2. 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
3. COFFEE-STORY
Café bars have flocked like CCD, Barista, Mocha,
Qwiky’s etc
Became famous and even 5 star hotels started
cashing on it.
Coffee house started emerging at various places in
the country.
4. 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
5. CASE OVERVIEW
Untapped market
Targeting and positioning of market
Increasing the coffee consumption
Creating a new entry point
Expanding network
Road block of ahead
7. 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
8. GLOBAL COFFEE GIANTS EYES ON INDIA
Market expansion on a faster rate
Urbanization is expanding
Coffee drinking – Fashion
Growth in the disposable income
9. 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.
10. “ 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
16. CREATING A NEW ENTRY POINT
1. Pilot-testing Bru World Café in
Mumbai with four outlets
2. Roast green coffee beans in
partnership with the Tatas.
3.
franchise agreement with
Domino's pizza chain
17. CREATING A NEW ENTRY
POINT
deals with leading oil companies like
HP,BP Indian oil for setting up
cafes in gas stations across India.
4.
5. Java Green from the Reliance Group
began life as a cyber café in 2003
18. CHARTS OF OUTLETS
• RETAILERS
• PRESENT
• FUTURE
• Dunkin Store
• 1 ( by 1
st
Quarter 2012)
• 30
• Gloria Jeans
• 16
• 200
• Costa Coffee
• 73
• 300
• The Chocolate Room
• 2
• 40
• CCD
• 1132
• 4000
RETAILERS PRESENT FUTURE
Dunkin Store 1(by 1 quarter 2012) 30
Gloria Jeans 16 200
Costa coffee 73 300
The chocolate Room 2 40
Café coffee Day(CCD) 1132 400
19. HURDELS
1. Huge real estate cost
2.High rent cost
3.Low menu price
4.Manpower
5.High turnover
20. 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 company’s brand image
21. 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