abhishreshthaa
Abhijeet S
INTRODUCTION
Success of Coffee Chains
Major Coffee Chains in India
BARISTA
4 P’s FOR BARISTA
PRODUCT
PRICE
PLACE
PROMOTION
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
POSITIONING OF BARISTA
Barista chooses the Benefit positioning possibility, whereby it positions Barista as a leader in a certain benefit which a customer desires to achieve. The benefit offered by Barista is a complete experience for coffee lovers.
VALUE PROPOSITION
Barista offers a lively, amicable and charged ambience where coffee-lovers can get together and enjoy the experience as a whole.
PORTERS’ GENERIC STRATEGIES
Focus :
Barista focuses on a niche market, gets to know it intimately and then pursues differentiation strategy by concentrating on achieving superior performance in an important customer benefit area, “experience”, which is valued by a large part of the coffee-lover market.
Research Objective
To find out the customer perception of and aspirations from Barista
Research Design
Sample size : 60
Equal number of males and females
Age Group : 20 – 35 years
Research Findings
SUGGESTIONS
- India is 3rd largest producer of coffee in world.
- Per capita coffee consumption in India is 55 grams a year.
- Four southern states account for about 80% of country’s coffee consumption.
Success of Coffee Chains
- Increased exposure to international lifestyle
- People are looking for more leisure
- People are spending more time outside homes
- Climbing up the hierarchy of needs
Major Coffee Chains in India
- Barista
- Qwiky’s
- Café coffee day
- Movenpick
BARISTA
- Offered ambience and experience of typical Italian espresso bar
- It promoted itself as a place where consumers could hang around comfortably
- Build the team of ‘Brew Masters’ instead of ‘Glorified Waiters’
- It has collaborated with Taj Caterers for the food it serves in its café
- In 2001, Tata Coffee Ltd acquired 34.3% equity in Barista for Rs. 26 cr.
4 P’s FOR BARISTA
- PRODUCT
- PRICE
- PLACE
- PROMOTION
PRODUCT
- NOT JUST COFFEE BUT AN EXPERIENCE
- COFFEE + AMBIENCE + SERVIECE = EXPERIENCE
- TOP GRADE ARABICA BEANS
- INFORMAL ATMOSPHERE, COLOR ORANGE
- FUN POSTERS, A MESSAGE BOARD, TV&MUSIC
- UNPRETENTIOUS DECOR
- KNOWLEDGABLE WELL TRAINED “BREW MASTERS”
- “SWAT” THE SERVICE MANTRA
- SELF SERVICE TO PROTECT THE PRIVACY
- EXPERIENCE CLOSER TO THAT OF THE ITALIAN EXPRESSO BAR
PRICE
- PRICE IS A KEY POSITIONING FACTOR AND MUST BE DECIDED IN RELATION TO
- THE TARGET MARKET
- THE PRODUCT & SERVICE ASSORTMENT
- COMPETITION
PLACE
- THREE KEYS TO SUCCESS OF BARISTA “LOCATION, LOCATION AND LOCATION”
- SELECTION CRITERIA
- SIZEABLE POPULATION OF EXECUTIVES, STUDENTS AND FAMILIES
- HIGH DISPOSABLE INCOME
- HIGH LEVEL OF ORGANISED RETAIL ACTIVITY
- RAPID SOCIO-ECONOMIC DEVELOPMENT
PROMOTION
- BARISTAS PROMOTIONAL STRATEGIES SUPPORT ITS IMAGE POSITIONING
- UNLIMITED CAPPUCCINO FOR Rs. 100/-
- BARISTA – STAR tie up
- BPL MSM – Cafe Borgia
- Festive prices
SWOT ANALYSIS
STRENGTHS
- Geographically well-distributed
- Alliance with TATA Coffee
- Effective supply-chain management
- Usage of top-grade Arabica Beans
- Brew-masters from Italy to create blends
- Best Italian Machines for brewing
- Perfect ambience providing a complete experiential lifestyle brand
- Rigorous training procedures for its employees
- Flat management structure which stimulates ideas
- Provides stock-options to its employees to create a sense of ownership
- Re-defining the service model
WEAKNESSES
- Not dominant in the South
- Poor penetration into the home- brewing market
- Lack of awareness amongst consumers
- about their promotional activities
- Limited Food-range
- High Pricing (Iced Cappuccino costs more than the daily pay cheque of 2/5th of India’s
- 1.1 billion people
OPPORTUNITIES
- Rising urban disposable incomes
- People looking for new vistas in
- leisure and lifestyle oriented concepts
- Global expansion starting with South- East Asia
- Tie-ups with leading hotels-chains,airlines & railway stations
- In-house cafes in office complexes, call- centres & national highways
THREATS
- India is pre-dominantly a tea-consuming country
- Local per-capita consumption is only 55 grams a year
- Competition from domestic players like Café Coffee Day, Qwiky’s etc.
- Competition from foreign coffee bars like Starbucks
- Vulnerable to currency fluctuations
- Government- mandated tender process which is slowing down expansion at major public places
POSITIONING OF BARISTA
Barista chooses the Benefit positioning possibility, whereby it positions Barista as a leader in a certain benefit which a customer desires to achieve. The benefit offered by Barista is a complete experience for coffee lovers.
VALUE PROPOSITION
Barista offers a lively, amicable and charged ambience where coffee-lovers can get together and enjoy the experience as a whole.
PORTERS’ GENERIC STRATEGIES
Focus :
Barista focuses on a niche market, gets to know it intimately and then pursues differentiation strategy by concentrating on achieving superior performance in an important customer benefit area, “experience”, which is valued by a large part of the coffee-lover market.
Research Objective
To find out the customer perception of and aspirations from Barista
Research Design
Sample size : 60
Equal number of males and females
Age Group : 20 – 35 years
Research Findings
- 46% of the sample size would like to go out to spend the evenings
- 75% go to Barista once a month
- 73% visit Barista on Impulse
- 87% visit Barista with friends, 8% with family and 5% prefer to go alone
- They prefer to go to Barista for its ambience and then for its coffee
- 60% of the sample size rate the quality of the food at Barista to be good.
- 84% of the sample size rated the quality beverages as good
- 73% of the sample size feel that the prices of the products are expensive
- 58% of the sample size suggested price reduction
- 51% of the sample size are rate the service as very consistent
- Most of them find the location of Barista to be convenient
- Most preferred locations: Airport lounges and Multiplexes
- Also preferred to have Barista at Railway stations and Highways
- Average Billing: Rs. 51 – 100
- Very low awareness of promotions
SUGGESTIONS
- Add value to the product i.e. The Experience
- Cater to needs of customers (consumer profile analysis)
- Have a franchisee ownership model
- Increase tie-ups with corporates
- Tie up with channels for promotion –Star TV
- Get press coverage
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