TATA Starbucks Kiosks
Download as PPTX, PDF0 likes668 views
This document analyzes Tata Starbucks' plans to open kiosks in India, specifically in Pune. It discusses Starbucks' main competitors in the Indian kiosk market like Coffee Day Express and Nescafe. It then provides a comparative analysis of Tata Starbucks, Coffee Day Express, and Nescafe in terms of years of inception, headquarters, number of kiosks, market share, quality, expansion plans, target markets, positioning, and prices. The document also analyzes the macro-level concerns of opening more kiosks in Pune like high prices and storage costs. It evaluates the feasibility of opening kiosks in different locations in Pune based on costs and projected growth. The conclusion
TATA Starbucks Kiosks
- 1. STABUCKS KIOSKS IN INDIA Submitted by: SHWETA RANA DIVISION C Roll No. 54 Dated: 25 July, 2013
- 2. GENERIC VIEW 1. India is the 5th largest exporter of coffee in the world 2. The main competitors of TATA Starbucks in the kiosk market are Coffee Day Express and Nescafe 3. Globally, the main competitors are Mc Café’ , Café Nero Group and small privately owned café bars 4. 68% of coffee kiosks in India are located in malls, corporates and college campus 2.
- 3. COMPARATIVE ANALYSIS TATA STARBUCKS COFFEE DAY XPRESS NESCAFE Year of Inception 2012 2010 2010 Headquarters - Mumbai Mumbai No. of kiosks - 354 500 Market Share - 60% 20% Quality (as rated by consumers) High Average Average No. of new kiosks planned in next 1 year 30 150 - 3
- 4. COMPARATIVE ANALYSIS Contd.. TATA STARBUCKS COFFEE DAY XPRESS NESCAFE Segmentation Customized coffee takers Aromatic Coffee takers Preferably Dark Coffee Target Market High disposable income group College students and middle class families Low and middle class families Positioning Sophisticated areas and near big branded shops Markets, colleges, corporates, railways, airports, etc. Railways, colleges, bus-stands, etc. Differential Advantage Customized coffee Low prices and brand name Low prices Price per cup (150 gm.) Rs. 325 Rs. 180 Rs. 120 4
- 5. Macro level concerns of setting up more kiosks in Pune: 1. The prices of Starbucks products are high for the students 2. The weather conditions in Pune require high-cost storage facilities to prevent destruction of coffee products Micro level concerns: 1. Working class and students will flock in the evening and sales in the morning hours might be less FEASIBILITY: There are 3 positioning places (market, campus and highway) as shown below MARKET CAMPUS AREA BOMBAY-PUNE ROAD Rent of 120 sq. ft. land per year 98,000 36,000 24,000 Cost of machinery 50,000 50,000 50,000 Storage Costs 40,000 50,000 70,000 Transportation Costs 50,000 65,000 95,000 Cost of labour 94,000 50,000 30,000 TOTAL COSTS 3,32,000 2,51,000 2,69,000 5.
- 6. Fig: Graph showing growth expected in one year 0 0.5 1 1.5 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Market Place Campus Area Bombay-Pune Road Conclusion: • For the inception of TATA Starbuck’s kiosk in Pune, the market area near malls and in vicinity of branded shops should be preferred as it offers highest growth rate which will eventually cover up the formation expenses. • The next best option would be in college campus as youth prefers style and status. THANK YOU 6.