Product Life Cycle
Globally, the Frappuccino
sub-category is quite mature with a dedicated fan following to boast of.
However, since Tata Starbucks has introduced the product to Indian consumers
only in October 2012, the Frappuccino in general and the Java Chip variant
in particular will take some time to penetrate the market.
A first time customer is more
likely to try the regular coffee offerings that Tata Starbucks has to offer.
Chances of experimenting with the Frappuccino are higher on repeat
visits. In other geographies, the Frappuccino sees a minor dip in sales during
winter. However, such a phenomenon may not be expected in a hot and humid country
like ours.
Industry Life Cycle
India's tryst with stylized cafes
started in 1996 when the first Cafe Coffee Day store was opened on Brigade
Road, Bangalore. Interestingly, this store also happens to be the first
cyercafe in the country, providing internet access on a pay-as-you-go basis.
Another early entrant in the coffee space was Barista which launched its first
store in New Delhi in early 2000.
Over the years, the industry has
evolved leading to some sea changes in market competition. Barista has lost
considerable market share due to its inability to create a pan-India footprint.
Cafe Coffee Day has gone ahead and created a young image around itself by
sticking to low cost menu options that appeal to the 15-24 age group. Costa
Coffee is relatively late entrant but has managed to create a niche for itself
in the premium coffee segment. The same holds true for Coffee Bean & Tea
Leaf.
With the entry of Tata Starbucks
into the Indian market, a slew of changes are expected to hit the industry.
With growing demand for premium coffee and fewer points of parity among brands,
it would be interesting to see how the coffee bar industry in India evolves
further.
Brand Life Cycle
As a brand, Starbucks needs no
introduction. It is interesting to note that in 2011, Starbucks decided to stop
using its name which was a part of its logo thus far. With a trusted partner
like Tata Global Beverages, the union is nothing short of a winning team. What
remains to be seen is how this collaboration of two giants manages to sustain
its India operations in the face of stiff competition from local brands.
The Java Chip Frappuccino will
also continue to evolve as a distinct brand as more and more Indians try and
experiment with the different customization options that Starbucks has to
offer.
