Speciality Retailin Coffee Shop


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Speciality Retailin Coffee Shop

  1. 1. Specialty Retailing- Coffee Shops<br /> Presented by:- <br />Reena Alva - 04<br /> Vicky Barot- 06<br />Presented to Dr. A. KaulRishabhKapoor- 33<br />Nikunj Shah- 24(B)<br />
  2. 2. Introduction<br />Traditionally, India has been a tea loving country.<br />India has now become one of the fastest growing coffee markets in the world. <br />Organized coffee retail business in India at over Rs 8 billion with the potential space for nearly 3,000 coffee retail outlets in India.<br />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. <br />
  3. 3. Current state of some major players<br />CCD (Café Coffee Day).<br />It took the company nearly 6 years to reach the 35 store mark.(Barista had become the market leader with more than 85 stores). <br />Today they operate nearly 700 stores in India.<br />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.<br />
  4. 4. Barista<br />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&apos;s -&gt; Sterling -&gt; Lavazza).<br />Today it operates around 200 stores and seems to be back on track. <br />They brought in international experts from Italy to design outlets/ambience and to train staff. <br />
  5. 5. Costa Coffee<br />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.<br />The chain is currently operational with 36 outlets and expanding aggressively to tap this potential market.<br />
  6. 6. 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. <br />
  7. 7. Coffee Shop Branding with Decor and Furniture<br />Retail decor is extremely important for two reasons:<br /><ul><li>To establish value in the mind of consumers or potential consumers; </li></ul>And<br /><ul><li>To provide a space that supports your brand experience.</li></li></ul><li>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.<br /> 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.<br />
  8. 8. There is no single model of how retail coffee shops must be designed, nor features that must be included in every circumstance. <br />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.<br />
  9. 9. Using common elements like “comfy chairs,” artwork only creates brand confusion with thousands of similar businesses in markets across the country. <br />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.<br />
  10. 10. More than just a sip... !!!<br />
  11. 11. More than just a sip... !!!<br />Not just coffee - an ever increasing list of soft drink concoctions with snacks and mini-meals<br />A happening beverage – From 175 in 2002 to more than 5000<br />
  12. 12. STRATEGIES<br />Stretching the brand<br />60% of the sales are of products other than coffee<br />A venue to socialise, finalise business deals, conduct interviews, listen to music and read in<br />Unaffected by consumption pattern<br />
  13. 13. Extending Network<br />The advent of night-time work enterprises<br />Youth migrating to cities<br />Targeting the power of youth and their disposable income<br />
  14. 14. Barista’s Bean<br />Targeting college students in the age range of 16-20 <br />&quot;catch them young&quot; and induce &quot;lifetime loyalty”<br />Recreate the ambience and experience of a typical Italian espresso bar<br />Had newspapers, magazines, guitars, board games<br />
  15. 15. Diluted its upmarket sheen<br />&quot;platforms on the go&quot; <br />Barista espresso bars, shop-in-shops and corner stores<br />
  16. 16. CCD’s Cup<br />Incorporates health foods like herb breads, sunflower seeds, multigrain breads and bran sandwiches<br />Premium coffee, filters, mugs, and message T-shirts<br />Marketing associations with youth-oriented brands like Levis, TVS, Airtel, AOL<br />
  17. 17. Affordability<br />Well lit and respectable, yet informal<br />Launch 25 café a month – Never be more than 5 minutes away from a CCD<br />
  18. 18. Mocha’s Sip<br />Focus on imported coffees and an upmarket clientele<br />Few in Number<br /> Focus on knowledge building and management<br />Rs 3 crore in human resource development <br /> Rs 8 crore on the development of new menu items every year<br />
  19. 19. Developing Customer Relationship in your Coffee Shop<br />You can create excellent customer relationship masters by focusing on 3 things: <br /> * Your hiring process <br /> * Your training program <br /> * Your personal management style <br />
  20. 20. HIRING PROCESS<br />In the retail coffee business, your barista is the central key to your success<br />The first thing to look for is brightness and a perfect fit into your company culture.<br />
  21. 21. 2 factors that a barista should possess<br /> 1. Personality that suits the business:<br /> -You can teach any potential barista coffee- making skills, company procedures and other chores, but you can&apos;t teach personality<br /> 2. Ability to work in a team:<br /> -Team concept is important when two baristas working the same shift are interacting with each other and their customers in a confined space<br />
  22. 22. TRAINING PROGRAM <br />Concentrate on Customer Relationship Training:<br />Training program should not be focused solely on professional drink-making techniques.<br />Should be focused on the Baristas interaction with the customer<br />
  23. 23. 4 tips in barista customer relationship training<br />* Role-play to ensure everybody not only hears, but also practices engaging customer relationship marketing. <br />* Teach better listening skills and the ability to focus directly on each customer. <br />* Teach baristas to take personal ownership of customer concerns and needs. <br />* Train all staff to accept responsibility outside their assigned responsibilities. <br />
  24. 24. MANAGEMENT STYLE<br />Making Happy Employees:<br />Many managers pay no attention to their people, until they catch them doing something wrong<br />If you focus more on the positive traits, it helps create huge momentum in the development process of your employees<br />
  25. 25. Positive interactions and experiences make for happy employees<br />The simple formula here is – ‘Happy employees treat your customers like gold.’<br />2. Give the employees a sense of ownership<br />Make them feel like they are critical to the success of your business<br />
  26. 26. 3. Celebrate success together<br />Regularly reward your staff in personal and surprising ways for helping you run a profitable business<br />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<br />
  27. 27. Steps to Successful Coffee Merchandising<br />
  28. 28. From Small Coffee Shops to the Discovery of <br /> Espresso Machines.<br />With 1000+ outlets the Big Giants have changed things even more.<br />
  29. 29. Retailers need to provide accessible, straightforward information <br />The coffee store and merchandising will get benefitted from a Good cup of coffee – a product mix which is hot, fresh and stimulating.<br />
  30. 30. The staff should know every step of coffee story right from beans to cup………<br />The Drinks Menu should be as simple as possible<br />
  31. 31. Merchandising beans is one of the most difficult aspects of the specialty coffee business. <br />One of the great debates in specialty coffee <br /> retailing today is whether to emphasize origin<br /> coffees or to focus on proprietary blends.<br />
  32. 32. In coffee merchandising one of the best and most powerful tools you have at your disposal is the smell of coffee.<br />Fine tune Pricing of Merchandises for achieving trade off between turnover & Margins.<br />
  33. 33. There is a layer of Artificial Merchandising that crowds out the basic Message <br /> “ Great Coffee Sold Here”<br />
  34. 34. INVENTORY CONTROL<br />
  35. 35. Important Points for Specialty Coffee Retailer<br />Know the customers well. The Business is based on trusting relationships that is built over time.<br />The barista is the owner’s stand-in.<br />Don’t be self driven, be customer driven.<br />
  36. 36. Have Industry Information as well.<br />Customize your Menu<br />Celebrate Every Employee’s success.<br />
  37. 37. Thank you<br />