Marketing Essays - Indian Consumers Tea 印度茶叶消费者及咖啡产业崛起 1)概要 印度消费者是一个非常有趣的实体而且如同他的国家一样成分混杂。城市消费者与印度农村和印度南部的消费者对比。在大都市的消费者不同于他的习惯模式。因此印度消费者很难理解和预测。 茶和咖啡是印度最喜欢的饮品之一,虽然茶更有优势。然而近年来,虽然茶是一种最受人喜爱的饮品,但大多数的印度家庭开始丢掉他们对茶的热爱转而去享受咖啡了。一场五硝烟咖啡革命席卷了印度城市,咖啡厅的激增为印度开辟了一个新的市场。 印度是世界上最大的茶叶出口国之一,也是全球最大的消费国之一。然而,喝咖啡已经越来越成为年轻人和印度人的一种观念。此外,咖啡厅,一个闻所未闻的概念,直到几年前突然成 为巨大的商业。咖啡慢慢地毫无质疑地替代了茶。 1) Executive Summary 概要 Indian consumers are a very interesting entity and are heterogeneous as the country itself. The urban consumer contrasts with rural and south Indian consumer with North Indian. Further still, the consumer in the metros militates with his usage and habit patterns. The Indian consumers are therefore very difficult to understand and very to predict. Tea and Coffee are one of the favorite drinks in India though tea having edge. Though teas’ being favorite brew for a majority of Indians households is now losing its share to coffee in recent years. A quiet cafe revolution is sweeping urban India with the explosion of coffee lounges which has created a whole new market for coffee in Indian market. India is one of the world's largest exporters of tea and one of its biggest consumers. However, it is coffee drinking which is increasingly becoming a statement of young and upwardly Indians. Moreover, coffee lounges, an unheard of concept until a couple of years ago, are suddenly big business. Coffee slowly but surely is substituting tea. There is been significant rise in the consumption of coffee. The specialty coffee movement has gained much of its momentum through the efforts mostly by traditional Coffee Houses and in recent chains by Barista and Café Coffee Day. In India CAFÉ COFFEE DAY and BARISTA are the most popular brands and well-known cafés. The college crowd rates them as one of the coolest hangouts. These companies sell similar product but their positioning and target audience are very different from each other. These players not only sell coffee and new blend of tea (Ice tea) but also food and other merchandise items. Despite of serving to different audience, these players compete with themselves for its own share of market. They try to differentiate themselves by the way of product or price or promotion. However, they are also facing the competition from the foreign players like Georgia, Starbucks, etc. It would be interesting to see how the companies differentiate and maintain their share in the market in future. A) Origin—起源 A traditional family owned a few acres of coffee estates, which yielded the rich coffee beans in the soil of Chikmagalur, However they soon amalgamated with Bean Coffee Trading Company Limited, now popularly known as Coffee Day. The coffee growing tradition was since 1875, but the opportunity after the deregulation of the coffee board in the early nineties. Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan. In the calendar year 2000, Coffee Day exported more than 27000 tonnes of coffee valued at US$ 60 m to these countries and, for the second time in its short career of 7 years retained the position as the largest coffee exporter of India. B) About Coffee Day—关于咖啡的日子 Coffee Day has a wide and professional network in the major coffee growing areas of the country comprising over 50 agents and 50 collecting depots. Coffee Day's two curing works at Chikmagalur and Hassan cure over 70,000 tonnes of coffee per annum, the largest in the country. Coffee Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The process is carried out under the control of experienced personnel to meet highest quality standards. The most modern technology available is used to maintain consistency and roast the coffee beans to the demanding specifications of the discerning coffee consumers. Coffee Day Comprises of the following Sub Brands : Coffee Day - Fresh & Ground Café Coffee Day Coffee Day – Vending Coffee Day – Xpress Coffee Day – Exports Coffee Day – Perfect C) Introduction—介绍 Café Coffee Day currently owns and operates 169 cafes in all major cities in India. It is a part of India's largest coffee company named Coffee Day, ISO 9002 certified company. Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Cafe Coffee Day's vending machines have a special niche in the market compared to competitors because Cafe Coffee Day machines offer filter coffee unlike the instant coffee offered by competitors' brands. Growing from a coffee exporter to a coffee parlour, café coffee day has certainly come a long way in this segment. D) Marketing Mix—销售组合 Every company goes through different phases in the business. The phase is very similar to that of the product lifecycle. In order to sustain in the market and to maintain its market share it is essential for the company to have a right marketing mix. The company has to have a mix of proper product that is relevant to the target audience, proper price, proper reach i.e. the place and relevant promotion that keeps the target audience interested in the company. I) Product—产品 Café Coffee Day’s menu ranges from hot and cold coffees to several other items. However, the core product is the coffee. The management believes that trend is changing towards coffee. So taking this opportunity, the company also sells coffee powder. Café Coffee Day also believes in selling other merchandised products. Core Product:--核心产品 Exotic international coffees e.g. Capachinos Food items e.g. Sandwich, Samosas Desserts and pastries Supportive Products: Funky Caps @ Rs 60 onwards Cool T-Shirts @ Rs 175 onwards Bags @ Rs 160 onwards Mugs @ Rs 60 onwards Coffee Filters @ Rs 95 Coffee Powders: Arabica @ Rs 43 Perfect @ Rs 35 Charge @ Rs 28 Dark Forest 200gm @ Rs 80 New Introductions: Reglon Sleeves T-Shirts @ Rs 249 Marquis pens @ Rs 315 Onwards. Shoulder Bags @ Rs 209 Coffee Mints @ Rs 40 II) Price—价格 Café Coffee Day has positioned as “Value for Money”. The major target customers are the youngsters. Pricing is a very sensitive issue for the Indian consumers. Café Coffee Day believes in mass marketing. The average spent by the customer is 100-125. Their coffee starts from as long as 15 Rs. However there are some outlets where the students are given special discounts. CCD even set up their outlets in the college campus. For e.g. Café Coffee Day has opened an outlet at the NMIMS campus where they are providing additional 10% discount to the students. CCD is looking for expansion to more interior places. Here prices become more complex as the consumer are very conservative in spending. A cup of coffee at Rs. 35 is accepted in metro cities but not in small towns. The decor, ambience and the experience will play a major role in pulling the crowds in small cities. The price of the product has to be kept uniform in order to maintain the uniformity in all the outlets. CCD target audience is youngsters. Majority of them are dependent on their family for their expense. This is one of the most important reasons for low pricing compared to other cafes. They believe it in making their product at an affordable price. Pricing is one of the important weapons for them to fight against their competitor. III) Place—地区 Café Coffee Day outlets are spread across India. However, there are more number of outlets in the metros and towns. For e.g. In Mumbai CCD have 37 outlets. In the past 12 months, Café Coffee Day has also been on an aggressive drive to expand the number of cafés in the smaller towns across the country based on research and invitations received from these places to open more such cafes there. The company expects to cross the figure of 200 cafés in 60 cities by December 2004. There will be an increased focus in cities having populations from as low as Five Lakh upwards. However, the focus has not been on just opening more cafés wherever there has been an opportunity. Café Coffee Day is already the largest and most wide spread retail chain of cafes in India with a current count of 169 cafés in 43 cites. CCD plans to reach cities like Kolhapur and Nagpur in the west, Hubli, Belguam and Vizag in the South, Allahabad, Varanasi, Ambala and Patiala, in the North, Jodhpur and Mount Abu in Rajasthan and Bhubuneshwar, Ranchi, Cuttack, Darjeeling, Guwahati and Jamshedupr in the East.#p#分页标题#e# IV) Promotion—推广 In order to stay with the competition and to keep the audience interested, they undertake lot of promotion activities. CCD jointly organizes large number of promotions with the other companies serving the similar target audience. These cafes have emerged as a new media vehicle for reaching the right type of the customer. CCD gets in physical touch with audiences, target loyalty club members, or advertises in their newsletters. CCD has also undertaken a promo jointly with TVS scooty. The promo was done at all the outlets across 43 cities. In this promo a package of 2 ices blended cold coffee and 1 choc fantasy for just selling for Rs 82. Customer Loyalty Programme-客户忠诚度计划 Coffee shops have a high loyalty factor i.e. 60-70% of customers come in at least once a week. The Cafe Citizens Programmed launched along with Net Carrots Loyalty Services would reward regular customers of Cafe Coffee Day. Any customer who bills a minimum of Rs 100 on a single bill is automatically eligible for membership to the Cafe Citizens Programmed. The programmed entitles members to a 10 percent discount on all food and beverage bills for a year from the month of membership. Members will also receive surprise gifts from India times Shopping when they reach a total billing amount of Rs 2,000, Rs 5,000, and Rs 10,000. Members can track their total bills spend at any Cafe Coffee Day outlet across the country. The programme was very successful and they attracted 1,35,000 citizens. Movie launches Apart form product launches, the company also does a number of tie-ups with the movie industry in the same manner. For instance, there was Damdaar coffee that was sold during the launch of the movie DUM. There was also the Damdaar contest wherein the prizes were movie tickets, posters, CDs, and cassettes. In addition, the winners get a chance to meet and have a coffee with the stars of the movie. I) SWOT Analysis—脆弱危机分析 Strength: Large Number of outlet. In house sourcing of coffee beans. Tie Ups with good companies. Weakness: Limited Target Audience. Follow the competitor strategy. Quality of food- Stale breads. Loud and Hard Music. Improper sitting arrangement. Opportunity: Large Untapped Market Tie-ups with other companies for promotion. Threat: Entry of Foreign players like Georgia, Starbucks etc. Large unorganized market. Introduction “Barista” (which means “bartender’’ in English) is an Italian coffee chain shop. Barista traces its roots back to the old coffee houses in Italy- the hotbeds of poetry, love, music, writing, revolution, and of course, fine coffee. Barista Coffee was established with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in this particular segment. More significantly, they have been quick to spot a latent need waiting to be tapped: Coffee lovers seek a complete experience. One that combines intelligent positioning with the right product mix and carefully designed cafes. In other words, they seek an "Experiential lifestyle brand". As one might imagine, tapping into this need requires a company that can not only deliver great coffee and espresso bars, but one with the ability to scale up operations quickly. At Barista, they have gone to great lengths to establish this. Barista started its operations with its first outlet at New Delhi in Feb 2000. The Company was promoted by Amit Judge’s Turner Morrison Group BARISTA Coffee Company Ltd - in which Tata Coffee Ltd holds 34.3 per cent stake Ventured into India. Barista Coffee Company Limited has been recently listed among the top 100 brands in India by Super Brands India; the Indian Division of the globally renowned Super brands ltd. Barista was selected out of 711 leading Indian brands across 98 categories. Barista has its operations spread over 153 outlets across India. At present, Barista had, he said, over 120 espresso bars and corners in the four metros and 14 cities of India, with 35 being added over the last 12 months, out of which 10 had been relocated. B) Barista –Marketing Mix—咖啡师—营销组合 Barista continued to maintain its focus on quality by sourcing only Arabica beans and using the best international espresso machines, supplied by the Italy-based LaCimbali. Barista was, working towards becoming the number one in terms of parameters likes brand-imagery, brand-dominance, customer-loyalty and turnover. The strategy for fulfilling its mission over the next decade would be by leveraging its strong position in the Indian market to grow further in an Asian context. I) Product Barista cafes also have a good number of product mixes. The menu ranges from variety of coffees and pastries. Barista also sells other items like mugs, Coffee beans, T-Shirts, Coffee Kettles. Core Product: Coffees Cakes and Pastries Coffee Beans Supporting Products: Coffee Mugs in Orange and Blue which cost Rs 55 and Rs 99 T-Shirts which cost Rs 150 Coffee and Coffee beans are also considered as the core product for Barista. The company has also tested marketed coffee beans through its outlets in Mumbai and Delhi. Barista claims that they sell a best coffee bean. Barista has started with a new concept by the name Barista Merchandise. Barista Merchandise is available at selected Barista espresso bars in Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore. The Barista merchandise are the different types of beans that customer can take home and have the coffee of his own taste. Some of the Barista Merchandise includes The French Press Barista House Blend Barista is also diversifying its hot beverages menu and introducing several specialty teas. The reasoning undoubtedly is based on the fact that apart from South India, all other parts of the country are mainly tea-consuming areas, and this step is expected to help the company expand its client base in the smaller towns of these regions. II) Price Barista holds the perception of being an expensive cafe. However, Barista was the first organization to start the concept of the organized cafes in India. Initially Barista started with Skimmed pricing policy. Barista segmented the market according to the income and age. Due to the entrance of new players, Barista was finding difficult to maintain the market share. First and foremost, Barista re-defined the target market customer. They even planned to change their tagline. "Where the world meets” And so when company looked at this positioning and they looked at the pricing - the strategy being that if we lower the pricing. Apart from this, Barista has also introduced new low-priced beverages. The officials say these price cuts have resulted in 15-per cent walk-ins at Barista's outlets during the last few months. Barista decided to alter their strategy in order to retain their market. After studying the market, Barista found that competitors were fighting against them against the pricing. They decided to reduce their pricing. It was not done from a perspective of acquisition. With reduction in the prices, there had been a 47 per cent increase in footfalls over the subsequent three months. December 2003 had, seen Barista experiencing a 21 per cent per-store increase in footfalls over the previous December, with the number of footfalls for the year totalling 14 million. III) Place Barista started its first outlet at Bangalore and from there it has started spreading its wings especially after price reduction. Now they are even planning to focus on raising the bar of coffee experience. Barista already has presence in all the metros and has a presence in all the highly populated regions like Mumbai, Delhi, Bangalore and many more places. Get help with your essay from our expert essay writers... IV) Promotion Barista did not initially believed in any kind of promotion but in order to keep their customers interested they started building the brand by communication both within the store as well as outside the store through mass media. It under takes various promotion activities during the festival or during occasions like Valentines Day. Barista has done advertising in almost all national newspapers. Barista has launched summer campaign through summer chillers, and was advertised through different channels. Sony:索尼公司 Barista Coffee has tied up with Sony Music. Under this association, Sony Music would endorse CDs and music cassettes of their recent acts, which will be used as the lucky draw prizes for the participants. Consumers buying food, beverage and merchandise for Rs 110/-and above during specified hours of the performance, will be entitled to participate in the lucky draw. D) International Presence—国际知名度 The company operates over 130 coffee joints including four in Dubai and Colombo. Barista had chalked out aggressive strategies for expansions into Europe and West Asia. Barista has already started its operation in both Sri Lanka and Dubai and doing very well. They are talking terms with a few potential partners in Kuwait. Barista owns and manages all its outlets in India but operates through franchisees in other countries.#p#分页标题#e# Product: During the time of discussion I found two types of customers, one who visits regularly and other who visits rarely. The customers who come rarely are not actually the coffee lovers. They just come there to do some time pass. They have no complains about the product. But the customers who are coffee lovers are not satisfied by the product they serve. There are some customers who actually complain about the quality of the product. Coffees are not really that good. The bread is dry; the amount of filling has reduced in quantity etc. Their desserts fortunately have not suffered and are still pretty good. Customers not only come there to have a coffee or have a sandwich. They actually come there to have an experience. They find prestigious when they visit to the Barista. As major target audience are youths, young managers and middle level management people who come to discuss their business. The young students visit there as they feel the sense of maturity. The people who are status oriented would prefer visiting Barista rather than CCD. Their targets are youth, young executives and nucleus families. Barista also claims that intelligent people come here “Someone who is intelligent and appreciates the good things in life.” claim by Barista. There are many customers who come there, as they perceive themselves as intelligent people. For business people toting Laptops they can hook up to the net free of cost or catch up on the news business magazines and newspapers are available at every outlet. They also come to Barista, as it’s a good relaxing place where they can discuss about their clients. There are people who also come alone. They find Barista is the place where they can just have a coffee and think deep, as there is no one to disturb them. G)SWOT Analysis—SWOT分析 Strength: Claim to sell the best coffee Large Number of outlet In house sourcing of coffee beans Espresso-Highest selling coffee Weakness: Expensive coffee Self service for the customers Quality of food- Stale breads Opportunity: Large Untapped Market Tie-ups with other companies for promotion Threat: Entry of Foreign players like Georgia, Starbucks etc Large unorganized market. |