COMPETITOR ANALYSIS

Market Share of Major Coffee Retail Chains in India

The Indian coffee market is passing through an evolutionary phase where consumers preference
towards out of home consumption is developing. The exceptional growth of out of home consumption of
coffee in the coffee chains has been triggered by the young adults. The young adults segment of the
population spends major time outside home or at work, which has influenced the growth of the coffee
chains in India.
The retail coffee market in India is majorly dominated by Cafe Coffee Day with 1,134 chains
across India followed by Barista with 230 coffee serving chains and Cost Coffee with 74 chains. It is
being observed that almost 96% of the coffee retail market has been held by these three players and
the rest 4% being held by other small and new players. Overwhelmed by the response in India, coffee
retail giants are expected to expand their network in India in the near future.
Caf Coffee Day
Caf Coffee Day which is known as CCD was the largest coffee chain in India. Their mission statement
was To be the best caf chain in the country by offering a world class coffee experience at affordable
prices.
CCD was also the first coffee bar in India which was established in 1996 in Bangalore By
largest exporter of coffee in India, the Amalgamated Bean Coffee Trading Company (ABCTCL). In
2010, they dominate the market with a share of 75.5% with total retail outlets of 1034 in over 100 cities.
The company offers numerous options in the product offerings such as Cappuccino, Espresso,
Caf Latte, Cafe Mocha, Irish coffee and Ice tea along with wide variety of eatables such as sandwich,
cakes, burger and others. The products are offered to be consumed in the cafe as well as in take away
format. The company also offers various merchandise products such as coffee mugs, gift vouchers and
others.
Other brands are also promoted in a CCD outlet through innovative and interactive use of
posters, cards, danglers, leaflets, contest forms, etc. CCD has tied up with popular television serials
and also ran promotion contests for many brands. It had also tied up with some popular Indian movies
where CCD was featured in some of the scenes. CCD has six caf formats; Music Cafs, Book Cafs,
Highway Cafs, Lounge Cafs, Garden Cafs & Cyber Cafs. Music Cafs provided customers with the

choice of playing their favourite music tracks on the digital audio jukeboxes installed in the caf. CCD
has been also coming out with more formats like sports Caf, singles caf, and fashion caf.
Barista
Founded in 2000, the company is a pioneer of Indian Cafe culture. The company has positioned the
brand as a joint where people can indulge in conversations with a cup of coffee. The target segments
for the company are the youth and young adults, who are aware about the global lifestyles and enjoy
new flavours and taste of coffee. Barista is planning to expand its latest chain of cafes Barista Crme
Lavazza to more parts of the country.
Along with offering coffee, the company also offers fresh salads, sandwiches, pizzas, pastas
and desserts. The company offers in stores promotions from time to time along with other promotions in
commercials and films. Barista has a pan India presence with more than 230 retail outlets. 45 of the top
outlets offer Wi-Fi availability along with 75 outlets offering Blu-Fi for mobile savvy generation.
Coffee and other products at Barista were priced high and its target audiences were youth from
the upper-middle-class segment. The coffee at Barista was made with high-quality Arabica coffee
beans and baristas (brew masters) were invited from Italy to make new blends. Brotin Banerjee, Vice
President of Marketing, Barista, said, Our inspiration was the traditional Italian Espresso bars where
the idea is to create a home away from home." In 2001, Barista entered into a strategic alliance with
Tata Coffee Ltd. (Tata), the largest coffee producer in India. Tata later acquired a 35% stake in Barista.
The alliance allowed Barista to enlarge its distribution network and set up outlets in the Taj Group of
hotels owned by Tata and its other allied businesses.
In 2004, Amit Judge, its promoter, sold 65.4% stake of the company to an NRI businessman,
Sivasankaran (Siva), who later in 2004 bought the remaining stakes from Tata as well. After the
acquisition, Siva revamped the chain, opened more Barista outlets in Southern cities, and began
franchising its outlets. It started opening up a new outlet every 10 days. A new 26 look was given to its
outlets by making changes in its seating arrangements, in-store merchandise, and providing a better
youthful ambience of the store. The brew masters maintained friendly relations with the customers and
called them by their first names.
Barista joined with specialty retailers such as the music retailer Planet M, the book retailer
Crossword, and the Taj Group of hotels for setting up espresso corners in their premises. It also
launched a concept called BanCafe, a coffee shop within the bank premises and joined with the bank
ABN AMRO.

Costa Coffee
Costa Coffee was incorporated in India in 2005 with a tie up with Devyani International Limited, head
quartered in New Delhi, the Company serves the coffee lovers across India. Company inaugurated its
launch with 4 cafes in Bangalore. The company commands a share of 4.9% in the Indian coffee market
in 2010.
The Company offers different variety of coffee such as Espresso, cappuccino, cafe latte and
others. Some of the premium offerings which the company offers are muffins, cakes, desserts,
sandwiches, wraps and pastas. The company operates with nearly 74 stores across India. The
Company is planning to focus on the prominent cities such as Pune, Delhi, Mumbai and Bangalore. The
company is planning to predominantly expand in the metros.
Qwikys
Two software engineers, Shashi Chimala and Shyam, opened the first Qwikys outlet in Chennai in
1999. They were inspired by the specialty coffee bars in the United States. The menu at Qwikys
included varieties in hot Italian coffee, Indian coffee, specialty hot coffee, cold coffee, frappes, milk
shakes, tea, other beverages, desserts, and snacks. It targeted youths in the age group of 18 to 30
years. By 2002, the annual revenues of Qwikys were 43 million INR.
Qwikys had three types of formats; Qwikys Coffee Pubs were stand-alone coffee bars,
Qwikys Coffee Islands were outlets within big stores, multiplexes, and movie theatres, and Qwikys
Coffee Xpress were coffee kiosks. By 2006 it had over 20 outlets in nine cities in India and one
franchise in Sri Lanka. Qwikys had plans to open more outlets in metropolitan and large cities in India
and abroad through franchising its business. It had joined with retailers such as Lifestyle, Music World,
and Ebony to open store-in-store outlets.

CONCLUSION
Starbucks is another industry stalwart to enter the Indian markets due to vast potential and the huge
untapped market. Indian market is always influenced by the traditions followed in the Western
counterparts hence the success of Mc Donalds, KFC, etc to name a few. With access to Hollywood
movies where these brands are flashed quite often, the aura surrounding brands such as Starbucks
scale new heights. Indian consumers have always welcomed change when it comes to their taste buds.
Cappuccinos, Latte have eclipsed the traditional Espresso filter coffee. Filter coffee seems like
an archaic notion, only restricted to the elderly people. In fact the coffee shops have itself undergone a
tremendous transformation, with them replacing a hang-out joint for the teenagers.
The timing of their entry could not have been better. With Barista, Caf Coffee Day and Costa
coffee almost losing their sheen, Starbucks comes in like a breath of fresh air. The future outlook of any
company is not complete without an analysis of the industry in which it operates. The coffee industry of
India is the sixth largest producer of coffee in the world, accounting for over four percent of world coffee
production, with the bulk of all production taking place in its Southern states. India is most noted for its
Monsooned Malabar variety. It is believed that coffee has been cultivated in India longer than anywhere
outside of the Arabian Peninsula.
Tata Starbucks Limited, the 50/50 joint venture between Starbucks Coffee Company and Tata
Global Beverages Limited is bringing an unparalleled experience to Indian customers. Both companies
have a history of delivering product innovation and the highest quality experience to customers around
the globe. They are delighted to come together today and transform the coffee experience for
consumers across India, while providing a 28 community gathering place to connect with family and
friends. Thus, Coffee culture is poised to be deeply in-grained into Indian culture in the near future, if
this strategic alliance succeeds.