Case Study : Cafe Coffee Day

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Executive Summary

Café Coffee Day (CCD) started the coffee revolution in India in 1996 and is now the largest coffee chain. The report talks about how to respond to the Starbucks’s entry in India with a joint venture with the Tata group. While most global brands have failed to gain much of an edge in India against CCD Starbucks is having many advantages over the other global brands due to its brand value and its JV with Tata group.
We can see CCD is a dominant market leader in India and now facing a bigger firm entering into its territory. CCD has many advantages owing to its incumbent nature, end to end supply chains and staff training programs. But Starbucks has its own set of advantages of being a very well recognised premium brand with strong brand equity and global presence which now has a JV with a very well respected and omnipresent Indian conglomerate.
It is recommended that CCD should tweak its strategy slightly and avoid head-to-head competition with Starbucks.

* Number of words: 174

Coffee consumption was growing at a brisk compound annual growth rate of 6.8% between 2001 and 2011 in India. India is predominantly a tea drinking market as Indians had been consuming tea from generations and the market for tea was ten times more than that of coffee. Café coffee day (CCD) set up its first coffee shop in 1996 and started the coffee revolution in India. In 2000, Barista Coffee Company (Barista), a local startup set up its coffee shops in India.
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