Kiosk of TATA Starbucks

Vijay Kumar Desiraju

A-33

Batch 2013-2015

Generic view of Coffee Kiosk market

Coffee worldwide production 7.9 MT out of which India market share 4.1%

Number Coffee Kiosks increasing at faster rate globally

Kiosks can be found in malls, Railway Stations, Airports etc.

Coffee consumption in India increasing at a very faster rate

Café Coffee day is having the most number of Kiosks in India (>900)

Starbucks is the leading coffeehouse shops worldwide including kiosks

Coffee café market in India expected to reach Rs.5600 Crores

COMPETITOR ANALYSIS

Competitors are CCD, Costa Coffee, Barista in the same segment

Other kiosks are upcoming in the form of xpress where the products are sold instantly such as CCD xpress and Costa xpress

CCD – easily available, affordable, range of varieties, pioneered the xpress

Costa Coffee – 1st international coffee chain to start its operations in India, prices are medium, planning to increase its outlets

Barista – Italian brand, Promoting by Barista Coffee membership card, provides luxury items at an above average price

SWOT Analysis

STRENGTHS

• Largest Coffeehouse company in the world gives an added advantage

• Pune-Raining city – Good for coffee lover

• It is a Tata Alliance

WEAKNESSES

• High price compare to rivals• Low rate of expansion due to recent

setup leading to lack of accessibility

OPPORTUNITIES

• Consumption of coffee in India is increasing exponentially

• Pune being student city, students get the coffee at lower price

• IT hub - young generation - place for spending time

THREATS

• Number of rivals are more in the segment

• People are getting more conscious towards the health hence reducing the consumption of fast foods

Business Overview and Strategies

Since it is a start up better to think about demographically

Marketing needs - for mobile societyMarketing trends - superior qualityMarket growth - coffee market increasing

exponentiallyPositioning statement – offices, colleges, mallsPricing strategy- comparable to the rival with

value added featureProduct – tastes matterPromotion strategy – sponsoring fests, events

CONCLUSION

TATA Starbucks should target the busy areas like Pune and major cities where the mobile people who wants to get refresh and lack their precious time can have the high quality whole bean coffees

Startup costs may incur and storage should be there for supply but will be having the better future in long term run by the help of kiosks