The document discusses coffee consumption preferences in Jaipur, India. It begins by noting that coffee outlets are increasing rapidly in India and that customer preferences are influenced not just by coffee quality but also overall experience. It then provides background on how coffee is produced globally and some facts about coffee production. The objective of the study is to understand factors influencing customer visits to coffee outlets and their preferences regarding service, price, staff, atmosphere and types of coffee/menu items.

1. COMPARATIVE
STUDY OF
CONSUMER
PREFERENCE
IN COFFEE
OUTLETS OF
JAIPUR

2. INTRODUCTION: COFFEE BASICS
• Coffee Outlets are increasing at a very
high pace in India. Earlier coffee was the
main reason why people visited a
particular coffee Outlet. However today
there are many other factors other than
quality of coffee that influence buying
behaviour of customers. These Coffee
Outlet customers look for something
special—the only reason why they are
willing to pay so much for a cup of coffee!
The overall experience and aesthetics is
today a major constituent in the way
customers perceive about a coffee Outlet.
The coffee will only attain the customer
but an overall experience would retain the
customer and make him stay for a long
period of time. India has become a
favoured nation for coffee Outlets
popularly referred as Cafes. The coffee
chains market is increasing t a very rapid
rate and is expected to increase more in
the next five years with the entry of
international giant Starbucks.

3. HOW COFFEE IS PRODUCED
• Specialty coffee is a multicultural and culinary
work-in-progress. By the time coffee is consumed,
it has been subject to at least seven momentous
processes carried out by seven potentially
unrelated parties resident in anywhere from two
to four parts of the world. Unlike fine wines,
which are often bottled by the same people who
grow the grapes and produce the wine, coffee is
not bottled and is not just purchased, opened,
and enjoyed by the consumer.
• The process of bringing coffee from the crop to
the cup is kicked off by someone who grows and
picks the coffee fruit. A second party (usually)
buys the fruit and removes the soft, fruity parts
from the seeds, then dries the seeds (now called
beans), two steps together known as processing
and both crucial to the ultimate quality and
character of the coffee.

4. ABOUT COFFEE /INFORMATION AND
COFFEE BEANS
• A coffee tree produces an average of one
and a half to two pounds of coffee per year.
That represents from 3 to 4 thousand hand
picked coffee cherries and 6 to 8 thousand
coffee beans.
(A normal cherry contains two beans but ten
percent of the time the cherry contains only
one bean: the mystical and highly prized pea
berry!) How's that for exciting coffee
information?
Now just let me get out my calculator here:
Let’s say 1.5 pounds yield per tree, per year.
2.4 billion pounds of coffee are sold annually
in the U.S. alone. That means that
approximately 1.6 billion trees are required
annually just to supply the U.S. When people
say it’s a small world, well it just makes you
wonder.

5. COFFEE FACTS
8 oz. Cup = 85 to 110 milligrams.
Espresso-single shot= 35 to 45 milligrams.
Brewed tea weighs in at about 40 milligrams.
Chocolate = from 10 to 20 milligrams. (Milk
chocolate is less than dark.)
An entire coffee tree of average size = approx
6000 milligrams.
A 150 lb. bag of coffee = approx 510,000
milligrams.
And just for fun: The trunk of my Honda Civic
filled with coffee = approximately 1,530,000
milligrams and I do mean approximately.
Arrowhead Stadium, KC: O.K., O.K., I’m still
working on this one.

6. OBJECTIVE OF THE STUDY
To provide a clear insight about the customer perception we will
have following points as ourmajor objectives for the analysis –
• To study the factors which influence customers in visiting a
coffee Outlet.
• To study consumer’s opinion and perception about the service,
price, staff, ambience etc of a retail coffee Outlets.
• To study the customer preference for coffee.
• Types of coffee being liked by the guest and choice of menu
items.
• What attracts the more about the outlet to customer.
• To under stand the customer views about outlet.

7. REVIEW OF LITERATURE
The review of literature provided by café coffee day and Costa coffee is indicative
of its brand image .The menu ,posters ,pamphlets are all traditionally designed ,
with a classic and simple look one aspect of particular note is their magazine,
which is privately circulated in the café. The magazine encourages customers
write, draw, make etc anything creative, and this is then published in the
magazine. The magazine not only provides an avenue for advertising , but also an
opportunity for C.C.D and costa coffee to express its brand image currently carries
out mass promotion campaigns .Coffee proves to be an ideal beverage within the
society. It is ideal to have coffee shops that operate on daily basis thus serving the
needs and preferences of the population. One of the most essential Reasons for
consumptions of coffee is to stay refreshed. People make coffee shops their
meeting Points to interact. Coffee shops in Jaipur are the most popular places
people like to spend their time in.The coffee market in india has been growing due
to the demand for ready to drink coffee and it has become a part of an individuals
daily concept basket. It is café coffee day and costa coffee that understand the
changing trends in the taste and preference of the consumers. The main expertise
of cafe coffee day and costa coffee is in the service retailing of the coffee while
they carry out operation sector also

8. INTRODUCTION OF COMPANIES
Café Coffee Day
Café Coffee Day is the favourite destination for coffee for
young and the young at heart. They are part of India's largest
coffee conglomerate, Amalgamated Bean Coffee Trading
Company Limited (ABCTCL). Popularly known as CCD, the
company tries to provide an overall experience to all its
customers. The concept of Coffee cafes was introduced in
India by CCD. The first outlet/café opened in 1996 on Brigade
Road in Bangalore and continues to be a lively place in the city.
The young and the young at heart found it a place that they
could call their own for sometime and relax, sit down, listen
to conversations and talk, have a lot of good fun or even hold
short meetings while drinking coffee. CCD today is totally in
line with the audience it targets. The brand shares a strong
relationship. With an exciting journey CCD is now the biggest
coffee retail chain in India. Café Coffee Day is a division of
India's largest coffee conglomerate, Amalgamated

9. INDIA'S DOMESTIC COFFEE
MARKET
• India accounts for about 4.5 percent of world coffee production and the industry provides
employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70 percent
of country's total coffee production followed by Kerala (22 percent) and Tamil Nadu (7 percent).
Europe accounts for about 70 percent of India's total coffee exports. Major Indian coffee importing
countries include Italy, Germany, Russian federation, Spain, Belgium, Slovenia, US, Japan, Greece,
Netherlands and France.
With the market size of about Rs.1600 crore, the domestic coffee market is very important and has
a potential for growth in the beverage market. A stable and growing domestic market assumes a
great importance to the Indian Coffee growers, distributors and coffee processing companies.
Promotional campaigns to increase the demand must be through generic marketing and
advertising. In this context it becomes essential to understand the nature of demand function for
coffee in the domestic market. If the price sensitivity of coffee demand is low then it justifies the
use of non-price factors such as advertising and generic marketing campaigns to promote coffee
demand.
• The two main reasons for the slow increase in demand for coffee in India can stated as follows:
• Coffee is considered as a gourmet drink confined to middle class literate segment. It has still not
penetrated the low-income groups as tea did.
• Coffee is an acquired taste and habit formation is an influencing factor in consumption. Coffee is
considered as more expensive than tea, and needs more sugar and milk for preparation than tea.

10. FINANCIAL PLAN
Underlying Assumptions
• To test launch Dil Dosti & Coffee Cafe in Jaipur with a franchisee outlet at an
estimated cost of about Rs. 25 –30 lakhs for a period of one month and to further
continue the franchisee.
• To advertise in the areas, through bus stand hoardings and other hoardings around
the launching locations in Jaipur two weeks before the official launch in that area.
Total estimated cost Rs.30-40 lakhs. (For the period of six months).
• The launching of 3-6 outlets in Jaipur, at prime locations whose outlets would
either be fully owned by the company or through franchisee at an estimated cost
of around Rs. 4 to 5 crores.
• To launch 2 Dil Dosti & Coffee Cafe Mobile Coffee units at the end of the third and
the sixth month at a total cost of around Rs.12 lakhs.
• To launch 20 Dil Dosti & Coffee Cafe coffee espresso corners at Jaipur railway
stations, bus depots, tourist spots and other such areas where it is economically
viable.
• Cost of Raw Materials would be around Rs. 1cr (6 months)
• Creditors paid 7 days end of month
• To tie-up with food specialists for introducing better quality confectionaries
• Coffee seeds to be purchased only from wholesalers (Indian and foreign)

11. Financial Highlights (Best Case
Scenario)
• Cash positive at the start of the third year of operation.
• Rs 5 lakhs committed to R&D each year for developing in house variety of
coffee.
• Cash surplus to be invested into purchase of a coffee plantation farm or
company.
• To reduce over head costs by constantly following the Total Quality
Management (TQM) at all the outlets.
Breakeven Point
• Assumed to be arrived at the end of second year (best case scenario).

12. Advertisement Revenues
• We assume to earn an advertisement revenue from in house ads. at around Rs 15
lakhs for the period of six months.
•
• It’s become a trend for the Indian youth to sip steaming mugs of latte, cappuccino
or mocha after college. Professionals crowd in the afternoon to grab a quick bite of
a sandwich and wash it down with a cup of coffee in the hectic lunch hours. Many
even conduct their client meetings over a cup of coffee. There are die-hard coffee
fanatics for whom these coffee parlors have become the getaway from the daily
grind, where they can sit back, relax and surrender to the simple pleasures of
coffee. Well, it’s the coffee culture that speaks no discrimination of color except for
the color of coffee.
•
These coffee hangouts have an interesting array of the brew varieties to choose
from – ranging from the ubiquitous ‘Expresso’ to Italiano, Romano, Cappuccino,
Mocha or Latte. Some of these parlors keep the country-specific varieties viz.,
Columbian, Kenyan, Ethiopian. The master Baristas create the blend from the top
grade beans, of course using the Expresso method to extract the aromatic oils of
each bean.

13. STAFF ACTIVITIES & REQUIREMENT
• Apprenticeships (Opens new window)
• Entry requirements
• Income
• Working hours and conditions
• Work activities
• Market Segmentation
• Target Market
• Positioning
• Product Differentiation

14. MARKETING STRATEGIES
• 4 P’S OF MARKETING
•
• Product
• Price
• Promotion
• Place
• Marketing Strategies
• Recruitment And Training
• Additional Features
• Introduction of Parcel Facility
• Marketing Strategies For A Coffee Bar In The Corporate World
•
•

15. SWOT ANALYSIS
Strengths
Quality products
Successfully test marketed in Jaipur
Skilled and committed team
Good tie up strategy.
High investment in research which thereby create new products in the market.
Capitalize on Strengths
• Market entry and to gain market knowledge
• Favourable consumer perception
• Jaipur seen as test market ground for Jaipur
• Management has skills and experience in a variety of areas
• Ability to negotiate on tie ups with companies
•
•

16. Weaknesses
• Management team is new to the market.
• Board not yet finalized
• Limited Jaipur experience
• Company doesn’t own any plantation.
• High competition
•
Address Weaknesses
• Committed to expansion
• Positions to be offered to venture partners
• Professional sales team recruited with assistance of venture partners who will have affinity
with, and experience in the food/beverage industry.
Threats
• With the entry of new competition in the market the existing café shops will become more
alert, due to which they will become more aggressive in their approach by giving more
discounts and some other techniques of marketing by which they can get more customers.

17. BENEFITS OF LAUNCHING COFFEE
CORNERS
• is low ( as compared to coffee bars)
• By launching coffee corners at variety of places we can easily penetrate the market
• Customer awareness is done at a faster rate.
• Dil Dosti & Coffee Cafe can advertise its products at a wide range.
• At every coffee corners there will be 2 types of coffees sold at a reasonable rate.
BENEFITS OF LAUNCHING MOBILE VANS
• It requires one time investment.
• It reaches the consumers through places like open ground exhibitions and concerts.
• It also reaches the places where the sports competitions are held such as play grounds
• By reaching at variety of places Dil Dosti & Coffee Cafe can advertise itself to a large
extent.
• By using mobile vans transportation of raw material is easy.

18. COMPETITIORS ANALYSIS
BARISTA
• Promoted by the New Delhi-based Java
Coffee Company, Barista is the fastest
growing coffee retailing chain in the country.
The brand takes its name from the Italian
term for a coffee brew master. Since
beginning Barista has tried to position itself
as a fine café and not as a coffee pub that
Qwiky's and Café Coffee Day are.

19. 4P’S
(1) PRODUCT :- The product of Barista includes a variety of coffees, special tea’s, food
and beverages, ice-creams and pastries.
(2) PLACE :- The first Barista outlet was started in March 2000 in New Delhi, where tea is
much more of a universal drink than coffee. Currently, the company operates around
140 outlets across the country. In Jaipur, barista has 2 outlets at places like world trade
park and raja park.
3) PRICE :- Barista brews a cut price strategy . Barista has recently cut prices of nearly
all items in its menu card by 20-25 per cent. The new pricing strategy is a result of the
recent change in the brand positioning of Barista-from indulgence to a hangout.
Barista has also introduced new low-priced beverages which shows that it follows
penetration strategy.
(4) PROMOTION :- Barista is offering consumer promotions at their existing outlets
whereby on the purchase of a Barista coffee worth Rs 150, consumers can avail of a
Lacoste gift voucher worth Rs 500 and a Lacoste calendar. Barista has plans to make a
foray into branded merchandise such as caps, T-shirts, coffee mugs and other
promotional ways

20. PORTER 5 FORCE MOD
• BARGAINING POWER OF BUYER :-
• THREAT OF NEW ENTRANTS :-
• THREAT OF SUBSTITUTE PRODUCTS :-
• BARGAINING POWER OF SUPPLIERS :-
• RIVALRY :-

21. S T P D
• Segmentation : -
• Targeting : -
• Product differentiation : -
• Positioning : -

23. CONCLUSION
• The scientific evidence suggests that moderate coffee
consumption does not increase the risk of coronary heart
disease or stroke. In fact, in women, moderate coffee
consumption has been associated with a reduced risk of stroke.
In addition, regular intake of caffeinated coffee does not appear
to increase hypertension risk. Coffee’s effect on cholesterol
levels is largely dependent on the brewing method used.
Although there is some evidence to suggest that high coffee
intakes increase blood homocysteine, the relationship between
high homocysteine levels and cardiovascular disease risk is
unclear.
• The observed effects of coffee consumption on cardiovascular
disease and its risk factors are unlikely to be explained by
caffeine alone.