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COFFEE PARLOURS IN INDIA-

HOTTING UP

PREPARED BY:
Group 8
ABHISHEK.BANSAL
RAGHAVENDRA MISKIN
KRITIKA PRABHAKAR
SURAJIT GOGOI
NIRAJ R
VAIBHAV MISRA
OVERVIEW OF THE INDIAN COFFEE INDUSTRY

ü 5th largest coffee producer in the world (3%

of the world production)

ü Avg. coffee consumption in India is 10 cups

per person p.a.

ü People in North India prefer instant coffee in

contrast with people in south who prefer filter

coffee

ü Late 90s saw an emergence in coffee chains

ü In 2002, café < 200 with sales of $10mn


GROWTH DRIVERS :

• Increased exposure to International

Lifestyle

• Rise of the Demographic class

• Spending more time outside their homes

• Target segment is expected to be 300 mn

by 2010
Barista

ü Came to India as a late entrant.

ü With 105 branches in 18 cities and annual sales of Rs.

650 million.

ü Recreated typical Italian neighbourhood espresso

bars in India.

ü Rapid innovation of their product offerings and focus

on a particular product.

ü Strategic tie-ups.
Café Coffee Day

ü Started in 1996.

ü 50 outlets in 9 cities by 2002, with an annual sales

of Rs. 100 million.

ü CCD provided a relaxing ambience with eye-

catching crockery and bright décor.

ü Mainly to attract teenagers, business meetings etc.

ü promoted their paraphernalia such as caps, T-

shirts, and coffee mugs.

ü
QWIKY'S

ü Started in 1999.

ü With 21 outlets in 5 cities and an annual sales of


Rs. 43 million in the year 2002.
ü It positioned itself as a place to hang out and
spend time leisurely.

ü The staff at Qwiky’s was trained to understand


body language.

ü Their customers were offered different varieties


of coffee including frothy or intense, icy or piping
hot, and aromatic and exotic coffee.
SWOT analysis:-
Strengths:- Weaknesses:-

Quality products   Expensive coffee


Claim to sell the best coffee Self service for the customers
Large Number of outlet Quality of food - Stale breads
In house sourcing of coffee beans
Espresso - Highest selling coffee
Low set up costs .

Opportunities:- Threats:-
   
Expanding coffee market Imitation products
Unrestricted operating hours (MVU) Entry of Foreign players like Georgia,
Other markets (domestic and coin Starbucks
vending) Large unorganized market
Scope for innovation in existing market.
Large Untapped Market
Tie-ups with other companies for
promotion
Café Coffee Day
SWOT Analysis
STRENGTH:
Quality Products.
India's largest retail chain of cafes.
In house sourcing of coffee beans.
RS.300 crores ISO 9002 certified company.

WEAKNESS
Price of Products.
Presence is negligible in small cities.
Limited Target Audience.
Follow the competitor strategy

Café Coffee Day


OPPORTUNITIES :
Market is growing very fast.
Most of Indian market is untargeted.
Indian culture is changing.

THREATS :
Barista.
Foreign competitors are ready to
launch.
Local coffee vendors.

Café Coffee Day


SWOT ANALYSIS
Strengths Weaknesses
● Product diversification ● Size
● Company operated retail stores , ● Lack of internal focus ( too much
International stores ( no franchise ) focus on
● Good relationships with suppliers expansion )
● Industry market leader ● Ever increasing number of
● Product is the last socially competitors in a
accepted growing market
addiction ● Self cannibalization
● Widespread and consistent ● Cross functional management
● Strong financial foundation ● Product pricing ( expensive )

Opportunities Threats
● Expansion into retail operations ● Competition (restaurants, street carts,
● Technological advances supermarkets, other coffee shops, other
● New distribution channels (delivery) caffeine based products)
● New products ● Coffee price volatility in developing
● Distribution agreements countries
● Brand extension ● Consumer trends toward more healthy ways
● Emerging international markets and away from caffeine
● Continued domestic expansion/domination ● Alienation of younger, domestic market
of segment segments
SWOT OF
QWIKY’S

Strengths –
Positioned as a “fun” brand
Perceived as a premium brand
High quality
Weakness
Real-estate based pricing
Low availability
Low marketing communication
Oppurtunities
Expand into other territories
Sell Qwiky’s merchandise
Offer more food items

Threats
International players
Other established players
• QUESTION NO 1
Barista’s Stratergies

ü Lifestyle brand with Italian neighborhood

ü Brew masters from Italy to create blend

ü Alliance with Tata

ü Make customer’s occasional indulgence into a

habit

ü Store-in-store concept with specific themes

ü Branded merchandising

ü Home brew segment – fresh coffee


CCD’S STRATEGIES

ü Informal ambience
ü Cool hang out for college crowd and
teenagers
ü Revamp in 2001
ü “A lot can happen over coffee”
ü Café jockey
ü Main target – commercial and residential
clusters in metros
ü Also targeted corporate houses, mall,
airport
QWIKY’S STRATEGIES

ü Make customers feel comfortable & have fun

ü Staff trained to understand body language

ü Targets “young at heart” customers

ü Customers were given choice of drink not

common in India

ü Strategic point frequented by youth

ü Prices based on real-estate prices of the area

ü Ready to drink coffee sachets


Strategy suitable for Indian market

ü Barista’s strategy suitable


ü Uniqueness in interiors with Indian
neighborhood
ü Served international varieties of coffee
ü Indian coffee with Italian brew masters
ü Also serves “good” food
ü Barista – a status symbol
ü International expansion plans
ü Co-branding with banks for credit cards
ü New and different
• QUESTION NO 2
Barista’s segmentation strategy

ü Targeted the elite class

ü High potential

ü Spending capacity high

ü MDs, doctors, SW engineers, Managers

ü Prefer being in luxurious and classy places like

Barista

ü High potential segment


CCD’s segmentation strategy

ü Positioned for the mass market

ü Targeted middle class, students and house

wives

ü Prices are much lesser than competitors

ü The segment has great market share


Qwiky’s segmentation strategy

ü Targeted “young at heart” people

ü Positioned as a place to relax and have fun

ü Friendly staff ensured that customers are

comfortable

ü Place to hang out


• QUESTION NO 3
Starbucks v\s barista

ü Barista is competitively better placed to face the

competition from star bucks.

ü Barista is the leader in the coffee retailing business.

ü The value added services and ambience offered in

Barista helps it, maintain its growth.

ü Star bucks are an international player and it may give

tough competition to the local players.

ü But Barista with its ambience and services would


• QUESTION NO 4
Intense competence in coffee business
may cause consolidation

ü The coffee retailing business in India is highly growing.

It may cause intense competition between the players.

ü Consolidation may take place to create their strong

presence in the Indian market and expand their chain

globally and become an international player.

ü Many international players are lining up big expansion

plans in India.

ü So to give the international players a tough competition,


thanlyou

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