1. Harshita Shah
D 52
Batch 2013-15
TATA Starbucks
Coffee Kiosk

2. Coffee Kiosk Market
2
Estimated size of organised coffee retail market in India 200mn and
expanding annually at the rate of 14 to 20 %
Estimated number of stores by 2015 is 5000
Coffee chains are eyeing newer territories, like highways, and busy
premises such as hospitals and college campuses; experimenting with
scalable new formats including kiosks and coffee carts; firming up on
supply chains; refining and expanding menus, and also elevating the
overall experience quotient via exclusive coffee blends and
menu, unique crockery, digital interactivity experience, and
contemporary store designs.
Coffee Kiosk Market in India :
 CCD has 900 kiosks in 170 cities and towns (which is 75 per cent of the
total number of stores in India's branded coffee retailing market)
 Branded players in the Coffee kiosk market: Café Nescafe, Costa
Coffee, Gloria Jeans , Barista Lavazza
 Huge market share belongs to unorganized sector
International Players:
 Starbucks Coffee Kiosk, Seattle’s Best coffee kiosk, Costa
Coffee, Gloria Jeans etc.

3. Porter’s Five Analysis
3
Industry Rivalry
(High)
Specialty Coffee Retailers – Coffee Day Xpress, Nescafe
Kiosks, Costa Coffee, Barista Lavazza
Food chains offering coffee – Mconalds, Burger King
Unorganized Retail
Threat of
Substitutes (High)
Tea, cola, juices, energy drinks
Buyer Power
(High)
Low disposable income of the target group ( students
and young professionals)
Availability of substitutes and abundance of offers
Barriers to entry
(High)
Minimal Government restrictions
Cost of setting up kiosks is less
Supplier Power
(Low)
TATA Starbucks has coffee sourcing and roasting
agreement with Tata Coffee to provide coffee beans to
its outlets in India

4. 4
Target Market segmentation
Geographic: Institutions, Malls, Parks, Supermarkets, Airport,
Railway station
Demographics: Youth, Students and Professionals
Economy class: Middle, Upper middle class and Upper class
Psychographic: People looking for quick service time, high hygiene
standards, freshness and quality of delivery
Behavioral: Commuters - people travelling for work or leisure,
shoppers
ƒ Captive Consumers - people who are searching for
coffee refreshments in office parks, manufacturing
facilities, colleges, city centres
Competitors
Foreign brands: Costa Coffee, Gloria Jean’s
National Chains: Coffee Day Xpress, Café coffee day, Coffee Bean &
Tea Leaf, The Chocolate Room, and Café Nescafe
Local Outlets: Coffee hut, Perks and Brews, Coffee Stop

5. SWOT ANALYSIS
5
Strengths
•Strong brand awareness
•Low cost
•High brand visibility in Kiosks
•High food Quality
•Quick service
Opportunities
•Huge market size ( Pune –
Educational and Corporate hub)
•Growing middle class and income
of population
•Café and Coffee sales to increase
by 25% in the next five years
Weakness
•Lack of presence in Pune
•Expensive Pricing
•Limited food variety in kiosk
•Absence of seating facilities
(in the planned kiosk)
Threats
•Coffee is the secondary beverage
in India
•Established competition
(unorganized sector, Snacks and
juice counters
•Obesity and obesity related
problems in India
•Low per capita Income

6. Business Overview
6
TATA Starbucks kiosks are introduced in Pune with concept of
fast, hygienic, and convenient-to-eat food to consumers on the go at
affordable prices. Workplace environments, universities and hospitals can
provide quality coffee whilst generating significant revenue from
underutilised areas in reception areas, libraries, waiting rooms and retail
shops.
Proposed Location Hinjewadi IT park, Senapati Bapat Road ,
Hadapsar , Pheonix Market city, Symbiosis
Lavale Campus
Proposed Cost Rs 500, 000 for setting up kiosk and additional
training cost
Proposed area per Kiosk 75 to 150 square feet
Expected average footfall
per day
250- 300 consumers
Strategy To open 5 kiosks at strategic locations in
Pune having high traffic and high visibility
providing fast service to consumers on the go
at affordable prices.

7. 7

8. Bibliography
8
 http://businesstoday.intoday.in/story/competition-
in-coffee-retailing-grows/1/17520.html
 http://articles.economictimes.indiatimes.com/2012
-10-25/news/34729911_1_starbucks-howard-
schultz-tatas/3
 http://research-methodology.net/starbucks-
porters-five-forces-analysis/
 http://www.franchiseindia.com/articles/tag/Coffee-
kiosk-franchise