Speciality Retailin Coffee Shop
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Speciality Retailin Coffee Shop






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Speciality Retailin Coffee Shop Speciality Retailin Coffee Shop Presentation Transcript

  • Specialty Retailing- Coffee Shops
    Presented by:-
    Reena Alva - 04
    Vicky Barot- 06
    Presented to Dr. A. KaulRishabhKapoor- 33
    Nikunj Shah- 24(B)
  • Introduction
    Traditionally, India has been a tea loving country.
    India has now become one of the fastest growing coffee markets in the world.
    Organized coffee retail business in India at over Rs 8 billion with the potential space for nearly 3,000 coffee retail outlets in India.
    According to industry sources, coffee consumption has shot up from 55,000 tonnes to 80,000 tonnes since the liberalisation of the economy in 1991.
  • Current state of some major players
    CCD (Café Coffee Day).
    It took the company nearly 6 years to reach the 35 store mark.(Barista had become the market leader with more than 85 stores).
    Today they operate nearly 700 stores in India.
    Growth plan of opening 1,000 cafes by 2010 marking its presence across 102 Indian cities and also establishing 50 cafes in 10 foreign countries.
  • Barista
    The problem with Barista was that it started a bit ahead of its time and before it could mature it saw several changes in the ownership (Tata's -> Sterling -> Lavazza).
    Today it operates around 200 stores and seems to be back on track.
    They brought in international experts from Italy to design outlets/ambience and to train staff.
  • Costa Coffee
    British coffee retail chain Costa Coffee launched its outlet in New Delhi, becoming the first international coffee chain to start operations in India in September 2005.
    The chain is currently operational with 36 outlets and expanding aggressively to tap this potential market.
  • Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with their multi-products offering outlets like Reliance Timeout and Desi Café respectively.
  • Coffee Shop Branding with Decor and Furniture
    Retail decor is extremely important for two reasons:
    • To establish value in the mind of consumers or potential consumers;
    • To provide a space that supports your brand experience.
  • Consumers use visual cues to form their impression of retail brands and to anticipate the value of products and services, sometimes long before experiencing them firsthand.
    Numerous studies have shown a strong correlation between visual perception and taste, so retail decor can not only make a good first impression, but can arguably improve the perceived taste of beverages.
  • There is no single model of how retail coffee shops must be designed, nor features that must be included in every circumstance.
    Every business should choose a retail format and design elements that project the brand’s unique statement (e.g. “We’re good,” “We’re fast,” or “We’re cheap”), while also creating a desirable environment for consumers that is not duplicated elsewhere.
  • Using common elements like “comfy chairs,” artwork only creates brand confusion with thousands of similar businesses in markets across the country.
    The generic ubiquity of garage sale decor and its negative association with typical independent retail shops today can alone create a preconception of mediocre food and beverages in the mind of consumers that will hamper sales — regardless of the actual quality of what is served.
  • More than just a sip... !!!
  • More than just a sip... !!!
    Not just coffee - an ever increasing list of soft drink concoctions with snacks and mini-meals
    A happening beverage – From 175 in 2002 to more than 5000
    Stretching the brand
    60% of the sales are of products other than coffee
    A venue to socialise, finalise business deals, conduct interviews, listen to music and read in
    Unaffected by consumption pattern
  • Extending Network
    The advent of night-time work enterprises
    Youth migrating to cities
    Targeting the power of youth and their disposable income
  • Barista’s Bean
    Targeting college students in the age range of 16-20
    "catch them young" and induce "lifetime loyalty”
    Recreate the ambience and experience of a typical Italian espresso bar
    Had newspapers, magazines, guitars, board games
  • Diluted its upmarket sheen
    "platforms on the go"
    Barista espresso bars, shop-in-shops and corner stores
  • CCD’s Cup
    Incorporates health foods like herb breads, sunflower seeds, multigrain breads and bran sandwiches
    Premium coffee, filters, mugs, and message T-shirts
    Marketing associations with youth-oriented brands like Levis, TVS, Airtel, AOL
  • Affordability
    Well lit and respectable, yet informal
    Launch 25 café a month – Never be more than 5 minutes away from a CCD
  • Mocha’s Sip
    Focus on imported coffees and an upmarket clientele
    Few in Number
    Focus on knowledge building and management
    Rs 3 crore in human resource development
    Rs 8 crore on the development of new menu items every year
  • Developing Customer Relationship in your Coffee Shop
    You can create excellent customer relationship masters by focusing on 3 things:
    * Your hiring process
    * Your training program
    * Your personal management style
    In the retail coffee business, your barista is the central key to your success
    The first thing to look for is brightness and a perfect fit into your company culture.
  • 2 factors that a barista should possess
    1. Personality that suits the business:
    -You can teach any potential barista coffee- making skills, company procedures and other chores, but you can't teach personality
    2. Ability to work in a team:
    -Team concept is important when two baristas working the same shift are interacting with each other and their customers in a confined space
    Concentrate on Customer Relationship Training:
    Training program should not be focused solely on professional drink-making techniques.
    Should be focused on the Baristas interaction with the customer
  • 4 tips in barista customer relationship training
    * Role-play to ensure everybody not only hears, but also practices engaging customer relationship marketing.
    * Teach better listening skills and the ability to focus directly on each customer.
    * Teach baristas to take personal ownership of customer concerns and needs.
    * Train all staff to accept responsibility outside their assigned responsibilities.
    Making Happy Employees:
    Many managers pay no attention to their people, until they catch them doing something wrong
    If you focus more on the positive traits, it helps create huge momentum in the development process of your employees
  • Positive interactions and experiences make for happy employees
    The simple formula here is – ‘Happy employees treat your customers like gold.’
    2. Give the employees a sense of ownership
    Make them feel like they are critical to the success of your business
  • 3. Celebrate success together
    Regularly reward your staff in personal and surprising ways for helping you run a profitable business
    Need not be monetary: It can be a sincere praise for a job well done, a special day off, or just a note or voicemail telling them how glad you are that they are on your team
  • Steps to Successful Coffee Merchandising
  • From Small Coffee Shops to the Discovery of
    Espresso Machines.
    With 1000+ outlets the Big Giants have changed things even more.
  • Retailers need to provide accessible, straightforward information
    The coffee store and merchandising will get benefitted from a Good cup of coffee – a product mix which is hot, fresh and stimulating.
  • The staff should know every step of coffee story right from beans to cup………
    The Drinks Menu should be as simple as possible
  • Merchandising beans is one of the most difficult aspects of the specialty coffee business.
    One of the great debates in specialty coffee
    retailing today is whether to emphasize origin
    coffees or to focus on proprietary blends.
  • In coffee merchandising one of the best and most powerful tools you have at your disposal is the smell of coffee.
    Fine tune Pricing of Merchandises for achieving trade off between turnover & Margins.
  • There is a layer of Artificial Merchandising that crowds out the basic Message
    “ Great Coffee Sold Here”
  • Important Points for Specialty Coffee Retailer
    Know the customers well. The Business is based on trusting relationships that is built over time.
    The barista is the owner’s stand-in.
    Don’t be self driven, be customer driven.
  • Have Industry Information as well.
    Customize your Menu
    Celebrate Every Employee’s success.
  • Thank you