Coffee Parlours in India-Hotting Up

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India ranks 5th among the top 10 countries of the world accounting for 3 % of the total world coffee production and exporting 80 % of the total produce. It is also the fifth largest coffee producer. Being a traditional tea consuming country, the average coffee consumption in India was quite low at 10 cups per person annually (Refer Table I)...

Background Note The Amalgamated Bean Coffee Trading Company (ABCTCL), the largest exporter of coffee in India, set up the country's first coffee bar, CCD in 1996. ABC which was also into cyber cafe business envisioned great business opportunity in the fusion of the two... Battle of the Brew With the increasing competition, the three players were trying to differentiate themselves on the basis of ambience, décor, service, price, quality, and customer relationships...

While actively planning to enter the coffee business in India, Barista realized that it wasn't only coffee that consumers were looking for. They were infact looking for a place to hang around comfortably. They wanted a place where they could be themselves, and do whatever they wanted such as reading a book, writing a letter, or simply chill out...

Barista adopted a three-pronged approach to expand its business. The first was to open espresso bars in various cities across the country. The second approach was to target institutional areas and the third approach was to target the home segment. In 2001, Barista entered into a strategic alliance with Tata Coffee...

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