Tata starbucks kiosk
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The document discusses the coffee kiosk market in India and provides a competitor analysis of major coffee chains like Starbucks, Barista, and Costa Coffee. It notes that the coffee kiosk market in India is still untapped, with only 12-15% of the potential market developed so far. It analyzes the demographics, income levels, and behaviors of typical customers for each competitor. Finally, it recommends strategies for a new coffee kiosk entrance in Pune, including suitable locations in malls and other high foot traffic, high income areas and a pricing strategy within Rs. 40-100.
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Tata starbucks kiosk
- 1. Akshit Behera B 37 Batch: 2013-15
- 2. Generic View of the Coffee Kiosk Market • Scope for a booming market • Price of coffee sold at kiosks much lower than that sold in the shops • All the malls, train stations, colleges and airports have top end coffee kiosks • Most customers are young, aged 19-35 • More than 2000 coffee kiosks present in India as on July 2013 • Only 12-15% of the potential coffee kiosk market in India tapped till now • On the global front, much more popular than in India • Rubi Kiosk, an automated coffee machine, recently unveiled by Starbucks in collaboration with Coinstar 2
- 3. Competitor Analysis of Coffee Industry in India Starbucks • Demographic: Middle age professionals (24 – 60+ years) • Geographic: People living in metros and Tier I cities • Psychographic: Employees of corporate houses, coffee lovers, Barista • Demographic: Students and professionals (18 – 49 years) • Geographic: People living in metros and Tier I cities • Psychographic: Frequent shoppers at malls, coffee lovers Costa Coffee • Demographic: Young adults (18 – 49 years) • Geographic: People living in metros • Psychographic: Frequent shoppers, flyers, coffee lovers 3
- 4. Competitor Analysis of Coffee Industry in India (Contd..) Starbucks Income: Rs 60,000 per month and above Family Life Cycle Stage: Mostly married Behavioral: Loyal customers with positive attitude Barista Income: Rs 20,000 per month and above Family Life Cycle Stage: Mostly single, young Behavioral: Loyal customers with a positive attitude Costa Coffee Income: Rs 30,000 per month and above Family Life Cycle Stage: Single, young Behavioral: Less loyal customers but a positive attitude 4
- 5. Business Positioning & Strategy • Product: – Bottled drinks like Double Shot Energy Mocha Drink & Double Shot Espresso Drink – Chocolate beverages like Hot Chocolate – Espresso Beverages like Café Latte, Café Mocha and Cappuccino • Price – Starbucks being a new entrant in the Indian market, pricing has to be handled delicately – The coffee sold at a kiosk has to be priced way lower than that sold at the shop – With the small and large coffee being priced at Rs 80 and Rs 160 respectively at the shops, it is only feasible to price the same in the kiosks within a range of Rs 40-100 • Place: – Being an expensive brand, the kiosk has to be placed at a location where there can be interaction with crowds with higher disposable incomes – Places like Pheonix Mall, Inorbit Mall and Pune Airport can be targeted • Promotion: – Via FM radio, newspapers, banners and boards across the city 5
- 6. Conclusion • The coffee kiosk market in India has huge potential and has to be tapped intelligently to unleash its full potential • While setting up a kiosk in Pune it has to be ensured that it is placed at a location where it can be exposed to people with high disposable incomes • In Pune such places can be in malls like Pheonix and Inorbit • Other locations like Pune airport and the Hinjewadi and Magarpatta areas can also be explored • Pricing has to be handled delicately and can be introduced within a price range of Rs 40 to Rs 100 6