Cyber cafe a Marketing knoll

Cyber Café:-

We have chosen the case of the CYBER CAFÉ. It was during the times of early 2000` when we use see cyber café at every corner of the street. But now days these café seems to be closing down due to various reasons. The problem with these service providers is that they only serve the purpose of giving the facility of internet at a good speed. But the story then was different. Many people didn’t have computers at home. People didn’t have the easy access to internet then. Gradually the scenario changed and every house has got one computer and a net connection has become the common need for every one hence the need for these cyber café has come down. This is the main reason as to why many of the cyber café are shutting down.

Now also the trend seems to be the same – “providing net facility”. Few café have been going successful as they have starter the extra service like that of gaming and video conferencing.

But do the café realize the market scenario?

What people are expecting?

What people lag and what café can provide them?

These are the many questions which must arise in the minds of the café owners if they have to sustain in this service sector. People do not need the common service which they can access with out the café being there. The country is developing and so are the need and the demand. People now have many needs than they use to have before. The café business is going MYOPIC as they are not able to see the future needs which the people expect and which they cannot get easy and cheap.

We have conducted a survey across Mumbai, considering many café across the south Bombay and Navi Mumbai. We have chosen (VT, Andheri, Ville Parle) – South Mumbai and (Kharghar, Koperkharane, Nerul, Vashi) - Navi Mumbai. The reason for choosing these places is because south Mumbai is the heart of Mumbai, the population is of good standard and have good income level. Where as Navi Mumbai is a developing area with the people having the mix income level. The opportunity lies in both of these areas as we see in the view of a café. We had asked various questions to the owners of these café and had various results as shown. Sample size -32

Café Analysis:-

To make the analysis simple we have categorized the café according to the number of computers they have.

Class1 = 0-5, class2 = 10-15, class3 = more than 15.

Observation: -

Here from observing all available data we came to know that from our sample size (32), 53% people had ownership and partnership in the class-2(10-15)cyber cafes,47 % class-1 (05-10). Class-3(>15) remains zero

The Surveyed cyber cafe are From the Various parts of Mumbai(VT and Andheri, Ville Parle) and Navi Mumbai( Kharghar, koperkharane, Nerul, Vashi) .

Observation: -

Here from observing all available data we came to know that from our sample size (32),63% people are educated the class-2(10-15)the different level of education is intermediate, undergraduate and postgraduate and only 37 % class -1(05-10) people are literate in this class. Class-3(>15) remains zero.

From the Surveyed People we came to know that in the class-1 people are less educated and they are less aware of the latest services in the field .

Observation:-

The data obtained from the surveyed people is that 58% revenue is generated by the class-2(10-15) cyber cafes and 42% revenue is generated by class-1 (05-10) cyber cafes. Class-3(>15) remains zero.

The main reason for generating more revenue by the class-2 cyber cafes is that they are providing more services besides browsing.

Observation: -

Here from observing all available data we came to know that from our sample size (32), frequency of the people who walk in class-2(10-15) is 92%,and 8% people walk in class -1(05-10). Class-3(>15) remains zero.

Observation: -

Here from observing all available data we came to know that from our sample size (32), 84% people prefer to go cyber café between 05pm-10pm in class -2. This is the time when people come back from their jobs. 16% people prefer morning timings in class -1. Class-3(>15) remains zero.

Observation: -

Here from observing all available data we came to know that 75% people visiting to the class -2 cyber café are students from 11 –graduation, working 19% and 6% from 0-10. Class-3(>15) remains zero.

Observation: -

Here from observing all available data we came to know that 92% people are not ready for franchising because they see risk in it and 8% people are ready for tie up with big brands. Class-3(>15) remains zero.

Observation: -

Here from observing all available data we came to know that 81% cyber owners said that browsing fetch them profits compared to other services. 19% said gaming.

Observation: -

Here from observing all available data we came to know that 69% cyber owners feel that providing other related services is a part of their business and 31% feel that it is not a part of their business.

There are totally 13 services which we have considered which can be provided by the café. Few established brands like Sify and Reliance Web World is currently providing. It is of our interest to look at if these café are upgrading the services of planning to upgrade it or they are satisfied with the services.

Seeing the data obtained, of that of the currently providing the services, and the awareness of the services, the geographical locations stand equal.

They provide the same service more of less.

Considering class1:-

Currently providing services

Most popular service which class1 provide is browsing and online booking. These are the only sectors which generate the revenue for them.

Among the class1 we have the following percentage of the currently providing services:

Browsing – 100%

Digital service – 50%

Online Gaming – 59%

Online booking – 75%

Camferencing – 42%

E-learning – 9%

Other services are not provided by them at all.

Awareness of the various services

The following analysis is obtained from the survey:

Camferencing & Video Conferencing – 50%

E- Learning & recruitment – 8%

Online Gaming – 41%

Ready to use office, VDO messaging, Virtual class – 17%

VDO Resume – 25%

From he above analysis we come to know that many people are not aware of the opportunities they have which could help them in bringing a good business. Most of the services are upcoming services which provide huge advantage at much lesser price when we compare it to the other alternative which provide the same service.

Moreover there are expensive to own by every individual, hence if it is in need then the café has to e the source for it.

Considering class2:-

Most popular service which class1 provide is browsing and online booking. These are the only sectors which generate the revenue for them.

Among the class1 we have the following percentage of the currently providing services:

Browsing – 100% Vdo Messaging – 14%

Camferencing – 59% Vidoe Conferencing – 9%

Digital service – 32% Online booking – 86%

Online Gaming – 64% Camferencing – 42%

Ready to use office – 5% E-learning – 9%

DENG, E – learning, E-recruitment, VDO resume& virtual Classroom are the services which are not provided by them at all.

Awareness of the various services

The following analysis is obtained from the survey:

Camferencing – 45% VDO Messaging – 9%

DENG – 5% Ready to use office – 18%

Digital service – 23% Online Gaming – 41%

E – learning – 45% Virtual Classroom – 9%

E – recruitment – 45% E – Booking – 5%

VDO Resume – 18% Video conferencing – 45%

Awareness to the services is there by the people but in less number. Many café are not aware of the various services which can be provided by them. There lies a gap of knowledge in this sector.

Future Implementation:-

There is a myopic view when it comes to implementation of the service in future. The reason being that they think they wouldn’t be benefited if they provide these services. There is need for these services but people are not aware where to get these services.

Most of these services are being provided by the established brands but the general café is not providing. Number of the established brands are less where as the need of it is more in every are. The café seems to be myopic as they are not seeing the future implementations/opportunity lying ahead.