COFFEE WARS IN INDIA

CAFE COFEE DAY TAKES ON THE GLOBAL BRAND

GROUP B ASSIGNMENT 2
Anupriya
Arindham Sinha
Ashok Saikia
Dakshesh Patel
Dev Agrawal
Juhi Gandhi
Preet Kuriya
 TIMELINE - COFFEE DAY COMPANY

Founder: V.G. SIDDHARTHA (1959 – 2019)

Amalgamated Bean
Coffee Trading Company
Limited (ABC) Launch of the café
business
1994
1993 2013
Market leader with 1,469
Started acquiring
Café & $200 mil revenue.
coffee plantation &
One of the largest
Processing units
exporters of coffee 18
International outlets
 Indian Coffee Market

COMPETITIO IMPORT/EXPO
CONSUMER MENU
N RT
Barista
Indian Indian Industry Indian coffee
Lavazza, Costa
Students, focuses its chains were
Coffee, Mocha
Young Adults marketing effort customizing
Coffee, Coffee
& on export their menus to
Bean & Tea
Professionals promotion suit regional
Leaf etc.
tastes
Food Service (cafes) Instant Coffee (retail) Specility Coffee (fresh coffee & beans)
 CCD SWOT Analysis
• Lack of individual attention to
• First mover advantage
loyal customers
• Excellent brand name and visibility
• Unavailability of fresh food
• Quality, service and taste
• Market penetration of coffee
• Youth oriented brand
bars is 5%
• Reduction in cost

S W

O T
• Fastest growing industries in Asia • Competition with Barista,
• Merchandising Mochas, Gloria Jeans, Costa
Coffee & Starbucks
• Tie ups with other companies for promotion
• Presence of other ‘Hangout’
• Tapping smaller market
locations
• Cheaper varieties of coffee • Unorganized market
• Dependent on government
commodity rates 
 Coffee Day`s Marketing
Strategy
Targeting Product Price Promotion
• Coffee
• Youth • Low price • Youth focused
• Food
• 15-36 yo activities
• Merchandising
• Middle & upper • Brands, Movies
• Exporting
middle classes & Print media
coffee
Tie-up

Physical
Place People Process Evidence
• India:200+ • Hospitality • Bright Red
• Service
cities • Positive & Logo
• Self-service
• Overseas: 18 Polite • Trendy
• Take away
outlets Décor/Atmosph
• Urban areas ere
 STARBUKS
CHINA VS INDIA

Entry Year: 1999

Partnered with three local brands Starbucks India

High end, Status symbol Entry Date : 2012
Standardized shops (Fuzhou exception) Joint Venture with Tata Global
Successful Entry , Long run success High end, Global

Localized Shops (local craftsmen)

Starbucks China
Successful entry, but future not
guaranteed
 Starbucks SWOT
Analysis
• Starbucks is recognized for its high
• Establish brand name coupled with the
prices
trustworthiness of TATA
• Considered a place for elite class to
• No.2 in the market
hangout
• Perception of Higher quality products
• Lack of presence in non-metro cities
• Youth oriented brand
• Relatively small product breadth
• Great customer service
• Slower service
• Reduction in cost
• Large coffee range

S W

O T
• Emerging markets from India, Asia & •  Global Policy Conflicts
China • Presence of other ‘Hangout’ locations
• Interest in Western Brands in Indian • Largely unorganized market
minds • Established competitions
• Targeting rapidly growing Indian urban
youth
• Well defined plan to expand in the next 5
years
 Starbucks Marketing Strategy

Product Price Place Promotion

• Coffee • Premium price • Airports, malls, • Advertising
• Fresh Food Items for premium well knows • Personal selling
• Handcrafted product places • Sales
Beverages • Higher income promotions
• Starbucks Ice group location • Branding in
Cream Films & media
• Merchandise
 CCD STARBUKS
VS
Rs. 66 for one small Cappuccino Rs. 95 for one small Cappuccino
Affordable Price Pricing Overpriced

1469 stores all over India No. of Stores 11 stores all over India

Revenue Starbucks was generating

CCD is generating $2000/day at their
best locations generation $2000-$4000/day

Mostly teenagers and college Age group Mostly working professionals

students under 25 above 25

Customer On par if not higher than

Not up-to expectation
Service 5-star hotels

Acquired high-street location early Real Estate In easy expansion stage

STP Analysis CCD Vs STARBUCKS

CAFÉ COFFEE DAY STARBUCKS

Segmentation

CCD has its main consumer base in the age Starbucks has its main consumer base in the
group of 20-50 years. age group of 25-40 years.

Targeting

Middle class and upper middle class youth Seeks to target is from middle to high income
Seeks to target not just the youth but anyone office workers with a desire to purchase
who is “young at heart” premium products.
Medium Price band Location convenience

Positioning

CCD Positions itself to fill the gap between a Starbucks positioned themselves as a perfect
local store and a 5 star hotel and it can be and little expensive coffee shop that will offer
affordable by young people who just want to customers delicious and rich coffee.
hangout from the nearby areas.
79%

59%
 Premium
High

Multiple
Premium
Aspirational

Average
Affordable
Average
Low

Single format
 CCD COURSE OF ACION
SLIGHT COURSE OF ACTION AGGRESSIVE ACTION

Increase breadth of menu Raise no. of Squares and Lounges to 25%-

30%
Upgrade interiors

Improve quality of food & beverage

CCD Upgrading 200-300 stores per
offerings and service level
COURSE OF year

Might spend $3 million on

ACTION
advertising to build it brand

Double or triple on brand spending

Upgrade 150 stores a year
 ACTION PLAN

1 Keep the cost leadership untouched

2
Enhance the staff recruitment process

3
Upgrade in-house training & development programme

4
Improve food and beverages range and quality

5 Improve the café interiors and overall ambiance

6
Spend more on promotion to strengthen CCD brand
THANK YOU