Marketing the coffee culture

Introducing a coffee culture in a country largely dominated by tea drinkers isn't exactly everyone's cup of tea. But Barista Coffee Companys ambitious plan is to do just that - to make the coffee experience as ubiquitous as the daily cup of chai, says its CEO, Partha Dattagupta
The game plan Bringing about a coffee revolution by altering firmly ingrained tea consumption patterns is by no means an easy task. But when Barista set out to do it in February 2000, it dented the elitist perception that coffee held. This tradition continues. "Our strategy will clearly be to strengthen the Barista brand by enhancing and differentiating our guest experience. We will do this by understanding their needs at all touch points," says Dattagupta. He believes that the fundamental laws of innovating products and services will be integral to customer satisfaction. "Lifestyle change is a reality and the customer today is accustomed to international standards of services and expects the same in India," explains Dattagupta. So whether it is its tie-up with Worldspace Radio for music in its 50-odd cafes or with Planet M to open espresso corners, customer satisfaction is supreme. Barista has also entered into alliances with British Council, Rock Street Journal and Corner Bookstore for book reading sessions, music and film festivals. Technology has been the biggest support in its rapid expansion. While 25 to 30 per cent of its cafes are Wi-Fi enabled, the SAP interface at the outlets is through the Internet, which in turn plays a critical role in its Customer Relationship Management and Web-based activities. "We have been the first retail chain in India to integrate our stores with SAP retail at the backend. This will help us understand sales trends and sales mix better, plan leaner inventories, control COGS and wastage," he adds. Barista Crme, the lounge version of the brand that offers table service, comfort seating and plush interiors, is key to its growth plans. Another avenue that it is looking at to increase its revenues is merchandising to raise the current contribution to its total profits from 2.5 per cent to approximately seven per cent. "Leveraging the brand with mugs, T-shirts, even packaged coffee with brewing equipment, will be a key to growing the brand, Dattagupta opines. This year Barista will also kickstart outlets at select petrol pumps on the Delhi-Agra and DelhiChandigarh highway, a part of its strategic tie-up with Indian Oil Corporation. Demographically, India is a very young nation and the numbers in the 20-25 age groups is on the rise. And with higher disposable income and increase in malls and multiplexes the consumption, he feels, is bound to increase. Duttagupta believes chain restaurants will have the advantage of economies of scale and the benefit of being brands, but standalone restaurants will have their own place. After all, he concludes, letting private enterprise flourish is a necessity for the success of the hospitality sector.

The brand
Barista Coffee Company was established in February 2000 by Turner Morrison. In 2001, 35 per cent was bought by Tata Coffee and the rest by Sterling Infotech Group in 2004. The same year, it bought out the entire stake from Tata Coffee. Today, the brand along with its superior avatar - Barista Crme - is present in India, Sri Lanka and the Middle East and is perched at an enviable vantage level with over 140 outlets in 25 cities: Delhi, Gurgaon, Noida, Ghaziabad, Mumbai, Kolkata, Chennai, Pune, Bangalore, Chandigarh, Dehradun, Shimla, Mussorie, Jaipur, Kanpur, Lucknow, Mohali, Bhopal, Ahmedabad, Baroda, Bhubaneshwar, Indore, Coimbatore, Kochi and Hyderabad. It has also forayed into the international market with four outlets in Sri Lanka seven in the Middle

Q 1. What are the different positioning strategies of Barista? Q.2. Develop the suitable positioning strategy for Barista