RAHUL PRATAP SINGHA54

BATCH 2013-15

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• Worlds 2nd most traded commodity after Crude• Organized coffee retail business-Rs 25 bn• Every day, about 2.25 billion cups of Coffee are consumed in the

world• Coffee Consumption Jumps by 5% in 2012, Emerging markets to

reach 50% of global coffee consumption by 2020• India is the sixth largest coffee producer and seventh largest

exporter in the world, with an annual output of 300,000 tons• The nation's per capita consumption of coffee is just 85 grams,

compared to 4.5 kilograms in France, 4.6 kilograms in Japan and 6 kilograms in the U.S

Src: http://www.ico.org/historical/2010-19/PDF/TOTPRODUCTION.pdf

Overview

Rivals

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04/11/2023 3SRC: http://www.trademap.org/open_access/Product_SelProduct_TS.aspx

Rival Name Year of Establishment Kiosks (approx.)

CCD 1998 1350

Barista 2000 450

Costa Coffee 2005 250

TATA STARBUCKS 2012 7

Harvest and Consumption pattern•Market to grow by 40% in the coming years•Nearly 3,90,000 Harvested Area (ha) is under coffee cultivation in India. Of this, 70% are small farms of less than 10 (ha). •A vast majority of coffee is grown in the three southern states of Karnataka (71%), Kerala (22%) and Tamil Nadu (5%).•According to an industry estimates, the global consumption of instant coffee has shown an annual average growth of about 6% in the last decade from 70,000 MT to 1,02,000 MT till the year 2009.

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• Focused on differentiation, brands and quality

Growth

• Trade, health benefits, organic and origin

Added advantage

The way forward

• Being a late entrant we have to focus on growth and brand image building• As,Customer Delivered Value = Total Cost Benefit + Total Buying Costtherefore we have to increase the Cost benefit factor by providing good space to relax after work and value for money

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Business Overview

• 17,000 stores in 55 countries, Seattle-headquartered brewed an agreement with Tata Coffee, India's largest coffee producer

• In Karnataka, a few regions where coffee is produced include Chikmagalur, Coorg, and Mysore

Trade path (Now)

Dedicated Path (Proposed)

• Elimination of free Market traders who take benefit of Coffee producers will help in bringing down the cost

Farmers Traders Processors

Farmers Processors End User

End User

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Strategy• Company wants to create a DA by providing :

Best ambienceLocal menu optionsFocus on young demographic from Middle class

• Include more variety- youth centric- flavor of week• Self service for faster operation, evaluate hours of operation• Equitable distribution of capital b\w ads and expansion of kiosks

Long Term Vision

• We all win or else nobody does• Observe to develop new strategy- If we listen they will tell you• Buyers perception determines, sellers approach• Every supporting statement begins with acknowledgement

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Bibliography• http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4607• http://www.ico.org/new_historical.asp?section=Statistics• http://www.coffeehabitat.com/2010/12/certified-market-share-part-1/• http://www.trademap.org/open_access/Product_SelProduct_TS.aspx• http://en.wikipedia.org/wiki/Economics_of_coffee• http://powerpress.coffeetalk.com/files/ncamar.html• http://www.ico.org/event_pdfs/seminar-consumption/rabobank-e.pdf• http://asiancorrespondent.com/97958/middle-class-india-embraces-coffe

e-culture/• http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4607• http://www.ico.org/historical/2010-19/PDF/CONSUMPTION.pdf

04/11/2023 RPS

Thank you

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