Comparision of TATA Starbucks , New segment in form of kiosks

1. Submitted By:
Shivangi Taneja
A-50
2013-2015
STARBUCKS COFFEE : A TATA
Alliance
Kiosk introduction in Indian markets
1 Kiosk Introduction in Indian markets

2. Generic view of coffee kiosk market
 The Indian market is worth
$230 million and is
expected to grow at a
CAGR of 13-14% over the
next five years
 Coffee usage in India has
doubled to more than
100,000 tons from 2001 to
2010
 Internationally, Starbucks
has 20,891 stores in 62
countries , world leader
with 32.6% market share
 In India, Café Coffee Day
has 1481 cafes across 180
towns, 60% share in
Indian market
2 Kiosk Introduction in Indian markets

3. Comparative Analysis
3 Kiosk Introduction in Indian markets
Attribute
rating (max
5):
Price Taste Experience/
Ambience
location
Café Coffee
Day
5 3 3 5
Barista 3 4 4 3
Costa
Coffee
3 4 3 3
TATA -
Starbucks
3 5 5 3

4. Comparative Analysis
4 Kiosk Introduction in Indian markets
Poor Quality High Quality
High Price
Low Price

5. Business Overview & Strategy
 New Kiosk location –Pune
 Kiosk will be low expenditure as compared to
cafes.
 Loads of potential customers as education hub of
India
 Don’t water down the experience: high quality
coffee, handcrafted beverages, locally relevant
food, legendary service and the unique Starbucks
Experience
 Target the upper middle class segment
 Feasible Locations: FC road, MG Road and
Koregaon Park5 Kiosk Introduction in Indian markets

6. Conclusion
 In order that TATA Starbucks is able to compete
with other established players in the Indian
market, it is necessary that low expenditure
kiosks are set up in second tier cities.
 The Starbucks experience needs to be
introduced in the upper middle class and then
penetrate the other segments by focusing on the
huge young population of India.
6 Kiosk Introduction in Indian markets

7. Bibliography
Kiosk Introduction in Indian markets7
 http://knowledge.wharton.upenn.edu/india/article.
cfm?articleid=4607
 http://articles.economictimes.indiatimes.com/2012
-01-20/news/30647138_1_managing-director-
hameed-huq-instant-coffee-tata-coffee
 http://www.bplans.com/coffee_kiosk_business_pl
an/company_summary_fc.php#.UfCXGtJFmIo