CoffeeCoffeeCoffeeCoffee----storystorystorystory• Previously only a South-Indian drink

• Confined to the Rich Brahmin class

• Places for lawyers and educated class to hold • Places for lawyers and educated class to hold

discussions

• The drink has now become more of a concept

CoffeeCoffeeCoffeeCoffee----storystorystorystory• Café bars have flocked like CCD, Barista,

Mocha, Qwiky’s etc

• Became famous and even 5 star hotels started Became famous and even 5 star hotels started

cashing on it.

• Coffee houses started emerging at various places

in the country

Coffee Café IndustryCoffee Café IndustryCoffee Café IndustryCoffee Café Industry

• Individual Café

• Hotel Café• Hotel Café

• Retail Café Chains

Global Coffee Giants Eye Global Coffee Giants Eye Global Coffee Giants Eye Global Coffee Giants Eye IndiaIndiaIndiaIndia

• Market expansionexpansionexpansionexpansion on a faster rate

• UrbanizationUrbanizationUrbanizationUrbanization is expanding• UrbanizationUrbanizationUrbanizationUrbanization is expanding

• Coffee drinking – fashionfashionfashionfashion

• Growth in the disposable incomedisposable incomedisposable incomedisposable income

Marketing ScenarioMarketing ScenarioMarketing ScenarioMarketing Scenario

Marketing SituationMarketing SituationMarketing SituationMarketing Situation

• 6%6%6%6% annual growth rate in the past 6 years in the

coffee industry*Source: Coffee Board of India

• India ranks 5th largest coffee producersproducersproducersproducers

• 3 %3 %3 %3 % of the world coffee production

• Export 80 % 80 % 80 % 80 % of the total produce.

• niche coffee retail format is growing at 10 to 12 10 to 12 10 to 12 10 to 12

per centper centper centper cent a year.

• Organized coffee retail business – Rs 2.5 bnRs 2.5 bnRs 2.5 bnRs 2.5 bn

Marketing SituationMarketing SituationMarketing SituationMarketing Situation

• Organized coffee retail business – Rs 2.5 bnRs 2.5 bnRs 2.5 bnRs 2.5 bn

• coffee consumptionconsumptionconsumptionconsumption in India has increased from

55,000 tonnes to 75,000 tonnes in the last three

years

Barista Barista Barista Barista –––– Corporate Corporate Corporate Corporate ProfileProfileProfileProfile

• Established in 1999199919991999

• Spotted immense potential growth growth growth growth in café palours

• Exists in 22 cities 22 cities 22 cities 22 cities and operates over 140 outlets • Exists in 22 cities 22 cities 22 cities 22 cities and operates over 140 outlets

nationally

Barista Barista Barista Barista –––– Corporate ProfileCorporate ProfileCorporate ProfileCorporate Profile

• Has opened 100 outlets 100 outlets 100 outlets 100 outlets countrywide over last 2 yrs

• Marked its presencepresencepresencepresence in Sri Lanka and Dubai tootoo

• Now targetingtargetingtargetingtargeting 22 international outlets including Bangladesh, Bahrain, Qatar, Oman and Kuwait

Product Life CycleProduct Life CycleProduct Life CycleProduct Life Cycle

Product,

Sales, Profit

Sales Decline

Maturity

Growth

Intro

TimeBreak Even PointLOSS

IntroGrowth

Marketing MixMarketing MixMarketing MixMarketing Mix• Product

– Coffee & Tea (Flavours)– Smoothies– Sandwiches– Desserts–

Desserts– Croissants

• Quality Check– Every 14 days– Incorporates TQM at its headquarters

• Merchandise• Primarily, appeals to traditional coffee lovers

Marketing MixMarketing MixMarketing MixMarketing Mix• Pricing– 10% higher than Competitors– Prices are lowest they have ever been– High COGS because of Import duties

• Process– Self Service

• Positioning–Where the world meets

Marketing MixMarketing MixMarketing MixMarketing Mix• People–Well trained employees – to be polite pleasant and positive

– Consistent service at every outlet–

Consistent service at every outlet– Average age – 22yrs– Ensure to have quiet, uninterrupted visit– Uniforms are in sober shades of brown and orange

• Promotion– Sales Promotion

Marketing MixMarketing MixMarketing MixMarketing Mix• Physical Evidence– Logo, colours and images– Décor and architecture– Literature– Literature

• Place– Outlets located in strategic locations– Generally located at High Street/Family entertainment centers', in and around malls and cinemas and offices

“I may be young, But “I may be young, But “I may be young, But “I may be young, But please take me please take me please take me please take me Seriously”Seriously”Seriously”Seriously”

• Youth – between 15-35 yrs• Students form a majority of customer base• Likes to be in group• 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

SWOTSWOTSWOTSWOT• StrengthStrengthStrengthStrength– Strong Brand Image– Excellent Human Resource– Ambience and décor– Strong base for expansion and growth– Strong base for expansion and growth

• WeaknessWeaknessWeaknessWeakness– Average Taste and Quality of Products– Perceived as an expensive brand– Inconvenient delivery process

SWOTSWOTSWOTSWOT• OpportunitiesOpportunitiesOpportunitiesOpportunities– Strong brand recall– Presence of huge number of outlets– PricingPricing

• ThreatsThreatsThreatsThreats– Coffee substitute– Rise in the cost of coffee and dairy products– Competition from national and international players

ProblemProblemProblemProblem• ClutterClutterClutterClutter – difficult to differentiate between different brands

• Lack of loyaltyloyaltyloyaltyloyalty among customers– “I go to CCD when I want to have decent savouries & enjoy cold frappes and chill out with friends”

- Dhiral Parmar

– “ I go to Barista when I want to enjoy the rich flavouredcoffee and the tempting desserts”

- Ankesh Bansal

– “CCD and Mocha are more cozy while Barista has this formal atmosphere”

-Mitali Patel

ObjectiveObjectiveObjectiveObjective

• 1 year strategy1 year strategy1 year strategy1 year strategy

–Increase the footfalls by 30% –Increase the footfalls by 30%

StrategyStrategyStrategyStrategy• Repositioning– Position Barista as a niche coffee bar for the professionals

• Promotions– Events adeliciousadeliciousadeliciousadelicious– Co-sponsor a program on CNBC TV 18 like All About Ads

– Experiential Marketing

Marketing StrategyMarketing StrategyMarketing StrategyMarketing StrategyAdeliciousco f fee w i th your b read n but te r ! !

AdvertiAdvertiAdvertiAdvertising sing sing sing

SSSSituationSSSSituationPPPProblemOOOObjectiveSSSStrategy

SituationSituationSituationSituationHigh Involvement

Café Mocha

FCB ModelFCB ModelFCB ModelFCB Model

Low Involvement

EmotionalRational

Barista

CCD

Qwiky’s

Georgia Coffee

Perceptual MappingPerceptual MappingPerceptual MappingPerceptual Mapping

Café Mocha

High Price

Low Price

Formal AmbienceCasual Ambience

Barista

CCD

Perceptual MappingPerceptual MappingPerceptual MappingPerceptual Mapping

Café Mocha

High Price

Low Price

Poor QualityRich Quality

Barista

CCD

Brand ImageBrand ImageBrand ImageBrand Image

• Brand for anyone who loves coffee

• Where the World meets• Where the World meets

• Appeal to anyone in the 14-60 age group that

loves good coffee and looks for a nice quiet time

BRAND IDENTITY PRISM: THE JNK MODEL

Italian , Vibrant, Italian , Vibrant, Italian , Vibrant, Italian , Vibrant, Young , Young , Young , Young , Sophisticated, Sophisticated, Sophisticated, Sophisticated, casualcasualcasualcasual

SENDER

Physique Personality

For the upward class, For the upward class, For the upward class, For the upward class, wanting to have casual wanting to have casual wanting to have casual wanting to have casual environment to chat environment to chat environment to chat environment to chat

Sophisticated, Sophisticated, Sophisticated, Sophisticated, calm calm calm calm environment, environment, environment, environment,

Music lovers Music lovers Music lovers Music lovers hangout, Guitarhangout, Guitarhangout, Guitarhangout, Guitar----the symbol of the symbol of the symbol of the symbol of MusicMusicMusicMusic

Relationship Culture

BARISTABARISTA

Reflection Self-Image

RECEIVER

EXTERNALISATIONINTERNALISATION

Friendly, nonFriendly, nonFriendly, nonFriendly, non----intrusiveintrusiveintrusiveintrusive

Advertising SituationAdvertising SituationAdvertising SituationAdvertising Situation• Current PromotionsCurrent PromotionsCurrent PromotionsCurrent Promotions

– Press, TV and radio

– Rely more on sponsorships and strategic alliances – Rely more on sponsorships and strategic alliances

(Major events with colleges)

– Collaborations – Leo Mattel toys (Scrabble)

– Strategic tie-ups – Star Group, Elle 18

Advertising SituationAdvertising SituationAdvertising SituationAdvertising Situation

• Competitors Promotions

– Café Citizen Card

– Association with movies– Association with movies

– Contests with brands like levis, Airtel Friends, Pep

Scooty, etc

– Event Ticket sales like Enrique, Bran Adams, Elton

John

• Advertising ProblemsAdvertising ProblemsAdvertising ProblemsAdvertising Problems– Limited Budget– Clutter

• ObjectivesObjectivesObjectivesObjectives– Change the confused current image of Youth appealing Cafes to Corporate Cafes

StrategyStrategyStrategyStrategy• Media – 1 year

– Print – All India Newspapers and Magazines –

2 cr

– Outdoors – 1 cr

– Tent cards, danglers and posters within the outlets –

5 lacs

– Internet – Barista Community & Barista Blog

Creative StrategyCreative StrategyCreative StrategyCreative StrategyCreative StrategyCreative StrategyCreative StrategyCreative Strategy

Black Black Black Black as devil,Hot Hot Hot Hot as hell,

Pure Pure Pure Pure as the angel

Hope you Enjoyed!!

Pure Pure Pure Pure as the angelSweet Sweet Sweet Sweet as Love,

… that’s how I like my my my my coffee!!coffee!!coffee!!coffee!!