Coffee culture is growing rapidly in India, as rising incomes allow more people to enjoy coffee in cafes. The three major cafe chains - Cafe Coffee Day, Barista, and Starbucks (which recently entered the Indian market) - are expanding across large cities. They differentiate themselves on factors like atmosphere, design, service quality, and prices. Cafe Coffee Day pioneered the cafe trend in India and targets middle and upper-middle class customers, offering a relaxed environment. The cafe business has potential for much more growth as coffee consumption increases among India's expanding urban populations.

1. COFFEE PARLOURS IN INDIA…….
HOTTING UP!!!!!!!!
- SANJEET
KOTHARI
MM1214550

2.  India is the home of chai, sugary and milky tea ladled into
tumblers at street stalls for around five rupees.
 However, as Indians' disposable incomes rise, cafes are
cropping up in large cities. The country's cafe sector is worth
$230m , there is tremendous potential to improve domestic
coffee consumption considering rising per capita income in
the urban middle-class
 The coffee bean is converting people all over India with
cafes whisking up many different aromatic coffee
combinations.
 Coffee lovers have always been lyrical about the virtues of
this beverage – coffee inspires poetry and inflames prose; it
is capable of firing passion, and stir people to romance, and

3.  Coffee cafes are the points where
philosophers, writers, painters, and musicians spend
hours savoring their coffee and let their creative juices flow.
 Coffee is presently the second most traded commodity in
the world. It is second only to oil.

4.  The three dominant players Barista, Cafe Coffee Day and
Starbucks differentiate themselves on the basis of
ambience, decor, service, price, quality, and customer
relationships.

5. CCD
 For Amalgamated Bean Coffee Trading Co. (ABC) owned by
Siddharth Hegde of Karnataka, Café Coffee Day represents
forward integration.
 Three generations of the family have been in plantation
business. The family owns 2,500 acres plantations and 50
depots that buy beans from 10,000 traders. •
 ABC is one of the largest coffee export houses.
 This provided the company an opportunity to build its own
brand of coffee, where freshness and choice of blend are
critical.
 It is here you get real feel of coffee.

6.  CCD also provided a relaxing ambience with eye-catching
crockery and bright décor. The paintings on the wall were
made by young artists, with the objective of promoting
young talent.
 CCD outlets also promoted their paraphernalia such as
caps, T-shirts, and coffee mugs.
It positioned itself as a place to hang out and spend time
leisurely. It targeted the middle class, upper middle
class, house wives and students
 Baseline was changed to ―A lot can happen over coffee‖
 One could order an
Espresso, Cappuccino, Lattes, Mochas, frothy or
intense, icy or piping hot, and aromatic and exotic coffee.

7. BARISTA
 Barista takes its name from the Italian term for a coffee
brew master.
 Its softer ambience and higher price distinguish it from
others.
 Coffee bean is treated in a way that gives coffee
a richer, sweeter taste.
 The bean, the dispensing of the brew, and the actual
brewing – makes Barista tick.
 Target customers include professionals, working
couples, and families who detest the loud ambience of
coffee pubs.
 People spend 45 minutes on an average in this cafe and 70
per cent are repeat customers.
 Barista has a ‗Skim Pricing Policy‘. They began with a
higher price, and skimmed the cream for the market.

8.  Barista adopted a three-pronged approach to expand its
business.
 The first was to open espresso bars in various cities across
the country.
 The second approach was to target institutional areas
 The third approach was to target the home segment.
 Reiterating the bond between books and music
lovers, Barista has small bars in music retail chains, Planet M
and Crossword.
 To fuel the boom, Barista plans to sell out a training school
for Indian brew masters, coffee-tasting clubs, and coffee
appreciation sessions

9.  Starbucks, the world's largest coffee-shop chain, Seattle-
based company has entered India through an $80m joint
venture with Tata at Elphinstone building, Horniman circle.
 Starbucks runs 18,000 stores in 60 countries globally.
 Two more stores would be opened in Mumbai — at Oberoi
Mall in suburban Mumbai and at the Taj Mahal Palace hotel
in South Mumbai.
 Starbucks would target premium market.

10. ADVERTISEMENT AND PROMOTIONS
 Online promotion
 Printmedia promotion
 Events sponsorship
 Radio channel
 Corporate and institute collaboration
 Cobrand with several banks for credit cards.

11. TODAY’S CAFES REFLECT THE BEFITTING
AMBIENCE
 Barista is brightly lit with orange coloured tabletops, Italian
furniture, and music resounding in the air.
 Qwiky‘s has transparent glass walls through
which consumers contemplate the buzz of the world. A
message board on which a consumer can scribble a line to
loved one.A Buddhist bell to sound one‘s satisfaction by
ringing it. The brew is lip smacking variety of imported
toppings
 Cafe Coffee Day offered an informal ambience with bright
and eye-catching interiors. Visitors could sip coffee, browse
the internet, conduct business meetings or just while away
time with friends. Cafe Coffee Day is well looked as a cool-
hangout for college crowed and teenagers. This promoted
young artists and displayed their paintings on their walls

12.  Coffee sitting is incidental to hawking a lifestyle.
 The emphasis is on merchandising, such as T-
shirts, greeting cards, and wristwatches.
 Each of the cafes plans a portal and a guest loyalty
programme.
 With this high demand boom in coffee retailing, the image of
coffee is changing from old-fashioned to young and modern.

13. FUTURE MARKET
 CCD is deepening engagement with consumers and expand
network.
 CCD and Barista Lavazza, are making roads in small towns.
 Starbucks in India will not restrict itself to fivestar
locations, and is considering railway stations and university
campuses
 Market for these café‘s would increase to 30% in next three
years.

14. Thank You