Post on 08-Apr-2018
8/6/2019 Coffee Parlours in India GÇô Hotting Up
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8/6/2019 Coffee Parlours in India GÇô Hotting Up
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Project Presenters
Saurav Roy
Payel Sengupta Vijay Tewari
Maharshi Sen
Asutosh Gupta
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Basic Outline
A brief Summary
Differentiation and cost leadership are the two generic strategiesthat a company can adapt to create a competitive advantage in amarket. What are the strategies that Barista, CCD and Qwiky·shave adapted? Which strategy do you think is suitable for the
Indian market? Give reason to justify your answer Barista, CCD and Qwiky·s target different segments. What is the
segmentation strategy adapted by the three players? Alsocomment on the potential of the each segment
Starbucks is planning to enter the Indian Coffee retailingmarket. Of the three players discussed in the case, who do you
think is competitively better placed to face competition formStarbucks and maintain their growth?
Do you think that the intense competition in the coffee retailingbusiness is likely to cause consolidation? Explain with reasons
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A Brief Summary
The given case study mainly focuses on three main
players in the Indian coffee market ² Barista, CCD and
Qwiky·s
The Case study focuses on the development of the
Indian coffee market
The case study has made comparisons as to how
Barista, CCD and Qwiky·s are different from each other
Comparisons have also been made regarding their
market strategies adapted by each of the three players The case study has also given us an Idea as regards the
ambience of the three stores and the way they attract
customers
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Contd..
The case study has given us an idea about the rapid
expansion as well as the spread of various coffee outlets all
over India
An overall idea is also obtained as regards the target
audience of the three outlets One also gets to know about the various innovations in the
products of their respective stores and also about the
customers get educated about the products
An overall idea is also obtained as to why customers are
getting attracted towards these coffee outlets It is not only just the ¶coffee factor·, the case study has also
highlighted various other factors that has made these stores
popular such as promoting caps, T-Shirts and Coffee mugs
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Differentiation and cost leadership are the two generic strategies that a company
can adapt to create a competitive advantage in a market. What are the strategies
that Barista, CCD and Qwiky·s have adapted? Which strategy do you think is
suitable for the Indian market? Give reason to justify your answer
Barista, CCD and Qwiky·s have obtained the ¶differentiationstrategy· to gain competitive advantage in the market.
As far as Indian market is concerned, differentiation strategy is best suited to the Indian market. This is because:
Indian market potentially is a very huge market. In order tosurvive in the Indian market, one needs to be different fromothers that can help distinguish from one another in themarket
If the market players are following the same strategy, thereare chances that a saturation point will be created sooner or
later which does not help the ¶development factor· Differentiation is a major factor which is very much essential
in the Indian market. But this differentiation must beaccompanied by creativity as well as innovation which willplay a major role as far as the survival factor is concerned
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Contd..
Differentiation enables market players to have that
¶competitive edge· over their rivals. One should always try to
exploit the weakness of their nearest rivals and on the other
hand also try to convert its weaknesses into strengths
In order to survive in a market, one must have somethingthat distinguishes itself from their rivals. This ¶distinguishing
factor· can be enhanced through differentiation. This will help
the firm to stay one step ahead of their nearest competitors
So, in short, it can be said that for a market like India, the
¶differentiation· strategy should be adapted. One must havethe ability to distinguish itself from the others otherwise it
wont be possible for a firm to survive especially in a Country
like India
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Barista, CCD and Qwiky·s target different segments. What is the
segmentation strategy adapted by the three players? A lso comment on the
potential of the each segment
Barista, CCD and Qwiky·s have differentiated
themselves on the basis of ambience, décor,
service, price, quality and customer relationships Barista have mainly targeted the youth from the
premium sector of the society
CCD has targeted the mass market. CCD perceives
the whole market to be its playground Qwiky·s have targeted the youth in the age group of
18 to 30
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Contd..
The potential of each segment can be highlighted as follows:
Barista have targeted the youth from the premium sector. Itis expected that this sector will be well off as regards incomeand livelihood . This segment will have relatively highpotential as youths are many in numbers and are very enthusiastic and vibrant in nature
CCD has targeted the mass market. In this case, thepotential will be huge as it is trying to cater to the needs of entire gamut of people ranging from lower class people tothe absolute elite class of the society
Qwiky·s have targeted the youth in the age bracket of 18 to30. This age group are found in huge numbers across thecountry and are very much modern in their outlook. They respond very quickly to the changes in the society and havehuge potential within them
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Starbucks is planning to enter the Indian Coffee retailing market. Of the
three players discussed in the case,who do you think is competitively better
placed to f ace competition form Starbucks and maintain their growth?
Of the three players discussed in the case, CCD is better placedto face competition from Starbucks and maintain their growth.This is because:
CCD has targeted the mass market consumer. They haveconsidered the whole Indian market as their playground. Thisstrategy has not been adapted by Barista and Qwiky·s
Hence, Strategically, CCD is better placed than Barista andQwiky·s
Moreover although CCD is unable to keep pace with barista, it isgrowing steadily all over India and have catered to the needs of the entire gamut of people
CCD has also priced its products 20% lower than its
competitors. This strategy has been adapted by CCD in order toattain competitive edge over their nearest rivals
The above mentioned points will help CCD to face competitionform Starbucks and maintain its steady growth in the market
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Do you think that the intense competition in the coffee retailing
business is likely to cause consolidation? Explain with reasons
The case of consolidation seems to be unlikely in thisscenario. This is because:
Each of the three coffee parlours have their own way of functioning. They have different identities, differentambience, different prices, quality and customer relationship
Each of these coffee parlours have their own way of operationand are vying for the top position in the Indian Coffee marketin their own way
Each of these coffee parlours have their own way of looking atthings and the way they go about carrying on their business
Each of these coffee parlours will always have somethingdifferent to offer to the customers
All these above mentioned factors distinguishes one firm fromanother thus putting light on the ¶differentiation· factor
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