Cafe Cofee Day Mohamed Hasan 5890164 Mohammed Alsiari-
7572441
Yuktika Pahwa Anuja Patil Wasif Raza Agenda Introduction Porters 5
Forces Analysis SWOT Analysis
Marketing 4Ps Recommendations Risk Analysis Questions Introduction
In 1995, V.G Siddhartha opened the first Caf coffee Day (CCD) in
Indias political and commercial capitals. Within few years CCD
expanded to close to universities and companies. Current market
leader in India 60% market share as of April 2013. Current Industry
Barista, Costa Coffee, Dunkin Donuts and Lavazza still exist in the
market with a minor imposed threat on CCD. Starbucks opened 13
stores in India through a joint venture with Tata Group ( Indian
multipurpose company) which has an excellent infrastructure. How to
approach the entrance of Tata Starbucks to the market.
Problem? How to approach the entrance of Tata Starbucks to the
market. Porters 5 Forces Analysis
Threat of New Entrants Substitutes Retail property acquisition
Large Capital Investment Staff training Coffee bean suppliers
Bistro and bakery Furniture availability and affordability
Compliance with food and beverage standards Knowledge of local food
and beverage preferences and behaviours Brand acknowledgement and
loyalties Tea beverages black tea, chai, mint, ice tea, etc.
Restaurant that can offer a variety of beverages. Bars and alcohol
drinks Non-espresso beverages Cold beverages Protein shakes and
power drinks Soft drinks Soda Porters 5 Forces Analysis
Competitive Rivalry Power of Suppliers Indian coffee market is in
growth period Exclusive agreement with coffee plantations Owning
coffee bean plantations and distributions network Access to premium
retail locations Marketing partners to monitor customer coffee
drinking habits and behaviour Consistent coffee quality among many
locations of the same company Coffee suppliers Distributors margins
Exclusivity agreements with coffee companies Bistro bakeries
Proximity of coffee plantations to coffee shops Furniture
manufacturers and prices to manufacture customized dining areas to
a certain company Porters 5 Forces Analysis
Power of Buyers Affordability of foods and beverages. India is a
high price sensitive country and the prices should reflect the
local economy. Following factors have to be considered: Food and
beverage quality Interior ambience Variety of products (Quantity
and Quality) Services provided (Customer Satisfaction) SWOT
Analysis Strengths Weaknesses
Well established in India with ~1400 stores and kiosks %60 market
share, first in coffee market Own coffee producing fields Limited
bar cultures, coffee houses are the alternative 60% of customers
are regular, loyal Manufactured their own vending machines and
furniture (cutting costs) High retail property costs Low customer
service satisfaction Access to premium realty locations Increasing
cost of renovations and salaries to keep up with Starbucks
Challenge to retain customers Changing strategies away from coffees
(E.g. Breakfasts did not work) SWOT Analysis Threats Other Factors
Employees turn overs
Similar prices in CCD squares as Starbucks may shift some customers
to Starbucks. Getting edged out of premium retail locations.
Massive renovations costs Aggressive approach toward Starbucks
Promising Trends The hype around Starbucks entry is over Benchmark
Tata group provide coffee plantations and premium location It has
the power to keep Starbucks in media, more advertising Able to
afford higher salaries SWOT Analysis Opportunities:
Joints ventures with retail groups to provide premium retail and
share costs. Brand lounges and squares differently than CCD to
justify their different prices among different locations. Marketing
4Ps Price: Place: They own their Coffee plantations
They manufacture their own coffee machines Price sensitive
customers They maintain a reasonable pricing strategy Place: Half
of the stores in urban areas 1469 stores, 1000 takeaway outlets,
450 fresh retail coffee, vending machines. Slightly high retailing
prices. Marketing 4Ps Product: Promotion
Variety of Coffee and Iced beverages. Ready to eat sandwichs,
burgers and desserts. Local food items: Samosa and Chicken Tikka.
Lounges have separate kitchens and chefs. Promotion Sells T-shirts,
bags, coffee mugs, etc. Tickets for Concert and allows shooting
movies at their stores. 60% of the CCD customers are regular
visitors. Recommendations Invest research on cutting down costs at
the Squares and Lounges. Introduce Family areas to broaden the
market segment. Introduce loyalty cards to maintain high percentage
of loyal customers. Enhance customer satisfaction by increasing the
salaries of workers and improve training system. Gain more feedback
from customers by creating discounts for surveys and having
suggestion boxes. Risk analysis Recommendation Risk Mitigation
Research to cut down cost
Could be expenditure of unnecessary capital Focusing on lounges and
squares close to Starbucks Family areas price sensitive customers
Hold the idea until further information is provided regarding
Starbucks. Customer satisfaction Prices increase in order to pay
higher salaries. Focus on customer satisfaction in locations close
to Starbucks. Loyalty Cards Decreasing profit margin Start the
functionality of cards only in locations close to Starbucks.
Questions
Top Related