Marketing Management – II

Project on

Retail Management

By: Sakshi Sharma, Ellora Priyadarshinee

Kripa Mohapatra, Neeha Nair, Sohani Rath
 ACKNOWLEDGEMENT

This project is a combined effort of all the resources and people who have contributed in their
own ways in making this report effective and purposeful. In our report we would like to take
theopportunity to thank all those who have been instrumental in preparing this project.
We wish to express our deep sense of gratitude to Prof. Joydeep Biswas, Professor, KIIT
School of Management, KIIT University for his invaluable guidance, motivation, constant
inspirationand above all for his ever-co-operative attitude in completing this project.

Neeha Nair
Sohani Rath
Sakshi Sharma
Kripa Mohapatra
Ellora Priyadarshinee
 CONTENTS

TOPIC Page No.

INTRODUCTION 1
OUTLET 1: INDISTINCT CHATTER 2
OUTLET 2: CAFE 16 SATYANAGAR 3
OUTLET 3: BLUEBERRY 4
OUTLET 4: RETREAT 6
OUTLET 5: CHOCOLATE HOUSE 7
OUTLET 6: SWEET HEART 8
OUTLET 7: OYE CAFE 9
OUTLET 8: CAFE ODISHA 11
OUTLET 9: RADIUM CAFE 12
OUTLET 10: THE MUGS AND COFFEE 13
CONTRARY RETAIL OUTLET:
14
SAREE (NARULA)
COMPARISON BETWEEN A CAFÉ AND SAREE
16
OUTLET
SUMMARY 17
Introduction
The cafe market in India has seen significant growth in recent years due to changing consumer
lifestyles, increasing disposable incomes, and a growing cafe culture in urban areas. The market
is highly competitive, with both domestic and international players vying for a share of the
market. Some of the popular domestic cafe chains in India include Cafe Coffee Day, Barista, and
Chaayos, while international chains like Starbucks, Costa Coffee, and Dunkin' Donuts also have
a significant presence in the country.The cafe market in India is not just limited to coffee but also
includes tea cafes, juice bars, and bakery cafes. With a large young population, there is also a
growing demand for cafes that offer healthy food and beverages.The pandemic had a significant
impact on the cafe market in India, with many cafes being forced to shut down temporarily or
permanently. However, with the easing of restrictions and the rollout of vaccines, the market is
slowly recovering.Going forward, the cafe market in India is expected to continue growing as
consumers increasingly seek out trendy and comfortable places to hang out with friends and
family, work remotely, or simply enjoy a cup of coffee or tea.

The cafe industry is a diverse and dynamic sector that includes a variety of businesses ranging
from small independent coffee shops to large multinational chains. Here are some key figures
and statistics on the cafe industry:

● The global coffee market was valued at USD 102.15 billion in 2020 and is projected to
grow at a CAGR of 4.7% from 2021 to 2028.
● In the United States, the cafe and coffee shop industry generates around $45 billion in
annual revenue.
● According to a report by IBISWorld, the cafe industry in Australia was valued at AUD 9
billion in 2021 and is expected to grow at an annual rate of 3.8% over the next five years.
● The cafe industry in the United Kingdom generated £9.6 billion in revenue in 2019, and it
is projected to grow by 6.2% from 2020 to 2025.
● The cafe industry in India is expected to grow at a CAGR of 12.4% from 2021 to 2026,
driven by factors such as rising urbanization, changing lifestyles, and increasing
disposable incomes.
● The cafe industry has been significantly impacted by the COVID-19 pandemic, with
many businesses facing closures and reduced revenue. However, there has been a
significant shift towards online ordering and delivery services.
● The most popular types of coffee drinks worldwide are espresso, cappuccino, and latte.
● The global tea market was valued at USD 49.46 billion in 2020 and is expected to grow
at a CAGR of 5.8% from 2021 to 2028.
● In addition to coffee and tea, cafes also offer a variety of food items, such as sandwiches,
pastries, and cakes.

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OUTLET 1: INDISTINCT CHATTER
A quaint space designed with lush, uber-modern interiors and an iconic glass ceiling, it promises
a great experience on every visit. Cafe Indistinct Chatter offers a hand-crafted world-cuisine
menu. This cafe is an ode to the city’s hidden aesthetics and a community hub for all things artsy
in Bhubaneswar and a perfect place to catch up with friends and
family.

Product Assortment Hot coffee and Cold Coffee

Location Saheed Nagar
Average Price of coffee 130
Sales 12,00,000
No.of footfalls 6000
Target audience Youth
No. of employees 20

Operating expenses 8,00,000

Square feet 1150

Merchandising Visual design

Cozy ambience with aesthetics views,

Store design
outdoor design with beautiful lighting.

Promotion Paid promotion over Facebook and Instagram

Sales - Operating Expenses
Gross Profit
12,00,000-8,00,000=4,00,000
Sales Per month/Store Size
Sales per square foot
12,00,000/1150=1043.47
No of bills /Average footfall
Conversion Rate
2400/6000=40%
Sales Per months /No of bills
Average transaction value
8,00,000/2400= 333.33
Average salary of
10,000
Sales person

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OUTLET 2: CAFE 16 SATYANAGAR

Bhubaneswar's first house cafe at Satyanagar which started around the year 2021, with a homely
ambience and vibe, this place serves international dishes with some Indian touch . A paradise for
bibliophiles as they have great collections of different kinds of books starting from travel to
food,scientific books,they have it all.

Product Assortment Hot coffee and Cold Coffee

Location Satya Nagar

Average Price of coffee 220

Sales 9,00,000

No.of footfalls 4500

Target audience Youth, Families

No. of employees 10

Operating expenses 5,00,000

Square feet 2500

Merchandising Visual design related to product

Nature ambience with beautiful

Store design
lighting and cozy environment.

Promotion Paid Social Media promotion

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Gross Profit 9,00,000 - 5,00,000 = 4,00,000

Sales per square foot 9,00,000 / 2500 = 360

Conversion Rate 2400/ 4500 = 53%

Average transaction value 9,00,000 / 2400 = 375

Average salary of
10,000O
Sales person

OUTLET 3 : BLUEBERRY
This cafe has been renovated in a Greek Themed interior with all the blues and flowers
everywhere with cozy seating corners and comfortable atmosphere. It is definitely one of the
beautifully designed Instagrammable Cafes in the city giving Aesthetic vibe and eclectic decor
and is located in Bhubaneswar . The love music and guitar lends a nice and positive ambience to
the place.

Product Assortment Hot coffee and Cold Coffee

Location Infocity
Average Price of coffee 130
Sales 6,00,000
No.of footfalls 3600
Target audience College Students

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No. of employees 10

Operating expenses 2,00,000

Square feet 150

Merchandising Visual design,Cupcakes in display

Store design Ambiance, Live Music, Décor

Pamphlet, Food Bloggers

Promotion
done by Ollywood stars
Sales - Operating Expenses
Gross Profit
6,00,000-2,00,000=4,00,000
Sales Per month/Store Size
Sales per square foot
6,00,000/150=4000
No of bills /Average footfall
Conversion Rate
3000/3600=83.3%
Sales Per months /No of bills
Average transaction value
6,00,000/3000= 200
Average salary of
10,000
Sales person

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OUTLET 4: RETREAT
The most underrated side street cafe in KIIT road.They provide you with a wide range of coffee
at reasonable prices.

Product Assortment Hot coffee and Cold Coffee

Location Patia
Average Price of coffee 100
Sales 4,50,000
No.of footfalls 4500
Target audience College Students
No. of employees 8
Operating expenses 1,95,000
Square feet 350
Merchandising Visual design,Glassware

Store design Colorful Interior, Ambience

Promotion Bloggers over Social Media

Sales - Operating Expenses
Gross Profit
4,50,000-1,95,000=2,55,000
Sales Per month/Store Size
Sales per square foot
4,50,000/350=1285
No of bills /Average footfall
Conversion Rate
3000/4500=66.66%
Sales Per months /No of bills
Average transaction value
4,50,000/3000= 150
Average salary of
10,000
Sales person

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OUTLET 5: CHOCOLATE HOUSE
The chocolate house is quite exquisite. It has great interiors. The seating is quite comfy and cozy.
The chocolates are fab. A very humble wood frame decor

Product Assortment Hot coffee and Cold Coffee

BMC Mall street , Saheed
Location
Nagar
Average Price of coffee 100
Sales 12,00,000
No.of footfalls 4500
Target audience Youth, Family
No. of employees 7
Operating expenses 3,00,000
Square feet 650
Merchandising Visual design
Lighting, Ambience with a
Store design
design of pine woods .
Promotion Bloggers over Social Media
Sales - Operating Expenses
Gross Profit 12,00,000 - 3,00,000 =
9,00,000
Sales Per month/Store Size
Sales per square foot
12,00,000/ 650 = 1846.15
No of bills /Average footfall
Conversion Rate
1500/4500 = 33%
Sales Per months /No of bills
Average transaction value
12,00,000/3000= 400
Average salary of
10,000
Sales person

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OUTLET 6: SWEET HEART
Small eating and drinking establishment, historically a coffeehouse, featuring a limited
menu.

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 Product Assortment Hot coffee and Cold Coffee
Location Kiit square, patia
Operating expense 50,000
Average price per coffee 80
Square 250

No.of footfalls 20
Target audience Youth & family
No. of employees 8

Promotion Instore customer feedback, Social media

Sales 90,000

Merchandising Visual design with shelving space

Ambience with cute sitting and aesthetics

Store design
design.

Promotion Paid promotion over Facebook and Instagram

Sales - Operating Expenses
Gross Profit
90,000-50,000 = 40,000
Sales Per month/Store Size
Sales per square foot
90,000/ 250 = 36%
No of bills /Average footfall
Conversion Rate
2400/600 = 4%
Average transaction Sales Per months /No of bills
value 90,000 /2400 = 37.5%

Average salary of
8000
Sales person

OUTLET 7: OYE CAFE

Making sense of Taste & Hygiene.Oye Cafe is the fastest growing cafe originated from Odisha
with our flagship Coffee. Amazing cafe with foods at really reasonable rates.

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Product Assortment Hot coffee and Cold Coffee
Location Infocity
Average Price of coffee 130
Sales 3,00,000
No.of footfalls 500
Target audience Youth
No. of employees 4

Operating expenses 1,20,000

Square feet 300

Merchandising Visual design

Store design Colorful Interior, Ambience

Paid promotion over Facebook and
Promotion:
Instagram

Gross Profit 3,00,000-1,20,000=1,80,000

Sales Per month/Store Size
Sales per square foot
3,00,000/300=1000
No of bills/Average footfall
Conversion Rate
200/500=40%
Average transaction Sales Per month/No of bills
value 3,00,000/200= 1500

Average salary of
10,000
Sales person

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OUTLET 8: CAFE ODISHA
One of the most favorite and talked about streetside coffee cafes in town. They offer a wide
range of coffee and snacks at pocket friendly prices. Basically a go to place for college students.

Product Assortment Hot coffee and Cold Coffee

Location KIIT Road
Average Price of coffee 45
Sales 2,00,000
No.of footfalls 1500
Target audience Youth, family
No. of employees 3

Operating expenses 50,000

Square feet 150

Merchandising NA

Store design A short space just for ordering food

Promotion: Social Media

Gross Profit 1,50,000
Sales Per month/Store Size
Sales per square foot
2,00,000/150= 1333.33
No of bills/Average footfall
Conversion Rate
1350/45000 = 3%
Sales Per month/No of bills
Average transaction value
2,00,000 /1350 = 148.5%
Average salary of
5000
Sales person

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OUTLET 9: RADIUM CAFE
This RoofTop restaurant has both Outdoor and Indoor seating areas overlooking the busy highway. With a beautiful
view and fancy ambience.

Product Assortment Hot coffee and Cold Coffee

Location KIIT Road
Average Price of coffee 100
Sales 4,00,000
No.of footfalls 1500
Target audience Youth
No. of employees 10

Operating expenses 2,20,000

Square feet 700

Merchandising Outdoor Sitting/Rooftop

Store design Ambience, Décor

Promotion: Social Media and Bloggers

Gross Profit 1,80,000
Sales Per month/Store Size
Sales per square foot
4,00,000/700=571.42
No of bills/Average footfall
Conversion Rate
450/1500=30%
Sales Per month/No of bills
Average transaction value
4,00,000/450= 888.8
Average salary of
10,000
Sales person

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OUTLET 10: THE MUGS AND COFFEE

Product Assortment Hot coffee and Cold Coffee

Location KIIT Road
Average Price of coffee 50
Sales 2,00,000
No.of footfalls 450
Target audience Youth and family
No. of employees 4

Operating expenses 90,0000

Square feet 200

Merchandising Outdoor Sitting

Store design Small design outlet

Promotion: Social media

Gross Profit 1,10,000
Sales Per month/Store Size
Sales per square foot
1000
No of bills/Average footfall
Conversion Rate
1500/13500 = 11%
Sales Per month/No of bills
Average transaction value
2,00,000 / 1500 = 133.33
Average salary of
5000
Sales person

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CONTRARY RETAIL OUTLET : SAREE ( NARULA)

Product Assortment Handloom saree

Location Market Building
Average Price 6000
Sales 48,00,000

No.of footfalls 200 ( depend upon season)

Target audience Young girls, Married women
No. of employees 20

Operating expenses 10,00,000

Square feet 1500

Merchandising Visual design, mannequins, shelving

Lighting on and above product

Store design

Promotion In store promotion, website

Sales - Operating Expenses
Gross Profit
48,00,000 - 10,00,000 = 38,00,000
Sales Per month/Store Size
Sales per square foot
48,00,000/1500= 3200
No of bills /Average footfall
Conversion Rate
1500/6000 = 25%

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Product Assortment Handloom saree
Location Market Building
Average Price 6000
Sales 48,00,000

No.of footfalls 200 ( depend upon season)

Target audience Young girls, Married women
No. of employees 20

Operating expenses 10,00,000

Sales Per months /No of bills
Average transaction value
48,00,000/1500 = 3200
Average salary of
10,000
Sales person

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Comparison between a Café and Saree Outlet
The saree industry and the cafe industry are two very different industries. Here are some key
differences between them:

 Nature of business: The saree industry is primarily involved in the production, sale, and
distribution of traditional Indian clothing known as sarees. On the other hand, the cafe
industry is involved in the sale of food and beverages in a casual setting.
 Target customers: The target customers for the saree industry are primarily women who
are looking for traditional clothing for special occasions such as weddings, festivals, and
religious ceremonies. In contrast, the cafe industry caters to a broader range of customers,
including people of all ages and genders who are looking for a place to eat, drink, and
socialize.
 Production and distribution: The saree industry involves the production of sarees
through a combination of manual and automated processes. The distribution of sarees is
usually done through a network of wholesalers and retailers. In contrast, the cafe industry
involves the production and distribution of food and beverages on-site.
 Seasonality: The demand for sarees tends to be seasonal, with a spike in demand during
wedding and festival seasons. The demand for food and beverages, on the other hand, is
relatively consistent throughout the year, although there may be some seasonal variations
in demand for specific items.
 Competition: The saree industry is highly competitive, with a large number of
manufacturers and retailers vying for customers. The cafe industry is also competitive,
but the nature of competition is different, with factors such as location, menu, and
ambiance playing a significant role in attracting customers.

Overall, the saree industry and the cafe industry are very different in terms of their nature of
business, target customers, production and distribution, seasonality, and competition.

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Summary
The cafe industry is expected to continue to grow in the future, driven by factors such as increasing
demand for specialty coffee, changing consumer preferences towards healthier food and beverage options,
and the growth of the global economy.

One potential challenge for the industry is the increasing competition from new players such as online
food and beverage delivery platforms, which could potentially disrupt traditional cafe business models.

However, cafes that offer unique experiences and focus on quality, sustainability, and customer
engagement are likely to remain popular and successful. The use of technology, such as mobile ordering
and payment systems, could also help cafes stay competitive and improve customer convenience.

Overall, the future of the cafe industry will depend on a variety of factors, including changing consumer
preferences, technological advancements, and global economic trends.

There are several technological changes that can be introduced in the cafe industry to improve customer
experience and increase efficiency. Here are some examples:

● Mobile ordering and payment systems: Many cafes are already adopting mobile apps that allow
customers to order and pay for their drinks and food ahead of time, reducing wait times and
increasing convenience.
● Self-service kiosks: Self-service kiosks can be used to speed up the ordering process and reduce
labor costs. Customers can place their orders directly at the kiosk and pay with their credit card or
mobile device.
● Digital menu boards: Digital menu boards can be updated in real-time, allowing cafes to easily
change their menus and prices based on inventory and demand.
● Wireless charging stations: Wireless charging stations can be installed in cafes, allowing
customers to charge their phones and other mobile devices while they enjoy their coffee.
● Smart coffee machines: Smart coffee machines can be connected to the internet and equipped
with sensors that monitor the brewing process. This can help cafes optimize their brewing process
and ensure consistency in their coffee quality.
● Social media integration: Cafes can leverage social media to engage with customers, promote
their brand, and offer personalized promotions and discounts.

By adopting these and other technological changes, cafes can improve their efficiency, reduce costs, and
enhance the customer experience.

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