Rajkumar Adak(Barista)

7/29/2019 Rajkumar Adak(Barista)

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Supply chain drivers ofBarista


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Introduction

Barista established in 2000 in New Delhi inIndia. It was the largest and fastest growing coffee

chain in India. Barista positioned itself as a lifestyle brandwith Italian neighborhood.Opened up several out lets and set up various

merchandises across the country.Recently acquired by Lavaza .

Barista was the leader in espresso coffees.


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Supply chain performance depends uponsome certain variables which helps tosmooth flow of supply chain .That is callsupply chain drivers . These variables arefacilities, inventory, transportation,information , sourcing and pricing.

Supply Chain Drivers


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Supply chain of Barista


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Ice cream cold supply chain

Ice cream plant

Blast freezer(-26C) Walk infreezer(-25C)

Refrigeratedvan(-20C)DistributorIce cream parlors


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Absence of a strong and dependable cold chain

system which is very vital.

Maintaining product stability throughout thedistribution chain, including requirements for coldchain continuity.

Non availability of Part Shipments for

transportationLack of adequate infrastructure .The higher freight has pushed up cost of raw

materials and inputs such as sugar, edible oil and allthese add to cost of production.

Basic issues & Constraints


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Challenges of Barista

Lack of logistic support : suitable transport is notavailable in every time.

Uneven distribution of cold chain : Do notpossible every time to maintain cold van.

Cost structure : maintain temparature as a result

increase the cost.

Power supply: uninterrupt power is not available.


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Case Study

Barista Coffee Company Limitedoperates a chain of espresso bars and cafes. The companyoffers various beverages, including hot and cold coffees,

mocktails, iced and hot teas, drinks, hot chocolates andsteamers, ice cream blended coffees, fruit smoothies, andgranitas and sparkles. It also provides food products, such assandwiches, snacks, and desserts. In addition, the companyoffers various merchandise, which include sippers, mugs,

cashew and fig cookie tins, business card holders, coffeemakers, jars, steel key chains, plungers, steel coasters, andgift vouchers. Barista Coffee Company Limited was founded in2000 and is based in Noida, India.


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continue

In the case there is a deep discussion about the barista ispresented Barista was started to give the youth analtogether a different experience. Outlets were designed forthe youngsters in the age group of 15-29. Baristas focuswas to fill up the gap between coffee vending machine andthe expensive 5 star coffee shops. Barista had a tie-up withElle18 and launched lipsticks after the name of itsbeverages. It tied up with Tata Teleservices for offeringInternet to the consumers. The company started franchising

the parlors as internal resources were not enough. In April2003, prices at barista were cut down by 25-30% In October2003, 10 stores were shut down.


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Problem Identification:In the case the Main Problem

which is identifiable & discusses the dilemma faced by thecompany on adopting the franchise model to further expandits chains of caf in the country. Its top management has totake important decisions related to the pricing and productmix.

Proposed Question:Ques1. Is Barista just another fad or a revolution?Ques2. Has Barista been a victim of Expansion versusQuality?


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1. After Analyzing whole of the case it is analyzed thatBarista is just another fad and not a revolution. They are confusedabout their product positioning as well as the target customer . Their

brand image is not strong enough to make it as a revolution. Peoplejust assume it to be any other coffee serving place.

2. Yes, according to me it has failed. Baristas main focusremain on expansion rather than focus on the core and the basicrequirements. It does not focus on correct target market, ad

positioning, rather it focuses on expansion. It should concentratemore on quality, advertising, and innovative tastes of coffee. Itshould do proper research to select the market where the parlor isto be opened.

Solution


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Thank you

Documents

Rajkumar Adak(Barista)