The café market in India is expected to grow threefold to Rs. 5,600 Crore by 2017. Over 1200 cafes have opened, including international brands like Starbucks and domestic brands like Café Coffee Day. A comparative analysis of CCD, Barista, Costa Coffee and Starbucks shows they differ in number of stores, locations, promotions, products, and pricing. The business overview proposes opening a coffee kiosk in Hinjewadi, Pune catering to people aged 22-35 by serving quality coffee and affordable Indian cuisine. The conclusion states that India's young population and growing coffee culture could make it a million-dollar industry since India produces coffee beans domestically.

1. R A M E S H C H . P R A D H A N
D I V B | | R O L L N O 1 9
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25th July 2013

2. Coffee Kiosk Market
The café market in India is expected to grow threefold in the next five
years to become a whopping Rs. 5,600 Crore ($ 1 billion) market by
2017, Café Market Forecast & Opportunities
1200 cafes have sprung up in the Indian market, the latest being Tata
Starbucks café in New Delhi. Café Coffee Day the single largest player
in India
International Biggies : Costa Coffee, Lavazza , Starbucks, Mocha
Indian Brands : Barista’s, Café Coffee Day, The Chocolate Room
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3. Comparative Analysis
CCD
1. Owns and operates213 cafes in all
major cities
2. They are also strategically located at
family entertainment centres/ high
street
3. It grows the coffee it serves
4. The quality checking is continuous and
on floor by the operational in charge
5. 5% of its revenues comes from
merchandizes; There has been only
minor changes in pricing policy
6. Operation is self service but also have
flexible delivery
7. Over 52% customers are students and
mostly lie in age group of 15-29 yrs.
8. It has positioned itself as youngster’
hangout hub
9. Do not carry out mass promotion but in
form of ticket sales, tie
ups, associations with events etc
10. Has its own transportation facility
BARISTA
1. Exists in over 22 cities and has 140
outlets nationally.
2. Strategically locate outlets at family
entertainment centres/ high street
3. Largest stake holder: TATA coffee, which
is also its major supplier of coffee beans
4. Has a quality check every 14 days and
employs TQM
5. Has a skimmed price policy, began with a
higher price and with sudden growth in
number of outlets, it gained benefits of
economies of scale
6. Order and delivery based on self service
7. Over 65% of population falls in 15-30 age
group
8. Position themselves as brand that are
more like European cafes
9. Carries out mass promotion in form of
press TV and radio media
10. Outsources its transportation need
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4. Comparative Analysis Contd..
Factors Costa Coffee Starbucks
No Of Stores 1700 (approx.) 21000(approx.)
Place
Locations with good
exposure, accessibility and
competitive edge
Outlets located at non-
high street areas
Promotion
Brand name is enough,
awareness spread through
masses
charity, product
placement
Product Luxury image, perfect
service
Enlarge product line:
coffee,tea,smoothie,cho
colates,sandwiches
Price Comparatively high “ We don’t want to be
price leader – We serve
more for more “
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5. Business Overview And Strategy
 Location : Hinjewadi ,Pune ( more crowd in the age group of 22-35 years )
 Install quality coffee machines and quality furniture so that maintenance cost is minimized
 Coffee Kiosks should be located in areas where mostly young crowd gather
 Indian cuisine to be served like dosa , tandoori items , samosa , paneer tikkas etc.
 Competitive Pricing as compared to other coffee houses
 Inclusion of health drinks , ice creams, chocolates as well
 Focus on ambience and décor
 Main Area Of Focus : To serve quality coffee and food at an affordable price
 Offering special cuisine on occasion of Indian festivals
 After reaching a respectable market position open up the kiosks with premium price range in
tier-1 and tier-2 cities
 Focussing on daily commuters : people travelling to/from work, out shopping, delivering goods or
services, or just out for a drive
 The capital expenditures of facilities and equipment are financed. There will be minimum inventory on
hand so as to keep the product fresh and to take advantage of price drops, when and if they should
occur

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6. Conclusion
 Millions of cups of coffee are consumed daily in the U.S. and thousands
of entrepreneurs are capitalizing financially because of it
 Such a revolution can take place in India considering the young
population of the country and the growing coffee culture in the country
and can well prove to be a million-dollar industry
 India being the 6th largest producer of coffee , so any dependency for
coffee beans is not there per se
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