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Market Entry Strategies Case Study

Case Title:

Costa Coffee in India

Publication Year : 2006

Authors: Shalini, Sumit Kumar Chaudhuri

Industry: Coffee


Case Code: MES0039

Teaching Note: Not Available

Structured Assignment: Not Available


In September 2005, British coffee retail chain Costa Coffee, as part of its international expansion, launched its outlet in New Delhi, India. Costa became the first international coffee chain to start operations in India. Costa Coffee also plans to enter the wholesale coffee business in India and aims to open 300 outlets, through its franchises by 2007. The changing lifestyle patterns of the Indian middle class families and an increase in their disposable income has also attracted other foreign players such as Barnie, Starbucks and Gloria Jean. Costa Coffee is also expected to face stiff competition from domestic players including Cafe Coffee Day and Barista, who are embarking on a rapid expansion plan across the country.

Pedagogical Objectives:

  • To understand the competitive landscape in which coffee retail chains in India operate
  • To discuss the rationale behind Costa Coffee’s entry into India and the strategies adopted by it to strengthen its presence in the Indian coffee chain market.

Keywords : Costa Coffee; Starbucks; Market entry strategy; Competitive strategy; Market Entry Strategies Case Study; Coffee retail chains; Cafe coffee day; Barista; Gloria Jean; Asia; Barnie; Call centres in India; Coffee consumption in India; Whitbread plc; Nestle; Tata Coffee

Contents : 
Pre-requisites for Partnership with Costa
India’s Coffee Production, Consumption and Exports
The Jaipuria Group
Coffee Market in Ireland
Facts and Figures about Costa Coffee

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