Coffee Wars in India -Café Coffee Day Takes on the Global Brands

1.Priyanka Agarwal11.Fahad Dossani 51.Komal Vasoya

The Coffee Shop Market in India

• Hot beverages – a part of Indian tradition • Coffee took the first seat in south India • To spread the drink – coffee shops emerged • Indian ( RTD ) Domestic coffee market – INR 1100 crore • Growth – 2250 crores by 2017

Overview

Market Share

Café Coffee Day

• Founded in 1996 • V.G. Siddhartha-Founder and Chairman• 1497 outlets across 142 cities• Average footfall: 300 per café per day• Vertically Integrated• Short purchase cycle• Zero Channel Distribution

The Café, Lounge and Square CafeCafe• Chairs very close – customers complain of intrusion of

privacy• Affordable hangout for the young crowd

Lounge• Outstanding ambience – commendable service • Meal for two @ INR 750

Square• For absolute Coffee Connoisseurs• Coffee Snobbery Lounge

Starbucks• Founded in 1971• Howard Schultz- Chairman and CEO• Tata Coffee – Tata Starbucks• 84 outlets (May 2016)• C.A.F.E Practices-ensuring quality • Long purchase cycle • Brand Positioning

Segmentation, Targeting and Positioning Parameters Starbucks CCD

Segmentation People looking for coffee with experience

Youngsters looking to hangout with friends

Targeting Upper middle class Youngsters – college students and working professionals

Positioning Great Coffee. Great Service

A place between office and home

8Ps of Services

• Product-Coffee with great taste - Personalized coffee with great taste

• Place -SB in metros and cosmos - CCD in tier I and tier II cities

• Price - A meal for two @ CCD 350 - A meal for two @ Starbucks 750

8Ps of Services

• Promotion -CCD Print ads on

newspapers, magazines, tie up with multiplexes, movie

associations- Social Media ( Starbucks )

• People - more pleasant, polite, positive at Starbucks than CCD

•Physical Environment - Classic Interiors at Starbucks - Trendy and bold interiors at CCD

8Ps of Services

• Process - Self Service @ Starbucks - Partly self service @ CCD

• Production Quality

- Great coffee great taste.

ChallengesStarbucks:• Amount of store closures• Competitors• Limited outlets• Not an affordable price

CCD:• Customer Service• Rural Employees• Cost of Land• Managing outlets

Starbucks vs CCD: Verdict:

• So, after all points being considered for Starbucks vs CCD, it is obvious that Starbucks is quite the winner here.

• It is giving quite a good competition to CCD.