COORG COFFEE BEANS

EXECUTIVE SUMARRY We prepares green Arabica coffee beans grown in Coorg, India for exportation to

American specialty roasters . Our coffee stands out from that of the competition. We prepare the top five percent, in

terms of quality standards of all Arabica beans on the market. We predict growth of twenty percent in the first year with sales increasing gradually. In

year three the plant will run at maximum capacity and based on the current price of coffee we expect excellent profits.

We have positive indicators from current importers that the additional amount of beans will be sold in the market.

The objectives of Coorg Coffee Beans is:- Increase production and sale from 180,000/60kg bags per year to approximately

240,000/60kg bags per year in the first year of operation at the proposed facility and reach maximum capacity of 300,000/60kg bags per year by year three.

Increase sales substantially in the first full year of operation. Establish strategic relationships with minimum 5 American importers in

Seattle(Washington). Increase gross margins in the next three years.

COMPANY SUMMARY & OWNERSHIP Coorg Coffee Beans buys and prepares raw coffee in parchment or coffee

in its post-harvest stage. The finished product, green Arabica coffee beans are packaged in 60kg

sacks and sold on the U.S.A market in Seattle(Washington). Our customers are primarily American importers who provide high-quality

beans to the specialty roasting market. Coorg Coffee Beans is a Private(LLC) preparer and exporter of Indian

grown coffee beans. It is owned and operated by SINGH Pramod Kumar and his friends Anup and Krishna Pandy.

INDIA-USA BILATERAL TRADE AND INVESTMENT

India is currently 13th largest goods trading partner with $57.8 billion in total (two ways) goods trade during 2011.

Goods exports totaled $21.6 billion; Goods imports totaled $36.2 billion. The U.S. goods trade deficit with India was $14.5 billion in 2011.

Trade in services with India (exports and imports) totaled $28 billion in 2011 (preliminary data).

Services exports were $11.6 billion; Services imports were $16.9 billion. The U.S. services trade deficit with India was $5.3 billion in 2011.

U.S. foreign direct investment (FDI) in India was $27.1 billion in 2010 (latest data available), a 29.5% increase from 2009.

India FDI in the United States (stock) was $3.3 billion in 2010 (latest data available), up 40.8% from 2009.

COMPETETIVE COMPARISON In order to differentiate our product from the competitors all beans are

guaranteed fresh and are shipped within seven days of preparation. In addition all beans are sorted at ninety-five percent screen 18 and above and

compared to the industry standard ninety percent screen of 17 and above. The beans shipped by Coorg Coffee Beans are therefore larger than most and are guaranteed fresh.

In addition, all of the farms from which Coorg Coffee Beans purchases coffee adhere to environmentally sound farming practices and avoid the use of pesticides and chemicals in crop production.

There are approximately 5 competitors who offer a product similar to ours. Our research indicates that with the additional capacity we would become one of the top three in terms of quantity, providers.

We have the advantage of established distribution channels which has been outsourced. In addition improvements in our marketing efforts will further separate us from the larger market and from our close competitors.

MARKET ANALYSIS SUMMARY Coffee is the second largest commodity market next to oil . Imports of

coffee in the United States have increased ninety-four percent in the past five years .

In addition, demand for green coffee is above the market clearing level and market price and crop yield estimates are at an all time high.

U.S.A imports 1.42% coffee from India in a year. The Arabica bean which is considered to be the best in the world and as

such, the demand for Arabica beans is high on the specialty roaster market. Specialty roasters are willing to pay more for Arabica beans and attempt to distinguish themselves via the characteristics of the bean they use i.e. the location in which it was grown, farming methods, bean size, etc.

The final consumer is relatively price insensitive if the coffee is good, has won awards, or is compatible with a popular trend. We estimate that specialty roasting in the U.S.A alone is a ($USD) 30-32billion market.

MARKET SEGMENTATIONThe potential customer groups for Coorg Coffee Beans are:- American importers of green Arabica beans: Market research suggests

that there are around 15 importers of Green Arabica coffee in Seattle(Washington) in United States that would be able to handle the quantities of our shipments and are in our target market .

Combined, they import a total of 360 tonne/60kg bags of Indian coffee per year.

American specialty roasters: As we move towards maximum capacity we will plan to more aggressively target this audience and we hope to eventually reduce transactions with wholesalers and capture their value-added costs as profit.

PRODUCT PRICINGPenetration Pricing: The price charged for products and services is set artificially

low in order to gain market share. Once this is achieved, the price is increased.

PRODUCT PRICING CALCULATORPRODUCT DESCRIPTION: GREEN ARABICA BEANSWEIGHT: FOR 1 KGFIXED COST: 0.40$VARIABLE COST: 0.50$ COST OF PRODUCTION: 0.90 $SALES & MARKETING : 0.50 $EXPORT DUTIES: 0.33 $SHIPPING AND HANDLING CHARGES:0.50$IMPORT DUTIES AND TAXES : 0.10$TOTAL COST : 2.33$SELLING PRICE: 3.35$

The price for 60 Kg bag of Green Arabica Coffee will be 201$

DISTRIBUTION PATTERNS All of the coffee produced for exporting by Coorg Coffee Beans is

approximately eighty-five percent of all coffee produced for exportation in Coorg , India and is shipped from Mangalore Port.

Prepared coffee is shipped via Road Transport (Trucks) from the Coorg Coffee Beans plant in Coorg to Mangalore Port.

From the port it is then shipped, in 20 foot containers(FCL) to the Seattle Port(Washington) via cargo ship with Mediterranean Shipping Company. Distribution charges are assumed by Coorg Coffee Beans up to the arrival of the shipments in the Port and custom duties also after that importers assume responsibility, as detailed in contract, of the shipment and additional distribution charges.

Incoterm Delivered Duty Paid (ICC Incoterm 2010) from Mangalore Port, India will be used for shipment.

All jurisdiction are subject to High Court in Bangalore.

DIFFERENT STRATEGIESStrategy Pyramid Our main strategy is to communicate the unique and desired attributes of

our coffee to larger segments of the American markets. We sell a superior product, yet one that can be considered a commodity. It is therefore important that we effectively communicate the unique aspects which make it ideally suited for a niche market.

Marketing Strategy The marketing strategy will include the use of targeted print media,

advertising and direct selling to importers in the United States who provide green coffee to specialty roasters. The primary goal of all marketing efforts will be to communicate this to existing and potential customers.

Promotion Strategy Relationships are key to success in the export business. Importers in Los

Angeles will be invited for visiting the facility, family home, and farms from which coffee is purchases. In addition to personal selling our company has identified several specialty publications within which print advertisements will run. Direct mail, in the form of personal letters will also be used to communicate with existing and potential clients.

Distribution Strategy The distribution system of India is very efficient and organised. Distribution costs for exports

are absorbed by us. Increasing the volume of our exports will makes us eligible to receive reduced fees and helps ensure that trucks are running at maximum capacity.

Marketing Programs Our most important marketing program is an increase in online selling combined with targeted

direct mail and print advertising.

Positioning Statement For American importers of Indian coffee who will use our coffee to supply to specialty roasters.

Coorg Coffee Beans will be of highest quality and largest beans available. Unlike many exporters, our beans exceed the minimum acceptable quality standards and are

shipped within one week of preparation to ensure the largest and freshest beans on the market.

Pricing Strategy The import market largely determines the price of imported coffee in the United States. We

have priced our product for 10 MT contract 16,000 $.

Sales Strategy To speed up the customer service, at least three employees will be servicing clients ,while one employee

will be preparing the customer's order, the second one will be taking care of the sales transaction and the third will take care of CUSTOMER SERVICE SUPPORT 24/7.

Sales Forecast The following chart and table show our present sales forecast. We

project healthy growth in sales in 2013, a slightly smaller increase again  in 2014, and reach maximum for production capacity in 2015 representing a large growth over the previous year.

2013 2014 20150

1

2

3

4

5

6

7

8SALES IN USD LACS

SALES IN USD LACS

FINANCIAL PLANNING We want to finance the business through a start up capital invested

by owners and combination of long-term debts. Purchase of new equipment will require approximately eighty percent debt financing.

Additional technology will be primarily financed with cash-flow. Inventory turnover must remain at or above four or we run the risk of

backing up orders. We expect to maintain our collection days at 30 with thirty percent of

sales on credit. In addition, we must achieve gross margins of thirty-five percent and

hold operating costs no more than sixty-five percent of sales.

ESTIMATED YEARLY PROFIT

2013 2014 20150

50000

100000

150000

200000

250000

PROFIT IN USD

PROFIT IN USD

SAMPLE REQUISITION FORMPlease use the below form to request green coffee samples.Note: Samples will only be sent out within United States Of AmericaCoffee Type :- Coorg Green Arabica

Company Name :-

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PACKAGING

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