1. Research Project on Launch of Café shop
Presented by:
‡Suketu Bhatt
‡Shishira Hegde
‡Priyanka Mhatre
‡Vaibhav S
Presented To:
Prof. Parag M. Mahulikar
2. Flow of the Presentation
‡ Introduction
‡ Growth of Industry in India
‡ Major Players in India
‡ Objective
‡ Methodology
‡ Sample design and sample size
‡ Limitation
‡ Research finding and analysis
‡ Recommendation
3. Annexure
‡ Annexure 1- TOMA
± Annexure 1.1-Consumption and ordering pattern
± Annexure 1.2-Fequently visit of consumer in Coffee Shop
‡ Annexure 2- Opportunity Matrix
‡ Annexure 3- Demographics related analysis
±
±
±
±
Annexure 3.1-TOMA with Gender
Annexure 3.2-TOMA with Age Group
Annexure 3.3-TOMA with Occupation
Annexure 3.4-TOMA with Income
‡ Annexure 4- Spending behavior
± Annexure 4.1-General Category
± Annexure 4.2-Occupation Category
‡ Annexure 5- Preferences of coffee shop
‡ Annexure 6- Deciding factors for visit
4. Introduction
‡ Café industry is currently one of the biggest and fastest
growing sector.
‡ Industry consist of:
± Individual Café
± Hotel Café
± Retail Café
5. Growth of Café industry in India
‡ Coffee- first seat in South India.
‡ In order to spread, coffee house emerged at various place.
Served in places for lawyers and the educated class to hold
discussions.
‡ Raayars mess, Chennai established in 1940, oldest coffee
houses in South India which servers first class filter coffee.
‡ Five star hotel started opening coffee shops which carted high
end customers. The drink has now become more of a concept
than merely a drink
6. Contd͙.
‡ Over a decade number of café owners tried to westernize the
taste of coffee in contrast to the filter coffee.
‡ Large retail chain like Barista, Café coffee Day etc. opened,
concept is not merely selling coffee but about developing the
national brand.
‡ Coffee Market in India:
± Branded coffee 53%
± Unbranded 40%
± Café 7%
7. Major Players of the Café Industry
in India
‡ Café Coffee Day- CCD pioneered the café concept in India in
1996. The largest cafe retail chain in India, with 1000 cafes in
141 cities and many in its base, Bangalore
‡ Barista- Established in India in 1999. The chain has 200 stores
in India
‡ Mocha- Opened in Mumbai in 2001. 20 units out of which 12
are franchised.
‡ Costa Coffee- UK based café chain, entered in India in 2005.
Around 36 stores in India.
8. Objective
‡ Main Objective
Feasibility analysis for the launch of new coffee shop
‡ Sub-Objective
Customer perception about the coffee.
Relative market share of existing coffee shop.
To understand customer consumption pattern of the coffee.
Ordering pattern at coffee shop.
Opportunity matrix.
Customer feedback and recommendation for positioning of the
new brand.
9. Methodology
‡ The methods used for data collection were primary as well as
secondary.
‡ Primary Data collection
± Quantitative analysis- Stratified Random Sampling from different age
groups and different occupation.
‡ Secondary Data collection- Websites and even articles from
newspapers available on the internet.
‡ The research design that was followed was of Exploratory and
Descriptive Research.
10. Sample Design and Sample Size
‡ Sample Size: Quantitative data collected through survey
varied from
± Different Income Group
± Different Age Group
± Different Occupation
‡ Sample Size: 150 was drawn on the basis of those who avail
the services of coffee shops.
‡ All the respondents are from Mumbai.
11. Limitation
‡ The survey done on the consumers are only from Mumbai, so
the report does not show the preferences of the consumers
all through out India.
‡ Findings of the data is restricted mostly to Central and Harbor
Mumbai.
12. Research Findings and Analysis
1. TOMA (Annexure 1)
Coffee Shop
Percent
CCD
55.7
barista
30.9
Costa Coffee
10.1
others
3.4
Total
100.0
13. ‡ Annexure 1.1
Consumption Pattern
Consumption
Percent
2-3 times
50.0
0-1 times
49.3
4-5 times
.7
Ordering Pattern
Total
100.0
Percent
Frequency
coffee
136
90.7
cold drink/ milk shakes/ iced
tea
7
4.7
snacks
4
2.7
tea
1
.7
others
1
.7
149
99.3
1
.7
150
100.0
Total
Missi System
ng
Total
18. ‡ Annexure 3.1
Gender
Male
CCD
Count
% within which brand name you recollect when
we say Coffee Shop
barista
Count
% within which brand name you recollect when we
say Coffee Shop
Costa Coffee
Count
% within which brand name you recollect when we
say Coffee Shop
others
Count
% within which brand name you recollect when we
say Coffee Shop
Total
Female
45
38
83
54.2%
45.8%
100.0%
11
35
46
23.9%
76.1%
100.0%
15
0
15
100.0%
.0%
100.0%
2
3
5
40.0%
60.0%
100.0%
24. ‡ Annexure 3.4
Monthly income
10,000-25,000 25,000-45,000 45,000-60,000
CCD
Count
% of Total
barista
Count
% of Total
Costa Coffee
Count
% of Total
others
Count
% of Total
more then
60,000
13
28
17
25
8.7%
18.8%
11.4%
16.8%
8
11
14
13
5.4%
7.4%
9.4%
8.7%
4
11
0
0
2.7%
7.4%
.0%
.0%
3
0
1
1
2.0%
.0%
.7%
.7%
25. 4. SPENDING BEHAVIOUR
‡ General category (Annexure 4.1)
Frequency
Valid
Percent
0-100
37
24.7
56
37.3
46
30.7
11
7.3
150
100.0
100-200
200-300
300+
Total
26. ‡ Occupation category (Annexure 4.2)
How much do you spend
0-100
100-200
200-300
300+
Percentag
e (%)
Total
0
1
0
0
1
0.67
Service
22
36
16
8
82
54.67
Business
0
3
20
2
25
16.67
15
3
5
1
24
16
Housewife
0
5
1
0
6
4
Student
0
8
4
0
12
8
37
56
46
11
150
Profession
Unemployed
Count
Professionals
Total
27. 5. Preference of Coffee Shop (Annexure 5)
Percent
Frequency
Valid
CCD
Barista
Mocha
Costa Coffee
others
Total
Missing
Total
System
66
44.0
24
16.0
4
2.7
9
6.0
2
1.3
105
70.0
45
30.0
150
100.0
28. 6. Criteria that affects the choice (Annexure 6)
Percent
Frequency
Valid
Environment
Price
Quality
Service
Total
Missing
Total
System
65
43.3
40
26.7
35
23.3
8
5.3
148
98.7
2
1.3
150
100.0
29. Recommendation
‡ Ambience and Quality are the key parameter that affect the
choice of Coffee Shop. Where Ambience accounts for 4.33
and Quality accounts for 5.23 (Annexure 6).
‡ Most of the consumers only order coffee while they visit
coffee shops, so awareness to be made about other
beverages and snacks.(Annexure 1.1)
‡ Availability of snacks.
‡ Right mix of advertisement.
‡ Introduction of ͞Happy Hours͟ and privileged cards for regular
customers.
‡ Tie-ups with companies for offers on bulk orders on vouchers.
(Annexure 4.2)
