barista vs cafÉ coffee day
TRANSCRIPT
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BARISTA VS CAF COFFEE DAY
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Coffee
India is the largest consumer of coffee.
Coffee is now the worlds 2nd mostvaluable legal commodity after oil.
Coffee is grown in 50
countries,consumed in every city onearth and employs 24 million people
worldwide
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Coffee Retailing in India
Estimates : By 2005 , India would be home to
5000 coffee houses
Sunrise sector expected to notch up Rs. 3000
crs by 2005
For a generation high on appearances , money
to spend,coffee bars are a timely mean
between five stars and Udipis
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North-South Divide
Per capita annual consumption in India
55
5
240
0
50
100
150
200
250
300
Average India North India South India
Consumtioningrams
A NorthIndian drinks on an average I cup of coffee in a
year.There is a great potential for the market to grow.
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These cafes allow customers to spend asmuch time as they prefer
In these cafes the staff are not glorifieswaiters but are brewmasters ,professionals inthe art of making coffee
A large chunk of coffee retailing happens
through the small coffee outlets The single largest market for Indian coffee
remains the domestic market
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World coffee market statistics(in mn
60 kg bags)
For the year
ending Sept
30,2002
1997 199
8
1999 2000 200
1
2002 2003
Production 103.
8
97.5 108.
4
113.
3
117 110.
7
122.
1
Total use 108.
9
103.
1
110.
3
116.
5
114.
7
114.
3
117.
9
Ending
Stocks
29.1 24.7 24.3 21.3 23.6 20.1 24.3
Ending 27 24 22 18 21 18 21
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The product
The product is undoubtedly coffee.But Caf on its agenda has
much more than coffee.It is a place that provides a nice
ambience,good music,a nice plan to spend some time out with
friends.It is much.. more than coffee.
Since the product is more about emotional & self expressive
benefits the key to success will be :
1. Branding ,branding & branding
2. Segmentation,targeting & positioning
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The Domestic consumption
Domestic consumption
Present domestic consum pti on of co ffee is 60000 tonnes
Per capita consumption is 46 grams
According to some estimates in 3 years
India's production of coffee 300000 tonnes
75000 tonnes
Caf required 50140 caf
Number of caf at the end of 2004 950 caf
We will never have more than 6000 caf
Number of caf at the end of 2002
Number of caf at the end of 2003
256 caf
600 caf
Therefore there will be a great potential in packaged coffee
marketed as an FMCG.The Caf culture will spark offdomestic consumption.
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Break up of consumption
Coffee Cafe Development Break-up in India
North
41%
South
45%
East
5%
West
9%
North
South
East
West
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Market size of players
Approximate market size (100 crores)
Barista65%
Caf Coffee Day
20%
Qwiky's
10%
Others
5%
Barista
Caf Coffee Day
Qwiky's
Others
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Comparison of 2 Brands
vg. area per caf
Started business
Company
Barista
Amalgamated Bean company
Caf Coffee Day
1996
Number of Cafes
Outlets proposed
Avg footfall per outlet
Barista coffee company
February'2000
108
350 customers 800 customers
52
1000 square feet 110 square feet
250 200
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The Challenges-3 Years hence
How do the brands remain relavant with the times??
How do they respond to competition from international players like
Star Bucks??
How do brands maintain quality standards along with rapid growth?
What should be the strategies in the new paradigm?
Product MixBrand strategy & positioning
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The Dilemma
Should Barista target the small niche market or huge
mass market??
Solution !!!!!!!!!!!!
The launch of a subbrand called Amoeba endorsed by
Barista
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BARISTA
Amoeba
From Barista
Targetted to eliteniche market
Targetted to massyouth market
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The Brand -
Brand Essence :Change/Adaptablity
Core identity:A quality service along with an element ofsurprise,mystery & excitement.Adaptable to changing times.
Value proposition:A value offering with quality & excitement.
Positioning:Expect the unexpected
A brand built mostly on surprise promotions & events.
Amoeba
From Barista
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The Change factor
The Amoebas will wear different uniforms daily.
The crockery might be changed from time to time.
There will be surprise promotions & winners.
There will be surprise items in the menu .
Even the settings might be changed.
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Targetting & Positioning
Barista Amoeba
Target market :Executives,Business Youth & Genaration X
man,professionals,elite class
Postioning :International experience A quality offering atTo relax & unwind affordable price delivered
with excitement
Amoeba
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Lines
Barista Amoeba
Cafes Retailing
Cafes RetailingVending
Amoeba
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The product
2 absolute different kinds of cafes .
Barista Amoeba
Product : 65 % international coffee 50 % coffee,50 % snacks
25% international snacks like Italian & food,more variety of
& Mexican ,10 % Indian snacks like Indian snacks to increasePastries ,puffs etc footfalls & revenue.
Coffee type : Mostly Arabica Mostly Robusta
Amoeba
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Contd
Barista Amoeba
Ambience:Relaxing,soft music/ Exciting,Pop music
Classical music,books & magazines contests ,association
Games like chess,scrabble. with sportstars,celebrities
Service :by educated Baristas Self service
Customized Coffee
Self made coffee
Amoeba
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Pricing Strategy
Barista Amoeba
Premium priced.An average Priced a little higher than
bill for 2 will be Rs 150. CCD.Eg A coffee costing
Rs 18 at CCD would cost
Rs 20.An average bill of
Rs 50 .Combo meals
Work on margins Work on volumes
Creating differentiation Focus on cost reduction
International standards through efficiency
Amoeba
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Place
Barista Amoeba
Ownership :Company owned Franchisees,Masterfranchise : Company owned
Focus :Consolidation Expansion with standards
Locations:Most premium areas Crowded youth areas
Prestige clubs,Golf courses Shopping malls,multiplexes
Alliances:Bancafe,
Blue chip corporates Good college campuses
Amoeba
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Promotions
Barista Amoeba
Corporate membership Student membership
Personalized CRM Monthly winnersCredit accounts Sports promotions
24 hours service Inhouse events like MTV,
Music releases
Sponsorships of Music Cross promotions with
Concerts,Art exhibitions, Cross words,Music
world,Planet M,Apparels
Amoeba
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Contd
Barista Amoeba
Brand Ambassador: None
Amitabh Bachchan
No inhouse selling of apparels,shoes,Cds etc.Though someshow windows might be there in case of cross promotions &
sponsorships.
Amoeba
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2 brand strategy
Successful examples like Gilette Happy news & Holiday Inn
hotels from Mariott.
Advantages of a double brand policy:
Brands can focus on their segments.
Barista can become a monopoly in its niche segment.
Both the brands can have a rub off effect from each other.
The Brands can enrich & revitalize themselves.
Parent-Child relationship
Parent:Successful,sophisticated Child:Energetic,Aspiring
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Brand Ambassadors
Barista AmoebaAmoeba
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CafCoffee Day
Caf Coffee Day currently owns and operates
52 cafes in all major cities in India.
It is a part of India's largest coffee
conglomerate named Amalgamated Bean
Coffee Trading Company Ltd.( ABCTCL ),
Rs. 200 crore ISO 9002 certified company.
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The first Caf Coffee Day was opened in
Brigade Road in 1996, Bangalore's busiest
shopping area.
At that time, the caf culture had still not
arrived in India. In that sense, Caf CoffeeDay is the pioneer of the concept in India.
Over the years Caf Coffee Day currently
owns and operates 79 Cafs in all major
cities in India.
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Mission Statement
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Product M ix
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The significance of the Colours
RED stands for leadership andvitality. It also stands for passion (
for coffee).
The GREEN stroke harks back to
our coffee growing heritage and the
coffee plantations that we own.
R id i
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Rapid expansion
Expansion spree Revamp of image
Change in logo
Redesigning interiors New range of colours
New menu
Change in crockery Change in baseline a lot can happen over
coffee
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200 outlets ,400 coffee retail stores,turnover of Rs.650 crores byMarch 2004.
Coffee day- VendingMore than 3000 vending machines at
high traffic zones serving fresh filtercoffee by march 2004
For travelers , office goers who are ahurry
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Target segment
An in-house research shows that Caf CoffeeDays customers are mostly young college
students and young professionals:
Age between 15- 29 yrs
- outlets designed to look young and trendy
vibrant colours lime green , yellow, purple ,
orange
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Customerss profile
Customers of Cafe coffee day
Males
60%
Females
40%
Males
Females
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5.5 5.33.3
22.4
37.9
24
0
5
10
15
20
25
30
35
40
Percentage
>45 35 - 44 30 - 34 25 - 29 20 - 24 15 - 19
Age Group
Age Profile of Customers
Age profile
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USP
Exclusive relationship with plantationdivision of the amalgamated beans co
Enjoys cost advantage because of diestaccess to coffee beans from cos 5000acre plantations
Provides world class products ataffordable indian prices
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Competitors
Barista
Qwikys
Craze- not just coffee
Small restaurants & Stalls
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Future Threats
Singapore based Coffee Club Ltd. allset to enter Indian markets
Starbucks
Fast moving consumer goods company
Hindustan Lever Ltd (HLL), in the line
ofCafe Coffee Day and Barista, may
soon open coffee parlours in thecountry.
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Any customer who bills a minimum of Rs 100 ona single bill is automatically eligible formembership to the Cafe Citizens Programme.
Members will also receive surprise gifts fromIndiatimes Shopping when they reach a total
billing amount of Rs 2,000, Rs 5,000, and Rs10,000.
Regular feedback from customers- feedback forms in alloutlets t know tastes and preferences
Juke boxes in few outlets
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Pric ing
The price of items ranges from Rs.5 and goes
up to Rs.35, which is a very reasonable rate
and does not pinch one's pocket
Coffee products priced between Rs. 10Rs.3510% - 20% cheaper compared to other
coffee chains in India
The coffee starts at Rs 15 and desserts go up
to 60 bucks (for a sinful ice cream sundae)
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Promotion
BHARAT Petroleum Corporation andCafe Coffee Day, Ltd, announced analliance to open Cafe Coffee Day
outlets in select BPCL petrol pumps.
The outlets will be stand-alone cafes orkiosks or coffee counters at the BPCLretail outlets.
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Customer sat isfact ion and retent ion
Bangalore, July 1, 2002 - Caf Coffee Day
announced the launch of the first customer loyalty
program"Caf Citizens Program" launched through
NetCarrots Loyalty Services to reward regularcustomers ofCaf Coffee Day.
Caf Coffee Day is the first caf chain in India to
introduce a customer loyalty program.
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Customer Profile
Customer profile of Barista
Males
40%
Females
60%
Males
Females
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Common trend amongst all the
coffee bars They all go for youngsters
The outlets are designed for young people in the age
group of 15 - 29 to hang out - preferably for hours, no
sweat. With air-conditioning and music, messageboards full of wise-cracks, indoor games such as
chess, scrabble and pictionary.
These pubs are virtually an extension of the college
canteen, but thoroughly upscale versions.
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What sets Barista apart??????
From the point of view of:
Customer - It comes across as a pepped
up, modern version of Indian Coffee Housein the 70s.
Company The coffee bean, the machine
and the brew master
S F t
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Some Facts
Promoted by Java Coffee Company, now along
with Tata Caf in Feb 2000. Total Value Rs.75 crores
Total area Over 1,00,000 sq. ft.
35,000 customers any day, average time spend
45 minutes.
20% visit daily and 46% walk-ins are women.
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Existing Strength
Planning to open 250 outlets and achieve sales
turnover of Rs. 100 crores by March 2003.
The word 'Barista' means 'a bartender / expert in
the brewing and making of coffee', and is Italian
in origin.
They have off-premises outlets like theones Barista has opened at ICICI, GE, e-Excel,Triburg and Taj hotels.
Opened up recently in Srilanka.
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Target segment
Average age - 21 yrs
Up market Caf
Professionals, Working couples, andfamilies in SEC A & B categories who
detest the loud ambience of coffee pubs
Has weaned away customers who usedto frequent 5 star hotels for good coffee.
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Product - Coffee
Uses 92%ArabicaThe reason for it
being costly.
Taste Bitter
Pays more attention to coffee rather
than ambience. More than 10 varieties.
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Sources of Coffee
Along with coffee procured domestically, italso sources coffees of foreign origin fromtheir respective markets.
The latter facility is a strong point for Barista,in that Italian coffee preparation style iscentral to international coffee drinking habits.
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Product - Mix
From traditional favourties such as
Cappucino, Espresso Macchiato,
Espresso Italianno, Cold Brrrista,Frozen Coffee, sandwiches, and variety
of desserts, breads like Panini
Cappucino Rs. 40, Usually aboveRs.30
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Experience The Differentiator
Overall it has been as a coffee experiencebut not restricted to coffee. Though 67 percent of its revenues come from beverages,
Barista, seeks to be more of a lifestyleexperience.
A place to hang out and not a just a cafor eating joint.
Th C f
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The Cafe
Experiential Life Style Brand
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Choice of locations
Basically metros or larger towns.
Choose locations with a high turnout of
youngsters and residential areas for theupper segment.
Not much of attention is paid to parking
or other facilities except for the size ofthe caf.
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Logo
Positioning
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Positioning
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Positioning
Seeks to position itself as Fine Caf
and not just a Coffee Pub the way
others have positioned. Espresso served in a soft caf
ambience at the right price.
Ambience and experience of a typicalItalian neighborhood espresso bar.
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Promotions and Tie - Ups
Absolutely Everyday Contest - the perfect vehicle
for the Star TV and Barista to reach out to its
audiences as it combines the best of the
entertainment world with good coffee.
Tie ups with Singapore Airlines, Evian, CNBC,
Planet M, PVR Cinemas
With Lacoste To sell their products
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Competitors
Other coffee bars
Qwikys
Caf Coffee Day Craze Not just Coffee
South Winds
Pubs, College Canteens, HangoutJoints
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Employees
They are trained under genuine Italian
Baristas
A Barista competition for employees - TheBarista who wins the event will represent India at
the global competition in Boston.
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What are they???
Whats Barista?
Term for a coffee
brewmaster and thepeople serving are
called Baristas.
Whats Amoeba?
Dynamic, Vibrant,
Lively. Keepschanging its form.
The people serving
will be called
Amoebas.
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We welcome the coffee pub
culture. The gap b/w the struggling coffee
vending machine at the corner store &the expensive 5 star coffee shops hasbeen filled.
A quiet revolution is sweeping urbanIndia with the proliferation of Italian style
coffee-bars.
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Proposals
Shop Online: bringing the coffee culture tothe younger generation , which is constantlyon the internet, surfing & chatting. Portals are
the way to mkt coffees. Educate the customers about the virtues and
finer pts of coffee drinking
Business Gifts & Rewards : make goodbusiness sense.
Coffee break essentials: choc. Medallions,etched barista glass mugs, coffee maker
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Cont..
Barista Cart: a lightweight card with a
fully automatic espresso machine with a
built in chiller..can be wheeled to anylocation
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What Customers Say????
Barista, relaxing, chilled out Justto your senses.
The atmosphere here smells so cool Its easier to change ones religion tan
ones coffee
WORK: the stuff that you do b/w coffeebreaks
East or West, Barista is the best.