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TATA Starbucks Case StudyPlan to launch Coffee Kiosks

Name: Vikram PawarDivision: ERoll No: 54Batch: 2013-15

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Coffee Kiosk MarketIndia

• The coffee kiosk was popularised by Nestle in India, wherein the brand offered the hot beverage through its vending machines

• Only 12-15 % of the potential market for vending machines has been tapped till now

• Huge opportunities galore• Even in small 4-5 vending machine units one can earn profits

International• In US also known as espresso kiosk or cappuccino kiosk• Vendors not only sell coffee but also sell pastries, donuts, muffins

etc. Also sells breakfast items such as eggs and bacon• Mostly dominated by pushcart and drive thru’s • Big players such as Starbucks or Barista have booths, whereas

kiosks are dominated by small players

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Competitor Analysis

• CCD having highest no of kiosks with• Coffee Day Xpress (CDX), which runs 900 plus kiosks• Coffee Day Beverages, which runs over 14,000 vending

machines• CCD plans is in the process of converting its franchisee-run

‘xpress’ outlets into company-owned kiosks • Besides operating kiosks CCD has around 1500 outlets as

compared to around 50 for starbucks• Barista too has around 150 kiosks which mainly operate in IT

Parks

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Segmentation• Age: Age group of 17-32 should be the concerned primary

market• Location: Metropolitan cities

: IT/ITES, BPO’s and other MNC’s : College Campuses, hospitals

: Public places like Railway Stations etc• Price: Starting from Rs 50 onwards and including varieties on

the menu

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SWOTStrengths

• Worlds largest coffee house• Can be considered as the best quality• Brand Value

Weakness• Highly priced as compared to competitor• Still only 50 stores available therefore expansion might be a problem

Opportunities• Brand loyalty may increase• India is a major producer of coffee• market potential is huge as tea and coffee are inevitable in a country like India • No of young people is large

Threats• Concept of vending machine is quite nascent in India• Competition with big players

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Conclusion

As Pune being considered as the “Student Capital of India”, therefore starting in Pune would be the best option

A good marketing strategy will definitely help in overcoming the hurdles

So, planning and focused customisation is the only key to growth in both top line and bottom line