Coffee
India is the largest consumer of coffee. Coffee is now the worlds 2nd most valuable legal commodity after oil. Coffee is grown in 50 countries,consumed in every city on earth and employs 24 million people worldwide
North-South Divide
Per capita annual consumption in India
300
250
Consumtion in grams
200
150
240
100
50
55
0
5
Av e rage India North India South India
A NorthIndian drinks on an average I cup of coffee in a year.There is a great potential for the market to grow.
These cafes allow customers to spend as much time as they prefer In these cafes the staff are not glorifies waiters but are brewmasters ,professionals in the art of making coffee A large chunk of coffee retailing happens through the small coffee outlets The single largest market for Indian coffee remains the domestic market
The product
The product is undoubtedly coffee.But Caf on its agenda has much more than coffee.It is a place that provides a nice ambience,good music,a nice plan to spend some time out with friends.It is much.. more than coffee.
Since the product is more about emotional & self expressive benefits the key to success will be :
Therefore there will be a great potential in packaged coffee marketed as an FMCG.The Caf culture will spark off domestic consumption.
Break up of consumption
Coffee Cafe Development Break-up in India
East 5%
We st 9% North 41%
South 45%
Qwiky's 10%
Price Segments
Super Premium
Comparison of 2 Brands
Barista Barista coffee company February'2000 108 1000 square feet 250 350 customers Caf Coffee Day Amalgamated Bean company 1996 52 110 square feet 200 800 customers
Company Started business Number of Cafes Avg. area per caf Outlets proposed Avg footfall per outlet
The Dilemma
Should Barista target the small niche market or huge mass market??
Solution !!!!!!!!!!!!
The launch of a subbrand called Amoeba endorsed by Barista
BARISTA
Amoeba
From Barista
Amoeba
From Barista
Core identity:A quality service along with an element of surprise,mystery & excitement.Adaptable to changing times. Value proposition:A value offering with quality & excitement. Positioning: Expect the unexpected
Lines
Barista
Amoeba Amoeba
Cafes
Retailing
Cafes
Vending
Retailing
The product
2 absolute different kinds of cafes . Barista Amoeba Amoeba 50 % coffee,50 % snacks & food,more variety of Indian snacks to increase
Product : 65 % international coffee 25% international snacks like Italian & Mexican ,10 % Indian snacks like
Contd
Barista
Ambience:Relaxing,soft music/
Amoeba Amoeba
Exciting,Pop music
contests ,association
with sportstars,celebrities
Self service
Pricing Strategy
Barista
Premium priced.An average bill for 2 will be Rs 150.
Amoeba Amoeba
Priced a little higher than CCD.Eg A coffee costing
Rs 18 at CCD would cost Rs 20.An average bill of Rs 50 .Combo meals Work on margins
Creating differentiation International standards
Work on volumes
Focus on cost reduction through efficiency
Place
Barista
Ownership :Company owned Focus :Consolidation Locations:Most premium areas
Amoeba Amoeba
Franchisees,Master franchise : Company owned Expansion with standards Crowded youth areas
Shopping malls,multiplexes
Promotions
Barista
Corporate membership Personalized CRM
Amoeba Amoeba
Student membership Monthly winners
Credit accounts
24 hours service
Sports promotions
Inhouse events like MTV, Music releases
Sponsorships of Music
Concerts,Art exhibitions,
Contd
Barista
Amoeba Amoeba
None
Brand Ambassador:
Amitabh Bachchan
No inhouse selling of apparels,shoes,Cds etc.Though some show windows might be there in case of cross promotions & sponsorships.
2 brand strategy
Successful examples like Gilette Happy news & Holiday Inn hotels from Mariott. Advantages of a double brand policy: Brands can focus on their segments. Barista can become a monopoly in its niche segment. Both the brands can have a rub off effect from each other. The Brands can enrich & revitalize themselves. Parent-Child relationship Parent:Successful,sophisticated Child:Energetic,Aspiring
Brand Ambassadors
Barista
Amoeba Amoeba
The first Caf Coffee Day was opened in Brigade Road in 1996, Bangalore's busiest shopping area. At that time, the caf culture had still not arrived in India. In that sense, Caf Coffee Day is the pioneer of the concept in India. Over the years Caf Coffee Day currently owns and operates 79 Cafs in all major cities in India.
Mission Statement
The Cafe
Each caf, depending upon its size attracts between 1000 and 2500 customers daily, mainly between 4pm and 7 pm.
Product Mix
The significance of the Colours RED stands for leadership and vitality. It also stands for passion ( for coffee). The GREEN stroke harks back to our coffee growing heritage and the coffee plantations that we own.
Rapid expansion
Expansion spree Revamp of image Change in logo Redesigning interiors New range of colours New menu Change in crockery Change in baseline a lot can happen over coffee
Target segment
An in-house research shows that Caf Coffee Days customers are mostly young college students and young professionals:
Age between 15- 29 yrs - outlets designed to look young and trendy vibrant colours lime green , yellow, purple , orange
Positioning
World class coffee experience at affordable prices. It specializes in Coffee and tries to create an ambience, wherein one can relax and enjoy their cup of coffee.
Customerss profile
Customers of Cafe coffee day
Age profile
Age Profile of Customers
40 35
37.9
Percentage
30 25 20 15 10 5 0 >45 35 - 44 30 - 34 25 - 29 20 - 24
22.4
24
5.5
5.3
3.3
15 - 19
Age Group
USP
Exclusive relationship with plantation division of the amalgamated beans co Enjoys cost advantage because of diest access to coffee beans from cos 5000 acre plantations
Competitors
Barista Qwikys Craze- not just coffee Small restaurants & Stalls
Future Threats
Singapore based Coffee Club Ltd. all set to enter Indian markets Starbucks Fast moving consumer goods company Hindustan Lever Ltd (HLL), in the line of Cafe Coffee Day and Barista, may soon open coffee parlours in the country.
Any customer who bills a minimum of Rs 100 on a single bill is automatically eligible for membership to the Cafe Citizens Programme. Members will also receive surprise gifts from Indiatimes Shopping when they reach a total billing amount of Rs 2,000, Rs 5,000, and Rs 10,000.
Regular feedback from customers- feedback forms in all outlets t know tastes and preferences Juke boxes in few outlets
Pricing
The price of items ranges from Rs.5 and goes up to Rs.35, which is a very reasonable rate and does not pinch one's pocket Coffee products priced between Rs. 10 Rs. 35 10% - 20% cheaper compared to other coffee chains in India
The coffee starts at Rs 15 and desserts go up to 60 bucks (for a sinful ice cream sundae)
Promotion
BHARAT Petroleum Corporation and Cafe Coffee Day, Ltd, announced an alliance to open Cafe Coffee Day outlets in select BPCL petrol pumps. The outlets will be stand-alone cafes or kiosks or coffee counters at the BPCL retail outlets.
Customer Profile
Customer profile of Barista
Some Facts
Promoted by Java Coffee Company, now along with Tata Caf in Feb 2000. Total Value Rs.75 crores Total area Over 1,00,000 sq. ft. 35,000 customers any day, average time spend 45 minutes. 20% visit daily and 46% walk-ins are women.
Existing Strength
Planning to open 250 outlets and achieve sales turnover of Rs. 100 crores by March 2003. The word 'Barista' means 'a bartender / expert in the brewing and making of coffee', and is Italian in origin.
They have off-premises outlets like the ones Barista has opened at ICICI, GE, e-Excel, Triburg and Taj hotels. Opened up recently in Srilanka.
Target segment
Average age - 21 yrs Up market Caf Professionals, Working couples, and families in SEC A & B categories who detest the loud ambience of coffee pubs Has weaned away customers who used to frequent 5 star hotels for good coffee.
Product - Coffee
Uses 92% Arabica The reason for it being costly. Taste Bitter Pays more attention to coffee rather than ambience. More than 10 varieties.
Sources of Coffee
Along with coffee procured domestically, it also sources coffees of foreign origin from their respective markets. The latter facility is a strong point for Barista, in that Italian coffee preparation style is central to international coffee drinking habits.
Product - Mix
From traditional favourties such as Cappucino, Espresso Macchiato, Espresso Italianno, Cold Brrrista, Frozen Coffee, sandwiches, and variety of desserts, breads like Panini Cappucino Rs. 40, Usually above Rs.30
The Cafe
Choice of locations
Basically metros or larger towns. Choose locations with a high turnout of youngsters and residential areas for the upper segment. Not much of attention is paid to parking or other facilities except for the size of the caf.
Logo
Positioning
Positioning
Seeks to position itself as Fine Caf and not just a Coffee Pub the way others have positioned. Espresso served in a soft caf ambience at the right price. Ambience and experience of a typical Italian neighborhood espresso bar.
Competitors
Other coffee bars
Qwikys Caf Coffee Day Craze Not just Coffee South Winds
Employees
They are trained under genuine Italian Baristas
A Barista competition for employees - The Barista who wins the event will represent India at the global competition in Boston.
Proposals
Shop Online: bringing the coffee culture to the younger generation , which is constantly on the internet, surfing & chatting. Portals are the way to mkt coffees. Educate the customers about the virtues and finer pts of coffee drinking Business Gifts & Rewards : make good business sense. Coffee break essentials: choc. Medallions, etched barista glass mugs, coffee maker
Cont..
Barista Cart: a lightweight card with a fully automatic espresso machine with a built in chiller..can be wheeled to any location