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PROPOSAL FOR COFFEE

SUPPLY

Prepared for
PAUL WHITAKER, T.G.I. FRIDAYS

Prepared by
MARIA BEREZOVSKAYA, THE COFFEE HOUSE

Submitted on
25.10.2013
Table of content

CONTENT 2
BACKGROUND 3
REQUEST FOR OFFER AND PROPOSED SOLUTION 3

APPROACH 4
OBJECTIVES AND METHODOLOGY 4
WORK PLAN 5

TERMS AND CONDITIONS 6


PRICES 6
VOLUME AND TERMS OF DELIVERY 6

COMPETITIVE EDGE 7
QUALIFICATIONS 7
REFERENCES 7

BENEFITS 8

APPENDIX 9
TESTIMONIALS 9
STANDARD DIAGRAM FOR QUALITY MEASURES 10

2 Because great coffee doesnt just happen


Background
The Coffee House is pleased to present T.G.I. Fridays with a proposal for the coffee
supply project. We understand the need for the exclusive supply of freshly ground
and sealed coffee that T.G.I. Fridays is faced with and recognize the unique
opportunity to fulfill this need.

Having duly examined your requirements, we are confident that our proposed
solution will effectively address your needs. Our goal is to provide you with top-
quality beans by supplying annually to each storage warehouse in 15 countries of
the EU and complete the first shipment by December 23, 2013 at the total cost of
9.8mln. By implementing our solution, T.G.I. Fridays will receive

Fairtrade high quality beans


European Customer recognition
Logistical benefits and on time shipments
Exceptional customer service and ongoing support

Our unique ability to provide excellent coffee along with excellent experience when
drinking it and our successful record in alliance with Caf de Paris, Gusto Group,
and Gourmet Restaurants makes us an enviable partner in this project. We look
forward to forming a mutually beneficial affiliation with T.G.I. Fridays.

3 Because great coffee doesnt just happen


Approach
We have analyzed the present situation and believe that the following objectives
must be achieved:

Objectives

On the basis of annual contract, organize a monthly supply chain for 7000kg of
Brazilian Bahia and Bourbon Santos beans to 15 storage warehouses within the
EU
Provide the required annual volume of 85000kg
Provide appropriate packaging for ground and ready to use coffee
Meet the expectations for the delivery terms and times
Turn great coffee into Fridays unique coffee experience

Methodology

By using an existing distribution network of The Coffee House we will make the
supply of each batch to the selected European warehouses more efficient. We will
also create an electronic platform to exchange information and track the shipments.
We will provide support and training on the quality control if required.
We will use our innovative packaging that keeps the coffee fresh in any storing
conditions.
The beans we use will not only make the coffee taste great, but also will turn the
whole experience of drinking it into serenity together with the Friday spirit.

4 Because great coffee doesnt just happen


Work plan
POINT OF
OBJECTIVE METHOD
PROJECT
Signing the Meeting the requirements of both Online review
contract sides
Meeting in person
Agreeing on monthly amounts
and terms of shipment

Discussing any additional points

Receiving the Order processing and signing Interactive approach


order
Determining the exact delivery
times Phone discussion
Issuing order Sending the OC with confirmed Interactive approach
confirmation delivery times and prices
Processing the Giving the information on every Interactive approach
first bulk of coffee stage of the process (with
possible visual representations) Possible visit to the
warehouse
Quality control Sharing the figures of the QC Standard Diagram for QC
(see Appendix)
Incorporating a QC report from
the plantation owner (the Printed and electronic
conditions of beans harvesting, copies of the report
storage etc)
Distribution of the Sending the packaging options Interactive approach
1st batch including specific designs for
holidays Phone discussion
Choosing the
packaging Announcing the shipment and Automatic reminder
delivery dates to each of the
warehouses
Feedback Receiving a satisfaction survey Interactive approach
from each warehouse
Phone discussion

5 Because great coffee doesnt just happen


Terms and Conditions
Based on our analysis of your needs and the nature of our proposed solution, the
total funds required are estimated at 9.8mln euros per batch per month including the
shipment charges. Please have a look at the following breakdown of the costs:

PART OF THE PROJECT PRICE


Additional meetings with employees and
Free of charge
negotiations

Regular packaging design Included in the 100kg quote


Customized packaging
Additional 0.30 per 1kg
Quality Control reports
Free of charge
QC training (on request)
20.00 per hour
Price per 100kg of Bahia beans
637.00
Price per 100kg of Bourbon Santos beans
763.00
Shipment and handling
Included in the price

In terms of volume and delivery times, we propose the following scheme:

7000 kg/month shipment date 2 months following the receipt of Order


Confirmation.
* The 3rd month of the year will have the volume of 8000 kg to suffice the annual
requirement of 85000kg.

6 Because great coffee doesnt just happen


Competitive edge
The following are competitive advantages that differentiate The Coffee House from
other providers:

Brand awareness- since the opening of the first caf in 2005, the brand became an
instant hit. In over 8 years the representation of the company has grown at a rapid
rate. According to a recent quantitative research, today every 3rd citizen of the
European Union knows our brand.
Trust we developed a high level of trust with our wholesale and regular customers
(see Testimonials in the Appendix)
Expertise and stability we have got high-knowledgeable workforce who are
motivated and loyal to the company.
Steady growth in sales according to the annual report 2012, the revenue increased
from 2.8mln to 4.3mln. Post-tax profit has been 652 000 euros.

Alliance with major restaurant groups and hotel chains.

7 Because great coffee doesnt just happen


Benefits
When comparing our capabilities and proposed solution to that of competitors, the
benefits of choosing The Coffee House are:

high ROI
monthly cost savings due to already developed distribution networks
short time to completion
service reliability
personal touch and approach
best quality of coffee within the EU
innovative touch due to use of interactive platforms
custom packaging options

8 Because great coffee doesnt just happen


Appendix
Testimonials

"The fair price is a solution. It has given us the chance to pay a good price
to our farmers. Those who are not in Fair Trade want to participate. For us
it is a great opportunity. It gives us hope." - Benjamin Choloto, Brasil

Very helpful with education and information that can be passed out to
consumers. The Coffee House is very pro-business, and they really look
out for me and my coffee shops." Matsuo Kawasaki, Blue Moon
Coffee Company, Liverpool, UK.

"Great response and customer service!" - Dianne Adkins, Coffee's On,


Manchester, UK.

"When you said you would hold our hand, you literally did. The
presentation packet was impressive." Tomas Korecko, Coffee
Getaway, Bratislava, Slovakia.

"We are phenomenally impressed with the quality and attention to detail.
The Coffee House always goes the extra mile." Marco Bruno and Sara
Costa, La Casa, Florence, Italy.

"I am happy with the service I get from all of the people at Coffee House,
especially my salesperson..." Normann VanBuren, Java Caffe,
Netherlands

9 Because great coffee doesnt just happen


Standard Diagram for Quality Measures

10 Because great coffee doesnt just happen