The document discusses the coffee kiosk market in India and provides a business overview and strategy recommendations for Starbucks to enter this market. It notes that the coffee kiosk market is prevalent in western countries and growing in India. It segments the market and analyzes competitors like Cafe Coffee Day. The document recommends that Starbucks target daily commuters and captive consumers as key market segments. It emphasizes the need for an effective marketing strategy involving suitable location selection, competitive pricing, quality control, and loyalty programs for Starbucks to succeed in the Indian coffee kiosk market.

1. TATA STARBUCKS
BIPIN KESHARWANI
A-41
2013-2015
“We offer coffee one cup
at a time and we are
building our company one
person at a time”

2. Generic view of coffee kiosk market
 Coffee Kiosks offer business owners the visibility of a
storefront without the price or long-term contracts
 Coffee Kiosk market is already very prevalent in
western and European countries
 Coffee sales each year exceed $75 billion
 Coffee consumption in India has increased from 55k
tons to 75k tons
 Indian coffee industry is about 400 cr in total and thus
has a wide scope of further expansion
 Various players in this segment are
Barista(34%), Costa Coffee, Cafe Coffee
Day(40%), Mocha(20%), etc

3. Market Segmentation:
SEGMENT Starbucks Cafe Day
Express
(CDX)
Costa Coffee Barista
GEOGRAPHIC Metro cities and
Tier I cities
,Urban
Metro cities, Tier
I & Tier II cities,
Urban, Semi-
Urban
Metro cities,
Urban
Metro cities, Tier
I cities,
Urban, Semi-
urban
DEMOGRAPHIC 24 to 60+ years,
Single, Married
16 to 34 years
Single, Married
18 to 49 years,
Single, Married
18 to 49 years,
Single, Married
PSYCHOGRAP
HIC
Employees of
corporate
houses, Busy
office goers,
coffee lovers,
coffee addicts
College
students, Busy
office goers,
coffee lovers,
coffee addicts
Frequent
shoppers at
malls, frequent
flyers at airports,
coffee lovers
Frequent
shoppers at
malls, frequent
flyers at airports,
coffee lovers
BEHAVIOURAL Loyal customer,
Positive attitude
Regular
customer,
Quick service,
economy
Regular
customer,
medium loyalty
Regular
customer,positiv
e attitude

4. Comparative Analysis
 Strengths
 ‘Live Coffee’ Mantra
 Better quality coffee offered
 Continuous product innovation
Weaknesses:
 Undisciplined Marketing
 Inflexible Pricing
 Does not tailor its branches according to location

5. Comparative Analysis Contd..
Opportunities:
 Distribution agreements with corporate houses, such as
hotels, airlines, and office coffee suppliers
 Numerous brand extension
 Improve on perception of instant and decaffeinated
coffee to expand that market share
Threats:
 New Entrants
 Competitive rivalry
 Substitution
 Customer psychology

6. Business Overview & Strategy
 As kiosk market is slowly growing, it is essential to
hold the nerve of this segment and thus segmenting
is the quintessential requirement
 Starbucks as a new entrant should concentrate on
possible customers in the following two market
segments:
 The Daily Commuters- someone traveling to/from work,
out shopping, delivering goods or services, or just out for
a drive
 The Captive Consumers- someone who is in a
restricted environment that does not allow convenient
departure and return while searching for refreshments, or
where refreshments stands are an integral part of the
environment eg colleges, small outlets outside IT and

7. Conclusion
 As Starbucks coffee kiosk is new development and
thus requires effective strategy and outlay plans,
especially in Indian market and in cities like Pune
which is a host to a large young population
 It should therefore resort to following considerations:
 Suitable Marketing programs:- it deals with distinctive
brand image, the fund raising and catering trailor,
advertisement and promotion, etc
 Proper Location- malls, transportation stations, colleges,
industries
 perfect price range compared to other rivals
 Coffee variety and quality control
 Demonstrate or provide samples
 Privilege card and reward program
 Local social media advertising