Coffee is the second most traded commodity globally after crude oil. It is consumed worldwide at a rate of over 2 billion cups per day. While India is one of the top coffee producers, domestic consumption remains low at just 85 grams per capita compared to over 4 kilograms in countries like France and Japan. The organized coffee retail market in India is growing and valued at approximately 25 billion rupees, dominated by large chains like Cafe Coffee Day but with new global players like Starbucks entering through joint ventures as well. Coffee production is concentrated in the southern states of Karnataka, Kerala, and Tamil Nadu, with small farms under 10 hectares accounting for 70% of production.

1. RAHUL PRATAP SINGH
A
54
BATCH 2013-15

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.

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• 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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7. Bibliography
• http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4607
• http://www.ico.org/new_historical.asp?section=Statistics
• http://www.coffeehabitat.com/2010/12/certified-market-share-part-1/
• http://www.trademap.org/open_access/Product_SelProduct_TS.aspx
• http://en.wikipedia.org/wiki/Economics_of_coffee
• http://powerpress.coffeetalk.com/files/ncamar.html
• http://www.ico.org/event_pdfs/seminar-consumption/rabobank-e.pdf
• http://asiancorrespondent.com/97958/middle-class-india-embraces-
coffee-culture/
• http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4607
• http://www.ico.org/historical/2010-19/PDF/CONSUMPTION.pdf
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8. Thank you
7/24/2013 8RPS