CASE STUDY CHALLENGE :

For

Costa Coffee by Devyani International Limited

THE BRIEF

About Costa Coffee

Costa Coffee is a globally loved coffee brand from London established in 1971 by two brothers,
Sergio and Brun. It is known for it’s finest quality coffee, revolutionary methods in coffee
making, and commitment to unforgettable customer experience.

Devyani International Limited introduced the experience of Costa Coffee into India in 2005.
Soon Costa Coffee became a popular brand and a favorite coffee hot spot for coffee lovers.
The Brand has evolved over the years and has had a steady growth in India. Currently the
coffee market in India has grown immensely with both national and international brands
taking the market by storm. This has created an opportunity to revisit the brand strategy and
set the brand on a path of rapid expansion.

Current Brand Positioning: Costa Coffee evokes a feeling of being a cheerful and modern place
with great quality coffee.

Current TG & Presence : Coffee enthusiasts across age groups but skewed towards more
business use. It has a strong brand presence in North India. Costa Coffee is available in multiple
formats across the country in city, airports, through Food Courts, Kiosks, Hospitals, Malls and
at highways as well.

The Challenge:

Costa Coffee is repositioning itself to capture a substantial share in the coffee category growth.
The coffee category is evolving and is becoming highly competitive in India. The target
audience demands much more today from a coffee shop/ café. How does Costa Coffee appeal
to today’s coffee lovers in India while staying true to it Brand legacy. How does the brand
compete in an environment where competitors are funded by private equity players who are
ok taking losses for extended periods of time?

How can we engage with the Young Indian TG and become the country’s most favorite coffee
brand?
 Track One : The ASK

Craft a brand strategy for Costa in India. The strategy should identify category
codes, benchmark Costa to competition and provide strategies/path for Costa to
capture more than it’s fair share of category growth

The Brand and category understanding: Questions to consider

• What does the coffee category stand for in India? What is the difference between
traditional coffee shops to the modern cafes?
• How will the Coffee market evolve in India over the coming few years?
• What makes a great coffee place? What are differences between coffee shop and
cafe
• What is the Competition for Costa and what are gaps? What are key differences
between emerging Chai chains and coffee chains?
• Should Costa be a coffee shop or a Café?

The TG understanding: based on the proposal for the last question above..

• Who is the typical coffee consumer? What are the various need states?
• What has been the journey of coffee consumers over the years?
• How has the TG evolved?
• What do they prefer in terms of coffee product line and services from a coffee shop?
• What’s your assessment of Costa Coffee’s TG?
• What drives customers to coffee shops today?
• What are the musts for a coffee brand? How to attract the new age audiences?

-------------------------------------------------------------------------------------------------------------------------