Café Coffee Day (CCD) is the largest coffee chain in India, founded in 1996, while Starbucks entered the Indian market more recently in collaboration with Tata. Starbucks realized it could not compete directly with CCD's scale and market share, so it differentiated itself by targeting India's premium coffee segment. Starbucks adopted a single-store format priced 1.5 times higher than CCD and located only in premium areas. This positioning allowed Starbucks to create an aspirational brand in India's upper middle class without direct competition from CCD, which focuses more on affordability and youth customers.

2. CONTENTS
01 Introduction
02 History
03 The Key Strengths
04 Starbucks entered in India
05 Differentiation Strategy
06 SWOT Analysis

3. Coffee is a part of our daily lifestyle, especially every morning. With every cup of this,
it helps us to feel relieved. It relieved us from hangovers and stress.
Introduction
• Café Coffee Day (CCD) is an Indian café chain owned by Coffee
Day Global Ltd Earlier known as Amalgamated Bean Coffee
Trading Company.
•It is the largest producer of Arabica beans in Asia exporting to
various countries including USA, Europe and Japan.
• CCD was founded by V. G. Siddhartha in 1996.

4. ‘Starbucks entering India', this was a news for the business media. They were
suggesting and explaining strategies, to survive the market entry of Starbucks.
Introduction
• Starbucks was founded by Jerry Baldwin, Gordon Bowker,
and Zev Siegl, opening its first store in 1971 near the
historic Pike Place Market in Seattle City in Washington
State.
• Starbucks the new entrant in collaboration with Tata
had all the resources to take battle head-on with CCD in
India.

5. History
• Starbucks - Three friends who all had a passion for fresh coffee,
opened a small shop and began selling fresh roasted, gourmet
coffee beans accessories and etc. The company did well, later start
ed selling brewed coffee, express-based hot drinks, snacks, mugs
and coffee beans Company started in 1971 in Seattle in
Washington, U.S.
• Café Coffee Day Global Limited Company is a Chikkamagaluru-
based business which grows coffee in its own estates of 20,000
acres. It is the largest producer of arabica beans in Asia,
exporting to various countries including U.S., Europe, and Japan.
V. G. Siddhartha started the café chain in 1996 when
he incorporated Coffee Day Global, which is the parent of the
Coffee Day chain.

6. The key strengths of Starbucks is its Distribution channel, affordable pricing and high brand equity.
1. Strong Distribution Channel: CCD has a strong store format through which it targets all the
segments. It operates its 1,550 outlets in three main formats which target different segments
• Regular café (1,495)
• The premium Lounge (51)
• CCD Square (4), which serves single-origin (rather than blended) coffee
• Apart from these outlets, CCD has also set up 600 takeaway kiosks called CCD Xpress, and
16,000 ending machines in corporate offices around the country.
Expansion at CCD has been driven in a grid of verticals and formats, where verticals include
transport hubs, shop-in-shops, hospitals, highways, college and corporate campuses
The Key Strengths

7. 2. High Brand Equity among Youths: Being the pioneer of
coffee culture in India, CCD enjoys high brand equity among
the youths with major chunk of CCD customers falls
within the age group of 20 to 30 which accounts for 60%
of the overall revenue. The group comprises of mainly
college going students and young working professionals.
3. Differential Pricing: CCD follows differential prices,
different stores of CCD has different pricing, which allows
CCD to maintain profitability at store level
The Key Strengths

8. What happened when Starbucks entered in India?
• Conventional wisdom suggests that Starbucks should take a
head on battle with CCD. However, Starbucks realized that it will
never be able to rival CCD in terms of sheer scale and market share
in India and even if it tries to do this will require huge investments
in real estate, threat of price war with CCD and other chains,
brand dilution etc. Starbucks also realized that CCD has high
brand equity among youths due to its affordable pricing due to
large young population which are its prime consumer base.
• But at the same time, Starbucks realized that CCD is weakest in
premium segments doesn’t have the clear positioning and scale of
operations. Moreover, this segment has no competition
(except CCD lounges and Squares)

9. Starbucks Differentiation Strategy compared to CCD & Other Brands

10. Starbucks Differentiation Strategy compared to CCD &
Other Brands Contd…
• Single store format: Unlike CCD, Starbucks will have
only one format. Single store format will allow Starbucks to
set a uniform brand expectations.
• Price: Standard pricing for all the stores but 1.5 times
higher than CCD.
• Location: Unlike CCD, Starbucks will have stores only in
premium positions to target upper middle class Brand.
• Positioning: By going premium, Starbucks is creating
an aspiration brand
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11. Comparative SWOT Analysis of CCD & STARBUCKS

12. Comparative SWOT Analysis of CCD & STARBUCKS

13. THANK
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