Differentiation strategy-Barista v/s CCD

History
‡ CCD opened its first cafe in 1996 on Brigade Road in Bangalore. Has largest cafe retail chains in India with 326 cafes in 65 cities around India. Head Quartered in Bangalore, majority of cafes in Bangalore. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia ‡ Barista traces its roots back to the old coffee houses in Italy. The aroma of fine Barista coffee permeated in over 150 espresso bars across India, Sri Lanka and the Middle East.

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Industrial Feasibility
‡ Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore ISO 9002 certified company. 332 outlets across 70 cities . Each store requires an investment of about Rs 35-50 lakh. A cafe is being opened in Vienna as well. Café Coffee Day is a division of India's largest coffee shops. Coffee Day sources coffee from 5000 acres of coffee estates . The group turnover is expected to be around 3 to 4 billion. ‡ BARISTA COFFEE COMPANY LTD has chalked out a major expansion plan involving an investment of over Rs.25 crores. Barista to launch new concept stores called Barista Crème. The company plans to take the total network to around 170 outlets by the year-end from the present 130. The company plans to set up Barista Crème outlets in Mumbai, Bangalore.

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SWOT Analysis
STRENGTHS :
‡ ‡ ‡ ‡ Key Shareholders- Sterling Group of Companies. Strong brand equity-at reasonable cost . Pioneers of organized coffee retailing .

OPPORTUNITY :
Barista sees a major role being played by it's franchisees

PEST Analysis
Social :
‡ ‡ Meeting place for friends and colleagues. Chicory blend rumour

Market Share
‡ Barista to invest Rs.25 cr: Barista Coffee Company Ltd., a wholly ± owned entity of Sterling Infotech Group.

Mission / Focus
‡ ‡ Increase its outlets by 199 more by investing Rs.18.25 lakh in each outlet. CCD is aiming to create its own "niche market" abroad through merchandising Indian coffee powder, cookies, coffee mugs and curry paste. ‡ ‡ Barista has decided to invest Rs.25 crore during the current year to open 50 more outlets. Focus on Increasing outlets in south India and open outlets in Gulf regions and Bangladesh. Focus on food sales as its beverages have already became popular and increase the menu. Increase its merchandising from 3% to 8%.

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Marketing / Advertising Strategies
‡ If CCD gets a good deal from any other media, it will definitely go in for a marketing deal. But as an advertisement option or as a marketing spend,they are not looking at mass media. Promotions of CCD through campaigns like Levi's, Liril ,TVS Scooty ,SugarFree,Channel V- Get Gorgeous Hunt, Himalaya Honey, Movie Tie-Ups. Barista Coffee Company announced the launch of the µABN AMRO Barista Credit ¶

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Positioning
‡ CCD positions itself amongst the youth and young at heart.

Competition
‡ The café is a meeting place for 1529 year olds, both male and female belonging to middle or upper middle class.More of the population being of females.Young or young at heart is its T.G
The competition evaluates participants on three counts ² ability to make espresso, a strong black coffee; make cappuccino, with milk and cream mixed in the right proportion; and innovation, ability to make a new drink and present it.

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Recommendations

Conclusion

Group Members
‡ ‡ ‡ ‡ ‡ Priyanka Benegal Gunjan Thakker Sapna Nayak Archana Peswani Purvashree 03 80 43 68

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