Barista coffee company Ltd.

Presented by- Devesh, Arunjay, Ratnesh

Introduction

This case is based on emerging coffee industry and how Barista established itself as a brand in India. This case deal with Baristas distribution strategies, product and pricing strategies. This case also show the increasing competition in coffee industries and Baristas dilemma abut franchises. Means case deal with Baristas external and internal profile.

Facts

• Barista coffee retail chain was started in February 2000 with an initial capital of Rs.20 crore.

• It was promoted by Java company coffee Ltd. Which belongs to turner Morrison group.

• In 2001 Tata coffee acquired 34.3% equity share in barista.

• In 2004 Tatas sold its stake in Barista to Sterling group.

• Now barista had came under the full ownership of the Sterling group.

• Sterling group was a south Indian based diversified business conglomerate, promoted by C. Sivasankaran.

• In India two type of coffee lovers one were southern part of India who preferred to have a cup of coffee early in the morning, and second were the intellectual who shared strong bond with coffee.

• India contributed 3% of worlds coffee production.

• The consumption had grown from 68,000 tonne in 2002 to over 80,000 tonnes in 2005.

• The annual average coffee consumption in India as low at 10 cups per person.

• Indian spent 53% of total expenditure on food, beverages and tobacco.

• The upwardly mobile Indian families spent 63% of their income on food out of which 6% eating out.

• Coffee Day one of the largest exporter of coffee with total sales of over 300 crore in 2005.

• Barista had 45% of its consumers come for coffee.

• Barista offered more than 21 verities of coffee.

Competitors

• Café Coffee Day• Qwiky’s• Starbuck• Other MNCs like Coca Cola India,

HLL

Product

• Barista provide large number of verity product with quality.

Price

• Location based price

Place

• In 2005 Barista opened 130 outlets in different cities.

• Barista tied up with ICICI, ABN Amro, PVR, EXL for opening coffee corner.

• They more focused for outlets in South India rather than North India.

Promotion

• Barista promote their product by Word of Mouth.

• CRM• SRM

Process

• They redefine service delivery process.

• Coffee was served by ‘Baristas’ who were expert in the art of making coffee.

Positioning & Targeting

• Barista positioned itself as a fine café.

• It projected itself as an experiential coffee.

• Barista targeted professional, Families, Working couples.

HRM

• For motivating to employees Barista offered ESOP, Employee of month.

• They feels employees are the first customers.

International Market

• Barista want to increase market globally.

• Barista open its outlets in Sri Lanka and UAE.

Thank you