Case Memo: Coffee Wars in India
Professor: Dr. Namkung
From: Nick Kuhn
Date: 11/5/17
Executive Summary: This case memo analyzes the coffee market in India. In order to help Café Coffee Day (CCD) obtain a strong competition on the market, this memo compares CCD and its main competitor-Starbucks in three different perspectives: SWOT analysis, strategies, and financial situations. By comparing the SWOT of these two companies, the finding is that CCD focuses on the local young people, and Starbucks attracts international visitors. By comparing the financial statements, the finding is that Starbucks has strong financial support, and CCD needs to avoid getting involved in a direct fight with Starbucks. The recommendation for CCD is investing …show more content…
From CCD’s perspective, because its strengths include the young people, so it focused on the young generations whose age is between 15 to 30. In order to differentiate with other competitors, CCD increases the investment in promotional activities, the rock concerts and popular Indian movies. This strategic successfully attracted thousands of young people to hang out there, because CCD has good tasting coffee with a reasonable price. Moreover, local customers can also enjoy Indian movies there. The advantage in Indian culture also make CCD to be an unreplaceable place for many young …show more content…
Because the development of high quality products required more investment, and the competitors like Starbucks already took a big part of high-end segment, so expanding the high-end market is not the best way. As for the feedback systems, upgrading the IT systems in the company is also very expensive, and the feedback systems may be ignored by the young customers, so it’s not a good option either. But invest in developing new products based on existing products is a good option since the cost is lower than developing a high-end product, and this also fits CCD’s targeting customers’ want, young generations prefer new stuff. In order to achieve this goal, CCD can redesign the existing product’s packaging, and add new elements into
Professor: Dr. Namkung
From: Nick Kuhn
Date: 11/5/17
Executive Summary: This case memo analyzes the coffee market in India. In order to help Café Coffee Day (CCD) obtain a strong competition on the market, this memo compares CCD and its main competitor-Starbucks in three different perspectives: SWOT analysis, strategies, and financial situations. By comparing the SWOT of these two companies, the finding is that CCD focuses on the local young people, and Starbucks attracts international visitors. By comparing the financial statements, the finding is that Starbucks has strong financial support, and CCD needs to avoid getting involved in a direct fight with Starbucks. The recommendation for CCD is investing …show more content…
From CCD’s perspective, because its strengths include the young people, so it focused on the young generations whose age is between 15 to 30. In order to differentiate with other competitors, CCD increases the investment in promotional activities, the rock concerts and popular Indian movies. This strategic successfully attracted thousands of young people to hang out there, because CCD has good tasting coffee with a reasonable price. Moreover, local customers can also enjoy Indian movies there. The advantage in Indian culture also make CCD to be an unreplaceable place for many young …show more content…
Because the development of high quality products required more investment, and the competitors like Starbucks already took a big part of high-end segment, so expanding the high-end market is not the best way. As for the feedback systems, upgrading the IT systems in the company is also very expensive, and the feedback systems may be ignored by the young customers, so it’s not a good option either. But invest in developing new products based on existing products is a good option since the cost is lower than developing a high-end product, and this also fits CCD’s targeting customers’ want, young generations prefer new stuff. In order to achieve this goal, CCD can redesign the existing product’s packaging, and add new elements into