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Global & International Business Contexts - Essay Example

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Talking about the consumption, the chief coffee consumer country in the world is USA with coffee imports of around 1.2 billion kg every year…
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Global & International Business Contexts
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Global & International Business Contexts

Download file to see previous pages... This is mainly because of drinking habits in non-traditional regions, growing culture of cafes and increasing share of instant coffee (Surana 2009).
Discussing in detail the coffee market of India, the change in trend towards coffee is mainly due to two reasons, firstly, the entrance of multinational firms which bought the concept of instant coffee that is rising day by day. Secondly, the espresso culture which is encouraging coffee parlours to open up for consumers to choose variety of coffee from there, at the same time providing opportunity to meet people and relax (Sreenivasan 1999).
These parlours are targeting the people between the age group of 15-29. This identify that the main target market for these coffee houses is youth which is the major population of India therefore the market is huge and the leader can gain a lot out of it. According to the research, 72% of customer or target market is students or young professional who have enough disposable income to spend on. Another target area for these coffee houses is the young people working in call centers due to which a lot of these cafes are located near call centers and big companies offices (Choudhury 2007).
The coffee provided in a unique environment contributes 7% to the total consumption industry and is expected to grow at half percent (Shenoy 2005). Retail cafés are now multi-crore industry and has a huge potential of growth locally and internationally (The Indian Institute Of Planning And Management 2006). Currently, there are few key players in the industry: Barista, Café Coffee Day, Costa Coffee, Coffee World, Coffee Bean & Tea Leaf (CBTL) and Qwicky. Among them the top two are Barista and Café coffee day who have captured the major share in the market.
The country is moving towards a stable and conducive political environment as a reduction is seen in internal turmoil due to political influences and moreover, the political parties have shown positive response towards ...Download file to see next pagesRead More
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