indian coffee market
DESCRIPTION
Capturing India’s Percolating Coffee MarketTRANSCRIPT
Capturing India’s Percolating
Coffee Market
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
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.
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
CASE OVERVIEW
Untapped market
Targeting and positioning of market
Increasing the coffee consumption
Creating a new entry point
Expanding network
Road block of ahead
COFFEE CONSUMPTION
0
2
4
6
8
10
12
1412
109 8.7 8.4 8.2 7.9
6.86
4.5 4.6 4.4
0.085
Country
Kil
ogra
ms
Tit
le
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
GLOBAL COFFEE GIANTS EYES ON INDIA
Market expansion on a faster rate
Urbanization is expanding
Coffee drinking – Fashion
Growth in the disposable income
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.
“ 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
TOP COFFEE BRANDS IN INDIA
• Nescafe
• Tata Coffee
• BRU
MAJOR COFFEE PLAYERS IN INDIA
MARKET SHARE IN INDIA
34%
40%
20%
4% 2%
Barista
CCD
Mocha
Qwicky
Georgia
(Source: from case study)
RICH QUALITYQ POOR QUALITY
LOW PRICE
HIGH PRICE
COMPETITIVE STRATEGY
STRATEGY BEHIND EXPANDING THE NETWORK
Joint Venture Favorable Government Policies Revamp in the menu card New location Different Flavor
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
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
CHARTS OF OUTLETS
• RETAILERS• PRESENT• FUTURE• Dunkin Store• 1 ( by 1st 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
HURDELS
1. Huge real estate cost
2.High rent cost
3.Low menu price
4.Manpower
5.High turnover
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
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
WEBLIOGRAPHY
• www.indiacoffee.org• www.casestudyinc.com• www.coffee.wikia.com• www.slideshare.net• www.youtube.com
THANK YOU