50347318 costa coffee final

8/22/2019 50347318 Costa Coffee Final

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Group 4

International Companys India Operations

The Usual Suspects:

31 Hardik aik3! "alpesh a#lakha33 Gaura# ayak34 $isha ikam3% Shrikrishna &alekar3' &rasad &alle(ad3) Saura*h &andey3+ ,anish &a(ar3- Shreya &oo.ary

4/ Sneha &or(al


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History o0 Costa Co00ee

Bruno and Sergio Costa set up their coffee roastery inLambeth, London in 1971, supplying local caterers andcoffee shops with their slow-roasted blend mocha talia

Costa branched out to retailing coffee in 197!, whentheir first store opened in "au#hall Bridge $oad,London, %ngland

n 199&, the business was ac'uired by (hitbread and isnow a subsidiary of (hitbread Company

n )**9 Costa celebrated the opening of their 1***th

store in Cardiff, and is conse'uently the largest coffeechain in the +


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O00erin2 the 0inest co00ee Costa has a (ide ran2e o0alternati#es includin2 hot chocolate teas and in0usionsiced co00ees 0rescato

Costa has its o(n roastery and employs the only threeItalian ,aster 5oasters in the U"6 The *lend ser#ed inretail stores is kno(n as 7,ocha Italia7 and contains si8parts ara*ica *eans and one part ro*usta *eans

Costa Co00ee employs Gennaro &elliccia as the o00icialco00ee taster (ho had his ton2ue insured 0or 91/m (ith

loyd;s o0 ondon in !//-


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Its Signature Coffees Contents


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Costa Co00ee International Story

Operates in !% di00erent countries throu2hout the (orld

Currently has around 11)% stores in the U6" and another 44/ in


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Competition in U6" B Costa Co00ees home market

Source: 5oden*er2 and Tillman =ssociates U6"


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?as a(arded as the *est co00ee shop a(ard in U6" andIreland *y the


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?hy IndiaF

Or2anied retail co00ee market is (orth morethan 5s6 1/// cr6

Ay ne8t three years it (ill *e dou*led6

Co00ee chain sectors 2ro(in2 at !%@3/ on a

yoy *asis

Source:


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Gro(th in terms o0 num*ers

Increase in the no6 o0ca0es :

!//%: 33/

!//': %!/

!//): )//

!//+: -%/

!//-: 1!//

0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009

NO. of Cafes

Source:


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Gro(th in terms o0 Sales

Increase in Sales: DinUS millionE

!//%: 3/

!//': 4%

!//): +/

!//+: 1!/

!//-: 1%/0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009

Sales(in US$illion!

Source:


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Costas Competitors

Ca0 Co00ee day B -)/J ca0es 1/ re#enue 0rommerchandise sales

Aarista a#aa B !!/ outlets

Gloria Keans D=ustralian ChainE B 1! outlets in ,um*aiAan2alore and $elhi % re#enue 0rom merchandisesales

=tleast 3 international *rands alon2 (ith Star*ucks :Co00ee 5epu*licDU6"E Co00ee Clu*D=ustraliaE and Ca0Ku*ilee D,altaE lookin2 to set up outlets in India

Source: >inancial Chronicle Kan !/11


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"araeter In#ia U.$

&rice Sensiti#ity Lery Hi2h ,oderate

Occasion oods and other *e#era2es ,oderate Lery Hi2h

= Comparison *et(een the U6" and India Co00ee Tastes


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Insi2ht

Moun2 a00luent middle class like to drink co00ee

ike to di00erentiate themsel#es 0rom older

2eneration

inancial Times B Nuoted *y ,$


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Strate2ies Implemented

Took ease 5entals at Hi2h &rice6 Had to shut 1/@1!shops

&lan : >ocus only on ,etro cities a#oidin2 Tier 1 !

since Costa is an ur*an 0ormat location plays a crucialrole

e( strate2y in#ol#ed:

@ Chan2in2 the look 0eel o0 outlets @ Customisin2 menus to *etter suit Indian palate

@ Se2mentin2 strate2y 0or di00erent locations

Source B uoted *y Santhosh Unni B C


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5estructurin2

Identi0ied 4 "ey =reas:

@ =irports ,alls IT parks Hi2h streets

?ant to penetrate South India hu2e co00ee drinkin2

population : 3 ,a.or metro cities B Aan2alore ChennaiHydera*ad

Indian tastes catered :

@ &aneer tikka Chicken tikka sand(iches o00ered alon2(ithslo(@roasted Italian co00ee

@ ,o2iano B com*o o0 ,u2hlai Italian


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e( strate2y attempts to *alance @

Traditional international co00ee li2ht snack o00erin2s (itha more ro*ust 0ood menu alon2 (ith (ine *eer 0or the

0irst time

aunched ne(@a#atar 0la2ship store in e( $elhi

Introduced o00@premise *usinesses : @ settin2 up o0 kiosks at (eddin2s seminar meetin2s

5estructurin2 strate2y B a success

@ re2istered !4 2ro(th in last Nuarter o0 !//-

Source B >inancial Chronicle B Kan 1/!/1/ uoted *y Santhosh Unni B C


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Se2mentation

$emo2raphic :

Students and Moun2sters

&ro0essionals

>amilies

Income: Hi2h


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Tar2et and &ositionin2

Mouth

Students

&ro0essionals >amilies

&ositionin2: >inest Co00ee deser#es the>inest >ood

,o#in2 0rom u8ury to Con#enience


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4&s


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"er%e&tion 'a&

(ange

"ri%e

Hi2h

o(

Hi2h o(


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"orter)s *i+e *or%e

'o#el

o(

,-reat of

sustitutes

,-reat of ne/

entrants

0argaining

&o/er of

u1ers

0argaining

&o/er of

su&&liers

,edium


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India can a*sor* upto %4// ca0es accordin2 to HarishAi.oor

Costa Co00ee can e8pect intense competition as ma.or

co00ee players like Star*ucks plan to enter the market

&lans to open !%/@3// outlets *y !/14

=ims to 2ro( *y 1%@1) in the ne8t 0e( years to co#er losses(hich (ill take place (hile openin2 ne( outlets

Source B >inancial Chronicle B Kan 1/!/1/ uoted *y Santhosh Unni B Cuture 0or Costa Co00ee


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Thank Mou

50347318 costa coffee final

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