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