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Barista coffee company Ltd.

Presented by- Devesh,


Arunjay,
Ratnesh

Introduction
This case is based on emerging coffee
industry and how Barista established
itself as a brand in India. This case deal
with Baristas distribution strategies,
product and pricing strategies. This
case also show the increasing
competition in coffee industries and
Baristas dilemma abut franchises.
Means case deal with Baristas external
and internal profile.

Facts
Barista coffee retail chain was started in
February 2000 with an initial capital of Rs.20
crore.
It was promoted by Java company coffee Ltd.
Which belongs to turner Morrison group.
In 2001 Tata coffee acquired 34.3% equity
share in barista.
In 2004 Tatas sold its stake in Barista to
Sterling group.

Now barista had came under the full


ownership of the Sterling group.
Sterling group was a south Indian based
diversified business conglomerate, promoted
by C. Sivasankaran.
In India two type of coffee lovers one were
southern part of India who preferred to have
a cup of coffee early in the morning, and
second were the intellectual who shared
strong bond with coffee.

India contributed 3% of worlds coffee


production.
The consumption had grown from 68,000
tonne in 2002 to over 80,000 tonnes in 2005.
The annual average coffee consumption in
India as low at 10 cups per person.
Indian spent 53% of total expenditure on
food, beverages and tobacco.
The upwardly mobile Indian families spent
63% of their income on food out of which 6%
eating out.

Coffee Day one of the largest exporter


of coffee with total sales of over 300
crore in 2005.
Barista had 45% of its consumers come
for coffee.
Barista offered more than 21 verities of
coffee.

Competitors

Caf Coffee Day


Qwikys
Starbuck
Other MNCs like Coca Cola India, HLL

Product
Barista provide large number of verity
product with quality.

Price
Location based price

Place
In 2005 Barista opened 130 outlets in
different cities.
Barista tied up with ICICI, ABN Amro,
PVR, EXL for opening coffee corner.
They more focused for outlets in South
India rather than North India.

Promotion
Barista promote their product by Word
of Mouth.
CRM
SRM

Process
They redefine service delivery process.
Coffee was served by Baristas who
were expert in the art of making coffee.

Positioning & Targeting


Barista positioned itself as a fine caf.
It projected itself as an experiential
coffee.
Barista targeted professional, Families,
Working couples.

HRM
For motivating to employees Barista
offered ESOP, Employee of month.
They feels employees are the first
customers.

International Market
Barista want to increase market
globally.
Barista open its outlets in Sri Lanka and
UAE.

Thank you