barista vs cafÉ coffee day

7/28/2019 BARISTA VS CAF COFFEE DAY

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BARISTA VS CAF COFFEE DAY


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Coffee

India is the largest consumer of coffee.

Coffee is now the worlds 2nd mostvaluable legal commodity after oil.

Coffee is grown in 50

countries,consumed in every city onearth and employs 24 million people

worldwide


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Coffee Retailing in India

Estimates : By 2005 , India would be home to

5000 coffee houses

Sunrise sector expected to notch up Rs. 3000

crs by 2005

For a generation high on appearances , money

to spend,coffee bars are a timely mean

between five stars and Udipis


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North-South Divide

Per capita annual consumption in India

55

5

240

0

50

100

150

200

250

300

Average India North India South India

Consumtioningrams

A NorthIndian drinks on an average I cup of coffee in a

year.There is a great potential for the market to grow.


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These cafes allow customers to spend asmuch time as they prefer

In these cafes the staff are not glorifieswaiters but are brewmasters ,professionals inthe 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


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World coffee market statistics(in mn

60 kg bags)

For the year

ending Sept

30,2002

1997 199

8

1999 2000 200

1

2002 2003

Production 103.

8

97.5 108.

4

113.

3

117 110.

7

122.

1

Total use 108.

9

103.

1

110.

3

116.

5

114.

7

114.

3

117.

9

Ending

Stocks

29.1 24.7 24.3 21.3 23.6 20.1 24.3

Ending 27 24 22 18 21 18 21


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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 :

1. Branding ,branding & branding

2. Segmentation,targeting & positioning


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The Domestic consumption

Domestic consumption

Present domestic consum pti on of co ffee is 60000 tonnes

Per capita consumption is 46 grams

According to some estimates in 3 years

India's production of coffee 300000 tonnes

75000 tonnes

Caf required 50140 caf

Number of caf at the end of 2004 950 caf

We will never have more than 6000 caf

Number of caf at the end of 2002

Number of caf at the end of 2003

256 caf

600 caf

Therefore there will be a great potential in packaged coffee

marketed as an FMCG.The Caf culture will spark offdomestic consumption.


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Break up of consumption

Coffee Cafe Development Break-up in India

North

41%

South

45%

East

5%

West

9%

North

South

East

West


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Market size of players

Approximate market size (100 crores)

Barista65%

Caf Coffee Day

20%

Qwiky's

10%

Others

5%

Barista

Caf Coffee Day

Qwiky's

Others


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Comparison of 2 Brands

vg. area per caf

Started business

Company

Barista

Amalgamated Bean company

Caf Coffee Day

1996

Number of Cafes

Outlets proposed

Avg footfall per outlet

Barista coffee company

February'2000

108

350 customers 800 customers

52

1000 square feet 110 square feet

250 200


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The Challenges-3 Years hence

How do the brands remain relavant with the times??

How do they respond to competition from international players like

Star Bucks??

How do brands maintain quality standards along with rapid growth?

What should be the strategies in the new paradigm?

Product MixBrand strategy & positioning


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The Dilemma

Should Barista target the small niche market or huge

mass market??

Solution !!!!!!!!!!!!

The launch of a subbrand called Amoeba endorsed by

Barista


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BARISTA

Amoeba

From Barista

Targetted to eliteniche market

Targetted to massyouth market


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The Brand -

Brand Essence :Change/Adaptablity

Core identity:A quality service along with an element ofsurprise,mystery & excitement.Adaptable to changing times.

Value proposition:A value offering with quality & excitement.

Positioning:Expect the unexpected

A brand built mostly on surprise promotions & events.

Amoeba

From Barista


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The Change factor

The Amoebas will wear different uniforms daily.

The crockery might be changed from time to time.

There will be surprise promotions & winners.

There will be surprise items in the menu .

Even the settings might be changed.


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Targetting & Positioning

Barista Amoeba

Target market :Executives,Business Youth & Genaration X

man,professionals,elite class

Postioning :International experience A quality offering atTo relax & unwind affordable price delivered

with excitement

Amoeba


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Lines

Barista Amoeba

Cafes Retailing

Cafes RetailingVending

Amoeba


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The product

2 absolute different kinds of cafes .

Barista Amoeba

Product : 65 % international coffee 50 % coffee,50 % snacks

25% international snacks like Italian & food,more variety of

& Mexican ,10 % Indian snacks like Indian snacks to increasePastries ,puffs etc footfalls & revenue.

Coffee type : Mostly Arabica Mostly Robusta

Amoeba


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Contd

Barista Amoeba

Ambience:Relaxing,soft music/ Exciting,Pop music

Classical music,books & magazines contests ,association

Games like chess,scrabble. with sportstars,celebrities

Service :by educated Baristas Self service

Customized Coffee

Self made coffee

Amoeba


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Pricing Strategy

Barista Amoeba

Premium priced.An average Priced a little higher than

bill for 2 will be Rs 150. CCD.Eg A coffee costing

Rs 18 at CCD would cost

Rs 20.An average bill of

Rs 50 .Combo meals

Work on margins Work on volumes

Creating differentiation Focus on cost reduction

International standards through efficiency

Amoeba


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Place

Barista Amoeba

Ownership :Company owned Franchisees,Masterfranchise : Company owned

Focus :Consolidation Expansion with standards

Locations:Most premium areas Crowded youth areas

Prestige clubs,Golf courses Shopping malls,multiplexes

Alliances:Bancafe,

Blue chip corporates Good college campuses

Amoeba


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Promotions

Barista Amoeba

Corporate membership Student membership

Personalized CRM Monthly winnersCredit accounts Sports promotions

24 hours service Inhouse events like MTV,

Music releases

Sponsorships of Music Cross promotions with

Concerts,Art exhibitions, Cross words,Music

world,Planet M,Apparels

Amoeba


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Contd

Barista Amoeba

Brand Ambassador: None

Amitabh Bachchan

No inhouse selling of apparels,shoes,Cds etc.Though someshow windows might be there in case of cross promotions &

sponsorships.

Amoeba


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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


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Brand Ambassadors

Barista AmoebaAmoeba


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CafCoffee Day

Caf Coffee Day currently owns and operates

52 cafes in all major cities in India.

It is a part of India's largest coffee

conglomerate named Amalgamated Bean

Coffee Trading Company Ltd.( ABCTCL ),

Rs. 200 crore ISO 9002 certified company.


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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 CoffeeDay 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.


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Mission Statement


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Product M ix


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The significance of the Colours

RED stands for leadership andvitality. It also stands for passion (

for coffee).

The GREEN stroke harks back to

our coffee growing heritage and the

coffee plantations that we own.

R id i


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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


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200 outlets ,400 coffee retail stores,turnover of Rs.650 crores byMarch 2004.

Coffee day- VendingMore than 3000 vending machines at

high traffic zones serving fresh filtercoffee by march 2004

For travelers , office goers who are ahurry


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Target segment

An in-house research shows that Caf CoffeeDays 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


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Customerss profile

Customers of Cafe coffee day

Males

60%

Females

40%

Males

Females


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5.5 5.33.3

22.4

37.9

24

0

5

10

15

20

25

30

35

40

Percentage

>45 35 - 44 30 - 34 25 - 29 20 - 24 15 - 19

Age Group

Age Profile of Customers

Age profile


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USP

Exclusive relationship with plantationdivision of the amalgamated beans co

Enjoys cost advantage because of diestaccess to coffee beans from cos 5000acre plantations

Provides world class products ataffordable indian prices


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Competitors

Barista

Qwikys

Craze- not just coffee

Small restaurants & Stalls


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Future Threats

Singapore based Coffee Club Ltd. allset to enter Indian markets

Starbucks

Fast moving consumer goods company

Hindustan Lever Ltd (HLL), in the line

ofCafe Coffee Day and Barista, may

soon open coffee parlours in thecountry.


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Any customer who bills a minimum of Rs 100 ona single bill is automatically eligible formembership to the Cafe Citizens Programme.

Members will also receive surprise gifts fromIndiatimes Shopping when they reach a total

billing amount of Rs 2,000, Rs 5,000, and Rs10,000.

Regular feedback from customers- feedback forms in alloutlets t know tastes and preferences

Juke boxes in few outlets


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Pric ing

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. 10Rs.3510% - 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)


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Promotion

BHARAT Petroleum Corporation andCafe Coffee Day, Ltd, announced analliance to open Cafe Coffee Day

outlets in select BPCL petrol pumps.

The outlets will be stand-alone cafes orkiosks or coffee counters at the BPCLretail outlets.


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Customer sat isfact ion and retent ion

Bangalore, July 1, 2002 - Caf Coffee Day

announced the launch of the first customer loyalty

program"Caf Citizens Program" launched through

NetCarrots Loyalty Services to reward regularcustomers ofCaf Coffee Day.

Caf Coffee Day is the first caf chain in India to

introduce a customer loyalty program.


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Customer Profile

Customer profile of Barista

Males

40%

Females

60%

Males

Females


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Common trend amongst all the

coffee bars They all go for youngsters

The outlets are designed for young people in the age

group of 15 - 29 to hang out - preferably for hours, no

sweat. With air-conditioning and music, messageboards full of wise-cracks, indoor games such as

chess, scrabble and pictionary.

These pubs are virtually an extension of the college

canteen, but thoroughly upscale versions.


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What sets Barista apart??????

From the point of view of:

Customer - It comes across as a pepped

up, modern version of Indian Coffee Housein the 70s.

Company The coffee bean, the machine

and the brew master

S F t


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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.


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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 theones Barista has opened at ICICI, GE, e-Excel,Triburg and Taj hotels.

Opened up recently in Srilanka.


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Target segment

Average age - 21 yrs

Up market Caf

Professionals, Working couples, andfamilies in SEC A & B categories who

detest the loud ambience of coffee pubs

Has weaned away customers who usedto frequent 5 star hotels for good coffee.


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Product - Coffee

Uses 92%ArabicaThe reason for it

being costly.

Taste Bitter

Pays more attention to coffee rather

than ambience. More than 10 varieties.


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Sources of Coffee

Along with coffee procured domestically, italso sources coffees of foreign origin fromtheir respective markets.

The latter facility is a strong point for Barista,in that Italian coffee preparation style iscentral to international coffee drinking habits.


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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 aboveRs.30


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Experience The Differentiator

Overall it has been as a coffee experiencebut not restricted to coffee. Though 67 percent of its revenues come from beverages,

Barista, seeks to be more of a lifestyleexperience.

A place to hang out and not a just a cafor eating joint.

Th C f


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The Cafe

Experiential Life Style Brand


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Choice of locations

Basically metros or larger towns.

Choose locations with a high turnout of

youngsters and residential areas for theupper segment.

Not much of attention is paid to parking

or other facilities except for the size ofthe caf.


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Logo

Positioning


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Positioning


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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 typicalItalian neighborhood espresso bar.


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Promotions and Tie - Ups

Absolutely Everyday Contest - the perfect vehicle

for the Star TV and Barista to reach out to its

audiences as it combines the best of the

entertainment world with good coffee.

Tie ups with Singapore Airlines, Evian, CNBC,

Planet M, PVR Cinemas

With Lacoste To sell their products


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Competitors

Other coffee bars

Qwikys

Caf Coffee Day Craze Not just Coffee

South Winds

Pubs, College Canteens, HangoutJoints


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Employees

They are trained under genuine Italian

Baristas

A Barista competition for employees - TheBarista who wins the event will represent India at

the global competition in Boston.


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What are they???

Whats Barista?

Term for a coffee

brewmaster and thepeople serving are

called Baristas.

Whats Amoeba?

Dynamic, Vibrant,

Lively. Keepschanging its form.

The people serving

will be called

Amoebas.


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We welcome the coffee pub

culture. The gap b/w the struggling coffee

vending machine at the corner store &the expensive 5 star coffee shops hasbeen filled.

A quiet revolution is sweeping urbanIndia with the proliferation of Italian style

coffee-bars.


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Proposals

Shop Online: bringing the coffee culture tothe younger generation , which is constantlyon 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 goodbusiness sense.

Coffee break essentials: choc. Medallions,etched barista glass mugs, coffee maker


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Cont..

Barista Cart: a lightweight card with a

fully automatic espresso machine with a

built in chiller..can be wheeled to anylocation


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What Customers Say????

Barista, relaxing, chilled out Justto your senses.

The atmosphere here smells so cool Its easier to change ones religion tan

ones coffee

WORK: the stuff that you do b/w coffeebreaks

East or West, Barista is the best.

barista vs cafÉ coffee day

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