Coffe Cafe Industry- Barista vs Cafe Coffee Day

Topics: Coffee, Espresso, Coffeehouse Pages: 17 (5433 words) Published: September 5, 2008

The objective of this project has been to understand the marketing mix of Barista and Café Coffee Day and compare the two firms in terms of their operations and other aspects. We took up organized coffee retailing as we wanted to understand what it takes to sell not only a coffee but a whole experience in a country where coffee is not as preferred & popular as tea. The firms that have ventured into coffee retailing business in the country are Café Coffee Day, Nescafe Café, Café Mocha, Georgia Coffee, Chimayo Chains owned Qwiky’s brand of coffee pubs and Barista to name a few. Out of these we chose Barista and Café Coffee Day for our study because of their popularity and wide presence in the country. BARISTA

Barista is a specialty coffee retailer offering high quality beverages and food accompaniments. They are pioneers in establishing the concept of “organized coffee retailing as an experience for the customer” at a national level in India. It is the first Indian coffee chain that has outlets outside India as well. It 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 began its operation in 1999 headed by Amit Judge’s Turner Morrison Group. In a few years since then it saw Tata’s buying a stake in it, being overtaken by NRI Businessman C Sivasankaran, Chairman of the Sterling Infotech group in the year 2004 and finally the NRI selling it to the Italian coffee chain Lavazza. Presently Barista operates in India, Sri Lanka and the UAE (catering to 28 cities in India and 2 cities in UAE) with over 160 outlets and generating an annual turnover of 160 crore. PRODUCT

What constitutes a product in an industry that deals with coffee retailing being a service industry like a restaurant? Is it just the coffee? Or is it the charming ambience, the warm yellow/cream décor, the people who frequent the place? Or is it the sumptuous new sandwiches or rolls, the desserts, the pasta, iced tea, other smoothies/drinks? “The emphasis here is on retail as a brand rather than retailers selling brands. The focus is on branding the retail business itself”.

Coffee these days no longer symbolizes just a drink that woke you up in the morning or kept you from sleep before a deadline or an examination. The basic product of a simple drink of coffee has now come to be an expected product of providing an ambience that is both representative of your lifestyle and your similarity to the rest of the coffee crazed world (that makes you a man/woman in tune with the global scenario). Barista recreates the ambience and experience of the typical Italian neighborhood espresso bars in India. The interiors are bright, trendy and comfortable. It also provides one and all this sense of security to especially international visitors with a universal drink- coffee because any customer can walk into any cafe in the world would know what to expect. It is further augmented with a locale where one could play chess, read books, listen to music, enjoy the arts, surf the Net and sip an Espresso Italiano, or Iced Cafe Mocha. This is what creates a brand and aptly differentiates Barista from all the other coffee retailers. All cafes cater coffee and the like but what you add to that product makes it unique and desirable, i.e. this is what would make a potential customer choose to come to Barista and to Café Coffee Day or Starbucks or Mocha’s.

Finally, the potential product is an amalgamation of the tangible good (the coffee along with snacks) and the intangible good (service) that it claims to provide the customer. In spite of the concept of self service unique to Barista it has opened up training institutes to train its staff and world class service. Being a growing industry coffee retailing primarily differentiates itself with its service in terms of ordering ease, delivery, and the quality of its products, it...
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