Case Study: Strategies That Barista, Cafe Coffee Day and Qwikys Have Adopted in Indian Market

Strategies adopted by Barista:

Barista established in 2000 in New Delhi was the largest and fastest growing coffee chain in India.
Barista positioned itself as a lifestyle brand with Italian neighborhood. Barista was the leader in
espresso coffees. Barista was made with top grand Arabica beans and brew masters from Italy were
invited to create blends. Alliance with Tata coffee would supply food items like baguettes, croissants,
cookies, sandwiches, pastries and desserts. Every month it introduced and focused on a particular
type of coffee. The idea was to change customer’s occasional indulgence and make it a habit and
educate them about the original coffees. It also developed store-in-store concept by focusing on
themes that compliment coffee, such as music, books and art. Barista entered into marketing tie-ups
with planet M, crossword and Ebony to set up it Espresso’s at the corner. It also wanted to enter into
co-branded marketing tie-ups with several banks for credit cards. The company also entered
branded merchandising with caps, coasters, co’s and cups. Barista entered home brew segment with
freshly grounded coffee. The company extended its product portfolio from roasted coffee range to
single origin coffee. Barista’s single origin coffee powder has a status symbol. It was planning to
enter the international market. Barista planned to tie-up with ABN amro for opening “Banlafes”. This
concept helps to ‘bank at leisure” enabling customers to visit the bank after banking hours on any
day in an informal and friendly environment. It even tied up with BPCL to open coffee kiosks.
Barista’s adopted a strategy on which it segmented itself to the elite class. This class has high
potential because these people associate with anything that is of status symbol. They spend very
high. So Barista choose this segment contains people with big designations like MD’s, Doctors, CEO’s
and people belonging to elite class. They like to be in a place which is classy and luxurious like
Barista. This segment has high potential.

Strategies adopted by Cafe Coffee Day:

Cafe Coffee Day offered an informal ambience with bright and eye-catching interiors. Visitors could
sip coffee, browse the internet, conduct business meetings or just while away time with friends. Cafe
Coffee Day was well looked as a cool-hangout for college crowed and teenagers. This promoted
young artists and displayed their paintings on their walls. In 2001, a new logo was chosen leaving the
old one which was bit old fashioned. The interior were redesigned and new menu was also
introduced along with the new crockery. The baseline also changed to “A lot can happen over
coffee”. Musical events were organized to attract youth. “Cafe jockey” was introduced which
selected children above 15yrs and gave them 1 week training. In addition to the commercial and
residential clusters in metros, Cafe Coffee Day’s also targeted other locations like corporate houses,
airport, hospitals and shopping malls. Cafe Coffee Day priced its products 20% lower than its
competitors. Cafe Coffee Day positioned itself as a mass market brand, mini-metros were also added
to its list. It targeted the middle class, upper middle class, house wives and students. The prices are
less compared to the other two. This segment has high potential and great buying power and has
great market share.

Strategies adopted by Qwiky’s:

Qwiky’s strategy was that to make their customers make them feel comfortable and have fun. The
staff at Qwiky’s was trained to understand body language. They were very frankly with the
customers. Qwiky’s objective was to target the “young at heart” that were looking for fun and
relaxatation. They offered different varieties of coffee. Customers were given a choice of drinks that
were not common in India. It had a separate vending area for chocolate products. Qwiky’s coffee
pubs were located at strategic points which were frequented by youth. Qwiky’s pubs were located at
intersection of roads in a corner were two side of cafe were made of glasses and faced the road. It
even had coffee making machines for sale and also a trainer to teach how to make perfect espresso.
It also planned to launch ready to drink coffee sachets. Their prices were based on the real-estate
prices in that particular area. Qwiky’s positioned itself as a place were people can come for fun and
relaxation it targeted people who having fun and young at heart. People who were quite interactive
and friendly were appointed as staff to make their customers feel comfortable and while away their
time. It was a place to hangout.

Conclusion:

The strategy adopted by Barista would suit the Indian market. Barista came up with uniqueness in its
interior with Indian neighbourhood. It also offered several services along with serving coffee. Several
international varieties of coffees are served in Barista. The ambience was great. The perfect Italian
varieties of coffees were served with brew masters from Italy. They came up with single origin
coffees and attracted with the niche set of consumers. Many varieties of coffees are served in Barista
people feel very comfortable. It also serves food items like pastries, sandwiches. People started
thinking that Barista has become a status symbol. So they wanted to associate themselves with
Barista. It’s planning to go international into many countries. It’s even planning to co brand with
several banks for credit cards. People of India always wanted something new and different. So
Barista’s strategy perfectly suits the Indian market.

Case Study: Zara’s Entry into Indian Retail Fashion Market

Zara is an extremely renowned brand, known for its latest designs and is among the top 100 best
global brands in 2010 .It uses the unusual strategy of zero advertising and instead invests the
revenue in opening new stores across the world. Zara is popular amongst old and young generations
too because it is affordable fashion. It is crystal clear that Zara is successfully living upto the standard
of its two winning retail trends firstly, it is fashionable and secondly it is low in price thus resulting in
a very effective mixture out of it.

The Louis Vuitton fashion director Daniel Piette also described Zara as “possibly the most innovative
and devastating retailer in the world.” They control most of the steps in the supply chain and also it
designs, produces and supplies itself.

Taking into consideration the amount of competition and the need for sustainability in the human
race, running a business or a brand is not an easy task. With existing big brands and busy markets
around the world, it takes more than what is required to make a name for oneself and to succeed in
it. Proper management and marketing strategies are required along with the detailed knowledge of
the economy and the earning and spending of the locality or the country’s GDP (Gross Domestic
Product) which measures the country’s economy and their ability to spend and grow should be
known before taking a leap and spreading the arms around the world. This essay discusses about
which mode of entry strategy Zara adapted to entered into the Indian market and whether the
strategy proved to be beneficial for the company and the benefits/disadvantage sit is going tackling
and lastly it also analyses in which country it is doing better and why.

Zara adopts a ‘Fast Fashion’ supply chain model. The latest fashions are supplied from design to
delivery in just 2 weeks, compared to the 6 month industry average. They operate a vertical supply
chain, so they themselves undertake everything from design, manufacture, sourcing and
distribution. This allows them total control over the business, and leaves them less vulnerable to
accusations of unethical practices such as sweatshop labour.

Entry strategy of Zara in India

While Zara owns a majority of its stores in Spain, the international expansion has adopted three
different entry modes: Own subsidiaries, Joint ventures and Franchising.

According to the Indian policy on foreign direct investment (FDI), Zara teamed up with the Tata
Group, India, to form a joint enterprise in February 2009. Inditex has a share of fifty one percent of
this collaboration while Tata’s subsidiary Trent Limited holds forty nine percent. Owing to several
issues the Corporation undergoes, their extension of the store will stay slow, with just one additional
store open Zara is the following Spanish Retailer to come into India, after Mango, even though
Mango adopted the contract route to enter into the Indian market.

Jesus Echevarria Hernandez, Chief Communication Officer at Inditex Group. Says that “The entry in
the Indian market has a significant strategic importance for Inditex. India is one of the top priorities
in the Asia region when our retail offering has been very well received,” .

To enter the market in India, Inditex (the company behind Zara) used the strategy of pursuing a joint
venture with Trent Limited, a Tata Group company, a highly recognized clothing line distributor. Zara
took up joint ventures as its mode of entry in India because this is a co-operative strategy in which
the manufacturing facilities and know-how of the local company are combined with the expertise of
the foreign firm in the market, especially in large, competitive markets where it is difficult to acquire
property to set up retail outlets or where there are other kinds of obstacles that require co-
operation with a local company to which Zara regards its stores as one of the related elements in its
business sculpt. The shop is regarded as the boundary among the buyer and the motor of the whole
business – mode design, development, logistics and finally retail.

The main concerns that Zara had wile entering into the Indian market were Demography and cultural
concerns. Speaking of demography India has a population of about 1.2 billion people and the target
market would be no doubt wide than what is expected. As the income become larger in India, there
will be more demand in the quality and fashionable clothing. Cultural Concerns: it is the major
concern that has to be given tremendous attention when entering into a foreign market. It must
accept the perspectives and beliefs of the role of culture in influence and as in India social security is
given special attention.

In order to effectively achieve their goals, Zara pursued a strategy of selling a variety of its local
clothing lines and international clothing lines, but maintaining Zara as the primary brand in India.
Zara also targeted the larger positions including either the first or second positions in the Indian
market of clothing lines. Any of these positions would be sufficient enough for Zara to create an
outstanding level with regards to manufacturing, marketing and distribution. These positions can set
up a stage from which Zara can sell their clothing lines and other special fashion products.

To promote the organization and its clothing lines, Zara utilized video advertisements, print ads and
the idea of e-marketing which fulfilled the varying needs of consumers from India and beyond;
particularly those priority Indian markets or the consumers in the urban India areas. For this
promotion campaign, the perfect information that Zara Company utilizes is “Providing quality and
fashionable clothing lines that fulfills your needs. Zara has been able to set up its reputation as one
of Spain’s primary clothing line companies for several years now. It is able to rise up to the
challenges in most of its markets directly . This is made possible through the efficient promotional
and positional strategies established in order to maintain not only large profits, but also on
establishing the foundations of Zara’s clothes and fashion trends. The promotional strategies of Zara
in India are easily implemented by the local employees themselves which enables the organization
to vastly improve without the burden of implementing costly technologies. These initiatives can also
lead in improved financial profit for the organization and will enable the foundation of networks for
Zara clothing lines in India.

Target Market

Zara has maintained a reputation for targeting the teenagers, those in their twenties and even the
individuals considered young at heart. This is a customer sector that other clothing companies have
previously ignored in place of the adult consumers. Zara Company also has the unique strategy of
portraying the generations in their campaigns. These campaigns in India will tell that Zara Company
is not a mere simple clothing line for the next generation; its users are also a generation ahead of
their competitors. Zara Company can establish an image for itself in India as the clothing line for the
present generation. It has discovered that the purchasing power of the youth and the marketing
power of celebrities were similar. They have garnered significant profit gains out of this strategy, and
there is no reason why this won’t also work in India.

Nevertheless Zara undergoes quite a few hurdles like the existing rules on FDI in India require that
foreign single-brand suppliers are obliged to surpass a 49% stake to a resident associate. This
includes the vendor to share its organizations information and data it would usually not reveal.
Moreover, franchising stores means that the merchant loses certain jurisdiction over how these are
operated, which numerous businesses worry that it might harm their brand name. As a result, single-
brand retailers are regularly cautious of entering the Indian market. For a apparel seller akin to Zara,
further considerations contain the relative need of seasonal modification and the separate,
consolidated manner of dress amongst Indian females that differs significantly to Zara’s offered
ranges.
 Why you never see any social media post from Apple

For tech nerds everywhere, it was also the year when the public got a glimpse of an Apple product
before its official release. If you know anything about Apple, you know that this was a huge deal.
When it came to products under development, Apple’s security was airtight. Products were hidden
behind armored doors, coded locks, and even bolted to desks. Above all, there was the Apple secret
police, a team of people that made sure not even a single detail was leaked. Because Apple didn’t
like losing control – of the marketing and the news cycle.

Is Apple Changing?

A decade later, things are changing. The silent corporation with secretive product development and
surprise releases is very much gone. More and more, Apple wants to connect with its users and get
the word out. The best way to do that would be through social media, right?

On Facebook, all posts are just changes to the cover photo. Check LinkedIn, and we find a similar
story – 13 million followers, zero posts.

Is it just because Apple can afford to do this? Or did it miss the boat? Of course not! Apple has a
clearly planned out social media strategy that ties back to how the company has always operated.

A Controlled Experience – Layer 1 of Apple’s Social Media Strategy

Apple’s philosophy has always been one of end-to-end control. Steve Jobs famously insisted that the
computers be closed systems, not allowing user modifications or upgrades. While absolutely
antithetical to the general PC approach, it gave Apple computers an amazing user experience. Flash
forward to today. The recent replacement of Intel chips with the M1 chip in Macbooks is another
step towards the closed ecosystem of hardware and software that Apple preaches.

The same closed approach bleeds into Apple’s use of social media. Social media is invaluable, but an
often cacophonic place. Anyone and everyone can voice their opinion at the click of a button. And
that is expressly what Apple wants to avoid. Apple does not want conversations to devolve into echo
chambers on its social media pages.

This is not to be confused with censorship or avoidance of criticism though. Apple knows that it is a
very polarising company, and to try and avoid negative impressions in any way it sees fit is both
reasonable and judicious.

But trying to have end-to-end control on social media is not just about avoiding criticism. It is also
about providing the best experience to the user and using social media as a tool rather than just a
marketing avenue.

User Service Through Social Media – Layer 2 of Apple’s Social Media Strategy

Perform a search for the keyword Apple on any of the social media websites, and you’ll find that
Apple has created multiple accounts centered around each product/service that it offers. Apple
Support, Apple Music, Apple News, Apple Books, Apple Education – the list goes on.

These multiple spin-off accounts each serve a narrow well-defined purpose. Want help in using an
Apple product? Contact Apple Support. Need updates on whether the latest Taylor Swift album is
available for streaming? Apple Music account is there for you. Apple, instead of using social media as
just a marketing channel, is using social media as a tool to take the user experience further. It wants
to connect better with the users, but on its own terms and with a specific purpose.

Even on websites where Apple does not seem to follow this social media strategy, look closely and
you’ll find the similarities. On Instagram, Apple’s page exclusively posts #ShotoniPhone pictures,
curated to project the powerful camera tech of the iPhone. Similarly, Apple’s YouTube channel only
posts ads and keynotes, while disabling comments. Clarity of purpose and focus define this layer of
Apple’s social media strategy.

There’s one more benefit of having spin-off accounts about each service – division. If there’s a
problem with Apple Books and a lot of people are talking about it, someone just following Apple TV
is unlikely to notice. This point ties in with the first layer of control discussed above – the user is
protected from unwanted noise.

But the question that arises now is – why have these silent accounts at all?

Capitalizing on Strengths – Layer 3 of Apple’s Social Media Strategy

The answer to the above question goes back to Apple’s core marketing strengths – creating hype
and utilizing word of mouth marketing.

Right from its iconic 1984 ad to the current era, Apple has relied successfully on word of mouth
marketing. At any time, there are hundreds of thousands of people talking about the brand online,
through Facebook or Instagram posts, tweets, blogs, and what have you. A point of reference is
needed for these conversations, something for them to converge around. And these silent social
media accounts serve as the convergence.
As more people tag the same accounts, more people start noticing it. And then more people talk
about it. Having these points of reference generates a cycle that feeds into the hype that is the
Apple brand.

A great example of this is the custom ‘like’ that Twitter recently created. The like button swirled into
a colorful heart when someone liked a tweet with #AppleEvent. It became wildly popular, with users
liking and re-liking tweets, and creating memes and jokes, with Apple raking in all the hype that had
been created with this move.

Apple has also started releasing products to influencers to get people talking about them. For
example, when the iPhone X was released in 2018, the first people allowed to talk about it were
YouTubers, even before traditional media outlets. Contrast this with the iPhone 4 incident
mentioned above, and you’ll realize how much Apple has changed. Of course, on getting these
freebies, most influencers say positive things about the products, helping feed into that famous
word of mouth marketing.

How Apple Changed, and How Apple Stayed the Same

With people buying more and more things online, Apple does not have the advantage of
meticulously planned out retail experiences anymore. Further, people are buying tech less
frequently, so Apple can no more afford to sit back and let its brand bring in customers. These
factors forced Apple to come out of the secretive shadows and connect directly with the user. And
that needed to be done where the users are – Facebook, Instagram, Twitter, LinkedIn, YouTube, and
other social media websites.

Apple didn’t miss the boat when it comes to social media. Instead, Apple carefully planned out a
strategy that harks back to its core values of providing the best service to the user through end-to-
end control of the experience, generating word of mouth marketing simultaneously.

Conventional social media wisdom says that this should not work. But Apple can afford to not only
get away with pursuing this very unusual strategy, it has perfected it to great success. That’s because
when your brand is that iconic, (strategic) silence is golden.