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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"We have to be wherever our customers want us, and that is the template".

- Yogesh Samant, Chief Operating Officer, Barista.

"We see Cafe Coffee Day to be the major growth driver because it promotes coffee drinking as a lifestyle choice."

- Naresh Malhotra, Director, Cafe Coffee Day.

"Coffee with fruits, syrups, cream and ice is a rare combination, We want to give customers a choice of drinks that are not very common in India."

- Edwin Paul, Vice-President, Qwiky's.

Storm in the Coffee Cup

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. What made Barista different from others was the ambience at its outlets.

Barista recreated the ambience and experience of the typical Italian neighborhood espresso bars in India. The interiors were bright, trendy and comfortable. One could play chess, read books, listen to music, enjoy the arts, surf the Net and sip an Espresso Italiano, or Iced Cafe Mocha. CCD which was started in 1996, had opened 50 outlets in 9 cities by 2002, with an annual sales of Rs. 100 million.

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