A Market research project on how people experience coffee. What we found: Coffee Aficionados need home access to fresh, high-end, and personally selected beans to combine the premium experience of a cafe with the convenience of home.¡ Levántate! Your at home coffee sommelier. Check out the presentation to see what we came up with for our solution.

1. ¡Levántate!
Ashkon Jalalian, Isabel Bakhshi,
Toby Myers, Teddy Fischer

2. Meet Mark...

3. The Problem
Coffee Aficionados need home access to fresh,
high-end, and personally selected beans to
combine the premium experience of a cafe
with the convenience of home.

4. ¡Levántate!
Your at home coffee sommelier.

5. Personalize

6. Voices

7. Market Test of at-home coffee drinkers
100% Want their coffee mailed to them at or
below Blue Bottle pricing
90% Want a barista to personalize their
selection of beans
60% Want access to a knowledgeable barista

8. ROI
Costs:
Initial cost
Coffee roasters: 30,000 x 2 = 60,000
Marketing materials: 50,000
Facilities warehouse in Fremont: 5,000 per month = 60,000 per year
Coffee makers:
100 per espresso, 10 per pour over, we send filters = 110 per unit
Coding/site design: 100,000
Beans: 100,000
Filters: 500
Initosl Total: $370,500
Payroll
Maintenance Personnel: 25,000 x2 = 50,000
Roasters: 25,000 x2 = 50,000
Producer Contact: 40,000
Software Developer/Maintenance: 15,000
Marketing Analyst: 35,000
Barista: 30,000 x2 = 60,000
Payroll Total: $250,000 per year
Revenue:
Yearly subscription for customer experience:
- skype interview with Baristas
- beans and filters
- equipment leasing
- home delivery
- training videos
$1 per day = $365 per year
Return on investment:
Year 1:
Revenue: $262,500
Cost: $620,000
(262,500 - 620,000)/(620,000) = -57%
Year 2:
Revenue: $262,500
Cost: $250,000
(262,500 - 250,000)/250,000 = 5%
To break even at 250,000 we need 685 customers.
To achieve 5% ROI we need 720 customers.
Someone that buys $4 cup of coffee per day spends
$1,500.
With our subscription, you would spend $1 per day which
would save you $1,135.