Devising a b2c expansion strategy of ground filter coffee for existing coffee sellers in tier 1 cities of North India

Abstract

Coffee, a very important plantation crop in India, is mainly cultivated in Karnataka, Kerala and Tamil Nadu while non-traditional cultivation of coffee is carried out in Andhra Pradesh, Orissa, and some parts of North East India. The major coffee growing destinations include Hassan, Chikmagalur and Coorg in Karnataka, Wayanad, Idukki and Nelliyampathy in Kerala, and Shevaroys, Anamalais and Nilgiri hills in Tamil Nadu. The Indian coffee market is largely dominated by two firms - Nestle and Hindustan Unilever Limited. In the instant coffee segment, these two firms almost have a duopoly with a market share of 50 per cent and 48 percent respectively. Their subsequent coffee brands, Nescafe and Bru are the most popular in the domestic market. Another type of coffee popular in the Indian market is Filter coffee which gained prominence after Indian Coffee House – a café, run by the Coffee Board of India introduced it on their menu. The coffee house which began its journey in 1940s currently has over 400 chains across the country. The dawn of 21st century experienced an advancement in the Indian coffee industry, with establishments of major players of the coffeehouse market including Café Coffee Day, Barista, Costa Coffee, and Starbucks.