen
program is a unique customer loyalty tool which helps us to create new customer and
retain existing ones by rewarding them with handsome points which can be earned and
redeemed at the cafes.
HUMAN RESOURCES AND TRAINING:


The HR team deals with all matters pertaining to people within their team. They are
responsible for recruitment and selection at all levels from team members to the
management staff. They are responsible for employee salaries, career development and
counselling. Constant efforts are made for employee up gradation in terms of improving
skills and job satisfaction to meet the aspirations of all employees.
ACCOUNTS:
They look after the day to day accounting and financial activities and also provide them
with the financial reports, which will help them, find out the profitability of the outlet.
They help them reduce the costs and ensure compliance and fiscal discipline at the cafes.
MANAGEMENT INFORMATION SYSTEM:
Their function is mainly to update the point of sale software and the caf website and
provide MIS reports to aid management. They also look into any other system
malfunctioning, repairs, and replacements at cafes and offices. The caf staff is trained on
the billing software by this team. Their new initiative is the phased roll out of the Wi Fi
point of sales billing system.
SUPPLY CHAIN MANAGEMENT:
This is the team which ensures that all stock keeping units of items used in the caf are
received at stores from vendors and distributed to the cafes on time. They receive store
orders and maintain the inventory of stock keping units so that cafes do not run out of
critical supplies at any point.
Business development team:
Caf Coffee Day have a department-the business development team- who are in touch
with a lot of property owners who are interested in franchising and licensing CCD. They
normally take up places on long lease.
Company finance
CCD is a privately held company. The group turnover is expected to touch about Rs three
billion now. It was Rs two and half billion last year.
Advertisement department
The advertisement department tied up with various companies to promote CCD. They also
tied up with a channel called Zee English with a ground programme for a popular show
called Friends. All the six lead characters were shown often visiting a coffee shop and a lot
of youth like watching the programme. That is why they had a contest running where you


can win Friends' merchandise. The linkage was that it was that it is a youth based
programme and it had a coffee house.
They were also involved in a lot of ticket sales in quite a few events, Enrique being one of
them. they were involved in WWE, Elton John ticket sales. These acts are very much
appreciated by the consumers.
The ticket sale is the organisers' benefit. They need to tell people where the tickets are
available and single Caf Coffee Day logo says it all.
CCD always ask for a certain amount of tickets around which they have a contest. Couples
can win ticket for free. This in turn raises the awareness level as cafe staff approaches the
consumers to inform them about the contest. There is not a better publicity mechanism
then the guy who is serving you telling you about the same.
Besides that they also tie up lot of the youth brands. Their promise to the customer is that a
lot can happen over a coffee. So every time they try to ensure something good happens to
the customer. So they have a contest going on with Levis, another one with Scooty, and
latest contest with Liril.
CCD still doesn't believe in mass media promotions. But they want to be involved in all
the areas of serious consumer passion. They are doing it with music. About 80 per cent of
their cafs have a juke box and a few of their cafes are now book cafes.
Next big consumer passion is Bollywood, so they have decided to be associated with
movies. they had a Hindi movie Bas Yun Hi and a couple of Telugu and Tamil films with
prominent Cafe Coffee Day brand placement. Later they took a conscious decision of
being seen in certain movies like Khakee and Main Hoon Na and Bluffmaster being the
recent hit.
Another placement area that happened accidentally was with HDFC. They wanted to
promote their debit card and they choose us. So all the 21 cafes had debit card machines,
just during that month. The ad was shot in a Cafe Coffee Day premises.
A lot of serials are shot in Cafe Coffee Day. Recently, Kahaani Ghar Ghar Kii was shot
but they have no prominent tie ups.
What they are offering is just a location to shoot in. They do charge a very small amount,
which is the direct revenue loss for that period.
They have done ads but all through barter deals. If they get a good deal from any other
media, they will definitely go in for a marketing deal. But as an advertisement option or as
marketing spend; they are not looking at mass media.


Quality checks
Checks take place all the time and in several aspects. The operational in-charge will go
around checking business, record keeping, and service and check the feedback forms. The
food in-charge will look at the way food is being stored, coffee is being made, what is the
time take to extract the coffee and so on. Marketing person will go about checking
displays, how the merchandise is displayed.


7ps of Marketing
Product
Wide range of products appealing to Indian coffee and snack lovers
Indian taste
Eatables adapted to Indian taste buds like samosa, biryani, masala sandwich, tikka
sandwich etc. Indian taste along with classic coffee
Merchandising includes funky stuff like t-shirts, caps etc.
Price
Major customer -15- 29 yrs,
Price ranges - 20 to 200.
Minor changes (majorly - government taxes)
Place
Strategically located outlets (High Street/ Family Entertainment Centres) Promotion
C.C.D. does not look at mass media as a viable area of advertising
Television (Zee English called Friends, Channel [V]s Get Gorgeous)
Tickets Sales (IPL)
Movies (Main Hoon Na, Kyun Ho Gaya Na, etc)
Sales Promotion
(Offer coupons, Gifts vouchers, Caf Citizen Cards)
Caf Beat- an in-house magazine.
Tie-up with World Space & Micro sense to provide satellite connectivity
Process
Order process - Based on services (Customer read menu and order).
Flexible delivery process (Customer can go directly, take the order placed or order
delivered on his table).


People
People at C.C.D. believe that People are hired for what they know but fired for how
they behave
Motivation and personal skill are laid emphasis upon.
Physical Evidence
Logo, Colours, Images
RED signifies leadership, vitality and passion . The GREEN signifies coffee growing
heritage and the coffee plantations that they own. WHITE SWIRL signifies purity of
purpose, invigorating properties of growing coffee.
Caf - larger than the text inside the logo box.
Signifies that Caf Coffee Day pioneered the caf concept in India way back in
1996.C.C.D. will like to own the word caf in the minds of its customers.
Dcor & Architecture
Literature New Logo
Dress Code


SWOT ANALYSIS OF CAF COFFEE DAY
Strength
Excellent brand name and brand visibility
Huge young crowd as target group
Excellent ambience and service
Over 1000 outlets and 300,000 visitors per day
It produces/grows the coffee it serves hence reducing the cost
Products of extremely good quality and taste.
Its a youth oriented brand , hence huge potential since 40 % population is below 20
It produces/grows the coffee it serves hence reducing the cost.
USP of brand is its considered a highly affordable brand.
Weakness
Crowd management
Improper sitting arrangement
Lacks strength to maintain brand loyalty
Follow the competitor strategy
Weak brand image and lacks strength to maintain brand loyalty
Poor ambience and decor. CCD outlet served prime space for advertising and
promotions
Many of the CCD stores are incurring loses due to wrong site selection.
Opportunities
Introduce cheaper versions of coffee
Tap the smaller towns/cities
Merchandising.
Tie ups with other companies for promotion
Coffee cafe industry is one of the fastest growing industries in Asia.
More people like to visit CCD for informal meetings.
CCD has gone international, and is planning to attract many new international markets,
hence gaining international recognition


Threats
Entry of foreign players like star bucks
Dependent on Govt commodity rates
Large unorganized market
Competition with other coffee cafes like Barista, Mochas.

Competitor
Barista-
This is the closest competitor to Caf Coffee Day in the Indian market.. But Barista is
often viewed as a place to unwind after a hard days work or an ideal setting for a business
meeting.
Caf Mocha-
This aims at providing a level of experience to the consumer which is hard to imitate..
Mocha calls itself a coffee shop for the soul.
Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in South India.

CAF COFFEE DAY IN COMPETITION
If you are talking about Cafe Coffee Day as meeting place then the park bench is their
competitor, if you are talking about in terms of food and chain then McDonalds is a
competitor and so are other coffee chains like Barista And Mocha. In fact they are
aiding each other in creating and growing the coffee culture. They are not trying to be
some one else. They are not trying to be an upper class coffee shop where you can
walk in only if you have certain amount of money in your pocket. These are the upper
end coffee shops that have hookahs and the works.
They are about an every day hang out. They are about being the third most frequented
place after home and workplace or college. So they are like the coffee chains overseas
but with about affordable fun. They have a distinct identity; they are about coffee and
about hanging out and about nice time spend.


HYGIENE & FOOD HANDLING
Employees use tongs or wear gloves to handle food items. They cannot USE BARE
HANDS.
Cutting Boards and knives to be washed and wiped dryevery hour.
They always have to use clean and dry plates and bowls, cutlery while serving food.
Clean the refrigerators before opening, and while closing.
Cannot use chipped plates, cups.
Cant open the mineral water bottle, tomato sauce sachets, before and also at the time of
service
The racks (where crockery are kept) should always be clean.
Pantry area should be clean and dry all the time.
Food Usage:
Use first in rust out method.
Order on a day-to-day basis.
No food should be kept beyond the shelf life.
The display has to be clean all the time.
Only the fresh food received has to be used for display.
Stack foods neatly on display plates.
All the food, which is supposed to be microwave, has to have a paper underneath and
then transferred to a new plate.
All items stored at room temperature to be covered at all times either by a toed cover or
wrapped in cling film.
All the cakes will be cut when they are received in the morning by the cafes.
A clean knife dipped in hot water and then wiped to be used to cut the cake. Rinse the
knife after each cut with hot water.
The appropriate cutlery and accompaniments have to be provided along with the food.
The food should not be heated along with the cling wrap.
The food has to be taken care of while packing up the food for parcel order.
Thumb rule to be followed while storing food in the coolers. (Display as well as back
up ones) (All the pastries on the top shelf the vegetarian Savories on the centre and the
non-vegetarian Savouries on the bottom shelf.)
Reject food items which appear damaged while receiving food.
Date/Colour code stickers should be placed on all food.


COMPENSATION & BENEFITS
PAY PERIOD:
Caf coffee days employees are paid on a monthly basis. One shall receive ones pay by
the seventh working day of the subsequent month. One can access salary slip by logging
onto cafcoffeeday.com/attendence, when the window opens click on the GO button.
One will have to enter the user name and password. Ones employee code is the user name
and password by default. Once login they can change the password by using the change
password option.
MEDICAL INSURANCE POLICY:
Caf coffee day had a tie-up with insurance agencies with policies such as the group
personal accident insurance and group health insurance policy. This is only applicable to
employees who are conformed in the organization. Details of the same can be availed from
HR department.
STATUTORY DEDUCTIONS:
EMPLOYEE PROVIDENT FUND:
All full time employees who are appointed on the companys rolls are eligible for the
provident fund schemes, which is a social security fund payable to on retirement. As per
the provisions, employees must contribute 12% of their basic salary and an equal
contribution will be made by the employer.
The nomination form {Form 2} is filled at the time of joining. Yearly returns will be
provided. Please collect PF number from regional HR resource. It may take around 15- 20
days from the time of filling and submitting the form.
EMPLOYEES STATE INSURANCE:
This is provided to employees whos gross salary is Rs 7500/- p.m. or less and the benefits
provided under the scheme are for sickness, maternity etc. the employee has to contribute
1.75% of his gross salary and the employer contributes 4.75% of the employee salary
under the scheme. The completed ESI form along with two post card sized full length
photographs should be submitted for ESI registration. Please collect ESI card number from
regional HR resource.


HOW A CAF COFFEE DAY CAF IS MAINTAINED?
INTERIORS:
Wall finishes are washable. Clean them whenever necessary.
Do not hang merchandise from electrical conducts on ceiling. These are of a clip-
on type and loading them will pull them off from their saddles.
Do not keep wipe pads on the counter top.
If terra cotton pots are being used in caf, they are to be painted with red oxide
paint once in 3 months.
Do not force shut the glass doors, but allow it to close of its own accord. Forcing
the door shut damages the spring inside.
Do not place merchandise on top of wall visuals/mirrors.
Outdoor caf floors need to be washed more often.
LIGHTS:
Red cube lights and cove lights above the servey are to be kept switched on always.
GENERATOR:
Check the water/oil/fuel levels in DG regularly.
Always allow a fifteen second time gap between switching on the DG and flipping
the change over switch.
OUTDOOR:
Umbrellas should be opened fully and made taut. They should not sag.
Umbrellas and awnings should be washed with water once a week.
Doormats have to be cleaned at regular intervals with water.
REWARDS
The management believes that rewards offered by the company should be meaningful and
valuable to the employees. The rewards are always based on attainable goals, they believe
in SMART goal stetting {S- specific, Measurable, A- attainable, R- realistic and T- time
bound}. The rewards are clear, understandable and open to all. The main focus of the
rewards is to recognize performance and motivate the high performers.


Major Responsibilities
TEAM MEMBER
Responsibilities
Customer service
Serve the customer with a Smile, to their satisfaction.
Should collect their handheld from the Docking station wear its belt on their necks
and park it in the pouch.
Provide speedy and effective Customer Service.
Follow all service standards laid down.
Ensure customer feedback forms are collected on adaily basis.
In case of complaining customers, take suitable actionto solve the complaints.
Keep Caf Manager informed of all complaints.
Responsible for table turnover.
Never get into an argument with customers.
Should constantly employ suggestive selling practices to make customers aware of
new products and current promotion.
Cashiering
Printer is in working condition.
Cash pouch has minimum float to start with.
Handheld terminals and batteries are in good condition.
Manager is intimated about the login password.
Logout and hand over proper physical count of cash and the terminal to the next
person in the presence of the Caf Manager- every time you leave the caf.
Bills are made for every order.
Transfer- in and GRN entries are entered for the day.
Cold Coffee Products/Food Service
Recipes of cold coffee and cool drinks are adhered to.
Pastry cooler display is setup using appropriate tent cards.
The temperature of the refrigerator, freezer, and ice cube machine is of desired
level.
Microwave, Mixer, Griller and Oven are in working condition and kept clean and
hygienic.
Shelf life of food is followed strictly and FIFO is maintained for storage.


Food is dispensed at standardize service temperature.
Food is handled using disposable gloves and tongs and never bare hands.
Servery is kept clean and hygienic and avoids all sources of contamination.
Caf Opening Duties
Setting up the counter for the days operation.
Receipt city store items like coffee beans, cold coffee mix & cups and stationery
and perishables like food, milk.
Check on equipment (pastry cooler, AC, microwave, mixie, refrigerator, ice cube
machine, and freezer) for cleanliness and ensure they are in proper working
condition.
Cleanliness of the caf interiors, exteriors and servery.
Before they are handed over the terminal, it is the team members responsibility to
see to it that the terminal is in good condition.
While taking the terminal, if there are damages noticed, Team member shall report
it on the register counters signed by caf manager or his nominee.
If the terminal batteries need to be changed or recharged then team member shall
hand over the batteries to the caf manager or his nominee and collect charged
batteries from him.
Caf Closing Duties
Cleanliness of all equipment and thorough cleaning of the caf.
Checking the physical stock with assistance from the caf in-charge.
Ensure food beyond shelf life is discarded and food to be retained overnight is
stored t proper temperature.
Assist the manager in compiling reports and updating registers etc.
Part Timer/Weekender
The responsibilities of a Part Timer/Weekender are similar to that of a team
member.
Every Part Timer/Weekender should stringently follow these duties with a smile
with utmost diligence, zeal and application.
The duty hours of the Part Timer/Weekender will be as specified by the City
Manager/Area Manager.
As you grow within the organization, you will be briefed about new role and
responsibility.


Brew Master
Responsibilities
All standard recipes of coffee are strictly adhered to and maintain uniform quality
of these recipes at all times.
Coffee Machines, Coffee Grinders and dispensers are cleaned and maintained well
and all preventive maintenance procedures are carried out.
Hot coffee is prepared as specified by the F&B Department.
Excess coffee is stored in airtight containers at the end of the day.
Grammage and flow of espresso is as per standards.
Ensure speedy production of pending orders.
Knowledge about storage and shelf life of coffee and food related products.
Proper closing and opening of pantry and keeping the work area clean and
hygienic.
Manager In Charge Of a Caf
Responsibilities
Should maintain a positive image of CCD (caf coffee day)
Sport a smile always, as you are the Brand Ambassador.
Achieve sales in a focused and planned manner.
Achieving sales target daily.
Table turnover and efficient customer handling.
Handle pressure during the rush hours by ensuring proper pre-rush preparations.
Allocating assignments and targets to the staff working in the floor area.
Constantly review all suggestive selling practices employed by the caf staff.
Ensure all items on the menu are available at all times.
Responsible for customer feedback forms.
Forecast orders accurately to minimize wastage.
Maintain legally required licenses and others documents as required by local
authorities.
Implement other assignments delegated by the city manager from time to time.
Should coordinate with the regional head and marketing department for various
products launches and other marketing initiatives to improve sales.
Be responsible for all materials and machinery.
To ensure that all the terminals are docked to the docking stations when not in use.


Have complete knowledge of all standard operating procedures governing the caf
and implement the same at all times.
Maintain all records, reports and vendor/utility bills correctly.
Maintain all opening & closing forms and formats.
Adhere to all opening, closing, quality & consistency standards laid down by the
company.
Accountable for maintaining the stocks for smooth operations.
All service standards, hygiene standards and cleanliness of the entire floor areas are
maintained.
Maintaining all product standards, coffee standards and recipes as specified by
company policy.
Planning the counter and ensuring proper workflow is maintained.
Speedy products of all hot coffee, cold coffee, food, other beverages and desserts.
Ensuring all machines including the nurit terminal and the kiosk behind the counter
are in working condition.
Intimate the caf manager immediately in case of any breakdown.
Food standards and hygiene are maintained all times.
Responsible for depositing the daily sales proceeds of the cafe in the bank.
Ensure all stocks and inventories are properly accounted for.
Practice wastage control and spot audits so as to have control over the raw material
costs.
Take the responsibility of charging the batteries and docking the terminals. When
the caf manager is not present, only a senior team member designated by the caf
manager shall take responsibility of charging the batteries and docking the
terminals.
Coordinate and leave messages in the logbook regarding pending jobs for the next
shifts manager.
Ensure fresh recruits get both on the job and classroom training.
Ensure appropriate briefings and meetings are conducted to disseminate
information and collect feedback.
Conduct regular appraisals on the performance of his/her team member and discuss
strategies for improvement of their performances.


Solving customer problems amicably. But if unable to do so, inform the reporting
authority.
Handle waiting customers efficiently. Fund them a seat and making sure that they
do not go away.
HANDLING RUSH
Typically 80% of the business happens in 20% of the time & cafes will have
distinct lean & rush periods. CCD cannot prepare rush hours during rush
period,& therefore they have to prepare well in advance & have the caf ready in
all respects.
PRE-RUSH PREPARATION
To ease workload & handle rush hours better
Forecast the sales for the rush period
Accordingly, ensure there are no stock out situations of any item on the menu.
All the stock items or the food items should be well within reach & enough to last
during rush hours
Staffing should be adequate & work should be allotted well in advance & there
should be no confusion about who is doing what
Any breaks for the staff or change of old shift to mew shift staff should happen
before rush time starts
Pep up the staff
If needed have one staff taking care of table turn over & ensure guests are received
& seated
The counter should be set up in a way that can help reduce clutter, crossovers
between work areas & reduce the possibility of staff making mistakes.


SEVEN STEPS OF GREAT SERVICE
1 WELCOMES THE CUSTOMER
Acknowledge customers presence at the caf. A smile goes a long way. That is guaranteed.
Open the door to receive a customer & greet him courteously with a smile
Meeting greeting & seating the customer in a warm & friendly manner sets the ball rolling
for the service that follows .It will reflect in voice
Check whether the customer wants a takeaway or will be seated at the caf
Take his preference if possible & direct him to available vacant tables. Request the
customers to be seated & introduce self.
2. TAKE THE ORDER & PRESENT THE BILL
A confident demeanour & good menu knowledge will help you to assist the customer to
his satisfaction
Hand over the menu to the customer & if not ready return to take the order in a few
minutes
Help the customer choose the right coffee or food by explaining in detail the attributes of
the product. It is important that you recommend special product & add ons & combos of
food & beverages to the customers. Suggestive selling will help you offer customers a
better choice of their products.
When the customer is ready to give the order , use handheld terminal. Choose SELL
amongst user functions. Enter the table number & the number of people. Take the order.
Check if the customer is the caf citizen ,if not, enroll the customer in the caf citizen
program
Inform customers at what time they should expect order to be served. For eg. order will
be served in 10 minutes. Sir
Print the order confirmation cum bill & place it in the folder on the table.
TIP: use one liner terminology to describe product & its benefits to the customer.
3 .SALVER SERVICE
Serve the customer at the promised time & know the products that you are about to serve
Pride in products will enhance the customers confidence in their brand.
Arranged the readied products on a salver Serve the food first & serve the cold coffee , hot
coffee or other beverages later. However check the customers preference. For eg. Can I
serve the food items first, Sir or will you like everything to be served together? In case of
no specific customer preference serve food first followed by coffee/ beverages Announce


the name of the product while you serve the product Remember who ordered which coffee
/ food in case of a group & serve the items accordingly
If there are four people gathered at a table, then bring the coffee two at a time. Else, if you
wait to bring all four together, the first two will not retain their temperatures.
In case there are any delays after announcing the time of service, please keep the customer
informed of delay.
TIP:Ensure that you have served all the mandatory accompaniments with the food &
beverages like sauces , cutlery , napkins etc..
4. VERBAL FEEDBACK & REPEAT ORDER
A feedback on existing service will help you improve performance in future .Also; the
customer will feel more valued & important.
Keep an eye on the tables in allocated section Check with the customer if they will like
some more coffee , snacks or desserts Interact with as many as customers as possible & get
their feedback on the service & product. For eg. Hope you liked the coffee Sir! I hope you
found the service friendly & prompt. Is there any way we can improve our quality of
coffee, food or service
TIP: If you ask for feedback, you are sure to receive comments from customers
5. CLEARANCES
Prompt clearance of the tables ensures that customers find the caf seating area clean,
hygienic & presentable when they are seated at the tables
Clearance should be very prompt
Clear empty plates, cups & soiled napkins from the table using a salver
Ensure that the surface & edges of the table is wiped with assigned scrubber .Use a spray
gun to dampen the table with a cleaning agent prior to wiping the table.
6. BILL SETTLEMENT & CUSTOMER FEEDBACK
MAKE THE POST SERVICE WAITING PERIOD EASY & FAST FOR THE
CUSTOMER
When the customer is ready to leave check the amount of the bill from handheld & tell him
the overall amount payable
Once the customer places the cash, remove the bill folder from the table & clear the
transaction promptly
Request the customer to fill up the comment card. I will be delighted if you can kindly fill
up our customer comment/ feedback form while I return with the change, Sir!


Present exact change to the customer & collect the comment card. change, Sir!
In case of any negative comment , tackle the situation before the customer leaves the caf
.Acknowledge good comments too.
7. PARTING REMARKS
Show customers that we value them & want them to return. A pleasant parting remark will
ensure that customer comes back to caf
Thank the customer for choosing CAF COFFE DAY. And how delighted you are to be of
service to him. Thank you for choosing CAF COFFEE DAY, Sir! It has been a pleasure
having you over.
TIP: It is not what you say , but how you say it!


PRODUCTS AT CAF COFFE DAY
Description of various Food and Beverages:
Hot Coffees
One Line Descriptions:
Espresso: Strong black coffee extracted at high pressure and optimum temperature.
Espresso Americano: A shot of lightened Espresso diluted with hot water.
Macchiato: A shot of Espresso topped up with milk foam.
Cappuccino: Strong milk based coffee with a shot of Espresso, milk and milk foam. It is
one of the most popular hot coffees at Cafe Coffee Day.
Caf Latte: Milkier hot coffee, mild and goes best with coffee flavouring syrups. It has a
very thin layer of milk foam.
Choc chino: A blend of Chocolate ice cream and Espresso garnished with a dollop of
milk foam. It is neither a hot coffee nor a cold coffee. It is a warm coffee.
Cafe Mocha: Chocolate flavoured Cappuccino. Goes best when served with whipped
cream. Garnish it with a dash of cocoa powder.
Irish coffee: A light Espresso flavoured with a choice of Irish Cream/ Hazelnut/ Caramel
and topped with Whipped Cream.
Caffeine Kick: Double shot of espresso diluted with hot water.
Black Velvet: A'ristretto'strong coffee served around 5-20 ml.
Kenyan Safari: An international coffee with the hidden flavour of Blueberry.
Colombian Juan Valdez: Rich, mild international hot coffee with fruity flavour.
Ethiopian Qahwah : International hot coffee with a hidden mocha flavour.
Hot chocolate: Lots and lots and lots of chocolate.

Cold Coffees
Tropical Iceberg: Ice blended cold coffee with notes of chocolate. It is the most popular
cold coffee across the country.
Tropical Temptation: A Tropical Iceberg topped with whipped cream and a shot of
chocolate sauce.
Cold Sparkle: Ice blended cold coffee with a sparkling taste of coconut, it is among the
earliest cold coffees introduced in their menu.


Iced Eskimo: Ice blended cold coffee with notes of coffee and cream balanced in right
proportions.
Arabian Heights: Ice blended cold coffee with a distinct flavour of cardamom.
Vegan Shake: It is made of 100 % pure vegetable fat and does not contain any animal fat
& dairy product. It is unique and is being launched for the first time in the country by
CCD.
Cappachillo : Coffee with sweetened creamy milk served on the rocks.
Mochachillo : Chocolate flavoured coffee with sweetened creamy milk served on the
rocks.
Cafe Frappe: A judicious blend of ice cream and coffee that gives a smooth and creamy
effect.
Almond frappe : Almond flavoured rich, creamy cold coffee with whipped cream,
garnished with almond flakes.
Choc Frappe: A Cafe Frappe with an extra scoop of Vanilla ice cream and a shot of
chocolate sauce, garnished with cocoa powder.
Devils Own: A smooth blend of cream and coffee drenched with chocolate sauce and
topped up with a shot of whipped cream.
Kaapi Nirvana: It is their ultimate signature blend, very Indian with hidden Caribbean
taste, won the silver medal in the in the world barista championship held in Oslo 2002.
Rich coffee taste, heavy body with creamy texture and does not require any additional
flavours.
Fruit Frappe: A judicious blend of ice cream and fruits having different fruity flavors and
thick cool texture. (Mango Frappe, Strawberry Frappe, Pineapple Frappe, Lichi Frappe,
Cold Chocolate).
Teas
Assam Tea: A strong Tea grown in the best tea estates of Assam.
Masala Chai: High grade Assam tea in combination with a Masala bag which is
meticulously prepared with pepper, cardamom and cinnamon to give an ethnic feel.
Ice Tea: A flavoured cold tea served with lemon juice on the rocks, garnished with a slice
of lime.


Granitas / Cremosas
Granitas: A cool slush drink in different flavour variants
Pineapple Crush: Pineapple flavour.
Cool Blue: Orange & hidden flavour of mint.
Blood orange: orange flavour.
Smoothes: Ice-drinks blended with ice-cream to give it a creamy texture, which gives a
smooth creamy after taste
Strawberry/Mango Colada : A smoother, flavoured with strawberry/mango garnished
with whipped cream.
Cremosa: A fizz drink served with fruit concentrate, soda and Ice Cubes Served on the
Rocks. (Flavor options: Litchi, Ginger Spice and Pina Colada)
Desserts
Mousse Au chocolate: A double layered Chocolate mousse with a combination of milk a
dark chocolate & subtle coffee flavor for all the chocolate lovers.
Mocha Pastry: A fresh coffee sponge cake flavoured with Coffee cream and syrup.
Chocolate Fantasy Cake: Rich Chocolate Pastry pampered with a rich garnish with
chocolate truffle swirl.
Pineapple Gateaux : Delicious cream and pineapple flavoured cake, very light and
refreshing.
Chocolate Mousse : Creamy, Fluffy, Smooth, chocolate flavored dessert, ideal with
coffee.
Black forest Cake : The all time favorite Choco pastry with cherries suited to our Indian
palate.
Sugar/chocolate Doughnut : A deep-fried dumpling doused with cinnamon flavoured top
dipped in sugar or chocolate truffle.
Date & Walnut cake : Rich butter base Cake made of delicious combination Dates &
Walnut.
Chocolate Brownie: A rich dessert made with the combination of chocolate, butter,
walnuts best with coffee.
[TIP: Tastes best with a scoop of Vanilla Ice Cream.]
Banana walnut cake: Delicious teacake flavored with bananas and walnuts


ADVERTISING CAPAIGN
THE LEVIS CAMPAIGN
The 6 Below the Naval Jeans campaign, the SykesReversibles (Ulta Pulta) campaign, the
Levis 501 campaign, the TLTT (The Levis Torture Test), the Hello Gorgeous campaign
etc all are some of the successful in caf activations designed and executed for Levis.
Every season CCD becomes an important media for Levis to launch its new range of
apparels. Along with providing tremendous on ground visibility in terms of wall visuals,
tent cards, danglers, posters etc., a contest (wherein customers can win Levis clothes) is
designed to inject customer interactivity and to add excitement to the entire campaign. The
cohesiveness of the entire campaign is accentuated by creating a new drink and christening
it as the Levis drink for the promo period!
THE SUGAR FREE CAMPAIGN
In order to promote Sugar Free, CCD launched a Low calorie menu in association with
the former for the calorie conscious. The new menu consisted of a wide range of Low
calorie Hot coffees, International coffees, Tea, Tropical Iceberg & a range of veg. and non-
veg. food as well as deserts like Lemon Souffl to name a few. This menu was
communicated to the customer by means of Sugar Free branded menu boards, menu cards
etc. Also, a few bottles of Sugar Free were displayed at the counter to serve as a pointer to
the on-going activity.
THE TVS SCOOTY VALENTINE CAMPAIGN

The Valentine month in 2004 witnessed an innovative campaign for TVS Scooty. CCD
promoted TVS Scooty by means of a creative promotion which besides adding visibility
and customer interactivity also conveyed the brand attitude to the end customer and helped
them relate to the same. Through the TVS Scooty Valentine Singles Campaign,
customers were asked to enter the contest of why they will rather be single and make TVS
Scooty their Valentine that year. To add to the festivities of the Valentine month, CCD
created 2 special combos called the TVS Valentine Combos Hot & Cold (2 ice blended


Cold coffees/2 Caf Mochas with a Chocolate Fantasy). The contest was of course made
attractive by the no. of freebies like Sony Discmans & MP3 players etc. which customers
stood to win. Not to mention the Mega prize of a 4 stroke TVS Scooty for 2 lucky winners
THE CHANNEL V- GET GORGEOUS HUNT

CCD was the exclusive on ground partner for the nationalhunt for the most gorgeous
female models by Channel V, wherein candidates can drop their entry forms with portfolio
at any CCD outlet. The event was heavily promoted by CCD through in caf branding and
on air by Channel V. CCD also launched a new range of Get Gorgeous drinks aspart of
the promotion. Innovative collaterals like branded stirrers etc. were used to add that extra
element of surprise. So much so was the success of the campaign that Channel V has
chosen CCD to be the on ground partner for Get Gorgeous- Part
THE HIMALAYA HONEY CAMPAIGN

The Himalaya Drug Company had recently entered into a tie up with Caf Coffee Day to
promote their honey. This honey was made available through over 100 Caf Coffee Day
outlets across 7 cities, in a 3-month promotion where Coffee Day customers experienced
the taste of pure of honey in innovative ways. Honey Cappuccino, Honey milk shake, rich
chocolate cake and ice cream topped with honey and nuts! Four unique dishes were
conceptualized by Caf Coffee Day, each enriched with the goodness of pure Himalaya
Honey. These were an instant hit with the customers. In addition to honey-based items,
bottles of Himalaya Forest Honey were also available in all Coffee Day outlets


MOVIE TIE-UPS
CCD has become an important national on ground partner for Production Houses to
promote movies better among the masses by means of colourful collaterals like posters,
tent cards, danglers et al. Interactivity is ensured by conducting exciting contests around
the movie wherein customers with the correct answers stand to win movie cassettes, CDs,
movie tickets as prizes and also through a Lucky draw get a chance to win a Coffee date
with their favourite movie stars. Hence, the touch & feel experience to the movie.
The Mujhse Shaadi Karogi Promotion:
The contest, starting July 10, 2004 ran across 168 cafes in 42 cities for a month, where any
customer billing a Shagun amount of Rs 301 was guaranteed to win at least one prize
ranging from audiocassettes to movie tickets and a chance to enter a lucky draw, which
will win them a coffee date with Priyanka Chopra. To heighten the excitement, CCD even
created an ambience of Shaadi Season with cafe staff wearing heart shaped badges with
Mujhse Shaadi Karogi Contest @ CCD pinned on their shirts. Creatively designed
posters and tent cards in the wedding card format were used as tools to encourage
customers to be a part of this contest. Cafe Coffee Day in wi-fi' tie-up with Microsense
Cafe Coffee Day, the country's leading chain of cafes, has tied up with Microsense,
provider of wireless computing solutions, to wi-fi enable its coffee outlets across the
country.
CAF BEAT FACTFILE:
12 pages, all colour, monthly tabloid. Available at all cafes across the country (226 cafes
in 55 locations as of Today).Available FREE of cost to customers for in-caf reading.


Many customers also carry it away for their referrals. 38% of the customers at CCD read
Cafe Beat (survey conducted in Aug.'04 in the 4 metros.). CCD gets around 3 million
walk-ins in all its cafes per month. Essentially a youth magazine covering topics like
movies, music, travel, lifestyle, e-dating, books, career etc. which interest the youth.
Displayed on magazine stands/counter at the cafes. The new issue is kept on the tables
during the first week for greater visibility.
New Introductions
Malabar Monsoon premium Coffee Powder
Varieties in coffee mugs
Funky T-shirts and Caps
CCDs guide to Active Holidays (A travel guide focusing on adventure sports) while 16%
visit monthly. Each caf, depending upon its size attracts between 500 and 800 customers
daily, mainly between 4pm and 7 pm. Customers describe Caf Coffee Day as the place
they frequent most after home and workplace/college. It is a place where they meet
friends and colleagues, in groups of 3 or more; a place where they rejuvenate and are free
to be themselves rather than a place to be seen at viz a viz other cafes.
AIR DECCAN TAKES CAFE COFFEE DAY TO THE SKIES With Friele expected to
enter the Indian market sooner rather than later, it seems logical that India's leading fine
coffee-cafe chain
Cafe Coffee Day should take to the skies, courtesy the country's pioneering low-budget
airline which now links up more urban centres 46 at last count than the competition.
Both Air Deccan's parent company Deccan Aviation and Cafe Coffee Day took off in the
same year from India's Garden City. Cafe Coffee Day, a division of the Rs 300-crore
Amalgamated Bean Coffee Trading conglomerate, will now be the single-point vend or
supplying snacks and beverages on board all of Deccan Air's 186 daily flights.
Cafe Coffee Day (CCD) estimates that when the roll-out is in full flow, the four million
passengers on board Deccan Air flights can add up to Rs 20 crore a year to its annual
turnover, at an average of Rs 50 per passenger. For Deccan Air, the tie-up can enable the
airlines to provide its passengers with reasonably priced snacks and beverages of a
standard quality. Which is what its passengers are said to have indicated a preference for in
a recent survey. The CCD service will begin with the Bangalore-Chennai flights, and will
be extended to other sectors progressively. Since CCD has a pan-India footprint, the
strategy can be implemented seamlessly even in smaller hinterland towns, where the


competition in both aviation and the fine coffee cafe segment does not have a
presence.
The MoU to this effect was signed today by Air Deccan managing director Captain GR
Gopinath and Cafe Coffee Day director Naresh Malhotra. Speaking on the occasion, Capt
Gopinath quipped that another factor he and Amalgamated Bean Coffee Trading chairman
VG Siddhartha and he owned neighbouring coffee estates.
CONCLUSION
The best known cup of coffee in town comes from here. You can't miss Cafe Coffee
Day; if there isn't one in your neighbourhood, there's one near your college/office,
You might as well give in, they're taking over. The college crowd is big, because
the rates are more or less affordable, office goers hang out here at lunch breaks to
take in the laid-back air of the place, first-dates meet here because it's neutral
ground, and couples because they're not likely to bump into their parents. You're
left alone to play your favourites on the jukebox and nurse your mug of coffee for
however long you want. All at a price, of course - Rs. 5 per favourite song and
around Rs. 25 for the drink the range of coffees here, both cold and hot, is
impressive. The latte (with cinnamon, if you like it that way), Irish coffee,
Cappuccino and its chocolate-y version, the Mochaccino are the most requested hot
coffees. While the Frappe, with chocolate ice-cream blended in, the Tropical
Iceberg, which is the classic cold coffee, and the award winning Kaapi Nirvana are
the chilled favourites. Order cookies to go with it and, suddenly, none of your
problems in life will seem like such a big deal. CCD also does a decent job of the
teas, of which it has only three, but the Masala Chai is good. The eats here are also
very popular; in fact, many people skip coffee altogether and just come here for the
grub. For the most part, though, the food here is nothing spectacular. Their ever-
changing menus haven't really improved matters, either. CCD also sells its own
range of t-shirts, coffee mugs and bags. Their line of pre-packed coffee powders is
steeply priced, but there is no dearth of takers, and the filter-coffee has some
dedicated drinkers Its hard to miss: It sports a youthful look. Plush, pleasing
interiors, plus colours such as lime green, yellow, purple and orange predominate
make Caf Coffee Day a soft-low decibel spot for the trendy youth.


PART: 3 & 4
Norway Coffee Industry analysis
Norway coffee market
Norways small market (population 4.5 million) consumed about 40,000 tons of coffee. Although
imports showed a substantial increase over the previous year, much of this can be credited to stock
build-up to take advantage of lower prices rather than significant consumption growth. Over the
last decade total imports averaged 45,000 tons of green coffee equivalents but this number has
trailed down in recent years and so has per capita consumption.
Per capita consumption of the leading country data 2010
0
2
4
6
8
10
12
per capita consuption 10.7 10.1 9.7 7.8 7.1 7 5.7 5.5 5 3.9
3-D Column 6
norway
Finala
nd
Denma
rk
Swede
n
nethal
ands
switzerl
ands
Germa
ny
austria
Belgiu
m
France
Per capita consumption inched slightly up to 9.3 kilos in 2001 and 10.7 kilos in 2010. But remains
well below the average of more than 10 kg that was common in the early 1990s the market
consumes Arabica almost exclusively. Brazil is the largest single supplier; its naturals hold more
than 40 percent of the market. When combined with Colombia and Guatemala the number two
and three suppliers - these three origins have about 75 percent of the total market. Mexico is also a
strong supplier with a growing market share. Soluble coffee holds 9.1 percent of the market.
The sustainable coffees represented approximately 1.1 percent of total consumption in 2001.
Organic coffee amounts to less than 0.5 percent of the total market for coffee in 2001. This figure,
which in the Scandinavian context is relatively low, according to one researcher reflects the
absence of a positive Norwegian consumer attitude towards organic products in general. Max


Havelaar Norway was founded in 1997 and is the certifier for most of the countrys fair trade
coffee. Fair trade coffee is expected to soon amount to about 1 percent of the total market. In both
2000 and 2001 most roasters experienced strong growth in fair trade coffees. Early reports for year
2002 indicate very strong growth as well. In the same period organic showed flat or very small
growth according to their estimates. The rapid growth is mainly due to its ability to secure a broad
distribution from the major roasters. The Max Havelaarregistered suppliers account for the entire
fair trade volume of 215 tons, while the organic segment measures 213 tons (figure 15.3). The Max
Havelaar group has secured a place with the major roasters and the retailers. With such solid
distribution and a developed roaster network, the next challenge will be to motivate larger number
of consumers to switch. That may well be their hardest challenge. The vast majority of sustainable
coffees are sold as mainstream coffees that are not distinguishable from others in terms of quality
or flavour characteristics. There is still a lingering perception that their quality is mediocre
although now a percentage of these coffees (less than 50 tons) have entered the gourmet category
and they are primarily organic.
The market seems to be fairly transparent and well-organized in regard to certification and there
are not many competing labels or claims of sustainability. The national market is fairly well
educated especially concerning ethical commerce, an issue that has recently been raised by
retailers. None of the roasters finds that certifications are confusing or a problem. Only 13 percent
of the industry respondents felt that consumers experienced confusion in these markets. Debio is
the primary national certifier for organic coffees. Max Havelaar certifies most fair trade coffees,
although some firms claim that their coffees are traded under similar ethical standards. Coop Norge
Kaffe engage Det Norske Veritas, an independent certifying organization, to verify their fair trade
sourcing practices in the field. Some of the roasters are showing a keen interest in what are called
relationship coffees. These indicate a direct and mutually beneficial relationship between the
producer and the roaster but usually do not adhere to quite the same criteria or price levels of fair
trade coffee. These coffees pre-suppose a high level of trust between the grower, the buyer, the
roaster, and the consumer since they do not always have independent third party certification of
their practices.
Premiums
Premiums for organic green beans range from US$0.10 to $0.35 per pound, with $0.25 given as the
median. Fair trade buyers pay the minimum price defined in the FLO standards, $1.26 per pound
for most imports. In the current markets, this represents approximately 50 percent more than
conventional coffee. Of the responding firms, nearly all feel that these premiums are reasonable
across the board for both organic and fair trade coffees. All of the respondents believe that fair
trade prices will continue unchanged for the next few years


Retail prices
One company dominates organic coffee sales in Norway and while their organic coffee is not
cheap it is positioned to sell at a price that is 10 percent lower than their premium brand. Because
Norways retail prices for conventional coffees are relatively high the price differences between
them and fair trade are not pronounced. Despite this reasonable parity, there has not been a
noticeable surge in fair trade sales. Although this is not the result of rigorous analysis, it can
nonetheless indicate that having similar prices between fair trade and conventional coffees may not
necessarily stimulate more fair trade sales. Unlike most of the other European markets, Norwegian
consumers did not respond quickly to double certified coffees. There is unanimous opinion in the
industry that this category will grow although the market for these is now very small.
Significant supplying countries for sustainable coffees
The primary suppliers for these markets have been Mexico, Peru, Guatemala, Brazil and Papua
New Guinea. Mexico and Peru are the dominant suppliers by far. Others include Colombia, East
Timor, Bolivia, and India.

International Entry strategy:
Initially CCD is not going to give franchise like ccd give in India because we are not
famous in Norway so give so we launch own Coffee shop in Norway. Raw Material like
Coffees, Sugar, and tea will be export from India .initial level CCD recruit employee only
from India. Land will take on lease


The Norwegian market structure
The Norwegian market channels are relatively simple. Three main roasters and importers, all
Norwegian owned, account for 85 percent of the market. Two medium size roasters cover 10
percent of the market and 3 small roasters essentially share the specialty or gourmet market. There
are also a modest number of in-shop roasters with small volumes. One importer covers the soluble
market that averages approximately 3 percent of the market (1300 tons). The importation of
roasted coffee is small and amounts to less than 5 percent of total imports. While there are three
strong traders in the market, they have little interest in sustainable coffees. There is increasing
trend among roasters to deal more directly with origins, sometimes through European brokers.
Three large retail groups dominate this landscape and are responsible for more than 80 percent of
all coffee sales. There are also approximately 400 specialty retailers. Most of these are covered by
the small and medium roasters. The high-end or specialty trade is well developed through quality
roasters and a widespread network of retailers and coffee bars selling high quality fresh roast &
ground coffee. This trend has spread to leading retailers that are establishing shop in shop fresh
roast coffee outlets. With regard to fair trade, the Max Havelaar registered roasters account for
almost the entire volume provided to the market. Fair trade coffees are mainly sold to consumers
through grocery retail outlets. It is hardly sold in the high - end or specialty coffee market,
probably because its quality has often not been considered good enough. All the large roasters now
have a separate fair trade brand in the market. Hakon, Rema and NorgesGruppen cover about 3/4
of the market and Coop Norge Kaffe covers much of the rest so basically FT coffee is offered in
every supermarket in Norway and has distribution access to almost 90 percent of the grocery retail
stores. There is also a small but growing (institutional) market among community and charitable
organizations as well as among public corporations and governmental agencies Organic coffee is
primarily sold in grocery retail. One company accounts for the vast majority (approximately 90
percent) of the volume. Both fair trade and organic that are distributed through the mainstream
grocery channels are expected to grow, although at a different pace, of about 5 percent for organic
and well over 10 percent for fair trade. Fair trade is also expected to continue its inroads in the
institutional channel at a pace of about 5 percent annual growth in 2002 and 2003.
Trends in the Norwegian market
The total market for coffee is estimated to remain stable in the 2002-04 three-year period, while
fair trade and organic coffees are estimated to grow toward a joint market share of about 1.6
percent in the period. After some initial reluctance, all major roasters now offer both organic and
fair trade coffees. Charitable, community and governmental organizations seem to be an increasing
market for fair trade coffee. There is only modest optimism for organic coffee among roasters and
retailers and this is reflected in the forecasts for little growth.There may be an emerging market for
relationship coffees or uncertified fair trade coffees that are not third party certified but, there has


been little volume thus far. Some retail chains have decided upon a green policy, thereby
introducing an alternative to organic and fair trade. In 1999 the consumer awareness of the Max
Havelaar label was only 6 percent whereas in May 2002 it registered 30 percent awareness.
Industry has a positive outlook for fair trade coffee over the next few years, expecting reasonably
strong growth of between 10 and 15 percent per annum. Sales figures for 2002 fair trade coffees
already show healthier increases of about 30% for that year. Expectations for organic are more
muted and while some expect modest growth, others project reasonably flat sales. As conveyed in
figure 15.8, the Norwegian sustainable market should almost double by 2004 from its 1999 level.
This growth does not represent a large shift in volume, yet Norways sustainable market does
represent the average in terms of market share projected to be 1.3 percent by 2004
Constraints in the Norwegian market
The few dominant retail grocery chains are price-driven and have a conservative space
management policy. If sustainable coffees do not gain sufficient market share their life on the shelf
may be cut short. Although these products currently have broad distribution, no one, including the
stores carrying them, has made many marketing efforts.
Key factors for further growth
Members of the industry were asked to, Rate the importance or value of the following factors for
expanding your sustainable coffee business.
Quality of cup
Consistent and reliable supply
Price relative to conventional coffee
Clarity between different types of certifications, criteria, and labels
Awareness of consumers about these coffees
If the industry does not fulfill these factors it is likely that its future growth will be constrained.
espondents were offered 4 choices ranging from not at all important to very important
According to the industry respondents clarity about certification and labels is the least important
factor in Norway. Consumer awareness is clearly number one in importance followed by\ cup
quality. Norwegian consumers already seem to find that many of the sustainable coffees meet their
quality demands and if consumer awareness improves, due to their presence in multiple channels
of distribution, they may have a positive long-term future.


Industry Analysis
Societal Environment
Economic Variables
Dealing with a commodity, the coffee industry in the Norway is only marginally affected by
economic forces such as GDP Trends, interest rates, inflation, or energy price and availability.
However, Marketresearch.com (2008) suggests that higher employment rates might cause a shift in
coffee consumption as more coffee will be consumed outside the home, thereby increasing the
foodservice sales at the expense of retail coffee sales. At the same time, the foodservice sales of
coffee are particularly susceptible to changes in discretionary income. Since that type of
consumption is generally not considered a necessity, an overall decline in discretionary income can
result in diminished foodservice coffee sales and vice versa. The data from the Norway Census
Bureau (2008) seems to indicate a rather positive trend since foodservice and drinking places a
7.6% sales increase in the past 12-month period and a 0.6% sales increase from June to July 2008.
Besides, the economic situation in the different geographic regions has a noticeable effect not only
on coffee sales in general but also on the demand for particular coffee types.
Research and Development
Although coffee is considered a commodity, the individual marketers in the coffee industry invest
significant resources in research and development in an attempt to establish a competitive
advantage. Flavoured coffees, specialty coffees, Pods, better-for-you coffee blends, or
Frappucchino are just a few examples of how the industry takes advantage of technological
developments (MarketResearch.com, 2008). Furthermore, the National Coffee Association started
a campaign that promotes the health benefits of coffee and, based on scientific research, unmasks
common beliefs about the harmful effects of coffee consumption. According to
MarketResearch.com (2008), this image campaign does not only increase coffee awareness among
consumers but has also the potential to increase future consumption. From a corporate perspective,
the proper application of modern is crucial to ensure adequate product management as well as
internal and external communication. Tracking product profitability, product-specific sales data,
and inventory, as well as implementing employee and customer relationship management measures
are just a few areas in the coffee shop business that will greatly suffer from the lack of proper
technology support.
Political-Legal Variables
As stated by MarketResearch.com (2008), coffee come in top import item in the import basket
which makes the coffee industry very vulnerable towards foreign trade regulations Overall stability
being granted, the political situation in the Norway is probably less concerning for the coffee
industry; however, the respective situation in the major coffee growing countries might have a


more imminent effect on the industry with regard to green bean supply and price. Greenfield
(2004) instances the Coffee Crisis of 2001 during which commodity prices fell to an all-time low.
The issue originated in the sudden rise of Vietnam as second largest coffee exporter and caused
thousands of coffee farmers to loose their livelihood.
Socio-cultural Variables
Socio-cultural forces have undoubtedly the most noticeable influence on the coffee industry. As
stated by MarketResearch.com (2008), consumers seek higher quality coffee, thereby increasing
the demand for the higher priced specialty coffee not only in the newly revived coffee house
culture but also at home. According to Dawidowska & Gardyn (2002), the lions share of patrons
of specialty coffee houses is composed of those between 18 and 34 years old as well as those with
an annual income of $75,000 or more. This demographic is not only enticed by the higher quality
and broader selection, but also by the overall coffee-shop atmosphere and non-coffee related
offerings. The continuous monitoring of the populations motive force with regard to overall coffee
consumption as well as the benefits they seek is crucial for any company in the coffee shop
industry as it may provide open up a competitive advantage. Currently, the consumers busy
lifestyle enhances the demand for ready-to-drink coffees; in addition, the trend towards enhanced
health consciousness causes marketers to emphasize coffees health benefits and incorporate
better-for you ingredients in it Furthermore, enhanced consumer activism forced the coffee
industry to place higher emphasis on sustainable coffees that are more considerate of the
environment and/or the coffee farmers in the exporting countries.


Five Force Model

Threat of New Entrants
New entrants in the specialty coffee market constitute a definite threat due to the lack of entry
barriers. Although clearly dominates the market with its more than 1000 coffee shops and its
advanced infrastructure, the company has significant scale economy in the production and sale of
its products. As stated by Belissimo, Inc (2005), the capital requirements to open a new coffee cart,
kiosk, drive thru, or coffee shop franchise range from $10,000 to $100,000 which allows for easy
market entry of new competitors. Despite marketers branding and differentiation efforts, coffee
remains a commodity for the majority of consumers who generally perceive very minimal, if any,
switching costs between any two brands of coffee. While small businesses might not have the
opportunity to sell their coffee in larger supermarkets, the coffee shops themselves and the
respective websites constitute easily accessible distribution channels. Lastly, there is no
government policy in place that will restrict or limit the entry in the coffee market.
Rivalry among Existing Firms
In economics, the degree of rivalry is measured by indicators of industry concentration, which
usually expresses as the concentration ratios. It is used as an indicator the relative size of firms in
relation to the industry as a whole. According to the Bureau of Census (2008), as of 2002, the
concentration ratios for the largest eight, 20, 50 firms in the coffee shops industry are 66.2%,
68.5%, and 70.6% respectively. Even though the figure for the largest four firms is withheld for the
purpose of avoiding the disclosure of data for individual companies, we can still make assumptions


based on the noticeable differences on percentages between the largest eight-firm and four-firm.
Assuming that the fluctuation of the differences between the largest four-firm and eight-firm is
within 10%, we then can conclude that the concentration ratio for the largest four firms is well
above 40%. In that case, the market form of the coffee shop industry appears to be an oligopoly in
which a market or industry is dominated by a small number of sellers (Wikipedia, 2008). This
implies that the industry is somewhat disciplined, informally following the acknowledged market
leaders strategic movements.
Due to the lack of entry barriers, the number of competitors in the coffee market is countless. The
vast majority of which are most likely to serve coffee in one fashion or another. Especially
noteworthy is the great diversity of competitors. A specialty coffee shop such as Caf Coffee Day
does not only directly compete with other specialty coffee shops, but also indirectly with any type
of restaurant, convenience stores, or even the coffee brewer at home. According to
MarketResearch.com (2008), the coffee market is estimated to exhibit a compound annual growth
rate of 6.9% in the next five years which provides room for growth not necessarily on the expense
of other competitors. Again, coffee is widely considered a commodity and according to the
Specialty Coffee Association of Norway (2005), most consumers chose their coffee based on
convenience of location, quality of the product, friendliness and knowledge of staff, variety, and
price rather than particular brand. Unlike the high-tech industry, the coffee shop industry exhibits
fairly low fixed costs, low switching costs, and relatively low exit barriers in its realm. Taking the
low entry barriers into consideration, the low exit barriers have probably hardly any effect on the
market at large. Except for rent, furniture, and overhead costs; the majority of a coffee shops
expenditure can be capitalized on bespoke espresso machines and specific staff training. Variable
costs, such as direct material and direct labour, are directly influenced by sales. There is no strict
penalty cost for withdrawing from the market except for the potential loss on investments. As a
result, investors can flexibly switch markets in accordance with their strategic planning.
Substitutes
As outlined in the above paragraph, the competitive landscape in the coffee industry provides
countless substitutes for a cup of Caf Coffee Day coffee. If customers are not true-blue to their
favourite coffee shop or brand, they will hardly perceive any switching costs whether they get their
coffee from kaffehuset friele as ,johannson joh kaffe as ,trond t wikant as, mocca kaffebar
& brenneri. Surprisingly, the price for a cup of coffee is not necessarily the determinant factor for
the selection of one brand over the other but convenience and other added benefits clearly are.
Market Research.com(2008) point out that the current price of roasted supermarket coffee is almost
on the same level as it was in 1980; however, consumers are apparently willing to spend $3 or
more for a specialty coffee at their favourite coffee shop. The roomy chairs, free wireless internet,
and pleasurable music that can be found in a coffee shop are no coincidence but rather an attempt


by the respective store to establish a distinctive competency and capitalize on it. Besides the threat
of other brands as substitutes, coffee can just as well be substituted for by completely alternate
products. In realization of this fact and as a defence against it, many specialty coffee shops add a
rather comprehensive tea selection to their product portfolio. After all, only about half of the adult
population drinks coffee on a daily basis, so coffee shops need to provide an appealing subsidiary
for the other half of the population in order to lure them into the stores. While newly publicized
research findings suggest otherwise and might eventually change the current public opinion, tea is
generally considered healthier than coffee and therefore constitutes an important subsidiary
product for the increasingly health-conscious Norwegian consumer.
Bargaining Power of Buyers and Suppliers
Due to the very nature of the product and the composition of the industry, the bargain power of
foodservice coffee consumers is definitely greater than that of the foodservice coffee suppliers.
Although consumers are much dispersed and purchase comparably small proportions of the
product, they can easily prepare their coffee at home or select an alternative supplier or substitute
product at literally no switching costs. The great variety of available coffee in terms of price,
quality, and service allows for the consumers to choose the respective product that best meets their
individual needs and further strengthens the consumers position in the coffee market. Further up
in the sales channel, and as outlined by MarketResearch.com (2008), many coffee marketers
strengthen their respective position by expanding their presence to several sales channels, thereby
oftentimes assuming the role of seller and buyer. Friele, for example, poses a very real backward
integration threat by eliminating several middlemen in the coffee production chain. The coffee
retailer does not only roast its own coffee in one of its three corporate-owned roasting facilities, it
also freshly grinds its coffee in the stores.


Major Competitor
Major competitor in Norwegian market is kaffehuset friele as ,johannson joh kaffe as ,trond t
wikant as, mocca kaffebar & brenneri and coop kaffe .
Friele
Friele (Kaffehuset Friele) is a Norwegian coffee manufacturer and brand based in Midtun, a
commercial and residential district of the borough of Fana in Bergen, Norway. Friele is the largest
producer of coffee in Norway.
The company was started in 1799 when ships captain Herman Friele I landed in Bergen to start
trading. He bought a property in Bergen and established an import business with emphasis on
coffee. Towards the middle of the 19th century, coffee consumption was growing due to falling
prices from increased global production.
Friele is now owned by the seventh generation and chairman Herman Friele. Friele buys its coffee
beans from 910 different countries, mainly from Brazil and Kenya. Until the mid 1980s most of
the coffee was sold in Western and Northern Norway, but since it has expanded throughout the
country. The present plant was constructed in 1981.
Friele Frokost Kaffe is the leading brand with a market share of 29%. Friele's product line also
includes the brands Kronekaffe and Caf Noir. Collectively all the Friele coffee brands have a total
national market share of 35%
In 1799 Herman Friele bought his first coffee consignment and shipped it back to Bergen. Even
today, Friele travels all over the world in order to taste coffee and choose the best batches.
Kaffehuset Friele is today, Norway's leading coffee roaster, with a market share of about 32 %
(value). There are four other major players in the Norwegian coffee market, Joh. Johannson with
29 %, Nestle with 16%, COOP with 15% and Kjeldsberg with a market share of 7%.
Our largest coffee brand, Friele Frokost kaffe is also Norway's leading brand and has a market
share of 29 %(volume). We also have the brands Krone, Caf Noir and Spesialkaffe (speciality
coffee). e offers products to both the food service segment (20 %) and the retail trade (8Kaffehuset
Friel0 %).
"The secret behind good coffee is to find the right blend, and then roasting the beans just long
enough, at the right temperature, so that the aroma and taste comes to its full potential."
Norwegian's drink a lot of coffee. Norway, along with the other Scandinavian countries is among
the countries in the world that drink the most coffee. After tap water, coffee is the drink that is


consumed the most, an average Norwegian drinks about 155 litres of coffee per year.
At Friele we use only the best coffee beans from carefully selected coffee farms. In cooperation
with these farms we have found green coffee that safeguards the distinct and full bodied taste our
blend is known for. Our goal is to create the perfect "coffee moment" for as many as possible. We
use the best methods and the most modern equipment in the manufacturing process from roasting
to grinding. Kaffehuset Friele is known as Norway's coffee authority.
It goes without saying that coffee is an important part of Nordic culture, and that the interest for
coffee straddles all demographic divides with ease. It reaches the old, the young, the rich, the
poor and everyone in between. However, the supply side of the coffee market in the Nordic
countries is decisively split into two very different parts, governed by completely different rules
and objectives.
This divide is commonly referred to as the difference between retail and specialty coffee, and just
as commonly written off as the normal segmentation between mainstream and premium products.
The fact of the matter is that while they nominally occupy the same space, these markets are
worlds apart, and do not compete as much as supplement each other.
An overwhelming majority of all coffee sold in the Nordic countries is supplied by roasteries that
seem like behemoths compared to the smaller, newer roasteries that comprise the second market.
We will get to just how overwhelming that majority is in a bit.
Entrenched is an apt description of the roasteries that enjoy significant market shares: in Norway,
two roasteries have a combined market share of 63% (2009). The two are Friele of Bergen and Joh.
Johannson of Oslo. Despite their size, their respective market shares are more or less set in stone,
owing to how they market and sell their coffees.
Because they dominate both the catering, hospitality and the retail market for coffee, they have
separate, mutually exclusive agreements with these and the parent companies of various chains of
supermarkets across the country. The supermarket chains that do not carry one of the two brands
often have their own, much smaller but still substantial in-house roasteries. This effectively
locks Friele and Joh. Johannson into a market share that will fluctuate mostly based on the
successes or failures of the supermarkets, more so than those of the roastery.
Coffee is an important part of everyday life, and as such it is often used by these supermarket
chains as incentives to draw customers in. In many cases, these stores sell coffee at a loss; this
practice requires a very affordable product to begin with. Economy of scale is what allows these
large roasteries to sell coffee as affordably as they can. However, it also fundamentally restricts
what sort of coffee they can sell, and in turn what they purchase.


Many people who are interested in, or work with specialty coffee, regard the signature coffees of
these entrenched roasteries as unexciting, if well-executed. The most important reason behind this
is a fundamental difference in approach. The entrenched roasteries are, much in the same way large
Italian espresso roasteries like Illy are, striving forconsistency of product, across seasons, harvests
and decades. They work toward a signature taste that is uniquely theirs; a stable, marketable
product that will keep their end-customers loyal. To that end, the quality assurance of entrenched
roasteries is, if anything, more rigorous than that of most small roasteries.
Also important is the notion of drinkability: their signature coffees are engineered to be drunk
continuously throughout the day. For the entrenched roasteries, this means that it must have a
rounded profile: nothing too acidic or bright, nothing too heavy. In the words of Frieles main
green buyer, Bernt Tveitsme, they should not have any sharp edges. Compared to large roasteries
all over the world, the entrenched Nordic roasteries are known for purchasing higher quality coffee
across the board.
Where the entrenched roasteries aim for consistency, balance and drinkability, many of the smaller
roasteries aim to showcase seasonality, a sense of place, and what they perceive as being the very
best coffee in the world. For many smaller roasteries, predictability takes a firm backseat to
uniqueness and surprise.
Small roasteries like Solberg & Hansen, Tim Wendelboe or Kaffa have a structural nimbleness and
scale that enable them to purchase, roast and sell small, unique lots of coffee. They have a clientele
willing to pay for all the work this requires. And while the work they do have gained them global
renown, they comprise less than one per cent of the domestic market in Norway. What Tim
Wendelboe roasts in a year, Friele can and does roast in less than three hours of normal
production. Compare Frieles annual production of 11,000,000 tons (the red circle) versus the 23
tons of Tim Wendelboe (the black dot):
Even if the entrenched roasteries wanted to do something more akin to what small coffee roasteries
do, the scale of their operation would work against them. Where smaller roasteries are be able to
purchase very small lots of a ton or two from individual farms in specific areas, the entrenched
roasteries deal on such a scale that lots of this size at the premium they must require would be
meaningless from a business perspective.
How could they feasibly market a particular lot of coffee, the supply of which would be exhausted
within one or two business days? The supermarkets are after consistent, cheap products, and cater
to customers who shop mostly by way of habit. Even if everyone who bought the coffee would be


willing to pay a premium for that particular coffee again, it would already be stale or completely
sold out by the time they wanted to buy another bag.
The entrenched roasteries are very efficient machineries that specialize in a certain type of coffee
directed toward the broadest possible demographic. And far from competing with, or feeling
disparaged by smaller coffee roasteries, they acknowledge the different roles they play. The way
Friele sees it, small roasteries are renewing coffee culture, keeping it vibrant and developing. For
them, this is a net positive.
While one might not agree with the priorities of the entrenched roasteries, it is hard to see how a
coffee culture could have existed without them. They are and will remain a vital part of Nordic
Coffee Culture.
Coop Kaffe
Coop Kaffe is a coffee brand produced by Coop NKL, the Norwegian cooperative grocery chain. It
is produced by the company Coop Kaffe AS, a subsidiary of Coop Industrier. The brand is
exclusively distributed throughout the Coop chains in Norway. In total 12 different blends are
available, including organic and decaffeinated.
History
After World War II there was rationing of coffee and NKL was not given a quota relative to their
proportion of sales, resulting in the need to purchase coffee quotas from other importers. Also, at
this time the quality of coffee varied greatly because the wholesalers were not able to test the burnt
coffee, only the raw beans. To solve this, NKL started its own coffee house in 1953 which allowed
NKL to distribute its own imported coffee and test the burnt produce. But the greatest change was
the introduction of the yellow and red bags of coffee that replaced the loose weight sale of the
beans. Import was still restricted until 1960 due to restrictions, and that Norway had an agreement
with Brazil to exchange coffee with clipfish. After 1960 Coop introduced vacuum packaged coffee,
at first canned and later hard vacuumed, though in the 1980s lose weight coffee was reintroduced.
Tim Wendelboe
Tim Wendelboe is a coffee roastery, an espresso bar and a coffee resource and training centre
located in Grnersgate 1, Oslo, Norway.
Tim wendelboe goal is to be among the best coffee roasteries and espresso bars in the world and to
be a preferred supplier of quality coffee and a preferred resource for coffee innovation and coffee
knowledge.


theire coffees are imported as directly as possible from what we believe are the best coffee growers
around the world. Rather than blending coffees together into a homogenous product we try to
showcase the vast difference of flavours that the world of coffee has to offer. That is why they buy
smaller coffee lots according to the harvesting season that we are currently in. Coffee is a fresh
product and we try to provide our customers with the freshest coffee possible. Our coffees will
therefore never stay the same but hopefully always improve.
All coffees are carefully sourced based on a philosophy where quality, traceability, innovation and
social responsibility is the main focus. Sustainability is very important to us and they try to satisfy
both our customers as well as our suppliers when we buy our coffee.
they spend countless hours perfecting the roast profile and brewing methods of all our different
coffees. Our goal is to create a product that is as transparent as possible so that you can experience
the taste of the terroir and the varietal of each and every coffee lot that we sell.
only roast coffee to order for wholesale customers to ensure freshness and quality. We also sell our
coffees to the public in our web shop and in our espressobar in Grnersgate 1.
Tim Wendelboe is also a resource centre for the public as well as for coffee professionals and
restaurants. We believe that by educating the public and our wholesale customers we will achieve a
broader understanding of how much work that lies behind a single cup of great tasting coffee.
resource centre was created with a mission to educate the consumer in how to taste, brew, serve
and appreciate a Cafe coffee of coffee.
Tim Wendelboe is the self-titled coffee shop, micro roastery and training centre of Tim
Wendelboe, the 2004 World Barista Champion and 2005 World Cup Tasting Champion. After
close to a decade in the industry, he decided to start his own business. Based in Grnerlkka, Oslo,
it opened its doors in June 2007.
The goal of Tim Wendelboe is to be among the best coffee roasteries and espresso bars in the
world and to be a preferred supplier of quality coffee and a preferred resource for coffee innovation
and coffee knowledge.
Since opening, the roastery has won the Nordic Roaster competition three years running. The
competition is a blind cupping, where the judges attendees at the annual Nordic Barista Cup
taste and score the coffees without knowing what or whose they are.


The current brewing method offered in the bar is the Aeropress. The entire selection of TW filter
coffee is always available, brewed on demand. There is also an option of sharing a tasting flight of
all the available coffees.
On their website , you can find brewing guides and videoes, as well as exhaustive information on
coffees past and present. In 2009, Tim published the book Kaffe with Tim Wendelboe (quickly
followed by an English translation ). The book is an honest, accessible account of what makes a
great cup of coffee, and how anyone can brew one.
Transparency is an important part of Tim Wendelboes business philosophy. He regularly
publishes what prices he pays for coffee, but more important still is his commitment to building
long-term relationships with the farmers and cooperatives he purchases coffee from. By
committing to purchasing crops before the harvest, he has been able to experiment with coffee at
origin, such as separating out cherries from older trees, separating varietals, and different ways of
processing the coffees.
In 2010, for their third anniversary, every drink in the coffee bar was pay what you like, to raise
funds for the Tekangu cooperatives Karogoto factory in Nyeri, Kenya. At the end of the day, more
than $3,500 was raised towards purchasing new metal drying beds.
For Tim Wendelboe, Nordic coffee culture has emphasis on the natural diversity of coffee flavour.
He believes that the tradition of buying high quality coffees in the Nordic countries has created a
culture where coffee is roasted light in order to enhance its natural flavours and acidity without
having burned flavours from the roasting process.
When the quality of the roast and green coffee is high, it gives a complex and sweet cup of coffee,
and makes it unnecessary to add sugar or milk. Therefore Tim truly believes that the Nordic way of
brewing and drinking coffee, wether it is the traditional steeping method or filter coffee, is the best
and easiest way to enjoy a cup of coffee.


Competitive Analysis
Resources
coop kaffe and its competitor Friele feature some similar resources, such as high-quality coffee,
the company operated stores, as well as machinery and equipment, the former is especially
characterized through its guaranteed 72-hour turnaround time between coffee roasting in the plant
and consequent blending and grinding in the respective stores. sells its products in extra large
ceramic mugs or 2 oz. larger to-go cups. Also noteworthy is the companys strong presences.
Besides, coop kaffe management team not only driven, motivated, and ambitious; it is also very
experienced in the coffee-shop industry as well as their respective areas of expertise and practices a
distinguishing hands-on management approach. The companys employees, in combination with
their individual customer and product knowledge, constitute one of the most valuable assets for
coop kaffe, going hand-in-hand with the companys very loyal customers. The company also
maintains strong human resources, marketing, and training departments; however, these resources
are not equally well employed in the companys individual markets. Coop kaffe has a fairly
diversified product portfolio. While this resource currently provides for some corporate identity
issues, it might provide a competitive advantage in the future when adequately incorporated in the
company. Lastly, coop kaffe and Friele stores are very connected to the respective communities
they are located in and reflect individual tastes on its menu.
Core & Distinctive Competencies
Coop kaffes motto nicely summarizes one of the companys core competencies and its high-value
pricing strategy as well as its 72-hour freshness guarantee can also be considered superior to its
competition. While the geographic distribution of the companys stores is clearly advantageous, the
increasing size of the company weakens the hands-on management approach of the owners, which
constitutes another core competency that contributes to the companys success. Besides, Caf
Coffee Day is recognized for its dedication to its customers, its quality of service, as well as its
willingness to experiment, learn, and grow; unfortunately, these qualities suffered through the
rapid and unstructured growth of the company. Another core, and potentially distinctive,
competency is the neighbourhood characteristic, community involvement, and broad product line
of the companys individual stores. No other competitor features old-style deli sandwiches as well
as gourmet ice-cream in addition to the regular coffee shop menu; however, these apparently
unrelated product categories need to be skill fully consolidated in order to attract rather than
confuse customers. While the individuality of the coop kaffe stores currently complicates the
development of the chains brand identity, it has the potential to develop into a distinctive
competency as more customers grow tired from the corporate-dictated look and menu of
competing chains.


There is a reason why friele is the undefeated market leader. Friele opens an average of five stores
per day and employs geographic information system in order to identify promising locations for
new stores (Maninger, 2008). The quality of its products as well as the companys continuous
product innovation belongs to Friele core competencies. The training and benefits that Friele
accords its employees distinguishes the company from its competitors and so does its emphasis on
corporate social responsibility. Very distinctive is also Friele ability to promote and develop its
brand image as well as the diversified distribution of its products not only via its stores and
website, but also via its strategic partnerships.
Economic Indicators & DuPont Analysis
As summarized by the Norway Census Bureau (2008), the current year does so far not mirror last
years strong growth in the food services and drinking places retail sector. In the first eight months
of 2005, sales grew 3.9% while 2008 only features 0.6% growth in the same time period. Although
the annual growth rate from August 2004 to August 2005 to August 2008 appears rather
comparable with 7.7% and 7.1% growth respectively, this can not be attributed to a sound market
situation in 2008 rather than the very strong growth in the later months of 2005. Since the seasonal
factors indicated by the Norway Census Bureau do not exhibit major variance for the remaining
months, the food services and drinking places sector, to which coop kaffe and its competitors
belong, should not expect significant revenue-growth for the current year. Local economic
indicators not only affect the potential revenues of a business but also its cost of doing business
According to the Energy Information Administration (2008), gasoline prices in the Midwest
decreased from an average price of $2.95 in mid-August to $2.29 in mid-September 2008. The
price drop is even more drastic when compared to the early September of last year when gas prices
peaked at an average of $3.03 per gallon. However, compared to an average $1.79 in September of
2004 or even $1.55 in the year prior, these prices still seem exorbitant and continue to impact the
overall Norway economy rather severely. While the current trend has the potential to influence the
coffee industry with regard to lower shipping and distributions costs as well as higher discretionary
income of the population at large, it is not foreseeable if and if so for how long this trend will
continue. Therefore, many companies and customers are reluctant to loosen their precautious
measures or take any actions based on the current market performance which slows economic
growth.
As summarized by the International Coffee Organization (2008), the indicator prices for coffee
increased significantly over the past years. While the average composite price for one pound of
coffee amounted to 62.15 cents in 2004, it increased to 89.63 cents in 2005, and the first eight
months of 2008 exhibit an average coffee price of 93.24 cents per pound. The monthly listings of
the coffee prices also indicate the high volatility of the coffee market where prices can increase by
ten cents from one month to the next. Clearly, coop kaffe and its competitors have to incorporate


these price fluctuations as well as the overall upwards trend in their financial analysis and
contemplate how they plan on facing it.
The return on equity measures a companys profitability and indicates how much profit a company
generates with every dollar invested by its shareholders. This ratio is not only important for the
organizations self-assessment but also of special interest for its shareholders who want to see their
investment grow at a profitable rate. The annual financial statements for coop kaffe and Friele
result in a calculated return on equity of 14.24% and 23.65% respectively while the industry
average, as outlined by Reutgers.com (2008), amounts to 21.69%. Coop kaffe performance is
therefore below industry average and well below its largest competitor; consequently, the company
needs to analyse its operations in order to identify the areas that are mainly responsible for the
comparably low profitability of its business.
Value Chain Analysis
The larger serving size of coop kaffe coffee is probably the most obvious measure that adds value
for the companys customers. Getting more of an equally high-quality product for a similar price
clearly serves as an incentive for customers to choose coop kaffe over its competitors. Since
customers perceive a higher quality and better taste with fresher coffee, coop kaffe promotes its
operational standard of serving coffee that has been roasted no more than 72 hours ago and that is
blended and ground right at the store. As an indirect marketing measure, coop kaffe provides
community bulletin boards and supports book club meetings as well as special events in its stores.
Customers appreciate this type of involvement and become or remain loyal customers of the
company. Lastly, coop kaffe enhances its in-store service by providing extensive training for its
employees. Any customer will probably feel more comfortable, and is therefore more likely to
frequent the store again, upon encountering a friendly and knowledgeable staff member who can
explain the difference between a latte and a cappuccino or make recommendations with regard to
the various available coffee roasts and blends.
Friele takes a twofold, namely human resources and service, approach to increase the perceived
value of its company by making their Total Benefits package available to part-time employees
(Maninger, 2008). This measure does not only benefit its employees but also the company at large
as it results in more satisfied employees, better service, lower turnover, enhanced image, and more
loyal and satisfied customers. Customers are increasingly conscious of their consumption patterns
and select the companies they do business with on those not directly product related variables. In
the customers perception, indulging ones coffee while at the same time positively contributing to
the community or the environment sets Friele apart. Customers perceive higher convenience from
this service as it facilitates payment and will eventually allow for them to order their preferred
beverage simply by scanning their card.


Marketing Mix in Terms of Product Life Cycle
Coop kaffe sells a high-quality product; however, the company failed to bring any product
innovations forward in the past years. Consequently, the majority of its product portfolio has
reached the maturity stage of the product life cycle and might enter the decline stage shortly. Coop
kaffe needs to rejuvenate its menu in order for products to enter the first two stages of the product
life cycle. At the same time, coop kaffe product portfolio also includes such in-law products as
ice-cream and deli which the company has neither fully abandoned nor fully integrated. It does not
seem like the company is aware of these products respective stages in the product life cycle but if
they are to remain on the menu, coop kaffe will have to think about that. Coop kaffe prides itself
with its high-value pricing but it might want to consider a more diversified pricing structure by
offering different classes (from premium to economy) within their high-quality coffee selection.
Besides, research from the Specialty Coffee Association of Norway (2005) suggest that price is not
the determining factor in the selection of a coffee house, so Caf Coffee Day might want to analyse
the costs and benefits of its strategy. The concerns of coop kaffe marketing director are probably
valid when he questions the effectiveness of its couponing campaigns in Oslo. The company
should carefully analyse whether it merely offers cheaper coffee to those customers who will
frequent the store anyhow or whether the coupons actually attract new customers. Also, the
company might want to investigate which products to promote in order to achieve the best return.
Does it make sense to spend the marketing budget on already mature products? Where are those
products in the product life cycle? Since the collaboration with retail partners was not successful,
coop kaffe distributes its products almost exclusively through its stores. The company will be well-
advised to update and vitalize its website and take full advantage of this additional distribution
channel. Also, coop kaffe can offer catering services for nearby businesses and enhance meetings
with freshly brewed coffee and pastries. This distribution channel can relocate the companys core
product into the growth phase of the product life cycle.
Friele is characterized by continuous product development that rejuvenates its product portfolio at
all times and features a number of products in any stage of the product life cycle. Besides, the
company strives to expand its product portfolio through its partnerships with other small company.
Friele follows a premium pricing strategy and generally introduces its product innovations at a
premium price while the more mature prices are typically lower priced in reflection of the
declining demand. Friele does hardly use any traditional mass advertising to market its brand or
products but considers its omnipresent stores as its best promotional vehicle (Maninger, 2008).
While the fairly mature cappuccino or latte does not receive any promotional attention, the
companys website usually features the companys newly introduced blended beverages as well as
packaged coffee blends.


Coffee Shop Observation
The following data was obtained during an in-store observation of the Friele stores in Oslo. The in-
store observation took place on Sunday, September 24, 2009 from approximately 12:30 pm to 1:45
pm. The store at hand opened just about six weeks ago and is one of the now over 10 stores that
features a drive thru window, In store seating capacity for 18 customers and patio seating for an
additional 12 customers. While being mostly furnished with wooden chairs and bistro-style tables,
the store is also equipped with a loveseat and matching lounge chairs, a cushioned bench right at
the entrance, and a larger wheelchair accessible table, the store has a number of in-store displays
and shelves that feature branded merchandise, coffee brewing equipment, gift baskets, packaged
whole bean and ground coffee, as well as the Friele CD collection and News paper. The back wall
behind the counter shows the stores menu and price display while the refrigerated section with
bottled drinks and baked goods, the register, the espresso workstation, and the prepared beverage
dispense are line up along the front side of the counter. Additional merchandise is displayed in the
fairly small register area, which makes this particular section appear particularly packed. Usually
located close to the beverage dispense, the condiments station of this particular store is located
right next to the exit which causes customers to half-way block the path upon finishing up their
beverage. Behind the door wing, the store provides a neighbourhood bulletin board where the store
management or customers can affix flyers to promote events or programs in the neighbourhood.
Since the entire store-front is glass, the lighting at the tables is very reader-friendly, and the light
woods as well as the soft brown, orange, and green wall colours contribute to a warm and
welcoming atmosphere in the store. In addition, the store plays music from its featured artists,
thereby not only enhancing the ambiance but also functioning as promotional vehicle for the
respective CD. However, the store features significantly more drive-thru and walk-through traffic
than actual in-store traffic. Besides the observer, the store was only frequented by two separately
studying individuals and a group of four high-school students. A middle-aged couple stopped in for
coffee and cake but remained in the store for no longer than ten minutes. During the 75-minute
observation, the store had approximately 15 walk-in guests who left immediately after the purchase
and an estimated ten customers in the drive-thru.


Marketing Plan
Target Market Analysis
Demographics
Unlike common perception, research agency (2001) points out that the most devout coffee drinkers
are not the young professionals but rather the post war and baby boomer generation. According to
the author (2001), merely 21% of the 18-24 year olds actually consume one or more cups of coffee
per day compared to 70% of those 65 years and older. While this research is based on at-home
consumption, another article by Research agency (2002) indicates a similar trend with regard to
out-of-home coffee consumption. Although seven out of ten consume their coffee at least
occasionally outside the home, those between 55 and 64 years of age are considerably more likely
(75%) to do so than the generation of 18 to 24 year olds (47%). However, its seems that the
specialty coffee shops largely miss out on the older market as only one third of those who drink
coffee outside the home actually frequent specialty coffee houses like Friele and Co. At the same
time, the young and wealthy seem to be more prone to frequent specialty coffee stores as 42% of
consumers between 18 and 34 as well as 46% of those with an annual income above 75,000 get
their coffee from there. While the focus group did not include anyone in this high-income bracket,
the discussion showed that the majority of participants, who were all between 18 and 34 years old,
will frequent a specialty coffee shop if they were to consume coffee outside the home. In support
of this research, MarketResearch.com (2005) references customer surveys which indicate that
being situated higher up the socioeconomic ladder considerably increases the likelihood of
individuals to spend money on products that are generally considered upscale or gourmet like
specialty coffee drinks or gourmet ice cream.
The observational research, which was conducted at several different coffee shop brands, showed
that the vast majority of customers fell in the age range of 25 to 45 years. Also, the comparable
newness (less than 5 years) and makeup of the cars as well as the high occupancy during rush hour
gives reason to assume that the drive-thru is primarily frequented by younger to middle aged
professionals in the higher-income bracket. The parking lot on the other hand was oftentimes
occupied by smaller and less well maintained vehicles which served as an indicator for a higher
share of college students inside the store.
As further Market research (2008) reveals, coffee consumption varies greatly by ethnic origin.
While more than 65 % of the white population in the Norway drinks coffee on a regular basis. As
the share of those minorities in the overall population continues and is expected to even further
increase, marketers should pay close attention to these segments, especially since their disposable
income will increase as well. A publication by the National Coffee Organization (2008) also
exhibits gender variations with regard to coffee consumption with men drinking about half a cup of


coffee more per day than women (1.9 cups compared to 1.4 cups). Surprisingly, the conducted
observational research and personal interview seem to support that data with a slightly male-heavy
clientele in the coffee shops. The focus group discussion, however, while not necessarily
representative due to higher female participation, suggested a higher than average coffee
consumption and coffee shop frequency among females. Although the focus group delivered the
only hard data about the peoples occupation. some more general insight about its customers.
Probably due to the stores location, he described the stores clientele as mostly collegiate or white
collar working, thereby reflecting the findings of Market research (2008). The focus group
exhibited similar demographics with all of the participants either working on their degree or being
college educated and having white collar jobs even while supporting their educational career.
Psychographics
Analyst Comment (2008) points out that, with the emergence of specialty coffee houses, the
traditional cup of coffee seems to have turned into a lifestyle statement on its own. Coffee is no
longer simply coffee, but rather a French Roast, Latte, Frappuccino, or Macchiato. With increased
coffee education, the quality of coffee has become more important to the consumers and they are
willing to pay the price for it. The focus group discussion revealed that consumers will rather
sacrifice quantity than quality when it comes to their coffee indulgences. As pointed out in Coffee
Culture (2008), we live in a society of increasingly conscious consumers who attach great
importance to the circumstances in which their coffee was cultivated, harvested, and traded.
Consequently, the demand for sustainable and fair trade coffee increased significantly over the past
years which caused Friele to upgrade the share of fair trade coffee from 1% to 3.7%. In addition,
mentions the increasing health consciousness of consumers who seek health benefits in the
products they consume in addition to taste and quality. Therefore, the recent research findings that
contradict common beliefs about coffees harmful health effects and promote coffees protection
against the development of liver cirrhosis, Parkinsons disease, and Diabetes as well as coffees
high antioxidant content, have the potential to attract that particular lifestyle (International Coffee
Organization, 2008).
The recent coffee shop boom with the peoples need and desire for community and relationships.
The authors cite who was the first to coin the term of the Third Place as an alternative to
suburbias lifeless streets, () the plastic places along our strips, or () the congested and
inhospitable mess that is downtown . focus group discussion similar consumer ambitions, the
conducted primary research also found that coffee shop visitors value education and knowledge as
well as material and professional goals very highly. Probably due to the previously mentioned
interest in community and relationships, the observational research studies have shown that coffee
shop visitors are generally gregarious and supportive. Regulars know each other and the respective
barista, stop for a little chat, share the newspaper, or even clean up the tables and rearrange


displaced furniture. However, the apparently very ambitious visitor; as distinguishable by laptop,
study materials, cell phone or pda on the table, or business meeting partner; seems to shows less of
that sociable characteristic.
MarketResearch.com (2008) outlines particular psychographic trends for the East Central and
West Central region of the Norway when stating that adults in the East and West Central regions
are more likely than adults on average to claim a middle of the road political outlook.
Furthermore, both regions show a tendency toward loyalty in their consumer habits as they
demonstrate a slight skew above average on questions related to interest in local stores versus
national chains and are more prone to buy American made products whenever possible.
Indicating above average brand or store loyalty, East Central consumers tend to know what
they like and stick to it while West Central consumers are 17% less likely than the rest of the
country to change brands for the sole purpose of variety.
Behaviour
As summarized by the National Coffee Association (2008), the vast majority of regular coffee-
drinkers consume their brew at breakfast (83.5%) with morning and afternoon constituting the
other two coffee peak times with 22.25% and 14.25% respectively. Market Research (2008) point
out that the specialty coffee trend converted this regular consumption to a small indulgence
where a 3 Latte is not considered an absurdly overpriced glass of milk but rather a quick and
cheap vacation, a break from the hectic modern lifestyle. At the same time, Market Reserch.com
(2008) discusses how different consumers seek different benefits in their coffee shop experience.
While the younger generation is mostly attracted by the atmosphere and experience in the caf, the
higher income segment (75,000 and above) seeks the higher quality product served in those
locations. Interestingly, the normal income bracket does not seem to share that perception as only
34% (compared to 42%) believe that specialty coffee shops indeed serve the higher quality coffee.
Furthermore, customers appreciate the greater selection of coffee beverages in CCD-like stores,
and the success of drive-thru coffee shops and coffee kiosks indicates that customers also seek
convenience and speed for their coffee indulgence. The Norwegian Market for Gourmet/Specialty
Beverages & Confectionery (MarketResearch.com, 2008) points out an interesting cross-reference
with regard to the purchase of gourmet beverages such as specialty coffee drinks. These consumers
are 80.5% more likely to enjoy eating chocolate, 82.2% likely to enjoy eating cookies, and 93.3%
more likely to enjoy eating ice cream or sorbet. At the same time, only 7.6% of respondents said
they regularly drink energy drinks. The focus group showed that if the coffee drink was purchased
for in-store consumption rather than to-go, it will oftentimes be accompanied by a sweet treat,
thereby reflecting the MarketReseach.com findings. While the observational research seemed to
fully support the above cited secondary research, this was not necessarily the case at the other
coffee shops where approximately two thirds of the customers enjoyed their coffee by itself.


The focus group discussion has shown that even non-coffee drinkers are not averse to coffee shops.
While these customers might not opt for the Latte, they appreciate the hot and cold non-coffee
blended beverages as well as the usually rather broad tea selection of the coffee shops. Since
merely 29% of the 18 to 24 year olds are regular coffee drinkers and that share increases to 60% in
the age group above, the former group exhibits great potential with regard to coffee consumption in
general and coffee shops in particular. Upon reaching the age of 35, however, it is highly unlikely
that a non-coffee drinker will convert to a coffee drinker. As mentioned earlier, the boomer
generation can also very well be considered as potential users since they do not only consume the
most coffee inside but also outside the house. While more than 65 % of Norwegian drink coffee on
a daily basis, Coffee Culture (2008) points out that nowadays more than 18% of adults choose
specialty coffee for their daily brew and a noteworthy 60% of the adult population consume it at
least occasionally. The coffee surveys, as administered and compiled by members of the consulting
firm, indicate that the average consumer visits a specialty coffee shop about twice a week;
however, the heavy user might even muster 5 or more visits a week. This data seems to be
supported who specifies in his article that the average customer frequents Friele about six times per
month whereas the companys heavy-user segment, which is comprised of the top 20%, stops by at
the specialty coffee store an average 16 times per month. The loyalty status of coffee shop visitors
varies from absolute to none and the focus group discussion showed an interesting mix of store
preferences. While one participant did not even consider any other coffee shop but Friele, another
participant frequented any coffee shop. Interestingly, the respective store loyalty was not always
related to coffee. Several participants indicated that they preferred the coffee of one coffee shop
but frequently visited another one due to its nicer ambience or higher convenience. Also, some
participants indicated that they had a selection of two to three coffee shops they were generally
loyal to; however, they also acknowledged that the convenience aspect in the time of need can very
well compromise their loyalty.
It is impossible for any consumer in the Norway to not be aware of the specialty coffee and coffee
shop boom that started with Friele just two decades ago. Independent specialty coffee shops
country-wide (SCAA, 2005). As discussed in Coffee Culture (2008), the specialty coffee trend did
not cause consumers to drink more coffee; however, they become more educated about coffee, its
respective origin, the different roasts, and the various brewing techniques. While this might not be
representative of the whole population, the focus group discussion revealed that all participants,
although not necessarily coffee drinkers, have been in a coffee shop before (all but one even in the
past week) and are clearly intending to visit one in the very near future. Also, the discussion
exposed different attitudes toward the product. While none of the participants were hostile, the
non-coffee drinkers front the product with a rather negative or indifferent attitude whereas coffee
drinkers had positive to enthusiastic feelings toward coffee. Coffee: better than sex? (2008) cites a


rather amusing study that was conducted some ads agency. The study reveals that 42% of
consumers consider coffee () more important or equally as important part of their week than
sex taking into account that only 65% of the overall population drink coffee on a regular basis,
this number is rather impressive.
Geographic
The observation of coffee shop locations suggests that coffee shops are mostly found close to
residential areas, strip malls, college campuses, or downtown/business areas. Most coffee shops
rely on the foot traffic these locations provide and recruit their customers from that. However, with
Friele realizing the potential of drive-thru locations, one can observe their stores opening up at
previously unusual locations, such as highway exits.
Research findings that show how out-of-home coffee consumption differs by geographic region.
People in the West are at 42% most likely to quench their coffee thirst at a specialty coffee shop
while that is the case for only 27% of Southerners. People in the Midwest prefer to drink their
coffee at a diner or sit-down restaurant (55%) but they are in second place to enjoy their brew in a
Friele-like coffee shop (34%). A recent poll published investigated the consumers seasonal
drinking by asking whether, and if so how, their consumption changed during the summer months.
Although this does not directly translate to drinking patterns in warmer regions, it might feature
some similarities. Apparently, the overall consumption stays pretty much the same. While 22% of
respondents indicated they drink less, 65% do not alter their coffee drinking habits at all, and 13%
even consume more coffee during the summer time. The conducted primary research; focus group
discussion, personal experience, and interview; showed that many consumers continue to drink
coffee during the warmer season but oftentimes switch to iced coffee beverages. Upon the question
how far they will be willing to travel to the next coffee shop, the participants of the focus group
proved to be very homebound. While they will certainly visit a more remote coffee shop in case
they had business in that area, they pretty much agreed that they will not commute for more than
two miles for the sole purpose of going to a coffee shop.
Primary & Secondary Target Market
Based on the primary and secondary research above, the primary target market for the coffee shop
industry are individuals between 18 and 34 years old. Predominantly, this group is or aspires to
become college educated and works white collar jobs. They live a generally healthy lifestyle, are
rather time-constrained as they combine work and school, constitute very demanding and
conscious consumers with regard to quality and social responsibility, and enjoy the experience in
the coffee shop. The target consumers are fairly sociable and value relationships and community;
at the same time though, they are ambitious and believe in material and professional goals as well
as education and knowledge. Coffee consumption is considered an indulgence for these consumers
and they treat themselves to their favourite coffee drink on an almost daily basis. They are pretty


loyal to their coffee shop or chain and will pass up a competitors store and put up with a longer
commute or detour in order to get to their favourite coffee shop. Lastly, the primary target
consumers live in an urban or suburban area and have one or more coffee shops in a 2-mile radius
from their home and/or workplace.
The secondary target market for the coffee shop industry has the potential to take over the primary
target market in the future. This group consists of the 55+ year olds who enjoy a comparably high
disposable income as their children moved out and their mortgages are paid off. Besides, these
consumers are college educated and hold well paying positions in the white collar segment. They
deserve the higher quality of specialty coffees and have the money to pay for it. Being increasingly
health conscious, the boomers appreciate to not have to choose between coffee consumption and a
healthy lifestyle. Having achieved their professional goals for the most part, these consumers
cherish traditional values, regard their families as very important, and are generally involved in the
community. Consequently, they are very supportive and trusting but might also be somewhat
authoritarian as that comes along with life experience. While these consumers do not belong to the
heavy-user segment, they frequent a coffee shop somewhat regularly but still consider it a special
occasion when they do so. They value the quality and service of the coffee shop experience and are
fairly loyal to their neighbourhood coffee shop; however, their loyalty is more due to convenience
and atmosphere of the store rather than brand or chain, and they might easily switch to a
competitor in case that better meets their current needs. Similar to the primary, the secondary target
consumer lives in urban or suburban areas and has one or more coffee shops in close proximity to
home and/or workplace.
.


Marketing Tactics

Communications Plan
This marketing communications plan has the following underlying strategic objectives:
Strengthening Caf coffee Day brand by unifying its three divisions into one company
Supporting Caf Coffee Day in achieving its sales objectives with strong and well-targeted
marketing programs
Positioning in the Oslo, Bergen and Stavanger markets as a daily
destination and home-away-from-home for customers
Beginning programs that will provide robust and intrinsic information that will ultimately
be used to measure Caf Coffee Day cause & effect and awareness & attitude of marketing
strategies and tactics .
Review of Marketing Objectives, Positioning and Strategies
Caf Coffee Day marketing objectives begin with uniting their three divisions as one sole entity
and giving them a unique and identifiable brand identity. Caf Coffee Day will also go into
targeting two audiences, their primary demographic, those 18-34, and a secondary and historically
untapped Caf Coffee Day demographic, those aged 55+ with an exceptional amount of
discretionary income. Through a variety of programs and re-design of its stores in all three
divisions, its objectives of branding and targeting their respective audiences, should prove to be the
beginning of Caf Coffee Day rebound as a viable competitor in the coffeehouse business and
provider of high quality, top value products to its customers.
Review of Awareness, Attitude and Action
2008 will close with flat sales, based on that metric; consumers attitudes may be taking a slow, but
downward turn in their attitude and feelings toward Caf Coffee Day. However, with sales being
the only real metric in place at the present time and with Caf coffee day will pull in several
directions with its fast expansion, it is an insufficient means to fully grasp a complete
understanding of consumer awareness and attitude toward Caf Coffee Day. Caf Coffee Day will
refocus on measuring consumer awareness and attitude by designing metrics by which to gauge
these key factors in successfully delivering a brand that consumers will gravitate to naturally and
more frequently. Additionally, consumers lack awareness that Caf coffee day is found in three
major urban markets because there is lack of brand identity and little or nothing else to link the
three types of stores together at the present time. Caf Coffee Day will turn around attitude and
awareness by maintaining focus on their objectives and strategies, and utilizing communication
plan tactics to ensure the marketing campaign will give a success.


Communication Objectives
Primary Target
Objective: To increase primary target (80% of customers) per visit spending by 2.5% beginning
Tactic 1: Increased spending will be accomplished by training staff to cross-sell and up-sell each
order with each customer with special focus on those customers within the primary target.
Rationale: Observations as well as research has established that 18-34 year olds are the primary
target market, or bread & butter demographic for coffeehouses. Forty-two percent of 18- to 34-
year-olds who earn more than $75,000 say that when they drink coffee away from home, they head
straight for Caf coffee Day-like shops compared to 32 percent of all away-from home coffee
drinkers (Dawidowska, 2002). This demographic will also contribute positively and in large
numbers to word-of-mouth advertising to their friends and families. Because of their vast
numbers and willingness to drink coffee outside the home, there is great potential for vast reach to
new customers.
Tactic 2: Increased spending will be achieved by offering a loyalty card targeted at the primary
target with the intent to increase sales.
Rationale: With this type of program, there are incentives for the customer to spend more because
customers feel they are getting more bang for their buck and the perks in turn, build and reinforce
customer loyalty and personal attachment to the company. Additionally, it taps into customers
desires to aspire to get something exclusive that not many others have access to. Both aspiration
and the ability to get perks add value to the customers visit, their cup of coffee and their
experience and attitude toward Coffee. A good loyalty program can help a company limp through
several months of poor service and quality, but only a great loyalty program can have customers
ignoring the present reality because they want to believe the past.

Secondary Target
Objective: Increase top of mind recognition by 0% of 20%
Tactic 1: Create activities and events at individual stores tailored to the local neighbourhood
flavour of those aged 55%. Activities may includes things like book clubs, knitting clubs, board
game clubs, live music or local art exhibits and will be promoted at the store level and determined
by store management with the help of input from customers.
Rationale: Many coffeehouses are becoming an extension of customers homes, lifestyles and
neighbourhoods by catering to hosting events tailored to customers interests. By becoming a
destination, it also increases the incidence that Friele is also the neighbourhood top of mind
destination for the secondary target market and anyone who accompanies them.


Tactic 2: Sponsorship of local philanthropic events that the secondary target will be involved in.
The events that CCD will help sponsor will include health related events such as the Heart Walk as
well as family and pet oriented fundraising events, like Run/Walk 5K for Homeless Pets or
participating in homey and cultural community events such as local festivals
Rationale: Those consumers who may not have been aware of Caf Coffee Day can now be
exposed to them at events and fundraisers within their community. That can lead to an action on
the consumers part to try Caf Coffee Day which in turn can result in a second action or visit to
Caf Coffee Day thereby establishing a new relationship with the consumer. Additionally,
choosing to be involved in community events especially with causes that directly benefit the local
community and are important to Caf Coffee Day customers demonstrates that has genuine interest
in the well-being of the people in its communities. It deepens the relationship and connection
between customer and Cafe . the article, The Effect of Corporate Social Responsibility on
Customer Donations to Corporate-Supported Nonprofits, they state, when a company
undertakes a CSR initiative, to the extent that the initiative signals to consumers that the company
has traits that overlap with their self-concepts (e.g., civic minded, compassionate), consumers have
higher degrees of identification with the company and, in turn, are more likely to support the
company.
Objective: To increase Top of Mind in the minds of both the primary and secondary targets.
Tactic: Sampling Weeks will be regular events that will happen at least two times a year per store
and at the managers discretion. This will be a good opportunity to feature seasonal coffee flavours
as well as feature new flavours which has always been a favourite way for Cafe coffee Day
founders to rejuvenate the business as well as themselves. Ice cream flavours and deli treats may
also be part of sampling weeks in year.
Rationale: By bringing new things in City, the interest of the consumer is always piqued and
revived. Additionally, it shows customers that CCD is innovative, fresh and constantly striving to
be the best coffeehouse that best meets the needs of their customers.
Objective: To create brand identity and an identifiable brand family for Caf Coffee Day in its
current three markets of Oslo, Bergen and Stavanger and Building the brand.
Rationale: By creating a unique and identifiable brand and look for CCD, CCD will have the
opportunity to communicate its message more effectively to its consumers so they can associate
CCD coffeehouses as a natural medium by which their needs can be met. The map concept, for
example, provides customers with the information that CCD can be found in other cities that they
may travel to and that in turn leaves customers with the knowledge that they can find a piece of
home just down the road.


Marketing Mix Tool
Product Plan
The objective for Caf Coffee Day is to streamline all of the products. Caf Coffee Day has to
make its product the key element; the key element is the contribution of awareness and attitude in
fulfilling the positioning to deliver on marketing objectives. Caf Coffee Day has to be recognized
as a specialty coffee shop that offers ice cream and deli foods as a perk-flanker product. Menus are
obviously a key ingredient in a specialty shop; this is why Cafe coffee Day menu will consistently
be made for every store. The uniformation of the stores menus will commence. As part of the
menu, Caf Coffee Day will to offer line extensions throughout holiday seasons, meaning
promotional blended flavours available according to the season- i.e. Pumpkin Spice. Management
has steered away from these promotions since they are very busy and things with Caf Coffee Day
have been extremely unorganized. Having seasonal promotions is important to customers since
variety is offered. To make the product plan work efficiently Caf Coffee Day will need to have
these changes in effect immediately. By making Caf Coffee Day being recognized as one
dynamic institution the product line has to be streamlined and promotional tactics have to be
integrated.
Branding Plan
It is very important for a successful branding plan to take place due to the competition. Brand is
merely the identification of a products or services source, whether it is the manufacturer, a
wholesaler, or some other entity. In slightly broader terms, the brand is composed of the title or
name by which the product is commonly known and graphic forms of identification, including
symbols, logotypes or signatures, tag lines, or characters. This is why it is imperative that Caf
Coffee Day has a uniform logo, and store look across the board; Caf Coffee Day needs consumers
to drive by a shop in Stavanger and think they have visited the one they went to in Oslo. The first
part of the plan is to have all storefronts changed to be recognized. We want to revamp all store
signage and interior so Caf Coffee Day can be recognized wherever you go as a single entity. This
will be. Customers need to know what Caf Coffee Day is, no matter what geographic region they
are in, so bye bye Great Scoops! When Caf Coffee Day logo is seen anywhere, we want it to be
viewed with a positive and respected connotation in representing our products and services. The
graphic parameters will be attention getting colours, can be produced large to small scale, and has a
large visual impact. Communicating our brand in an extremely well manner will be associated with
all of our logos. All of Caf Coffee Day logos will be put on to go-ups (as well as quotes, brewing
info, and recycled notations), deli wrap/boxes, and cold beverage cups as well. The goal here is to
lock brand identity into the consumers head; this can only be successful if the customers
experience is superb. In Caf Coffee Day the branding mission is to build and maintain brand
loyalty. Now that we concluded on a name across the board, and logo, our objectives can be met.


The branding plan will have to be finished by the end of the fiscal year. The name parameter was
stated earlier as Caf Coffee Day, and the graphic parameters will be able to be printed in small
and large, eye catching, and will have warm colours. The store setting is an at home environment,
warm and cozythis is why our logo will have a teddy bear as part of it. Also, as exhibited in , a
Caf Coffee Day crest has been developed; this shows a level of prestige as well to the consumer
as well as a symbol of being part of the Caf Coffee Day family.
Packaging Plan
The package bears the responsibility of holding or maintaining our product and communicating the
essence of our brand. This plan is directly linked after the Branding Plan. The packaging will
generate awareness and drawing attention to the product right at the point of sale. We will have our
logo on the 14oz, 16oz, and 18oz to-go cups-along with coffee quotes, tips, and recycled paper
logo. The cups will be recycled to represent that our company has a strong environmental and
social commitment. Our to-go containers/boxes, sandwich wrappers, and even to-go cold beverage
cups will have logos on it. The new packaging is ready for introduction at the beginning of
January, 2008, and will be in all stores by latter February. The packaging represents our at home
store comfort as well as a Great cup, at a Great price! The packages are designed to protect the
product as well, while emphasizing the new logo scheme. An outside packaging firm will be used
to produce these materials for Cafe coffee Day. All packaging seen will have the Caf Coffee Day
crest on it which was designed in November 2008.
Pricing Plan
Caf Coffee Day may be wants to stand out in the coffee industry, so I have to make prices unique.
Caf Coffee Day will keep the same structure. Standard size cup of coffee is about the same price
as one of competitors, Friele for instance. Customers will be getting two more ounces for free,
relatively speaking. Selling a Cafe coffee Dayat a great price will make Cafe coffee Day stand out
from the competition. What Caf Coffee Day will do for a competitive advantage will sell their
medium sized cup lower than its competitors. The price for a tall cup at Caf Coffee Day is $3.50;
and at competitors you will find that their prices for a medium are slightly higher than Cafe coffee
Day tall. In order to have a successful pricing plan, then Caf Coffee Day must review pricing
every quarter. It has to measure with competitor pricing and external pricing to stay on edge. Cafe
coffee Day goal will be to hold their competitive advantage by always offering a Cafe coffee Dayat
a great price.
Distribution Plan
Caf Coffee Day two channels of distribution will consist of the physical stores and the companys
newly designed website. This will all take place in the 2008 campaign. Cafe coffee Day will be
leaning towards a pull strategy; a pull strategy involves marketing to the ultimate purchaser or
directly to consumers to build demand, forcing the outlets to stock the product .The companys


website will be utilized as a distribution channel to retain customers, and market to other
consumers while allowing them to have purchasing power right from their personal computer. The
website will have packaged whole bean and ground coffee, along with merchandise. The main
roasting facility will be in charge of the distribution and orders from the Caf Coffee Day website.
The stores of course will be full serviced, where anyone can get a Cafe coffee Day at a great price!
A future distribution channel that we will like to implement will be Cafe coffee Day vending
machines.
Advertising Message & Media Plan
After close observation of the specialty coffee industry, and Friele as market leader in particular,
we recommend for Caf Coffee Day to refrain from incorporating traditional advertising in its
overall marketing plan. Similar to its largest competitor, Cafe coffee Day main focus is the
companys personal relationship with its customers, and the most effective way to establish or
strengthen that relationship is the customers experience in the stores rather than mass media
advertising. As pointed out by Saunders (Manners, 2005), senior vice president of marketing at
Friele, the corporation relies on its over 12,000 stores as the primary outlet to communicate with its
customers. The coffee giant applies traditional mass advertising very sparingly to promote its
ready-to-drink beverages that are distributed via its retail partnership with Kraft Foods.Due to the
increasing clutter in traditional advertising, customers have become increasingly critical and numb
towards traditional advertising messages which diminishes their effectiveness and therefore does
not justify the comparably high costs. In addition to the limited return that we expect from a
traditional mass advertising campaign. This strategy will also compromise Cafe coffee Day image
as your neighbourhood coffee shop. Essentially, this is the message Caf Coffee Day wants to
convey to its customers and poses a current strength that the company should build upon. Although
the company operates a relatively large number of stores, the coffee shops maintain some
individuality and reflect the neighbourhoods they are located in Furthermore, Caf Coffee Day is
very community involved, and its customers cherish and value that. Especially the Bergen division
of the company has been very successful with its very low-key marketing approach in the past and
benefited primarily from satisfied returning customers as well as word-of-mouth advertising which
constitute the best and most effective advertising any organization can wish for. We therefore
recommend that Caf Coffee Day continues to embark on its rather experience-based and product-
related advertising strategy and take full advantage of its stores to execute this strategy. In support
of this measure, Caf Coffee Day should advertise its stores in the geographically relevant Yellow
Pages, print as well as online, and the City Search website.
Publicity Plan
The re-branding of the stores will result in a unified brand name, trademark, and product portfolio,
thereby constituting the most important and cost-intensive marketing measure for Caf Coffee Day


at this point. The successful implementation of this measure will be accompanied by a news release
that the company will make available in its stores, publish on its website, and distribute to local
newspapers in its operating markets for publishing. An example of the news release can be found
in Appendix B3. This will keep customers informed about the current changes and ease the
transition especially in the Bergen and Oslo markets. In addition, Caf Coffee Day will sponsor
philanthropic events in the Stavanger, Bergen, and Oslo areas to promote its corporate social
responsibility. As outlined in the budget section, the company will allocate 0.25% of its annual
sales for this purpose. Corporate headquarters of Caf Coffee Day will have to determine what
particular events the company is going to support; however, in order to be consistent with the
overall company image, the sponsorships should involve causes that directly benefit the respective
city (Stavanger, Bergen, Oslo).
Interactive Communications Plan
While the companys website makes up the major component of the interactive communications
plan, Caf Coffee Day will at least partially supplement these measures with instore
communication tools in order to serve customers who lack computer access. The plans purpose is
to engage customers in the brand and have them voluntarily seek or provide information about the
company or its products. Clearly, the interactive communications plan should tie in with the
companys overall marketing strategy. The following paragraphs outline a few examples of how
Caf Coffee Day can implement such a plan.
The corporate philanthropic sponsorships provide a great opportunity for the company to interact
with its customers. The organizations website should allow customers to submit a proposal for the
sponsorship of a cause that they consider worth supporting. Corresponding proposal forms should
be available in the stores which customers can hand to the store manager for forwarding to the
corporate headquarters. The top management of Caf Coffee Day will then assess the input and
decide on the moneys allocation. Besides, customers should be able to suggest a neighbourhood
event to be included in the bi-monthly newsletter. It will be at the discretion of the store manager,
based on previously established corporate guidelines, to decide whether to mention the particular
event in the newsletter. Furthermore, customers should be encouraged to come forward with ideas
about in-store events that Caf Coffee Day can facilitate. If the implementation costs are
reasonable and there is a definite interest in the community, the store manager should confer with
corporate headquarters to carry through with the plan. For either purpose, the website should be
equipped with an appropriate form and stores should have little proposal cards available.

The customer loyalty card will also allow for interactive communication between Cafe
coffees its customers. Not only does it provide the company with valuable information
about its customers demographics but also about their purchase patterns with regard to


location, time of day, frequency, and product. In the future, this will permit Caf Coffee
Day to initiate individually targeted relationship marketing efforts. Besides, the customers
will be able to charge their card in order to conveniently pay for their in-store or online
purchases. The management of the card accounts will be possible through the companys
website which will simultaneously increase the traffic on the site and hopefully encourage
packaged coffee and merchandise purchases.
Caf Coffee Day can implement another interactive communications plan that will not only tie in
with the companys product development but also couple the customers in-store experience with
Cafe coffee Day website. Caf Coffee Day can introduce newly developed coffee blends in its
stores via Coffee Sampling Weeks and have customers vote for their favourite blend on the
companys website. The one blend that obtains the most votes will eventually be featured on the
stores regular menu and be sold as packaged coffee for at-home consumption.
Other Tools
In lieu of a traditional advertising campaign, Caf Coffee Day will foster its neighbourhood image
and its community involvement by facilitating in-store events on a very regular basis. Thereby, we
will like to allow the store managers a certain degree of liberty as to what events they will like to
implement based on the individual stores clientele and premises. Some potential events include,
but are not limited to, game board nights, knitting afternoons, speed dating evenings, scrapbook
sessions, book lectures, or coffee education sittings. These events will be publicized via a bi-
monthly store newsletter, which will not only feature the calendar of events in the store, but might
also include important events in the stores respective neighbourhoods such as a library book sale,
garage sales, or even Election Day. In addition, the newsletter can feature a product of the month
section, general coffee or corporate news, and coffee or sweet treat recipes. While corporate
headquarters will be responsible for developing and designing the general content of the
newsletter, the individual stores can then insert their respectively featured events in the document
before they are made available in the stores and emailed to the companys loyalty card holders.


Budget
Norway Culture will capitalize on the strong demand for high-quality gourmet coffee. The
owners have provided the company with sufficient start-up capital. With successful
management aimed at establishing and growing a loyal customer base, the company will
see its net worth doubling in two years. Norway Culture will maintain a healthy 65% gross
margin, which combined with reasonable operating expenses.
Annual projected sales of $584,000 in 2011, which is in line with the industry averages for
this size of coffee bar Overall, as the company gets established in the local market, its net
profitability increases from 17.06% in FY2011 to 17.63% in FY2014 The table below
outlines the projected Profit and Loss Statement for FY2012

The table below outlines the personnel needs of coffee bar
Personnel Plan
Year 1 Year 2 Year 3
Manager $35,000 $37,800 $40,824
Baristas $50,000 $54,000 $58,320
Employees $39,600 $52,000 $56,000
Total People 30 35 40
Total Payroll $124,600 $143,800 $155,144

General Assumptions
Year 1 Year 2 Year 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%


Profit and loss Account
2012 2013 2014
Sales $584,000 $642,400 $706,640
Direct Cost of Sales $2,04,000 $224,840 $247,324
Other $0 $0 $0
Total Cost of Sales $204,400 $224,840 $247,324
Gross Margin $379,600 $417,560 $459,316
Gross Margin % 65.00% 65.00% 65.00%
Expenses
Salary- payroll $124,600 $143,800 $155,144
Sales and Marketing expenses $25,800 $27,600 $31,000
Depreciation $5,400 $5,500 $5,500
Rent $48,400 $52,800 $52,800
License &consulting fee. site
search, Lease negotiation $6,000 $6,000 $6,000
Maintenance $5,840 $6,424 $7,066
Real Estate & Leasehold
Improvements, Design &
Development $9,000 $9,500 $10,000
Freight export expenses $18,690 $21,570 $23,272
Total Operating Expenses $243,730 $273,194 $290,782
Profit Before Interest and
Taxes $135,870 $144,366 $168,534
EBITDA $141,270 $149,866 $174,034
Interest Expense $2,821 $2,326 $1,618
Taxes Incurred $33,740 $35,510 $42,424
Net Profit $99,308 $106,530 $124,491
Net Profit/Sales 17.00% 16.58% 17.62%


Balance Sheet
2012 2013 2014
Assets
Current Assets
Cash $195,358 $296,358 $417,648
Inventory $21,175 $23,293 $25,622
Other Current Assets $0 $0 $0
Total Current Assets $216,533 $319,651 $443,270
Long-term Assets
Long-term Assets $59,170 $61,170 $63,170
Accumulated Depreciation $5,400 $10,900 $16,400
Total Long-term Assets $53,770 $50,270 $46,770
Total Assets $270,303 $369,921 $490,040
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $31,974 $31,947 $34,836
Current Borrowing $6,700 $3,400 $100
Other Current Liabilities $0 $0 $0
Subtotal Current
Liabilities $38,674 $35,347 $34,936
Long-term Liabilities $20,000 $16,415 $12,454
Total Liabilities $58,674 $51,762 $47,390
Paid-in Capital $140,000 $140,000 $140,000
Retained Earnings ($27,680) $71,628 $178,159
Earnings $99,308 $106,530 $124,491
Total Capital $211,628 $318,159 $442,650
Total Liabilities and
$270,303 $369,921 $490,040


Capital
Net Worth $211,628 $318,159 $442,650

Expense 2012 2013 2014
Direct Cost of Sales $2,04,000 $2,24,840 $2,47,324

Salary- payroll $1,24,600 $1,43,800 $1,55,144
Sales and Marketing expenses $25,800 $27,600 $31,000
Depreciation $5,400 $5,500 $5,500
Rent $48,400 $52,800 $52,800
License &consulting fee. site search, Lease negotiation $6,000 $6,000 $6,000
Maintenance $5,840 $6,424 $7,066
Real Estate & Leasehold Improvements, Design &
Development $9,000 $9,500 $10,000
Freight export expenses $18,690 $21,570 $23,272
Total Expence $4,47,730 $4,98,034 $5,38,106

Income

Sales $5,84,000 $6,42,400 $7,06,640


Break-even Point

Advertising
Magazine:
Objective of give advertise in magazine is create awareness about coffee caf. Caf coffee day will
give advertisement in 5 magazine in Oslo, Bergen and Stavanger. We will give advertisement only
for 2 month. Name of the magazine is below

Name Circulation

1. Se og Hor 235,695
2. ) Hjemmet 2 206,543
3 Hor og Na 179,422
4. Familien 129,367
5. Norsk ukeblad 126,591
Newspaper:
CCD will give advertisement in news paper when begging of the Caf coffee shop.Name
of News paper is below


Name Circulation

1. Bergens Tidende 90087
2. Aftenposten 256639
3. dagbladet 186136
4. Adresseavisen 86570
5. Dagens Nringsliv 69262

Banner
CCD will put 2 -2 banner of caf coffee day for 1 month in Oslo, Bergen and Stavanger.

Television
At initial level caf coffee day will not focus on television advertises because television
advertises is very costly.

Above list of advertising tools will main focus of Caf coffee day. Caf coffee day will
also use Social networking sight like Face book, twitter, my space, blogging, press release,
Billboard and celebrity branding and Zero Budget marketing strategy will also try to
follow


Conclusion
As my report based on launching of Caf coffee day in Norwegian market
from the whole study on the various parameters it is not easy to enter in new
market without any research and study of that market. So after study I came
to know that in Norway Caf coffee day have good opportunities. Reason of
selecting this country is, Norway is big market of coffee, per capita
consumption of coffee is 10.7 kg so I decided to select this country


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