Coffee parlor case analysis

Done by: Ketaki 121202008

A1: In the above case the two main generic strategies were differentiation and cost leadership, companies like Barista, CCD and Qwikys adopted various strategies to beat the competition. Barista aimed mainly on the ambience and hospitality as customers not only wished to have good coffee but also wished to have a comfortable ambience to be in. It retail units gave the feel of an Italian neighborhood which was bright and lively, mainly aiming at the youth, the dcor was bright lively with music and very friendly and informal service where the work team were friendly and had designations like brew Masters which also boosted their moral. The logo and the dcor was in bright orange color being very catchy and was easy to grab the attention of the individuals. Barista gave its customers the freedom to spend as much time they wanted in the coffee shop and allowed them to conduct meetings, play board games or even chill out with friends. It also used the strategy of opening one outlet every 10 days so as to it can capture the market as fast as possible as compared to other competitors, they also had merchandises under their brand name like T-shirts, mugs, caps etc. they also decided to expand by getting into an alliance with TATA coffee. They opened expresses in various outlets and had a tie up with the bank ABN- amro and in movie theaters like PVR and in various MNC offices like HSBC and GE. It also developed various promotional strategies like each month in the coffee shop was dedicated to the origin of coffee from various countries. CCD aimed at a more informal ambience with bright dcor and similar crockery which was very eye catching. Visitors could sip on coffee, browse the net, conduct meets or just hang out with friends. They mainly aimed at the common public and in particular the teenagers. They also followed the strategy of having merchandises under the same brand like caps, cups, T-shirts etc. They began a promotional strategy called the caf Jockey where kids above !5 years were trained for a week. Even though CCD opened lesser number of outlets as compared to Barista it had a good foot hold in the market. They began their expansion with opening of various divisions like ABC exports, Coffee day retailing and coffee day vending and stand alone coffee shops on all the national highways which gave the company a different boost. At Qwikys they used the same strategy where customers were allowed to spend time in leisure and sip on coffee, the Stuarts were trained to treat the customers as guests and a bell was also

placed at the exit were customers would be given asked to ring the bell if they were happy with their visit. They not only served various types of coffee flavors but they also introduced coffee mocktails. They operated three kinds of outlets- Qwikys coffee pubs which were coffee shops, qwikys coffee island which were store in store units which were opened in movie theaters, lifestyle stores and music stores. And lastly was the qwikys coffee express which were small coffee kiosks. CCDs strategy in India may have been very slow in implementation but they did the right thing at the right time, they renovated and re vamped their stores according to the change in trends and also targeted all the national highways which was a great venture as no fast food retail unit had dared to enter. They targeted every age group and created an ambience comfortable for all. They catered to the Indian pallet with a western twist. They slowly entered the market with having the lest number of units across the country but they had a good foot hold the market.

A2: Barista, CCD and Qwikys targeted a very similar but a little different segment. Barista targeted mainly on the high income and teenagers, they created a very lively and bright atmosphere which gave the customers the freedom to do what they wish to do. They mainly aimed at attracting the youth with colorful logo and walls with art works and the Stuarts being very friendly all of this with the feel of an Italian neighborhood. The coffees were more catering to international tastes and pallets giving the customers the chance to experience coffee from various parts of the world. CCD targeted the youth but with a more relaxing ambience with not so bright colors as compared to barista but with colors , logo and crockery which was eye catching for the youth and the common people. They catered more to the Indian pallet by providing coffee from local tastes and preferences and also snacks being more of an Indian style with some western twist to it. They allowed the customers to remain the coffee shop till long hours and also served to the fast moving customers by having several drive in busy areas and also to the segment which was

untouched by many was the highway travelers who wished to have a more hygienic eat outs to visit during their travels. Qwikys aimed more on proving variety to the customers having a wide range of choices which no other coffee shop provided nor was it very common in India. They targeted the customers who wanted to having coffee at a leisure and with comfort. They gave a more relaxing atmosphere where the Stuarts were trained to treat the customers as guest and also to have conversations with them. They stated their coffee shops as pubs for the youth.

A3: Starbucks with the plan of entering the Indian market it can cause a major threat and competition to all the three major coffee shops such as Barista, CCD and Qwikys. Starbucks being a global giant in liquid coffee with having success and experience on a global scale nd dominance in major cites round the world with professional training given to the employees and coffee beans imported from various countries and with various blending styles makes a strong contender to all other coffee shops in India. The main competitor to Starbucks in India can be CCD as this is one coffee company which has a very strong foot hold in India as it is more price sensitive, catering to Indian pallet and also flexible to changes with the change in Indian tastes and preferences. CCD is also expanding on a faster pace in the current times by having a unit in each and every prime location in India and also having a good foot hold in the highway segment. As Starbucks is planning to use the carpet bombing strategy to enter India it still may not be successful to bring down the sales of CCD nor be a very strong competitor in the initial stages.

A4: With the entry of Starbucks in the Indian market creating a huge competition to the other players in the market it may lead to a consolidation of companies as the domestic chains may go ahead with partnerships, strategic tie-ups and M&As. as it may become very tough for the Indian

chains to face the tough competition from the foreign players who are highly experienced and more professional like CCD is planning to get investments from AIG group and also Barista trying the same.