Differentiation strategy-Barista v/s CCD

History

• CCD opened its first cafe in 1996 on Brigade Road in Bangalore.

• Has largest cafe retail chains in India with 326 cafes in 65 cities around India.

• Head Quartered in Bangalore, majority of cafes in Bangalore.

• Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia

• Barista traces its roots back to the old coffee houses in Italy.

• The aroma of fine Barista coffee permeated in over 150 espresso bars across India, Sri Lanka and the Middle East.

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Industrial Feasibility

• Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore ISO 9002 certified company.

• 332 outlets across 70 cities .

• Each store requires an investment of about Rs 35-50 lakh.

• A cafe is being opened in Vienna as well.

• Café Coffee Day is a division of India's largest coffee shops.

• Coffee Day sources coffee from 5000 acres of coffee estates .

• The group turnover is expected to be around 3 to 4 billion.

• BARISTA COFFEE COMPANY LTD has chalked out a major expansion plan involving an investment of over Rs.25 crores.

• Barista to launch new concept stores called Barista Crème.

• The company plans to take the total network to around 170 outlets by the year-end from the present 130.

• The company plans to set up Barista Crème outlets in Mumbai, Bangalore.

SWOT AnalysisSTRENGTHS :

• Key Shareholders- Sterling Group of Companies.

• Strong brand equity-at reasonable cost .• Pioneers of organized coffee retailing .

OPPORTUNITY :• Barista sees a major role being played by it's

franchisees

PEST AnalysisSocial :

• Meeting place for friends and colleagues.

• Chicory blend rumour

Market Share• Barista to invest Rs.25 cr: Barista Coffee

Company Ltd., a wholly – owned entity of Sterling Infotech Group.

Mission / Focus

• Increase its outlets by 199 more by investing Rs.18.25 lakh in each outlet.

• CCD is aiming to create its own "niche market" abroad through merchandising Indian coffee powder, cookies, coffee mugs and curry paste.

• Barista has decided to invest Rs.25 crore during the current year to open 50 more outlets.

• Focus on Increasing outlets in south India and open outlets in Gulf regions and Bangladesh.

• Focus on food sales as its beverages have already became popular and increase the menu.

• Increase its merchandising from 3% to 8%.

Marketing / Advertising Strategies

• If CCD gets a good deal from any other media, it will definitely go in for a marketing deal. But as an advertisement option or as a marketing spend,they are not looking at mass media.

• Promotions of CCD through campaigns like Levi's, Liril ,TVS Scooty ,SugarFree,Channel V- Get Gorgeous Hunt, Himalaya Honey, Movie Tie-Ups.

• Barista Coffee Company announced the launch of the ‘ABN AMRO Barista Credit ’

Positioning

• CCD positions itself amongst the youth and young at heart.

Competition• The café is a meeting place for 15-

29 year olds, both male and female belonging to middle or upper middle class.More of the population being of females.Young or young at heart is its T.G

• The competition evaluates participants on three counts — ability to make espresso, a strong black coffee; make cappuccino, with milk and cream mixed in the right proportion; and innovation, ability to make a new drink and present it.

Recommendations

Conclusion

Group Members

• Priyanka Benegal 03

• Gunjan Thakker 80

• Sapna Nayak 43

• Archana Peswani 68

• Purvashree