Differentiation strategy-Barista v/s CCD
History
• CCD opened its first cafe in 1996 on Brigade Road in Bangalore.
• Has largest cafe retail chains in India with 326 cafes in 65 cities around India.
• Head Quartered in Bangalore, majority of cafes in Bangalore.
• Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia
• Barista traces its roots back to the old coffee houses in Italy.
• The aroma of fine Barista coffee permeated in over 150 espresso bars across India, Sri Lanka and the Middle East.
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Industrial Feasibility
• Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore ISO 9002 certified company.
• 332 outlets across 70 cities .
• Each store requires an investment of about Rs 35-50 lakh.
• A cafe is being opened in Vienna as well.
• Café Coffee Day is a division of India's largest coffee shops.
• Coffee Day sources coffee from 5000 acres of coffee estates .
• The group turnover is expected to be around 3 to 4 billion.
• BARISTA COFFEE COMPANY LTD has chalked out a major expansion plan involving an investment of over Rs.25 crores.
• Barista to launch new concept stores called Barista Crème.
• The company plans to take the total network to around 170 outlets by the year-end from the present 130.
• The company plans to set up Barista Crème outlets in Mumbai, Bangalore.
SWOT AnalysisSTRENGTHS :
• Key Shareholders- Sterling Group of Companies.
• Strong brand equity-at reasonable cost .• Pioneers of organized coffee retailing .
OPPORTUNITY :• Barista sees a major role being played by it's
franchisees
PEST AnalysisSocial :
• Meeting place for friends and colleagues.
• Chicory blend rumour
Market Share• Barista to invest Rs.25 cr: Barista Coffee
Company Ltd., a wholly – owned entity of Sterling Infotech Group.
Mission / Focus
• Increase its outlets by 199 more by investing Rs.18.25 lakh in each outlet.
• CCD is aiming to create its own "niche market" abroad through merchandising Indian coffee powder, cookies, coffee mugs and curry paste.
• Barista has decided to invest Rs.25 crore during the current year to open 50 more outlets.
• Focus on Increasing outlets in south India and open outlets in Gulf regions and Bangladesh.
• Focus on food sales as its beverages have already became popular and increase the menu.
• Increase its merchandising from 3% to 8%.
Marketing / Advertising Strategies
• If CCD gets a good deal from any other media, it will definitely go in for a marketing deal. But as an advertisement option or as a marketing spend,they are not looking at mass media.
• Promotions of CCD through campaigns like Levi's, Liril ,TVS Scooty ,SugarFree,Channel V- Get Gorgeous Hunt, Himalaya Honey, Movie Tie-Ups.
• Barista Coffee Company announced the launch of the ‘ABN AMRO Barista Credit ’
Positioning
• CCD positions itself amongst the youth and young at heart.
Competition• The café is a meeting place for 15-
29 year olds, both male and female belonging to middle or upper middle class.More of the population being of females.Young or young at heart is its T.G
• The competition evaluates participants on three counts — ability to make espresso, a strong black coffee; make cappuccino, with milk and cream mixed in the right proportion; and innovation, ability to make a new drink and present it.
Recommendations
Conclusion
Group Members
• Priyanka Benegal 03
• Gunjan Thakker 80
• Sapna Nayak 43
• Archana Peswani 68
• Purvashree