Abstract:
Barista has emerged as a leading coffee chain in India. It was the first
to sense the latent need of Indian consumers wanting not just a product but a
complete coffee experience. The case describes the key factors contributing to
the growth of Barista. It discusses the dilemma faced by the company on
adopting the franchise model to further expand its chains of café in the
country. Its top management has to take important decisions related to the
pricing and product mix.
Introduction to Case:
Barista
Coffee Company Limited operates a chain of espresso bars and cafes. The company
offers various beverages, including hot and cold coffees, mocktails, iced and
hot teas, drinks, hot chocolates and steamers, ice cream blended coffees, fruit
smoothies, and granitas and sparkles. It also provides food products, such as
sandwiches, snacks, and desserts. In addition, the company offers various
merchandise, which include sippers, mugs, cashew and fig cookie tins, business
card holders, coffee makers, jars, steel key chains, plungers, steel coasters,
and gift vouchers. Barista Coffee Company Limited was founded in 2000 and is
based in Noida, India.
In the
case there is a deep discussion about the barista is presented Barista was started to
give the youth an altogether a different experience. Outlets were designed for the youngsters in the age
group of 15-29. Barista’s focus was to
fill up the gap between coffee vending machine and the expensive 5 star coffee
shops. Barista had a tie-up with Elle18 and launched lipsticks after the name
of its beverages. It tied up with Tata Teleservices for offering Internet to
the consumers. The company started
franchising the parlors as internal resources were not enough. In April 2003, prices at barista were cut down by
25-30% In October 2003, 10 stores were shut down.
Problem Identification:
In the case the Main Problem which is identifiable & discusses the
dilemma faced by the company on adopting the franchise model to further expand
its chains of café in the country. Its top management has to take important
decisions related to the pricing and product mix.
Proposed Question:
Ques1. Is Barista just another fad or a revolution?
Ques3. Has Barista been a victim of Expansion
versus Quality?
Solution:
After
Analyzing whole of the case it is analyzed that Barista is just another fad and
not a revolution. They are confused about their
product positioning as well as the target audience. Their brand image is not strong enough to make it as a
revolution. People just assume it to
be any other coffee serving place.
Yes, according to me it has
failed. Barista’s main focus remain on expansion rather than
focus on the core and the basic requirements. It does not focus on correct target market, ad positioning, rather it
focuses on expansion. It should concentrate more on quality, advertising, and
innovative tastes of coffee. It should do proper
research to select the market where the parlor is to be opened.
Learning in the case:
The
case gives give the good learning about strategic marketing and it also describes the key factors contributing to the growth of Barista there
is also a good learning the important decisions related to the pricing and
product mix and how it affects the entire company strategies.
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Thank You
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