Coffee Chains in India
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swathravCoffee Chains in India
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swathravMARKETING PROJECT
COFFEE RETAIL CHAINS
Beverage Industry
The total beverage industry in India was being estimated to grow at
17% by 2011
Total beverage consumption will grow at 9% over the next 20 years.
Of which, alcoholic beverage and non-alcoholic beverage will see a
spurt of 9.6% and 8.8% respectively.
Growing health consciousness among India’s young population has
brought about a revolution in the Indian non-alcoholic drinks market.
More than 500 coffee cafes in the country, up from 175 in 2002
Evolution of coffee shops in India
Shift from tea consumption to coffee
Change attributed to demographic, economical & cultural changes
Coffee shops give a westernized and youth appeal
More than 1200 cafes exist across the nation
Average growth at 40%
Most organized retailed segments with the turnover of Rs. 1000
crores
Efforts being made to reach out to the masses by penetration strategy
Evolution of coffee shops in India
Key players
• Barista
• Café coffee day
• Costa Coffee
• Café Mocha
Prospective players
• Starbuck
• UK’s Coffee Republic
• Malta’s Cafe Jubilee
• Australia’s Coffee Club Group
BARISTA
Company's Profile
Barista coffee was established in 2000
Barista exists in over 22 cities, and operates over 140 outlets nationally.
In the last 2 years, Barista has opened over 100 outlets in the country and
with a new outlet opening nationally every 14 dates
In 2001, the TATA group had purchased 34.3% of share in Barista. Early
in 2005, TATA Coffee Ltd sold its stake in Barista. Barista has since
been acquired by the Sterling Infotech Group.
Strategies
Lifestyle brand with Italian neighbourhood
Brew masters from Italy to create blend
Alliance with Tata
Make customer’s occasional indulgence into a habit
Store-in-store concept with specific themes
Branded merchandising
Home brew segment – fresh coffee
Core Competencies
Effective supply-chain management
Quality of coffee beans and technology involved in making coffee
Usage of top-grade Arabica Beans
Brew-masters from Italy to create blends
Best Italian Machines for brewing
Employee management
Marketing Mix
PRODUCT PLACE
Beverages Cater to their target market with
strategically located outlets
Food
Outlets generally located at High
Health Zone Street/ Family Entertainment
Centres - in and around Malls,
Merchandise Cinemas, Colleges, and Offices
etc.
Marketing Mix
PRICING PROMOTION
Barista has a ‘Skim Pricing Rely more on sponsorships and
strategic alliances with other
Policy’ corporations
Currently, their prices are the Advertise in industry journals, on
lowest they have ever been the Internet, and on our website
Attend/sponsor exhibitions and
Ensures that consumers think trade shows; Continual PR: press
they are getting high quality write-ups; personal interviews;
products/ service testimonials; product trials
CAFÉ COFFEE DAY
Company's Profile
Division of India’s largest coffee conglomerate, the Amalgamated Bean Coffee
Trading Company Limited (ABCTCL)
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening
its first café at Brigade Road in Bangalore
Mission: “To be the best Cafe chain by offering a world class coffee experience
at affordable prices”
Divisions : Coffee Day Fresh ‘n Ground; Coffee Day Xpress; Coffee Day Take
Away; Coffee Day Exports; Coffee Day Perfect
Strategies
CCD’s wide network – the anytime, anywhere café
Lower pricing and ‘no-segmentation’ approach
Positioned itself as a mass market brand
Marketing Mix
PRODUCT PLACE
Food To place a cafe in every possible
location where some business
Beverages can be generated
Merchandise products
Marketing Mix
PRICING PROMOTION
Priced between Rs50 – Rs80 Ticket sales
Reasonable pricing considering Cross branding – tie ups
their target group in mind. TG
falls between 15-30years Movie tie ups (In line
advertising)
Through Television
Sales promotion
COSTA
Company's Profile
Costa Coffee, launched its outlet in New Delhi, India in a franchisee
agreement with Devyani International in 2005
At present, Costa has 40 outlets operational across India
Costa Coffee also plans to enter the wholesale coffee business in India and
aims to open 300 outlets
Costa Coffee is expected to face stiff competition from domestic players like
Cafe Coffee Day and Barista, who are embarking on a rapid expansion plan
across the country and also from foreign players like Starbucks
Strategies
Closing unprofitable locations & segmenting strategy for different
locations
Changing the look and feel of outlets & customizing the menu to
better suit the Indian palate
Expanding only in metros
Penetrating more in the south
Setting up kiosks in marriages, and seminars
Balancing traditional international coffee and light snack offerings
with a more robust food menu, along with wine and beer
Core Competencies
Establishment of local management and employees.
Franchise policy
Marketing Mix
PRODUCT PLACE
Beverages – hot coffee, cold The perfect locations in terms of
coffee exposure, accessibility and
competitive edge have been
Food – snacks acquired
Alcoholic Drinks – wine, beer Metros, Tier I cities
Merchandized products
Marketing Mix
PRICING PROMOTION
The prices of all the products are Low key promotion strategy
comparatively higher at but this
is offset by the outstanding Word of mouth
quality and discerning tastes at
Costa Advertisements in major
newspapers
One of the reasons for choosing
the privileged and higher middle
classes in the target market is the
Billboards
prices
MOCHA
Company's Profile
Started in 2001 at Mumbai, Mocha displayed a electric Indo-tibetan
worldly theme & fresh worldly coffee
Ambience inspired by the Quahveh Khannehs of Morocco and
Turkey
Currently holds 20 outlets across the country
Strategies
Differentiation through ambience and offerings
Gradual increase in number of outlets
Grow as a place to savor coffee and ambience and not as a
commodity coffee retail
Leveraging on strengths rather than working on weaknesses
Core Competencies
Product differentiation
Positioned and perceived as a premium brand
Better quality
Ambience and layout
Marketing Mix
PRODUCT PLACE
Arabica coffee Spread across the nation
flavored thick shakes
located at places accessible to
supper varieties the customer base of this
premium brand
snacks
beverages
desserts
sheeshas
Marketing Mix
PRICING PROMOTION
Comparatively expensive Word of mouth
Marked almost 15-20% above Social media
the competitors
café mocha communities-
Mocha Bike club, Mocha film
club etc.
Events & music concerts.
sales promotion strategies
GROUP MEMBERS
Swathi Ravichandran
Suruchi Sapru
Shraddha Ganwani
Rashida Kachwala
Ramya Nagesh
Pragya Gupta