COFFEE PARLOURS IN INDIA……. HOTTING UP!!!!!!!! - SANJEETKOTHARI MM1214550
India is the home of chai, sugary and milky tea ladled into tumblers at street stalls for around five rupees. However, as Indians disposable incomes rise, cafes are cropping up in large cities. The countrys cafe sector is worth $230m , there is tremendous potential to improve domestic coffee consumption considering rising per capita income in the urban middle-class The coffee bean is converting people all over India with cafes whisking up many different aromatic coffee combinations. Coffee lovers have always been lyrical about the virtues of this beverage – coffee inspires poetry and inflames prose; it is capable of firing passion, and stir people to romance, and
Coffee cafes are the points where philosophers, writers, painters, and musicians spend hours savoring their coffee and let their creative juices flow. Coffee is presently the second most traded commodity in the world. It is second only to oil.
The three dominant players Barista, Cafe Coffee Day and Starbucks differentiate themselves on the basis of ambience, decor, service, price, quality, and customer relationships.
CCD For Amalgamated Bean Coffee Trading Co. (ABC) owned by Siddharth Hegde of Karnataka, Café Coffee Day represents forward integration. Three generations of the family have been in plantation business. The family owns 2,500 acres plantations and 50 depots that buy beans from 10,000 traders. • ABC is one of the largest coffee export houses. This provided the company an opportunity to build its own brand of coffee, where freshness and choice of blend are critical. It is here you get real feel of coffee.
CCD also provided a relaxing ambience with eye-catching crockery and bright décor. The paintings on the wall were made by young artists, with the objective of promoting young talent. CCD outlets also promoted their paraphernalia such as caps, T-shirts, and coffee mugs. It positioned itself as a place to hang out and spend time leisurely. It targeted the middle class, upper middle class, house wives and students Baseline was changed to ―A lot can happen over coffee‖ One could order an Espresso, Cappuccino, Lattes, Mochas, frothy or intense, icy or piping hot, and aromatic and exotic coffee.
BARISTA Barista takes its name from the Italian term for a coffee brew master. Its softer ambience and higher price distinguish it from others. Coffee bean is treated in a way that gives coffee a richer, sweeter taste. The bean, the dispensing of the brew, and the actual brewing – makes Barista tick. Target customers include professionals, working couples, and families who detest the loud ambience of coffee pubs. People spend 45 minutes on an average in this cafe and 70 per cent are repeat customers. Barista has a ‗Skim Pricing Policy‘. They began with a higher price, and skimmed the cream for the market.
Barista adopted a three-pronged approach to expand its business. The first was to open espresso bars in various cities across the country. The second approach was to target institutional areas The third approach was to target the home segment. Reiterating the bond between books and music lovers, Barista has small bars in music retail chains, Planet M and Crossword. To fuel the boom, Barista plans to sell out a training school for Indian brew masters, coffee-tasting clubs, and coffee appreciation sessions
Starbucks, the worlds largest coffee-shop chain, Seattle- based company has entered India through an $80m joint venture with Tata at Elphinstone building, Horniman circle. Starbucks runs 18,000 stores in 60 countries globally. Two more stores would be opened in Mumbai — at Oberoi Mall in suburban Mumbai and at the Taj Mahal Palace hotel in South Mumbai. Starbucks would target premium market.
ADVERTISEMENT AND PROMOTIONS Online promotion Printmedia promotion Events sponsorship Radio channel Corporate and institute collaboration Cobrand with several banks for credit cards.
TODAY’S CAFES REFLECT THE BEFITTINGAMBIENCE Barista is brightly lit with orange coloured tabletops, Italian furniture, and music resounding in the air. Qwiky‘s has transparent glass walls through which consumers contemplate the buzz of the world. A message board on which a consumer can scribble a line to loved one.A Buddhist bell to sound one‘s satisfaction by ringing it. The brew is lip smacking variety of imported toppings Cafe Coffee Day offered an informal ambience with bright and eye-catching interiors. Visitors could sip coffee, browse the internet, conduct business meetings or just while away time with friends. Cafe Coffee Day is well looked as a cool- hangout for college crowed and teenagers. This promoted young artists and displayed their paintings on their walls
Coffee sitting is incidental to hawking a lifestyle. The emphasis is on merchandising, such as T- shirts, greeting cards, and wristwatches. Each of the cafes plans a portal and a guest loyalty programme. With this high demand boom in coffee retailing, the image of coffee is changing from old-fashioned to young and modern.
FUTURE MARKET CCD is deepening engagement with consumers and expand network. CCD and Barista Lavazza, are making roads in small towns. Starbucks in India will not restrict itself to fivestar locations, and is considering railway stations and university campuses Market for these café‘s would increase to 30% in next three years.