Case: Coffee Wars

Avdhesh
Isha Singhal
Jai Rajwar
Diya Kaushik
Kumari Astuti
Somya Saxena
What is your valuation of Starbuck’s initial entry strategy and vision for India? What are
Starbuck’s advantages? What would be your major concerns?
• Combined Endeavor with the biggest corporation TATA Group
Preliminary • Primary forceful valuing at the inauguration.
Entrance • Vertical Integration Corporate Model
and Idea • Deluxe setting

• Product Acknowledgement and Worth (Same influence of Tim Hortons

when they entered India in 2023)
Advantages • When they crossed the threshold, Coffee culture was already
popularized by CCD
• Brand Responsiveness due to luxury valuing and prestige mark.

• Retaining of personnel due to great remuneration by Starbucks.

Concern • Overgenerous surroundings
• Agile and farfetched pricing of the products
Take a vote: As VG Siddharth and Venu Madhav, how would you respond to Starbuck’s
entry?

Apportioning the menu into -Upgradation of about 300 stores

ordinary and luxury, which will per year.
permit changeable food and -Triple Brand Outlay to upsurge
expense ranges. marque and brand alertness.

Madhav

Creating and encouraging a

Refurbishing the interiors and gear detailed system of constant change
like furniture of CCD which will act in the organisation which makes
as imperative to get the competitive things simplified and better to
upper hand. understand for the customers
If you were in Siddharth or Madhav’s shoes, what are the most important short
term and long-term goals?
Mixed
Happy Hour Assortment of
after 7PM for Restaurant and
Coffee café, for
Entrenched
distinction
Introducing Spreading
Publicizing via CCD-Café out the CCD
Loyalty Package
movies and TV Bookstalls Squares
Shows
Long Term
Short Term Goals
Goals
Broadening
Early outlets near
Engagement of morning take workplaces,
a Robust Brand Promo Offers out only for to attract
Ambassador
coffee working
To better the personnel
Atmosphere and
general customer
CSR Events
involvement
Sun Tzu says that you need to know yourself (as well as your enemy). What are CCD’s
competitive advantages as it enters in a battle with Starbucks? What are the potential
disadvantages or challenges that it must confront?

Cafeterias and bistros who sell alcohol are still a taboo in India, so CCD
gave a innocent space to the youth for mingling.

CCD branded produces and Merchandise are Marque and Trademark

Competitive faith as it is the spearhead
reasonably priced when contrasted with to tap into the café coffee
Advantages Starbucks. culture in India

Better-quality consumer Amplification of Homegrown Indian

associations through stores in small cities ready-to-serve set
emotive attachments and towns. menu.
Disadvantages and Challenges of CCD
DISADVANTAGE
Starbucks presented an extraordinary
salary slab as compared to CCD,
which stimulated the major talent to
move from CCD to Starbucks.
Uninteresting environment of CCD,
formed a very boring experience for
the regulars.
When Starbucks decided to make its
mark in India, they partnered with the
TATA group which gave a home-based
lead to them.
CHALLENGES
Make an attempt to change the
fondness of public from tea to coffee
was an gruelling job for CCD
It had a huge risk of contest from foreign
brands such as Barista, Costa Coffee, and
lastly from Starbucks, which basically
engulfed the market for sometime
Starbucks brand acknowledgement from
all across the globe makes it a towering
beverage brand and this transmits a
severe challenge for CCD.
Graphical Representation Of Exhibit 5 in the article
Economics of a CCD Café (February 2013)
Amount($) Percent
0% 0% 35% 19% 13% 6% 27%

85000 7200 2520 1368 936 504 1872

Store Setup Costs Monthly Sales Cost of Goods Rent Salary Electricity EBITDA
Amount($) 85000 7200 2520 1368 936 504 1872
Percent 0% 0% 35% 19% 13% 6% 27%