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Abstract

In September 2005, British coffee retail chain Costa Coffee, as part of its international expansion, launched its outlet in New Delhi, India. Costa became the first international coffee chain to start operations in India. Costa Coffee also plans to enter the wholesale coffee business in India and aims to open 300 outlets, through its franchises, in India by 2008. The significant growth in the number of coffee retail chains in India, owing to the changing lifestyle patterns of the Indian middle class families and an increase in their disposable income, has also attracted other foreign players such as Barnie, Starbucks and Gloria Jean. Also, Costa Coffee is expected to face stiff competition from domestic players including Cafe Coffee Day and Barista, who are embarking on a rapid expansion plan across the country. The case, while detailing the competitive landscape of coffee chains in India, provides the scope to discuss the rationale behind Costa Coffee''s entry into India, and the strategies adopted by it to strengthen its presence in the Indian coffee chain market.
Location:
Industry:
Other setting(s):
September 2005

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Abstract

In September 2005, British coffee retail chain Costa Coffee, as part of its international expansion, launched its outlet in New Delhi, India. Costa became the first international coffee chain to start operations in India. Costa Coffee also plans to enter the wholesale coffee business in India and aims to open 300 outlets, through its franchises, in India by 2008. The significant growth in the number of coffee retail chains in India, owing to the changing lifestyle patterns of the Indian middle class families and an increase in their disposable income, has also attracted other foreign players such as Barnie, Starbucks and Gloria Jean. Also, Costa Coffee is expected to face stiff competition from domestic players including Cafe Coffee Day and Barista, who are embarking on a rapid expansion plan across the country. The case, while detailing the competitive landscape of coffee chains in India, provides the scope to discuss the rationale behind Costa Coffee''s entry into India, and the strategies adopted by it to strengthen its presence in the Indian coffee chain market.

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Location:
Industry:
Other setting(s):
September 2005

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