COFFEE WARS IN INDIA
CAFE COFEE DAY TAKES ON THE GLOBAL BRAND
GROUP B ASSIGNMENT 2
Anupriya
Arindham Sinha
Ashok Saikia
Dakshesh Patel
Dev Agrawal
Juhi Gandhi
Preet Kuriya
TIMELINE - COFFEE DAY COMPANY
Founder: V.G. SIDDHARTHA (1959 – 2019)
Amalgamated Bean
Coffee Trading Company
Limited (ABC) Launch of the café
business
1994
1993 2013
Market leader with 1,469
Started acquiring
Café & $200 mil revenue.
coffee plantation &
One of the largest
Processing units
exporters of coffee 18
International outlets
Indian Coffee Market
COMPETITIO IMPORT/EXPO
CONSUMER MENU
N RT
Barista
Indian Indian Industry Indian coffee
Lavazza, Costa
Students, focuses its chains were
Coffee, Mocha
Young Adults marketing effort customizing
Coffee, Coffee
& on export their menus to
Bean & Tea
Professionals promotion suit regional
Leaf etc.
tastes
Food Service (cafes) Instant Coffee (retail) Specility Coffee (fresh coffee & beans)
CCD SWOT Analysis
• Lack of individual attention to
• First mover advantage
loyal customers
• Excellent brand name and visibility
• Unavailability of fresh food
• Quality, service and taste
• Market penetration of coffee
• Youth oriented brand
bars is 5%
• Reduction in cost
S W
O T
• Fastest growing industries in Asia • Competition with Barista,
• Merchandising Mochas, Gloria Jeans, Costa
Coffee & Starbucks
• Tie ups with other companies for promotion
• Presence of other ‘Hangout’
• Tapping smaller market
locations
• Cheaper varieties of coffee • Unorganized market
• Dependent on government
commodity rates
Coffee Day`s Marketing
Strategy
Targeting Product Price Promotion
• Coffee
• Youth • Low price • Youth focused
• Food
• 15-36 yo activities
• Merchandising
• Middle & upper • Brands, Movies
• Exporting
middle classes & Print media
coffee
Tie-up
Physical
Place People Process Evidence
• India:200+ • Hospitality • Bright Red
• Service
cities • Positive & Logo
• Self-service
• Overseas: 18 Polite • Trendy
• Take away
outlets Décor/Atmosph
• Urban areas ere
STARBUKS
CHINA VS INDIA
Entry Year: 1999
Partnered with three local brands Starbucks India
High end, Status symbol Entry Date : 2012
Standardized shops (Fuzhou exception) Joint Venture with Tata Global
Successful Entry , Long run success High end, Global
Localized Shops (local craftsmen)
Starbucks China
Successful entry, but future not
guaranteed
Starbucks SWOT
Analysis
• Starbucks is recognized for its high
• Establish brand name coupled with the
prices
trustworthiness of TATA
• Considered a place for elite class to
• No.2 in the market
hangout
• Perception of Higher quality products
• Lack of presence in non-metro cities
• Youth oriented brand
• Relatively small product breadth
• Great customer service
• Slower service
• Reduction in cost
• Large coffee range
S W
O T
• Emerging markets from India, Asia & • Global Policy Conflicts
China • Presence of other ‘Hangout’ locations
• Interest in Western Brands in Indian • Largely unorganized market
minds • Established competitions
• Targeting rapidly growing Indian urban
youth
• Well defined plan to expand in the next 5
years
Starbucks Marketing Strategy
Product Price Place Promotion
• Coffee • Premium price • Airports, malls, • Advertising
• Fresh Food Items for premium well knows • Personal selling
• Handcrafted product places • Sales
Beverages • Higher income promotions
• Starbucks Ice group location • Branding in
Cream Films & media
• Merchandise
CCD STARBUKS
VS
Rs. 66 for one small Cappuccino Rs. 95 for one small Cappuccino
Affordable Price Pricing Overpriced
1469 stores all over India No. of Stores 11 stores all over India
Revenue Starbucks was generating
CCD is generating $2000/day at their
best locations generation $2000-$4000/day
Mostly teenagers and college Age group Mostly working professionals
students under 25 above 25
Customer On par if not higher than
Not up-to expectation
Service 5-star hotels
Acquired high-street location early Real Estate In easy expansion stage
STP Analysis CCD Vs STARBUCKS
CAFÉ COFFEE DAY STARBUCKS
Segmentation
CCD has its main consumer base in the age Starbucks has its main consumer base in the
group of 20-50 years. age group of 25-40 years.
Targeting
Middle class and upper middle class youth Seeks to target is from middle to high income
Seeks to target not just the youth but anyone office workers with a desire to purchase
who is “young at heart” premium products.
Medium Price band Location convenience
Positioning
CCD Positions itself to fill the gap between a Starbucks positioned themselves as a perfect
local store and a 5 star hotel and it can be and little expensive coffee shop that will offer
affordable by young people who just want to customers delicious and rich coffee.
hangout from the nearby areas.
79%
59%
Premium
High
Multiple
Premium
Aspirational
Average
Affordable
Average
Low
Single format
CCD COURSE OF ACION
SLIGHT COURSE OF ACTION AGGRESSIVE ACTION
Increase breadth of menu Raise no. of Squares and Lounges to 25%-
30%
Upgrade interiors
Improve quality of food & beverage
CCD Upgrading 200-300 stores per
offerings and service level
COURSE OF year
Might spend $3 million on
ACTION
advertising to build it brand
Double or triple on brand spending
Upgrade 150 stores a year
ACTION PLAN
1 Keep the cost leadership untouched
2
Enhance the staff recruitment process
3
Upgrade in-house training & development programme
4
Improve food and beverages range and quality
5 Improve the café interiors and overall ambiance
6
Spend more on promotion to strengthen CCD brand
THANK YOU
