Comparative study between ccd & starbucks

CCD VS Starbucks

1. Comparative Study Between CCD & Starbucks M.Com (E-commerce) Sub:- Managerial Economics Topic:- By Group 9, 21032 Akshit Rameshia 21034 Afrin Kazi 21035 Ridham Patel

2. CONTENTS 01 Introduction 02 History 03 The Key Strengths 04 Starbucks entered in India 05 Differentiation Strategy 06 SWOT Analysis

3. Coffee is a part of our daily lifestyle, especially every morning. With every cup of this, it helps us to feel relieved. It relieved us from hangovers and stress. Introduction • Café Coffee Day (CCD) is an Indian café chain owned by Coffee Day Global Ltd Earlier known as Amalgamated Bean Coffee Trading Company. •It is the largest producer of Arabica beans in Asia exporting to various countries including USA, Europe and Japan. • CCD was founded by V. G. Siddhartha in 1996.

4. ‘Starbucks entering India', this was a news for the business media. They were suggesting and explaining strategies, to survive the market entry of Starbucks. Introduction • Starbucks  was founded by Jerry Baldwin, Gordon Bowker , and Zev Siegl , opening its first store in 1971 near the historic Pike Place Market in Seattle City in Washington State. • Starbucks the new entrant in collaboration with Tata had all the resources to take battle head-on with CCD in India.

5. History • Starbucks - Three friends who all had a passion for fresh coffee, opened a small shop and began selling fresh roasted, gourmet coffee beans accessories and etc. The company did well, later started selling brewed coffee, express-based hot drinks, snacks, mugs and coffee beans Company started in 1971 in Seattle in Washington, U.S. • Café Coffee Day Global Limited Company is a Chikkamagaluru -based business which grows coffee in its own estates of 20,000 acres. It is the largest producer of arabica beans in Asia, exporting to various countries including U.S., Europe, and Japan. V. G. Siddhartha  started the café chain in 1996 when he incorporated Coffee Day Global, which is the parent of the Coffee Day chain.

6. The key strengths of Starbucks is its Distribution channel, affordable pricing and high brand equity. 1. Strong Distribution Channel: CCD has a strong store format through which it targets all the segments. It operates its 1,550 outlets in three main formats which target different segments Regular café (1,495) The premium Lounge (51) CCD Square (4), which serves single-origin (rather than blended) coffee Apart from these outlets, CCD has also set up 600 takeaway kiosks called CCD Xpress, and 16,000 ending machines in corporate offices around the country. Expansion at CCD has been driven in a grid of verticals and formats, where verticals include transport hubs, shop-in-shops, hospitals, highways, college and corporate campuses The Key Strengths

7. 2.     High Brand Equity among Youths:   Being the pioneer of coffee culture in India, CCD enjoys high brand equity among the youths with major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 60%  of the overall revenue. The group comprises of mainly college going students and young working professionals. 3.     Differential Pricing:  CCD follows differential prices, different stores of CCD has different pricing, which allows CCD to maintain profitability at store level The Key Strengths

8. What happened when Starbucks entered in India? C onventional wisdom suggests that Starbucks should take a head on battle with CCD. However,  Starbucks realized that it will never be able to rival CCD in terms of sheer scale and market share in India and even if it tries to do this will require huge investments in real estate, threat of price war with CCD and other chains, brand dilution etc. Starbucks also realized that CCD has high brand equity among youths due to its affordable pricing due to large young population which are its prime consumer base. B ut at the same time, Starbucks realized that CCD is weakest in premium segments  doesn’t have the clear positioning and scale of operations. Moreover, this segment has no competition (except CCD lounges and Squares)

9. Starbucks Differentiation Strategy compared to CCD & Other Brands

10. Starbucks Differentiation Strategy compared to CCD & Other Brands Contd … Single store format:  Unlike CCD, Starbucks will have only one format. Single store format will allow Starbucks to set a uniform brand expectations. Price:   Standard pricing for all the stores but 1.5 times higher than CCD. Location:  Unlike CCD, Starbucks will have stores only in premium positions to target upper middle class Brand. Positioning:  By going premium, Starbucks is creating an aspiration brand ₹

11. Comparative SWOT Analysis of CCD & STARBUCKS

12. Comparative SWOT Analysis of CCD & STARBUCKS

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