Market Feasibility Essay

The Arabica coffee production is only 800-850 t per year. It is produced in the cooler highland areas of the Northern Thailand. All of the Arabica produced were totally used in roasted and ground coffee for domestic market. Consumption demand for both instant and roasted/ground coffee is growing in Thailand recently. Imports of instant coffee have increased from 412 t in 1997 to 2,270 t in 2000. There are many coffee products of Thai and international origin on the shelves of the convenience stores and supermarkets.

Many international brand caf©s or coffeehouses have been established in the big cities since the last decade. This research study the market feasibility of the premium fresh brew coffee house as an c pportunity for Thai business operator in creating a new brand-named coffee shop. The surprisingly growth and expansion of American premium coffee is outlined, both on a global scale and within individual countries. The caf© experts claim the American caf© failure in Australia is the consequences of failure in brand communication; and their business model was unsustainable.

Key lessons that may go beyond the specifics of the American brands are the importance of: undertaking market research and taking note of it; thinking globally but acting locally; establishing a differential advantage and then striving to ustain it; not losing sight Of what makes a brand successful in the first place; and the necessity of having a sustainable business model [9]. II. LITERATURES REVIEW A. Coffee Consumption in the World Most of the coffee consumed throughout the world is Arabica. In many countries, Arabica represents 70%-100% (100% in Finland and Sweden) of the whole coffee consumed.

The only exceptions are France, Italy, Portugal and the UK, where Robusta represents 42%-70% of the whole coffee consumption [3], [7]. The content of caffeine per cup of coffee also varies largely according to the size of the serving, the mode of preparation of the offee (boiled, filter, percolated, espresso or instant), and the type of coffee used (Arabica or Robusta) The average content Of caffeine is about twice as high in Robusta as in Arabica coffee. Indeed, the content of caffeine, expressed as percent of dry weight, ranges from in green Arabica beans and averages 1. % in roasted Arabica beans. In Robusta coffee, the content of caffeine is 1. 6%-2. 4% and 2. 0% of the dry weight for green and roasted beans, respectively. As a consequence, in a standard 1 50ml cup, the content of caffeine ranges from 71- 120mg/cup for Arabica coffee and from 131-220mg/cup for Robusta [3], [8], [9]. World coffee consumption is increasing. According to recent surveys, consumption of coffee varies greatly among the different countries. The highest consumption (more than 1 Okg/person/year) is encountered in all Scandinavian countries plus Austria and the Netherlands.

In most western European countries, as well as in Brazil and Costa Rica, coffee consumption ranges from 6-9 kg/person/year. The lowest consumption (less than 5 kg/person/year) occurs in the United States, Italy, Algeria, Nicaragua and Paraguay [3], Pongsiri K. is with the Faculty of Management, Suan Sunandha Rajabhat University, Bangkok, 10300 Thailand (phone: +6684 098881 7; e-mail: Kingkan. Amy. [email protected] com). International Scholarly and Scientific Research & Innovation 7(8) 2013 1142 Engineering VOI:7 No:8, 2013 International Science Index Vol:7, No:8, 2013waset. rg/Publication/16227 The average consumption of coffee in 1990 ranged from 1. 41 cups/day in Japan, to 1. 73 cups/day in the United States and 3. 87 cups/ day in Germany [3]. In the United States, coffee consumption (numbers of cups/person/day) decreased in 1986 and has not changed since then. In Japan, coffee consumption has been onstantly increasing over the last 10 years, while in Germany the consumption has been stable over the same period In Thailand, coffee consumption demand for both instant and roasted/ground coffee is growing.

Imports Of instant coffee have increased from 412 t in 1997 to 2,270 t in 2000[1]. B. Coffee In Thailand Coffee is one of agriculture product which generates great income for Thailand. There are two main areas growing coffee in the kingdom, southern and northern. Robusta coffee is grown mainly the south where 80,000 t are produced annually. Only 500 t of Arabica coffee (C. arabica) are produced in the north. Current Coffee cultivation techniques are focused on producing high yields.

Chemical fertilizers and pesticides are commonly applied to the coffee plantations. Thailand exports 60,000 t of Robusta coffee, while 20,000 t are used for soluble, roasted, ground, and canned coffee in the domestic market. Arabica coffee is mainly used for roasted and ground coffee in Thailand. Arabica coffee is mainly grown in the highlands at approx. 800m. It is wet processed to give high quality green bean. Growing Arabica coffee provides cash income for hill-tribe farmers and reduces the problem of raditional swidden agriculture.

According to the Thai policy of natural resource conservation and the limitation of land area, the hill-tribe farmers have to grow coffee to sustain natural resources on the highlands in the long term [2]. Growing coffee within the country is therefore not only good for the economy but obviously good to the natural resources of the country. C. Global Coffee House Caf©, coffee house, coffee shop, are related terms for an establishment which primarily serves prepared coffee or other hot beverages. As the name suggests, coffeehouses focus on roviding coffee and tea as well as light snacks.