2. • Worlds 2nd most traded commodity after Crude
• Organized coffee retail business-Rs 25 bn
• Every day, about 2.25 billion cups of Coffee are consumed in the
world
• Coffee Consumption Jumps by 5% in 2012, Emerging markets to
reach 50% of global coffee consumption by 2020
• India is the sixth largest coffee producer and seventh largest
exporter in the world, with an annual output of 300,000 tons
• The nation's per capita consumption of coffee is just 85 grams,
compared to 4.5 kilograms in France, 4.6 kilograms in Japan and 6
kilograms in the U.S
Src: http://www.ico.org/historical/2010-19/PDF/TOTPRODUCTION.pdf
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Overview
3. Rivals
• .
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SRC: http://www.trademap.org/open_access/Product_SelProduct_TS.aspx
Rival Name Year of Establishment Kiosks (approx.)
CCD 1998 1350
Barista 2000 450
Costa Coffee 2005 250
TATA STARBUCKS 2012 7
Harvest and Consumption pattern
•Market to grow by 40% in the coming years
•Nearly 3,90,000 Harvested Area (ha) is under coffee cultivation in India. Of
this, 70% are small farms of less than 10 (ha).
•A vast majority of coffee is grown in the three southern states of Karnataka
(71%), Kerala (22%) and Tamil Nadu (5%).
•According to an industry estimates, the global consumption of instant
coffee has shown an annual average growth of about 6% in the last decade
from 70,000 MT to 1,02,000 MT till the year 2009.
4. 7/24/2013 4
• Focused on
differentiation,
brands and
quality
Growth
• To add value to
Brand
perception
Premiumization
• Premium
offerings also
supported by
fair price
Welcome all
• Trade, health
benefits,
organic and
origin
Added
advantage
The way forward
• Being a late entrant we have to focus on growth and brand image
building
• As,
Customer Delivered Value = Total Cost Benefit + Total Buying Cost
therefore we have to increase the Cost benefit factor by providing good
space to relax after work and value for money
5. Business Overview
• 17,000 stores in 55 countries, Seattle-headquartered brewed an
agreement with Tata Coffee, India's largest coffee producer
• In Karnataka, a few regions where coffee is produced include
Chikmagalur, Coorg, and Mysore
Trade path (Now)
Dedicated Path (Proposed)
• Elimination of free Market traders who take benefit of Coffee
producers will help in bringing down the cost
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Farmers Traders Processors
Farmers Processors End User
End User
6. Strategy
• Company wants to create a DA by providing :
Best ambience
Local menu options
Focus on young demographic from Middle class
• Include more variety- youth centric- flavor of week
• Self service for faster operation, evaluate hours of operation
• Equitable distribution of capital bw ads and expansion of kiosks
Long Term Vision
• We all win or else nobody does
• Observe to develop new strategy- If we listen they will tell you
• Buyers perception determines, sellers approach
• Every supporting statement begins with acknowledgement
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