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Coffee Wars in India: Café Coffee Day Takes On The Global Brands

Coffee consumption in India has grown significantly in recent decades, though it remains much lower than tea consumption. Several coffee chains have established themselves in India since the 1990s, including Café Coffee Day (CCD) in 1996. CCD has become the dominant player in India's organized café market, holding over 60% of the market share by 2013. As global coffee brands like Starbucks have now entered the Indian market, CCD faces new competitive challenges in defending its leading position.

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259 views2 pages

Coffee Wars in India: Café Coffee Day Takes On The Global Brands

Coffee consumption in India has grown significantly in recent decades, though it remains much lower than tea consumption. Several coffee chains have established themselves in India since the 1990s, including Café Coffee Day (CCD) in 1996. CCD has become the dominant player in India's organized café market, holding over 60% of the market share by 2013. As global coffee brands like Starbucks have now entered the Indian market, CCD faces new competitive challenges in defending its leading position.

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ARJUN V
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Coffee Wars in India: Caf Coffee Day Takes on the Global

Brands

1. Write a brief chronological business history (bullet points) (History of coffee drinking
in a market dominated by Tea)

Indians consumed tea almost 10times more than coffee in 2011.


Coffee revolution began in the year 1996.
Coffee revolution
Caf Coffee Day (1996), Barista Lavazza (2000), Mocha Caf (2001), Coffee
Bean and Tea Leaves (2008), Bru World Caf (2011), Starbucks (2012)

Coffee consumption had grown at a compounded annual growth rate of 6.8% between
2001-2011 comparing to the growth of the tea only up-to 3.6%.
While the consumption of coffee per person is 100grams in India compared to
4.5kilograms in UK and other countries.
Supermarkets and hypermarkets had a growth in India capturing 20% of coffee sales
by 2011.
Fast moving coffee brands were-Bru from Hindustan Uniliver, the Indian arm of
Uniliver, and Nescafe from nestle.
-Di Bella
-Dunkin Donuts.
By 2013 CCD was Indias leading coffee chain with 1496 stores, 1000takeout outlets,
and over 60% of the market.
Indias organised caf market expected to increase from $230 million to $410 million
by 2017.

2. This is basically a competitor advantage and competitive response case. Your response to
the following questions should be based on the principles of competitive advantage.

a) What are CCDs competitive advantages and challenges


b) Do a critical comparison with the advantages and challenges of Starbucks and Tata

3. What should be the most important goals for V.G. Siddhartha and Venu Madhav when
considering their response to Starbucks entry into India

4. How should Siddhartha and Venu Madhav respond? Slight course correction or bigger,
bolder, aggressive reaction

5. Is going Global the ideal long-term strategy for CCD? Compare with the strategy adopted by
Haier and recommend a way forward.

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