Coffee chains in India
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Transcript of Coffee chains in India
MARKETING PROJECTCOFFEE RETAIL CHAINS
Beverage Industry
The total beverage industry in India was being estimated to grow at 17% by 2011
Total beverage consumption will grow at 9% over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage will see a spurt of 9.6% and 8.8% respectively.
Growing health consciousness among India’s young population has brought about a revolution in the Indian non-alcoholic drinks market.
More than 500 coffee cafes in the country, up from 175 in 2002
Evolution of coffee shops in India Shift from tea consumption to coffee
Change attributed to demographic, economical & cultural changes
Coffee shops give a westernized and youth appeal
More than 1200 cafes exist across the nation
Average growth at 40%
Most organized retailed segments with the turnover of Rs. 1000 crores
Efforts being made to reach out to the masses by penetration strategy
Evolution of coffee shops in India
Key players• Barista• Café coffee day• Costa Coffee• Café Mocha
Prospective players• Starbuck• UK’s Coffee Republic• Malta’s Cafe Jubilee• Australia’s Coffee Club Group
BARISTA
Company's Profile
Barista coffee was established in 2000
Barista exists in over 22 cities, and operates over 140 outlets nationally.
In the last 2 years, Barista has opened over 100 outlets in the country and with a new outlet opening nationally every 14 dates
In 2001, the TATA group had purchased 34.3% of share in Barista. Early in 2005, TATA Coffee Ltd sold its stake in Barista. Barista has since been acquired by the Sterling Infotech Group.
Strategies
Lifestyle brand with Italian neighbourhood
Brew masters from Italy to create blend
Alliance with Tata
Make customer’s occasional indulgence into a habit
Store-in-store concept with specific themes
Branded merchandising
Home brew segment – fresh coffee
Core Competencies
Effective supply-chain management
Quality of coffee beans and technology involved in making coffee Usage of top-grade Arabica Beans Brew-masters from Italy to create blends Best Italian Machines for brewing
Employee management
Marketing Mix
PRODUCT
Beverages
Food
Health Zone
Merchandise
PLACE
Cater to their target market with strategically located outlets
Outlets generally located at High Street/ Family Entertainment Centres - in and around Malls, Cinemas, Colleges, and Offices etc.
Marketing Mix
PRICING
Barista has a ‘Skim Pricing Policy’
Currently, their prices are the lowest they have ever been
Ensures that consumers think they are getting high quality products/ service
PROMOTION
Rely more on sponsorships and strategic alliances with other corporations
Advertise in industry journals, on the Internet, and on our website
Attend/sponsor exhibitions and trade shows; Continual PR: press write-ups; personal interviews; testimonials; product trials
CAFÉ COFFEE DAY
Company's Profile
Division of India’s largest coffee conglomerate, the
Amalgamated Bean Coffee Trading Company Limited (ABCTCL)
Café Coffee Day (CCD) pioneered the café concept in India in
1996 by opening its first café at Brigade Road in Bangalore
Mission: “To be the best Cafe chain by offering a world class
coffee experience at affordable prices”
Divisions : Coffee Day Fresh ‘n Ground; Coffee Day Xpress;
Coffee Day Take Away; Coffee Day Exports; Coffee Day Perfect
Strategies
CCD’s wide network – the anytime, anywhere café
Lower pricing and ‘no-segmentation’ approach
Positioned itself as a mass market brand
Marketing Mix
PRODUCT
Food
Beverages
Merchandise products
PLACE
To place a cafe in every possible location where some business can be generated
Marketing Mix
PRICING
Priced between Rs50 – Rs80
Reasonable pricing considering their target group in mind. TG falls between 15-30years
PROMOTION
Ticket sales
Cross branding – tie ups
Movie tie ups (In line advertising)
Through Television
Sales promotion
COSTA
Company's Profile
Costa Coffee, launched its outlet in New Delhi, India in a franchisee agreement with Devyani International in 2005
At present, Costa has 40 outlets operational across India
Costa Coffee also plans to enter the wholesale coffee business in India and aims to open 300 outlets
Costa Coffee is expected to face stiff competition from domestic players like Cafe Coffee Day and Barista, who are embarking on a rapid expansion plan across the country and also from foreign players like Starbucks
Strategies Closing unprofitable locations & segmenting strategy for
different locations
Changing the look and feel of outlets & customizing the menu to better suit the Indian palate
Expanding only in metros
Penetrating more in the south
Setting up kiosks in marriages, and seminars
Balancing traditional international coffee and light snack offerings with a more robust food menu, along with wine and beer
Core Competencies
Establishment of local management and employees.
Franchise policy
Marketing Mix
PRODUCT
Beverages – hot coffee, cold coffee
Food – snacks
Alcoholic Drinks – wine, beer
Merchandized products
PLACE
The perfect locations in terms of exposure, accessibility and competitive edge have been acquired
Metros, Tier I cities
Marketing Mix
PRICING
The prices of all the products are comparatively higher at but this is offset by the outstanding quality and discerning tastes at Costa
One of the reasons for choosing the privileged and higher middle classes in the target market is the prices
PROMOTION
Low key promotion strategy
Word of mouth
Advertisements in major newspapers
Billboards
MOCHA
Company's Profile
Started in 2001 at Mumbai, Mocha displayed a electric Indo-tibetan worldly theme & fresh worldly coffee
Ambience inspired by the Quahveh Khannehs of Morocco and Turkey
Currently holds 20 outlets across the country
Strategies
Differentiation through ambience and offerings
Gradual increase in number of outlets
Grow as a place to savor coffee and ambience and not as a commodity coffee retail
Leveraging on strengths rather than working on weaknesses
Core Competencies
Product differentiation
Positioned and perceived as a premium brand
Better quality
Ambience and layout
Marketing Mix
PRODUCT Arabica coffee
flavored thick shakes
supper varieties
snacks
beverages
desserts
sheeshas
PLACE
Spread across the nation
located at places accessible to the customer base of this premium brand
Marketing Mix
PRICING
Comparatively expensive
Marked almost 15-20% above the competitors
PROMOTION
Word of mouth
Social media
café mocha communities- Mocha Bike club, Mocha film club etc.
Events & music concerts.
sales promotion strategies
GROUP MEMBERS
Swathi Ravichandran
Suruchi Sapru
Shraddha Ganwani
Rashida Kachwala
Ramya Nagesh
Pragya Gupta