DIFFERENTIATING ON CusToMER ExPERIENCE— THe New Generation Corree Cares ‘The new generation coffee cafés that have come up in our cities in recent years is a good example of ‘differ- ‘i cenviating on experience’. They have been proliferating ata fast pace, promoting ‘out-of-home consumption (of coffee’ among the urbanites. They rely on creating a unique, engaging experience—a memorable expert ‘ence—that extends well beyond the actual siping ofthe coffee atthe café t could be sad that in country where space to interact is in short supply, the cafés have the natural propensity to emerge as the socal nerve centre for the local community, bringing them together around the coffee. The point is these cafés different- ate themselves, as a clas, from the general category hotels/coffee-shops/restaurants. The two main planks on which they differentiate themselves from the others are: |. They choose the lfestyle-oriented consumers as their target; the well-to-do, urban consumers: youth students forming the dominant part 2. They make coffee an ‘experience’ and provide a special experience to the chosen segment. ‘These cafés are essentially ‘experience brands’. They not only differentiate themselves asa class from the . general category hotels/coffee-shops but also differentiate themselves from the other cafés in ther own cat ‘egory. In both the cases, they differentiate on the basis of ‘experience’. Proliferation of the Cafés First, let's have a look at this new industry and the players. By mid-2012, India had around 2000 coffee cafés, all eaé brands put together. The projection is that india will have at least 5,000 cafés in the next five years Café Coffee Day ‘The coffee café revolution started in India in 1996 with the first Café Coffee Day (CCD) outlet of the Amalgamated Bean Coffee Trading Co 2005, it had 200 stores. By mid-2012, including the lounge format stores in 139 cities in the country, besides four in Vienna and two in Karachi t plans to open more highway and drive-through cafés through tie-ups with petroleum companies. ‘CCD chain has been expanding at four outlets a week in the ast Ewe years and has single-handedly pushed up coffee demand maniold. Fe Marketing Managementyears ago, CCD had a 70-75 per cent share ofthe market terms of outlets. The share came down by 2012 and i poised to come down further in the next few years as many brands have entered the business inthe liter years. Sil CCD will continue ro havea dominant place for some years to come, a least 40 t9 50 per cent CCD “chain serves more than 600,000 customers per day tis looking forward to reaching. a total of 2,000 outs by 2014 with lounges accounting for 100. le had 20 lounges by October 2012. ‘The Cafe Coffee Day Lounge format also serves coffee-bated products and other beverages, but vas & specially created format for coffee lovers. I would offer distinc coffee blends prepared by special alernatve brewing techniques in the presence of customers. The ‘Coffee Day Square isa further extension from the ‘concept of the lounge format; the Square focuses on alternative brewing and mixology together with Western food. The older format CCD cafés continue ther valve offering. Barista Coffee Today, Sterling Group's Barista Coffee Company has over 550 coffee bars in india spread over 35 cites. tallan Lavazza group has acquired it and i is now known as Barista Lavazza. It's present in 80 ‘other countries plans to have around 800 outlets in India by 2014 and rake a leadership postion inthe coffee café business. Costa Coffee Costa Coffe, UK's leading coffee chain, has aso set up shop in India. It entered the Indian ‘market in September 2005, The plan was to be present in all major cities with 300 outiets by 2014. Inthe UK, Costa opened 80 new cafés last year. The same pattern could be repeated in India too. Costa, at present, has '550 outlets worldwide, out of which 430 are in Britain. India wll be a very important market for Costa. n the long run, it may even become No. | market for it. Barnie’s Coffee US chain Barrie's Coffee has also come to India. The fist Barnie's outlet was opened in Noida. ‘Starbucks Among the café brands, Starbucks sa class unto itself in using customer experience to distinguish its cafés. We have explained the Starbucks story in Chapter 3. Globally, superior customer engagement i the secret of the phenomenal success of Starbucks. The Tata Starbucks joint venture is already operating Starbucks cafés under the Quick Service Restaurant category. Tata Starbucks Ltd will spend 400 crore initially and open 50 Starbucks cafés within three years. Dunkin’ Donuts The US-based foods chain opened its firs outlet in Delhi by October 2012. ubiane FoodWorks, which holds the franchisee rights for Dunkin Donuts, has plans to scale up Dunkin operations Py setting up 100 stores over the next five years. Selling the Experience...and the Ambience “The customers ofthese cafés do nt se te coffee axa product or beverage, but a a experience. Thy Integrate the ambience of the place with the coffe experience. Most of them cite the ambience he 80° sphere as the main aration for ther visting the café, They ee ther as nice places ohare ou were can incidentally enjoy the coffee experience.Attracting College Students: ‘The cle cae af argtng tude per an ring t acon oa than aa, tenes teeny he male Caters ge ee (Gopal pur omen ea ts 3 cots aarp eh eee rere accent ete ea at tare aie ear Tr CCD a det any laces tan ears tare soo ew corres uta eo two igh degree of student patronage at these outlets Present, around 30 of the 300 ealée are dengrared ws astro Saris ssc tr 8 pr con ol she risa baw 2D sates Te oie ‘Sine tke Pune, Abmedtad, Divan Pana and Mange Berea mseeten bar ree ara th ittabmededconpun nd te IT-Dei camp By 1G, ey ha vom Bursa bye frente mses ke It lndore tn ITC! wed oer ages Soden Focued Markating Mi The makati atep and isin ecu are der oi o Strge cere Exrying tom décor the manta he mc as ben ped tea sana Sen Forivance, coping that drs Gong tor rg cols eee te and ep Gren thse ees vppy ees th ado ke cht suc, hipped coasted donde Tim fhe Bares Campa oes pode WF ard hedaman contr eng wh any dares bing thr bptnpe sno aca work wd no pl! The sors al ln fe pr an ‘estou on he bars Th ar ply popy muse prefered ye dens Diferentatng the Experience in Many Innovative Ways ‘Thecfécferertiaethe‘experenes in mary imoratve ways. They she he youn suns nimpresion Ghat smetang waves happen tcf non ta ey hoa be pt They wp baz Song the yout suns wth fain events se concer, and new prouc es. ity ro car of te young aomers of CoD Ike hein to Yous rote msc: Ard, what cco mot Bayo dr ce? Yr: ut ot that, wart stephen got the arore P ows esse ts mae video Poche le oe tcf, he toy Being abot a coupe wh Men nee tet ales pon, fa op and tn us tgabr agate ale CCD wa reaigbe eo poe focused onthe cofe proper te insraton oes hough he produ Basa hat been o- a no aiory month kha sacred prom cote vague ae Strange octony ole acoso a cation ole ed Banglore, Pune and Kolkata where the young customers could up 2ve-wordform on why they found co Mae wtaorable den. The winner from each city was lown to Debio get a makeover by an ate moxeling gency and supply of anew wardrobe created by the design house M20 Coe, Nuancing the Experience to Suit the Climate—Summer and Winter cu fee consumed, the ratio goes up to 66 inthe urwner sccoursforeiy 34 co of vey 0 pst oles ensued, eons te noes: the youth can hang out. Could there be a better pace ro hang out on 8h a growing business bands which the cafés represent, are going to make a grown "i ae che premium sqrt dominate by Sebuck and, th oP eS reece Coffee Day reno ony ging const, but row oper woh Mee 2 Oo met fac th ale place so ruch empha onde experened SCT, io ee ompetaon towards exceling on tat nt People, we refering have started Todoy, aon dtr roorai The ran Ties Ma 26, 2006 an Spare | 006 Da May 16, 2010 and The indy, October 20,2012