Coffee Market In India
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India has traditionally been a tea-drinking nation, but coffee consumption is growing, especially among youth in urban areas. While India is one of the top coffee producers globally, domestic consumption is low at around 85 grams per capita annually compared to over 10 kilograms in other countries. However, the market is untapped and coffee chains are expanding rapidly. Major players like Cafe Coffee Day have over 1,000 outlets but face challenges from low prices, high real estate costs, and increasing competition from new entrants. Developing new strategies around customer experience and locations will be key to further growth in India's percolating coffee market.
Coffee Market In India
- 2. 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
- 3. COFFEE-STORY Café bars have flocked like CCD, Barista, Mocha, Qwiky’s etc Became famous and even 5 star hotels started cashing on it. Coffee house started emerging at various places in the country.
- 4. 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
- 5. CASE OVERVIEW Untapped market Targeting and positioning of market Increasing the coffee consumption Creating a new entry point Expanding network Road block of ahead
- 6. COFFEE CONSUMPTION 12 10 9 8.7 8.4 8.2 7.9 6.8 6 4.5 4.6 4.4 0.085 0 2 4 6 8 10 12 14 KilogramsTitle Country
- 7. 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
- 8. GLOBAL COFFEE GIANTS EYES ON INDIA Market expansion on a faster rate Urbanization is expanding Coffee drinking – Fashion Growth in the disposable income
- 9. 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.
- 10. “ 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
- 11. TOP COFFEE BRANDS IN INDIA • Nescafe • Tata Coffee • BRU
- 12. MAJOR COFFEE PLAYERS IN INDIA
- 13. MARKET SHARE IN INDIA 34% 40% 20% 4% 2% Barista CCD Mocha Qwicky Georgia (Source: from case study)
- 14. RICH QUALITYQ POOR QUALITY LOW PRICE HIGH PRICE COMPETITIVE STRATEGY
- 15. STRATEGY BEHIND EXPANDING THE NETWORK
- 16. CREATING A NEW ENTRY POINT 1. Pilot-testing Bru World Café in Mumbai with four outlets 2. Roast green coffee beans in partnership with the Tatas. 3. franchise agreement with Domino's pizza chain
- 17. CREATING A NEW ENTRY POINT deals with leading oil companies like HP,BP Indian oil for setting up cafes in gas stations across India. 4. 5. Java Green from the Reliance Group began life as a cyber café in 2003
- 18. CHARTS OF OUTLETS • RETAILERS • PRESENT • FUTURE • Dunkin Store • 1 ( by 1 st Quarter 2012) • 30 • Gloria Jeans • 16 • 200 • Costa Coffee • 73 • 300 • The Chocolate Room • 2 • 40 • CCD • 1132 • 4000 RETAILERS PRESENT FUTURE Dunkin Store 1(by 1 quarter 2012) 30 Gloria Jeans 16 200 Costa coffee 73 300 The chocolate Room 2 40 Café coffee Day(CCD) 1132 400
- 19. HURDELS 1. Huge real estate cost 2.High rent cost 3.Low menu price 4.Manpower 5.High turnover
- 20. TIPS TO IMPROVE THE COFFEE SHOP REVENUE Eliminate low-margin item Prepaid gift card program Discount coupons and discounts Control waste and theft Evaluate hours of operation Eliminate bottlenecks in the ordering process Run employee sales contests Raise prices to bolster your company’s brand image
- 21. CONCLUSION Coffee market focus on promotion rather than expansion of outlets. Tapped the market with new outlets and offering new services. Capture the upper segment of the middle class Strives to deliver the best international standard of cafe experience With more players entering the arena, the challenges around managing costs
- 22. WEBLIOGRAPHY • www.indiacoffee.org • www.casestudyinc.com • www.coffee.wikia.com • www.slideshare.net • www.youtube.com