Capturing Indias Percolating Coffee Market

COFFEE-STORY
Previously only a South-Indian drink
Confined to the Rich Brahmin class

Places for lawyers and educated class to hold

discussion.

The drink has now become more of a concept

COFFEE-STORY
Caf bars have flocked like CCD, Barista, Mocha, Qwikys etc
Became famous and even 5 star hotels started cashing on it. Coffee house started emerging at various places in the country.

COFFEE SECTOR IN INDIA

The 6th largest producer of the coffee in the world. Indian coffee has created a niche for itself in the international market. Arabica coffee from India is also well received in international market. Coffee production in India: Karnataka, Kerala and Tamilnadu. which contributes about 99% of total coffee production

CASE OVERVIEW
Untapped market Targeting and positioning of market Increasing the coffee consumption Creating a new entry point Expanding network Road block of ahead

COFFEE CONSUMPTION
14 12 Kilograms Title 10 8 6 4 2 12 10 9

8.7

8.4

8.2

7.9 6.8 6 4.5

4.6

4.4

0.085

Country

COFFEE CONSUMPTION
Per capita consumption of coffee is just 85 grams in compare to other countries. In the annual output of 300,000 tons, domestic consumption is only a third(100,000 tons) India is predominantly a tea drinking nation. Coffee is a staple only in the southern part of the country

GLOBAL COFFEE GIANTS EYES ON INDIA

Market expansion on a faster rate Urbanization is expanding Coffee drinking Fashion Growth in the disposable income

MARKETING SITUATION
Niche coffee retail formal is growing at 10 to 12 percent a year Organized coffee retail business-Rs 25 bn Coffee consumption in India has increased from 55,000 tones to 75,000 tones in the last three years 3 % of the world coffee production Export 80 % of the total produce.

 I may be young, But please take me Seriously

Youth between 15-35 years Students form a majority of customer base Likes to be in group Likes to sit, talk and relax Drinks a cup of Gourmet coffee with added flavours prefers snacks rather than meals

TOP COFFEE BRANDS IN INDIA

Nescafe

Tata Coffee

BRU

MAJOR COFFEE PLAYERS IN INDIA

MARKET SHARE IN INDIA

4% 2%

20%

34%

Barista CCD Mocha Qwicky Georgia

40%
(Source: from case study)

COMPETITIVE STRATEGY
HIGH PRICE

RICH QUALITYQ

POOR QUALITY

LOW PRICE

STRATEGY BEHIND EXPANDING THE NETWORK

CREATING A NEW ENTRY POINT

1.
Pilot-testing Bru World Caf in Mumbai with four outlets

2.

Roast green coffee beans in partnership with the Tatas.

3.

franchise agreement with Domino's pizza chain

CREATING A NEW ENTRY POINT

4.
deals with leading oil companies like HP,BP Indian oil for setting up cafes in gas stations across India.

5.

Java Green from the Reliance Group began life as a cyber caf in 2003

CHARTS OF OUTLETS
RETAILERS PRESENT RETAILERS FUTURE Dunkin Store st Dunkin Store 1 ( by 1 Quarter 2012) 30 Gloria Jeans 16 Gloria Jeans 200 Costa Coffee Costa coffee 73 300 The chocolate Room The Chocolate Room 2 40 Caf coffee Day(CCD) CCD 1132 4000

PRESENT
1(by 1 quarter 2012)

FUTURE
30

16 73 2 1132

200 300 40 400

HURDELS
1. Huge real estate cost 2.High rent cost 3.Low menu price

4.Manpower
5.High turnover

TIPS TO IMPROVE THE COFFEE SHOP REVENUE

Eliminate low-margin item Prepaid gift card program Discount coupons and discounts Control waste and theft Evaluate hours of operation Eliminate bottlenecks in the ordering process

Run employee sales contests

Raise prices to bolster your companys brand image

CONCLUSION
Coffee market focus on promotion rather than expansion of outlets.

Tapped the market with new outlets and offering new services.
Capture the upper segment of the middle class Strives to deliver the best international standard of cafe experience

With more players entering the arena, the challenges around managing costs

WEBLIOGRAPHY
www.indiacoffee.org www.casestudyinc.com www.coffee.wikia.com www.slideshare.net www.youtube.com

THANK YOU