BARISTA AND CCD
Coffee Market in India
Cafe culture has grown by leaps and bounds in the country and cafes have become a hotspot for the young and old alike.
Coffee Bars have become more of lifestyle in major cities as we are heading towards development. Tremendous growth in the industry in the last 2 years Consumers are open to trying out new concepts & brands. Annual spend on eating out (organized + unorganized segments) – Rs.35,000 crores
Coffee Culture – An Opportunity
Coffee - 2nd most popular drink after tea across India. Widespread acceptability amongst the population. Easy to manage. Good return on investment Relatively lower costs.
High Profit Margins.
Easy availability of manpower across the country
Coffee Culture – Business Facts
From the first outlet in December 2004, at present, a target to expand with at least 10 outlets by the end of 2007. Already commands 90% of the organized Coffee market and more than 80% of the organized Burger market in the city. 15,000 customers served every month. 65% guests are repeat guests.
Sony Taj-Group Tata Teleservice Lacoste Elle-18
• Was started in 1996
• Has over 430 café in India. • Has presence in Austria and Pakistan. • In FY06-07, Cafe Coffee Day's turnover was Rs 400
oMeeting place for 15-29 year olds o• Want their customers to grow with them o• Marketing associations with youth-oriented brands like oLevis, TVS, Airtel, AOL o• Affordability o• Well lit and respectable, yet informal
Launch 25 café a month – Never be more than 5 minutes away from a CCD
SWOT Analysis: Strength:
oLarge Number of outlet. oIn house sourcing of coffee beans. oTie Ups with good companies.
oLimited Target Audience. oFollow the competitor strategy. oQuality of food- Stale breads. oLoud and Hard Music. oImproper sitting arrangement.
•Large Untapped Market •Tie-ups with other companies for promotion.
•Entry of Foreign players like Georgia, Starbucks etc. •Large unorganized market.
Marketing Mix Pricing:Product at an affordable price. Pricing is one of the important weapons for them to fight
against their competitor
Positioning:CCD “Value for Money”.
Promotion:Customer Loyalty Program Magazine Tie-upsEBD Book Café Himalaya Levi`s Movie-launches
Physical Evidence:“First Impression is the Last Impression”. Vibrant atmosphere Wood and steel interiors Lime green, yellow, orange, and purple Lounge areas and a few beanbags.
Process:Flexible delivery system