Projects

Comparative Analysis-Caf Coffee Day and Barista
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PREFACE
Practical Knowledge is an important suffix to theoretical Knowledge. One cannot merely
depend upon the theoretical Knowledge. Classroom lectures make the fundamental concept
of Management clear. They also facilitate the learning of practical Things. However,
Classroom lectures must be correlated with the Practical training situations. It is in the sense
that practical Training in a company has a significant role to play in the subject of business
management. Market Research is indeed an Ancient Art; it has been practiced in one form of
the other since the day of Adam and Eve. Its Emergence is of relatively recent origin for
success of any business and with in this relatively short period, it has joined a carry great deal
of importance.
In this age of globalization hyper competition has become a regular feature. Today the
markets are no less then battlegrounds and one has to strive very hard for survival and
growth. Due to very rapid industrialization all over the world the demand for the managerial
personnel and the administrative personnel has increased. The perfect study of Management
involves both the theoretical as well as practical aspects. To survive in this highly competitive
market Practical Knowledge is as relevant as the Theoretical.
The significance of MBA Degree is that the Theoretical aspects, which a student learns
throughout the year in the class sessions, can be practically applied through different projects,
which one undertakes. Keeping in tune with this doctrine, we have tried to apply theoretical
aspects through out the project, which we learned under the course of management.
These companies sell similar product but their positioning and target audience are very
different from each other. These players not only sell coffee and tea but also food and other
merchandise items.
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Executive Summary
Indian consumer is a very interesting entity. The consumer in India is as heterogeneous as the
country itself is. The urban consumer contrasts with the rural and the South Indian consumer
with the North Indian. Further still, the consumer in the metros militates with his usage and
habit patterns. The Indian consumer, is therefore very difficult to understand and very
difficult to predict.
Tea and Coffee are the favorite drink in India especially tea. A quiet cafe
revolution is sweeping urban India with the explosion of coffee bars. That is bad news for
tea still the favorite brew for a majority of Indians -, which has been losing out to coffee in
recent years. India is one of the world's largest exporters of tea and one of its biggest
consumers. However, it is coffee drinking which is increasingly becoming a statement of
young and upwardly mobile Indians. Moreover, coffee bars, an unheard of concept until
acouple of years ago, are suddenly big business. Coffee is slowly but surely substituting tea.
There is also rise in the consumption of coffee. The specialty coffee movement has gained
much of its momentum through the efforts of companies like Barista, Caf Coffee Day and
Starbucks.
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OVER VIEW OF THE INDUSTRY

In India CAF COFFEE DAY and BARISTA are the most popular and wellknown
cafs. The college crowd rates them as one of the coolest hangouts. These companies sell
similar product but their positioning and target audience are very different from each
other. These players not only sell coffee and tea but also food and other merchandise items.
Despite of serving to different audience, these players compete with themselves. Each
player fights for its own share of market. They try to differentiate themselves by the way
of product or price or promotion. However, they are also facing the competition from the
foreign players like Georgia, Starbucks etc. It would be interesting to see how the companies
differentiate and maintain their share in the market
.
Retail Industry In India

Accounting for over 8 per cent of the GDP in the West, retail business is the largest private
industry, ahead even of finance and engineering. Over 50 of the Fortune 500 and about 25 of
the Asian Top 200 companies are retailers. Today, in some developed countries, retail
businesses have shares as large as 40 per cent of the market. For instance, in Thailand and
Brazil the organized retail business has grown at tremendous pace. In contrast, the organized
retail business in India is very small. This is despite the fact that India is one of the biggest
markets. Retail business contributes around 10-11 per cent of GDP. It amounts to about $180
billion market and is six times bigger than Thailand and four-five times bigger than that in
South Korea and Taiwan. India also has the largest number of retailers, about 12 million,
though they are mostly small.
The challenges facing the organized retail industry in India:
Competition from the unorganized sector. Traditional retailing has established in India
for some centuries. Most retail outlets are family-owned and offering limited products
and finance facilities.

In contrast, players in the organized sector have big expenses to meet. Organized
retailing also has to cope with the middle class psychology that the bigger and
brighter sales outlet is, the more expensive it will be. Competition is growing in the
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retail business and super stores are being set up, in the rural areas, customers are
entirely at the mercy of retailers. With rising income and changes in life style, demand
for better products became insistent. From a size of only Rs.20,000 crore, the
organized retail industry will grow to Rs 160,000 crore by 2005. The total retail
market, however, as indicated above will grow 20 per cent annually from Rs 400,000
crore in 2000 to Rs 800,000 crore by 2005.
Big industrial houses, such as the TATAs, the RPG group, ITC, HLL, realizing the potential
of the retail business, are now scrambling for a place in this segment. Over the last five years,
these groups have set up a number of chain stores. For instance, West Side by Tatas, Food
world by RPG, Shoppers' Stop (Rahejas), and so on. Global developments in the retail
industry, together with changing demand patterns of the Indian consumer, have affected the
retail industry format in India too. This can be seen in the emerging Supermarkets,
Hypermarkets, Specialty stores and Malls in India.
The value that retail can add to the economy cannot be underestimated. However, challenges
that lie in implementing the change agenda required to capture these benefits should also not
be underestimated.
Reason for the increase in the organized retailing in India:
Rewriting the laws

Restructuring the tax regime
Accessing and investing significantly in infrastructure
This level of change is unlikely to be successful if carried out by any one retailer. A concerted
industry-wide effort and a partnership with the government are required to achieve a number
of these goals.
The crucial aspects to Retailing the front end of manufacturing and last-mile of supply
chain need specialized skills, which will be individually deliberated at length covering:
Finance
Technology
Supply Chain Management
Inventory Management
Success and Survival
VAT The Advantage
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Most single-format retailers have diversified successfully into multiple formats. The move
towards multi-category and multi-format outlets is diminishing the scope of existing retailers
to differentiate based on assortment or location alone.
Food & Beverages Market In India

India ranks first in the world in production of cereals, livestock population and milk.
It is the second largest fruit and vegetable producer and is among the top five producers of
Rice, Wheat, Groundnuts, Tea, Coffee, Tobacco, Spices, Sugar, and Oilseeds, yet Indias
share in international food trade is a minuscule 1.5%. Value addition to foods by processing is
a mere 8% of total production.
Organized food retailing industry is still at infancy stage with share less than 1 per cent of
food retail market size in India. This is despite the fact that food is the largest category in
consumers spending basket. Indian consumers are deprived of quality food products, variety
and value-added services at the retail end largely because of the highly fragmented nature of
food retailing. Organized food retail has the potential to bridge this gap - and herein lies the
opportunity.
The Indian food retail industry is of a highly fragmented nature and consumers are deprived
of quality food products. Organized food retail has the potential to bridge this gap.
Organized retailing is also emerging as an important gateway for the sale of food products. In
Chennai, about 17 per cent of food sales flow through supermarkets. In the metros, most
women have shifted to supermarkets from street corner grocers. The world of food retailing is
witnessing a paradigm shift that will have long-term implications for the way food retailing
evolves in emerging economies like India.
Retailers are looking to capture a larger share of consumer spending by expanding their
product portfolios. Increasing pressure on financial performance is also prompting food
retailers to look at high-margin categories, which include non-food products and services.
Retailers have also realized that they need to become multiform at if they are to expand their
customer base and gain a competitive edge.
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Differentiation on the basis of value for money and value-added services will, however,
become increasingly important. Retailers across the world are experiencing a wave of
consolidation that is being driven by the desire for economies of scale, saturation in domestic
markets and the desire for access to new markets.
In line with international trends, the Indian market has already seen organized food retailers
going multiform and multi-category with an increasing focus on private labels. Consolidation
is likely to be triggered by the entry of leading Indian corporate and international retailers
into the food-retail arena.
The share of spending on at-home food consumption has fallen from 90 per cent to 80 per
cent in the last five years between the top two socio-economic strata. Significant spending on
food and increasing out-of-home food consumption represent opportunities for food retailers
and food-service companies. India has the highest number of retail outlets in the world 12
million outlets with a total retail space of about 2 billion sq ft. Owing to this fragmentation,
the availability of retail space per capita in India is among the lowest in the world 2 sq. ft
per capita compared with 19 sq ft in the US. Some 5 million of these outlets engage in retail
of food and food products. The degree of fragmentation is much higher among food retailers
than among nonfood retailers. The majority of food and food products are retailed through
neighborhood kirana stores.
The organized food retailing sector in India is on the verge of a boom with almost all
the big corporate houses including Tatas, Reliance, ITC Group, Lohias-promoted Indo Rama,
Mumbai-based RK Hospitality, Kishore Biyani with his Big Bazaar, RPG group with its
hypermarket and supermarket chain eyeing the sector aggressively.
Transition Of Cafes
Coffee remains in the outer periphery of interest in the minds of consumers. Other aggressive
beverages like tea and the colas of every hue have a substantially higher degree of interest
and of course advertising backing them. Coffee consumption is down in the last four years.
From a level of 55,000 tpa, the numbers are down at 52,000 tpa today. Per capita
consumption hover around 52 gms. This signifies a measly 10 cups of coffee per Indian per
year! Branded coffee consumption is a small percentage of the total. Only 19 per cent are
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branded and the rest is in loose forms. However, a significant increase in consumption in the
branded segment anticipated. This is going to be spurred by the liquid coffee cafes and of
course, the inroads foreign brands will make in the domestic market soon.
Liquid coffee bars and vending machines are going to spur consumption on in the country for
coffee. These are going to be front-ended efforts that will make coffee that much more
consumer-friendly and will make the beverage accessible at arms length reach and available
at the end of a desire.
It is expected to have 60,000 coffee vending machines in the country in the next three years
and expect to see at least 4000 Cafes across the country in the next five years. The market for
vending products in India is opening up. Towards the end of the review period, with
organized retailing coming in, consumers started believing in brand names. Vending products
through machines started not only for coffee and tea, but also for soft drinks, chocolate
confectionery and magazines, amongst others. The total strength of vending machines in the
country is approximately about 60,000 machines by the end of 2004, which includes a large
number of unbranded machines too.
Coffee pubs and cafes mushroom throughout India, with vending machines also on the rise.
Over the review period, there was a mushrooming of coffee pubs and cafes across regions,
and across the country as a whole. Coffee chains like Barista, Qwiky's and Cafe Coffee Day
(run by Amalgamated Bean Coffee Trading Co Ltd) have become hugely popular hangouts
for Indian cities' young and trendy consumers. The cafes and pubs are not just places where
people buy coffee; they also try to sell a certain lifestyle. The chains, with their glitzy
interiors and designer furniture, are targeted at urban, upper-middle-class and rich Indians.
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ORIGIN
A traditional family owned a few acres of coffee estates, which yielded the rich coffee beans
in the soil of Chikmagalur, However they soon amalgamated with Bean Coffee Trading
Company Limited, now popularly known as Coffee Day. The coffee growing tradition was
since 1875, but the opportunity after the deregulation of the coffee board in the early nineties.
Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan. In the
calendar year 2000, Coffee Day exported more than 27000 tonnes of coffee valued at US$ 60
m to these countries and, for the second time in its short career of 7 years retained the
position as the largest coffee exporter of India.
B) About Coffee Day

Coffee Day has a wide and professional network in the major coffee growing areas of the
country comprising over 50 agents and 50 collecting depots. Coffee Day's two curing works
at Chikmagalur and Hassan cure over 70,000 tonnes of coffee per annum, the largest in the
country. Coffee Day has a well-equipped roasting unit catering to the specific requirement of
the consumers. The process is carried out under the control of experienced personnel to meet
highest quality standards. The most modern technology available is used to maintain
consistency and roast the coffee beans to the demanding specifications of the discerning
coffee consumers.
Key Features:
125 years of coffee growing history

A fully equipped ISO certified roasting plant with a 70000 tonnes per annum capacity
at Hassan
5000 acres of self owned Coffee Plantations
A ready and enviable base of more than 10000 suppliers
Among the top exporters of coffee in India (Coffee Day Exports)
Coffee Day Comprises of the following Sub Brands

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Coffee Day - Fresh & Ground

Caf Coffee Day
Coffee Day Vending
Coffee Day Xpress
Coffee Day Exports
Coffee Day Perfect
INTRODUCTION-CAF COFFEE DAY

Caf Coffee Day currently owns and operates 169 cafes in all major cities in India. It is a part
of India's largest coffee company named Coffee Day, ISO 9002 certified company. Coffee
Day's most unique aspect is that it grows the coffee it serves in its cafes. Cafe Coffee Day's
vending machines have a special niche in the market compared to competitors because Cafe
Coffee Day machines offer filter coffee unlike the instant coffee offered by competitors' brands.
Growing from a coffee exporter to a coffee parlour, caf coffee day has certainly come a long way in
this segment. Caf Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean
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Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore ISO 9002
certified company. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in
Asia, that is owned by a sister concern and from 11,000 small growers. It is one of Indias leading
coffee exporters with clients across USA, Europe & Japan.
With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees
and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning
the entire value chain of coffee consumption in India. Its different divisions include: Coffee
Day Fresh n Ground (which owns 354 Coffee bean and powder retail outlets), Coffee Day
Xpress (which owns 341 Coffee Day Kiosk), Coffee Day Take away (which owns 7000
Vending Machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee)
division.
Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf
at Brigade Road in Bangalore. Till about the late 1990s coffee drinking in India was
restricted to the intellectual, the South Indian traditionalist and the five star coffee shop
visitor. As the pure (as opposed to instant coffee) coffee caf culture in neighboring
international markets grew, the need for a relaxed and fun hangout for the emerging urban
youth in the country was clearly seen. Recognizing the potential that lay ahead on the
horizon, Caf Coffee Day embarked on a dynamic journey to become a large organized retail
caf chain with a distinct brand identity of its own. From a handful of cafs in six cites in the
first 5 years, CCD has become Indias largest and premier retail chain of cafes with 498 cafes
in 85 cities around the country.
Enthused by the success of offering a world-class coffee experience, CCD has opened a
Caf in Vienna, Austria and is planning to open other Cafes in the Middle East, Eastern
Europe, Eurasia, Egypt and South East Asia in the coming months.
Cafe Formats
Caf Coffee Day has been experimenting with caf formats for quite sometime.
Backed by the motivation of providing customers with exciting choices as well as
constantly redefining the caf experience, CCD has ventured into the following
formats:
Music Cafs provide customers with the choice of playing their favourite music
tracks on the Digital Audio Jukeboxes installed at the caf! There are around 85 cafes
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with such jukeboxes. 32 cafes also provide customers with the visual treat of watching
their favorite music videos by means of Video Jukeboxes.
Book Cafs offer the perfect solution to people who think that the coffee experience
is incomplete without browsing through the bestsellers or reading a classic. CCDs
book corners accentuate the age-old combination of coffee and books. This exciting
concept has been successfully tested at 15 cafes in 12 cities across India and the
numbers are set to grow exponentially. CCD has tied up with English Book Depot,
one of Indias leading book distributors for placement and rotation of reading
materials appealing to Caf Coffee Days discerning customers.
Highway cafs on the Bangalore Mysore highway and NH-8, presents the traveler
en route not only with good coffee and scrumptious snacks amidst great ambience but
also with clean restrooms to get rid of that weariness from the road!
Lounge cafs at Hauz Khas, Delhi and Southern Avenue, Kolkata(Southern Avenue)
and Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the
lively ambience and comfort of a caf. With exquisite interiors, exotic menu and
thematic music CCD Lounge offers a whole new experience to the connoisseur while
assisting the latter through its team of hostesses who are poise and style incarnate and
are looked upon as fashion icons.
Garden cafs at M.G Rd, Bangalore and GKII, New Delhi combine the joy of
rejuvenating amidst verdant landscapes and pots of coffee.
Cyber cafs at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi
combine the urge to surf, not to mention get connected through the internet while
enjoying perfectly brewed cups of coffees, both domestic as well as International
blends!
Mission statement
To be the best caf chain in the world by offering a world class coffee experience at
affordable prices.
Brand association
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CCD has emerged as an interactive alternative media for brands to communicate with the
young at heart.
Other media, such as electronic, print and outdoor, offer brand communication through visual
and audio modes to a large section of the populace, both relevant and irrelevant. Caf Coffee
Day offers a much more interactive, targeted communication, sometimes adding even a taste
dimension to a brand idea!
Various in-caf collaterals used to impart visibility to a brand inside a caf or to add the
element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures,
Coasters, Drop boxes, Contest Forms, Stirrers, Standees etc.
Over the years, CCD has successfully promoted a number of brands/products/events through
various innovative tactics and promo ideas. Cashing in on its mass captive audience, we at
CCD have entered into tie-ups and promotions which are well knit with our brand promise
and which can be creatively used to woo the Indian Youth.
Customer profile
The caf is a meeting place for 15-29 year olds, both male and female who are served the best
coffee by friendly and informed staff, in an uplifting and invigorating ambience.
Research shows that teen-agers form 25% of our customers while 38% of the customers are
between 20 and 24years and another 23% belong to the age group of 25-29 years. Students
and young professional comprise around 72% of our customers.
18% of the customers visit the cafes daily while another 44% visit weekly. Each caf,
depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm
and 7 pm. Customers describe Caf Coffee Day as the place they frequent most after home
and workplace/college. It is a place where they meet friends and colleagues, in groups of 3
or more; a place where they rejuvenate and are free to be themselves rather than a place to be
seen at vis a vis other cafes.
Awards
Cafe Coffee Day: the best Indian Food Services Brand Business World November 8th,
2004
Food services top 5
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1. McDonalds
2. Pizza hut
3. Caf coffee day
4. Barista coffee
5. Dominos
Key Features:
Pioneers of the Caf Concept in India with its first Caf at Brigade Road,
Bangalore in 1996. This Caf was opened as a Cyber Caf (first of its kind) but
later, with the burst of cyber cafes it reverted to its core competency.Coffee
Essentially a youth oriented brand with majority of its customers falling in the
15-29 year age bracket
Each caf, depending upon its size attracts between 400 and 800 customers
daily
At present it operates 169 cafes across 43 cities
Plans to operate 200 cafes by December 2004
It is a place where customers come to rejuvenate themselves and be themselves
Marketing Mix
Every company goes through different phases in the business. The phase is very similar to
that of the product lifecycle. In order to sustain in the market and to maintain its market share
it is essential for the company to have a right marketing mix. The company has to have a mix
of proper product that is relevant to the target audience, proper price, proper reach i.e. the
place and relevant promotion that keeps the target audience interested in the company.
I) Product
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Caf Coffee Days menu ranges from hot and cold coffees to several other items.
However, the core product is the coffee. The management believes that trend is changing
towards coffee. So taking this opportunity, the
company also sells coffee powder. Caf Coffee
Day also believes in selling other merchandised
products.
Core Product:
Exotic international coffees e.g.
Capachinos
Food items e.g. Sandwich, Samosas
Desserts and pastries
Supportive Products:
Funky Caps @ Rs 60
onwards
Cool T-Shirts @ Rs 175
onwards
Bags @ Rs 160 onwards
Mugs @ Rs 60 onwards
Coffee Filters @ Rs 95
Coffee Powders:
Arabica @ Rs 43
Perfect @ Rs 35
Charge @ Rs 28
Dark Forest 200gm @ Rs 80
New Introductions:
Reglon Sleeves T-Shirts @ Rs 249

Marquis pens @ Rs 315 Onwards.
Shoulder Bags @ Rs 209
Coffee Mints @ Rs 40
II) Price
Caf Coffee Day has positioned as Value for Money. The major target customers
are the youngsters. Pricing is a very sensitive issue for the Indian consumers.
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Caf Coffee Day believes in mass marketing.

The average spent by the customer is 100-125. Their coffee starts from as long as
15 Rs. However there are some outlets where the students are given special discounts. CCD
even set up their outlets in the college campus. For e.g. Caf Coffee Day has opened an
outlet at the NMIMS campus where they are providing additional 10% discount to the
students.
CCD is looking for expansion to more interior places. Here prices become more complex as
the consumer are very conservative in spending. A cup of coffee at Rs. 35 is accepted in
metro cities but not in small towns. The decor, ambience and the experience will play a
major role in pulling the crowds in small cities.
The price of the product has to be kept uniform in order to maintain the
uniformity in all the outlets.
CCD target audience is youngsters. Majority of them are dependent on their family for their
expense. This is one of the most important reasons for low pricing compared to other cafes.
They believe it in making their product at an affordable price.
Pricing is one of the important weapons for them to fight against their
competitor.
III) Place
Caf Coffee Day outlets are spread across India. However, there are more number of outlets
in the metros and towns. For e.g. In Mumbai CCD have 37 outlets. In the past 12 months,
Caf Coffee Day has also been on an aggressive drive to expand the number of cafs in the
smaller towns across the country based on research and invitations received from these places
to open more such cafes there. The company expects to cross the figure of 200 cafs in 60
cities by December 2004. There will be an increased focus in cities having populations from
as low as Five Lakh upwards. However, the focus has not been on just opening more cafs
wherever there has been an opportunity. Caf Coffee Day is already the largest and most
wide spread retail chain of cafes in India with a current count of 169 cafs in 43 cites.
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CCD plans to reach cities like Kolhapur and Nagpur in the west, Hubli, Belguam and
Vizag in the South, Allahabad, Varanasi, Ambala and Patiala, in the North, Jodhpur and
Mount Abu in Rajasthan and Bhubuneshwar, Ranchi, Cuttack, Darjeeling, Guwahati and
Jamshedupr in the East.
IV) Promotion
In order to stay with the competition and to keep the audience interested, they undertake lot
of promotion activities. CCD jointly organizes large number of promotions with the other
companies serving the similar target audience. These cafes have emerged as a new media
vehicle for reaching the right type of the customer.
CCD gets in physical touch with audiences, target loyalty club members, or advertises in their
newsletters. CCD has also undertaken a promo jointly with TVS scooty. The promo was done
at all the outlets across 43 cities. In this promo a package of 2 ices blended cold coffee and 1
choc fantasy for just selling for Rs 82.
Customer Loyalty Programme:

Coffee shops have a high loyalty factor i.e. 60-70% of customers come in at least once a
week. The Cafe Citizens Programmed launched along with Net Carrots
Loyalty Services would reward regular customers of Cafe Coffee Day. Any customer who
bills a minimum of Rs 100 on a single bill is automatically eligible for membership to the
Cafe Citizens Programmed. The programmed entitles members to a 10 percent discount on all
food and beverage bills for a year from the month of membership. Members will also receive
surprise gifts from India times Shopping when they reach a total billing amount of Rs 2,000,
Rs 5,000, and Rs 10,000. Members can track their total bills spend at any Cafe Coffee Day
outlet across the country. The programme was very successful and they attracted 1,35,000
citizens.
Smart Card Programme:

Started from 1st Aug, 04; one can enroll into the program by paying Rs.100/- at any
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Caf Coffee Day Outlet and get a TEMPORARY CARD immediately after filling in the
enrolment form. With the Card, one can accumulate Value Points Equivalent To Cash on
net purchases at every transaction made at any of CCD outlets, provided the card is submitted
to the caf staff at the time of placing each order.
The personalized permanent SMART CARD would reach at ones place in 7 days from the
day of enrolment and the points would be transferred from temporary card to the
PERMANENT SMART CARD. The points accumulated on the card would be printed on
the bottom of the bill. So it is very easy to keep track of the points. As soon as 100 points
have been accumulated on the card, one can start redeeming the points. Points can be
redeemed on food, beverage and now even merchandise like coffee powder, T-shirts, mugs
etc except Jukebox coupons.
Current Promotion:
Oyester Bay
The current promotion is done with the Oyester Bay Jewellery for the womans day.
CCD has arranged the contest, which is arranged for the womans day event. This type of
contest attracts the young crowd especially girls.
Fame Adlabs
CCD is also involved in the promotion with Fame Adlabs. The pamphlets are being
distributed indicating the current movie shown and the movies to follow. Also it shows the
special offer for some lucky customer to get the coffee free.
Magazine
CCD also has private magazine distributed free to their customers. It includes ads and
advertises about the promotions to follow.
V) Tie-Ups
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CCD jointly organizes large number of promotions

with the other companies serving the similar target
audience.
EBD Book Caf:

EBD is book caf has joint ventures with CCD. EBD
Book Caf believes that by selling books from within the espresso bars like CCD and other
such co-locations that have a footfall of over 100 plus customers in a day will help them to
achieve growth in book sales. One can find ones favourite books at such cafes starting
from fiction, non-fiction, religion, cookery, management, lifestyle, art & craft, children
books and much more. EBD Book Caf are in collaboration with Caf Coffee Day have
existing outlets in Ludhiana, Jaipur, New Delhi and Kanpur and are in discussion to open
more such outlets in, Mumbai and Ahmedabad. The CCD
bookshops are in the same premises though not necessarily inside
the outlet.
Himalaya with CCD:

To drive usage of honey, Himalaya
Drugs is developing daily diet products and looking at marketing
them by tying-up with leading consumer brands. It has tied up
with Cafe Coffee Day, to create four dishes; Honey
Cappuccino, Honey milk shake, Rich Chocolate Cake and ice
cream topped with honey and nuts. The Caf Coffee Day partnership is unique. It provided
a platform to reach out to the target audience in a relaxed environment where they could
experience innovative uses of honey. The association with Cafe Coffee Day across 100
outlets in seven cities wasnot only to expand the category, but also towards creating touch
points to experience
the goodness of Himalaya Forest Honey
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Levis:
CCD has also tied-up with Levis where CCD will promote Levis product in their cafes.
Levis recently launched their latest range of apparel, Levis 501, through CCD as part of
their annual laterals like Wall visuals, Tent cards, Posters and Door stickers. There is also a
special Levis Drink.
Movie launches:
Apart form product launches, the company also does a number of tie-ups with the movie
industry in the same manner. For instance, there was Damdaar coffee that was sold during
the launch of the movie DUM. There was also the Damdaar contest wherein the prizes were
movie tickets, posters, CDs, and cassettes. In addition, the winners get a chance to meet and
have a coffee with the stars of the movie.
The latest movie promotion was done for the movie Mujhse Shaadi Karogi which said
Bill a Shagun amount of Rs 301/- and you can enter the Mujhse
Shaadi Karogi Contest and in the contest form there were questions like Who will win
Priyanka? or How will you say Mujhse Shaadi
Karogi to the person you love?
etc.
Ambience and Surrounding

First Impression is the Last Impression. This is
true in this business. The first thing that the customers
come across is the surrounding and the ambience of
the store. To further brighten the vibrant atmosphere
of the cafs, there has been a greater thrust on
providing more value added services such as video
juke boxes, cosy sofa seating, and exciting round the year promotions.
Trading Co. Ltd had gone in for an image change and revamping of interiors in the last
quarter of 2001.
Caf interiors at the company's 169 outlets are being given a whole, new look. In a change
from the largely wood and granite based interiors, there is more of steel and lots more colour.
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The young colours of today, lime green, yellow, orange, and purple will predominate. The
crockery will also sport these colours. The larger cafes will also have lounge areas and a few
beanbags.
International Presence
Caf Coffee Day, the premier retail chain of cafs in India announced major
developments within the company including its dynamic plan to expand the chain into
the overseas markets. After having established itself firmly in the domestic market offering
a world-class food and coffee experience to over 25 million customers annually across the
country, the chain has already started setting up the infrastructure at 10 cities where it has
targeted to open at least 50 cafes by December 2004. The entire international offering will be
based on the successful Indian brand/model in which Caf Coffee Day has gathered a lot of
rich experience in coffee caf retailing.
As with the domestic cafs, the international cafs will also be trendy, offering attractive
prices, and the coffees served will be made from the premium quality coffee beans.
Future Strategy
Spreading Wide:
CCD is planning to increase its reach by going to the small towns. To achieve the mission of
being a number 1 player in coffee category they cannot ignore these small towns. CCD plans
to open 45 more cafes in the next three months. The Company is focusing on the southern
states of the country such as Tamil Nadu, Karnataka, Andhra Pradesh and Kerala, and the
western region, starting with various markets in Delhi.
To widen the scope of target audience, CCD is planning to open some special cafs.
These cafes would serve to the different target audience. However, they have aggressive
competition from the Barista and other cafes. According to the management, they have
a greater threat from the foreign players.
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Expensive Cafes:
The major target group of CCD is the youngsters. However, the company wants to widen its
target group. Caf Coffee Day is planning to come up with a different type of caf, which
will be having different environment all together. Even the merchandise will be different
from that of the original CCD cafes. The coffees and the merchandise would be much more
expensive and of a better quality. These cafes are mainly targeted to people with highincome group and status oriented people.
International Coffee Flavours:

CCD is planning to start soon with the international coffee at all the outlets.
They have already done the test marketing in certain outlet of Bangalore. Adding the new
flavour would increase the choice for the customer.
Its All In the Mind

CCD holds a distinct position in the minds of the target customer. Most of the customers are
loyal and visit the same outlet. CCD is very aggressive in terms of the marketing activity in
order to maintain the market share. Major customers are youths. Focusing on the target
group, tie-ups are done with other companies in order to keep the audience interested. They
are planning to tie-ups with the cinema theaters, shopping malls. Coffee Caf Day is the
most popular hang out place for the youngsters. CCD is perceived as energetic and trendy
organization. The crowd is very lively. Most of the consumers are frequent visitors. Many of
the people also have their loyalty card I visit here twice a week. Its a good place to
hang out with friends.
CCD has the wide variety of coffee that suit to the consumers needs. The ambience is very
clean, well-lighted and airy. Most of the outlets also have large parking space and good
seating arrangements. There is a young feel to it. The prices are very reasonable
(compared to Barista, not our local Udipi) too and an average coffee would cost about
Rs. 40. They also have attractive T-shirts sporting Coffee day labels, cups, etc for sale, which
are manufactured by Coffee day.
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The food at CCD is at the affordable price. Customers coming out there also find the food
interesting especially veg. wraps and the chicken ciabatta (Italian sandwich). However
they dont like pizzas. Sometimes, the food smells a bit stale.
The deserts are the most preferred by the youngsters especially chocolaty cakes and
apple pie. The employees are very friendly. They maintain a good relation with their
customers. At CCD employees are very helpful and serve the customers, which differentiate
them from other cafes. CCD coffees are much cheaper than that of cafes. This is one of the
main reasons for attracting the young college crowd. CCD is also very well spread.
Many customers believe CCD move with the competitor. Wherever Baristas
opens its outlet, CCD comes with the outlet.
One will not find more of working class or management people. Its not the good place to
have a business talks. The place is very noisy which makes them difficult to concentrate.
Even the seats are much closed arranged thus does not maintains secrecy.
The music at CCD is very loud and trendy that is suited for the young crowd.
There are also some people who believe that CCD is cheap and it does not suit their status.
The other problem that customer feels is the practice of having a TV set that is perpetually on
MTV or Channel V or something and something loud and jing-bang going on.....It would be
much better to have some soft music.
SWOT Analysis
Strength:
Large Number of outlet.

In house sourcing of coffee beans.
Tie Ups with good companies.
Weakness:
Limited Target Audience.

Follow the competitor strategy.
Quality of food- Stale breads.
Loud and Hard Music.
Improper sitting arrangement.
Opportunity:
Page 23
Large Untapped Market

Tie-ups with other companies for promotion.
Threat:
Entry of Foreign players like Georgia, Starbucks etc.

Large unorganized market.
Outlets Visited
Rajiv chawk CCD:
The Store was started store started on 12 Sept 2003. This is one of the most premiums and the
busiest of the CCD outlet with the capacity of 50 seat and 15tables spread over more than
1200 sq. feet. The location of the store has also played an important role. The store is located
in the Rajiv chawk metro station which is one of the favourite freaky places for the
youngsters. The store has Being one of the most important outlets for CCD, it has the
maximum number of foot fall.
CCD working hours is normally from morning 9 to 11:30 nights. daytime customers mainly
includes youngsters, students, and families in the late night. However the peak timings are
from- 6-8, 10-11 pm. The staff members include 2 Branch Manger and 12 male employees,
and 4 female employees. CCD also follows the pattern of shifts i.e. 4 staff member in the
morning and 14 in the evening.
Normally the footfall at the Rajiv chawk branch are un masked per day. However it may vary
substantially during the holidays and during other occasions. The Average spend by the
customer is Rs 100. The footfalls and the average spending however vary. This branch has
more footfalls and also the average spending is more compared to the other stores.
The outlet has Unique Machine LaMarzotco (Asconia) which itself cost approximately
5 lac Rs.
37% lies in the age group 20 and 24

27% between the age group of 25-29 years
60% of the customers who visit the caf are male and 40% are female
52% of customers who visit the cafes are students
18% of the customers visit the cafes daily while another 44% visit weekly
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II) Laxmi nagar CCD:

The Store at Laxmi Nagar is
also a good revenue earner for
the company. The store is located
in the sikha gallry ISC sresth vihar.
This store is also an important
store due to the location and also
the target customers.
LaxmiNagar is one of the most
famous place for shopping. This
store is not as big as that of the outlet at
rajiv chawk. It has a sitting capacity of 95
people.
The working hours at
Lokhandwala outlet is 9 am to
12 pm.
The peak timings are
7-9p.m.(Working Crowd & FAMILIES)

10:30 p.m.- 11.30 p.m.
(Families)
The USP of this store is its large parking space. Customers come to the outlet after shopping
from Laxmi Nagar to have a coffee. The music is not appropriate which makes some of the
customers annoyed. The Machine used in this outlet is Asttoria, which cost around 3.5 lac.
The store sells lot of other products like T-Shirts and cups, which also do good business.
However, the goods are not properly displayed. The staff at the outlet was efficient courteous
and very helpful. There is a good customer service from the staff and helps the customer in
making the decisions. The staff strength is 11 and is divided into 3 shifts that include 1 store
manager.
Customer Profile:
Foot fall- around 100-400per day

The average spend: Rs.125-150/customer1-3 p.m.
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Comprises primarily of youth from the 18-30 yrs age group

Attracts a lot of people from the film industry
INTRODUCTION-BARISTA
Barista (which means bartender in English) is an Italian coffee chain shop.
Page 26
Barista traces its roots back to the old coffee houses in Italy- the hotbeds of poetry, love,
music, writing, revolution, and of course, fine coffee. Barista Coffee was established with the
aim of identifying growth opportunities in the coffee business. Increasing disposable incomes
and global trends in coffee indicate immense growth potential in this particular segment.
More significantly, they have been quick to spot a latent need waiting to be tapped: Coffee
lovers seek a complete experience. One that combines intelligent positioning with the right
product mix and carefully designed cafes. In other words, they seek an "Experiential lifestyle
brand".
As one might imagine, tapping into this need requires a company that can not only deliver
great coffee and espresso bars, but one with the ability to scale up operations quickly. At
Barista, they have gone to great lengths to establish this. Barista started its operations with its
first outlet at New Delhi in Feb 2000. The Company was promoted by Amit Judges Turner
Morrison Group BARISTA Coffee
Company Ltd - in which Tata Coffee Ltd holds 34.3 per cent stake Ventured into
India.
Barista Coffee Company Limited has been recently listed among the top 100 brands in
India by Super Brands India; the Indian Division of the globally renowned Super brands
ltd. Barista was selected out of 711 leading Indian brands across 98 categories. Barista has its
operations spread over 153 outlets across India.
At present, Barista had, he said, over 120 espresso bars and corners in the four metros
and 14 cities of India, with 35 being added over the last 12 months, out of which 10 had
been relocated.
B) Barista Marketing Mix

Barista continued to maintain its focus on quality by sourcing only Arabica beans and
using the best international espresso machines, supplied by the Italy-based
LaCimbali.
Barista was, working towards becoming the number one in terms of parameters likes
brand-imagery, brand-dominance, customer-loyalty and turnover. The strategy for
Page 27
fulfilling its mission over the next decade would be by leveraging its strong position in the
Indian market to grow further in an Asian context.
I) Product
Barista cafes also have a good number of product mixes. The menu ranges from
variety of coffees and pastries. Barista also sells other items like mugs, Coffee beans, TShirts, Coffee Kettles.
Core Product:
Coffees
Cakes and Pastries
Coffee Beans
Supporting Products:
Coffee Mugs in Orange and Blue which cost Rs 55 and Rs 99

T-Shirts which cost Rs 150
Coffee and Coffee beans are also considered as the core product for Barista. The
company has also tested marketed coffee beans through its outlets in Mumbai and
Delhi. Barista claims that they sell a best coffee bean.
Barista has started with a new concept by the name Barista Merchandise. Barista
Merchandise is available at selected Barista espresso bars in Delhi, Mumbai,
Kolkata, Chennai, Hyderabad and Bangalore. The Barista merchandise are the
different types of beans that customer can take home and have the coffee of his own
taste. Some of the Barista Merchandise includes
The French Press

Barista House Blend
Barista is also diversifying its hot beverages menu and introducing several
specialty teas. The reasoning undoubtedly is based on the fact that apart from
South India, all other parts of the country are mainly tea-consuming areas, and
this step is expected to help the company expand its client base in the smaller
towns of these regions.
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II) Price
Barista holds the perception of being an expensive cafe. However, Barista was the first
organization to start the concept of the organized cafes in India. Initially Barista started
with Skimmed pricing policy. Barista segmented the market according to the income and
age.
Due to the entrance of new players, Barista was finding difficult to maintain the market
share. First and foremost, Barista re-defined the target market customer. They even planned
to change their tagline. "Where the world meets And so when company looked at this
positioning and they looked at the pricing - the strategy being that if we lower the pricing.
Apart from this, Barista has also introduced new low-priced beverages. The officials say
these price cuts have resulted in 15-per cent walk-ins at Barista's outlets during the last few
months. Barista decided to alter their strategy in order to retain their market. After studying
the market, Barista found that competitors were fighting against them against the pricing.
They decided to reduce their pricing. It was not done from a perspective of acquisition. With
reduction in the prices, there had been a 47 per cent increase in footfalls over the subsequent
three months. December 2003 had, seen Barista experiencing a 21 per cent per-store
increase in footfalls over the previous December, with the number of footfalls for the
year totalling 14 million.
III)Place
Barista started its first outlet at Bangalore and from there it has started spreading its wings
especially after price reduction. Now they are even planning to focus on raising the bar of
coffee experience. Barista already has presence in all the metros and has a presence in all
the highly populated regions like Mumbai, Delhi, Bangalore and many more places.
Barista is seeking to expand through the franchisee route model and plans to enter Bclass
towns in the country and middle-class localities in the metros such as North and East Delhi.
By 2005-06, Barista plans to have over 300 outlets across the country up from 153.
IV) Promotion
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Barista did not initially believed in any kind of promotion but in order to keep their customers
interested they started building the brand by communication both within the store as well as
outside the store through mass media. It under takes various promotion activities during
the festival or during occasions like Valentines Day.
Barista has done advertising in almost all national newspapers. Barista has launched summer
campaign through summer chillers, and was advertised through different channels. Sony:
Barista Coffee has tied up with Sony Music. Under this association, Sony Music would
endorse CDs and music cassettes of their recent acts, which will be used as the lucky draw
prizes for the participants. Consumers buying food, beverage and merchandise for Rs 110/and above during specified hours of the performance, will be entitled to participate in the
lucky draw. The prizes will be given away in a couple of draws during the performance.
V) Tie-Up
Barista with Taj Group:
Barista Coffee, a leading coffee bar chain, has tied up with Taj group of Hotels
for setting up exclusive Barista expresso bars at the Taj hotels in metro cities.
The first such bar would be at the Emperor Lounge at the Taj Mahal hotel in New
Delhi followed by a Barista Bar at the Sea Lounge at the Taj Mahal Hotel in Mumbai.
This would be followed by similar bars at Taj Mahal hotels in Calcutta, Chennai and
Bangalore. Barista also will be housed at the coffee shops of all major Taj Hotels in
the country. Barista with Tata Teleservice:
Barista has also tied up with Tata Teleservice. This tie-up was primarily done in order to
provide consumers' access to the Internet. The objective being, today if you look at Barista
consumers, a fair number of them come to Barista to discuss business over a cup of coffee.
Moreover, it is easier for them to meet at Barista, discuss business and send the information
across. It is going to be focused primarily on work, towards the busy executive who is
traveling and has dropped by for coffee or the small office segment who might just want to
work out of Barista.
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Lacoste with Barista:

Lacoste India has decided to tie-up with coffee outlet chain Barista in all the major metros
and some mini-metros. The strategy is to target younger audiences, which have a
penchant for the "finer things in life". The customer segment of Barista is very different
from the ones who visit a regular coffee shop.
Elle-18:
Barista is jointly tied up with Elle 18 to promote their product. Elle-18 is launching a
collection of coffee colored lipsticks and has named it after Baristas beverages!
Therefore, they are working with Elle 18, which is a youthful brand. Moreover, they both will
grow with this association. For Elle 18, the objective is to build a platform for their range of
coffee colored lipsticks and for them, the objective is to associate with the brand and have
their consumers coming in to Barista.
CBC Book shop:

Barista has tie-up with CBC bookshop, which has book corner at eight Barista outlets in six
cities. Baristas bookshops are right inside the caf. Barista prefers best sellers and classic,
besides books on management, lifestyle, sports, health, religion, children and even cookery.
Some of the outlets also stock activity books, comics, CD-ROMs and crayons.
Other tie-ups:
Barista has tie-ups with Planet M, Crossword and the Taj group of hotels for setting up
Espresso corners within their premises. Moreover, along with ABN Amro,
Barista has introduced a concept called Ban caf - a caf in the bank premises.
Ambience And Surrounding

Page 31
The colour shades that they have used are terracotta; it is warm - it is orange.
The background has a dark
Orange colour. Orange colour
signifies of a style and friendly
ambience of its own.
In order to match the colour
combination of the surrounding
even the uniform of employees are
orange in colour. The place invites
the customers to spend time.
However, the focus would,
continue to be to recreate
the ambience of the typical
Italian neighbourhood espresso
bars in India so as to provide a
comfortable place for people to
relax and experience the joy of
coffee. The ambience of the
location and the
quality of coffee would, continue to
be the key factors while growing the
chain.
It has lots of board games for any one
to indulge in, like chess, word
scramblers, and a guitar to pluck some
chords.
Music:
The music is not too loud and encourages conversation, and the person behind the
counter is non-intrusive and friendly.
Page 32
Barista is also planning to organize live music. Listening to live music, while sipping a
warm cup of coffee, next to your beloved can make an evening a perfect memory to cherish.
In order to gift its customers with this tranquilizing experience, Barista is buzzing with live
music this winter spate. Barista presents 'Oceans', the music band that will perform live
at various Barista outlets.
Sitting Arrangement:
Barista is a place for relaxes. Even in a crowded espresso bar, at Barista, one will have his
share of privacy. The seats are arranged at a certain distance to have a privacy of talks as their
major customers come there to discuss the business or to relax and chat.
D) International Presence
The company operates over 130 coffee joints including four in Dubai and Colombo. Barista
had chalked out aggressive strategies for expansions into Europe and West Asia. Barista has
already started its operation in both Sri Lanka and Dubai and doing very well. They are
talking terms with a few potential partners in Kuwait. Barista owns and manages all its
outlets in India but operates through franchisees in other countries.
E) Future Strategy
The management at the Barista outlets thinks that their positioning is very different from that
of CCD. They think that the people going to CCD are young college students. The target
audience for the Barista are young managers and middle level mangers and also family.
However there is a treat to them in terms of the share of the young college going crowd,
which forms a main target audience for the CCD and comparatively small part for Barista. In
order to maintain the share the managers of Barista thinks that they would need to increase
their presence and also have to tap the other untapped market. The company is also planning
to tie-up with other companies in order to increase the promotion activities that would keep
the crowd interesting. They also are planning to organize the festivals of the college or
sponsor prizes in the festival.
Page 33
Increase in outlet:
As part of its marketing strategy, the company is planning to promote international coffee
blends first through 40 Barista stores in Mumbai, Delhi and Bangalore. With the move, the
company also hopes to expand the number of Barista Espresso Bars on an average rate of two
to three per month as well.
International expansion:
Barista is also looking for the international expansion. They are planning to expand in
the Kuwait market. Barista is also planning to expand its presence in the other Asian
countries like Sri Lanka, Dubai.
Promotional Activity:
As part of its marketing strategy, Barista Coffee Company Ltd is planning to launch a
host of consumer promotions at its outlets in 2004. For the purpose, the company is
currently in talks with many entertainment, consumer goods and music companies, which
include the US-based Bose Corporation, Swatch and International Travel House.
Improvement in the Services:

Initially Barista had a system of self-serving. Indian consumers are not comfortable with this
concept. However in some of the outlets they have started serving the customers.
Informative Staff:
The staff should be qualified as they will be dealing with intelligent people. The staff
should be friendly but should not try to educate the customer who is already aware of the
things.
F) Its All In The Mind

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Barista is a place where the world meets. People come to Barista to have a meet or to relax. A
lot of them actually come alone as well. This is actually one of those places with people
coming in alone because they are comfortable with themselves. It is a place where people are
meeting each other in an environment, which is fulfilling social and intellectual needs. The
employees at the Barista are also energetic. They help the customer in making decisions for
their purchase. Some of the customers at the Barista think that they should be personally
served rather than self-serving. When the person wants to orders for some thing customer has
to go to the counter order the requirements, pay bill and the employee takes the name of the
customer. When ever the order gets ready the employee shouts on the top of the voice calling
for the customer to take the order.This actually unpleased the customer as the customer gets
disturbed every time the employee calls for some person.
Product:
During the time of discussion I found two types of customers, one who visits regularly
and other who visits rarely. The customers who come rarely are not actually the coffee
lovers. They just come there to do some time pass. They have no complains about the
product. But the customers who are coffee lovers are not satisfied by the product they serve.
There are some customers who actually complain about the quality of the product.
Coffees are not really that good. The bread is dry; the amount of filling has reduced in
quantity etc. Their desserts fortunately have not suffered and are still pretty good.
Customers not only come there to have a coffee or have a sandwich. They actually come
there to have an experience. They find prestigious when they visit to the Barista. As
major target audience are youths, young managers and middle level management people who
come to discuss their business.
The young students visit there as they feel the sense of maturity. The people who are
status oriented would prefer visiting Barista rather than CCD. Their targets are youth, young
executives and nucleus families. Barista also claims that intelligent people come here
Someone who is intelligent and appreciates the good things in life. claim by Barista. There
are many customers who come there, as they perceive themselves as intelligent people. For
business people toting Laptops they can hook up to the net free of cost or catch up on the
news business magazines and newspapers are available at every outlet. They also come to
Page 35
Barista, as its a good relaxing place where

they can discuss about their clients. There are
people who also come alone. They find
Barista is the place where they can just have
a coffee and think deep, as there is no one to
disturb them.
G) SWOT Analysis
Strength:
Claim to sell the best coffee

Large Number of outlet
In house sourcing of coffee beans
Espresso-Highest selling coffee
Weakness:
Expensive coffee
Self service for the customers
Quality of food- Stale breads
Opportunity:
Large Untapped Market

Tie-ups with other companies for promotion
Threat:
Entry of Foreign players like Georgia, Starbucks etc

Large unorganized market
About the Visit

I) Barista at Connaught place
The outlet at Cp
has a capacity of 48 with
16 circular tables and 2
Page 36
side tables. The

approximately area of
the store is 800 sq.ft.
The outlet is very big as
the other outlet of the
Barista. This outlet being
at a very busy area,
Having a good parking space is
not sufficient.
As the outlet is located at one of the busier area of Cp, the working time for this outlet is from
9 in the morning to 1.30 in the night. the peak time is during the afternoon dominated by
students who are small spenders, shoppers & young executives in the evening and families in
the night who are more than average spenders frequent in evenings & night.
They come to Barista to relax and discuss about their business. The outlet has the
staff capacity of 9 out of which 2 people stay from morning to evening. Footfall
varies form 500-1000 per day; however it varies widely during the festival time.
The average spend per customer is Rs.120 per customer.
Sales:
Only 35 % sales revenue is from foodstuff
Balance from coffee and other beverages
II) Barista at Saket
The Saket outlet has the capacity of 48 people with 14 circular tables and 2 side tables. The
size is 1000 sq. ft.appox. The outlet is located at the residential place. Majority of the
customers are corporate and families and youngsters The working hours are from 9 am to
12.30 am, however the peak timings are from 6 to 11. The total staff strength is 7 during the
week days and 8 during weekends. The outlet is not the biggest contributor as it is located
near residential area and even the footfall is very less compared to that of the other stores
(100 customers). The average spent per customer is also low i.e. 60-70 Rs a visit.
Page 37
The machine used by them are One M31 Dosatron by La Cimbali (operates from 9 am to
1:30 am) and one slush machine Hugoleni by Hugo Leni. The outlet has Guitar (not properly
maintained) and chess & scrabble boards for entertainment.
Awards
Barista the Super Brand
Barista received the coveted Retail Award, voted by consumers as the 'Most admired retailer
of the year 2007: Catering Outlets' at the 4th IMAGES Retail Awards (IRA) 2007, felicitating
Indias top performing companies and professionals in the business of retail. Barista has
also been voted Barista has been recognised by the HTSuperbrand two years in succession.
Food Guide as the best place to have coffee. It is also the recipient of the Caf of the Year
award given by The Times Group in the Times Food Guide.
A huge shot in the arm and validation of the companys efforts has been the recognition given
independently by BBC, The Times of India and Business Standard as the Brand of the Year
(2002).
Barista was also awarded the TOPS award for Specialty Coffee Excellence by the Specialty
Coffee Association of America (SCAA) which recognizes specialty coffee retailers who
differentiate themselves through better business practices.
Recently Barista was also recognized by the HT Food Guide as the best place to have coffee
as well as Caf of the Year award given by The Times Group in the Times Food Guide.
For the year 2003-05, Barista has been selected as one of the 100 superbrands in the country
and is amongst the youngest brands in the list, to achieve this status.
Page 38
Marketing initiatives: In order to enhance this unique experience, Barista focuses on themes
and avenues that complement coffee such as music, books and art. Barista has tiedup with
brands such as Planet M and Corner Book Store to open espresso corners in these stores.
Here, the Barista ambience has been re-created within the establishments giving the
consumers the opportunity to enjoy a cup of delicious coffee while browsing through a book,
enjoying music or appreciating art.
Barista is a comfortable place to spend time with friends, family, strangers, the girl next door,
her neighbour's aunt, well, just about anyone. And even if you drop by alone, they have some
of the finest beverages to keep you company.
To begin with, there's the Barista House Blend - their signature blend of coffee and select
international coffees from some of the most noted coffee growing regions of the world.
Followed by an extensive list of steaming hot espressos, cappuccinos and lattes made from
the finest Arabica beans.
To cool things down, they have fruit smoothies and chilled granitas in tropical flavours. And
finally, a refreshing range of cold and frozen coffees that will make anyone who tries them
return for more.
Barista traces its roots back to the old coffee houses in Italy - the hotbeds of poetry, love,
music, writing, revolution and of course, fine coffee. Drawing inspiration from them, they
have single-handedly taken on the challenge to open people's eyes to the simple pleasures of
coffee and revolutionize the coffee drinking experience in every city that we invade.
Effects of foreign Players

The potential of growth in liquid coffee retailing is huge as coffee consumption in the country
is considerably low. In the North, coffee consumption is eight grams per persons as compared
to 40 gm in the South. After attempts by Barista, Coffee Day and Qwicky's to provide Indian
consumers the foreign players have finally decide to enter Indian markets. Caf Coffee Day
and Barista dominate Indian caf market. The entry of foreign player is a treat for these
players to maintain their market share. The foreign player would also target the similar
segment of target market thus causing the problem for the local players. There is a tendency
of Indian customers to visit once and if they get satisfied than they turn to be loyal customers.
Page 39
I) StarBucks
Starbucks is one of the fastest growing brands in the world, after entrepreneur Howard
Schultz bought the chain 15 years ago. Starbucks Coffee - with its 5,689 outlets in 28
countries - has grown in sales at an average of 20% annually to $2.6bn in '02. The Starbucks
Corporation is reviving its plans for entering India. The company is expected to actively scout
for prime real estate in metro markets in the next few months, and plans to open its first store
in the next 12-14 months. Starbucks has identified Delhi, Mumbai, and Chennai as the
potential entry points for the chain in India. Starbucks is presently working on the franchisee
model.
The Starbucks target audience is the hip, urban, on-the-go caffeine addict, and the chain that
originated in Seattle has got mega-plans for India. Starbucks has pinpointed high-potential
localities like a few in South Mumbai and Bandra. In keeping with its international strategy,
Starbucks will only open shop in the best of prime locations. The company's practice is to
acquire real estate at a premium over market price, in order to squeeze out competition, and it
is planning to do the same in India.
II) Georgia
Coca-Cola India found a good market for the hot beverages. They announced the
launch of low-price ready-to-drink coffee and tea in a bid to capture a larger share of
the domestic beverages market.
The drinks will be marketed under the brand name Georgia and sold through a large
number of retail outlets all over India. According to them, it is time to take the
product from the class market to the mass market. Hot tea and coffee form the biggest
combination in India's burgeoning beverage market. Georgia has launched two types of cafes,
one where normal tea and coffees will be sold and would be priced at 3 4 Rs per cup; the
other is Georgia Gold, which is for the premium segment. Georgia Gold has also merged with
Mc-Donalds.
More and More foreign players would enter into this segment. The company will have to
differentiate their product from the others in terms of price, flavour, ambience and also target
audience.
Page 40
FUTURE OF COFFEE HOUSES IN INDIA

The biggest players in India are CCD and Barista. Most of the coffee houses do their
Branding via the following attributes
1. Experience
2. Customer service
3. Variety/ Variants of Coffee
4. Taste
5. Preparation - in terms of hot/cold
CCD plans to set up 'highway cafes' and 'drive through cafes' to attract customers. These
cafes would be set up at various petrol pumps and the company is seeking tie ups with all
leading petroleum companies in this regard. This will increase their brand image and increase
of Point of Sales.
Nescafe outlets in select cities are positioned on the lines of its Nescafe brand's `taste that
gets you going' theme. Caf Nescafes offer beverages priced as competitively as Rs 10.
Future
1. With increase in FDI, we will see more global players in India. Gloria Jeans was also in
news. Players like Starbucks may enter in India in coming few years.
2. Other FMCG giants such as Hindustan Lever and Tata Coffee will sooner or later venture
into the coffee chain business
In this industry, the tangible differentiators are very few. Its only the intangible as mentioned
above creates a difference.
Concepts like Sensory Branding by Martin Lindstorm work here as coffee chains can cover
the aspect of smell, sight, sound (music inside the store), taste and touch of the furniture
inside.
Page 41
LITERATURE REVIEW -1
STORM IN THE COFFEE CUP
In the late 1990s, a silent cafe revolution was sweeping urban India. Coffee drinking was
increasingly becoming a statement of the young and upwardly mobile Indians. Coffee bars,
an unheard concept till a couple of years ago, had suddenly become big business and coffee
bars like Barista, Cafe Coffee Day (CCD) and Qwiky's had become quite popular.
Though being a late entrant, Barista took elite India by storm. With 105 branches in 18 cities
and annual sales of Rs. 650 million, Barista was clearly the leader in the coffee retailing
business in 2002. What made Barista different from others was the ambience at its outlets.
Barista recreated the ambience and experience of the typical Italian neighborhood espresso
bars in India. The interiors were bright, trendy and comfortable. One could play chess, read
books, listen to music, enjoy the arts, surf the Net and sip an
Espresso Italiano, or Iced Cafe Mocha. CCD, which was started in 1996, had opened 50
outlets in 9 cities by 2002, with annual sales of Rs. 100 million.
CCD also provided a relaxing ambience with eye-catching crockery and bright dcor. The
paintings on the wall were made by young artists, with the objective of promoting young
talent. CCD outlets also promoted their paraphernalia such as caps, T-shirts, and coffee mugs.
With 21 outlets in 5 cities and annual sales of Rs. 43 million in the year 2002, Qwiky's was
also a strong contender in the growing coffee business. It positioned itself as a place to hang
out and spend time leisurely. One could order an Espresso, Cappuccino, Lattes, Mochas,
Panini et al. One could even choose between frothy or intense, icy or piping hot, and aromatic
and exotic coffee. It also had books and magazines outlets and a casual wear under the
Qwiky's brand. Though CCD was the first to enter the coffee retailing business in India, it
failed to leverage on the first mover advantage. By 2002, Barista, which entered the market in
2000, and Qwikys, which entered in 1999, had 105 and 21 branches respectively. CCD had
only 50 branches. According to company sources, the reason for its slow growth was the time
taken to complete the back-end operations of its retail outlets. Analysts felt that Barista and
Qwiky's also experienced similar problems but they grew faster than CCD because they
realized that running cafe is a hospitality business and one needs to create the right ambiance
and experience and back it up with strong logistics.
Page 42
In 2002, competition in the coffee retailing business was beginning to heat up with all the
three players looking for opportunities for growth.
Barista was opening a store every nine days and it also seemed to be better placed than its
competitors due to the strong support of Tata Coffee, which had a 34.3% stake in Barista.
However, analysts felt that it wouldn't be easy for Barista to maintain its leadership position
in future. By 2002, Barista had spent Rs 600 million to establish its chain of 105 stores and in
the process had accumulated losses. Though its operating profit was 17% of the sales, it was
not expected to turn black soon because of its rapid expansion plans. Also as Barista imported
everything from chairs to coffee machines to coffee beans, any depreciation in the value of
the Indian Rupee would make imports costlier and squeeze its margins further.
A NOTE ON THE COFFEE INDUSTRY IN INDIA
India ranks 5th among the top 10 countries of the world accounting for 3 % of the total world
coffee production and exporting 80 % of the total produce.
It is also the fifth largest coffee producer. Being a traditional tea consuming country, the
average coffee consumption in India was quite low at 10 cups per person annually (Refer
Table I). People in the Northern region preferred instant coffee in contrast to the people in the
south, who preferred traditional filter coffee.
Coffee, a household beverage confined to South India became quite popular in the late 1990s.
The late 1990s saw the emergence of coffee chains. Moreover, there was a transition from the
conventional and out dated coffee house to a more sophisticated and trendy coffee bars. In the
late 1990s, non-traditional coffee retailing outlets like coffee bar chains, coffee vending
machines, and specialty coffee powder shops offered exciting growth opportunities. They
constituted 50 % of sales in the Indian Coffee Industry. The growth of these specialty and
gourmet coffee shops was a result of the economic and demographic changes, higher
disposable incomes, increasing number of workingwomen, and increasing awareness and
exposure to global trends.
LITERATURE REVIEW 2
Branded coffee houses a rage in India
Anuradha Shenoy in Mumbai | July 16, 2005
Page 43
Go to any of the mushrooming coffee bars and what do you find? The menu displays not just
a range of coffees, but an ever increasing list of soft drink concoctions and other beverages
mingling with snacks and mini-meals.
Strange? Maybe. With more than 500 coffee cafes in the country, up from 175 in 2002, coffee
was the most happening beverage. And the players, from Barista Coffee Co to Bangalorebased Cafe Coffee Day, were opening outlets practically every weekend.
So far so good. Today, at Barista Coffee Co, coffee sales are much less than its other
offerings.
Sixty per cent of its sales are brewed from teas, smoothies, food items and merchandise. At
Bangalore-headquartered Cafe Coffee Day, 70 per cent of its sales come from beverages
including coffee. At Cafe Mocha, coffee sales are up from 3 per cent three years ago when it
first started to 17 per cent today.
What does all this mean? Coffee sales have not really stirred the storm they were expected to
be. But this has not deterred the coffee cafes from stretching their brands.
Internationally, coffee sales are virtually stagnant, moving ahead at 0.5 per cent. According to
a 2005 research report by the United Nations Food and Agriculture Organization, India's
coffee consumption has been chugging along at 2.2 per cent per annum.
With consumption pegged at 70,000 tones, branded coffee accounts for 53 per cent,
unbranded 40 per cent, with cafes constituting 7 per cent. Industry estimates peg the annual
growth rate of the coffeehouse segment at a half percent clip.
Despite these figures, if coffee houses are extending their network, according to Sunalini
Menon, chief executive of CoffeeLab, which provides evaluative services for coffee
manufacturers, it is because they provide more than just coffee.
"They are a venue to socialise, finalise business deals, conduct interviews, listen to music and
read in," she says.
According to Cafe Mocha's CEO, Dharmesh Karmorkar, call centres have been one of the
growth triggers. "Before the advent of night-time work enterprises, a coffee house's customer
was limited to individuals who worked daytime hours. Now, in addition, we have an entire
group of professionals who work a night-time shift."
There is also the issue of small town individuals moving away from their families to larger
cities for career opportunities that were not present before.
"This individualistic culture promotes the need for a venue to socialise with others of their
age who share their interests," he adds.
Page 44
Barista's COO, Brotin Banerjee relies on the power of the youth and their increasing
disposable income.
"Several Indian students begin working at a very young age, sometimes right after high
school. They have the purchasing power," he says.
That's why with a Rs 20-crore (Rs 200 million) outlay, Barista is hoping to be an international
brand. Plans underway include 35-40 Baristas in Nepal, Malaysia, Indonesia, Turkey, Iran
and Bahrain.
Its strategy will centre around targeting college students in the age range of 16-20 to "catch
them young" and induce "lifetime loyalty". Barista also plans to start "platforms on the go" in
partnership with petroleum companies to cater to consumers travelling between cities.
Its current tally is 122 stores, which include Barista espresso bars, shop-in-shops and corner
stores.
Also, from 230 stores, Cafe Coffee Day's senior general manager Sudipta Sengupta plans to
add an additional 270 stores in the next three years.
"We will incorporate health foods like herb breads, sunflower seeds, multigrain breads and
bran sandwiches. We will also introduce a premium coffee and offer merchandise such as
filters, mugs, and message T-shirts," she says.
In a bid to take coffee to the masses, the new outlets will be in towns, which have a
population of one lakh and above.
While Barista and Cafe Coffee day are targeting mass-based consumption, Cafe Mocha, with
only nine franchise outlets, is focusing on imported coffees and an upmarket clientele.
It wants to push its stores from nine to 65 in the next three years. There are plans to open
franchised stores in Indonesia, Singapore, Sri Lanka and two in the Middle East.
In addition, the chain plans to invest Rs 3 crore (Rs 30 million) in human resource
development and Rs 8 crore (Rs 80 million) on the development of new menu items every
year.
Explains Karmorkar, "We're focusing primarily on knowledge building and management and
the expertise that our chefs and staff bring to the table."
Clearly, despite coffee consumption stagnating, coffee houses are finding it lucrative to add
value activities -- book clubs, film clubs, social activities, merchandise, food -- as the main
plug. Drink to that!
Page 45
LITERATURE REVIEW 3
An Indian sector on the upswing: coffee shops
By M. A. Winter
Date of posting: 13-11-07
The Coffee retailing sector in India is booming today, with several companies active in the
market. Some are local entities, some have come from abroad and have tied up with local
companies, and some seem to prepare themselves for an entry sooner or later. The market
growth is expected to be 20 to 30% annually in the next couple of years. The first foreign
coffee retailer who arrived was Costa Coffee, a chain of coffee shops owned by leisure and
hotel group Whitbread Plc from UK. Costa Coffee, together with the Devjani Group as the
first franchisee, opened the first outlet at Delhis Connaught Place in 2005. Now, two years
later, Costa operates already a total of 34 stores. Besides Delhi, Costa is present in cities like
Mumbai, Agra, Jaipur and Lucknow. The plan is to have 200 stores by the end of 2010, a
spokesperson of Whitbread Plc told FoodIndustryIndia.com. Starbucks Corp from the US is
another well known coffee chain, a big player in many markets around the world. For India,
there were plans to enter the market with a partner. Now it seems that these earlier plans have
been modified. In July, the company has put on hold its earlier plans to enter India by the end
of 2007, without giving a reason. Speculation was on that the government might not have
allowed the joint venture with an Indian partner based in Indonesia on behalf of the foreign
direct investment regulation for single-brand retailing. Now, a few days back, Starbucks has
agreed a multi-country deal with its North-American partner PepsiCo by which PepsiCo
would sell the Starbucks ready-to-drink beverages in international markets, including those
countries that do not have Starbucks outlets, like India. Basically, the agreement provides
Starbucks the option to bring at least a part of its product portfolio very quickly to Indian
retail shelves. Almost in the same time when Starbucks was making and pushing its plans for
India, Lavazza from Italy, in Italian eyes the mother country of all coffee drinkers, rushed
ahead and took over coffee chain Barista and Fresh & Honest for an amount of reportedly Rs
480 crore from Chennai-based Sterling Infotech Group in May this year. Some media
reported that Amalgamated Bean Coffee Trading Ltd (ABCTL), which owns Indias biggest
coffee-cafe chain Cafe Coffee Day, was also interested to buy Barista, but there was no
confirmation. Barista is a major player in the premium sector of the Indian sub-continent,
with 150 cafs in Asia, of which 132 are in India alone. By far the biggest player in the
Page 46
market already is Cafe Coffee Day, a coffee chain which is part of the Amalgamated Bean
company. Run by venture capitalist V. G. Siddhartha, Cafe Coffee Day operates 483 outlets at
present, mainly in India, but also some in Pakistan and two recently opened in Vienna,
Austria. They plan to have a total of over 2,000 outlets over the next four-and-half years, their
CEO has said earlier. Cafe Coffee Day has raised equity capital from Sequoia Capital to
finance its rapid expansion. Media reported an amount of US$ 35 million, and an additional
target amount of US$ 50 million which would be currently sought. ABCTL is executing an
interesting business model, as it is involved in the coffee business right from growing,
processing and selling in different forms and formats like export of green coffee, selling of
packed coffee, and selling of hot coffee in various retail outlets and vending machines.
Page 47
QUESTIONNAIRE
Q1. Which coffee shop you prefer ?
a) CCD
b) BARISTA
PREFERENCE
BARISTA
50%
CCD
50%
Graph 1
The Graph 1 shows which coffee shop the respondents usually preferred to visit. Although
this is not a true indicator of market share, it gives us some idea or the closeness in which
both companies operate. They both received an equal preference in the survey, with 50% of
the respondents choosing Barista and the remaining 50% choosing Caf Coffee Day,
indicating there is no clear winner in terms of actual visits to the outlets.
This can be analysed in relation to the comparative rating respondents give both outlets, to
help us identify which areas both the chains are doing well in, where they need to improve
and where the opportunity for growth exists.
Page 48
Q2) how frequently you visit coffee shop?
FREQUENCY OF VISITTS:-
VISITS
20%
30%
2-3 TIMES A MONTH

2-3 TIMES A WEEK
NOT OFTEN
50%
The Graph -2 indicates how often the respondents visited a coffee shop. Considering the agegroup for the sample, its quite evident that they have enough free time to visit cafs
regularly. Out of those surveyed, 50% said they visited a coffee shop 2-3 times a week, and
30% visited a coffee shop 2-3 times a month. This is great opportunity for Barista and Caf
Coffee Day to attract regulars with loyalty programs
Q3 ) how much you spend in a single visit ?
SPENDING
10%
30%
100-150 RS
150-250 RS
250 & ABOVE
60%
Graph 3
The values of Graph - 3 illustrate how much money the respondents usually spend at
coffee shops. While the majority of respondents spent between Rs. 100 & Rs. 150 on a
Page 49
sinngle visit to an outlet, a high percentage also spent between Rs. 150 & Rs. 250 An
important point to note here however that is a majority of the people who were in the Rs
150 & Rs. 250 bracket were Barista customers.
Q 4 ) What is your visit duration?
length of visits
1/2-1hours
10%
40%
1-2hours
over 2 hours
50%
GRAPH-4
The survey also asked the respondents how much time they would usually spend on a single
visit to a coffee shop. The Graph - 4 shows that half of them would spend between 1 hour and
2 hours, and 40% would spend between hour to 1 hour.
Q5) What is the size of your group ?
Sales
20%
60%
20%
2 PEOPLE
MORE THAN 5
3-5 PEOLE
Page 50
The survey also asked the respondents how much time they would usually spend on a single
visit to a coffee shop. The Graph - 4 shows that half of them would spend between 1 hour and
2 hours, and 40% would spend between hour to 1 hour. people.
This would indicate that they are usually accompanied with common friends, who have
similar tastes, and buying patterns. The remaining 40% either went with only 1 person, or in a
group of more than 5 people
Q6) how you choose the coffee shop ?
DECIDING FACTOR:-
DECIDING FACTOR
AMBIENCE
40%
40%
20%
VALUE FOR MONEY

TASTE OF
COFFEE/FOOD
When asked about the most important factor that contributed to their choice of coffee caf,
an equal number (40%) of respondents selected the taste of coffee/ food and the ambience/
experience. Only 20% of them choose value for money as their most important factor. This
would indicate a clear shift of consumer focus from price factors to service factors.
Q7) What do you normally eat or drink in a Coffee shops ? (You can choose
more than one)
A). Coffee ( )
B). Smoothest and similar drinks ( )
C). Desserts and confectionery ( )
Page 51
D). Eatables like sandwich, Samosas etc. ( )
responses
60
50
40
30
20
10
0
responses
The graph shows that majority of the people who visit the coffee shops are went to have and
enjoy the sip of coffee and the company of their friends.
Q8) Why do you go to a coffee shop?

A). Only to have coffee ( )
B). To enjoy my private time ( )
C). Catch up with friends ( )
D). For group activities (group studies, presentations, meetings) ( )
Page 52
responses
50
45
40
35
30
25
20
15
10
5
0
responses
The graph or the survey shows that most of the people went to catch up with the friend and
after that most of the people are there for the meetings. Some of the people visit the coffee
shops to enjoy their private time and to make them free and relax by the hectic working hours
Q9) Name three coffee shops that you know

A)..
B)..
C)..
responses
50
45
40
35
30
Series 1
25
20
15
10
5
0
CCD
barista
starbucks
Page 53
When I asked about the coffee shops then majority of people took the name of
caf coffee day and then comes barista
this shows that CCD & BARISTA have made their brand value so strong that they
are now ruling the hearts of the peoples
Q10) Do you want any more services that should be provided in CCD than what you got so
far?
a)
b)
c)
d)
More food options

Parking space
Good outdoor sitting space
More couches for sitting
responses
50
45
40
35
30
25
20
15
10
5
0
responses
When asked about the other services to deliver everyone says that they want parking and
good outdoor siting
Page 54
SUGGESTIONS AND RECOMMENDATION

Pricing :
Indian consumers are highly price sensitive. Pricing will play very important role. In order to
sustain the competition it will be very important to have a proper pricing strategy in place.
Over pricing the products would actually limit the scope of target audience. While under
pricing would actually degrade their brand value. In either of the cases there will be a loss for
the company, as they will loose their customers.
Promotion and Advertising :
Promotions have a deep impact on the Indian consumers. The consumers would also increase
their consumption to take the advantage of the promotion schemes. Promotion should be
design properly to keep the target customer interested. The promotion should not degrade the
value of brand. The company also needs to tie up with other companies whose target
audience match with theirs Like CCD with Levis, Barista with Archies etc.
Merchandising:
Indian consumers likes having more choice of before they actually make their selection of
buying. Different type of coffees and food items need to be introduced in order to provide
customers with more choice. Even new flavours of coffee beans should be introduced.
Page 55
Expansion:
Each and every player wants to have a wider expansion in order to have more reached. The
companies should open the outlets only where they find the potential. They should conduct
detail study before taking a decision for opening an outlet. For e.g. CCD follows the strategy
of following the competition. They open the outlet wherever Barista opens it. This has proved
successful. This is a big risk as opening an outlet requires huge investment and it may result
in a huge loss.
CONCLUSION
Taking its inspiration from Italian corner coffee bars and the US coffee chain Starbucks,
Barista and other Indian chains are also trying to educate customers about the virtues and
finer points to coffee drinking.
Consumers are converging; they are thinking alike, they are aspiring for similar products. Tea
drinking nations like Britain and Japan have been converted to coffee drinking, and Indian
consumers are seeking similar lifestyles.
Corner bars like these are offering more than just coffee and snacks to their customers. For
many of their regular patrons, a visit to these bars is also a part of the western lifestyle they so
much want to identify with. However, as tea and coffee battle it out in big city restaurants
and bars, the most significant volume of tea is drunk by villagers in small shacks along
the roadside. As long as these roadside stalls continue to do thriving business, tea will
have a
safe future in India. Indian Market is slowly getting converted into organized market. Many
players would be coming
and would be fighting for their share. As India being a major consumption of hot
beverages,it would be interesting to keep the track of what actually transpires in the
market in the near future.
When both CCD and Barista started business they did face a bit of a difficulty, as the Indian
market had been dominated by tea-drinkers till that time. When such caf were launched,
people had to be educated about the different types of coffee, as no one knew the
Page 56
distinctions between a latte, cappuccino or frappe! So it took time for Indians to develop a
taste for the different flavours.
CCD and Barista are in one business but their strategies are very different. Both are targeting
to different class of audience but they are competing with each other. Barista form very
beginning has target to classes and not masses. It is a premium class brand. But now they are
changing their strategy and they are planning to target masses but still upper class and in
terms of prices they are not at par with CCD.
CCD is a price warrior for Barista. CCD has set up at least half a dozen outlets in Delhi and
Mumbai, right next door to barista and is hoping to lure baristas customers with a cheaper
menu. And may be because of this Barista has suffered huge losses in the year 2002. Among
153 outlets, close to 40 make huge losses and another 10-20 barely break-even. The reason
being, they were growing at a very fast rate. At present their all outlets are owned and they
have now decided to move to a franchising model to cut capital expenditure. If one look at
the pricing
aspect CCD is cheaper and better but if one wants high quality and does not mind
paying little more for that, then Barista is just the right choice.
In India the market is huge and there is space for everyone as long as one is focused on a
particular segment and caters to it. And if one live up to the promises one make, give
good quality coffee at an affordable price and provide excitement to their respective
customers then there is no competition at all!
Page 57
ANNEXURE
Market Survey
Name:
Age:
Profession:
Sex:
Q1) What Coffee Shop do you usually go to?
Barista
Cafe Coffee Day
Others
Q2) How often do you visit a Coffee Shop?
Almost Daily
2-3 times a week
2-3 times a month
Not often
Q3) How much money do you usually spend at a Coffee Shop?

100 Rupees
150-225 Rupees
100-150 Rupees
Over 225 Rupees
Page 58
Q4) How much time do you usually spend at a Coffee Shop?

Less than 1/2 hour
1-2 hours
1/2- 1 hour
Over 2 hours
Q5) How many people do you usually go with?

Alone
With 1 person
2-4 people
More than 4 people
Q6) What is the single most important factor for you to choose a Coffee Shop?
Taste of coffee/food
Value for money
People/ Service
Ambience/Experience
Q7) What do you normally eat or drink in a Coffee shops ? (You can choose
more than one)
A). Coffee ( )
B). Smoothest and similar drinks ( )
C). Desserts and confectionery ( )
D). Eatables like sandwich, Samosas etc. ( )
Q8) Why do you go to a coffee shop?
A). Only to have coffee ( )
B). To enjoy my private time ( )
C). Catch up with friends ( )
Q9) Name three coffee shops that you know
A)..
B)..
C)..
Q10) Do you want any more services that should be provided in CCD than what you got so
far?
a) M
ore food options
b) P
arking space
Page 59
c) G
ood outdoor sitting space
d) M
ore couches for sitting
Bibliography
Books, Newspapers, Magazines:
Philip Kotler, Marketing Management, 11th Edition

Retail Biz
N.Kumar, Marketing Management, 1st Edition
Business Line
Business today
Web sites:
www.retailyatra.com
www.indiainfoline.com
www.cafecoffeeday.com
www.agencyfaqs.com
www.barista.co.in
www.barista.com
www.google.com
Page 60

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Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

OVER VIEW OF THE INDUSTRY

Retail Industry In India

and finance facilities.

Comparative Analysis-Caf Coffee Day and Barista

Rewriting the laws

Comparative Analysis-Caf Coffee Day and Barista

Food & Beverages Market In India

Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

B) About Coffee Day

125 years of coffee growing history

Coffee Day Comprises of the following Sub Brands

Coffee Day - Fresh & Ground

INTRODUCTION-CAF COFFEE DAY

Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

Exotic international coffees e.g.

Reglon Sleeves T-Shirts @ Rs 249

Caf Coffee Day believes in mass marketing.

Comparative Analysis-Caf Coffee Day and Barista

Customer Loyalty Programme:

Smart Card Programme:

Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

CCD jointly organizes large number of promotions

EBD Book Caf:

Himalaya with CCD:

Comparative Analysis-Caf Coffee Day and Barista

Ambience and Surrounding

Comparative Analysis-Caf Coffee Day and Barista

International Coffee Flavours:

Its All In the Mind

Large Number of outlet.

Limited Target Audience.

Large Untapped Market

Entry of Foreign players like Georgia, Starbucks etc.

37% lies in the age group 20 and 24

Comparative Analysis-Caf Coffee Day and Barista

II) Laxmi nagar CCD:

7-9p.m.(Working Crowd & FAMILIES)

Foot fall- around 100-400per day

Comparative Analysis-Caf Coffee Day and Barista

Comprises primarily of youth from the 18-30 yrs age group

Comparative Analysis-Caf Coffee Day and Barista

B) Barista Marketing Mix

Coffee Mugs in Orange and Blue which cost Rs 55 and Rs 99

The French Press

Lacoste with Barista:

CBC Book shop:

Ambience And Surrounding

Comparative Analysis-Caf Coffee Day and Barista

Comparative Analysis-Caf Coffee Day and Barista

Improvement in the Services:

F) Its All In The Mind

Barista, as its a good relaxing place where

Claim to sell the best coffee

Large Untapped Market

Entry of Foreign players like Georgia, Starbucks etc

About the Visit