2. GENERIC VIEW OF COFFEE KIOSK MARKET
National International
Coffee production
Amounts to 6% of world coffee
production (5th largest coffee
producer in the world)*
Brazil amounts to a third of world’s
coffee production, being the
largest coffee producer
Other Market players Cafe Coffee Day, Barista Lavazza,
Gloria Jeans, Di Bella, Costa coffee
Tim Hortons (Canada), Caribou
coffee (USA), Dunkin’ donuts
(USA), Second Cup (Canada)
Coffee consumption
(2013-14)
72,000 tonnes * Finland consumes the maximum
coffee in the world.
Reason for growth in coffee culture Low cost benefits, Low investment for coffee kiosks
Target Market Segment
The mobile individuals who have more money than time, and have
excellent choice in taste of beverage but no time to linger on in the café.
1
3. Characteristics Starbucks Café Day Express
(CDX)
Costa Coffee Barista Lavazza
Geographic Region
City
Area
All over India
Metro cities
and Tier I
cities
Urban
All over India
Metro cities, Tier I
& Tier II cities
Urban, Semi-Urban
All over India
Metro cities
Urban
All over India
Metro cities, Tier I cities
Urban, Semi-urban
Demographic Age
Family
size
Income
24 to 60+
years
Single,
Married
Rs 40,000 per
month and
above
16 to 34 years
Single, Married
Rs 20,000 per
month and above
18 to 49 years
Single, Married
Rs 40,000 per
month and above
18 to 49 years
Single, Married
Rs 40,000 per month
and above
COMPARATIVE ANALYSIS OF MARKET SEGMENTATION OF
COFFEE KIOSKS IN INDIA
2
4. Characteristics Starbucks Café Day Express
(CDX)
Costa Coffee Barista Lavazza
Psychographic Socio-
economic
Lifestyle
Upper middle
class
Employees of
corporate houses,
Busy office goers,
coffee lovers,
coffee addicts
Middle class
College students,
B-school
students, Busy
office goers,
coffee lovers,
coffee addicts
Upper middle
class, Middle class
Frequent
shoppers at malls,
frequent flyers at
airports, coffee
lovers
Middle class
Frequent
shoppers at
malls, frequent
flyers at
airports, coffee
lovers
Behavioral Occasions
Benefits
Loyalty
Attitude
Regular
Quick service,
quality
Strong
Positive
Regular
Quick service,
economy
Strong
Positive
Regular
Quick service,
speed, quality
Medium
Positive
Regular
Quick service,
speed, quality
Positive
COMPARATIVE ANALYSIS OF MARKET SEGMENTATION
OF COFFEE KIOSKS IN INDIA
3
5. BUSINESS OVERVIEW & STRATEGY
Business Overview
Proposed Project TATA Starbucks kiosk in Pune
Proposed Location Magarpatta City, Hadapsur, Pune.
Positioning For mobile people whose time is at premium but desire a refreshing,
high quality beverage or baked item while community from work
Financial Plan Initial Investment: Rs 5,00,000 to set up a kiosk
Forecasted revenue: Rs 5000 per day or Rs 1,50,00 per month
Break-Even can be achieved in about 3.5 months
Strategy
• Located at the most logical and accessible locations to penetrate the commuter and the captive
consumer markets by providing quick service facilities.
•Designed to handle a huge crowd during the morning and evening rush and also during tea
breaks at corporate offices.
• Providing quality products in easy-to-carry packaging.
Detailed: BUSINESS OVERVIEW & STRATEGY OF TATA
STARBUCKS KIOSK IN PUNE
4
6. CONCLUSION
After analyzing the coffee kiosk market in India and
around the world, comparing the market segments of
different coffee kiosks in India and preparing a business
overview for the same, I conclude that:
• TATA Starbucks should open its first coffee kisok in Pune at
Magarpatta city
• in one of the corporate houses
• as the revenue generation will be high
• leading the company to break even in the first few months
and thereby
• earning
profits.
5
7.
8. BUSINESS OVERVIEW & STRATEGY OF TATA
STARBUCKS KIOSK IN PUNE
Business Name
TATA Starbucks
www.starbucks.in
Profile
Tata Starbucks is a 50:50 joint venture company, between Starbucks
Corporation and Tata Global beverages. The outlets are branded as Starbucks
"A Tata Alliance".
Current Locations: Mumbai & Delhi. It operates 15 outlets these two cities. The
first outlet opened at Horniman Circle in Mumbai end of October 2012.
Products: Various varieties of coffee from all over the world and food items
include Tandoori Paneer Roll, Elaichi Mawa Croissant, Murg Tikka Panini and
Chai Tea Latte to the suit Indian taste. It provides Free Wi-Fi in all its outlets.
Proposed
Project
TATA Starbucks Kiosk in Pune
Proposed
Location
Magarpatta City, Hadapsar, Pune
It is a city within a city having commercial zone, residential neighborhoods,
school, hospital, shopping malls, hotels, restaurants and recreation places.
BACK
Cont..
a
9. BUSINESS OVERVIEW & STRATEGY OF TATA
STARBUCKS KIOSK IN PUNE
Market Analysis
Market segments:
Commuters, Working professionals, Captive customers
Target Market:
Mobile individuals have more money than time, and an excellent taste in the choice of
beverage, but no time to linger in the café.
Market needs:
Pune is a very mobile city with many working professionals and students who have very
busy schedules, a desire for quality and disposable income. As much as they would like to
sit and sip a coffee and grab a mini-meal, they do not have the time for it. However they
still desire for uniquely blended beverage as they hurry in their busy life.
Industry Analysis:
The coffee industry has grown tremendously in Pune and all over India over the past 5
years. Leading players enjoy a favorable atmosphere; also the shift towards coffee
amongst the youth also provides a window of opportunity.
Main competitor:
Café Day Express (CDX)
Other competitors:
Barista
Costa coffee
local cafes & drive-thru cafes
Cont..
BACK
b
10. BUSINESS OVERVIEW & STRATEGY OF TATA
STARBUCKS KIOSK IN PUNE
Financial Plan Initial Investment: Rs 5,00,000 to set up a kiosk
Forecasted revenue: Rs 5000 per day or Rs 1,50,00 per month
Break-Even can be achieved in about 3.5 months
Strategy Located at the most logical and accessible locations.
Designed to handle a huge crowd during the morning and evening rush
and also during tea breaks at corporate offices.
Providing quality products in easy-to-carry packaging.
Value
Proposition
The substantial value proposition is that the customer finds the kiosk within
two minutes from his work station and does not waste any time before and
after placing the order. The basic idea being that he/she can pick up his
coffee and snack and rush to continue his work.
Future Plans After successful opening of a kiosk in Magarpatta city, at least 3 more kiosks
and one outlet to be opened in Magarpatta city itself to cater to wide range
of customers in the next six months.
CONCLUSION
c
