MARKETING PROJECT

COFFEE 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 PLACE
 Beverages  Cater to their target market with
strategically located outlets
 Food
 Outlets generally located at High
 Health Zone Street/ Family Entertainment
Centres - in and around Malls,
 Merchandise 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 PLACE
 Food  To place a cafe in every possible
location where some business
 Beverages can be generated

 Merchandise products
Marketing Mix

PRICING PROMOTION
 Priced between Rs50 – Rs80  Ticket sales

 Reasonable pricing considering  Cross branding – tie ups

their target group in mind. TG
falls between 15-30years  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 PLACE
 Beverages – hot coffee, cold  The perfect locations in terms of
coffee exposure, accessibility and
competitive edge have been
 Food – snacks acquired

 Alcoholic Drinks – wine, beer  Metros, Tier I cities

 Merchandized products
Marketing Mix

PRICING PROMOTION
 The prices of all the products are  Low key promotion strategy
comparatively higher at but this
is offset by the outstanding  Word of mouth
quality and discerning tastes at
Costa  Advertisements in major
newspapers
 One of the reasons for choosing
the privileged and higher middle
classes in the target market is the
 Billboards
prices
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 PLACE
 Arabica coffee  Spread across the nation
 flavored thick shakes
 located at places accessible to
 supper varieties the customer base of this
premium brand
 snacks
 beverages
 desserts
 sheeshas
Marketing Mix

PRICING PROMOTION
 Comparatively expensive  Word of mouth

 Marked almost 15-20% above  Social media

the competitors
 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