1. STABUCKS KIOSKS IN INDIA
Submitted by:
SHWETA RANA
DIVISION C
Roll No. 54
Dated: 25 July, 2013

2. GENERIC VIEW
1. India is the 5th largest exporter of coffee in the
world
2. The main competitors of TATA Starbucks in the
kiosk market are Coffee Day Express and Nescafe
3. Globally, the main competitors are Mc Café’ ,
Café Nero Group and small privately owned café
bars
4. 68% of coffee kiosks in India are located in malls,
corporates and college campus
2.

3. COMPARATIVE ANALYSIS
TATA STARBUCKS COFFEE DAY XPRESS NESCAFE
Year of Inception 2012 2010 2010
Headquarters - Mumbai Mumbai
No. of kiosks - 354 500
Market Share - 60% 20%
Quality
(as rated by
consumers)
High Average Average
No. of new kiosks
planned in next 1
year
30 150 -
3

4. COMPARATIVE ANALYSIS Contd..
TATA STARBUCKS COFFEE DAY XPRESS NESCAFE
Segmentation Customized coffee
takers
Aromatic Coffee
takers
Preferably Dark
Coffee
Target Market High disposable
income group
College students and
middle class families
Low and middle
class families
Positioning Sophisticated areas
and near big
branded shops
Markets, colleges,
corporates, railways,
airports, etc.
Railways, colleges,
bus-stands, etc.
Differential
Advantage Customized coffee Low prices and
brand name
Low prices
Price per cup
(150 gm.) Rs. 325 Rs. 180 Rs. 120
4

5. Macro level concerns of setting up more kiosks in Pune:
1. The prices of Starbucks products are high for the students
2. The weather conditions in Pune require high-cost storage facilities to prevent destruction
of coffee products
Micro level concerns:
1. Working class and students will flock in the evening and sales in the morning hours might
be less
FEASIBILITY: There are 3 positioning places (market, campus and highway) as shown below
MARKET CAMPUS AREA BOMBAY-PUNE
ROAD
Rent of 120 sq. ft.
land per year
98,000 36,000 24,000
Cost of machinery 50,000 50,000 50,000
Storage Costs 40,000 50,000 70,000
Transportation Costs 50,000 65,000 95,000
Cost of labour 94,000 50,000 30,000
TOTAL COSTS 3,32,000 2,51,000 2,69,000
5.

6. Fig: Graph showing growth expected in one year
0
0.5
1
1.5
Qtr 1 Qtr 2 Qtr 3 Qtr 4
Market Place
Campus Area
Bombay-Pune Road
Conclusion:
• For the inception of TATA Starbuck’s kiosk in Pune, the market
area near malls and in vicinity of branded shops should be
preferred as it offers highest growth rate which will eventually
cover up the formation expenses.
• The next best option would be in college campus as youth prefers
style and status.
THANK YOU
6.