Kaffeine: The Nepalese Café Opportunity

Description

In early 2013, three young Nepalese entrepreneurs were deciding whether to launch Kaffeine, the first of a large chain of coffee shops, in Kathmandu, the capital city of Nepal. As experienced entrepreneurs, the partners were interested in a recently vacated location near Durbar Marg, a major street and shopping destination in Kathmandu that represented a unique opportunity to build a highly successful coffee chain. Coupled with the increasing trend in Nepal toward coffee drinking rather than tea, this was an opportunity the trio felt they could not pass up. The entrepreneurs had many things to consider, such as location, competition, target market, and how to measure the feasibility of this new venture.

Learning Objective

This case highlights the issues involved in deciding the go-to-market strategy of a new business and the importance of aligning marketing decisions with that strategy. It gives students an opportunity to perform the following tasks: ·Analyze the attractiveness of an industry using the porter’s five forces framework. ·Consider the additional challenges of starting a business in an emerging market. ·Assess target market, pricing, and sourcing strategies. ·Perform basic financial analysis, such as profit projection and payback, to quantitatively justify a business launch decision.

Keywords

Emerging markets financial projections go-to-market new business entry Porter's five forces