Tuesday, November 29, 2011

A shift in gear

Well we have been discussing a lot about fast food for the past few days.Mc Donald's, Taco Bell, KFC are all leading fast food brands.We have talked about their strategies, their positioning, their logos in depth.Now lets change the gear a little bit.Lets talk about some coffee shops.Apart from having coffee in their offerings,they offer a number of other items like pastries, sandwiches and burgers to name a few.Are they not the competitors of KFC, Pizza Hut and Mc Donald's.We should spare a thought to it.

Lets start with Cafe Coffee Day- leading coffee shop brand in India.As their tagline goes "A lot can happen over a cup of coffee". It is the most popular coffee among the youths, even young proffessionals to some extent due to its affordable pricing and "cool" ambience. People go ,have coffee, listen to music, chat, snack on items.Before CCD came into existence there was another coffee shop which was very popular-Barista. It is still there but CCD no doubt has captured the market.Barista's target audience-mainly middle aged working proffessionals is different from CCD's. On the price front, Barista is high. They also offer a wide range of mocktails and other snack items apart from coffee and ice cream shakes and so on and so forth.

Another striking feature due to globalization and increase of disposable income, even youths from tier 2 and tier 3 cities have started visiting these places.CCD is present in tier 3 cities like Bhubaneshwar. So it is no more the youths from metro cities who frequent these places.This is a good piece of news for all the fast food companies and even coffee shops who are planning to go live in the recent future.

One thing which I am desperately waiting for is the launch of Starbucks in India-which is destined to happen sometime in the near future. It will change the existing situation and give a new dimension to the entire scenario.

3 comments:

  1. Nice one!!!.. As FDI in retail policy is underway, this will certainly help retailers like Starbucks to enter in Indian market. but it will tough time ahead for this giant retailer for managing Indian Infrastructure and to move into Tier-3 cities.

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  2. Nice work and seems to be an extensive research over the food chains...keep going and do update when the starbuks arrive......:P

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  3. I agree.Due to lack of infrastructure it is not going to be easy 4 Starbucks to enter in tier 2 or 3 cities at this juncture.But the general trend would continue.They would start off with metro cities and eventually move on to the other cities...

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