Mumbai: Undeterred by the entry of iconic US-based coffee chain Starbucks at competitive prices, entrenched players such as Cafe Coffee Day (CCD), Barista and Costa Coffee are unlikely to go in for price war, and plan to continue with differentiated pricing strategy.
"Our pricing is not determined by competition but by customers. We have no intention of changing that on the basis of somebody else's pricing," said CCD Marketing President Ramakrishnan K.
CCD, which runs 1,350 stores, said it will continue to follow a different pricing strategy which includes the rental.
"It is different for different outlets. Our pricing depends on consumer potential and what are the input costs that go into running that store, including rentals. We would have different pricing across different retail points," Mr Ramakrishnan said.
Meanwhile, Starbucks, which debuted here over the weekend, said it will follow low pricing strategy across all its forthcoming outlets, including the next one at the premium Taj Hotel.
Starbucks, with Tatas as partner, has opted for competitive pricing that is nearly half the coffee chain's charges elsewhere in the world -- with a cup of coffee costing about Rs. 80 for a small offering and Rs.165 for a large one.
Asked if the company will have same prices at its all stores, including the one to be launched at the Taj this week, Starbucks Coffee Company Chairman, President and Chief Executive Howard Schultz replied in the affirmative.
"The pricing will be same across all outlets despite Starbucks having the reputation of being a high-end premium brand. We try to have value proposition of all kinds equal to society, especially, when we open in mid-market," Schultz told PTI after the launch of flagship store here on Friday.
A hot coffee at Starbucks will range from Rs. 80 to Rs. 165, while a cold coffee will cost anywhere between Rs. 120 and Rs. 200. The CCD sells hot coffee at about Rs. 80 and cold coffee at about Rs. 150....
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