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Tata starbucks coffee kiosk

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  • 1. Harshita Shah D 52 Batch 2013-15 TATA Starbucks Coffee Kiosk
  • 2. Coffee Kiosk Market 2 Estimated size of organised coffee retail market in India 200mn and expanding annually at the rate of 14 to 20 % Estimated number of stores by 2015 is 5000 Coffee chains are eyeing newer territories, like highways, and busy premises such as hospitals and college campuses; experimenting with scalable new formats including kiosks and coffee carts; firming up on supply chains; refining and expanding menus, and also elevating the overall experience quotient via exclusive coffee blends and menu, unique crockery, digital interactivity experience, and contemporary store designs. Coffee Kiosk Market in India :  CCD has 900 kiosks in 170 cities and towns (which is 75 per cent of the total number of stores in India's branded coffee retailing market)  Branded players in the Coffee kiosk market: Café Nescafe, Costa Coffee, Gloria Jeans , Barista Lavazza  Huge market share belongs to unorganized sector International Players:  Starbucks Coffee Kiosk, Seattle’s Best coffee kiosk, Costa Coffee, Gloria Jeans etc.
  • 3. Porter’s Five Analysis 3 Industry Rivalry (High) Specialty Coffee Retailers – Coffee Day Xpress, Nescafe Kiosks, Costa Coffee, Barista Lavazza Food chains offering coffee – Mconalds, Burger King Unorganized Retail Threat of Substitutes (High) Tea, cola, juices, energy drinks Buyer Power (High) Low disposable income of the target group ( students and young professionals) Availability of substitutes and abundance of offers Barriers to entry (High) Minimal Government restrictions Cost of setting up kiosks is less Supplier Power (Low) TATA Starbucks has coffee sourcing and roasting agreement with Tata Coffee to provide coffee beans to its outlets in India
  • 4. 4 Target Market segmentation Geographic: Institutions, Malls, Parks, Supermarkets, Airport, Railway station Demographics: Youth, Students and Professionals Economy class: Middle, Upper middle class and Upper class Psychographic: People looking for quick service time, high hygiene standards, freshness and quality of delivery Behavioral: Commuters - people travelling for work or leisure, shoppers ƒ Captive Consumers - people who are searching for coffee refreshments in office parks, manufacturing facilities, colleges, city centres Competitors Foreign brands: Costa Coffee, Gloria Jean’s National Chains: Coffee Day Xpress, Café coffee day, Coffee Bean & Tea Leaf, The Chocolate Room, and Café Nescafe Local Outlets: Coffee hut, Perks and Brews, Coffee Stop
  • 5. SWOT ANALYSIS 5 Strengths •Strong brand awareness •Low cost •High brand visibility in Kiosks •High food Quality •Quick service Opportunities •Huge market size ( Pune – Educational and Corporate hub) •Growing middle class and income of population •Café and Coffee sales to increase by 25% in the next five years Weakness •Lack of presence in Pune •Expensive Pricing •Limited food variety in kiosk •Absence of seating facilities (in the planned kiosk) Threats •Coffee is the secondary beverage in India •Established competition (unorganized sector, Snacks and juice counters •Obesity and obesity related problems in India •Low per capita Income
  • 6. Business Overview 6 TATA Starbucks kiosks are introduced in Pune with concept of fast, hygienic, and convenient-to-eat food to consumers on the go at affordable prices. Workplace environments, universities and hospitals can provide quality coffee whilst generating significant revenue from underutilised areas in reception areas, libraries, waiting rooms and retail shops. Proposed Location Hinjewadi IT park, Senapati Bapat Road , Hadapsar , Pheonix Market city, Symbiosis Lavale Campus Proposed Cost Rs 500, 000 for setting up kiosk and additional training cost Proposed area per Kiosk 75 to 150 square feet Expected average footfall per day 250- 300 consumers Strategy To open 5 kiosks at strategic locations in Pune having high traffic and high visibility providing fast service to consumers on the go at affordable prices.
  • 7. 7
  • 8. Bibliography 8  http://businesstoday.intoday.in/story/competition- in-coffee-retailing-grows/1/17520.html  http://articles.economictimes.indiatimes.com/2012 -10-25/news/34729911_1_starbucks-howard- schultz-tatas/3  http://research-methodology.net/starbucks- porters-five-forces-analysis/  http://www.franchiseindia.com/articles/tag/Coffee- kiosk-franchise