TATA STARBUCKS KIOSK BUSINESS PLAN

By –Prerna Jha D 49Batch 2013-15SIMS

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WORLD INDIA

• Over 2.25 billion cups of coffee are consumed in the world

• Current domestic market stands at an estimated Rs 1,100 crore

• Around $20 billion market worldwide • More than 1,200 cafes have sprung up across India in the past decade

• Top five coffee drinkers are : (per cup)1. Finland2. Germany3. France4. Italians5. Americans

• Market ShareBranded Coffee – 53%Unbranded Coffee - 40%Cafes’ - 7%

• 17% of the total coffee consumption is from USA

• Café’ market is expected to grow threefold to Rs. 5,600 Crore by 2017

Generic View of the Coffee Kiosk Market

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CCD BARISTA COSTA COFFEE

STARBUCKS

No. of outlets 213 140 106 9

Product Grows the coffee it servesand also provides added food and beverages.

Italian Coffee Coffee from around the world

High quality Arabica Coffee

Place All Metros and Tier I and II cities.

All Metros and Tier I and II cities.

All Metrosand Tier I cities.

Only Metros

Pricing Right value for money

Skim pricing policy: higher to lower

Medium priced

High prices

Promotion “A lot can happen over a coffee”

“An authentic Italian Coffee DrinkingExperience”

“We make it better”

“The best coffee for the best YOU’

Comparative Analysis

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Plan to open 6 outlets in Pune within a span of 2

months

Target Market will be the large number of college students coming to Pune from different parts of the country

Develop a Tie-up with Symbiosis International University to open a kiosk in all Symbiosis colleges and with major corporate offices

Diversify in terms of products available by providing other food and beverages along within coffee

Lower the price according to the target market

Business Overview and Strategy

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Total Budget Rs. 3,00,000 per kiosk (in colleges)Rs. 4,50,000 per kiosk (in public spaces)

Rent Rs. 8, 000 per month (in colleges)Rs. 15,000 per month (in public spaces)

Formation Expenses (includingmachinery cost)

Rs. 50,000

Operating Expenses (daily expenditure) Rs. 30,000

Salaries and Wages Rs. 72,000

Storage Facility Rs. 20,000

Total estimated expenditure Rs. 2,68,000 per kiosk (in colleges)Rs. 3,42,000 per kiosk (in public spaces)

Financial Feasibility

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Strengths• Brand Visibility• Ethical and Environmental

Practices• Marketing Skills• Access to High Quality Arabica

Coffee• JV with Tata Coffee

Weaknesses :• Image of luxury brand outlet• Premium pricing policies• Coffee dominant business• Rigid standards and policies at

outlets

Opportunities :• India : a huge market• Increasing Spending power• Young Population• Out of home coffee drinking culture

is catching• Favorable Cost of Labour

Threats :• Tea Drinking Area• Competition from Homegrown

Brands• Health Consciousness• Rising prices of coffee• Climatic Conditions of Pune

SWOT Analysis

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