NAME: AANCHAL GUPTA

DIVISION: D

ROLL NUMBER: 01

BATCH: 2013-15

TATA Starbucks- Kiosk Plan for Pune

GENERIC VIEW OF COFFEE KIOSK MARKET National International

Coffee production Amounts to 6% of world coffee production (5th largest coffee producer in the world)*

Brazil amounts to a third of world’s coffee production, being the largest coffee producer

Other Market players Cafe Coffee Day, Barista Lavazza, Gloria Jeans, Di Bella, Costa coffee

Tim Hortons (Canada), Caribou coffee (USA), Dunkin’ donuts (USA), Second Cup (Canada)

Coffee consumption(2013-14)

72,000 tonnes * Finland consumes the maximum coffee in the world.

Reason for growth in coffee culture Low cost benefits, Low investment for coffee kiosks

Target Market Segment The mobile individuals who have more money than time, and have excellent choice in taste of beverage but no time to linger on in the café.

1

Characteristics Starbucks Café Day Express (CDX)

Costa Coffee Barista Lavazza

Geographic Region

City

Area

All over India

Metro cities and Tier I cities

Urban

All over India

Metro cities, Tier I & Tier II cities

Urban, Semi-Urban

All over India

Metro cities

Urban

All over India

Metro cities, Tier I cities

Urban, Semi-urban

Demographic Age

Family size

Income

24 to 60+ years

Single, Married

Rs 40,000 per month and above

16 to 34 years

Single, Married

Rs 20,000 per month and above

18 to 49 years

Single, Married

Rs 40,000 per month and above

18 to 49 years

Single, Married

Rs 40,000 per month and above

COMPARATIVE ANALYSIS OF MARKET SEGMENTATION OF COFFEE KIOSKS IN INDIA

2

Characteristics Starbucks Café Day Express (CDX)

Costa Coffee Barista Lavazza

Psychographic Socio-economic

Lifestyle

Upper middle class

Employees of corporate houses, Busy office goers, coffee lovers, coffee addicts

Middle class

College students, B-school students, Busy office goers, coffee lovers, coffee addicts

Upper middle class, Middle class

Frequent shoppers at malls, frequent flyers at airports, coffee lovers

Middle class

Frequent shoppers at malls, frequent flyers at airports, coffee lovers

Behavioral Occasions

Benefits

Loyalty

Attitude

Regular

Quick service, qualityStrong

Positive

Regular

Quick service, economyStrong

Positive

Regular

Quick service, speed, qualityMedium

Positive

Regular

Quick service, speed, quality

Positive

COMPARATIVE ANALYSIS OF MARKET SEGMENTATION OF COFFEE KIOSKS IN INDIA

3

BUSINESS OVERVIEW & STRATEGY

Business Overview

Proposed Project TATA Starbucks kiosk in Pune

Proposed Location Magarpatta City, Hadapsur, Pune.

Positioning For mobile people whose time is at premium but desire a refreshing, high quality beverage or baked item while community from work

Financial Plan Initial Investment: Rs 5,00,000 to set up a kioskForecasted revenue: Rs 5000 per day or Rs 1,50,00 per monthBreak-Even can be achieved in about 3.5 months

Strategy• Located at the most logical and accessible locations to penetrate the commuter and the captive consumer markets by providing quick service facilities.•Designed to handle a huge crowd during the morning and evening rush and also during tea breaks at corporate offices.• Providing quality products in easy-to-carry packaging.

Detailed: BUSINESS OVERVIEW & STRATEGY OF TATA STARBUCKS KIOSK IN PUNE

4

CONCLUSION

After analyzing the coffee kiosk market in India andaround the world, comparing the market segments ofdifferent coffee kiosks in India and preparing a businessoverview for the same, I conclude that:• TATA Starbucks should open its first coffee kisok in Pune atMagarpatta city • in one of the corporate houses • as the revenue generation will be high • leading the company to break even in the first few months and thereby • earningprofits.

5

THANK YOU

BUSINESS OVERVIEW & STRATEGY OF TATA STARBUCKS KIOSK IN PUNE

Business Name TATA Starbuckswww.starbucks.in

Profile

Tata Starbucks is a 50:50 joint venture company, between Starbucks Corporation and Tata Global beverages. The outlets are branded as Starbucks "A Tata Alliance".Current Locations: Mumbai & Delhi. It operates 15 outlets these two cities. The first outlet opened at Horniman Circle in Mumbai end of October 2012.Products: Various varieties of coffee from all over the world and food items include Tandoori Paneer Roll, Elaichi Mawa Croissant, Murg Tikka Panini and Chai Tea Latte to the suit Indian taste. It provides Free Wi-Fi in all its outlets.

Proposed Project TATA Starbucks Kiosk in Pune

Proposed Location

Magarpatta City, Hadapsar, PuneIt is a city within a city having commercial zone, residential neighborhoods, school, hospital, shopping malls, hotels, restaurants and recreation places.

BACK

Cont..a

BUSINESS OVERVIEW & STRATEGY OF TATA STARBUCKS KIOSK IN PUNE

Market Analysis

Market segments:Commuters, Working professionals, Captive customersTarget Market:Mobile individuals have more money than time, and an excellent taste in the choice of beverage, but no time to linger in the café.Market needs:Pune is a very mobile city with many working professionals and students who have very busy schedules, a desire for quality and disposable income. As much as they would like to sit and sip a coffee and grab a mini-meal, they do not have the time for it. However they still desire for uniquely blended beverage as they hurry in their busy life.Industry Analysis:The coffee industry has grown tremendously in Pune and all over India over the past 5 years. Leading players enjoy a favorable atmosphere; also the shift towards coffee amongst the youth also provides a window of opportunity.Main competitor:Café Day Express (CDX)Other competitors: Barista Costa coffee local cafes & drive-thru cafes

Cont..BACK

b

BUSINESS OVERVIEW & STRATEGY OF TATA STARBUCKS KIOSK IN PUNE

Financial Plan Initial Investment: Rs 5,00,000 to set up a kioskForecasted revenue: Rs 5000 per day or Rs 1,50,00 per monthBreak-Even can be achieved in about 3.5 months

Strategy Located at the most logical and accessible locations. Designed to handle a huge crowd during the morning and evening rush

and also during tea breaks at corporate offices. Providing quality products in easy-to-carry packaging.

Value Proposition

The substantial value proposition is that the customer finds the kiosk within two minutes from his work station and does not waste any time before and after placing the order. The basic idea being that he/she can pick up his coffee and snack and rush to continue his work.

Future Plans After successful opening of a kiosk in Magarpatta city, at least 3 more kiosks and one outlet to be opened in Magarpatta city itself to cater to wide range of customers in the next six months.

CONCLUSION

c