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Shreyas H N (13110)
Nishanth M S (13160)
Hitesh P S (13161)
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Starbucks
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Average coffee consumption per person in India - 100 gms compared to 4.5 kg in US
Super and Hyper markets were growing slowly (20% of coffee sales through volume by 2011)
By 2011, India had 2300 specialist coffee shops of which 95% belonged to Retail Coffee Chains
Organized Coffee market was expected to increase from 230 MN $ in 2013 to 410 MN $ in 2017
2008
1996
2005
2000
2008
2012
2012
First CCD store set up in Bangalore in 1995 with unique facilities - Internet, A/C,
High-end Furnishings
Also operated kiosks in heavily populated area, sold fresh coffee powder through
retail outlets in South India
By 2013, CCD was India's leading coffee chain with 60% market share and revenues
of $200mn USD
It operated 1469 stores, 1000 takeaway outlets, 450 fresh and ground retail outlets
and 22000 vending machines across 200 Indian cities and towns
ET named it one of India's most trusted brands in Food & Beverage segment
Apart from coffee, CCD offered ready to eat items along with the desserts and other
merchandise.
Stayed away from media ads and more concentrated on promotional activities like
rock concerts
Having two curing mills with total capacity of 70000 tons, largest in India
CCD owns caf instead of franchising CCD took 50 days to set up a outlet while
others took more than 90 days
In 2002, launched 60 sq. ft. counter style outlets Railway station, Airport and
Hospitals etc.
In 2010 launched lounge catering to 28-36 age groups in Bangalore- 40-50% bigger
than caf
Coffee Day Square could generate 4-7 times the revenue of a caf
Format
Target
customers
Size
Setup cost
Caf
Under 30
85,000
Lounge
Square
28-36
30+
130,000
190,000
Provided high standard store ambience like place for meetings, phone calls
and work
In 1996, International stores in Japan, China, The UK, Switzerland and other
European markets
Offered as local preference like tea in Japan and China, Turkish coffee in Turkey
and Fresh orange juice in Spain
When it entered it partnered with 3 different companies in Northern, Eastern and southern
China
It opened first in agricultural rich province of Nanchang in 2012, They spoke about coffee
ensuring individuals to be awake the whole day.
Chain
No. of Properties
Taj Hotels
76 Hotels
WestSide
Departmental Stores
74
Over 75 Stores
Croma Electronics
Stores
Initial Revenues in CD was High ($4K) and Average waiting time was stretching to over
half an hour
They did utilize the retail industry grabbing the major headlines.
15-17% employees were poached from CCD but not top management officials
There focus on service, product innovation and new customer segments had expanded the
US market.
Customer service
Service expectation of customers is not met by CCD.
Maintaining the service levels is the challenge for Starbucks.
Real Estate
High real estate prices in India.
CCD has already present in many high street locations.
Starbucks has been chosen as anchor tenants in many prime locations.
In Type B and Type C locations and secondary locations Starbucks may have high operating
costs.
Looking ahead
CCD is well positioned in Indian market and is ready to take on foreign brands.
To take on competition, CCD has to improve the process, offerings and quality.
As of 2013, CCD can wait a bit longer and think about their strategy against their strategy