Raising Aroma in Indian Coffee Parlours*

            


Details


Case Code : CLBS038
Publication date : 2004
Subject : Business Strategy
Industry : Non-Alcoholic Beverages
Length : 03 Pages
Price : Rs. 50

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Key words:

Coffee bars, Caf Coffee Day, Qwikys, Barista, Tata Coffee, Taj Hotels, Gourmet Coffee, Distribution Network, Forward Integration, Backward Integration


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract:
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The caselet speaks about the growth of coffee bars in India. While giving examples of Caf Coffee Day and Qwikys, the caselet focuses on the rise of Barista as one of the leading coffee serving outlets in India. The caselet delves into the alliance between Barista and Tata Coffee and how it resulted in complete integration of their coffee business. The caselet also explains the marketing initiatives undertaken by Barista.

Issues:

  Rise of coffee bar trend in India.
  Impact of alliances in an industry.
  Marketing initiatives in the coffee service business.

Introduction

In the late 1990s, a silent cafe revolution was sweeping urban India. Coffee drinking was increasingly becoming a statement of the young and upwardly mobile Indians. Coffee bars, an unheard concept till a couple of years ago, had suddenly become big business and coffee bars like Barista, Cafe Coffee Day (CCD) and Qwiky's had become quite popular.


Though being a late entrant, Barista took elite India by storm. With 105 branches in 18 cities and annual sales of Rs. 650 million, Barista was clearly the leader in the coffee retailing business in 2002. Barista adopted a three-pronged approach to expand its business.

The first was to open espresso bars in various cities across the country. The second approach was to target institutional areas and the third approach was to target the home segment...

Questions for Discussion:

1. Barista adopted a three-pronged approach to expand its business. Describe briefly, this three pronged approach?

2. Barista entered into a strategic alliance with Tata Coffee. Explain how these two companies are going to benefit from this alliance?