A project on

“A Comparative Study on consumers’ Preferences towards

Café Coffee Day & TATA Starbucks Pvt.Ltd. among youth in Vadodara city”

Submitted to:

BBA PROGRAMME

FACULTY OF COMMERCE

THE MAHARAJA SAYAJIRAO UNIVERSITY BARODA

SUBMITTED BY:

Ms Dhvani p. Parmar
Roll Number: 618106 (Div.3)
TY B.B.A.

Under the guidance

Ms. Kruti shah

Department of Commerce and Business Management,

Faculty of Commerce
The Maharaja Sayajirao University of Baroda
 ACKNOWLEDGMENT
There was the time when words can’t express gratefulness. In spite of the fact that
the appreciation to the people without whom my learning would not have been
conceivable, can’t express in words. I have attempted my best to thank all of them.
I also want to express gratitude toward workforce of business, BBA program for
consolidating this venture contemplate in course and allowing me a chance to have
involvement of expert world through it.

I accept this open door to thank every single one, who laid their commitment in the
creation of this project. It was an advancing background from figuring out how to
lead the exploration and to assemble the work.

Above else, I offer my earnest thanks to my guide Ms. Kruti shah for her profitable
direction has been satisfying and advancing. Her study inspiration and confidence
in my work and supervise me every day to attempt for better. I genuinely
acknowledge for demonstrating her understand towards me.

It is my most profound joy to thank every one of the respondents who took out
time from their calendar to top off the survey and have shared their perspectives
with respect to the variable which holds an imperative job in my investigation.
They have been extremely straight to the point as they would see it which makes
my exploration true, unprejudiced and thoroughly reasonable in nature.

I would also like to thank my folks they were continually supporting me and
empowering me with their all the best.
 CERTIFICATE OF ORIGINALITY

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Ms. Dhvani Parmar has successfully completed the project
work titled “A Comparative Study on consumers’ Preferences towards
Café Coffee Day & TATA Starbucks Pvt.Ltd. among youth in Vadodara city”
In partial fulfillment of requirement as a part of 6th semester curriculum to the BBA
programme, Faculty of commerce. The Maharaja Sayajirao University of
Vadodara.

This project is the record of authentic work carried out during the Academic year
(2017-2020)

Ms. Kruti Shah

Project Guide

Faculty of commerce

M.S. University of Vadodara

 DECLARATION

I, DHVANI PARMAR hereby declare that the project entitled “A Comparative

Study on consumers’ Preferences towards Café Coffee Day & TATA Starbucks
Pvt.Ltd. among youth in Vadodara city” has been personally done by me under the
guidance of Ms Kruti shah in partial fulfillment of graduation program during
academic year 2017-2020. All the data represented in this project is true and
correct to the best of my knowledge and belief. This work has not been submitted
for any other degree/diploma exam elsewhere.

Dhvani parmar

Third year BBA

Roll no: 618106

Faculty of commerce

The maharaja Sayajirao University Baroda

 EXECUTIVE SUMMARY

In this busy world to get some refreshing coffee and snacks café’s are the most
refreshing place to visit and are the best place for hangouts with friends or
colleagues.

The project is mainly based on the “A Comparative Study on consumers’

Preferences towards Café Coffee Day & TATA Starbucks Pvt.Ltd. among
youth in Vadodara city”. A comparative analysis is for young age student by
conducting a survey on it. The result of which are presented using bar graph, charts
and diagrams. Core objective to make a comparative study on youth preference
towards Café coffee day and Starbucks.

As also I have observed that there are lot of area in which both the outlets needs a
lot of improvement in certain attributes like service, offers discounts, Varity of
products, because customer find any inconvenience in any way they might lose
their customer. I would like to suggest for café’s that customer are more influenced
by advertisements, offer’s and Variety of products must have to concentrate on this
things.
 TABLE OF COTENTS

Sr.No. CONTENT Page

number

1 Chapter : 1 Introduction 1-6

2 Chapter : 2 Company profile 7-28

3 Chapter : 3 Review of Literature 29-31

4 Chapter : 4 Research Methodology 32-36

5 Chapter : 5 Data Analysis and Interpretation 37-56

6 Chapter : 6 Conclusion, limitation & suggestion. 57-61

7 Bibliography 62
 CHAPTER 1

INTRODUCTION
Coffee can help People feel less tired and increase energy levels. That's because it
contains a stimulant called caffeine — the most commonly consumed psychoactive
substance in the world. After you drink coffee, the caffeine is absorbed into your
bloodstream. From there, it travels to your brain.

The history of coffee dates back to the 15th century, and possibly earlier with a
number of reports and legends surrounding its first use. The native
(undomesticated) origin of coffee beans is from Ethiopia

Coffee is a brewed drink prepared from roasted coffee beans, the seeds

of berries from certain coffee species. The genus coffee is native to tropical
Africa (specifically having its origin in Ethiopia and Sundan) and Reunion in the
Indian Ocean. Coffee plants are now cultivated in over 70 countries primarily in
the equatorial regions of the Americas, Southeast Asia, Indian subcontinent, and
Africa. The two most commonly grown are coffee arabica and coffee robusta.
Once ripe, coffee berries are picked, processed, and dried. Dried coffee seeds
(referred to as "beans") are roasted to varying degrees, depending on the desired
flavor. Roasted beans are ground and then brewed with near-boiling water to
produce the beverage known as coffee.

Coffee is darkly colored, bitter, and slightly acidic and has a stimulating effect in

humans, primarily due to its caffeine content. It is one of the most popular drinks
in the world, and it can be prepared and presented in a variety of ways
(e.g., espresso, French Press, café Latte). It is usually served hot, although ice
coffee is a popular alternative.

Cultivation of coffee

The traditional method of planting coffee is to place 20 seeds in each hole at the
beginning of the rainy season. This method loses about 50% of the seeds' potential,
as about half fail to sprout. A more effective process of growing coffee, used in
Brazil, is to raise seedlings in nurseries that are then planted outside at six to
twelve months. Coffee is often intercropped with food crops, such as corn, beans,
or rice during the first few years of cultivation as farmers become familiar with its
requirements. Coffee plants grow within a defined area between the tropics
of cancer and Capricorn termed the bean belt or coffee belt.

1
The history (and origin) of coffee in India dates back to around 1600 AD, when
the Indian Sufi saint, went on a pilgrimage to Mecca. He made his 'legendary'
journey from Mocha, a port city of Yemen that overlooks the Red Sea, to his
homeland

Coffee production in India is dominated in the hill tracts of South Indian states,
with Karnataka accounting for 71%, followed by Kerala with 21% and Tamil Nadu
(5% of overall production with 8,200 tonnes). Indian coffee is said to be the finest
coffee grown in the shade rather than direct sunlight anywhere in the world.
There are about 250,000 coffee growers in the country; 98% of them are small
growers. As of 2009, Indian coffee made up just 4.5% of the global production.
Almost 80% of Indian coffee is exported 70% is bound for Germany, Russia,
Spain, Belgium, Slovenia, United States, Japan, Greece, Netherlands and France.
Italy accounts for 29% of the exports. Most of the export is shipped through
the Suez Canal.
Coffee is grown in three regions of India with Karnataka, Kerala and Tamil Nadu
forming the traditional coffee growing region, followed by the new areas
developed in the non-traditional areas of Andhra Pradesh and Orissa in the eastern
coast of the country and with a third region comprising the states of Assam,
Manipur, Meghalaya, Mizoram, Tripura, Nagaland and Arunachal
Pradesh of Northeastern India, popularly known as “Seven Sister States of India".
Indian coffee, grown mostly in southern states under monsoon rainfall conditions,
is also termed as “Indian monsoon coffee". Its flavour is defined as: "The best
Indian coffee reaches the flavour characteristics of Pacific coffees, but at its worst
it is simply bland and uninspiring”. The two well known species of coffee grown
are the Arabica and Robusta. The first variety that was introduced in the Baba
Budangiri hill ranges of Karnataka in the 17th century was marketed over the years
under the brand names of Kent.

2
Indian coffee growing states

Major players in the Indian café coffee industries are:

Companies dominating Indian coffee retail chain market share include

 Café Coffee Day
 Barista
 Starbucks
 Costa Café and others.

3
India’s forecast coffee consumption 2019

Even if India is still a tea country, it’s growing trend shows how India might
become one of the world’s largest coffee producing countries

A legend says that many coffee growing farmers have never tasted coffee in their
lives but they consider coffee just another crop they sell to the west.  In the past, a
data analysis showed that roughly two thirds of India’s population didn’t drink
coffee.

Even if the last decade increasing coffee demand by 40% is indicative of a growth
in coffee culture, India’s coffee consumption stands at 0.03 kg (forecast in 2019).

Revenue in the Coffee segment is forecast to be around US $423m in 2019 with a

market that is expected to grow annually by 7.7% (CAGR 2019-2023).
Coffee consumption is mostly concentrated in the southern states of Tamil Nadu
(60%) and Karnataka (25 %).

4
History of Indian Coffee House

The first Indian Coffee House started on 7 August 1958 in Thalasserry.

Coffee had been grown in India by native Indians since the 16th century. However,
the concept of coffee houses began to gain a little popularity in the 18th century
in Chennai (Madras state) and Calcutta. However, as part of the racial
discrimination policy of the English rulers, native Indians were not allowed into
these coffee houses, which were mainly During the late 1890s, the idea of an
"India coffee house" chain was formed.
The India Coffee House chain was started by the Coffee Committee in 1936, when
the first outlet was opened in Bombay. In the course of the 1940s there were nearly
50 Coffee Houses all over British India. Due to a change in the policy in the mid
1950s, the Board decided to close down the Coffee Houses. Encouraged by
the communist leader A. K. Gopalan(AKG), the workers of the Coffee Board
began a movement and compelled the Coffee Board to agree to handover the
outlets to the workers who then formed Indian Coffee Workers' Co-operatives and
renamed the network as Indian Coffee House. A co-operative began
in Bangalore on 19 August 1957, and one was established in Delhi on 27
December 1957. Later Bellary and Madras (Chennai) Societies were separated
from their mother societies. In October 2018, Indian Coffee House has its 8th
branch of Jabalpur.

5
Growth of the Café Industry in India

The coffee market in India has been growing due to the demand for Ready to Drink
Coffee and has become a part of an individual’s daily consumption basket. Due to
Changing cultures, consumers are becoming aware of domestic and foreign brands,
which are boosting the consumption levels.

The export promotion schemes and other subsidies by the GOI, and increasing
trend of eating out coupled with the rising share of young population has driven the
market. Well-established coffee shop chains, such as Cafe Coffee Day (CCD) and
Barista, enhanced their pan-India presence in the latter part of the review period. In
2010, Cafe Coffee Day and Barista had 970 and 200 stores, respectively, and they
aim to continue expanding in the next few years. Meanwhile, several relatively
new players, such as Costa Coffee, Coffee Bean, Gloria Jean’s and Java Coffee,
are trying to establish a footing in Indian coffee retailing. Both these factors drove
on-trade consumption of fresh coffee beans in 2010, with volumes growing by
12%. On-trade sales have emerged as the primary sales channel for fresh coffee
beans, in the absence of any appreciable off-trade consumption.

In 2010, the average bill amount at coffee outlet was between rupees 135 and 150.
This is expected to rise to rupees 245 by 2016. With customers paying significant
amount for their coffees, they are also expecting a lot from an outlet. Factors such
as menu, ambience, service and brand name are playing an important role while
choosing a coffee outlet.

Indian Coffee Chains market is quite mature which is evident from the fact that
Café Coffee Day alone maintains more than 1000 Café’s in 141 cities in India.
This forms the main focus of this project.

6
 CHAPTER 2

COMPANY PROFILE

7
History of the company, Café Coffee Day

Café Coffee Day Global Limited Company is a Chikkamagaluru based business

which grows coffee in its own estates of 20,000 acres. It is the largest producer of
coffee arabica beans in Asia, exporting to various countries including the U.S.,
Europe, and Japan.
V. G. Siddhartha started the café chain in 1996 when he incorporated Coffee Day
Global, which is the parent of the Coffee Day chain. The first CCD outlet was set
up on July 11, 1996, at Brigade Road, Bangalore, Karnataka. It rapidly expanded
to other cities in India, with more than 1000 cafés open across the nation by 2011.
In 2010, it was announced that a consortium led by Kohlberg kravis roberts would
invest ₹10 billion (US$140 million) in Coffee Day Resorts, owned by the
company. The same year, the logo was changed to the current logo, which the
company stated was to showcase the chain as a place to talk. This was done with
major changes in the layout of the stores, including the addition of lounges and a
total revamp of the interiors.
Café Coffee Day (CCD) is an Indian cafe chain. It is a subsidiary of coffee day
Enterprises Limited. Coffee day serves 1.8 billion cups of coffee annually in six
countries.
As of 2018, the company had 1,722 café outlets in over 200 cities of India. Cafe
Coffee Day has also expanded outside India with its outlets in Austria (Vienna),
Czech Republic, Egypt and Nepal.

8
Café Coffee Day operates a retail chain of café in India. Its menu includes hot
coffee, international coffee, cold coffee, hot chocolate, cool drinks, cool refreshers,
soda, hot coffee, ice creams, coffee , powder coffee, quick bites, sundaes, and tea.. It
provides youth magazines and merchandise, including caps, T-shirts, bags, mugs,
coffee filters, mints, coffee powders, wafers, and almond biscuits
Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan.
In the calendar year 2000, Coffee Day exported more than 27000 tonnes of coffee
valued at US$ 60 m to these countries and, for the second time in its short career of 7
years retained the position as the largest coffee exporter of India.
On 29 July 2019, Siddhartha went missing, and his body was found in the
Nethravathi river backwaters two days later. A letter, assumed to be written by
Siddhartha addressing the board of directors and staff, was made public in which
he takes responsibility for not creating a profitable business model.
In September 2019, the company appointed auditing firm Ernst and Young to
scrutinize their books of accounts. They also indicated the auditor will also look
into circumstances of the last letter written by the founder and the points he made
in it.
In March 2020, Coffee Day Enterprises Limited announced that it has reached an
agreement to sell Global Village Technology Park, a 90-acre tech park on the
outskirts of Bengaluru, for a total consideration of ₹ 27 billion for repaying the
debt of Cafe Coffee Day’s associate firms and their promoters.

Outlets
As of 2019, the company had 1,752 café outlets in over 243 cities of India. Cafe
Coffee Day has also expanded outside India with its outlets in Austria (Vienna),
Czech Republic, Egypt and Nepal.

9
About The company

Cafe Coffee Day Corporate Mission Statement

The first Café Coffee Day outlet was set up on July 11, 1996, at Brigade Road,
Bangalore; Karnataka. It was founded by V.G. Siddhartha. “To be the best Cafe chain
by offering a world class coffee experience at affordable price.”

Café Coffee Day Corporate Vision Statement

 Vision statement “To be the only office for dialogue over a cup of coffee”

PRODUCTS

Café Coffee Day product mix constitutes a wide range of products like
samosa, biryani, masala sandwich, tikka sandwich etc. The best selling
item in summer is frappe, which is coffee and ice cream blended
together. The young people favor it. In winter it is cappuccino. Their
merchandising includes funky stuff like t-shirts, caps etc.

Serving Size
The serving size of a product is a measure, not only of quantity, but also of value
for money.

Product serving size

10
Hot Coffee 210 ml
Cold Coffee 350 ml
Smoothies 350 ml
Granitas 350 ml

BRAND IMAGE

Cafe Coffee Day is much loved and trusted. Cafe Coffee Day has been ranked
No.2 in Brand Equity, India's most trusted list of food services brands. Cafe Coffee
is at position 29 in so far as service brands in general. Cafe Coffee Day is up four
positions since last year.

BRAND PROMOTION

They had started print campaign at the end of 2012, branding in movie and Tv
serials

There sales promotion Actives

 Combo Deal
 Happy Hour
 Privilege cards
 Redeemable coupons

They promote through interactive media and also do tie up lot of youth brands

AMBIANCE

Ambiance was found out to be the strongest determinant of customer satisfaction.

Setting in mood or ambiance plays an important role in customer satisfaction as
well as retention. About 50% respondent selected Café Coffee Day over ather café
store because of the ambiance. In the ambiance of store, customers are in direct
contact of service offered by store. Lounge café combines the style and luxury of a
lounge with the lively ambiance and comfort of a café. Café Coffee Day ambiance

11
is considered as relaxing place and good place to meet with friends among the
consumers. Customers also look towards other factors such as the store, music,
light and temperature etc. The way table are placed stores also has an effect on
consumers mind.

PROCESSING TIME

Processing time for delivery of service has become dominant factor in determining
customer satisfaction. In fast moving world, each customer is in a hurry. Each one
wants their order as soon as possible. Thus, in fast food business, delivery time
became very important factor in delivering services. Customers prefer Café Coffee
Day because of lower order delivery time compare to other stores. More than 60%
of respondent selected Café Coffee Day because of faster order delivery time.
Lower order processing time also helps in clearing service queues faster.

STAFFs BEHAVIOUR

Staff behavior is also critical factor in determining customer satisfaction. While

placing the order in the café, customer is in direct contact with the staff. The way,
person behind the customer talks to customer, influence their perception about the
store and the brand. Café Coffee Day’s staff members were reported polite and
friendly. They were also able to give good suggestions to customers when they
requested. Thus, friendliness nature of frontline workers increased the satisfaction
of customers.

VARIETY

Most consumers always wanted to try different thing. They don’t prefer to stick
with one product especially in food industry. Variety offered by offered by store
influence the satisfaction level of customer. As per customer’s interviewed, high
variety give them a wide range for selecting product they want to consume, which
in turn increased their satisfaction level. Café coffee Day has wide range for
coffee. Therefore, many consumers prefer it as they get what they want in Café
Coffee Day.

QUALITY

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Quality of product that customers consume is important. Customers want high
quality each time. For store like Café Coffee Day, customers expect same level of
quality each time. As per customers, Café Coffee Day provides fresh and tasty
coffee each time they go in.

PRICE

Considering that Café Coffee Day knows its major customer lies in the bracket of
15- 29, it has tried to derive a policy whereby it can satisfy all its customers. The
price for a cup of coffee ranges from Rs.45 to Rs 80. From the time it first started
its operations, there has been only minor changes in the pricing policy of Café
Coffee Day. The changes have been more due to the government taxes than
anything else

PLACE

The strategy CCD has adapted is to place a cafe in every possible location where
some business can be generated. This is a prime factor in determining the success
of retail chain. Café Coffee Day looks to cater to their target market with
strategically located outlets. Their outlets are generally located in High Street/
Family Entertainment Centers, gas stations, near Colleges etc.

PROMOTION

Café Coffee Day involved in all the areas of serious consumer passion like:
Television: Café Coffee Day held a contest around a very popular programmed on
Zee English called Friends. All the six lead characters are shown often visiting a
coffee shop. They have tied up with Channel [V]‘s Get Gorgeous contest.

Tie-ups: Besides that Café Coffee Day also tie up lot of the youth brands. So they
have a contest going on with Levis, another one with Scooty, Liril, latest one with
Airtel Friends.

Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon
Na Sales Promotion: Café Coffee Day uses special ‘Café Citizen Card’ for
rewarding Café Coffee Day’s customers.
It is a loyalty program to gain new customers and retain the existing ones.

13
PEOPLE

Motivation and personal skill are laid emphasize upon. Their employees are like
friend to the customer but at the same time they know about the international
standards of hygiene.

SWOT Analysis
14
STRENGTHS

 Largest retail chain of cafes

 ISO 9002 certified company
 Quality, service and Taste
 Youth oriented brand
 Reduction in cost (own production)
 USP of brand-Highly affordable brand
 First mover advantage
 Excellent brand name and visibility

WEAKNESS

 Lack of individual attention to loyal customers

 Unavailability of fresh food
 Market penetration of coffee bars is 5%
 Weak brand image and lacks strength to maintain brand loyalty.
 Poor ambience and décor (Prime space-Advertising and promotions)
 Wrong site selection-Losses

OPPORTUNITY

 Fastest growing industries in Asia

 Merchandising
 Tie ups with other companies for promotion
 Tapping smaller market
 Cheaper varieties of coffee
 Preferred for informal meetings.

THREAT

15
  Competition with other coffee café like Barista, Starbucks, Costa
coffee, Coffee mochas & Gloria Jeans
 Presence of other ‘Hangout’ locations
 Unorganized market
 Dependent on government commodity rates

History of the company, Starbucks

16
In January 2011, Starbucks Corporation and Tata coffee announced plans to begin
opening Starbucks locations in India. Despite a false start in 2007, in January 2012
Starbucks finally announced a 50-50 joint venture with Tata global beverages
called Tata Starbucks Ltd. which would own and operate outlets branded
"Starbucks a Tata Alliance". Starbucks had previously attempted to enter the
Indian market in 2007. Starbucks did not cite any reason for the withdrawal.

On 19 October 2012, Starbucks opened its first store in India, measuring 4,500 sq
ft in Elphinstone Building, Horniman Circle, and Mumbai. Starbucks opened its
first roasting and packaging plant to supply its Indian outlets in Coorg, Karnataka
in 2013.
Starbucks expanded its presence to Delhi on 24 January 2013 by opening 2 outlets
at Terminal III of the Indira Gandhi International Airport and later one
in Connaught Place. Tata Global Beverages announced in 2013 that they would
have 50 locations by the end of the year with an investment of ₹4 billion.
However, the company would open its 50th store in India only on 8 July 2014.
The third city of India to get a Starbucks outlet was Pune where the company
opened an outlet at Koregaon Park on 8 September 2013. Starbucks opened a
3,000-square-foot flagship store at Koramangala, Bangalore on 22 November
2013, making it the fourth city to have an outlet.
Starbucks opened the largest coffee-forward store in the country at Vittal Mallya
Road, Bangalore on 18 March 2019. The store measures 3,000 sq ft, and is
Starbucks' 140th outlet in India. Tata Starbucks opened 25 stores in 2017-18 and
30 in the 2018–19 fiscal years.

17
On 21 February 2019, CEO Navin Gurnaney announced that Tata Starbucks would
transition to using only compostable and recyclable packaging materials across all
its stores from June 2020.
Starbucks announced its entry into the Gujarat market on 7 August 2019. The
company simultaneously opened five stores in Surat and Ahmedabad the next day.
Starbucks' flagship store in the state is located at Prahlad Nagar, Ahemdabad and
offers more vegetarian options than other Indian outlets. CEO Navin Gurnaney
stated that the company would open more than 30 stores in the 2019-20 fiscal
years, of which 11 had already opened.
The company opened its 170th outlet and the first in Vadodara in December
2019.

Starbucks Coffee’s Corporate Mission Statement

18
 Starbucks Coffee’s corporate mission is “to inspire and nurture the human spirit
– one person, one cup and one neighborhood at a time.” This mission statement
reflects what the company does to keep its business running. It is clear that target
consumers are given emphasis in this corporate mission. The following
components of Starbucks’s corporate mission statement influence strategic
management in growing the business:

1. Inspire and nurture the human spirit

2. One person, one cup and one neighborhood at a time

Starbucks Coffee “inspires and nurtures the human spirit,” starting with its
employees. To address this component of its mission statement, the company
maintains a small company culture, where rapport and warmth are important. In
this way, the corporate mission is a direct determinant of Starbucks Coffee’s
corporate culture. In addition, the same component of the company’s mission
statement pertains to customers’ experience. The business extends its warm and
small company culture to its customers. For example, employees’ and customers’
first names are used at Starbucks cafés. Also, the design of these coffeehouses aims
for warmth and coziness. These approaches inspire and nurture meaningful and
warm relationships involving employees and customers. Another factor to consider
in Starbucks Coffee’s corporate mission statement is that it indicates a personal
and gradual approach. The “one person, one cup and one neighborhood at a time”
component shows that the company ensures meaningful impact on every employee
and customer. In parallel, this part of the corporate mission means that Starbucks
Coffee plans to continually and gradually grow the business, one place or
neighborhood at a time.

Starbucks Coffee’s Corporate Vision Statement

Starbucks Coffee’s corporate vision is “to establish Starbucks as the premier

purveyor of the finest coffee in the world while maintaining our
uncompromising principles while we grow.” This corporate vision statement has
the following components relevant to the business:

1. Premier purveyance
2. Finest coffee in the world
3. Uncompromising principles
4. Growth

19
 Aiming to be the premier purveyor means that Starbucks Coffee wants to
achieve leadership in providing its products, especially coffee of the best
quality. The company achieves this component of its vision statement by
continuing its multinational expansion as one of the largest coffeehouses and
coffee companies in the world. However, it is not yet clear if Starbucks
effectively addresses the “finest coffee in the world” component of its corporate
vision. Analysts and critics point out that coffee from McDonald’s or Dunkin’
Donuts may be better than Starbucks coffee in some aspects. Nonetheless,
Starbucks addresses the “uncompromising principles” component of its
corporate vision statement. These principles include ethical conduct and a warm
culture. The company maintains these principles, especially during Howard
Schultz’s leadership as CEO. Also, the company satisfies the “growth”
component of its vision statement, as manifested in the continuing global
expansion of the business through new Starbucks locations. The company now
has more than 28,000 locations around the world. Thus, the business effectively
addresses its corporate vision.

STARBUCKS COMPANY PROFILE

20
Our story began in 1971. Back then we were a roaster and retailer of whole bean
and ground coffee, tea and spices with a single store in Seattle’s Pike Place
Market.

Today, we are privileged to connect with millions of customers every day with
exceptional products and more than 30,000 retail stores in 80 markets.

Folklore

Starbucks is named after the first mate in Herman Melville’s Moby Dick. Our logo
is also inspired by the sea – featuring a twin-tailed siren from Greek mythology.

Coffee

We’ve always believed in serving the best coffee possible. It's our goal for all of
our coffee to be grown under the highest standards of quality, using ethical
sourcing practices. Our coffee buyers personally travel to coffee farms in Latin
America, Africa and Asia to select high quality beans. And our master roasters
bring out the balance and rich flavor of the beans through the signature Starbucks
Roast.

Stores

Our stores are a neighborhood gathering place for meeting friends and family. Our
customers enjoy quality service, an inviting atmosphere and an exceptional
beverage.

Total stores: 30,000 across 80 markets (as of June 30, 2019)

Partner

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We offer some of the finest coffees in the world, grown, prepared and served by
the finest people. Our employees, who we call partners, are at the heart of the
Starbucks Experience.

We believe in treating our partners with respect and dignity. We are proud to offer
several landmark programs for our partners, including comprehensive health
coverage for eligible full- and part-time partners, access to full college tuition
coverage through the Starbucks College Achievement Plan, and equity in the
company through Bean Stock.

Product

Starbucks offers a range of exceptional products that customers enjoy in our stores,
at home, and on the go.

 Coffee: More than 30 blends and single-origin premium coffees.

 Handcrafted Beverages: Fresh-brewed coffee, hot and iced espresso
beverages, Iced Coffee, Cold Brew, Nitro, Frappuccino coffee and non-
coffee blended beverages, Starbucks Refreshers beverages, and Teavana
teas.
 Merchandise: Coffee- and tea-brewing equipment, mugs and accessories,
packaged goods, books and gifts.
 Fresh Food: Baked pastries, cold and hot sandwiches, salads, salad and
grain bowls, oatmeal, yogurt parfaits and fruit cups.
 Consumer products available where groceries are sold
 Coffee and Tea: Whole bean and ground coffee (Starbucks and Seattle’s
Best Coffee brands), Starbucks VIA Instant, Starbucks espresso capsules
available on the Espresso and Nescafe Dolce Gusto systems, Starbucks
Coffee K-Cup pods, Starbucks.
 Ready-to-Drink (RTD): Starbucks bottled Frappuccino coffee drinks,
Starbucks Iced Latte, Single Serve Cold Brew, Double shot Coffee
Smoothies, Teavana Craft Iced Teas, Teavana Sparkling Craft Iced Teas,
Starbucks Discoveries chilled cup coffees, Starbucks Discoveries Iced Café
Favorites, Starbucks Iced Coffee, Starbucks Double shot espresso drinks,
Starbucks Double shot Energy Coffee drinks; Starbucks Refreshers
beverages, Evolution Fresh bottled juices.

Investor Information
22
 Starbucks went public on June 26, 1992 at a price of $17 per share (or $0.53
per share, adjusted for subsequent stock splits) and closed trading that first day at
$21.50 per share.
 Starbucks was incorporated under the laws of the State of Washington, in
Olympia, Washington, on Nov. 4, 1985.
 Starbucks Corporation's common stock is listed on NASDAQ, under the
trading symbol SBUX.

Being responsible company

At Starbucks, we have always believed in the importance of building a great,

enduring company that strikes a balance between profitability and a social
conscience.

It started with their early travels to the places where our coffee is grown,
understanding that their future is inextricably tied to the futures of farmers and
their families. They nurtured personal relationships and built a global network of
support to create a new way to produce coffee: one that is sustainable, transparent
and good for people and the planet. As the threats of climate change have grown,
they have been working to help coffee farms adapt and find innovative solutions in
how they build and operate our stores, while reducing the environmental impact of
our cups, straws and lids.

Their stores are often the heart of a neighborhood, and they strive to make each
one a welcoming and inclusive Third Place. As they have grown, so too has our
opportunity to make a positive impact, from alleviating hunger through our food
donation program to making investments in local partnerships and coffee- and tea-
origin communities through The Starbucks Foundation.

Stitching all these efforts together is a common thread – a green thread – one that
is woven in the fabric of our company by the more than 300,000 men and women
who proudly wear the green apron. They are dedicated to making our partners
proud, providing pay equity and investing in their success. And they are working to
hire veterans and military spouses, refugees, Opportunity Youth and those
formerly incarcerated, and helping them build their futures once they are with us.

23
As it has been from the beginning, our purpose goes far beyond profit. We believe
in the pursuit of doing well.

Starbucks enters Gujarat, set to open a lot more cafes

in India this year

 The coffee chain will open five new stores in Surat and Ahemdabad
24
 The company now have 157 stores in ten cities across the country

New Delhi Seattle-based coffee chain Starbucks will open well over 30 outlets in

the country in the current financial year, making it the largest number of store
additions by the coffee chain in a year since it opened its first outlet in the country
in Mumbai in 2012, said a top executive at the company.
On Wednesday the chain also announced its entry in the western state of Gujarat
where it simultaneously opened five stores in the cities of Surat and Ahmedabad.
Starbucks now has 157 outlets in 10 cities including Mumbai, Delhi NCR,
Hyderabad, Chennai and Bengaluru, among others.
The Starbucks flagship store in Ahmedabad is located at Prahlad Nagar and will
offer customers more vegetarian food options. Starbucks that operates in the
market through a 50- 50 joint venture with Tata Global Beverages opened its first
store in India in October of 2012.

In financial year 2017-18, the company added 25 stores in India, and another 30 in
financial year 2018-19.

“So two years ago we built 25 stores, last year we did 30, and the plan this year is
to substantially exceed last year’s number," said Navin Gurnaney, CEO, Tata
Starbucks Private Limited.

“We will open more stores in FY 20 than in any other year in the past in India," he
added. Since April Starbucks has opened 11 stores in India.
India is one of the top five fastest growing markets for Starbucks globally,
Gurnaney said. “And we remain committed to the growth plans. We will be
thoughtful but we will be aggressive as we go forward," he added.
Starbucks typically invests ₹1.5 crore to ₹2 crore in opening a new outlet in India.
It will continue making such investments as it rolls out more cafes at malls, busy
markets, metro stations, airports and office complexes. “We are going to rely on

25
depth in the market where we exist already and breadth as we go out to new cities
and states," Gurnaney added.

In its annual report for the year 2018-19, Tata Global Beverages said that its joint
venture with Tata Starbucks Private Limited, posted a double digit top line
growth of 30% due to growth in existing store sales coupled with expansion of
stores.

SWOT Analysis

STRENGTH
 One of the strongest and most popular coffee brand
 Known for serving high quality roasted whole coffee bean.

26
  The company is known for its excellent global supply chain
 Ambience of coffee shops is fantastic with its premium appeal
 Starbucks card and loyalty system
 Tata supply premium Arabica and Robusta coffee to Starbucks
 Huge menu list
 Average sales per day is high

WEAKNESS

 High price points of the company’s coffee that can limit market share.
 Standardization of products that failed to reflect cultural differences
 High employee turnover due to low salaried
 The atmosphere of Starbucks coffee store can be imitable

OPPORTUNITY

 Huge untapped market

 Opportunity in per capita coffee consumption
 Reach can be increased to more towns
 India had youth population
 Tie up with entertainment industries and offices
 Merchandising options

THRATS

 Market can be easily penetrated

 Huge competition with Café Coffee Day, Barista and Indian coffee house
 Café coffee day going for IPO
 Lower per capita income of India
 Local tea/coffee shops popularity
 Food and Restaurant joints entering into coffee business

27
28
 CHAPTER 3

REVIEW OF
LITERATURE

Review of Literature

Sylwia Mokryz (2016) in their study entitled ―”Consumer Preferences for

coffee types and coffee bean brands available on the polish market”. Their
29
objectives were (1) To understand the consumer behavior and perception which
are affecting on market. (2)To analysis the customer attitude towards its
products (3) To discuss the customer satisfactory level. At the source of the
new consumption they found that consumers’ need more coffee variants and
with attractive presentation.

Dr.M.Gurusamy, K.Aswin Raj Preelhi, A.Athishlalakshmi and R.Swathi Sri

(2018) in their study entitled ―” A study on consumers’ behavior towards
coffee bran in Paavai educational institutions at Namakkal” the research
objective was posed for this study were(1) To investigate the effect between
brand experience, customer satisfaction and brand loyalty of the consumer. (2)
To identify the difference between expectation and perception of consumer in
the coffee brand. (3)To understand about the consumer satisfaction towards
coffee brand. They found out that students prefers to buy coffee more in the
evening as compare to morning. Narasur’s brand of coffee is more preferred by
students. Students more preferred to drink coffee in restaurant and the most
preferred coffee was black coffee.

Imam santoso (2017) in their study entitled ―”The analysis of the role of
Instant coffee price and Quality in consumer preference and purchasing
Decision, in Malang, Using Partial Least Square Method”. How do coffee
price, taste and preferences of consumer affect the consumers’ buying decision
Product price is proven to have significant influence on consumer preference.
Similarly, consumer preference has influence on purchasing decision. The
variable of quality shows insignificant influence on consumer considers the
price more than the quality while making preference and purchasing decision.
As the implication of this research, producer shall consider the aspect of more
efficient production and lower production cost to improved consumer
preference. It consequently will have the effect on purchasing decision.

Lanefranchi, M.C.Giannello and V.Dimitrova (2016) in their study entitled ―

“Evolutionary aspects of comers’ buying habits: Result of a sample survey” the
research objective is to understand and to prove that act of consuming coffee is
not only connected with satisfaction of basic needs but consumer may also

30
consider various factors like income, price of the goods, price of the related
goods, information and communication etc. Consumers are influenced by
advertisement of his or her choice of coffee, makes a selection according to the
product quality.

Roshini.s, Thoufeeq Ahammed, Ganesh pandian, Varun .G.A and Jayaraj.M

(2016) in their study entitled ― “Starbucks VS Café Coffee Day: A
comparison the great coffee shop battle in Chennai city” the research objective
is to recognize the entry of Starbucks as the latter is in a far more premium
segment than Café Coffee Day, would the brand image of Starbucks just be of
one time novelty value or will it be able to shift consumers to a more premium
concept in long term. As they came to derive as of now currently Chennai city
residents have not entirely shifted from Café Coffee day to Starbuks,

31
 CHARTER 4

RESEARCH
METHODOLOGY

INTRODUCTION:

Research methodology refers to the approach by which data is extracted to be

clearly understood. The development of strategy for conducting research is the step
after identifying a problem and completion of the literature review. This chapter
will therefore discuss the following:

32
Research Methodology of the proposed research study
The research methodology mainly includes the following points:

Sources of information:
The research makes the use of both Primary Data as well as Secondary data sources as
the case may be.

Primary Data:

The primary Data is collected from the consumers of Café Coffee day and Starbucks.

Secondary Data:

The secondary data is collected from publishing by search engine, newspapers, books,
Magazine, journals, websites and other relevant information.

Research instrument:
The researcher is put to us structured questionnaire to get the responses from the
consumers.

Sampling decisions:

Sample Frame:

The representative sampling unit in appropriate and justified size is conveniently

drawn from youth of Baroda city.

33
Sample Size:

In the present study, sample size is the regular consumer of Starbucks and Café
coffee day based in Vadodara.

The sample size of the study is 102.

Sample Design and Methods:

Non Probability sampling design and Judgment sampling method is used for the
proposed research study.

RESEARCH DESIGN:

Descriptive and explorative type of research design of the proposed project work
considers its objectives, scope and coverage will be explored.

TARGET POPULATION:
The target population refers to the specific group relevant to a particular study. In
other words it can be explain that a population is a group of individual or objects
that have the same form of characteristics. The target population for this study
mainly includes regular consumers and workers.

DATA COLLECTION TOOLS AND PROCEDURS:

There are numerous ways of collecting data and these depend on the purpose and
aims of the research. In this study data is collected by means of questionnaires.
Data collection involves contacting the members of the population that will be
sampled in order to collect the required information about the study.

DATA ANLYSIS AND INTERPRETATION:

Data analysis and interpretation that involves editing, coding, classification and
tabulating of collected data.

Qualitative and quantitative was used to analyze questionnaire method.

34
This study uses frequencies and percentage because they easily communicate the
research finding to majority of readers. Frequencies easily show number of
subjects in a given category.

Data analysis and interpretations would be done with the help of diagrams and
tabular graphs and various statistical techniques or tools which are suitable.

VALIDITY OF THE STUDY

The validity of research instrument is the extent to which such an instrument is
able to measure what it is supposed to measure, which is based on the research
results. Hence, validity refers to the degree to which results obtained from the
analysis of the data actually represent the variables under study. In this research,
the instruments used will be validated in terms of content validity. The content
related technique will measure the degree to which the question items reflect the
specific area covered.

SCOPE OF THE SYUDY:

The scope of this research is to make a study which will be helpful to the marketers to
understand the consumer offer services mix of the respective nature.

This study will try to cover the aspects of the SERVQUAL model and test the
consumer preferences, Perceptions and attitudes towards Café Coffee Day and
Starbucks.

LIMITATIONS OF THE STUDY:

Every research has limitations and every researcher faces the limitations and the
limitations that I had face are:

 The size of the sample of present study is small in nature.

 The time factor in collecting the responses is a limiting factor.
 As the data is collected through the questionnaire there are possibility of
respondent’s bias.

35
 It is difficult to know whether the willing respondents are truly the
representative or not.

36
 CHAPTER 5

DATA ANALYSIS AND

INTERPERTATION

37
Above chart shows that out of 102 respondents 50% (51) were Male
respondents and remaining 50% (51) were Female respondents.

38
Above chart shows that out of 102 respondents in which, 32.4% (33)
respondents were 13-19 years old, 57.8% (59) respondents were 20-29
year old and 9.8% (10) respondents were 30-35 years old.

39
Above chart shows that out of 102 respondents maximum percentage of
students were 84.3% (86) as their age group is between 13- 23.
Self employees were 5.9% (6)
Salaried were 4.9% (5)
House wife were 2.9% (3)
Business were 2% (2)

40
Above chart shows that out of 102 respondents maximum number of
people had visited both the café’s which is 53.9% (55), there were few
people who had only visited to Starbucks were 8.8% (9) and the people
who had only visited to Café coffee day were 37.3% (38).

41
Above chart shows that out of 102 respondents in which, 46.1% (47)
respondents were hardly visited to café Coffee Day, 33.3% (34)
respondents visit sometimes to Café coffee Day and there were 2% (2)
of the respondents who had hardly visited to Café Coffee Day.

42
Above chart shows that out of 102 respondent’s maximum number of
37.3% (38) respondents who had hardly visited to Starbucks and 25.5%
(26) respondents who had never visited to Starbucks.

43
Above chart shows that out of 102 respondents in which, maximum
numbers 56.9% (58) of respondents visits the café in the evening, 24.5%
(25) respondents visit café in afternoon and there were very less number
6.9% (7) of respondents who visits café in night.

44
Above chart shows that out of 102 respondents in which, maximum
number 64.7% (66) of respondents prefer to visit Starbuks at the
evening, few respondents prefer to visit Starbucks at the afternoon
14.7% (15) and very few prefers to visit in the morning 9.8% (10).

45
Above chart shows that out of 102 respondents in which, Maximum
number80.4% (82) of respondents prefer to visit café with their friends
and there were very few respondents who like to visit café alone 4.9%
(5).

46
The most influencing factor to visit café coffee day according to
respondents is the taste 68.6% (70), secondly they get influenced by
brand name which is 44.1% (45) and the least influenced factor to visit
is advertisements and offers.

47
• From the above bar graph it can be concluded that the most
influencing factor to visit Starbucks according to the respondents is
brand name which is 74.5% (76) second influencing factor
according to the respondents is taste which is 50% (51) and the less
influencing factor according to the respondents is pricing which is
8.8% (9). 

48
Above chart shows that out of 102 respondents for 1 respondent convenience is
least important for purchase decision and for 73 respondents’ convenience is
important for their purchase decision.

Out of 102 respondents for 84 respondents Brand name is Important to make

purchase decision and they are no respondents for whom Brand name is least
important to make purchase decision in Café coffee day.

Out of 102 respondents for 90 respondents Quality of the product is most important
to make purchase decision; there are less number of respondents for whom Quality
of product is important to make purchase decision which are 8 and 1 respondents
for whom the Quality of product is somewhat important.

Out of 102 respondents for 83 respondents Variety of product is most important to

make purchase decision and for 3 respondents it is somewhat important.

49
Above chart shows that out of 102 respondents for 54 respondents Ambience is
important to make purchase decision, for 21 respondent’s ambience is somewhat
important to make purchase decision and for 12 respondents Ambience is most
important to make purchase decision.

Out of 102 respondents for 56 respondents Type of Crowd in café coffee day is
important for their purchase decision , for 6 respondent Type of crowd in café
coffee day is least important, for 15 respondents Type of crowd in Café coffee day
is somewhat important and for 9 respondents Type of Crowd in café coffee day is
Most important.

Out of 102 respondents for 71 respondents States symbol is most important to

make purchase decision and for 14 respondents States symbol is important to make
purchase decision.

Out of 102 respondents for 72 respondents Behavior of personal is most important

to make purchase decision, somewhat important for 2 respondents and important
for 15 respondents.

50
Above chart shows that out of 102 respondents for 42 respondents Quality of
services is Important to make purchase decision and for 40 respondents it is most
important for making purchase decision.

Out of 102 respondents for 67 respondents waiting queue is important to make

purchase decision and for 11 respondents waiting queue is somewhat important.

Out of 102 respondents for 79 respondents Taste of beverages is most important to

make purchase decision and for few taste of beverage is somewhat and important.

Out of 102 respondents for 72 respondents price of beverage is most important to

make purchase decision and for few respondents price of beverage is important,
somewhat and lest important for making purchase decision.

51
Above chart shows out of 102 respondents for 66 respondents convenience in
Starbucks is important to make purchase decision and for 23 respondent’s
convenience in Starbucks is most important for making purchase decision
according to the respondents.

Out of 102 respondents to make purchase decision for 79 respondents’ brand name
of Starbucks is important and for few respondents Brand name of Starbucks is
most important.

Out of 102 respondents to make purchase decision for 83 respondent’s quality of

the product is most important in Starbucks

Out of 102 respondents to make purchase decision for 79 respondents variety of

product is most important and for 19 respondents it is important.

52
Above chart shows that out of 102 respondents for 60 respondents ambience of
Starbucks is important to make purchase decision, for 16 respondents it is most
important and for 12 respondents it is somewhat important.

Out of 102 respondents for 52 respondents type of crowd in Starbucks is important

to make purchase decision, for 15 respondents it is somewhat important and for 2
respondents it is least important.

Out of 102 respondents to make purchase decision for 71 respondent’s states

symbol is most important towards Starbucks.

Out of 102 respondents to make purchase decision for 70 respondent’s behavior of

personal is most important and for 20 respondent’s behavior of personal is
important.

53
Above chart shows that out of 102 respondents for 45 respondents quality of
services of Starbucks is important for making purchase decision and for 41
respondents it is most important.

Out of 102 respondents to make purchase decision for 62 respondents waiting

queue is important of Starbucks.

Out of 102 respondents to make purchase decision for 74 respondent’s taste of

beverages is most important of Starbucks.

Out of 102 respondents to make purchase decision for 71 respondent’s price of

beverages is most important and for few respondents price of beverage is
important.

54
The most aware product of the café coffee Day according to respondents
is coffee which is 89.2% (91), secondly desserts which is 59.8% (61),
third is snacks which is 58.8% (60) and the least aware product of café
coffee day is rice bowls which is 16.7% (17).

55
The most aware product of Starbuks according to the respondents is
coffee which is 93.1% (95), secondly aware product according to
respondents is cookies which are 50% (51) and third aware product
according to the respondents is sandwiches and desserts which is 48%
(49).

56
 CHAPTER 6

SUGGESTIONS, LIMITATIONS
&CONCLUSIONS

57
CONCLUSION

Today, in this fast moving dynamic world the demand for goods and services are
increasing at an alarming rate due to which there is greater competency and
competitor. Due to the presence of various café’s options, it is difficult for the
coffee companies to increase the customer base.

According to the research conducted it shows that internet is the most widely used
medium through which customer’s receive information about Café coffee day and
Starbucks. Both the companies have their presence on almost every social media
platform in the world which justices this fact.

From the research conducted it is shown that in both the café’s the less influencing
factor to visit the café is advertisements and offer so here Café’s have to focus on
their advertisements to reach their customers as there are various media to inform
about their various products and offer available in their Café’s.

SUGGESTIONS
The most influencing factor to visit café coffee day is there taste of coffee and
beverages so they still have to focus on their brand name.

The most influencing factor to visit Starbucks is there brand name and taste.

As there is only one out late of Starbucks in Vadodara there waiting queue is so
long those customers have to wait for long to get there coffee or beverage.

Compare to Starbucks, Café coffee day are providing less variety of beverages in
there menu by which they can attract the customer.

58
LIMITATION
 Analysis is to be based upon respondent bias can be in a limitation.

 The study is limited to time, if there was sufficient time more research could
have been done and result might differ.

 The study is conducted in Vadodara only.

59
 CHAPTER 7

BIBLIOGRAPHY

Sylwia Mokryz (2016) Consumer preferences for coffee types and coffee
bean brands is on the polish market, journal of Advances in social science
and Humanities, volume.3 Issue-10, 2395-6542

 Dr.M.Grurusamy, K.Aswin Raj Preethi, A.Athishlalashmi, R.Swathi sri

(2018) A Study of the customer satisfaction towards coffee , volume-4
Issue-2, 2383-2391

 Imam santoso (2017) The analysis of the role of instant coffee price and
quality, volume.20, No.1, 9-14

 Lameframchi, M.C.Giannello and V.Dimitrova (2016) Bhulgariam

journal of agricultural science, agricultural academy, 22(No 5), 705-712

60
 Roshini.s, Thoufeeq Ahammed, Ganesh pandian, Varun .G.A and
Jayaraj.M (2016) Starbucks VS Café Coffee Day: A comparison the
great coffee shop battle in Chennai city ISSN:2393-8870, Volume 3,
Issue 4-2016

61