Coffee & LiquorBusiness ConceValue Proposition, and LocationShot O’ Clock Coffee is a late-night coffee shop located in the Redmond Town Center that specializes in selling alcoholic-based coffee, alongside regular coffee, to our target audience of young adults. Furthermore, the coffee shop setting offers a conducive space for studying, working, and/or socializing.Market Size and Market SharesThis slide will summarize the market size and competitive market shares of your Geo Zone as follows:Market Sizing and Competitive Market SharesThis estimates the size of your market (again, within three miles of your Geo Zone center point) and will help with market segmentation and targeting in subsequent slidesPlease provide an estimated market size for all coffee shops (including Kiosks found on Google) in your Geo Zone for 2021 in terms of coffee customers and sales per day, and then extrapolate to forecast the total annual market in 202Assume here that COVID will no longer be present but it might still have an impact on where people consume coffeeThis Market Sizing step is quite easy by using a bottom-up approach. Some of this information will be collected through the Week 3 and 4 Team Assignment.1. How many coffee businesses are there in your 3-mile Geo-Zone radius?2. How many customers do you estimate that each shop in this zone serves per day?3. What are the average sales per customer-visit, per day, on coffee drinks only? (Note: don’t include food or non-coffee drinks)4. What is the resulting size of the market in terms of customer store-visits per year and revenue per year in the Geo Zone?5. What is the resulting current market share of each competitor?Please show an image of a map showing your geographical zone and the total coffee shops in this zone. A table of the above analysis might helpCase Background:Expresso Coffee Investments is a consulting company that specializes in helping investors research and develop markets for investments in coffee businesses in different urban areas of the United States.The CEO of Expresso Coffee, Mr. James Reinnoldt, needs your team to develop marketing briefs for the development of some new types of coffee or tea service businesses in the Puget Sound area that will launch on January 01, 2022.The clients of Expresso Coffee are quite open when it comes to different types of coffee service businesses as investment vehicles. For example, they could be: Coffee Drive-Through Kiosks Coffee Walk-Up Kiosks Coffee Delivery Only Coffee Sit-down/Takeaway Corporate Coffee Clubs Tea Shops Ethnic “Coffee Experiences”Being coffee purists, however, these investors want these establishments to only sell coffee and tea i.e., no loose tea or coffee beans, waters, food or pastries within your geo-zone. In fact, they like their businesses to keep a narrow product mix: Menus will offer a minimum of five and a maximum of ten types of coffee or tea drinks with no food or other beverage options.(*) There will be no “brownie” points for offering ten versus five types of drinks. A menu selection of only 5 types of large-size coffee and/or team drinks is fine. But. Teams can offer up to ten types if they wantMr. Reinnoldt has also taken note of a number of different trends and technologies that might help provide a competitive advantage as well as overcome Seattle’s reputation as having the highest minimum wage in the country. Any such, any coffee business endeavor must be innovative, well targeted, and highly efficient. However, the concept must also be legal and can only take advantage of technologies that already work somewhere in the world (e.g. robots from Japan).In terms of branding, he also wants each of these coffee businesses to take on a very separate identity—logo, name etc- that is separate from the Expresso Coffee name and logo.For more information on Competitive Market Shares check on:https://en.wikipedia.org/wiki/Market_share
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