2. Coffee Kiosk Market
Segmentation India Global
Branded Outlets 1700+ Countless
Major players
Café Coffee Day - 1440+
Barista - 200+
Costa Coffee - 100+
(Planning to open 200more stores
by 2015)
Gloria Jean's - 15+
Starbucks - 21000+
Costa Coffee - 1700+
Dunkin Donuts - 10000+
The Coffee Bean - 900+
Caribou Coffee - 550+
Projected Growth Rate 25% - 30% 7% - 10%
Total Available Market Approx. $250Mn Approx. $42.6Bn
General Data
6th largest producer of coffee
4% of the world coffee production
Starbucks is the world's market
leader with 32.6% market share
Coffee Kiosk
3. Comparative Analysis
Brand Coffee Taste
Other Drinks
and Eatables
Ambience/
Atmosphere
Deserts Service
Market
Reach
Delivery of
Products
Value for Money
Overall
Satisfaction
Café Coffee Day 4 3.5 3.5 3.5 3.5 5 4 3.5 3.5
Barista Lavazza 3.5 4 4.5 4.5 4.5 2.5 4 3 4.5
Costa Coffee 3 3 2.5 3 3.5 3 4 2.5 3
Tata Starbucks 4.5 5 4 4 4 1 4 2 4
Comparative Analysis (Out of 5)
Competitive Advantage for Tata Starbucks:
Strong brand image
Largest coffee house in the world
Starbucks has joined hands with Tata Global Beverages which is a leading company in India and hence the
venture may prove successful
Specialized in making high quality coffee and other beverages
Source
5. Business Overview & Strategy
Overview:
Growing coffee house market at the rate of 25 – 30 %
Huge Opportunity - Number of coffee outlets are estimated to grow to 5000 in next 4 years
Increasing TAM/SAM (Total Available Market / Served Available Market)
Key Take Away Points:
CCD is the market leader in India due to its wide network and reasonable pricing strategy
In the Indian market, CCD will be Tata Starbucks’ major competitor
However, Tata Starbucks will also have to be careful against Costa coffee as they are adding up more
number of outlets in India
Pune will be the right choice of city as we have large chunk of young crowd here
Keep competitive prices to start with as we have more college-going crowd in Pune
Prices should be at least 30% lower than in USA
6. Conclusion
This deal might be beneficial for both the companies
India is the right market to target due to growing living standard to people
Understanding of Indian market can be brought in well for Starbucks by joining hands with Tata Global
Beverages
If Tata Starbucks can adapt the peculiarity of Indian market then coffee may soon become new drink of India
Arabica-centric taste of the coffee should prevail in the Indian market well
Entry of Tata Starbucks into Indian market has already excited a large chuck of population which is
advantageous for the brand
30th Jan, 2012 – R K Krishna kumar, Vice Chairman of TATA Global Beverages and John Culver, President Starbucks China and Asia PacificAvaniSaglaniDavda, CEO Tata Starbucks ltd.