Indian Coffee Market
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Indian Coffee Market

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Capturing India’s Percolating

Capturing India’s Percolating
Coffee Market

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Indian Coffee Market Indian Coffee Market Presentation Transcript

  • Capturing India’s Percolating Coffee Market
  • COFFEE-STORYPreviously only a South-Indian drinkConfined to the Rich Brahmin classPlaces for lawyers and educated class to holddiscussion.The drink has now become more of a concept
  • COFFEE-STORYCafé bars have flocked like CCD, Barista, Mocha,Qwiky’s etc Became famous and even 5 star hotels startedcashing on it. Coffee house started emerging at various places inthe country.
  • COFFEE SECTOR IN INDIAThe 6th largest producer of the coffee in the world.Indian coffee has created a niche for itself in theinternational market.Arabica coffee from India is also well received ininternational market.Coffee production in India: Karnataka, Kerala and Tamilnadu.which contributes about 99% of total coffee production
  • CASE OVERVIEWUntapped marketTargeting and positioning of marketIncreasing the coffee consumptionCreating a new entry pointExpanding networkRoad block of ahead
  • COFFEE CONSUMPTION 14 12 12 10Kilograms Title 10 9 8.7 8.4 8.2 7.9 8 6.8 6 6 4.5 4.6 4.4 4 2 0.085 0 Country
  • COFFEE CONSUMPTION Per capita consumption of coffee is just 85 gramsin compare to other countries. In the annual output of 300,000 tons, domesticconsumption is only a third(100,000 tons)India is predominantly a tea drinking nation.Coffee is a staple only in the southern part of thecountry
  • GLOBAL COFFEE GIANTS EYES ON INDIA Market expansion on a faster rate Urbanization is expanding Coffee drinking – Fashion Growth in the disposable income
  • MARKETING SITUATIONNiche coffee retail formal is growing at 10 to 12percent a yearOrganized coffee retail business-Rs 25 bnCoffee consumption in India has increased from55,000 tones to 75,000 tones in the last three years3 % of the world coffee productionExport 80 % of the total produce.
  • “ I may be young, But please take me Seriously” Youth – between 15-35 years Students form a majority of customer base Likes to be in group Likes to sit, talk and relax Drinks a cup of Gourmet coffee with added flavours prefers snacks rather than meals
  • TOP COFFEE BRANDS IN INDIA• Nescafe• Tata Coffee• BRU
  • MAJOR COFFEE PLAYERS IN INDIA
  • MARKET SHARE IN INDIA 4% 2%20% 34% Barista CCD Mocha Qwicky Georgia 40% (Source: from case study)
  • COMPETITIVE STRATEGY HIGH PRICERICH QUALITYQ POOR QUALITY LOW PRICE
  • STRATEGY BEHIND EXPANDING THE NETWORK
  • CREATING A NEW ENTRY POINT1. Pilot-testing Bru World Café in Mumbai with four outlets2. Roast green coffee beans in partnership with the Tatas. franchise agreement with3. Dominos pizza chain
  • CREATING A NEW ENTRY POINT4. deals with leading oil companies like HP,BP Indian oil for setting up cafes in gas stations across India.5. Java Green from the Reliance Group began life as a cyber café in 2003
  • CHARTS OF OUTLETS• RETAILERS• PRESENT RETAILERS PRESENT FUTURE• FUTURE• Dunkin Store• Dunkin Store st 1 ( by 1 Quarter 2012) 1(by 1 quarter 2012) 30• 30• Gloria Jeans• 16 Gloria Jeans 16 200• 200• Costa Coffee• Costa coffee 73 73 300• 300• The chocolate Room The Chocolate Room 2 40• 2• 40 Café coffee Day(CCD) 1132 400• CCD• 1132• 4000
  • HURDELS1. Huge real estate cost2.High rent cost3.Low menu price4.Manpower5.High turnover
  • TIPS TO IMPROVE THE COFFEE SHOP REVENUEEliminate low-margin itemPrepaid gift card programDiscount coupons and discountsControl waste and theftEvaluate hours of operationEliminate bottlenecks in the ordering processRun employee sales contestsRaise prices to bolster your company’s brand image
  • CONCLUSIONCoffee market focus on promotion rather thanexpansion of outlets.Tapped the market with new outlets and offering newservices.Capture the upper segment of the middle classStrives to deliver the best international standard ofcafe experienceWith more players entering the arena, the challengesaround managing costs
  • WEBLIOGRAPHY• www.indiacoffee.org• www.casestudyinc.com• www.coffee.wikia.com• www.slideshare.net• www.youtube.com
  • THANK YOU