Disclaimer

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Brand Ambassador, Round 2Tata Starbucks

By,Shivam Sharma (B-62, 2013-15)

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Contents

•Coffee market overview (International and Indian)

•Competitor Analysis•Segmentation Study•Business Overview•Feasibility Study•Conclusion•Source

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Coffee kiosk marketInternationally:•Coffee is the second most traded commodity in the world, next only to oil.•Over 2.25 billion cups of coffee are consumed in the world every day with high amount of consumption in US and European regions.•As per the 2008-09 sales figures, coffee displays an inelastic nature in terms of demand.

Indian Markets:•The market evaluation stands to an estimated Rs.1100 crore expected to grow to a whopping Rs 2,250 crore by 2017.•More than 1,200 cafes have sprung up across India in the past decade.•One of the fastest growing organized retail segments with almost 40% annual growth.•Dominated currently by: Cafe Coffee Day, Baristas, Costa Coffee, Coffee World, Lavasa, Coffee Bean.

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Competitor Analysis (Using SWOT)

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Barista Café Coffee Day

Costa Coffee Starbuck’s

Strength - Strong Brand Recall

- Loyalty Programs

-Variety-Own coffee estates

-Reputation for value of money-Variety

- Rated No. 1 brand in coffeehouse segment- Valuation $4 billion: capital strength

Weakness Perceived as an expensive brand

High brand awareness only in few regions

Very few stores

-Product pricing- Negative publicity

Opportunity Can diversify into tea segment

Tap Smaller Markets

Tap new markets like other regions of India

Expand to emerging economies

Threat Dependent on Govt commodity rates

New Entrants like starbucks

Intense price competition

-Trademark Infringements- Supply Disruptions

Segmentation along with STP Analysis

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Barista Café Coffee Day

Costa Coffee

Starbuck’s

Segment On the basis of age and income

On the basis of income and geography

On the basis of age

On the basis of income and geography

Target mainly youth segment and middle and high income segment

mainly youth segment in urban areas

mainly youth and middle aged segment

mainly middle and higher income segment in urban areas

Positioning Premium coffee

Relax and Enjoy your coffee – Lot can happen over coffee

Coffee that suits all

Premium coffee experience

Business Overview•A 50:50 joint venture company, owned

by Starbucks Corporation and Tata Global Beverages

•The outlets are branded Starbucks "A Tata Alliance”

•Serves coffee that is 100% locally sourced and roasted

•As of June 2013, Starbucks operates 15 outlets in 2 cities of India (Delhi and Mumbai)

•Avani Saglani Davda (CEO)

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Feasibility Study • The population of the Pune urban

agglomeration is around 5,049,968• The city has proportionately large no. of

students and young professional populations than Metros or any other city in India

• Number of Café Coffee Day outlets in Pune – 51 thus displaying scope for a large market

• Pune also has a high capital income of Rs 46,000 per annum with a good amount of disposable income.

• The standard of living is also high in Pune.

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Conclusion

•Pune will provide a good market for Tata Starbuck’s with good growth opportunities as well.

•Suggested Area to set up outlet – FC Road (Near Fergusson College) MG Road Koregoan Park

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Biblography• http://dailycoffeenews.com• http://wikipedia.org• http://zeenews.india.com• http://en.wikipedia.org/wiki/

File:Tata_Starbucks_logo.jpg• http://articles.timesofindia.indiatimes.com/

2008-08-05/pune/27945189_1_esr-capita-income-pune-district

• http://www.numbeo.com/cost-of-living/city_result.jsp?country=India&city=Pune

• Self

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END

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