Economics case analysis
“Cafe Coffee Report”
The case proclaims about the coffee war between café coffee day and starbucks.
Cafe coffee day:
It was started by V.G.Siddhartha in 1996.
Initially it had opened 20 stores in south Indian cities like Bangalore and Chennai under the brand name of café coffee fresh and café coffee ground.
By April 2013, cafe coffee day was ranked No. 2 in food and beverage segment with 1469 cafes in India.
Siddhartha ambitions were “to take CCD to be number two or number three retail coffee brand in the world in next 20 years”.
The main target of café coffee day was young people aging between 15 to 30.
STATEMENT OF PROBLEM:
Major issue faced by CCD was the aggressive entry of Starbucks company in Indian market, as star bucks was the world’s largest coffee chain company with more than 18000 stores all over the world and with strong brand image in world market. Further, star bucks came to Indian market along with collaboration with the world’s second largest branded tea company Tata global beverages. In response with these strength of star bucks, CCD needs to take proper steps to beat star bucks in India market.
• In 2013, CCD was leading coffee chain company in India. It had 1469 stores,1000 outlet across India.
• CCD took 60% of market share in Indian market share.
• In March 2013, CCD gain revenue more than US$200 million…
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