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FINAL RESEARCH PROJECT

“CUSTOMER PERCEPTION AND ATTITUDE
TOWARDS RETAIL COFFEE CHAINS – A
STUDY IN DELHI, W.R.T BARISTA, CCD,
NESCAFE”

SUBMITTED IN PARTIAL FULFILLMENT OF PGDBM
(2006-08)

Submitted to:
XXXXXXXX
Submitted by
XXXXXX
XX

ACKNOWLEDGEME
NT
I would not have completed this project without the help, guidance and support of certain
people who acted as guides and friends along the way. I wo uld like to express
my deepest and sincere thanks to my faculty guide NAME, for her invaluable
guidance and help. The project could not be complete without her support and
guidance. I am also thankful to NAME for his help in completing the project. They acted
as a continuous source of inspiration and motivated me throughout the duration of the
project helping me a lot in completing this project.

INDEX
1. Introduction to the topic
2. Company profile
a. Barista
b. Café Coffee
Day c. Nescafe
3. Research objective
4. Research methodology
5. Data analysis
6. Future of coffee houses in India
7. Conclusion
8. Annexure1 – Questionnaire
9. Annexure2 – Literature review
10. Bibliography

INTRODUCTION
Today Coffee has become a lifestyle. Also, it has caught the fancy of today's generation youth. These were not the typical coffee drinking target customers. But now they are a
big part of the target base for coffeehouses. And it is fashionable to be seen at the
Coffee Pubs. It is in a way, a lifestyle statement.
That is bad news for tea - still the favorite brew for a majority of Indians, which has been
losing out to coffee in recent years. India is one of the world's largest exporters of tea
and also one of its biggest consumers. But it is coffee drinking which is
increasingly becoming a statement of young and upwardly mobile Indians.
And coffee bars, an unheard of concept till a couple of years ago, are suddenly big
business. Corner bars like these are offering more than just coffee and snacks to
their customers. For many of their regular patrons, a visit to these bars is also a part of
the western lifestyle they so much want to identify with.
The Coffee retailing sector in India is booming today, with several companies active in
the market. Some are local entities, some have come from abroad and have tied up
with local companies, and some seem to prepare themselves for an entry sooner or later.
The market growth is expected to be 20 to 30% annually in the next couple of years.
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its
first café at Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in
India was restricted to the intellectual, the South Indian traditionalist and the five star
coffee shop visitor. As the pure (as opposed to instant coffee) coffee café culture in
neighboring international markets grew, the need for a relaxed and fun “hangout” for the
emerging urban youth in the country was clearly seen.

In 1457 the first coffeehouse. In establishments where it is tolerated . and coffeehouses were established and quickly became popular. offer shisha. As the name suggests. and some of the characteristics of a restaurant. listen to music. or pass the time. talk. From a cultural standpoint. Coffeehouses in Mecca soon became a concern as places for political gatherings to the imams who banned them. and possibly being licensed to serve alcohol. play chess and backgammon. the coffeehouse has served as a social gathering place in Middle Eastern countries where men assemble to drink coffee (usually Arabic coffee) or tea. write. coffeehouses focus on providing coffee and tea as well as light snacks.which may be found notably in the Netherlands. and in Muslim districts in the West. The first coffeehouses in Western Europe appeared in Venice. and not long after there were many coffee houses in Cairo. In 1530 the first coffee house was opened in Damascus. and the drink. which is an informal restaurant. but it is different from a cafeteria. coffeehouses largely serve as centers of social interaction: the coffeehouse provides social members with a place to congregate. whether individually or in small groups. due to the traffics between La . read.Coffeehouse A coffeehouse shares some of the characteristics of a bar. just four years after its conquest by the Ottomans. for Muslims between 1512 and 1524. and perhaps hear a recitation from the works of Antar or from Shahnameh. Kiva Han. read books. This differs from a café. especially in Amsterdam . powdered tobacco smoked through a hookah. In the 17th century. History Since the 15th century. entertain one another. was opened in Istanbul. offering a range of hot meals. Many coffee houses in the Muslim world. coffee appeared for the first time in Europe outside the Ottoman Empire.cannabis may be smoked as well.

Oxford's Queen's Lane Coffee House. merchants and lawyers. The first coffeehouse in England was set up in Oxford in 1650 by a Jewish man named Jacob. Though Charles II later tried to suppress the London coffeehouses as "places where the disaffected met.Serenissima and the Ottomans. Cornhill. The first coffeehouse in London was opened in 1652 in St Michael's Alley. The banning of women from coffehouses was not universal. such as Tories and Whigs. This coffeehouse still exists today and was a major locus of the French Enlightenment. According to one French visitor. but in England and . Boston had its first in 1670. Pasqua Rosée also established Paris' first coffeehouse in 1672 and held a city-wide coffee monopoly until Francesca Procopio dei Coltelli opened The Cafe Le Procope [2]in 1686. The proprietor was Pasqua Rosée. By 1739 there were 551 coffeehouses in London." were the "seats of English liberty. is still in existence today. More generally. booksellers and authors. coffeehouses. established in 1654. the first modern encyclopedia. who imported the coffee and assisted Rosée in setting up the establishment. men of fashion or the "cits" of the old city center. open to all men and indifferent to social status. the very first one is recorded in 1645. where underwriters of ship insurance met to do business. and Diderot frequented it. In Germany women frequented them. each attracted a particular clientele divided by occupation or attitude. and it is arguably the birthplace of the Encyclopédie. Voltaire. news exchanged and the London Gazette (government announcements) read. the public flocked to them. but does appear to have been common in Europe. and spread scandalous reports concerning the conduct of His Majesty and his Ministers". wits and stockjobbers. Lloyd's of London had its origins in a coffeehouse run by Edward Lloyd. coffee houses became meeting places where business could be carried on. "where you have the right to read all the papers for and against the government. the Armenian servant of a trader in Turkish goods named Daniel Edwards. They were great social levellers. the Abbé Prévost. and as a result associated with equality and republicanism. Rousseau.

Coffeepots are ranged at an open fire. In a well-known engraving of a Parisian coffeehouse of c. All the sacks of coffee were granted to the victorious Polish king Jan III Sobieski. the gentlemen hang their hats on pegs and sit at long communal tables strewn with papers and writing implements. separated in a canopied booth. As the youth culture of the 1960s evolved. which skimmed away some of the more aristocratic clientele. 1700. and San Francisco's North Beach. from which she serves coffee in tall cups. Jonathan's Coffee-House in 1698 saw the listing of stock and commodity prices that evolved into the London Stock Exchange. Kulczycki began the first coffeehouse in Vienna with the hoard. non-Italians consciously copied coffeehouses. Boston's North End. who became highly identified with these coffeehouses. In London.S. who in turn gave them to one of his officers. an alternative to the public house (pub). In Victorian England. with a hanging cauldron of boiling water. The traditional tale of the origins of Viennese coffeehouses begins with the mysterious sacks of green beans left behind when the Turks were defeated in the Battle of Vienna in 1683. the temperance movement set up coffeehouses for the working classes. The only woman present presides. notably New York City's Little Italy and Greenwich Village. as a place of relaxation free of alcohol. However. it is now widely accepted that the first coffeehouse was actually opened by an Armenian merchant named Johannes Diodato. Before the rise of the Seattle-based Starbucks chain. Coffee shops in the United States arose from the espresso. cities.France they were banned.and pastry-centered Italian coffeehouses of the Italian-American immigrant communities in the major U. Franciszek Jerzy Kulczycki. these . coffeehouses preceded the club of the mid-18th century. Émilie du Châtelet purportedly wore drag to gain entrance to a coffehouse in Paris. Auctions in salesrooms attached to coffeehouses provided the start for the great auction houses of Sotheby's and Christie's. Both Greenwich Village and North Beach were major haunts of the Beats.

including a list of name suggestions for coffeehouses. In the United States. Blues singer Lightnin' Hopkins bemoaned his woman's inattentiveness to her domestic situation due to her overindulgence in coffeehouse socializing. coffeehouses also served as a venue for entertainment. Christian music (guitar-based) was performed. coffee and food was provided. . Format Coffeehouses in the United States often sell pastries or other food items Cafes may have an outdoor section (terrace. CA). A number of well known performers like Joan Baez and Bob Dylan began their careers performing in coffeehouses. tables and parasols. An out-of-print book. and Bible studies were convened as people of varying backgrounds gathered in a casual "unchurchy" setting.Seattle and other parts of the Pacific Northwest had a thriving countercultural coffeehouse scene. A Coffeehouse Manual. served as a guide for Christian coffeehouses. These coffeehouses usually had a rather short life. many churches and individuals in the United States used the coffeehouse concept for outreach. From the 1960s through the mid-1980s. Starbucks standardized and mainstreamed this model. published by the ministry of David Wilkerson. about three to five years or so on average. This was likely due to the ease at accommodating a lone performer accompanying themself only with a guitar. which were more male dominated with a focus on drinking alcohol. from the late 1950s onward. This is especially the case with European cafes. pavement or sidewalk cafe) with seats. Cafes offer a more open public space compared to many of the traditional pubs they have replaced. even with limited floorspace. in his 1969 Coffeehouse Blues. NY). and Jesus For You (Buffalo. most commonly folk performers. The Lost Coin (New York City). the political nature of much of 1960s folk music made the music a natural tie-in with coffeehouses with their above-referenced association with political action. titled. They were often storefronts and had names like The Gathering Place (Riverside.

was reintroduced in the 1990s with the Internet cafe or Hotspot (Wi-Fi). in a more relaxed setting than a restaurant.styled venue helps to create a youthful. a traditional European cafe culture is thriving as a result of significant immigration from mainland Europe in the 19th century and 20th century. especially in Paris. The word is a portmanteau of the Malay word for coffee (as borrowed and altered from the Portuguese) and the Hokkien dialect word for shop. Costa Coffee. generally single dishes. Coffee Republic. International variation American coffee shops are also often connected with indie. In Australian cities. A brasserie is a cafe that serves meals.One of the original uses of the cafe. In France. compared to the traditional pubs or old-fashioned diners that they replaced. traditional coffeehouses as gathering places for youths fell out of favour after the 1960s. Menus typically . but the concept has been revived since the 1990s by chains such as Starbucks. outward-looking place. Computers and Internet access in a contemporary. urban and rural. A bistro is a cafe / restaurant. a cafe also serves alcoholic beverages. They may have a restaurant section. and Caffè Nero as places for professional workers to meet and eat out or simply to buy beverages and snack foods on their way to and from the workplace. The spread of modern style cafes to many places. In the United Kingdom. Coffeehouses are often gathering places for underage youths who cannot go to bars. as a place for information exchange and communication. In Malaysia and Singapore. jazz and acoustic music. traditional breakfast and coffee shops are called kopi tiams. modern. These establishments often cluster along certain streets and with the weather allowing curb side seating much of the year certain areas resemble a large party on a Friday or Saturday evening. went hand in hand with computers. French cafes often serve simple snacks such as sandwiches. and will often have them playing either live or recorded in their shops.

many cannabis shops call themselves coffeeshops. Barista Coffee Barista Coffee is a chain of espresso bars in India. Sri Lanka and the Middle East. and Milo. Italy's Lavazza has now acquired Barista. coffeehouses attract many men and boys to watch TV or play chess and smoke shisha. toast. a. It operates in over 80 countries. Headquartered in Delhi. Turkey and Syria. Established in February 2000 to recreate the ambience and experience of the typical Italian neighborhood Espresso Bars. Starbucks corporations decided to enter into an agreement that allowed Barista Coffee to use the brand for cafes as long as it allowed Starbucks to use the brand "Barista" for brewing equipment. source: Nielsen). It was founded in 1997. a malted chocolate drink which is extremely popular in Southeast Asia and Australasia.feature simple offerings: a variety of foods based on egg. Italy’s largest coffee company. particularly Singapore and Malaysia. Lavazza is one of the most important roasters in the world. In 2006 sales totalled USD 1. Barista was the fastest brand to make it to the list of super brand's and is ranked among the top 50 phenomenons that changed India. In modern Egypt. Vending and Retailing). and kaya (jam). in the Home and Away-from-Home sectors (Foodservice. . plus coffee.2 billion. a leader in Italy with a 46.5% share of the retail market (in value. Barista currently has espresso bars across India. Barista Coffee aims to provide a comfortable and friendly place for people to relax and unwind over a cup of coffee. p Led by the dynamic duo of Ravi Deol & the marketing ace Sandeep Vyas. tea. In parts of the Netherlands where the sale of cannabis is decriminalized. Barista Coffee in India can be easily called the pioneers of ‘coffee culture’ in India. Ownership: Barista Coffee Company is owned by Lavazza.

Barista Espresso Bars offer games like Scrabble. Barista further has laid international footprints in Sri Lanka (4 outlets). sandwiches and other munchies to go along with its wide coffee range. Shimla. Ahmedabad. Baroda. twisters.m. The international coffees such as Costa Rican. Guwahati etc. . ensuring a uniform and high quality harvest. puffs. Noida. and are open till late night. Coimbatore. Lucknow. Indore. paninis. Pictionary and Battleship for the guests. Kolkata. Kanpur. Chandigarh. The coffee is created with carefully hand picked mature cherries of the Arabica coffee plant. At Barista the ‘Joy of Coffee’ is reflected in the warm ambience. Bangalore. Coffee: Barista Coffee places strong emphasis on the quality of coffee beans and the process of preparing. Barista in its outlets have Wi-Fi enabled corners for executives-on. Pune. Kenyan and Jamaican Blue Mountain are sourced from the respective countries and custom roasted in Italy. Mumbai. Bhubaneshwar. Mohali. India. On offer are authentic Italian food items such as biscottis.Outlets: Barista at present has over 170 Espresso Bars and 7 Barista Crèmes in over 29 locations: Delhi. Oman and UAE (6 outlets). Open seven days a week. Food: In an attempt to further enhance the experience at the Barista Espresso bars. Manipal. it has on offer a delicious snacks and dessert menu. oodles of chocolate. most Barista Espresso Bars begin brewing from 10 a. To add to the informal ambience. walnut brownies etc. Ghaziabad. Dehradun. Barista Espresso Bars were the first place where the customers were called by their first names to create an atmosphere of informality and friendliness. Chennai. Jaipur. House blend beans are sourced and roasted in India by Tata Coffee. rich aromatic coffee. To cater to the sweet tooth. Barista also offers mountains of ice creams.the-go. Gurgaon. wraps. the exotic flavours and the friendly service provided by the brew-masters. Ambience: Barista Coffee is not just about drinking coffee but also about the entire experience. chunks of crumbly apple pies. This 100% Arabica coffee is sourced from Tata Coffee’s pl antations in Karnataka. Bhopal. Hyderabad. Mussorie. making it one of the largest retailers of specialty coffees in Asia. Cochin.

For the year 2003-05.Awards Barista – the Super Brand • Barista received the coveted Retail Award. It is also the recipient of the ‘Café of the Year’ award given by The Times Group – in the Times Food Guide. Recently Barista was also recognized by the HT Food Guide as the best place to have coffee as well as ‘Café of the Year’ award given by The Times Group – in the Times Food Guide. books and art. Barista has been selected as one of the 100 superbrands in the country and is amongst the youngest brands in the list. A huge shot in the arm and validation of the company’s efforts has been the recognition given independently by BBC. Barista focuses on themes and avenues that complement coffee such as music. the Barista ambience has been re-created . Here. • Barista has also been voted Barista has been recognised by the HT ‘Superbrand’ two years in succession. voted by consumers as the 'Most admired retailer of the year 2007: Catering Outlets' at the 4th IMAGES Retail Awards (IRA) 2007. Barista was also awarded the TOPS award for Specialty Coffee Excellence by the Specialty Coffee Association of America (SCAA) which recognizes specialty coffee retailers who differentiate themselves through better business practices. Food Guide as the best place to have coffee. The Times of India and Business Standard as the ‘Brand of the Year’ (2002). Barista has tied–up with brands such as Planet M and Corner Book Store to open espresso corners in these stores. Marketing initiatives: In order to enhance this unique experience. to achieve this status. felicitating India’s top performing companies and professionals in the business of retail.

friendly and inviting atmosphere. well. To cool things down. there's the Barista House Blend . And finally. At last count.within the establishments giving the consumers the opportunity to enjoy a cup of delicious coffee while browsing through a book. Barista traces its roots back to the old coffee houses in Italy . strangers. Barista is a comfortable place to spend time with friends. Followed by an extensive list of steaming hot espressos.their signature blend of coffee and select international coffees from some of the most noted coffee growing regions of the world. b. Sri Lanka and the Middle East. cappuccinos and lattes made from the finest Arabica beans.the hotbeds of poetry. fine coffee. Add to this. a refreshing range of cold and frozen coffees that will make anyone who tries them return for more. the girl next door. To begin with. And even if you drop by alone. Café Coffee Day . writing. the aroma of fine Barista coffee permeated in over 100 espresso bars across India. they have some of the finest beverages to keep you company. love. Drawing inspiration from them. enjoying music or appreciating art. music. they have employed skilled Italian roastmasters at their roastery in Venice. Sourced only the finest quality Arabicas. her neighbour's aunt. they have single-handedly taken on the challenge to open people's eyes to the simple pleasures of coffee and revolutionize the coffee drinking experience in every city that we invade. revolution and of course. just about anyone. they have fruit smoothies and chilled granitas in tropical flavours. a menu you can ponder over for hours and you have everything you need to escape the pressures of daily life. family. And have had our espresso bars designed to reflect a warm. To live up to this promise.

Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. From a handful of cafés in six cites in the first 5 years. that is owned by a sister concern and from 11. the South Indian traditionalist and the five star coffee shop visitor. CCD has become India’s largest and premier retail chain of cafes with 498 cafes in 85 cities around the country. Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. a Rs. Amalgamated Bean Coffee Trading Company Ltd. Coffee Day Xpress (which owns 341 Coffee Day Kiosk).Café Coffee Day is a division of India's largest coffee conglomerate. Coffee Day sources coffee from 5000 acres of coffee estates. the home of some of the best Indian Coffees and with the vision of a true entrepreneur nurturing it. Its different divisions include: Coffee Day Fresh n Ground (which owns 354 Coffee bean and powder retail outlets).” . 300 crore ISO 9002 certified company.000 small growers. “Enthused by the success of offering a world-class coffee experience. Eurasia. Europe & With its roots in the golden soil of Chickmaglur. Till about the late 1990’s coffee drinking in India was restricted to the intellectual. Coffee Day has its business spanning the entire value chain of coffee consumption in India. popularly known as Coffee Day. Café Coffee Day embarked on a dynamic journey to become a large organized retail café chain with a distinct brand identity of its own. CCD has opened a Café in Vienna. Egypt and South East Asia in the coming months. Recognizing the potential that lay ahead on the horizon. Austria and is planning to open other Cafes in the Middle East. Eastern Europe. Coffee Day Take away (which owns 7000 Vending Machines). Japan. It is one of India’s leading coffee exporters with clients across USA. (ABCTCL). the 2nd largest in Asia. As the pure (as opposed to instant coffee) coffee café culture in neighboring international markets grew. the need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen.

one of India’s leading book distributors for placement and rotation of reading materials appealing to Café Coffee Day’s discerning customers. Bangalore and GKII. With exquisite interiors. presents the traveler en route not only with good coffee and scrumptious snacks amidst great ambience but also with clean restrooms to get rid of that weariness from the road! Lounge cafés at Hauz Khas. CCD’s book corners accentuate the age-old combination of ‘coffee and books’. This exciting concept has been successfully tested at 15 cafes in 12 cities across India and the numbers are set to grow exponentially. CCD has ventured into the following formats: Music Cafés provide customers with the choice of playing their favourite music tracks on the Digital Audio Jukeboxes installed at the café! There are around 85 cafes with such jukeboxes. Book Cafés offer the perfect solution to people who think that the coffee experience is incomplete without browsing through the bestsellers or reading a classic.G Rd. Highway cafés on the Bangalore – Mysore highway and NH-8. Delhi and Southern Avenue. 32 cafes also provide customers with the visual treat of watching their favorite music videos by means of Video Jukeboxes. Garden cafés at M. New Delhi combine the joy of rejuvenating amidst verdant landscapes and pots of coffee.Cafe Formats Café Coffee Day has been experimenting with café formats for quite sometime. Backed by the motivation of providing customers with exciting choices as well as constantly redefining ‘the café experience’. Kolkata(Southern Avenue) and Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the lively ambience and comfort of a café. exotic menu and thematic music CCD Lounge offers a whole new experience to the connoisseur while assisting the latter through its team of hostesses who are poise and style incarnate and are looked upon as fashion icons. . CCD has tied up with English Book Depot.

Bangalore. such as electronic. Danglers. we at CCD have entered into tie-ups and promotions which are well knit with our brand promise and which can be creatively used to woo the Indian Youth. Stirrers. Standees etc. Leaflets. both relevant and irrelevant. Over the years. Delhi combine the urge to surf. Tent Cards. Airport. Customer profile . Café Coffee Day offers a much more interactive. Other media. Bangalore and Airport. both domestic as well as International blends! Mission statement “To be the best café chain in the world by offering a world class coffee experience at affordable prices”. offer brand communication through visual and audio modes to a large section of the populace. Brand association CCD has emerged as an interactive alternative media for brands to communicate with the ‘young at heart’.Cyber cafés at Brigade Rd. Contest Forms. Drop boxes. targeted communication. print and outdoor. sometimes adding even a taste dimension to a brand idea! Various in-café collaterals used to impart visibility to a brand inside a café or to add the element of interactivity to a campaign are Posters. not to mention get connected through the internet while enjoying perfectly brewed cups of coffees. Cashing in on its mass captive audience. Brochures. Coasters. CCD has successfully promoted a number of brands/products/events through various innovative tactics and promo ideas.

Awards Cafe Coffee Day: the best Indian Food Services Brand Business World November 8th. It is a place where they meet friends and colleagues. in groups of 3 or more. barista coffee 5. Customers describe Café Coffee Day as the place they frequent most after “home and workplace/college”. Each café. Students and young professional comprise around 72% of our customers. McDonald’s 2. café coffee day 4. 18% of the customers visit the cafes daily while another 44% visit weekly. domino’s . both male and female who are served the best coffee by friendly and informed staff. a place where they rejuvenate and are free to be themselves rather than a place to be “seen at” vis a vis other cafes.The café is a meeting place for 15-29 year olds. mainly between 4pm and 7 pm. in an uplifting and invigorating ambience. pizza hut 3. depending upon its size attracts between 500 and 800 customers daily. Research shows that teen-agers form 25% of our customers while 38% of the customers are between 20 and 24years and another 23% belong to the age group of 25-29 years. 2004 Food services top 5 1.

(Nestlé Management and Leadership Principles) . however. which ensure leadership fully compatible with Nestlé's sustainability objectives. Only two years later they invented a new technology to capture more aroma and flavour from every single coffee bean. CCD is visited the most. c. Nestlé's commitment to sustainability is deeply rooted in the company's core values. For the first half of the next decade. The beginnings of NESCAFÉ can be traced all the way back to 1930. NESCAFÉ was first introduced in Switzerland. World War II hindered its success in Europe. American forces played a key role in re-launching NESCAFÉ in Europe by virtue of the fact that it was included in their food rations.Out of the 3 coffeehouses studied. NESCAFE The rich taste of coffee is reflected in its rich history. when the Brazilian government first approached Nestlé. (Nestlé Corporate Business Principles) The endorsement of these values is made through a whole set of principles that are enforced at every stage of production. 1938. partner or vendor. coffee had become the beverage of choice for teenagers. employee. The company's culture is guided by these principles. by every business or production unit. In 1994 the 'full aroma' process was invented to make the unique quality and character of NESCAFÉ even better. (Nestlé Corporate Governance Principles). Great Britain and the USA. Its popularity grew rapidly through the rest of the decade. NESCAFÉ was soon exported to France. NESCAFÉ – a combination of Nestlé and café. on April 1st. The mean of CCD visited is more than Barista and Nescafe. who were flocking to coffee-houses to hear the new rock ’n’ roll music. In 1965 NESCAFÉ continued to bring the world's best cup of coffee by introducing freeze-dried soluble coffee with the launch of Gold Blend. By the 1950s. which drive the Company's way of doing business.

” Nestle. Not deterred by the competition the coffee chains could present. . colleges and offices. is a major criterion for Nestle India as far as products are concerned. said. CEO. “The difference between the coffee chains and us is affordability. The company’s motto to target the lowest denominator is clear through the pricing of its brands in the category as well as the blends used in the products. However. No one knows coffee the way we do. Mr. “The idea is to create a sustainable model that is scalable through these cafes. Nestle India. Perfect blend Affordability. however. is now all set to grow its coffee business. They are focusing more on product delivery vis-À-vis the ambience. While coffee chains such as Café Coffee Day and Barista target the upper middle class youth segment. in fact. they are pleased that there are more players in the competition as it will expose more consumers to coffee.FMCG major Nestle India. Nestle India through its ‘Cafés’ is going all out to woo the masses. They refuse to divulge the size of the company’s café business. Martial Rolland. They use these outlets as our laboratories to try out new products and gauge the reaction of consumers to the newer variants of coffee. having catapulted its business with the launch of its probiotic range of frozen dairy products. according to company officials it was far larger than some of the others who claim to have the maximum number of outlets in the country. plans to continue its cafes pan-India under the franchisee model. Nestle has cafés across schools.

New product Based on consumer insight. as a company. the harsh and strong flavour of coffee is not preferred by most people. RESEARCH OBJECTIVE – “Customer Perception and Attitude towards retail coffee chains – a study in Delhi. targeted specifically at the mass market of tea drinkers. Also with the understanding of coffee that they have acquired globally. they focus more to grow their coffee business here. Cold coffee category The company is also examining several possible segment forays under coffee. Though the market for products such as cold coffee is still very small in India. moving away from hot to the cold category. Preference in choice of Coffee chain 2. So.India is predominantly a tea drinking country. Their long heritage in the country helps them understand people better. the company has just launched its new product ‘Nescafe Mild’. experiences from their Café outlets have made them realise the growing demand for it. they want to leverage their expertise here as well. w. They are examining possibilities of launching such products in India. And. the blends they use in their brands are also very specific to consumer tastes. Nescafe” SUB OBJECTIVES: 1. the coffee market in India in itself is rather small with great opportunity for growth. Therefore. however.t Barista. In fact. CCD.r. Factor affecting the customer choice of coffee chains .

distributors audit. for what purpose they visit a coffee-house. RESEARCH METHODOLOGY While making a study we very often look for what type of research methodology is to be used in this type of study.) Customers purchasing behavior and attitude towards coffee houses (in terms of which coffee-house they visit. pantry Reports. The first step in research after defining the research problem and objectives is data collection. which are collected afresh and for the first Time. to analysis the information and bring out the results. the researcher should keep in mind that there are two types of data primary and secondary. There are many ways of data collection of primary data like questionnaire. The task of data collection begins after a research problem has been defined and research design chalked out. 1. etc. ambiance. affordability. For implementation of a proper research methodology we have to first understand the meaning of research. on what occasions they prefer to visit a coffee-house.3. While deciding about the method of data collection. Research is a scientific as well as systematic process. which includes defining and redefining the problem to develop hypothesis. which is either quantitative or qualitative in nature. consumer panel etc. and thus happen to be original in character. how much they spend etc. interview method. which is of practical or theoretical use. observation method. through schedules. Comparative analysis between different coffee chains This research project will include the following issuesIdentifying the factors that influence the customer the most (factors such as coffee taste. to collect and define the information/data. who influence there preference. Primary data: -This is those. .) Identifying the most popular coffeehouse. The word data means any raw information.

website. This project is a survey project.2. companies reports. reports prepared by researchers. magazines and journals. Journals Data collection method: Survey Method Survey instrument: Questionnaire Method of communication: Personal interview Sampling technique: Convenient sampling . The primary data collected through this fieldwork will be analyzed and used to generate results. Websites. RESEARCH DESIGN – Type of research: Descriptive research Sources of data: Primary Data & Secondary Data Primary Data . banks etc. Target respondent – the target respondent are the people who have visited any of the coffeehouses in Delhi.Questionnaire Secondary Data – magazines. reports of various associations connected with business. In this project first the secondary data will be collected through websites.. For this project secondary data was taken from company’s reports and websites. Secondary data: -These are those data. journals. Industries. Based on this information a questionnaire will be designed for the target respondents. There are many ways of data collection of secondary data like publications of the state and central govt. which are not collected afresh and are used earlier also and thus they cannot be considered as original in character.

Deviation BARISTA 50 1.88063 E Valid N (listwise) 50 .72955 NESCAF 50 1.00 3.00 2.77828 CCD 50 1.2800 .00 3.00 3.00 1.Sample size: 50 Sample unit: People who visit coffee houses in Delhi Area of survey: Delhi DATA ANALYSIS N Minimum Maximum Mean Std.9200 .00 1.8000 .

6400 .00 3.0200 .00 3.00 4.00 2.00 4.00 3.97227 50 2.6600 .00 4.3200 .62237 .Coffee house visited the most 25 20 15 Frequency 10 5 0 ccd barista nescafe Coffee house visited the most Descriptive Statistics variety of coffee taste of coffee quality of coffee price of coffee ambience of outlet Customer N Minimum Maximum Mean Std. Deviation 50 2.69076 50 1.00 4.48487 50 1.00 4.47852 50 3.1800 .00 3.00 3.4400 .00 4.68333 50 3.

58029 C_taste 50 2.00 3.66 Descriptive Statistics N Minimum Maximum Mean Std.00 4.00 3. CCD has good variety than others.00 4.00 2.00 4.00 4.97499 50 While visiting a coffee house.6000 1.2000 .00 2.00 4. discounts.2600 .1000 1.69429 C_variety 50 2. Deviation B_taste 50 2.59796 N_variety 50 1.4800 .3600 .00 2.00 4.3800 .01519 50 1. Deviation B_variety 50 2.00 4.00 2.00 4.7800 . CCD and Nescafe.63535 .00 3. coupons etc side order menu time for service Valid N (listwise) 50 1.00 2. because it has the maximum mean of 3.96890 Valid N 50 1(listwise) Out of the variety of coffee offered by Barista.36 Descriptive Statistics N Minimum Maximum Mean Std.01015 50 1.00 3.service location of outlet offers. taste of coffee is the most important factor for choosing the coffee house.00 4.3000 .88617 50 1. which has a mean of 3.

3600 .00 2.38.95212 Valid N (listwise) 50 Descriptive Statistics N Minimum Maximum Mean Std.00 4.63116 C_quality 50 1.00 3.00 4.00 3.00 4.00 4.73540 N_quality 50 1.1800 .6400 . which means than taste of coffee offered by CCD is better than other coffee houses.00 2. this means that Barista offers the best quality in coffee Descriptive Statistics N Minimum Maximum Mean Std.1400 .00 2.74751 C_price 50 2.00 4. Deviation B_price 50 1.75620 Valid N 50 .00 4. Deviation B_quality 50 2. The following table shows that the mean quality of coffee offered by Barista is more than the other 2 coffee houses.00 4.00 3.4600 .92051 50 The taste of coffee of CCD has a mean of 3.N_taste Valid (listwise) 50 N 1.00 2.56460 N_price 50 2.3000 .7400 .

64681 C_cust.00 2.9200 .00 4.ser 50 1.(listwise) The price offered by Nescafe is the most economic.00 4. Deviation B_cust.7000 . The mean of ambience is 3.ser 50 2.00 4.58169 N_ambience 50 1.4800 .00 4.ser 50 1. which can be seen by the mean which is more than the other two coffee houses.9000 .70711 C_ambience 50 2.00 4.00 2.86284 Valid N (listwise) 50 The ambience of CCD is better than the other two coffee houses. .72955 Valid N (listwise) 50 The customer service offered by CCD is better than the customer service offered by other two coffee houses.00 3.00 4.00 2. Deviation B_ambience 50 2.72393 N_cust.00 2.2800 .22 Descriptive Statistics N Minimum Maximum Mean Std.2200 .00 2. Descriptive Statistics N Minimum Maximum Mean Std.

offers and coupons offered by Nescafe is better in comparison to the other two coffee houses.00 4.5200 .00 2.9800 .00 4.00 2.00 2. Deviation B_menu 50 1. Descriptive Statistics N Minimum Maximum Mean Std.78792 Valid N (listwise) 50 The location of coffee house outlet of CCD is better than the other two coffee houses.00 4.00 4.86284 C_location 50 1.00 1.87505 .86213 C_menu 50 1.Descriptive Statistics N Minimum Maximum Mean Std.4600 .8400 .9200 .00 2.00 2.00 3.71400 N_offer 50 1.5400 .00 4.1600 .00 4. Deviation B_offer 50 1.00 2.87691 N_location 50 1.6400 .00 4.00 1.97646 Valid N (listwise) 50 The discounts.71027 C_offer 50 1. Descriptive Statistics N Minimum Maximum Mean Std. Deviation B_location 50 1.

The mean is 3. Deviation exe_b 50 2.00 2.00 4.00 3.00 4.00 4.00 4. Descriptive Statistics N Minimum Maximum Mean Std.00 4.00 2. It has a mean of 2. Deviation B_time 50 1.76265 Valid N (listwise) 50 The experience was enjoyed most in the settings of CCD.7000 .7400 .N_menu Valid (listwise) 50 N 1.76 which is higher than the mean of other two coffee houses. Descriptive Statistics N Minimum Maximum Mean Std. followed by Barista and Nescafe respectively.00 2.80812 Valid N (listwise) 50 Barista is better in time taken to serve the consumer.77090 C_time 50 1.00 4.00 4. It includes Maggi noodle which is the hot favorite in kids and youngsters.8200 1.00 3.00793 50 The side menu of Nescafe is better than the other two coffee houses.7600 .66055 exe_c 50 2.6000 .1800 .54248 exe_n 50 1.89921 N_time 50 1.00 2.00 2.4600 .46 .

Deviation BARISTA 50 1.9200 .72955 NESCAFE 50 1. the decision making for visiting a coffee house is highly influenced by peer group or friends.4000 .00 114.00 4.00 96.00 3.88063 Valid 50 N (listwise) Barista – CCD 96 - 114 Nescafe - 90 The results show that CCD is ranked the first. Deviation Own instinct 50 1.72393 Friends 50 2. Descriptive Statistics N Minimum Maximum Mean Std.2800 .00 4.00 3.75593 Family 50 2.77828 CCD 50 1.00 3.00 3.The total of Ranking of the 3 coffee houses is as under: Descriptive Statistics N Minimum Maximum Sum Mean Std.57143 Work group 50 1.85738 .00 4.00 1. The result in the table below shows that.00 90.8600 .00 4.8000 .00 2.00 2.0800 . and Nescafe is third in ranking.00 1.00 3.2000 . followed by Barista as second.00 3.

0 100.0 get together 19 38.0 Work 7 14.0 Total 50 100.0 86.0 38.0 100.0 .Valid (listwise) N 50 The table below shows that the reason to visit a coffee house is usually for refreshment or get together with friends.0 38.0 Dating 5 10.0 10.0 38.visit Frequency % Valid Percent Cumulative Percent refreshment 19 38. reason. 19 respondents voted for both refreshments and get together with friends.0 14.0 76.

0% 0 13 5 18 .2% 27.6% 53.0% 72. Sig.0% 100.0% Chi-Square Tests Pearson Chi-Square Value 5.019(a) df 2 Asymp.081 . (2-sided) . youngster.0% 2 26 22 50 4. elder Count % within youngster.1% 100. elder Count % within youngster. elder Friends less important 2 Total importa nt 13 Very important 17 32 6.8% 100.0% 52.HYPOTHESIS TESTING Hypothesis 1: youngsters feel that friends are very important while making a decision to visit a coffee house.0% 44. elder * friends Crosstabulation youngster elder Total 1 2 Count % within youngster.3% 40.

4% 100.4% 30.3% Total important 12 very important 10 33 36. while only 27% of the elder feel that friends are very important while making a decision to visit a coffee house.Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5. The minimum expected count is .0% 11 within 22.0% 30.0% 0 within .6% 29.0% .72.057 1.05. By doing cross tabulation. gender * family Crosstabulation Family less important gender Male Female Total Count % gender Count % gender Count % gender 11 within 33.287 1 .3%) have expected count less than 5.3% 100.0% 100. Hypothesis 2: Females give more important to their family’s decision while visiting a coffee house.0% 24 15 50 48. we can find that 53% of the youngster feel that friends are very important while making a decision to visit a coffee house.0% 12 5 17 70.716 2 .257 50 a 2 cells (33. The significance level in chi-square tests is more than .

elder * reason. elder Count % within youngster.0%) have expected count less than 5.4% 3. The minimum expected count is 1. elder get together Total dating work 10 18 3 1 32 31. while visiting a coffee house is almost the same at 30.1% 100.3% 9.0% Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Asymp.6% 11.748 3 3 .153 50 a 4 cells (50.1% 33.3% and 29. (2-sided) df 16.400(a) 18.4%.0% 9 1 2 6 18 50.visit refreshment youngste r.0% 38.045 1 . elder 1.3% 56.visit Crosstabulation reason.0% 100. Hypothesis 3: Younger people visit a coffee house for a get together with their friends youngster. elder Count % within youngster.3% 100. proves the hypothesis to be false. for females as well as males.0% 14.The importance level of family. Most of the coffee houses do their Branding via the following attributes- .80.0% 19 19 5 7 50 38. Sig. FUTURE OF COFFEE HOUSES IN INDIA The biggest players in India are CCD and Barista.00 2.0% 10. The above cross tabulation between age class and reason for visit shows that 56% of the younger people visit a coffee house for a get together with their friends.00 Total Count % within youngster.001 .000 2.0% 5.

. Gloria Jeans was also in news. It’s only the intangible as mentioned above creates a difference. we will see more global players in India. Café Nescafe’s offer beverages priced as competitively as Rs 10. Variety/ Variants of Coffee 4. Taste 5. the tangible differentiators are very few. Customer service 3. These cafes would be set up at various petrol pumps and the company is seeking tie ups with all leading petroleum companies in this regard. Other FMCG giants such as Hindustan Lever and Tata Coffee will sooner or later venture into the coffee chain business In this industry. This will increase their brand image and increase of Point of Sales. taste and touch of the furniture CONCLUSIO N inside. Players like Starbucks may enter in India in coming few years. Nescafe outlets in select cities are positioned on the lines of its Nescafe brand's `taste that gets you going' theme. Future 1. sound (music inside the store). 2. Concepts like Sensory Branding by Martin Lindstorm work here as coffee chains can cover the aspect of smell.1. With increase in FDI. sight.in terms of hot/cold CCD plans to set up 'highway cafes' and 'drive through cafes' to attract customers. Experience 2. Preparation .

This has been positioned for younger generations usually college goers and young people. software companies and places where they can target customers. Every day ___ _ ii. ANNEXURE – 1 QUESTIONNAIRE Please tick the relevant answer Q1. On analysis it can be seen that majority of the customers are of 18-30 age group. CCD Barista _ ___ __ __ . Fortnightly _ _ __ Q2. Weekly ____ iv. Barista coffee customers are particular about taste and a peaceful atmosphere. which one do you visit the most? i. Nescafe: .Positioned for youngsters who like to have a sip of coffee and have a chat with their friends at a really low price. ii. They mainly target the mass population.Cafe Coffee Day: . The main emphasis is on the quality of coffee and not on the ambience. People prefer coffee day location for treats. With outlets strategically positioned near colleges.Positioned for Executive class of customers who prefer premium taste but not too high prices. Alternate day __ iii. Barista Coffee: . Usually these outlets have dim lighting and exclusive treatment. With the side menu as tempting as Maggi Noodles. Out of the 3 coffee houses. How frequently do you visit a coffee house? i. they are a hot favorite among young couples.

/coupons Side order menu Time for serving Barista CCD Nescafe .iii. Rate the following coffee houses on the following factors on a scale of 1 – 4 (1poor. 2-fair. Nescafe ____ _ Q3. 4-excellent) Factors Variety of coffee Taste of coffee Quality of coffee Price Ambiance Customer service Location Offer/disc. 3-good. How important are the following factors while visiting the coffee houses Factors Very Important Less Not important important important Variety of coffee Taste of coffee Quality of coffee Price Ambiance Customer service Location Offer/disc./coupons Side order menu Time for serving Q4.

Work _ _ _ __ __ PERSONAL INFORMATION Age: less than 20 __ _ Not important . Refreshment ___ ii. 1 being less preferred i. Barista ___ __ _ ii. Rank the following coffee chains in order of preference. How important are the following in your decision making for visiting a coffee house Very Important Less important important Your own instinct Family Friends Work group Q8. 3 being most preferred. CCD __ iii. Nescafe ____ _ Q7. Your reason to visit a coffee house isi. Get together with friends iii.Q5. Rate your experience with the following coffee-chains on the following scale Very satisfied Satisfied Less satisfied Not satisfied Barista CCD Nescafe Q6. Date iv.

650 million. Coffee drinking was increasingly becoming a statement of the young and upwardly mobile Indians. Barista recreated the ambience and experience of the typical Italian neighborhood espresso bars in India.21 – 30 _ 31 – 45 _ 46 and above Household Income: ___ _ less than 2 lakh 2-6 lakh ___ _ 6-10 lakh 10 lakh and above Gender: MaleFemale ___ __ ___ ___ _ ANNEXURE– 2 LITERATURE REVIEW -1 STORM IN THE COFFEE CUP In the late 1990s. enjoy the arts. With 105 branches in 18 cities and annual sales of Rs. Though being a late entrant. a silent cafe revolution was sweeping urban India. listen to music. Coffee bars. Cafe Coffee Day (CCD) and Qwiky's had become quite popular. Barista was clearly the leader in the coffee retailing business in 2002. surf the Net and sip an . What made Barista different from others was the ambience at its outlets. had suddenly become big business and coffee bars like Barista. The interiors were bright. Barista took elite India by storm. One could play chess. an unheard concept till a couple of years ago. read books. trendy and comfortable.

which entered the market in 2000. analysts felt that it wouldn't be easy for Barista to maintain its leadership position in future. promoted and their paraphernalia such coffee as caps. competition in the coffee retailing business was beginning to heat u p with all the three players looking for opportunities for growth. Barista. 100 million. CCD outlets also T-shirts. which had a 34. with annual sales of Rs. Barista had spent Rs 600 million . By 2002. By 2002. Cappuccino. CCD. One could even choose between frothy or intense. The paintings on the wall were made by young artists. With 21 outlets in 5 cities and annual sales of Rs. Lattes. or Iced Cafe Mocha. CCD had only 50 branches. Analysts felt that Barista and Qwiky's also experienced similar problems but they grew faster than CCD because they realized that running cafe is a hospitality business and one needs to create the right ambiance and experience and back it up with strong logistics. It positioned itself as a place to hang out and spend time leisurely. One could order an Espresso. with the objective of promoting young talent. Barista was opening a store every nine days and it also seemed to be better placed than its competitors due to the strong support of Tata Coffee. had 105 and 21 branches respectively. icy or piping hot. which was started in 1996. and aromatic and exotic coffee. However. had opened 50 outlets in 9 cities by 2002. it failed to leverage on the first mover advantage. In 2002. CCD also provided a relaxing ambience with eye-catching crockery and bright décor. Mochas. According to company sources.Espresso Italiano. which entered in 1999. Though CCD was the first to enter the coffee retailing business in India. Qwiky's was also a strong contender in the growing coffee business. mugs. It also had books and magazines outlets and a casual wear under the Qwiky's brand. Panini et al. the reason for its slow growth was the time taken to complete the back-end operations of its retail outlets. 43 million in the year 2002.3% stake in Barista. and Qwiky’s.

Moreover. and specialty coffee powder shops offered exciting growth opportunities.to establish its chain of 105 stores and in the process had accumulated losses. who preferred traditional filter coffee.org) . it was not expected to turn black soon because of its rapid expansion plans.icmrindia. the average coffee consumption in India was quite low at 10 cups per person annually (Refer Table I). Being a traditional tea consuming country. A NOTE ON THE COFFEE INDUSTRY IN INDIA India ranks 5th among the top 10 countries of the world accounting for 3 % of the total world coffee production and exporting 80 % of the total produce. there was a transition from the conventional and out dated coffee house to a more sophisticated and trendy coffee bars. coffee vending machines. a household beverage confined to South India became quite popular in the late 1990s. Also as Barista imported everything from chairs to coffee machines to coffee beans. People in the Northern region preferred instant coffee in contrast to the people in the south. higher disposable incomes. LITERATURE REVIEW –2 Branded coffee houses a rage in India (www. Coffee. and increasing awareness and exposure to global trends. They constituted 50 % of sales in the Indian Coffee Industry. The late 1990s saw the emergence of coffee chains. increasing number of workingwomen. It is also the fifth largest coffee producer. non-traditional coffee retailing outlets like coffee bar chains. The growth of these specialty and gourmet coffee shops was a result of the economic and demographic changes. Though its operating profit was 17% of the sales. any depreciation in the value of the Indian Rupee would make imports costlier and squeeze its margins further. In the late 1990s.

but an ever increasing list of soft drink concoctions and other beverages mingling with snacks and mini-meals.Anuradha Shenoy in Mumbai | July 16. Sixty per cent of its sales are brewed from teas. Strange? Maybe. At Cafe Mocha. branded coffee accounts for 53 per cent. . India's coffee consumption has been chugging along at 2. with cafes constituting 7 per cent. coffee sales are much less than its other offerings. But this has not deterred the coffee cafes from stretching their brands. 70 per cent of its sales come from beverages including coffee. food items and merchandise. smoothies. What does all this mean? Coffee sales have not really stirred the storm they were expected to be. unbranded 40 per cent. were opening outlets practically every weekend.000 tones. 2005 Go to any of the mushrooming coffee bars and what do you find? The menu displays not just a range of coffees.5 per cent. from Barista Coffee Co to Bangalore-based Cafe Coffee Day. Industry estimates peg the annual growth rate of the coffeehouse segment at a half percent clip. coffee sales are up from 3 per cent three years ago when it first started to 17 per cent today.2 per cent per annum. Today. Internationally. With more than 500 coffee cafes in the country. coffee sales are virtually stagnant. coffee was the most happening beverage. at Barista Coffee Co. At Bangalore-headquartered Cafe Coffee Day. up from 175 in 2002. With consumption pegged at 70. So far so good. According to a 2005 research report by the United Nations Food and Agriculture Organization. moving ahead at 0. And the players.

in addition. conduct interviews. which provides evaluative services for coffee manufacturers. call centres have been one of the growth triggers. we have an entire group of professionals who work a night-time shift. Malaysia. That's why with a Rs 20-crore (Rs 200 million) outlay." There is also the issue of small town individuals moving away from their families to larger cities for career opportunities that were not present before.Despite these figures. According to Cafe Mocha's CEO. Dharmesh Karmorkar. if coffee houses are extending their network. "Several Indian students begin working at a very young age. Barista also plans to start "platforms on the go" in partnership with petroleum companies to cater to consumers travelling between cities. "Before the advent of night-time work enterprises. listen to music and read in. Barista is hoping to be an international brand. Iran and Bahrain. according to Sunalini Menon. Its strategy will centre around targeting college students in the age range of 16 -20 to "catch them young" and induce "lifetime loyalty". Plans underway include 35-40 Baristas in Nepal. Indonesia. Barista's COO. Brotin Banerjee relies on the power of the youth and their increasing disposable income. it is because they provide more than just coffee. chief executive of CoffeeLab. "This individualistic culture promotes the need for a venue to socialise with others of their age who share their interests." she says. a coffee house's customer was limited to individuals who worked daytime hours." he adds. finalise business deals. Now. sometimes right after high school. "They are a venue to socialise." he says. . They have the purchasing power. Turkey.

In a bid to take coffee to the masses. which have a population of one lakh and above. which include Barista espresso bars. mugs.rediff. with only nine franchise outlets. In addition. the chain plans to invest Rs 3 crore (Rs 30 million) in human resource development and Rs 8 crore (Rs 80 million) on the development of new menu items every year. "We're focusing primarily on knowledge building and management and the expertise that our chefs and staff bring to the table. Cafe Mocha. While Barista and Cafe Coffee day are targeting mass-based consumption. is focusing on imported coffees and an upmarket clientele. "We will incorporate health foods like herb breads. from 230 stores. multigrain breads and bran sandwiches. shop-in-shops and corner stores." Clearly. There are plans to open franchised stores in Indonesia. social activities.book clubs. Cafe Coffee Day's senior general manager Sudipta Sengupta plans to add an additional 270 stores in the next three years. food -.htm) . Also." she says. the new outlets will be in towns.as the main plug.Its current tally is 122 stores. Singapore. despite coffee consumption stagnating. Sri Lanka and two in the Middle East. We will also introduce a premium coffee and offer merchandise such as filters. sunflower seeds.com/money/2005/jul/16spec1. Explains Karmorkar. coffee houses are finding it lucrative to add value activities -. It wants to push its stores from nine to 65 in the next three years. Drink to that! (http://www. and message T-shirts. film clubs. merchandise.

Starbucks Corp from the US is another well known coffee chain. a few days back. Costa operates already a total of 34 stores. a big player in many markets around the world. opened the first outlet at Delhi’s Connaught Place in 2005. Now. Winter Date of posting: 13-11-07 The Coffee retailing sector in India is booming today. there were plans to enter the market with a partner. Costa is present in cities like Mumbai. The first foreign coffee retailer who arrived was Costa Coffee. Now. without giving a reason. The market growth is expected to be 20 to 30% annually in the next couple of years. Some are local entities. a spokesperson of Whitbread Plc told FoodIndustryIndia. Agra. Besides Delhi.com. a chain of coffee shops owned by leisure and hotel group Whitbread Plc from UK.LITERATURE REVIEW –3 An Indian sector on the upswing: coffee shops By M. and some seem to prepare themselves for an entry sooner or later. Speculation was on that the government might not have allowed the joint venture with an Indian partner based in Indonesia on behalf of the foreign direct investment regulation for single-brand retailing. Starbucks has agreed a multi-country deal with its North-American partner PepsiCo by would sell the Starbucks ready-to-drink beverages in which PepsiCo . Jaipur and Lucknow. the company has put on hold its earlier plans to enter India by the end of 2007. two years later. together with the Devjani Group as the first franchisee. Now it seems that these earlier plans have been modified. A. The plan is to have 200 stores by the end of 2010. some have come from abroad and have tied up with local companies. with several companies active in the market. In July. Costa Coffee. For India.

Cafe Coffee Day has raised equity capital from Sequoia Capital to finance its rapid expansion. of which 132 are in India alone. Cafe Coffee Day operates 483 outlets at present. ABCTL is executing an interesting business model. and selling of hot coffee (www.com) BIBLIOGRAPH Y Websites 1. which owns India’s biggest coffee-cafe chain Cafe Coffee Day. but there was no confirmation. and an additional target amount of US$ 50 million which would be currently sought. Run by venture capitalist V. They plan to have a total of over 2. Lavazza from Italy. Some media reported that Amalgamated Bean Coffee Trading Ltd (ABCTL).foodindustryindia.com in various retail outlets and vending machines. By far the biggest player in the market already is Cafe Coffee Day. Almost in the same time when Starbucks was making and pushing its plans for India. was also interested to buy Barista. Basically. with 150 cafés in Asia. in Italian eyes the mother country of all coffee drinkers. .international markets. Media reported an amount of US$ 35 million. Austria. selling of packed coffee. the agreement provides Starbucks the option to bring at least a part its product portfolio very quickly to Indian retail of shelves. but also some in Pakistan and two recently opened in Vienna. rushed ahead and took over coffee chain Barista and Fresh & Honest for an amount of reportedly Rs 480 crore from Chennai-based Sterling Infotech Group in May this year. mainly in India. a coffee chain which is part of the Amalgamated Bean company. G.000 outlets over the next four-and-half years. as it is involved in the coffee business right from growing. like India. including those countries that do not have Starbucks outlets. Siddhartha. Cafecoffeeday. Barista is a major player in the premium sector of the Indian sub-continent. their CEO has said earlier. processing and selling in different forms and formats like export of green coffee.

2. Barista. Wikipedia.co.org .in 4. Nescafe.com 3.