Indian coffee industry journey
•Transferir como PPTX, PDF•
26 gostaram•27,630 visualizações
This presentation was presented by me and my two friends for the subject Industrial Policy Planning. It is about the indian coffee shop industry focusing on Cafe Coffee Day and the competition it faces
Recomendados
Mais conteúdo relacionado
Mais procurados
Mais procurados (20)
Semelhante a Indian coffee industry journey
Semelhante a Indian coffee industry journey (20)
Mais de Aaditya Nagpal
Último
Último (20)
Indian coffee industry journey
- 1. “Coffee day” Journey of Indian coffee Industry AADITYA NAGPAL BHAVUK SINGLA AAKASH SALUJA
- 2. COFFEE-HISTORY The Indian contest of coffee started with an Indian Muslim saint, Baba Budan in 1670. He smuggled seven coffee beans from Yemen to mysore in India and planted them on the Chandragiri hills in karnataka. It spread to other areas of Mynad in kerala , Shevaroys and Nilgiris in Tamil Nadu In 1942, indian government decided to regulate the export of coffee under the COFFEE BOARD OF INDIA
- 3. COFFEE-STORY Previously only a South-Indian drink Confined to the Rich Brahmin class Places for lawyers and educated class to hold discussion. The drink has now become more of a concept
- 4. COFFEE-STORY Café bars have flocked like CCD, Barista, etc Became famous and even 5 star hotels started cashing on it. Coffee house started emerging at various places in the country.
- 5. COFFEE SECTOR IN INDIA The 6th largest producer of the coffee in the world. Indian coffee has created a niche for itself in the international market. Arabica coffee from India is also well received in international market. Coffee production in India: Karnataka, Kerala and Tamilnadu. which contributes about 99% of total coffee production
- 6. INDIAN COFFEE Indian coffee has a good reputation in Europe for its less acidic and sweetness of character and thus widely used in Espresso Coffee, though Americans prefer African and South American coffee, which is a more acidic and brighter variety.
- 8. COFFEE CONSUMPTION Per capita consumption of coffee is just 85 grams in compare to other countries. In the annual output of 300,000 tons, domestic consumption is only a third(100,000 tons) India is predominantly a tea drinking nation. Coffee is a staple only in the southern part of the country
- 9. GLOBAL COFFEE GIANTS EYES ON INDIA Market expansion on a faster rate Urbanization is expanding Coffee drinking – Fashion Growth in the disposable income
- 10. MARKETING SITUATION Niche coffee retail formal is growing at 10 to 12 percent a year Organized coffee retail business-Rs 25 bn Coffee consumption in India has increased from 55,000 tones to 75,000 tones in the last three years 3 % of the world coffee production Export 80 % of the total produce.
- 11. “ I may be young, But please take me Seriously” Youth – between 15-35 years Students form a majority of customer base Likes to be in group Likes to sit, talk and relax Drinks a cup of Gourmet coffee with added flavours prefers snacks rather than meals
- 12. TOP COFFEE BRANDS IN INDIA • Nescafe • Tata Coffee • BRU
- 13. COFFEE BOARD OF INDIA This is managed by the MINISTRY OF COMMERCE AND INDUSTRY. This board was setup by an act of Parliament in 1940. The coffee board duties include1. Promotion, sale and consumption 2. Conducting coffee research 3. Financial assistance to small coffee growers
- 14. INDIAN COFFEE HOUSE The first Indian Coffee House was opened in New Delhi on 27 October 1957. They also serve dosa, sandwich, ic ecream,idly,etc at a very low price. This is an affordable place.
- 15. INDIAN COFFEE HOUSE The Indian Coffee House chain expanded across the country, with branches in Pondicherry, Lucknow, Nagpur, Ja balpur, Mumbai, Kolkata, and Pune by the end of 1958. These coffee houses in the country are run by 13 cooperative societies, which are governed by managing committees elected from the employees.
- 17. It was in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading Company Limited, popularly known as Coffee Day was formed.
- 18. CAFÉ COFFEE DAY •Known as Amalgamated Bean Coffee Trading Company Limited(ABCTL) •Started by V. G. Siddhartha in Brigade Road, Bangalore, 1996 •1497 company owned outlets in 200 cities • Largest organized retail coffee chain in India •ISO -9002 certified company.
- 19. PRODUCT • Grows the coffee it serves in its cafes • Well-equipped roasting unit • The eatables catered by different vendors -Ice creams- Cream Bell -Milk – Amul -Snacks from local vendors • Sells merchandise through its stores. • Enjoys trust for quality, hygiene and consistency of food.
- 20. PRICE • Affordable prices. • Price for a cup of coffee ranges from Rs 50 to Rs 200 • Only minor changes in the pricing policy due to changes in Govt. taxes.
- 21. PHYSICAL EVIDENCE • Logo - Larger font- Emphasis on the word CAFÉ. - Red signifies leadership and passion. - Swirl for purity of purpose and the feel of coffee. • Architecture and décor-uses bright colours and interiors according to the youth. • Designing of pamphlets posters and menu to attract the youth.
- 22. PROCESS • Ordering and delivery earlier was self service and now most of the coffee shops have waiters to take order and deliver at the table.
- 23. PEOPLE • Emphasis on motivation and personal skills of the people. • Friendly waiters and services. • Employees follow international standards of hygiene, cleanliness and personal grooming. • Reward Schemes like “Employee of the month”
- 24. PLACE • Prime factor for success- Located at every possible location where business can be generated. • Caters to target market with strategically placed outlet . Eg-Located in high street, gas station and near colleges.
- 25. PLACE • • • • Metros Tier-I cities ( Jaipur, Kanpur, Surat) Tier-II cities (Mysore, Guwahati, Jamnagar) Satellite cities and urban outgrowths (NaviMumbai, Faridabad, Secunderabad) • To be expanded to Tier-III cities • Tie-up with Ginger Hotels of the Taj Group
- 26. POSITIONING AND BRAND IMAGE • Brought café culture to India • For the youth: Young (AT HEART) customers, young and friendly staff • Highest distribution network • Target middle and upper middle class • Age group 15-29
- 27. CONSUMER PROFILE • Age group: 20-24 years- 37% 25-29 years- 27% • Gender: Male- 60% Female- 40% • Occupation: Students- 52% • Frequency of visit: Daily- 18% Weekly- 44%
- 28. CAFÉ FORMATS Different café formats: - Music cafes -Books cafes -Highway cafes -lounge cafes -Garden cafes -Cyber cafes Latest addition: Lounge cafes
- 29. PROMOTION Through SMS Valentine’s day promotion, “Café Coffee Day Luv Zone” Through Television • Held a contest around a very popular program on Zee English called Friends. • They have tied up with Channel [V]’s “ Get Gorgeous contest”. Ticket sales: They were involved in WWE, Elton John, and Bryan Adams ticket sales
- 30. PROMOTION Tie-ups • Liril, AirtelFriends. • HDFC wanted to promote their debit card and they choose Café Coffee Day. So 21 cafes have debit card machines. Association with movies • Bas YunHi • Khakee • Main HoonNaa • Socha Na Tha • MujhseShaadiKarogi SALES PROMOTION • SPECIAL CAFÉ CITIZEN CARD
- 31. REBRANDING • Earlier perceived as a place where intellectual meet • Positioned itself as a coffee bar and has maintained that position for a long time now. • CCD saw a latent market in youngsters • For youngsters- CCD a fun place where one can go anytime of the day and have fun with friends. • In 2002 CCD underwent a rebranding exercise. • CCD spent INR 1.5 billion to redesign existing cafes (2009).
- 33. DO YOU KNOW WHAT THE MAIN STRENGTH OF CCD IS? “ Good Coffee at affordable price”
- 34. WEAKNESS • Many of the CCD stores are incurring loses due to wrong site selection (national highways) • Product is not able to compete with international chains like Starbucks, Costa etc.
- 35. CRITIQUE ON OTHER COFFEE OPTIONS IN INDIA
- 36. CAFÉ NESCAFE Café Nescafe is a budget solution to the coffee demand. They use standard pre-mixes manufactured by NESTLE.
- 37. BRU WORLD CAFÉ • Promoted by HUL • Mostly present in Mumbai, as of now • Most direct competition to CCD
- 38. MAJOR PLAYERS IN INDIAN COFFEE INDUSTRY • • • • • • • Café Coffee Day Barista Lavazza Costa Coffee Coffee Bean & Tea Leaf Starbucks Coffee Gloria Jean’s Coffee Dunkin Donuts
- 39. NO OF STORES 1400 1200 1000 800 600 400 200 0 Café Coffe Day (1174) Barista Lavazza (200) Costa Coffee Coffee Bean Starbucks Gloria Jean's (85) & Tea Leaf Coffee (20) Coffee (7) (21)
- 40. I AM A COFFEE LOVER AND AN INDUSTRY OBSERVER…. CAFÉ COFFEE DAY MANAGEMENT SHOULD HAVE SLEEPLESS NIGHTS
- 41. BARISTA • Biggest Competition to CCD • Moderately Priced Higher than CCD ( But trust me, its worth it) • It was established in 2000 but was taken over by Lavazza • Barista has outlets in India, Bangladesh, Sri Lanka and the Middle East.
- 42. THE DIFFERENCE BETWEEN CAFÉ COFFEE DAY AND BARISTA • CCD ambience has become more college (or even high school) canteen-ish. The service staff are hard put to tell the difference between capuccinos and lattes or grande and regular. • Barista has remained constant in ambience, service and menu, since its inception. The coffee - particularly the lavazza - is incomparable which ever way you want to drink it. And the teas no less so.
- 43. COSTA COFFEE It is a UK based company and came to India in 2005
- 44. “ Very premium menu which is very European. The coffees and all other beverages taste very nice and are very high quality”
- 45. STARBUCKS COFFEE • Most famous Coffee chain in the world with highest no. of outlets • Entered India in 2013 in a JV with Tata Global Beverages Ltd. • Catering to premium customers and prices are slightly higher than Costa Coffee • The stores have got an Indian touch in them and the menu has Indian taste items too
- 46. STARBUCKS OUTLET At Connaught place, New Delhi
- 47. COFFEE BEAN AND TEA LEAF “ The Best Coffee I have ever had” Very Premium High Quality Products priced at the same price as Starbucks
- 48. MOCHA COFFEE CHAIN • 19 outlets all over India mostly in Mumbai and NCR • It stands for the coolest coffee shop in the country with its own sense of style • They also serve liquor in their cafes • Earlier used to serve Sheesha too • They have wider food menu “Every shop can have its own wild and intense flavour. Everything from a wall to a cup can have its own sense of expression and identity. That diversity and variety in every outlet enriches rather than confuses. And makes it a coffee shop people love to visit once more.”
- 49. COFFEE CULTURE IN FIVE STAR HOTELS
- 50. SEA LOUNGE at HOTEL TAJ MAHAL PALACE, MUMBAI Sea lounge offers old colonial charm with art deco furniture and live Piano music enhanced by its spectacular view of the Arabian Sea. It is considered to be a city institution for traditional Afternoon Tea featuring an elaborate buffet spread of classic English delicacies and Local Indian favourites complemented with a selection of the world’s finest teas and coffees.
- 51. Sea Lounge is a favourite for its light lunch and dinner fare and Mumbai street food including Bhel Puri, Sev Puri, Kheema Ghotala Toastie and Vada Pav . In the evenings, guests may choose to opt for a quiet glass of Champagne or a cocktail as they watch the lights from the moving ships on the harbour.
- 52. KAFE FONTANA at HOTEL TAJ PALACE, NEW DELHI It overlooks the pool with its landscaped gardens, green palms, putting green and blue shimmering water, all of which can be viewed through the lovely Venetian blinds.
- 53. REVENUE COMPARISON • CCD stores on an average do a sale of about 30 lakhs per annum form each of their outlets • Costa is able to manage about 60 lakhs and even 1 crore from some stores • Interestingly Starbucks has done on an average of 1 lakh per day sale from each of its outlets which is very high • Coffee Bean & Tea Leaf does an annual sale of about 3.5 crores from each of its outlets
- 54. CONCLUSION… “In India… A lot does happen over coffee”
Notas do Editor
- HELLO FRIENDS I M GOING TO PRESENT THE TOPIC
- MAJORITY OF CUSTOMER BASE ARE YOUTH AND STUDENTS…
- My friend aakash talked about indian coffee house, which was the only coffee chain uptil the 90s. Now the era has changed and now i am going to discuss the present coffee chain in india....
- At present, CCD has 1,497 outlets, out of which three are in square format, 47 in lounge and rest in cafe formats. All these are company owned.CCD has footprints in 200 cities as of now and by 2015 it will spread to about 400 citiesCoffee chain Cafe Coffee day will open over 500 outlets by 2015 to take its total network to 2,000 outlets as part of a pan-India expansion programme.
- Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Coffee Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The eatables at Café Coffee Day are catered by different vendors: example: ice creams are catered by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery. Café Coffee Day also sells merchandise through its stores. 5 per cent of the revenue comes from sale of merchandise. e. Most of the eatables have been adopted to meet the Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc.
- Considering that Café Coffee Day knows its major customer lies in the bracket of 15- 29, it has tried to derive a policy whereby it can satisfy all its customers. T
- The order process at Café Coffee Day is based on self-service, where the customer goes to the counter to place his order. Whereas they have a flexible delivery process, where they wait for some time for the customer to pick up the order but if the customer takes too long then the order is delivered on his table.
- Café Coffee Day had to concentrate on the quality and quantity of their human resource in order to meet up with the set standards. They make sure that the employees all across the country are well trained and provide consistent services at every outlet
- t 37% of the customers are between 20 and 24years. 27% of the customers are between the age group of 25-29 years. 60% of the customers who visit the café are male and 40% are female. 52% of customers who visit the cafes are students. 18% of the customers visit the cafes daily while another 44% visit weekly. Each café, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm.
- Its customers are mostly young college students and young professionals. It is for those who are young or young at heart. Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket
- They also have their magazine called as ‘Café Beat’,Their promise to the customer is that a lot can happen over a coffee. So every time they try to ensure something good happens to their customer. So they have a contest going on with Levis, another one with Scooty, Liril, latest one with Airtel Friends. Another placement area they have is with HDFC. HDFC wanted to promote their debithe Café Citizens Card entitles members to a 10% discount on all food and beverage bills.
- Earlier it was perceived as a place where intellectual people meet but now they mainly target the youngsters.
- CCD doesn’t sell product, it sells “EXPERIENCE”