Issues
Café Coffee Day
As a wellknown national coffee brand in India, CCD was India’s leading coffee chain in 2013 with over 60% of the market. However in the same year, Starbucks the world’s largest coffee chain company, opened its first 11 stores in Mumbai and Delhi. CCD has been watching closely with this big competitor entering the market, and the management team was not surprised by Starbucks’ initial success in its first six months of operation. The few issues that
CCD is facing with Starbucks entering the Indian market are: shifting consuming patterns, lack of customer service, and direct competition. While Starbucks is 50% more expensive than CCD in India and concentrating on…show more content… The market might shift to the younger age side, which would be a disadvantage for Starbucks since its main customer base is working professionals. Analysis
Strengths and Weaknesses
Product/Pricing
Product and pricing is one of CCD’s strengths. CCD’s products are targeted locally with a wide range of options. Products are reasonably priced base on its segment of the market. In comparison Starbucks is weaker with its pricing, for its 50% more expensive. Starbucks has also adapted to the local tastes and developed new menus specifically targeting at the new
Indian market. Starbucks created a new blend of espresso roast for the Indian market and added locally inspired dishes and a unique food dishes from each city. Supply Chain
CCD had a vertically integrated business model, where it sourced coffee from its own plantation. It’s pride for being the only brand in the world that has a fully backward integrated model, which means CCD owns the process from the bean to the cup without going through any middlemen. Through this model, CCD is more in control with its product quality. On the other hand, Starbucks supplies through Tata Global Beverage, the world’s second largest branded tea company. Even though Tata is a powerful and trustworthy partner, Starbucks still has less control with the product quality comparing to CCD. Customer
