Coffee Parlours in India-Hotting Up

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Case Details:

Case Code : MKTG050
Case Length : 20 Pages
Period : 1990-2002
Pub Date : 2003
Teaching Note :Not Available
Organization : Barista, Cafe Coffee Day, Qwiky's
Industry : Food and Beverage
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Storm in the Coffee Cup Contd...

CCD also provided a relaxing ambience with eye-catching crockery and bright décor. The paintings on the wall were made by young artists, with the objective of promoting young talent.

CCD outlets also promoted their paraphernalia such as caps, T-shirts, and coffee mugs. With 21 outlets in 5 cities and an annual sales of Rs. 43 million in the year 2002, Qwiky's was also a strong contender in the growing coffee business.

It positioned itself as a place to hang out and spend time leisurely. One could order an Espresso, Cappuccino, Lattes, Mochas, Panini et al. One could even chose between frothy or intense, icy or piping hot, and aromatic and exotic coffee.

It also had books and magazines outlets and a casual wear under the Qwiky's brand. Though CCD was the first to enter the coffee retailing business in India, it failed to leverage on the first mover advantage. By 2002, Barista which entered the market in 2000, and Qwiky's which entered in 1999, had 105 and 21 branches respectively.

CCD had only 50 branches. According to company sources, the reason for its slow growth was the time taken to complete the back-end operations of its retail outlets.

Analysts felt that Barista and Qwiky's also experienced similar problems but they grew faster than CCD because they realized that running cafe is a hospitality business and one needs to create the right ambiance and experience and back it up with strong logistics.

In 2002, competition in the coffee retailing business was beginning to heat up with all the three players looking for opportunities for growth...

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