2. Content
Introduction 1
CCD what they did 2
What Starbucks did 5
Starbucks differential Strategy
compared to CCD 8
Thank You.
Reference – Quora Digest.
3. Introduction.
'Starbucks entering India', this was a news for the business media.
They were suggesting and explaining strategies, to survive the
market entry of Starbucks.
the biggest coffee chain India
Holding 60% market share
Strategy to what and what not to do to
survive the entry of Starbucks.
Starbucks the new entrant in collaboration
with Tata had all the resources to take
battle head-on with CCD in India.
They did the complete opposite
17-Sept-2016 1
4. Café Coffee Day.
What they did.
Its Strengths.
1) Strong distribution channel.
Strong store format through which it targets all the
segments.
It operates its 1,550 outlets in three main formats
which target different segments
Regular café (1,495)
The premium Lounge (51)
CCD Square (4), which serves single-origin (rather
than blended) coffee
17-Sept-2016 2
5. Contd….
2) High brand equity among youths.
Pioneer of coffee culture in India.
High brand equity among the youth.
Major chunk of CCD customers within the age group
of 20 to 30
Accounts for 60% of the overall revenue.
The group comprises of mainly college going
students and young working professionals
17-Sept-2016 3
6. Contd….
3) Differential Pricing.
CCD follows differential prices.
Different stores of CCD has different pricing.
Allows CCD to maintain profitability at store level.
17-Sept-2016 4
7. Starbucks.
What it did.
Its Analysis & Strategy
Conventionally should take a head on battle with
CCD as it had the resources.
Realized will never be able to rival CCD in terms of
sheer scale and market share in India.
If tried to go head on against CCD, possibilities of
huge investments in real estate, threat of price
war with CCD and other chains, brand dilution
etc.
17-Sept-2016 5
8. Contd….
Starbucks analyzed;
CCD is weakest in premium segments they have the
clear positioning and scale of operations.
The premium segment has no competition (except
CCD lounges and Squares)
Starbucks had devised a strategy of going premium
considering these factors which will avoid heads on
battle with CCD
17-Sept-2016 6
9. Contd….
Single store format: Unlike CCD, Starbucks will
have only one format. Single store format will
allow Starbucks to set uniform brand expectations
Price: Standard pricing for all the stores but 1.5
times higher than CCD
Location: Unlike CCD, Starbucks will have stores
only in premium positions to target upper middle
class
Brand Positioning: By going premium, Starbucks
is creating an aspirational brand
17-Sept-2016 7
