Coffee-

Coffee-story
• Previously only a South-Indian drink

• Confined to the Rich Brahmin class

• Places for lawyers and educated class to hold

discussions

• The drink has now become more of a concept

Coffee-
Coffee-story
• Café bars have flocked like CCD, Barista,
Mocha, Qwiky’s etc

• Became famous and even 5 star hotels started

cashing on it.

• Coffee houses started emerging at various places

in the country
Coffee Café Industry
• Individual Café

• Hotel Café

• Retail Café Chains

Global Coffee Giants Eye
India
• Market expansion on a faster rate

• Urbanization is expanding

• Coffee drinking – fashion

• Growth in the disposable income

Marketing Scenario
Marketing Situation
• 6% annual growth rate in the past 6 years in the
coffee industry
*Source: Coffee Board of India

• India ranks 5th largest coffee producers

• 3 % of the world coffee production

• Export 80 % of the total produce.

Marketing Situation
• niche coffee retail format is growing at 10 to 12
per cent a year.

• Organized coffee retail business – Rs 2.5 bn

• coffee consumption in India has increased from

55,000 tonnes to 75,000 tonnes in the last three
years
Barista – Corporate
Profile
• Established in 1999

• Spotted immense potential growth in café palours

• Exists in 22 cities and operates over 140 outlets

nationally
Barista – Corporate Profile
• Has opened 100 outlets countrywide over last
2 yrs
• Marked its presence in Sri Lanka and Dubai
too
• Now targeting 22 international outlets
including Bangladesh, Bahrain, Qatar,
Oman and Kuwait
 Product Life Cycle
Maturity
Sales Decline
Product,
Sales, Profit Growth

Intro
Growth

LOSS Break Even Point Time

 Marketing Mix
• Product
– Coffee & Tea (Flavours)
– Smoothies
– Sandwiches
– Desserts
– Croissants
• Quality Check
– Every 14 days
– Incorporates TQM at its headquarters
• Merchandise
• Primarily, appeals to traditional coffee lovers
 Marketing Mix
• Pricing
– 10% higher than Competitors
– Prices are lowest they have ever been
– High COGS because of Import duties

• Process
– Self Service

• Positioning
– Where the world meets
 Marketing Mix
• People
– Well trained employees – to be polite pleasant and
positive
– Consistent service at every outlet
– Average age – 22yrs
– Ensure to have quiet, uninterrupted visit
– Uniforms are in sober shades of brown and orange

• Promotion
– Sales Promotion
 Marketing Mix
• Physical Evidence
– Logo, colours and images
– Décor and architecture
– Literature

• Place
– Outlets located in strategic locations
– Generally located at High Street/Family
entertainment centers', in and around malls and
cinemas and offices
“I may be young, But
please take me
Seriously”
• Youth – between 15-35 yrs
• Students form a majority of customer base
• Likes to be in group
• Likes to sit, talk and relax
• Drinks a cup of Gourmet coffee with added
flavours
• Prefers snacks rather than meals
 SWOT
• Strength
– Strong Brand Image
– Excellent Human Resource
– Ambience and décor
– Strong base for expansion and growth

• Weakness
– Average Taste and Quality of Products
– Perceived as an expensive brand
– Inconvenient delivery process
 SWOT
• Opportunities
– Strong brand recall
– Presence of huge number of outlets
– Pricing

• Threats
– Coffee substitute
– Rise in the cost of coffee and dairy products
– Competition from national and international players
 Problem
• Clutter – difficult to differentiate between different
brands
• Lack of loyalty among customers
– “I go to CCD when I want to have decent savouries & enjoy
cold frappes and chill out with friends”
- Dhiral Parmar

– “ I go to Barista when I want to enjoy the rich flavoured

coffee and the tempting desserts”
- Ankesh Bansal

– “CCD and Mocha are more cozy while Barista has this
formal atmosphere”
- Mitali Patel
 Objective
• 1 year strategy

–Increase the footfalls by 30%

 Strategy
• Repositioning
– Position Barista as a niche coffee bar for the
professionals

• Promotions
– Events adelicious
– Co-sponsor a program on CNBC TV 18 like All
About Ads
– Experiential Marketing
Adelicious
Marketing Strategy
coffee with your bread n butter!!
Adverti
sing
Situation
Problem
Objective
Strategy
Situation FCB Model

High Involvement

Café Mocha

Barista

Rational Emotional

CCD

Georgia Coffee
Qwiky’s

Low Involvement
Perceptual Mapping
High Price

Café Mocha

Casual Ambience Formal Ambience

Barista

CCD

Low Price
Perceptual Mapping High Price

Café Mocha

Rich Quality Poor Quality

Barista

CCD

Low Price
 Brand Image
• Brand for anyone who loves coffee

• Where the World meets

• Appeal to anyone in the 14-60 age group that

loves good coffee and looks for a nice quiet time

 BRAND IDENTITY PRISM: THE JNK MODEL
SENDER

Italian , Vibrant, Young ,

Sophisticated,
casual
Physique Personality

EXTERNALISATION
Relationship Culture INTERNALISATION
Music lovers
hangout, Guitar-
Guitar- Friendly, non-
non-intrusive
BARISTA
the symbol of
Music

Reflection Self-Image

Sophisticated, For the upward class,

calm wanting to have casual
environment, environment to chat

RECEIVER
Advertising Situation
• Current Promotions
– Press, TV and radio

– Rely more on sponsorships and strategic alliances

(Major events with colleges)

– Collaborations – Leo Mattel toys (Scrabble)

– Strategic tie-ups – Star Group, Elle 18

Advertising Situation
• Competitors Promotions
– Café Citizen Card
– Association with movies
– Contests with brands like levis, Airtel Friends, Pep
Scooty, etc
– Event Ticket sales like Enrique, Bran Adams, Elton
John
• Advertising Problems
– Limited Budget
– Clutter

• Objectives
– Change the confused current image of Youth
appealing Cafes to Corporate Cafes
 Strategy
• Media – 1 year
– Print – All India Newspapers and Magazines –

2 cr

– Outdoors – 1 cr

– Tent cards, danglers and posters within the outlets –

5 lacs

– Internet – Barista Community & Barista Blog

Creative Strategy
 Hope you Enjoyed!!

Black as devil,
Hot as hell,
Pure as the angel
Sweet as Love,
… that’s how I like my
coffee!!