Coffee Parlours in India GÇô Hotting Up

8/6/2019 Coffee Parlours in India GÇô Hotting Up

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Project Presenters

Saurav Roy

Payel Sengupta Vijay Tewari

Maharshi Sen

Asutosh Gupta



Basic Outline

A brief Summary

Differentiation and cost leadership are the two generic strategiesthat a company can adapt to create a competitive advantage in amarket. What are the strategies that Barista, CCD and Qwiky·shave adapted? Which strategy do you think is suitable for the

Indian market? Give reason to justify your answer Barista, CCD and Qwiky·s target different segments. What is the

segmentation strategy adapted by the three players? Alsocomment on the potential of the each segment

Starbucks is planning to enter the Indian Coffee retailingmarket. Of the three players discussed in the case, who do you

think is competitively better placed to face competition formStarbucks and maintain their growth?

Do you think that the intense competition in the coffee retailingbusiness is likely to cause consolidation? Explain with reasons



A Brief Summary

The given case study mainly focuses on three main

players in the Indian coffee market ² Barista, CCD and

Qwiky·s

The Case study focuses on the development of the

Indian coffee market

The case study has made comparisons as to how

Barista, CCD and Qwiky·s are different from each other

Comparisons have also been made regarding their

market strategies adapted by each of the three players The case study has also given us an Idea as regards the

ambience of the three stores and the way they attract

customers



Contd..

The case study has given us an idea about the rapid

expansion as well as the spread of various coffee outlets all

over India

An overall idea is also obtained as regards the target

audience of the three outlets One also gets to know about the various innovations in the

products of their respective stores and also about the

customers get educated about the products

An overall idea is also obtained as to why customers are

getting attracted towards these coffee outlets It is not only just the ¶coffee factor·, the case study has also

highlighted various other factors that has made these stores

popular such as promoting caps, T-Shirts and Coffee mugs



Differentiation and cost leadership are the two generic strategies that a company

can adapt to create a competitive advantage in a market. What are the strategies

that Barista, CCD and Qwiky·s have adapted? Which strategy do you think is

suitable for the Indian market? Give reason to justify your answer

Barista, CCD and Qwiky·s have obtained the ¶differentiationstrategy· to gain competitive advantage in the market.

As far as Indian market is concerned, differentiation strategy is best suited to the Indian market. This is because:

Indian market potentially is a very huge market. In order tosurvive in the Indian market, one needs to be different fromothers that can help distinguish from one another in themarket

If the market players are following the same strategy, thereare chances that a saturation point will be created sooner or

later which does not help the ¶development factor· Differentiation is a major factor which is very much essential

in the Indian market. But this differentiation must beaccompanied by creativity as well as innovation which willplay a major role as far as the survival factor is concerned



Contd..

Differentiation enables market players to have that

¶competitive edge· over their rivals. One should always try to

exploit the weakness of their nearest rivals and on the other

hand also try to convert its weaknesses into strengths

In order to survive in a market, one must have somethingthat distinguishes itself from their rivals. This ¶distinguishing

factor· can be enhanced through differentiation. This will help

the firm to stay one step ahead of their nearest competitors

So, in short, it can be said that for a market like India, the

¶differentiation· strategy should be adapted. One must havethe ability to distinguish itself from the others otherwise it

wont be possible for a firm to survive especially in a Country

like India



Barista, CCD and Qwiky·s target different segments. What is the

segmentation strategy adapted by the three players? A lso comment on the

potential of the each segment

Barista, CCD and Qwiky·s have differentiated

themselves on the basis of ambience, décor,

service, price, quality and customer relationships Barista have mainly targeted the youth from the

premium sector of the society

CCD has targeted the mass market. CCD perceives

the whole market to be its playground Qwiky·s have targeted the youth in the age group of

18 to 30



Contd..

The potential of each segment can be highlighted as follows:

Barista have targeted the youth from the premium sector. Itis expected that this sector will be well off as regards incomeand livelihood . This segment will have relatively highpotential as youths are many in numbers and are very enthusiastic and vibrant in nature

CCD has targeted the mass market. In this case, thepotential will be huge as it is trying to cater to the needs of entire gamut of people ranging from lower class people tothe absolute elite class of the society

Qwiky·s have targeted the youth in the age bracket of 18 to30. This age group are found in huge numbers across thecountry and are very much modern in their outlook. They respond very quickly to the changes in the society and havehuge potential within them



Starbucks is planning to enter the Indian Coffee retailing market. Of the

three players discussed in the case,who do you think is competitively better

placed to f ace competition form Starbucks and maintain their growth?

Of the three players discussed in the case, CCD is better placedto face competition from Starbucks and maintain their growth.This is because:

CCD has targeted the mass market consumer. They haveconsidered the whole Indian market as their playground. Thisstrategy has not been adapted by Barista and Qwiky·s

Hence, Strategically, CCD is better placed than Barista andQwiky·s

Moreover although CCD is unable to keep pace with barista, it isgrowing steadily all over India and have catered to the needs of the entire gamut of people

CCD has also priced its products 20% lower than its

competitors. This strategy has been adapted by CCD in order toattain competitive edge over their nearest rivals

The above mentioned points will help CCD to face competitionform Starbucks and maintain its steady growth in the market



Do you think that the intense competition in the coffee retailing

business is likely to cause consolidation? Explain with reasons

The case of consolidation seems to be unlikely in thisscenario. This is because:

Each of the three coffee parlours have their own way of functioning. They have different identities, differentambience, different prices, quality and customer relationship

Each of these coffee parlours have their own way of operationand are vying for the top position in the Indian Coffee marketin their own way

Each of these coffee parlours have their own way of looking atthings and the way they go about carrying on their business

Each of these coffee parlours will always have somethingdifferent to offer to the customers

All these above mentioned factors distinguishes one firm fromanother thus putting light on the ¶differentiation· factor



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Coffee Parlours in India GÇô Hotting Up