- Università: Em Lyon Business School
- Docenti:
Monica Grosso
- Studenti:
Zhelun Wang, Dongdong Yao, Areed Ahmed
The Concept
Just like the name of the business, this idea is combined with two major function: A Coffee shop and a gallery. The gallery part of the business could provide an artisan and diverse environment to the Cafe, and the Cafe could provide some drink and food services to the people who come to visit the gallery, along with the environment for artists and visitors to talk and communicate.
Beside, a coffee car with an espresso machine will drive around Paris, even further. This will help the influence of this business cover more area with related Social Media Plan and Omni Channel Marketing strategy.
Layout
The layout of the physical store is designed based on a structure of a Cafe with a much bigger space at the back to allow the gallery to exist.
For many customers, especially at this special time, they may just want to grab a cup of good coffee and leave, or just come in and have a set of afternoon tea. Thus, we believe that the coffee bar should at the front part of the business. For visitors who want to visit the gallery , they usually do not mind take few more steps, and there will be a board about the gallery and shows just in front of the door. If gallery visitors wish to have some Cafe services or having some conversations in quiet environment, there is a reserved room or space just next to the gallery wall.
Location
The area around Rue de Charonne is one of the most artisan district in paris, and lucky for the business, it’s not fully developed. There are many very interesting shops and restaurants, but also many spots available for new businesses. It is not far away from the center of Paris, and it is also very close to the Republique area, which is famous for their galleries. It has the perfect environment for the business.
With nice neighbourhood comes nice , stable customers for the quality coffee and gallery. There are many artists, photographers and artisan chefs working or living around the area. Those stable customers are very important for our type of business. And there is a coffee car driving around, so customers from further places may come to visit the shop as well.
Coffee Market
More than half of the French(58%) consume coffee outside their home.
6000 cafes in Paris today
Besides people’s favorite Noisette，Allongé，Filtré，Café Crème
The term ‘specialty coffee’ goes beyond the flavour and quality of the drink.
Many independent restaurants are finally offering specialty coffee, sourced from quality roasters, and produced by educated staff with proper equipment. The specialty coffee market is difficult to quantify, as it is still very recent,” Antoine Netien, founder of Coutume Café told us. “But it has been growing over the last seven years, and is spreading to many regions in France.” “The potential in France is enormous,” says Christophe Servell. He estimates the market could grow from the 2 percent of 300.000 tons sold in France each year to a 10 percent market share by 2025
Paris is home to more than 1,000 galleries, or 48% of the total contemporary art galleries identified in France.
Gallery market
The average turnover of Parisian galleries reaches €1.15 million compared to just €241,000 in the region
The 3rd arrondissement includes 206 galleries
The 6th arrondissement has 189 galleries
The 8th arrondissement houses 152 contemporary art galleries
Target customers
Age: 20-40: since we are using social media
Purchase Habit: Frequently in coffee, and not price sensitive for artisan works
Revenue stream
Large: Art piece collectors
Medium: Specialty coffee lovers
Small: Regular coffee consumption
Hobbies and Job titles: Coffee Lovers, Artists, Photographers, designers, Content creators, Chefs
Income: Middle or higher class, and artists (artists are in all classes): to consume especially coffee
Location: Around 11e, but all neighborhood in Paris could be visited by our cars
Competitors
Cafes (Mainly)
Some coffee shops distributed around us.
The Grab-and-Go Cafe
The Restaurant
The Hipster Hangout
The Corporate Store
The Old House
Gallery
ThanKs to the distribution of galleries at the 3rd, 6th and 8th district, there's are less competitors around us and most of them are contemporary galleries.
Omni Channel Mkt
CRM and communication
Detailed questionnaires: For customers, we will ask for the opinions about the products, art pieces, activities and their favorite media channel to maximize their experience and satisfaction.
Pick the right channel: Build the best channel combination to delivery our customers what they desire to see with the right medium.
Segment groups to target with customized marketing campaigns: Segment our customers by their preference of product, tast, time to consume, affordability to delivery customized content for them.
Customized communication: Based on our customer profile and preference, deliver them with the right product, activity and promotion.
Community: Build our own community for customers to communicate about their interests, experiences of coffee product and our art piece. Aslo, cutting-edge information of coffee product and art piece will be posted to lead customers to a sustainable communication.
Spread the experience: Get all our promotional and communication methods together, spread customers’ positive experiences among all channels, this will lead our CRM to a positive cycle of catching customers attention.
Loyalty
Free expresso shot.
Free upsize with text coupon.
New syrup flavor.
Sell excess pastries with a midmorning text coupon.
Remind customers of Iced Drinks on a hot day.
Internet/hot-spot password for the day/week.
Run a “bring a friend get 50% off” special when it’s slow.
The Financial Feasibility – Forecasting
Operational Cost of each day: 890 euros
Let us say we do a business of 1400 euros each day
So, by plugging in the numbers to the equation we get:
1400-890 = 510 euros = 510/890= 0.57 x 100 = 57% Gross margin
Considering we operate 7 days/week
with a gross margin of 57% which is 1400 euros. We need to sell at least 200 cups of coffee each day with an average price starting from 7 euros.
Advantage is that we can cover it up not only by the coffee bar but also with the coffee car.
Also, the Art gallery will contribute to revenue with customer purchases.
