2. Slide 2 of 6
Strength
•Affordable
•High volume
business & Minimum
expenses
•Low operating Cost
Weakness
•Less variety
•Quality lower than
main shop
•Dependency on
machines
performance
Opportunities
•Growing IT Industry
in India
•Shopping malls and
multiplexes
•Airports & Railway
stations
Threats
•Local Players
•High Competition
•High Cost
Kiosks - Potential for a booming market in India
Location – Quite popular at places like airports, railway stations
Customer Base – Preferred among young generation as affordable
Huge margins - Attracts mass consumers (High volume business)
SWOT of Coffee Kiosk Market
3. Parameters Global Market Indian Market
Coffee retail market size Over $ 80 billion $ 200 million Approx
Growth rate 7 to 10 % 15 to 20 percent
Kiosk market Key players
Starbucks
Dunking donuts
Mcdonalds McCafe
Café Day Express (CDX)
Costa Coffee
Starbucks
Café Coffee Day
•1438 outlets
Costa Coffee
•100 outlets
Starbucks
•15 Outlets
Competing Brands in India
Slide 3 of 6
4. Competitors for Kiosk Market
Characteristics Starbucks Café Day Express (CDX) Costa Coffee
Geographic
Region Indian Market Indian Market Indian Market
City Urban Cities Urban, Tier 1 & Tier 2 Cities Urban Cities
Demographic
Age 25 to 65 years 18 to 40 years 22 to 50 years
Gender Both male and Female Both male and Female
Both male and
Female
Family lifecycle stage Mostly Married Mostly Single and Young Single, Married
Economic condition Above Rs. 40000/month Above Rs. 20000/month
Above Rs.
25000/month
Psychographic
Socio-economic Upper middle class Whole Middle class Upper middle class
Lifestyle
Corporates, Coffee
variety lovers,
International coffee lovers
College students, IT sector,
Young crowd
Students, It sector,
Corporate
Behavioral
Frequency Occasional Regular Regular
Benefits High Quality, Variety Fast service, economical High quality
Loyalty Strong Very High Medium
Attitude Positive Positive Positive
Slide 4 of 6
5. Strategy Description
Competitive Edge
•High quality product at a competitive price
•Convenience of service
Marketing Strategy
•Locations at very high visibility and ease of access
•High traffic commuter routes and close to shopping
facilities
Marketing Programs
•Distinctive Logo
•Advertising and Promotion
•Event Sponsoring
Business Proposition Description
Location Magarpatta City, Hinje wadi, Kalyani Nagar, Viman Nagar –
High density of Upper Middle class
Product range Rs 25 (Simple Coffee) to Rs 150 (Special Order)
Initial Investments Each Kiosk Cost = Rs 5,00,000
Break even estimated = Less than 6 months
No of Outlets in Pune = 5 Nos
Slide 5 of 6
6. Points Remark
Feasibility
•Investment is low (Rs 5,00,000 /Kiosk)
•ROI: Less than 6 months
•Increase in market presence and market share
Market Potential
•Growing IT Sector
•Improving Standard of living in Pune
•Income level is high in Pune compared to other Tier 1
cities
•Airport and Railway station
•Shopping Malls and multiplexes
Revenue growth
•Attracts mass consumer
•High Margins
Future Scope
•Extension possible to outskirt areas like- Pimpri,
Chinchwad, Kharadi
•Direct hit to Top line of company profits
•Advertising at low cost
Slide 6 of 6
