Barista

BARISTA COFFEE COMPANY LIMITED Coffee Market in India: India produces 0.3 one million million tonnes of java per year, of which 80% gets exported to new(prenominal) countries. India has the second lowest coffee consumption in universe at 10 cups/per mortal per year, and also there is a huge disparity in the coffee consuming conventionalism between north and southmost India. The nontraditional Coffee origin was $120mn in 2002 and expect to pay off at 72% (from $120mn to $380mn in 2005) indicating a huge potential. in like expression industrial globalization has adjoin the disposable income of Indian population, and it is expect that people get out spend much of this income on solid forage and beverages in coming years, which will ultimately result into sum upd market size for coffee. Options: 1)Price Reduction: soon Barista positions itself as a premium product and charges higher prices as compared to its competitor. indeed prices should not be reduced further wh ich whitethorn be detrimental to the premium image. Rationale: Customers prefer Barista everywhere our competitors because of the incomparable coffee experience provided by its fine café concept. So it is best(predicate) to focus on making this coffee experience more(prenominal)(prenominal) unique and memorable by providing quality service, rather than vacillation prices.

Barista already has a loyal customer base (76% guide rate), who are frequent visitors to its coffee outlets; change in side may result into loss of this customer segments to competitors. The objective is to increase revenue per custom er from the present levels, thereby driving ! harvest-feast in sales. Hence a price reduction will clue to falling revenues per customer which may not be sustainable in the long run because of the appeals incurred in providing the Barista experience. The prices of products offered at kiosks and babe (shop in shops) could be reduced to obtain the product more competitive as the operating cost for these stores are reduced. 2)Product-Mix dodge: Currently the ratio of coffee and food in total...If you fate to get a full essay, roll it on our website: BestEssayCheap.com

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