MARKETING MIX OF BARISTA VS CAFÉ COFFEE DAY VS MOCHAword
MARKETING MIX OF BARISTA VS CAFÉ COFFEE DAY VS MOCHAword
MARKETING MIX OF BARISTA VS CAFÉ COFFEE DAY VS MOCHAword
INSTITUTE OF
TECHNOLOGY
VIDYALANKAR MARG, WADALA (E), MUMBAI – 400 037
By Group Members
MARKETING MIX OF
BARISTA, CAFE
COFFEE DAY AND
CAFE MOCHA
PREFACE
Marketing strategies are methods followed by most successful
and well known companies to improve their scope in any market.
It is a means by which we determine whether one company is
better than the other or not. Food chains are a growing industry in
the modern world with an increase in the number of working
hours of the average working person. Hence, even food chains
need to improve their marketing strategies to appeal to the
middle-class consumer.
The main aim of this book is to make the reader understand the
various strategies followed by food companies to improve their
scope on the consumer and to add appeal to their brand as a
whole by being creative and unique. The various techniques
followed by three different food brands- Café Coffee Day, Barista
and Café Mocha have been listed in this book in an easy and
understandable manner. These discussions, we hope, will enable
the reader to understand these strategies with ease.
The contents of this book have been divided into three main
parts. The first part focuses on the marketing strategies and
techniques used by Café Coffee Day to make it such a global
brand with universal appeal. The second part focuses on the
techniques used by Barista which make it so appealing to youth
as well as the working class people.
The third and final part looks into the marketing strategies
adopted by Café Mocha which make it such a unique brand so
popular with the youth of today.
We hope that this book, with comprehensive coverage of all
aspects of marketing strategies, will prove to be relevant, useful
and enjoyable to the reader.
ACKNOWLEDGEMENTS
This book is intended for a general audience and authorities have
therefore not been quoted in the text. To do so would have
broken the flow of words and it is a practice suitable only for a
more technical work.
But many brilliantly original papers and books have been referred
to during the assembly of this volume and it would be wrong to
present it without acknowledging their valuable assistance.
We would also like to express our debt and gratitude to the many
colleagues and friends who have helped us, directly and
indirectly, in discussions, correspondence and many other ways.
They include, in particular, the following:
CONTENTS
1. Barista
1.1 Introduction
1
1.2 Product Mix and Price Mix
1-2
1.3 Process Mix
3
1.4 People Mix
3
1.5 Promotions Mix
3-5
1.6 Place Mix 5
1.7 Location 6
2. Café Coffee Day
2.1 Introduction
7
2.2 Product Mix and Price Mix
8-9
2.3 Process Mix
9
2.4 People Mix
9
2.5 Positioning Mix
9-12
2.6 Sales Promotion
13
3. Café Mocha
3.1 Introduction
14
3.2 Product Mix and Price Mix
14-15
3.3 Process Mix
15
3.4 People Mix
15
3.5 Positioning Mix
15
3.6 Place Mix 15
3.7 Promotions Mix
16
ABSTRACT
• ANALYSIS OF BARISTA
Barista is a coffee retailing chain which started operations in
India in February 2000. It was promoted with an initial capital of
Rs. 20 Crores by Java Coffee Company Ltd., a company owned by
the Turner Morrison group of Lacosté fame. Thereafter Barista
has undergone several ownership changes as well as changes at
the helm .Through the assignment, we would Study the
marketing Mix adopted by café mocha. Their target audience and
market positioning
• Marketing Mix
Product Mix :
Coffees & Refreshing Eatables
Teas Alternatives
Price Mix:
Barista has a ‘Skim Pricing Policy’. They began with a higher
price, and skimmed the cream for the market. With the sudden
spurt of growth in number of outlets, came the benefits of
economies of scale. Because of this, they have been able to
gradually lower their prices, and appeal to different segments of
their target market. Currently, their prices are the lowest they
have ever been, and they can competitively match their prices
against Café Coffee Day’s prices. The prices are constantly
changing though, and the last 1-year has seen 3 changes (mostly
reductions) in prices. This gradual price reduction meant that
Barista could maintain its profit- maximization policy until it could
earn large cost savings because of the benefits of high volume.
The main factors that affect their pricing are their cost of goods
sold. The costs are quite high because imports a majority of its
products and product. Considering that Barista is trying to target
a market whose age range is between 18 and 60 years, a pricing
policy appealing to this segment is difficult. Extremely low prices
act as a deterrent to some customers who might regard it as an
indicator or quality, while very high prices cannot be afforded by
most of the youth. But since Barista’s current consumer profile is
quite young, their prices are mostly inexpensive, and at par with
their competitors.
Process Mix:
The order and delivery process at Barista is based on self- service,
where a customer goes up to the counter to place his order, and
goes back to the counter to pick his delivery once it is prepared.
People Mix:
The people at Barista are characteristically trained to be Pleasant,
Polite and Positive.They ensure you have a quiet, uninterrupted
visit and provide an escape from the daily pressures of life. Their
uniforms are in sober shades of brown and orange, and contribute
to the overall laid-back feeling of the café.
Promotion Mix:
According to research, over 65% of Barista’s customers are in the
15- 30 age- group. The majority of these are students and young
urban professionals. Barista positions itself as a brand for anyone
who loves coffee. Their products, services
and outlets are more like the traditional European cafés, where
people would meet for the love of coffee, and for an intellectual
appealing time. They position their outlets as a place “where the
world meets”, and they look to appeal to anyone in the 14- 60
age group that loves good coffee and looks for a nice quiet time.
Barista, since the beginning has looked to use colors in its café
interiors, logos and images; to project a “warm, earth glow,
synonymous with coffee”. Barista uses shades of Orange & Brown
to good effect to promote its “laid- back” atmosphere. The logo is
a combination of Brown, Orange and Light Yellow; with the word
“Barista” written in an upward curve, and the word “Coffee”
underneath. A simple logo that perfectly expresses Barista’s
brand image: A traditional café for coffee lovers.
c)Literature:
d) Sponsorships:
e) Sales Promotion:
f) Collaborations:
Barista has entered into special collaborations and alliances with
various partners for co - marketing brands. For example, Barista
entered into a deal with Leo Mattel toys to provide the popular
board game Scrabble at every Barista outlet across the country
.This is an ideal alliance for both the organizations, because it
provides Leo Mattel with an important avenue for promoting their
product, and it provides Barista’s customers an added attraction
for spending more time at Barista outlets .Barista has also
entered into partnerships with various movies, for promotions
through Barista, and recently, they tied up with Star World for its
“Absolutely Everybody” campaign.
Location:
On the basis of the above criteria, they had initially targeted cities
like Delhi,
Mumbai, Bangalore, Chennai and Hyderabad. Chandigarh and
Ludhiana were later added due to tie- ups with ‘Planet M’ and
‘Ebony’ to set up store-in- stores at their outlets.They are also
pursuing an equally aggressive international business expansion
strategy. They have over 50 overseas locations presently under
their consideration .They have already done their groundwork in
terms of getting brand and name registrations in over 30 of these
locations. To facilitate their global expansion, they plan to work
with strategic partners, who share the same vision of expanding
and promoting the brand worldwide. Currently they have opened
new outlets in Sri Lanka and Dubai as a part of their international
strategy.
• Corporate Profile
It was in the golden soil of Chikmagalur that a traditional family
owned a few acres of coffee estates, which yielded rich coffee
beans. Soon Amalgamated Bean Coffee Trading Company
Limited, popularly known as Coffee Day was formed. With a rich
coffee growing tradition since 1875 behind it coupled with the
opportunity that arose with the deregulation of the coffee board
in the early nineties, Coffee Day began exporting coffee to the
connoisseurs across USA, Europe & Japan. In the calendar year
2000, Coffee Day exported more than 27000 tonnes of coffee
valued at US$ 60 m to these countries and, for the second time in
its short career of 7 years retained the position as the largest
coffee exporter of India. Coffee Day has a wide and professional
network in the major coffee growing areas of the country
comprising over 48 agents and 50 collecting depots. Coffee Day's
two curing works at Chikmagalur and Hassan cure over 70,000
tonnes of coffee per annum, the largest in the country.Coffee
Day has a well-equipped roasting unit catering to the specific
requirement of the consumers. The process is carried out under
the control of experienced personnel to meet highest quality
standards. The most modern technology available is used to
maintain consistency and roast the coffee beans to the
demanding specifications of the discerning coffee consumers.
• Marketing Mix
Product Mix
Considering that Café Coffee Day knows its major customer lies in
the bracket of 15- 29, it has tried to derive a policy whereby it can
satisfy all its customers. The price for a cup of coffee ranges from
Rs.17 to Rs.54. From the time it first started its operations, there
has been only minor changes in the pricing policy of Café Coffee
Day. The changes have been more due to the government taxes
than any thing else.
Process
People Mix
People at Café Coffee Day believe that “People are hired for what
they know but firedfor how they behave”. Motivation and personal
skill are laid emphasize upon.
Positioning Mix
Café Coffee Day has used bright red and green colors in its logo.
RED stands for
leadership and vitality. It also stands for passion (… for coffee).
The GREEN stroke harks back to their coffee growing heritage and
the coffee plantations that they own.Café is noticeably larger than
the rest of the text inside the logo box. This denotes that Café
Coffee Day pioneered the café concept in India way back in 1996.
Café Coffee Day would like to own the word “café” in the minds of
its
customers.
When one thinks of a café it’s got to be Café Coffee Day. The font
used for “Café” is called SLURRY. The font looks as though the
letters have congealed out of a liquid. It gives the impression that
the word is still forming itself and evolving into something new
and something better constantly. This is the characteristic of Café
Coffee Day’s customers and this is the characteristic that the
brand too wants to adopt. The upward SWIRL inside the logo box
stands for the invigorating and uplifting nature of coffee and the
ambience at Café Coffee Day.
Café Coffee Day had gone in for image change and revamping of
interiors in the last quarter of 2001. Café interiors have been
given a whole, new look. In a change from the largely wood and
granite based interiors, there is more of steel and lots more colour
now. The young colours of today, lime green, yellow, orange, and
purple predominate.
D)Literature
e)Locations
• Through television
• Ticket sales
Bas Yun Hi
Khakee
Main Hoon Na
Kyun Ho Gaya Na
Mujhse Shaadi Karoge
Lucky
Socha Na Tha
And a lot of Telegu & Tamil movies
• Sales Promotion
CAFÉ MOCHA
Product Mix:
• Bakery Products
• Cheese Sandwiches
• Egg Sandwiches and Platters
• Fruit and Juice
• Omelettes
• Pancakes and French Toast
• Panini
• Salad Entrees
• Wrap
• Deserts
• Smoothies
• Beverages
Price Mix:
Process Mix:
Positioning Mix:
Place Mix:
Promotion Mix: