MARKETING PROJECT

COFFEE RETAIL CHAINS

Beverage Industry
† The total beverage industry in India was being estimated to grow at 17% by 2011 † Total beverage consumption will grow at 9% over the next 20 years. Of which, alcoholic beverage and nonalcoholic beverage will see a spurt of 9.6% and 8.8% respectively. † Growing health consciousness among India·s young population has brought about a revolution in the Indian non-alcoholic drinks market. † More than 500 coffee cafes in the country, up from 175 in 2002

Evolution of coffee shops in India 
Shift from tea consumption to coffee  Change attributed to demographic, economical & cultural changes  Coffee shops give a westernized and youth appeal  More than 1200 cafes exist across the nation  Average growth at 40%  Most organized retailed segments with the turnover of Rs. 1000 crores  Efforts being made to reach out to the masses by penetration strategy

Evolution of coffee shops in India 
Key players ‡ Barista ‡ Café coffee day ‡ Costa Coffee ‡ Café Mocha  Prospective players ‡ Starbuck ‡ UK·s Coffee Republic ‡ Malta·s Cafe Jubilee ‡ Australia·s Coffee Club Group

BARISTA

Company's Profile
† Barista coffee was established in 2000 † Barista exists in over 22 cities, and operates over 140 outlets nationally. † In the last 2 years, Barista has opened over 100 outlets in the country and with a new outlet opening nationally every 14 dates † In 2001, the TATA group had purchased 34.3% of share in Barista. Early in 2005, TATA Coffee Ltd sold its stake in Barista. Barista has since been acquired by the Sterling Infotech Group.

Strategies
† Lifestyle brand with Italian neighbourhood † Brew masters from Italy to create blend † Alliance with Tata † Make customer·s occasional indulgence into a habit † Store-in-store concept with specific themes † Branded merchandising † Home brew segment ² fresh coffee

Core Competencies
† Effective supply-chain management † Quality of coffee beans and technology involved in making coffee
† Usage of top-grade Arabica Beans † Brew-masters from Italy to create blends † Best Italian Machines for brewing

† Employee management

Marketing Mix
PRODUCT
† Beverages † Food † Health Zone † Merchandise

PLACE
† Cater to their target market with strategically located outlets † Outlets generally located at High Street/ Family Entertainment Centres - in and around Malls, Cinemas, Colleges, and Offices etc.

Marketing Mix
PRICING
† Barista has a ¶Skim Pricing Policy· † Currently, their prices are the lowest they have ever been † Ensures that consumers think they are getting high quality products/ service

PROMOTION
† Rely more on sponsorships and strategic alliances with other corporations † Advertise in industry journals, on the Internet, and on our website † Attend/sponsor exhibitions and trade shows; Continual PR: press write-ups; personal interviews; testimonials; product trials

CAFÉ COFFEE DAY

Company's Profile
† Division of India·s largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company Limited (ABCTCL) † Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore † Mission: ´To be the best Cafe chain by offering a world class coffee experience at affordable pricesµ † Divisions : Coffee Day Fresh ¶n Ground; Coffee Day Xpress; Coffee Day Take Away; Coffee Day Exports; Coffee Day Perfect

Strategies
† CCD·s wide network ² the anytime, anywhere café † Lower pricing and ¶no-segmentation· approach † Positioned itself as a mass market brand

Marketing Mix
PRODUCT
† Food † Beverages † Merchandise products

PLACE
† To place a cafe in every possible location where some business can be generated

Marketing Mix
PRICING
† Priced between Rs50 ² Rs80 † Reasonable pricing considering their target group in mind. TG falls between 15-30years

PROMOTION
† Ticket sales † Cross branding ² tie ups † Movie tie ups (In line advertising) † Through Television † Sales promotion

COSTA

Company's Profile
† Costa Coffee, launched its outlet in New Delhi, India in a franchisee agreement with Devyani International in 2005 † At present, Costa has 40 outlets operational across India † Costa Coffee also plans to enter the wholesale coffee business in India and aims to open 300 outlets † Costa Coffee is expected to face stiff competition from domestic players like Cafe Coffee Day and Barista, who are embarking on a rapid expansion plan across the country and also from foreign players like Starbucks

Strategies
† Closing unprofitable locations & segmenting strategy for different locations † Changing the look and feel of outlets & customizing the menu to better suit the Indian palate † Expanding only in metros † Penetrating more in the south † Setting up kiosks in marriages, and seminars † Balancing traditional international coffee and light snack offerings with a more robust food menu, along with wine and beer

Core Competencies
† Establishment of local management and employees. † Franchise policy

Marketing Mix
PRODUCT
† Beverages ² hot coffee, cold coffee † Food ² snacks † Alcoholic Drinks ² wine, beer † Merchandized products

PLACE
† The perfect locations in terms of exposure, accessibility and competitive edge have been acquired † Metros, Tier I cities

Marketing Mix
PRICING
† The prices of all the products are comparatively higher at but this is offset by the outstanding quality and discerning tastes at Costa † One of the reasons for choosing the privileged and higher middle classes in the target market is the prices

PROMOTION
† Low key promotion strategy † Word of mouth † Advertisements in major newspapers † Billboards

MOCHA

Company's Profile 
Started in 2001 at Mumbai, Mocha displayed a electric Indo-tibetan worldly theme & fresh worldly coffee  Ambience inspired by the Quahveh Khannehs of Morocco and Turkey  Currently holds 20 outlets across the country

Strategies 
Differentiation through ambience and offerings  Gradual increase in number of outlets  Grow as a place to savor coffee and ambience and not as a commodity coffee retail  Leveraging on strengths rather than working on weaknesses

Core Competencies 
Product differentiation  Positioned and perceived as a premium brand  Better quality  Ambience and layout

Marketing Mix
PRODUCT
† Arabica coffee † flavored thick shakes † supper varieties † snacks † beverages † desserts † sheeshas

PLACE
† Spread across the nation † located at places accessible to the customer base of this premium brand

Marketing Mix
PRICING
† Comparatively expensive † Marked almost 15-20% above the competitors

PROMOTION
† Word of mouth † Social media † café mocha communitiesMocha Bike club, Mocha film club etc. † Events & music concerts. † sales promotion strategies

GROUP MEMBERS
† Swathi Ravichandran † Suruchi Sapru † Shraddha Ganwani † Rashida Kachwala † Ramya Nagesh † Pragya Gupta

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