Starbucks entered India through a joint venture with Tata Global Beverages in 2012. While Starbucks is the global leader in coffeehouse chains, Café Coffee Day is the market leader in India. Starbucks prices are higher than CCD but lower than other competitors. Starbucks aims to leverage Tata's retail presence and real estate capabilities. CCD has a variety of store formats and tailors its offerings to customer needs in different locations. Starbucks faces challenges establishing its premium brand and business model in India given higher costs and prices compared to CCD.

1. Does ‘StarBucks’ have
the Right Blend for
India

2. Café Coffee Day is
the market leader
in terms of retail
footprint
Retail Footprint of Coffee Chains
(No of Stores as of Sep 2012)

3. The Café market is
estimated to clock a
CAGR of about 13-14%
over next five years
2007 2013 2018

4. Entry of StarBucks in India
Starbucks is the world’s largest
coffeehouse chain with over 19000
outlets in 62 countries
Tata Starbucks is a two-year-old
joint venture between the $1.21 Billion
Tata Global beverages & the $14.9
Billion Starbucks Coffee Company
Starbucks first planned an India
foray as far back as 2007,in
partnership with Future Group,which
was set aside as the Global Economy
Slowdown
Starbucks entered India 15 years
after it entered China

5. 0
2000
4000
6000
8000
10000
12000
US Cana
da
China Japan UK South
Korea
Mexic
o
Taiwa
n
Puert
o Rico
Philip
pines
Other
s
No of Stores 11457 1337 1017 1000 764 559 403 297 226 216 2491
Starbucks presence across various Countries/Contribution of countries to
Starbucks(Revenue)
The China & Asia Pacific region brought in 6% of the company’s revenue in the year
2013,compared with 74% from the America’s
Whereas the America’s grew at 11% & Europe ,Middle East & Africa registered just
2% improvement,China & Asia Pacific clocked 27% growth in 2013 compared with
2012

6. Brand Formats
of Café Coffee
Day
1)Regular Café
Stores(1495)
2)The Premium Lounge
Stores(51)
3)CCD Square Stores(4)
4)CCD Express(600 Take
away Kiosks)
5)Vending machines(16000
Nos in Corporate Offices)
Expansion at CCD has been driven in
a grid of verticals & formats
Verticals Include;
-Transport Hubs
-Shop-in-Shops
-Hospitals
-jective Highways
-Colleges
-Corporate Campuses
The main objective of CCD has to
combine verticals & formats to tailor-
make an outlet that suites the customer
cluster that exist in any location

7. Operation
-Starbucks will have only one
format of stores & one price
across India
-Any finetuning will be only
in terms of size
Price
-Starbucks in India is priced nearly on par
with the US & China,and it is priced around
1.5 times CCD
-It is also more expensive than CCD Lounge
-Starbucks has priced its coffee at the
median,higher than CCD & CCD Lounge
but less than Costa Coffee & The Coffee
Bean & Tea Leaf(CBTL)
How is Starbucks different from Café Coffee Day(CCD)

8. Supply Chain Management
The Indian Espresso Roast variety is
sourced locally from this plant
CBTL
CBTL sources beans internationally, is a
big part of expenses for its 29 stores
across seven cities in India
Globally,CBTL purchase specialty-grade
Arabica Coffee beans from small farms &
private estates in East Africa,Latin America
& the Pacific

9. Average
Ticket
Value(Rs)
Earnings on
wekends(Rs)
Earnings on
weekdays(Rs)
Earnings per
month(Rs)
Expenses(Rs) Profit(Rs)
90-100 40,000 50,000 13,00,000 Food & Beverage
-25% of ticket value
Running Cost
-Electricity,Water,Rent,Salary
account for little over half
Incidental Expenses
-Tissues,Cups,Wifi account for
another 1,00,000
2,00,000
Revenue Per Stores
CCD will just take over 2 years for the
store to recover its 50 lakh capex
Average
Ticket
Value(Rs)
Earnings on
wekends(Rs)
Earnings on
weekdays(Rs)
Earnings per
month(Rs)
Expenses(Rs) Profit(Rs)
150(Higher
than CCD)
70,000 1,00,000 24,00,000 Food & Beverage
-25% of ticket value
Running Cost
-Electricity,Water,Rent,Salary
account for little over half
Incidental Expenses
-2,00,000
3,00,000
Starbucks capex is more than double that of CCD,so it
will take over 3 years -4 months to Break-Even

10. Food
Offerings CCD fine-tunes its menu based on the
location
-Idlis at Highway outlets
-CCD Lounge offers shawarma skewers,nachos &
khow suey
(About 30% of the revenue for CCD come from
food,while beverages account for 60% & merchandise
makes up the remainder
- ’Cardamom-flavoured mawa croissant’ has done
well
-Other menu include tandoori paneer roll,murgh
kathi wrap & chatpata paratha wrap
Catering at Starbucks has been handed over to Taj
Sats,which has helped develop a menu that keeps in
mind local preferences
Barista Lavazza
launches 2 menus
every year
1)Summer Menu
2)Winter Menu
-Catering to local taste buds is something Starbucks has perfected in other
countries also
-Ex:In China Starbucks offers Apple-Flavoured coffee that is quite a hit
(20% of local palate that Starbucks offers is usually spot on)

11. Business Advantage
Locations
-Tata’s can be of
tremendous help when it
comes to getting great
locations
-Tata brings in a unique
perspective in terms of
real estate acquisitions
capabilities
Retail Presence
-Tata group’s considerable retail
presence-
Westside,Croma,Landmark,Star
Bazaar,Titan,Tanishq offers scope for
Shop-in-Shop Starbucks outlets
Integration
The Joint Venture brings
in the opportunity to
integrate Starbucks into
‘Taj Hotels', the ability
to bring food from the
Taj into Starbucks stores
In the US,Starbucks store sizes vary from
150 sq.ft -1500 sq.ft depending on strategy
Ex:Starbucks has an arrangement to run café’s inside Barnes
& Noble book stores. But there’s no guarantee of success
with such arrangements .The smaller outlets may not get the
no of customers required to be viable(given Starbucks higher
prices, that seems a definite possibility).Such stores won’t be
destinations in themselves in any case
CCD has tie-ups to run Café’s in ‘Essar Oil petrol
pumps’ & ‘Shoppers Stop Stores’
Experience shows that the Café is
add-on activity, not an objective in
itself-no on drives to the petrol
pump for a coffee
(In a shop-in-shop format,the footfalls
are created by the principal & CCD
only does a conversion)

12. What is special in CCD
You can Shop Online
Products
Coffee Makers
Coffe Powders
Mugs & Cups
Gifts
Quick Bites
Gifts
Bags
Caps

13. CCD Shopping
 Compact machine, ideal for small
spaces
Thermo block heating system for
quick heating
 Programmable coffee options
Capsule auto ejection system
 Water capacity: 1 L
 Adjustable & removable drip tray for
small and big cup
 Transparent removable water tank
Easy to use and clean
ORION AQUA BLUE - FULLY
AUTOMATIC COFFEE BREWER
VEGA WHITE - SEMI
AUTOMATIC COFFEE BREWER
Compact machine, ideal for small spaces
Adjustable base for small and big cup
 Simple one button to start/stop coffee
Water capacity: 1 L
 Thermo block heating system for quick
heating
 Easy-to-clean design ensures optimum
convenience
12 Months warranty on manufacturing
defects
Aromatic coffee percolates instantly with this
snazzy Italian style stainless steel espresso
maker. It's easy to use and the perfect gift for
your friends, family, or even yourself
Compact machine, ideal for small spaces
Thermo block heating system for quick heating
 Programmable coffee options
 Capsule auto ejection system
 Water capacity: 1 L
 Adjustable & removable drip tray for small and big
cup
 Transparent removable water tank
 Easy to use and clean
ORION GOLD - FULLY
AUTOMATIC COFFEE BREWER
SS STOVETOP ESPRESSO
MAKER - NEW

14. Mugs & Cups
PERSONALIZED
MUG - HANGING
HEARTS
COOL MUG -
AZHAGU RAJA
FLYING HEARTS
LOVERS MUG
ECO-MUG GREEN
Coffee Powders
ESTATE BLEND
CAPSULES (2
PACK)
GUATEMALA
ANTIGUA
FESTIVE BLEND
COFFEE
PURE ARABICA
CAPSULES (2 PACK)

15. Gifts
A special person requires a special
gift. Now, Café Coffee Day lets
you be the reason for the smile on
someone's face! Be it Friendship
Day, Mother's Day, Valentine's
Day, Women's Day or your
birthday, share the simple joys of
Coffee with the ones you love with
our pre-paid Café Moments Gift
Card!.
Café Moments
THE CONNOISSEUR
Quick Bites
DOUBLE CHOCO
CHIP (PACK OF 2)
BIRTHDAY
CELEBRATION
CHOCOLATE - 3
CAFE LATTE
COOKIES (PACK OF
2)
JOIE CHOCO CHIP
BAR (PACK OF 2)

16. Bags
DHOOM-3 ONE SIDE
BACK PACK
DHOOM-3 SLING BAG NITRO DHOOM-3 BACK PACK
SPEED MEISTER
Caps
DHOOM-3 SPEED
HUSTLER BLACK CAP
DHOOM-3 AK HAT BLACK
REPLICA STYLE-2
DHOOM-3 AK HAT BLACK
REPLICA STYLE-1

17. Coffee Vending machine for Office & Commercial use
Celesta Coffee Vending Machine
The simple and user-friendly
controls allow you to enjoy gourmet
coffee drinks like cappuccino, latte
and espresso!

18. Starbucks Special Initiatives
CHAI has helped the community people to;
Improve access to water and sanitation
Help young people succeed in school and become leaders in their
communities
Learn the skills to get a job or start a business

19. More than 60% of Indian tea comes from Northeast India and Darjeeling where approximately 3
million people work on tea estates. Most are daily wage laborers. Each household is generally
allotted permanent worker status for one – sometimes two – family members
CHAI is the only organization working with tea estates in Northern Indian, which are normally
autonomous entities with little or no government or NGO presence. Starbucks and Tazo’s strong
relationships with local tea growers have helped the project gain access to tea estates,
demonstrating a long-term commitment to the communities we are working with, building the
estate managers’ trust, and proving results to all of our stakeholders.
In Assam, over 30% of Assam’s population of 30 million lives under the poverty level. The high
drop-out rates in local schools and a low skills base have pushed more and more youth to join
insurgent groups due to lack of positive alternatives.
CHAI Benefits to local community;
-Living quarters
-Rations of wheat,
-Rice,
-Firewood
- Toilet Facilities
- drinking water facilities
Results of the Project;
( More than 75,000 people and their families have been
directly impacted by CHAI)
Water, Sanitation and Health
In Darjeeling, annual incidents of waterborne diseases
dropped by 50% in CHAI project communities. Significant
accomplishments include 1,250 latrines constructed and 26
clean water infrastructure projects completed. 2,000 children
reached with hygiene education in schools
Youth Empowerment
-In Assam, 54 youth groups formed with 6,000 youth engaged
in projects. The high school dropout rate in Assam is 60%.
However, 91% of participants in CHAI Education Retention
program continue to higher education. The program also
awarded 297 scholarships
Economic Opportunity
-Key results include 65% of youth in the CHAI vocational
training program found employment. 2,100 women
participated in savings groups, and program supported
1,500 micro-entrepreneurs.
CHAI
Project

20. Background
Aims & Objectives
of SWASTHA
Training & Activities
Kodagu a small district of
Karnataka having a population of
about 5.33 Lakhs has 3866 persons
with different kinds of special
needs (disabilities), which is very
high compared to other districts. In
Kodagu, Somwarpet Taluk has the
highest number of persons with
Special needs, out of the 3 taluks.
To cater to the needs of the above differently abled children, The Coorg Foundation decided to start a
Centre. M/S.TATA Coffee Ltd., has kindly agreed to spare their premises at Madapur Road, Suntikoppa.
Swastha, Centre for Special Education and Rehabilitation, was started on 23rd August 2003 with the
intention of educating, training and rehabilitating those children kept away from the mainstream of
society because of mental and physical impairment which make them differently abled
The aim is to develop their hidden talents and through special education give them a
purpose towards a better life. With these ambitions in mind, Swastha came into existence.
The second unit was inaugurated on 27th February 2007, at Pollibetta. The Swastha's
Rehabilitation Unit aims to minimize the impact of disability by improving the quality of life of
the disabled individuals and thus achieve the goal of socio-economic independence with
dignity and self-confidence.
Special Education
Rehabilitation Centre
Facilities: The centre is offering the following acilities to the students
like Free boarding and lodging,Free uniforms ,Free education and
training., Free transportation facility to the day scholars, Free medical
checkups and free medicines to the boarders, Free counseling to the
students and parents by the experts.
Other activities:The students are given opportunity to learn :-
a) Yoga, b) Dance, c) painting d) poultry e) apiary and f) gardening. The
children are also given opportunity to participate in debates, drawing and
painting competitions and sports.To involve the children in various cultural
activities, we conduct Annual Day , Celebration, World Disabled Day,
Independence Day, Republic Day and Gandhi Jayanthi Celebrations.
SWASTHA

21. Anup George Rebello
Asst.Manager
The Catholic Syrian Bank Ltd