Can Starbucks pose a threat to Café Coffee Day India?
– A lot is happening over coffee!
Starbucks is the world’s largest coffee house and it has already established itself in the Asian economies of China and Japan. Its recent move to enter into the Indian sub–continent is seen as its market strategy to capture market share in one of the largest emerging economies in the world. CCD, being the undisputed player in the coffee market (with approx. 60% market share) in India, is a well established brand. Objective :
To analyse whether Starbucks can pose a threat to the established dominant brand CCD in India. Current Scenario:
The coffee chain market in India is more than Rs.1000 crores and is growing at 30% Y-o-Y. Cafe Coffee Day is the biggest coffee chain in India. It has 1550 outlets scattered around Tier-1 and Tier-2 cities in India.1Starbucks entered the Indian market in 2011 with a JV with Tata Global Beverages and currently operates from 40 stores across India and is fast acquiring the high end customer segment.2 Methodology of analysis :
a) 5C framework for Starbucks
a. Understand the positioning and goals and objectives of Starbucks and CCD b. Understanding the threat that Starbucks pose to CCD and predict future initiatives of each. c. Analyse the market structure, motivation, distribution channels and income level of customers. d. Climate – Indian coffee consumption market and
b) Determine the POP and the POD between Starbucks and CCD
c) Brand Strategy
i) Bull eye
ii) Color wheelpage
iii) Brand Resonance Model
iv) Specific to Starbucks- Ansoff’s growth Matrix for strategy of starbucks