...Business Research for entry of Global Specialty Coffee Chains in Indian Market Submitted to Dr. Arun Abraham Elias BRM RESEARCH PROPOSAL by Abhishek Rehan PGP16/301 Email id: abhishekr16@iimk.ac.in 2/28/2013 CONTENTS ABSTRACT……………………………………………………………………………………….3 INTRODUCTION………………………………………………………………………………...4 PROBLEM STRUCTURING…………………………………………………………………….5 STAKEHOLDER MAP…………………………………………………………………………..7 LITERATURE REVIEW…………………………………………………………………………8 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS………………………………...10 PROPOSED METHODOLOGY AND METHODS…………………………….………………11 SIGNIFICANCE OF STUDY…………………………………………………….……………..12 LIMITATIONS OF STUDY…………………………………………………………………….13 REFERENCE…………………………………………………………………………………….14 2 ABSTRACT India has witnessed a rapid social and cultural transformation in the past decade, mostly due to substantial western influence in every sphere of life. Coffee not only evolved from a mere commodity to a competing brand across companies, but there also has been a significant shift in its consumption pattern. Consumption of coffee at a coffee chain has grown at a rapid pace and has almost outgrown the consumption in our living rooms. Global giants like Barista and Costa Coffee have opened up retail outlets in India, though the café market is mostly dominated by Café Coffee Day in India. Through this research, I would try to evaluate the industry attractiveness of a new global coffee chain trying to enter Indian market and set up outlets here. In order...
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...Brewing in Asia” N’kengie Best Dr. Karen Mountain Consumer Behavior-MKT 510 October 16th, 2011 1. Determine and discuss the barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. China is well known for its love of tea, therefore, it is amazing how excited Starbucks is about entering the Chinese market. One executive of Starbucks stated “China is clearly a tea-drinking society-unlike Japan, which we think of as a tea-drinking society but they also drink a lot of coffee. In China, that really isn’t true (Hawkins,Del I & Mothersbaugh,David L, 2010).” There is reason for the excitement about adding Starbucks to the Chinese market. China is known for its consumer market with a population of approximately 1.3 billion, rising incomes, and increase in the outlook of global attitudes; many companies are looking to tap into the China gold mine. However, in actuality China’s coffee market is still far behind other countries in regards to coffee consumption. There was a 90 percent growth in coffee sales in China in recent years; however, the per capita consumption is still less than one kilogram per person. In the United States the per capita consumption rate of coffee is four kilograms. Tea is clearly still the number one beverage in China (Hawkins,Del I & Mothersbaugh,David L, 2010). Tea is part of China’s national heritage and is strongly rooted in their culture. It is very hard to change...
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...capitalize their brand of coffee on China, which is rich in history of being tea drinking country. China has a massive consumer market with a population of around 1.3 billion (Hawkins, 2010). The culture of the Chinese has a strong tradition of consuming tea, as it is still the number one beverage in China which the Chinese have enjoyed tea for millennia (Hawkins, 2010). The first topic that will be discussed is to determine and discuss barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. Recommendations will also be made to help Starbucks successfully encourage greater coffee consumption. Next an advertising campaign will be constructed that would not only encourage greater coffee consumption in general, but also increase the demand for Starbucks; while identifying key themes, i.e. copy, points, and visuals. I will then develop a marketing strategy for taking Starbucks into smaller Chinese cities and communities; while outlining the barriers and determining if they have a chance to be successful. Lastly, a demographic will be outlined with the cultural and media factors that make India more attractive for Starbucks than it was 10 years ago. Determine and discuss the barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. Though China represents great opportunities because of its big population and impending growth, coffee is never of Chinese traditions...
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...PROJECT AN ANALYSIS OF THE COFFEE MARKET ASHWIN MURALI (I001) | ANIRUDHHA BHATOTIA (I006) | APALA RATH (I063) CONTENTS Sr. No. Topic Page No. 1. Research Question 2 2. Introduction 2 3. Industry characteristics in India 3 4. The economics of the coffee market 4 5. Findings 6 6. Conclusion 7 7. Suggestions 7 8. References 8 1 Research Question How does weather drive microeconomic forces to affect the prices of coffee? Introduction Coffee is a brewed drink prepared from roasted coffee beans, which are the seeds of "berries" from the Coffea plant. Coffee is a popular beverage and an important commodity. Tens of millions of small producers in developing countries make their living growing coffee. Over 2.25 billion cups of coffee are consumed in the world every day. Over 90% of coffee production takes place in developing countries, while consumption happens mainly in the industrialized economies. Coffee has its origins in the Horn of Africa, in the Ethiopian province of Kaffa, where in all probability the first coffee tree appeared. It’s been attested that coffee beans used to be chewed by African slaves brought to Arab countries and coffee has been cultivated in Yemen since the 15th century. Coffee was brought to Europe by Venetian traders in 1615, when hot chocolate and tea had already become fashionable. Europeans then started to cultivate coffee in their freshly acquired colonies...
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...1 (a)Introduction to CCD Cafe Coffee Day is a part of India's largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company Ltd (ABCTCL) and is India's favourite coffee shop, for the young and the young at heart. It is also the largest producer of Arabica beans in Asia exporting to various countries including USA, Europe and Japan. Started as a retail restaurant arm of ABCTC in 1996, the first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka, it has today rapidly expanded across various cities in India with more than 1000 cafés open across the nation and is the largest organized retail cafe chain in the country. Cafe Coffee Day has recently expanded outside India with its outlets in Karachi, Vienna, Dubai and Prague. It also has laurels in its kitty like: "The Most Popular Hangout Joint Amongst Youth" at the 3rd Global Youth Marketing Forum in 2011 and "India's Most Popular Coffee Joint" The Indian Hospitality Excellence Awards also named it in 2011. Today Cafe Coffee Day is at the forefront of the coffee revolution. CHALLENGES: The coffee culture is changing today. To be able to identify benefits with the culture we need to know what the culture looks like today. Since it is a relatively new topic there has not been done a lot of research and we hope to gain more knowledge through empirical studies. Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). ...
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...Coffee 2013: Ready for Take‐Off Overview of Coffee Trends in New Consumer Markets March 5, 2013 | Strictly private and confidential Agenda Sections I II III IV Introduction Strategic Considerations in Global Coffee Demand Regional and Country-Level Snapshots Key Points to Consider 3 7 13 22 2 4 1 Ross Colbert, Global Strategist Beverages Mr. Colbert joined Rabobank in January 2011 and is responsible for developing FAR’s research portfolio and Rabobank’s global view toward the beverage sector. Rabobank’s FAR team provides information and analysis covering all of the major sectors throughout the food chain. The seven-member FAR Beverage team is part of Rabobank’s global FAR group, which is comprised of Rabobank s approximately 70 analysts around the world. Colbert joined Rabobank following an extensive career in the beverage industry. Most recently he was Managing Director of M&A Americas for Zenith International, which is one of the world’s leading consulting, market intelligence and financial advisory firms focused on the global food and beverage industry. Prior to that, he was Managing Director and Chief Operating Officer for eight years at Beverage Marketing Corporation, which provides market intelligence and financial advisory services to the global beverage industry. Over his career he has served as an advisor to Pepsico, Coca-Cola Enterprises, Heineken, Nestle Waters, Snapple Beverages, and Seagram's as well as many independent, private beverage companies...
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...STARBUCKS IS COMING TO INDIA INTRODUCTION As we all may know, behind any successful achievement, there is a long story of withstanding hardship and endeavouring persistently behind any success. The Starbucks’ case of successfully bringing the brand into the Indian market is one example. This paper is to study the (3) reasons why Starbucks International decided to expand its market scale internationally and to figure out the initial criteria required for Indian Market. This is also to analyse appropriate circumstances at that time for Starbucks to be able to earn its foothold there provides us with valuable business guidance. Besides, this study by pointing out key factors which lead to Starbucks’ success in launching its brand in India demonstrates how Starbucks applied sustained competitive advantage and dealt with obstacles during the launching period, which created significant courage for Starbucks International to move next steps to fulfil its ambition for international expansion. COMPANY’S OVERVIEW Founded in 1971 in Seattle, Starbucks was started as a store to roast and sell coffee bean by three partners. Its name and logo were named after the famous novel Moby Dick. In 1987, Howard Schultz who is currently the company’s CEO acquired Starbucks and single-handedly converted it into a national, publicly owned company. Having more than 11,000 stores in 36 countries worldwide and over 10,000 employees in 2006 (Case Study), the company grew to about 17,000 stores (starbucks...
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...Starbucks Going to India Prepared by: Group A Contents Module 2: ANALYZING INTERNATIONAL COMPETITORS 6 Module 3: ASSESSING THE ECONOMIC-GEOGRAPHIC ENVIRONMENT 7 Module 4: ASSESSING THE SOCIAL-CULTURAL ENVIRONMENT 10 Module 5: ASSESSING THE POLITICAL LEGAL ENVIRONMENT 13 Module 6: SELECTING A GLOBAL COMPANY STRUCTURE 15 Module 7: FINANCING SOURCES FOR GLOBAL BUSINESS OPERATIONS 16 Module 8: CREATING A GLOBAL MIS (MANAGEMENT INFORMATION SYSTEMS) 18 Module 9- IDENTIFYING HUMAN RESOURCES FOR GLOBAL BUSINESS ACTIVITIES 19 Module 10 – MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS 21 Module 11 - PRODUCT AND TARGET MARKET PLANNING 22 Module 12: DESIGNING A GLOBAL DISTRIBUTION STRATEGY 24 MODULE 13: PLANNING A GLOBAL PROMOTION STRATEGY 25 MODULE 14—SELECTING AN INTERNATIONAL PRICING STRATEGY 27 MODULE 15— DETERMINING ORGANIZATIONAL FINANCIAL RESULTOVERVIEW 28 References: 31 Module 1: IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES Global Business Opportunities We are the Starbucks Corporation; we purchase and roast whole bean coffees. Majority of our stores are in the United States, but we also have international stores. Starbucks Corporation has successfully been in business since 1971. India has the youngest population in the world and will stay young. Starbucks Co. has found the opportunity to expand internationally to India and believes that it can be a huge success. Potential Markets Starbucks would like to first start its operation in urbanized areas of India. We believe...
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...CAFÉ COFFEE DAY—EXPANDING HORIZONS: ABSTRACT: * In June 2010, Cafe Coffee Day, the largest organized retail cafe chain in India, was conferred with the title of the Most Admired F&B Retailer of the Year. In July 2010, CCD had a national network of over 950 outlets functioning in every nook and corner of the country. * The cafe chain continued its leadership as an iconic retail brands whose dynamism and popularity won it respect and admiration from both consumers and rivals. After phenomenal success in India and revolutionizing specialty coffee culture, CCD undertook international expansion plans and tried to popularize its specialty coffee worldwide. * With an ambition to rank among the top three cafe chains in the world by 2018, the company nourished plans to establish new cafes across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia. At the same time CCD was also eyeing for foreign acquisitions. * In mid-2010, it acquired a Czech Republic based cafe chain Cafe Emporio as part of its broad acquisition plans. Initially providing a brief analysis of the Indian coffee industry, the case attempts at initiating a debate that whether Cafe Coffee Day should continue to expand its operations globally or not. * Whether the strategies it followed in India could be successful in international markets or it might have to face stiff competition from global coffee chains remain to be seen. Finally, whether it could cope up with the challenges that...
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...different parts of the world. Coffee drinkers are loyal to the brand and trust new products that are presented to the market. Although Starbucks has loyal followers who continually buy a specific blend, either whole bean or ground, there are a number of consumers from different cultures who prefer the convince of tea and instant coffee as a part of their morning routine or as a general habit. In 2008, coffee consumption in North America was respectively 10.7kg while Asia consumed 6.2kg respectively (www.earthtrends.wri.org). North American culture is often derived from an on the go mentality and that philoisy is applied the way people drink coffee. Coffee, a universal demand, is marketed to the businessperson running late for a meeting, or the on the go mom picking up her kids from soccer practice, to friends getting together after work. With this on the go mentality, consumers don’t have the time or want to take the time to brew coffee at home or stop by a coffee shop, stand in line, and wait for their coffee to be made. Tea and instant coffee offers the consumer their daily caffeine fix in a relatively short amount of time. Asian consumers are much more concerned about the health and philosophical benefits that tea offers as apposed to coffee. Tea has been apart of the Asian culture for centuries and is a big part of its heritage. Tea is also indigenous to China, although 30 other countries also grow tea. The most recognized are India, Japan, Taiwan, East Africa, Russia...
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...Starbucks Entry Mode in India Executive Summary: The following report consists of the entry mode chosen by STARBUCKS to enter the Indian Market of Coffee House. This Report will give you a better understanding about an organization’s require to expand globally. Globalisation plays a very important role for any organization. It helps the company to expand over different areas and connect with different people. The report depicts about the entry mode chosen by STARBUCKS to invade the Indian market. It also briefs about the competitive Environment faced by STARBUCKS to gain the desired market share. It also consists of the Political, Economical, Social and Technological Analysis faced by STARBUCKS and the Corporate Strategy used to survive among the rivalry. This report clearly discusses the Strength, Weakness, Opportunities and Threats faced by STARBUCKS in the Indian Economy and how they have been successful to overcome them. Followed by the conclusion part which states how successful was the chosen entry mode and growth of STARBUCKS in its new market. Vanessasong.(2012).Retrieved from http://blogs.ubc.ca/vanessasong/2012/11/15/doesnt-matter-what-starbucks-sells-india-loves-it/ Table of Contents: Assignment Cover Sheet…………………………………………….………………………………………………………………………………1 Assignment 1 – Research Report…………………………………………….………..………………………………………….…………...2 Project Starbucks India...…………………………………………………………………………………………………………………………….3 Executive Summary……………………………………………………………………………………………………………………………………...
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...Starbucks has gone abroad in order to become a global market yet it must first reform the home market strategy, overcome the barriers in overseas market, and take into account the newer generation of consumers. In contrast, Coca-Cola and Pepsi needed to have done its homework prior to entering the market, since both are guilty of not thoroughly researching the Indian market before expanding their operations into India. To nurture the human spirit and to inspire through a cup of coffee with respect and dignity by Starbucks employees is the well-known Starbucks experience. Today Starbucks through its different flavors of coffee and mixtures of pastries, fresh foods, teas, and ice cold products has become known as one of “the fastest growing brands” to which many consumers can connect. In about 25 years, Starbucks has grown from a small coffee shop in Seattle to over 16,000 stores open in over 50 countries. In 1982, Howard Shultz joined the small Starbucks coffee shop, and in 1987 he bought the growing chain form his bosses. During that year Shultz transformed the coffee shops into a third place between home and work in which people could gather in order to relax and socialize. Within the next years, Starbucks spread out across the United States and in 1996 it opened its first...
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...satiate customers thirst for high quality coffee with the touch of friendliness in its environment. Starbucks mission statement “To inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” also shows its commitment towards total customer experience rather than only a material taste of the coffee (Starbucks 2013). Throughout this whole report I tried to find out influence of consumers behavior over the activities of Starbucks. As the normal process of expansion Starbucks has expanded towards the South Asian region. On the basis of this initiative I assumed Starbucks would go further and invest in Bangladesh. And tried to analyze consumers’ behavior of Bangladesh and show its macro and micro factors’ influences over Starbucks present marketing practices. Starbucks SWOT analysis “SWOT analysis pursues and integrated approach that includes key variables from company and environment. The objective is the confrontation of the company’s internal strengths and its weaknesses, as well as, company-external business opportunities and threats in order to generate possible strategic options.” (Bohm, 2009, p.1) The SWOT analysis of Starbucks can be illustrated in the following ways: [pic] Strengths: 1. Starbucks has always boasted of its high quality coffee beans. Though there are some controversies over its coffee sourcing, Starbucks has a good bunch of loyal...
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...CAFÉ COFFEE DAY (CCD) IN KUNNAMANGALAM, CALICUT Akshay Jadhao, Indian Institute of Management, Kozhikode Note: This is “Just a Project Proposal and Methodology document” (NOT a research paper). Actual research is being conducted at Indian Institute of Management (IIM), Kozhikode by the author on this project and original research paper will be available soon. The sole purpose of this document is to help students and researchers who are interested in marketing research, especially in Indian coffee market. 1 PROJECT PROPOSAL RESEARCH QUESTION: To check the feasibility of opening a Café Coffee Day (CCD) in Kunnamangalam, Calicut, Kerala (India) INTRODUCTION As per the research done by KPMG (KPMG Report on Consumer Market, 2005) on the consumer markets in India, greatest potential for growth opportunity in the organized retail sector is in the food and beverage sector. It’s projected that food and beverage retailing will grow at 9.2 percent over the next five years against a total GDP growth rate of around 7 percent. An important factor to be considered is the changing pattern of spending by the Indian consumer. There is growth in the disposable incomes and as a result the markets are changing fast and are leading to more urbanization kind of lifestyles. India as a market is more relevant because of the demographic advantage it has over other economies. As a result here young working populations drive personal consumption. The rise in coffee drinking...
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...|[pic] | | | |Amity GlObal BUsiness SCHOOL, hYDERABAD | |[pic] | |Service Marketing Project Report On Café Coffee Day | | | | | |Submitted by :- Nandita Sadani | |Enrollment No. :- A30601909048 | PREFACE Marketing strategies are methods followed by most successful and well known companies to improve their scope in any market. It is a means by which we determine whether one company is better than the other or...
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