1. Cafe Cofee Day Mohamed Hasan – 5890164 Mohammed Alsiari- 7572441
Yuktika Pahwa
Anuja Patil
Wasif Raza

2. Agenda Introduction Porter’s 5 Forces Analysis SWOT Analysis
Marketing 4P’s
Recommendations
Risk Analysis
Questions

3. Introduction
In 1995, V.G Siddhartha opened the first Café coffee Day (CCD) in India’s 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.

4. 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.

5. How to approach the entrance of Tata Starbucks to the market.
Problem?
How to approach the entrance of Tata Starbucks to the market.

6. Porter’s 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’

7. Porter’s 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

8. Porter’s 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)

9. 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)

10. 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

11. 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.

12. Marketing 4P’s 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.

13. Marketing 4P’s Product: Promotion
Variety of Coffee and Iced beverages.
Ready to eat sandwich’s, 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.

14. 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.

15. 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.

16. Questions