International Journal of Mana gement Focus |1
A STUDY OF COMPETENCY OF STARBUCKS WITH CCD AT ENTRY LEVEL IN INDIA
(2012)
MADHVI
Assistant Professor, S.D Institute of Management and Technology, Jagadhari ,
CH. 1 INTRODUCTION
With the habit of tea/ coffee addiction among Indians, Starbucks (1971) a reputed and world’s
biggest coffee house has announced its business establishment in India with the Tata global beverages
limited through 50:50 joint venture including the planning of Investment. Of 400 crores Rs. and 50
outlets till Dec. end. India is the 5th largest producer coffee in the world. And Indians are having habit of
consuming tea/coffee 6 cups average. Tata Global Beverages Company is being known for providing
memorable tea consumption to Indian consumers. By this joint venture Tata coffee will become Asia’s
biggest trader in coffee growing. Now they have taken decision of joint venture for their strategic growth.
Target of Starbucks is to open more than 50 stores in India by the end of December 2012, now the question
arises that will Starbucks be able to establish its buss. In India and its identity after making china ,U.S and
many more country their slave, while Indians are very strongly involved with tea. Will it be very easy to
attract the Indians? Although there are so many coffee houses life Coasta, CCD, barista.CCD is having the
biggest market share in coffee industry that is largest coffee producer of beans in Asia.
CCD started its café buss in India in july11, 1996 brigade road, and Bangalore .Till now CCD has
established its buss around 1000 café all over the countries (2011). Till 2012 they are planning to achieve
target of 1500 outlets by serving 28 states in India. By this story image when CCD have already become
Icons and trend setter for youngsters. By this question can Starbucks enter in the market, capture its market
area. On the basis of related studies it has been revealed that Starbucks is famous for its reliability of
services, quality of product over the price, while others says that Starbucks is always being a trend setter,
and icons for youngsters. In this study we have tried to find out competency level of Starbucks with CCD.
CH. 2 OBJECTIVES AND SCOPE OF THE STUDY
The objective of the study is to know the market scenario of the Starbucks along the competency
level with CCD which is the largest Market share holder in coffee industry. Also to know on which basis
Starbucks can enter in mkt. What will be benefits to Tata coffee with the joint venture of Starbucks? There
are so many studies which have been conducted to study the comparison between two coffee houses, but
as we know that Starbucks is entering in Indian market after the FDI decision taken by the Government, so
this study will be helpful to know the future scenario of Starbucks with it’s already existed competitor
(CCD).
CH. 3 RESEARCH DESIGN AND DATA COLLECTION
A research is always done to solve a problem and to know something, which always needs some
supportive information .The research design for this article is formed in the way of descriptive design. The
data collected is secondary in nature and being collected from books, surveys, websites, and annual
reports.
Data Collection: Web Sites, surveys, journals, books Magazines, reports
CH. 4 FULFILLMENT OF OBJECTIVES TABLE 4.1 MENU DIFFERENCE
CCD
Starbucks
ESPRESSIO
BREWARD COFFEE
ESPRESSO AMERICANO
ESPRESSO ICED
COLD COFFEE
ESPRESSO HOT
ICE CREAM
FRAPPUCCINO LIGHT COFFE
KENYAN SAFARI
FRAPPUCCINO BLENDED COFFEE
CAPPUCCINO
DRINK EXTRA
PIZZA,SAMOSA,PUFF ETC.
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January –March’ 2013
TABLE 4.2 NUMBERS OF OUTLETS IN INDIA
NAME
PRESENT NO. OF OUTLETS
LOCATIONS
CCD
1300
640
STARBUCKS
15
02
Graph 4.3 Growth of stores (2012)
CCD
CCD Growth(2001-2014
CCD
2000
1319
950
0
14
78
110
1016
213
Year 2001 2002 2003 2005 2008 2010 2012 2014
Note: Growth of 2014 is measured on the basis of future plans of CCD outlets
Graph 4.4 Starbucks
Chart Title
starbucks
0
10241 12440 15011
3501 4709 5886 7225 8569
16680 20366
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2012
Interpretation: The above graph shows that growth of Starbucks is more than the CCD but point is that
CCD was established in 1996 and Starbucks was established in 1974.
TABLE 4.5 ACHIEVEMENTS (INCLUDING CSR)
CCD:
1. Winner of platinum, gold, silver, bronze medals at India barista championship.
2. Best exclusive brand retailer for the year 2007.
3. Best food service retailer for the year 2007.
4. ICICI excellent retailer award.
Starbucks: 1. 1.5 million $ to CARE.
2. Education and literacy program
3. Emergency relief fund.
International Journal of Mana gement Focus |3
TABLE 4.6 CUSTOMER’S PERCEPTION (RATING OF CCD SURVEYS 12 SEP. 2011)
Not
satisfied
Satisfied
Good
Very good
Excellent
AMBIENCE
4
4
40
28
24
LOCATION
0
20
28
48
04
4
16
16
52
12
PRICE
4
24
52
08
12
SERVICE OFFERED
16
16
20
44
04
QUALITY OF
PRODUCT
Interpretation: Mostly people were having the perception that ambience of CCD is good, location is very
good, they are also having very good image for quality of good served, customer are also having good
concept about the price. Where as they considered that services offered by CCD are very good.
4.7 SURVEY REPORT OF STARBUCKS
Sample size: 102 people
Female: 71
Male:
31
1Q. Involvement of Starbucks with the Environment and society.
Involvement of starbucks with
env. And society in %
Average
14%
PoorTerrible
2% 1%
Excellent
16%
Good
67%
Interpretation: According the surveys more of the sample size thinks that Starbucks co. is highly involved
and can cope up with the environment around it which can be proved a strength in future.
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January –March’ 2013
2Q. Is Starbucks socially responsible company ?
Is starbucks socially
Responsible
don’t know
13%
Yes
36%
may be
39%
no
12%
Interpretation: Mostly people are having perception that Starbucks Co. is responsible for the society.
3Q. RETURNS TO SOCIETY
Returns to community and society
yes
38%
not sure
49%
no
13%
Interpretation: People are having satisfactory perception that Starbucks give something in returns to the
society in terms of services of something else.
The above data and statements shows that people perception for CCD and Starbucks give birth to
the equal level of competency. Now it will focus on that CCD already having their image and brand settled
in Indian market. What are the factors in favor of Starbucks, on which basis Starbucks can survive in the
market.
International Journal of Mana gement Focus |5
CH 4.8 RATINGS COMPARISON OF CCD AND STARBUCKS
Rating out of 5
Chart Title
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
CCD
Starbucks
Basic points
Interpretation: The above graph shows that the all over rating of Starbucks is higher than the CCD,
whether in case of Quality of Product, Price, Availability or value for money. These things can be proved
supportive qualities of Starbucks, on which basis it can overtake the CCD market.
Ch. 5 Success of Starbucks
Factors are responsible on which basis Starbucks can survive in market. and can also be helpful for its
success are:

Joint venture with Tata coffee who will provide beans to Starbucks in India.

Mkt. exposure with help of Tata because Tata will allow it to open its outlets in Tata hotels,
complexes, and other premises.

Long term survival in Indian mkt.

Tata coffee will provide comfortable zone to Starbucks with regard to micro and macro
environment.

Good brand image.

Attraction of youngsters.

Already captured US ,USA, china, Europe ,now in India
CH. 6 BENEFITS TO TATA WITH JOINT VENTURE

Market Expansion

Tata will become No. 2 exporter of coffee and beans.

Esteem recognition

Generation of revenues

Diversification.
CH. 7 SUGGESTIONS
As the study reveals that Starbucks is having foreign exposure with regard to attracting the customer and
youngsters. There are some suggestions which can be helpful for the Starbucks to rule the market.

Proper usage of its brand image and strategy

Analyzing the Indian customer before entering in market.

Adopt the mixture of foreign and Indian culture.
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
January –March’ 2013
Take advantage of Tata’s goodwill.
CH. 7 CONCLUSION
With the good brand image and centre of attraction among youngsters, Starbucks is entering in
India, where average consumption of tea is 6 cups in India. In India’s largest population, number of
youngsters is more, which can be a favorable point for Starbucks, because Starbucks is a entertainment
destination for them where they sit together, chat together with the good ambience and standard towards
life. but we also know that CCD has already capture 60 % of market share on coffee house.CCD is not
taking Starbucks as in competitive way although they are in opinion that with the entry of Starbucks
awareness of coffee and its growth will be more .and India is still emerging market for coffee buss. Tata
coffee will be the biggest supporter for survival of Starbucks , as the time pass on after some time we will
see Starbucks as youth icon, or eliminated from the market, depends on how Starbucks accepting the
environment of India and with its culture.
CH. 8 REFERENCES:
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