Coffee Wars in India examines the competition between global coffee chain Starbucks and Indian chain Café Coffee Day in India's growing coffee shop market. Café Coffee Day has over 1,400 outlets across India but faces competition from Starbucks' expansion. While Café Coffee Day targets young Indian customers and positions itself as an affordable hangout, Starbucks targets upper middle class customers and positions itself as providing a great coffee experience. Both chains differ in their store formats, pricing, promotion strategies, and customer service quality as Starbucks and Café Coffee Day battle for dominance of India's coffee shop market.

1. Coffee Wars in India
-Café Coffee Day Takes on the Global Brands
1.Priyanka Agarwal
11.Fahad Dossani
51.Komal Vasoya

2. The Coffee Shop Market in India
• Hot beverages – a part of Indian tradition
• Coffee took the first seat in south India
• To spread the drink – coffee shops emerged
• Indian ( RTD ) Domestic coffee market – INR
1100 crore
• Growth – 2250 crores by 2017

3. Overview

4. Market Share

5. Café Coffee Day
• Founded in 1996
• V.G. Siddhartha-Founder and Chairman
• 1497 outlets across 142 cities
• Average footfall: 300 per café per day
• Vertically Integrated
• Short purchase cycle
• Zero Channel Distribution

6. The Café, Lounge and Square Cafe
Cafe
• Chairs very close – customers complain of intrusion of privacy
• Affordable hangout for the young crowd
Lounge
• Outstanding ambience – commendable service
• Meal for two @ INR 750
Square
• For absolute Coffee Connoisseurs
• Coffee Snobbery Lounge

7. Starbucks
• Founded in 1971
• Howard Schultz- Chairman and CEO
• Tata Coffee – Tata Starbucks
• 84 outlets (May 2016)
• C.A.F.E Practices-ensuring quality
• Long purchase cycle
• Brand Positioning

8. Segmentation, Targeting and Positioning
Parameters Starbucks CCD
Segmentation People looking for
coffee with
experience
Youngsters looking to
hangout with friends
Targeting Upper middle class Youngsters – college
students and working
professionals
Positioning Great Coffee. Great
Service
A place between
office and home

9. 8Ps of Services
• Product
-Coffee with great taste
- Personalized coffee with
great taste
• Place
-SB in metros and cosmos
- CCD in tier I and tier II
cities
• Price
- A meal for two @ CCD 350
- A meal for two @
Starbucks 750

10. 8Ps of Services
• Promotion
-CCD Print ads on
newspapers, magazines, tie
up with multiplexes, movie
associations
- Social Media ( Starbucks )
• People
- more pleasant, polite,
positive at Starbucks than
CCD
•Physical Environment
- Classic Interiors at
Starbucks
- Trendy and bold interiors
at CCD

11. 8Ps of Services
• Process
- Self Service @ Starbucks
- Partly self service @ CCD
• Production
Quality
- Great coffee great taste.

12. Challenges
Starbucks:
• Amount of store closures
• Competitors
• Limited outlets
• Not an affordable price
CCD:
• Customer Service
• Rural Employees
• Cost of Land
• Managing outlets

13. Starbucks vs CCD: Verdict:
• So, after all points being considered for
Starbucks vs CCD, it is obvious that Starbucks
is quite the winner here.
• It is giving quite a good competition to CCD.