A PROJECT ON

CONSUMERS PERCEPTION TOWARDS BARISTA COFFEE HOUSE

SUBMITTED BY

HUMAIRA SALIM MAHAT

FOR THE DEGREE OF BACHELOR OF MANAGEMENT STUDIES

(SEMESTER – V)

UNIVERSITY OF MUMBAI

UNDER THE GUIDANCE OF

PROF. SHIKHA PANDEY

S.K.COLLEGE OF SCIENCE AND COMMERCE

NERUL – EAST, NAVI MUMBAI – 400706

ACADEMIC YEAR 2016 – 2017

1
 A PROJECT ON

CONSUMERS PERCEPTION TOWARDS BARISTA COFFEE HOUSE

UNIVERSITY OF MUMBAI

SUBMITTED BY PROJECT GUIDE

HUMAIRA MAHAT Mrs. SHIKHAPANDEY

Student Registration No. 2014030123

IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF “BACHELOR

OF MANAGEMENT STUDIES TYBMS”

SEMESTER- V

S.K. COLLEGE OF SCIENCE AND COMMERCE NERUL,

NAVI MUMBAI 400706

COLLEGE CODE – 874

2
 DECLARATION

I Humaira Salim Mahat student of Third Year BMS of S.K. College of Science and

Commerce (Nerul- East) declare that I have completed the project on Consumers Perception

Towards Barista Coffee House in the academic year 2016-17 as per requirement of Mumbai

university as a part of Bachelor in Management Studies (BMS) Programme.

The information presented in this project is accurate and original to the best of my knowledge.

Date: ______________

Place: Name & Sign of Student

3
 ACKNOWLEDGEMENT

I,Miss.HUMAIRA SALIM MAHATwould take this opportunity to thank University of Mumbai

for providing me an opportunity to study on CONSUMERS PERCEPTION TOWARDS

BARISTA COFFEE HOUSE; this has been an enormous learning experience.

I would like to acknowledge and thank people who made this project work possible, Mrs.

SHIKHA PANDEY who has been guiding force to me while doing this project and the teaching

staff of my college, friends for providing their help as when required to complete this project.

Without their support and encouragement, making this report would have been impossible for

me.

I would also like to thank the respondents who provided me their best knowledge and co-

operation throughout the project.

_____________________

Name and Sign of the student

4
CONSUMERS PERCEPTION

TOWARDS BARISTA COFFEE

HOUSE

5
 INDEX

SRNO. DESCRIPTION PG NO

1 CHAPTER-1

INTRODUCTION

1.1 Abstract/Executive Summary

1.2 Purpose/ Objective of the Study

1.3 Scope and Limitations

2 CHAPTER-2

LITERATURE REVIEW

3.1 About Industry

3.2 About the company

3.3 SWOT Analysis

3 CHAPTER-3

RESEARCH DESIGN

2.1Type of Research

2.2 Research Method

2.3 Types of Data

2.4 Sample Size

2.5 Sample Method

2.6 Data collection Method

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4 CHAPTER-4

Classification & Tabulation of Data

5 CHAPTER – 5

Analysis & Interpretation of Data

6 CHAPTER – 6

Findings, Recommendations &

Conclusions

7 ANNEXURE

8 BIBLIOGRAPHY

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 CHAPTER-1

INTRODUCTION

1.1 EXECUTIVE SUMMARY:

Indian consumer is a very interesting entity. The consumer in India is as heterogeneous as the

country itself is. The urban consumer contrasts with the rural and the South Indian consumer

with the North Indian. The Indian consumer, is therefore very difficult to understand and very

difficult to predict. Tea and Coffee are the favorite drink in India especially tea. A quiet cafe

revolution is sweeping urban India with the explosion of coffee bars.

Coffee drinking is increasingly becoming a statement of young and upwardly mobile Indians.

Moreover, coffee bars, an unheard of concept until a couple of years ago, are suddenly big

business. The specialty coffee movement has gained much of its momentum through the efforts

of companies like Barista, Café Coffee Day and Starbucks.

In India CAFÉ COFFEE DAY and BARISTA are the most popular and well-known cafés. The

college crowd rates them as one of the coolest hangouts. These companies sell similar product

but their positioning and target audience are very different from each other. These players not

only sell coffee and tea but also food and other merchandise items. These players compete with

themselves. Each player fights for its own share of market. They try to differentiate themselves

by the way of product or price or promotion. However, they are also facing the competition from

the foreign players like Georgia, Starbucks etc.

It would be interesting to see how barista differentiate and maintain its share in the market.

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1.2 OBJECTIVE OF THE STUDY:

By doing this report we will get to know-

▪customers preference in choice of coffee chains.

▪customers purchasing behavior and attitude towards barista coffee house.

1.3 SCOPE:

The scope of research will help us to understand the consumers perception towards barista

coffee house. It would help barista in designing their marketing promoting sales.

This report is prepared concentrating on barista coffee house. The area of the survey was

only in Navi Mumbai city. So, all the estimations have been made based on the city area. It

is a comprehensive report based on structured questionnaire survey, data calculation,

people’s opinion, our perception and knowledge.

LIMITATION:

while preparing the report following were some problems faced-

1. In many case we found some people do not have any idea about barista.

2. Many people were not interested.

3. For the sake of official secrecy, the concerned officials did not provide enough

information.

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 CHAPTER-2

LITERATURE REVIEW

3.1 ABOUT INDUSTRY:

Evolution of a coffee café:

The beginning:

It all began around 1000 A.D. when Arab traders began to cultivate coffee beans in large

plantations. They began to boil the beans creating a drink they called ‘qahwa’ which translates to

‘that which prevents sleep’. The drink became widely popular, and the need for coffee beans

grew. The brief timeline for the growth of coffee, cafés and everything related is given below:

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 First known discovery of coffee berries. Legend of

goat herder Kaldi of Ethiopia, who noticed goats

850► are friskier after eating red barriers of a local shrub.

Experiments with the berries himself and begins to

feel happier.

The first coffee trees were cultivated on the

1100►
Arabian Peninsula. Coffee was first roasted and

boiled by Arabs making ‘qahwa’.

1475► The world’s first coffee shop was opened in

Constantinople.

1554► The first establishment in Constantinople soon

becomes widely popular, and two more cafés were

opened.

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1600s► Coffee entered Europe through the port of Venice.

The first coffee house was opened in Italy 1654.

1652► The first coffee house was opened in England.

Coffee houses were called ‘penny universities’

(a penny is charged for admission and a cup of

coffee) because a person could visit a café to

discuss current affairs and social issues.

1672►
The first Persian coffee house opened.

1683► The first coffee house opened in Vienna.

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1688► Edward Lloyd’s coffee house opened. It eventually

became Lloyd’s of London.

1695► The first sign of the French Revolution had its

roots in Parisian cafés where the people’s

movement started gathering steam.

1700► The Dutch was the first to transport

and cultivate coffee commercially. Coffee was

smuggled out of the Arab port of Mocha and

Transported to Sri Lanka and India for cultivation.

1721►
The coffee house opened in berlin.

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1750► One of Europe’s first coffee houses, Café Greco

opened in Rome. By 1763, Venice had over

2,000 coffee shops.

1822► The prototype of the first espresso machine was

created in France.

1885► A process of using natural gas and hot air became

the most popular method of roasting coffee.

1905► The first commercial espresso machine was

manufactured in Italy.

1908► The invention of the world’s first drip Coffee

maker. Melitta Bentz makes a filter using blotting

paper.

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1933► Dr. Ernest Illy developed the first automatic

espresso machine. There was enormous interest

from cafés all around Europe.

1945► Achilles Gaggia perfected the espresso

machine with a piston that creates a highpressure

extraction to produce a thick layer of cream.

1980s► Coffee was now the world’s most popular

beverage, which leads to a boom in retail and hotel

cafés. The American retail café Starbucks was

born.

1990s► With the growth of the Internet, cyber cafés were

born, providing Internet access and coffee to users.

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2000s► With an increased penetration of PCs at homes,

cyber café chains close, and re-immerged as retail

coffee café chains.

Intresting facts about coffee and café:

• Coffee was first known in Europe as Arabian Wine.

• Coffee is presently the second most traded commodity in the world. It is second only to oil.

• Nescafe was invented by Nestle because it had to assist the Brazilian government to solve its

coffee surplus problem.

The coffee café industry:

The Coffee Café industry is currently one of the biggest and fastest growing sectors in business.

The industry consists of a mix of individual cafés, hotel cafés and retail cafe chains.

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▪Individual cafes :

The main bulk of revenue is earned by small, individual cafés, run mostly by families and

friends. It is a relatively unorganized sector. There are millions of such cafés around the world,

and they provide customers with a homely, casual experience. The bulk of these cafés are mainly

in Europe, where every little town or village has local cafes, where people gather together for a

conversation over coffee, or just to be alone with their thoughts.

These cafés have been the birthplace and sanctuary for various creative minds, revolutionaries

and thinkers of our time. For example the author J.K. Rowling, who has written most of the

Harry Potter series of books, sitting at her local café. These cafés set themselves apart from

retail chain cafés and hotel cafés because they provide customers with homely, classic appeal,

which cannot be emulated.

▪Hotel cafes :

Ever since the popularization of coffee, hotels all over the world started opening24-hour coffee

shops where visitors to the hotel could walk in for a cup of coffee and some food at any time.

These coffee houses are extremely important, because they provide international visitors to the

hotel with a universal drink- coffee.

Any customer can walk into any major hotel in the world, and enter the coffeehouse, and know

what to expect. These cafés are not really major players in the coffee café industry, but rather

provide supplementary services to the hotel industry.

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▪Retail cafe chains:

The last, and the most organized sector in the coffee café industry, is the retail café chain. Off

late, these chains have become extremely popular and are growing at an ever-increasing pace.

These retail chains work with an organized structure of man, material and money.

The work on developing a recognized brand consistent to all their outlets, which customers can

easily relate to, wherever they go. They provide customers with a standardized level of service

and quality at each of their outlets.

The vast popularity of these retail chains is shown in the rapid international growth of brands like

Starbucks. Customers can go to any Starbucks across the world and know exactly what to

expect. The main focus of my project is on nationally recognized retail café chain: BARISTA.

Growth of café industry in India :

Hot beverages have always been a part of the tradition of India, especially South India. Coffee

took the first seat in South India when the traditional Brahmin classes brought down the

beverage from the ruling British around the 1930s. During the early years the drink was confined

only to traditional rich Brahmin families who served filter coffee in a ‘davra- tumbler’. Coffee is

no more confined to the rich Brahmin class now, though the tradition of serving filter coffee in

the ‘davra- tumbler’ continues to this day.

In order to spread the drink, coffee houses emerged at various places in the country, which also

served as the opposite places for lawyers and the educated class to hold discussions ranging from

politics to cinema. It is also believed that many scripts and ideas for films evolved here.

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One of the oldest coffee houses in South India is the Raayars mess, Chennai, which serves first

class filter coffee even today. The mess was established in the 1940s and continues the tradition

of coffee but supplements it with tiffin also. The vintage location of the mess attracts huge

crowds even today early in the mornings, Coffee however was not the only item on the menu.

These places also served food and other drinks to their customers.

The drink also became famous and as a result even five star hotels began cashing in on it.

Several hotels all over the country started opening coffee- shops that catered to high- end

customers. This showed the popularization of coffee cafés, to all sections of society.

The drink has now become more of a concept than merely a drink itself. The last decade

witnesses the growth of numerous coffee pubs in the country. A number of coffee café owners

tried to westernize the taste in contrast to the filter coffee.

Now, large retail chains like Starbucks, Barista, and Café Coffee Day have opened up around the

country. The concept of a barista is not merely about selling coffee, but about developing a

national brand. Retail cafés now form a multi- core industry in the country, and have huge

potential for growth locally, and internationally.

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3.2 ABOUT THE COMPANY:

“Barista” (which means “bartender’’ in English) is an Italian coffee chain shop.

Barista traces its roots back to the old coffee houses in Italy- the hotbeds of poetry, love, music,

writing, revolution and of course fine coffee.

HISTORY

850 : First known discovery of coffee berries.

1600 : Coffee enters to Europe through the port of Venice.

1654 : The first coffee house opens in Italy.

1750 : One of Europe's first Coffee house.

1822 : Prototype of 1st espresso machine was created in France.

1908 : Invention of the world's 1st drip coffee maker.

Feb 2000 : First Barista Coffee house at Basant Lok, New Delhi.

Barista coffee house was established in February 2000 with an aim of providing an authentic

Italian coffee drinking experience in a warm, friend ly, no pressure environment. They began

operations in the year 2000 as they felt the time was right for the Indian consumer to experience

a café that provide a third space, away from work and home, where people could relax and

unwind.

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Barista have headquartered in new Delhi. It currently has Expresso bars across India, Pakistan,

Nepal ,Sri Lanka, Bangladesh, and the middle east.

A 34.3% equity stake was sold to Tata coffee in2001. C sivasankaran bought the remaining 65%

in barista from the Amit judge-controlled turner Morrison in 2004, and his sterling group also

bought out Tata coffee’s stake later. In 2007, the sterling group sold barista to lavazza. Barista

lavazza is currently owned by lavazza. In 2014, lavazza sold the coffee shop chain to carnation

hospitality pvt.ltd for an undisclosed sum.

'Barista has been listed among the top 100 brands in India by Super Brands India, the Indian

Division of the globally renowned Super brands ltd. Barista was selected out of 711 leading

Indian brands across 98 categories. Barista has its operations spread over 200 outlets across

India. At present, Barista has over 120 espresso bars and corners in the four metros and 14 cities

of India, with 35 being added , out of which 10 has been relocated.

Marketing mix:

Product:

COFFEES AND REFRESHING EATABLES

TEAS ALTERNATIVES

▪Hot classic ▪Iced teas ▪Desserts

Walnut Brownie
Espresso italiano Lemon iced tes
Mocha Excess
Affogato Peach iced tea
Chocolate Excess
Espresso conpanna Strawberry iced tea
Dark Temptation

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Café Americano Chocolate Mousse

Cappuccino Chocolate Chip Muffin

Café latte Almond Raisin Muffin

Café mocha Apple Cake

Kesar cappuccino

Caramel cappuccino

Roasted hazelnut latte

Irish cream latte

Vanilla latte ▪Sandwiches

▪cold coffees ▪Smoothies Paneer Tikka

Brrrista Cheese & Tomato

Mango smoothie
Brrrista frappe Chicken Tikka
Chocolate smoothie
Iced Americano Smoked Chicken
Raspberry smoothie
Iced café mocha

▪Indulgent coffees ▪lemonades ▪Pastas

Mango lemonade Tangy Tomato Pasta

Brrrista blast
Green apple lemonade Creamy Chicken Pasta
Brrrista caramello
Water melon lemonade
Tropical nut

▪Non coffees ▪Mojitos ▪Other food

Hot chocolate Classic mojito
BBQChicken Croissant

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 Raspberry mojito

Paan mojito

▪Add ons

Espresso shot

Flavours

Chocolate fudge

Caramel sauce

Vanilla i/c

Whipped cream

▪Tea

Assam tea

Masala tea

Green tea

Darjeeling tea

Ginger honey

Table 1: Barista product mix

* Some products may have been added/ removed from the product mix, due to changes since

gathering information.

Product sources:

Barista sources its coffee beans from around the world, but a major supplier is TATA Coffee,

part of the TATA Group that owns a large stake- holding in Barista. These coffees beans are then

sent to Venice, Italy where they are roasted into a blend exclusively for Barista. The food and

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desserts at Barista is exclusively catered to by the Taj, who ensures a high standard of quality

with all its products. Barista also sells merchandise through its store, all of which is imported.

The merchandise accounts for nearly 1/6 of Barista’s overall sale.

Quality sources:

Barista has a check on the quality of its products every 14 days. Barista also incorporates TQM

at its headquarters in Delhi. Since Delhi is the base for all its distribution, Quality control

measures are adopted there to avoid any poor quality products being distributed.

Serving size:

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

average serving size for Barista’s main product categories is detailed below:

product Serving size

Hot coffee 240ml/300ml

Cold coffee 340ml

smoothies 300ml

granitas 340ml

Table 2: Barista serving size

Merchandising:

Barista sells various kinds of merchandise through its stores. The table details the different

merchandising products.

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 Merchandise

Tiramisu flavors

Coffee mugs

Blue curaco

Barista French press

Barista coffee beans

Table3: Barista merchandising

Price :

Barista holds the perception of being an expensive cafe. Initially Barista started with Skimmed

pricing policy. Barista segmented the market according to the income and age. Due to the

entrance of new players, Barista was finding difficult to maintain the market share. With the

sudden spurt of growth in number of outlets, came the benefits of economies of scale. Because of

this, they have been able to gradually lower their prices, and appeal to different segments of their

target market. Currently, their prices are the lowest they have ever been, and they can

competitively match their prices against Café Coffee Day’s prices. It was not done from a

perspective of acquisition. The main factors that affect their pricing are their cost of goods sold.

The cost are quite high because imports a majority of its product and prouct-sources.

Place:

Barista started its first outlet at Delhi and from there it has started spreading its wings especially

after price reduction. Barista already has presence in all the metros and has a presence in all the

25
highly populated regions like Mumbai, Delhi, Bangalore and many more places. Barista is

seeking to expand through the franchisee route model and plans to enter B-class towns in the

country and middle-class localities in the metros such as North and East Delhi.

Their outlets are generally located at High Street/ Family Entertainment Centers. Considering

their generic appeal, there are Barista outlets in and around Malls, Cinemas, Colleges, and

offices etc.

By 2017-18, Barista plans to have over 300 outlets across the country up from 200.

Promotion:

Barista did not initially believed in any kind of promotion but in order to keep their customers

interested they started building the brand by communication both within the store as well as

outside the store through mass media. This is mainly in the form of promotions in the Press, TV

and Radio Medias. At present, they do not rely heavily on advertising, but rely more on

sponsorships and tie-ups with other corporations. Barista also takes part in various sales

promotion activities to help increase sales at their outlets.

a) Sponsorship:

Barista sponsors various events and festivals, which provides them valuable

promotion directed at strategic markets.

b) Tie-up’s:

▪ Barista with Tata Teleservice:

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Barista has tied up with Tata Teleservice. This tie-up was primarily done in order to

provide consumers' access to the Internet. The objective being, today if you look at

Barista consumers, a fair number of them come to Barista to discuss business over a cup

of coffee. Moreover, it is easier for them to meet at Barista, discuss business and send the

information across.

▪ Lacoste with Barista:

Lacoste India has also tied-up with Barista. The strategy is to target younger audiences,

which have a penchant for the "finer things in life". The customer segment of Barista is

very different from the ones who visit a regular coffee shop.

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 ▪ Elle-18:

Barista is jointly tied up with Elle-18 to promote their product.

Elle-18 has launched a collection of coffee colored lipsticks and has named it after

Barista’s beverages! Therefore, they are working with Elle 18, which is a youthful brand.

Moreover, they both will grow with this association.

▪ Other tie-ups:

Barista has tie-ups with Planet M, Crossword and the Taj group of hotels for setting up

Espresso corners within their premises. Moreover, along with ABN Amro, Barista has

introduced a concept called Ban café - a café in the bank premises.

Process:

The order and delivery process at Barista is based on self- service, where a customer goes up to

the counter to place his order, and goes back to the counter to pick his delivery once.

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People:

The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They

ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of

life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid-

back feeling of the café

Physical evidence:

a) logo, colors, images:

Barista, since the beginning has looked to use colors in its café interiors, logos and images, to

project a “warm, earth glow, synonymous with coffee”. Barista uses shades of Orange & Brown

to good effect to promote its “laid- back” atmosphere. The logo is a combination of brown,

Orange ; with the word “Barista”written in an upward curve, and the word “Coffee” underneath.

A simple logo that perfectly expresses Barista’s brand image: A traditional café for coffee lovers.

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b)Décor and architecture:

Barista’s internal décor and architecture expresses the simplicity you would normally associate

with traditional cafés. The furniture is made of light shades of wood, and there are comfortable

sofas in bigger cafés. The walls has shades of orange, with various photographs of the love for

coffee spread around each outlet.

Brand image:

Barista positions itself as a brand for anyone who loves coffee. Their products, Services and

outlets are more like the traditional European cafés, where people would meet for the love of

coffee, and for an intellectual appealing time. They position their outlets as a place “where the

world meets”, and they look to appeal to anyone in the 14- 60 age group that loves good coffee

and looks for a nice quiet time.

Distribution:

Distribution of outlets:

Every Barista outlet is owned by the company, and not franchised out to anyone. Barista can

thus control and make quick changes to its entire retail chain. Barista currently operates in over

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200 outlets all over the country. They have a market presence in over 20 cities. Mumbai alone

has over 30 outlets, and the number of outlets in the city is increasing at a phenomenal pace.

Barista has a thumb rule for selecting cities and locations for the distribution of outlets.

Location:

This is a prime factor in determining the success of a retail chain. However, Barista Coffee has

adopted a top down approach, wherein they first identify the cities and then decide on precise

locations within its limits.

Selecting a city:

Barista has devoted substantial management time and effort in zeroing on the cities where they

are now situated. The selection of the cities was based on the following criteria:-

► Sizeable population of executives, students and families in barista category

►High disposable income with people looking for new vistas in leisure and lifestyle oriented

concepts

►High level or organized retail activity

►Rapid socio- economic development

►Level of commercial importance (Industrial cities, state capitals etc.)

►Number of educational establishments and opportunities available for employment

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On the basis of the above criteria, they had initially targeted cities like Delhi, Mumbai,

Bangalore, Chennai and Hyderabad. Chandigarh and Ludhiana were Later added due to tie- ups

with ‘Planet M’ and ‘Ebony’ to set up store-in- stores at their outlets.

They are also pursuing an equally aggressive international business expansion strategy. They

have over 50 overseas locations presently under their consideration. They have already done

their groundwork in terms of getting brand and name registrations in over 30 of these locations.

To facilitate their global expansion, they plan to work with strategic partners, who share the

same vision of expanding and promoting the brand worldwide.

They have also opened new outlets in Sri Lanka and Dubai as a part of their international

strategy.

Distribution of stock:

The distribution of stock at Barista begins from the coffee beans being sent abroad for roasting.

The roasting takes place in Venice, and the beans are then supplied to the main warehouse in

Delhi. Stock is then distributed to the various Regional Warehouses, and then to the local

Warehouses. The outlets get their stock from the Local Warehouses. Barista uses a Re-Order

Level system for the distribution of their stock. Barista outsources its transportation needs from

external organizations, and currently uses trucks as the preferred means of distribution.

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Human resources:

Barista’s boom in growth has sparked of a greater need for more and more human resources.

This poses a challenge for Barista to ensure that their employees all across the country are well

trained and provide consistent service at every outlet.

position

Counter staff Junior executive (0-2 years experience)

Executive (1-3 years experience)

Senior executive (3-5 years experience)

Field staff Territory manger

Area manager

Regional manger

Support staff Marketing

Supply

Human resources

Finance

Training

Table 4: employee profile

The average age of barista employee is 22. Most employees are in 19-26 age groups.

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Recruitment and selection:

Sources of recruitment:

Barista’s main sources of recruitment are:

▪ walk-ins

▪ referrals

▪ placement agencies

Recruitment and selection process:

Barista hires people for their counter staff from external sources, and follow the following

process for recruitment:

i. Collection and review of Curriculum Vitae.

ii. Personal interviews with H.R. Manager.

iii. Personal Interviews with Area Manager/ Regional Manager.

Recruitment is usually done on a monthly basis, depending on the number of outlets and

expansion taking place in that month.

Training and development:

Barista Coffee has a set, 14 days rigorous training procedure for each employee. With training

modules customized to fit the professional needs of each employee.

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In the case of their brew masters, the training programs are drawn up and conducted by trainers

who have been trained by Italian brew masters. Barista has a Training & Development policy,

which basically consists of two parts:

▪ induction training

▪refresher training

1)Induction training:

Induction Training occurs when a new employee joins Barista. The employee is taught about the

Barista culture, what it means to be a Barista employee, the sort of attitude and behavior

expected from him, and product and technical training.

2)Refresher training:

Refresher Training usually happens ones every two months, in the form of Technical training

and soft skills training. This ensures that the employees are constantly aware of what is expected

from them, and their required level of performance.

Employee working hours:

Barista employees work on an average for 9 hours, and there are usually 3 shifts per day.

Employee code of conduct:

Barista employees are trained with regard to their code of conduct at the induction level. It is at

this stage Barista tries to infuse, what it refers to as key qualities for its employees: pleasant

manners, polite behavior and positive attitude. The code of conduct of each employee is

supervised everyday by territory managers.

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Promotion policy:

Barista prefers promoting from within, rather then externally. The amount of training and

development programs that go into developing an employee, they like to harness the potential

for higher posts. The current promotion policy is based purely on performance.

Performance appraisal:

Barista currently carries out performance appraisals every quarter of a year. Direct supervision

in most cases carry out these appraisals. Currently Barista doesn’t have any other kind of

appraisal programs. Barista does conduct Exit Interviews though, and uses it to improve

employee retention.

Employee turnover and retention:

Some of the employees in the 19-22 age group, look at this job as a temporary source of income,

and have no long-term commitment to barista.

To increase employee retention, barista focuses on the following key aspects:

►Right hiring

►Right working environment

►Grievance handling and redressal

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Awards:

Barista received the Times Group and Business Standard 'Brand of the year' award in 2002.

Super Brand 2006-2007 Super Brands India is a part of the globally recognized Super Brands

UK, which promotes the discipline of brand management and pays tribute to exceptional brands.

Barista Coffee has been awarded as Super brands for the second consecutive year.

3.3 SWOT Analysis:

Barista Lavazza

Parent company lavazza

category Coffee joints

sector Food products

Tagline/ slogan Experience it

usp Finest Italian and Arabica coffees and cuisine at great value prices

STP

segment People looking to go to have a coffee and snacks at a hangout place

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Target group Youth in the middle and higher income groups

positioning Pioneer in Indian café culture

SWOT Analysis

1.Excellent brand name and brand visibility

strengths 2.Huge young crowd as target group

3. Excellent Human Resource – Ambience and décor.

4. Strong brand recall and popularity amongst urban youth

5. Loyalty programs to offer discounts and attract customers

6. In house sourcing of coffee beans

7.Large number of outlet around the world

1.Perceived as Expensive brand

weaknesses 2. Self service for the customers which make the guest uncomfortable

3. Barista is not well known to Indian mid class population

4. Less advertisement in the market (no customer awareness )

5. Competition from other coffee outlets, restaurants and fast food

joints means tough segment

1.Introduce cheaper & unique versions of coffee

2.Tap the smaller towns/cities

opportunities 3. Can diversify in tea beverage segment

4. Large Untapped Market

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 5. Tie-ups with other companies for promotion

6. Unrestricted operating hours

1.Entry of Foreign players like Georgia, Starbucks etc

2. Dependent on Government commodity rates

Threats 3. Overall macro environment to support high disposable income

Competition

1.cafe coffee day

2.starbucks

competitors 3.costa coffee

4.mochas

39
 CHAPTER-3

RESEARCH DESIGN :

2.1 Type of research: Descriptive research

Descriptive research does not fit neatly into the definition of either quantitative or qualitative

research methodologies, but instead it can utilize elements of both, often within the same study.

The term descriptive research refers to the type of research question, design, and data analysis

that will be applied to a given topic.

2.2 Research method: survey and questionnaire

2.3 Type of data :

▪primary data: questionnaire

Data collected by the investigator himself/ herself for a specific purpose.

▪secondary data: websites , books, newpaper

Data collected by someone else for some other purpose (but being utilized by the investigator for

another purpose).

2.4 Sample size: 81

40
2.5 Sample method: non probability

Sampling methods are classified as either probability or non probability. In probability samples

each member of the population has a known non-zero probability of being selected. Probability

methods include random sampling, systematic sampling, and stratified sampling.

Non probability sampling is a sampling technique where the samples are gathered in a process

that does not give all the individuals in the population equal chances of being selected. Non

probability sampling include convenience sampling, consecutive sampling, quota sampling,

Judgemental sampling, snowball sampling.

2.6 Data collection method: survey method

Data collection is the process of gathering and measuring information on targeted variables in an

established systematic fashion, which then enables one to answer relevant questions and evaluate

outcomes.

41
 CHAPTER-4

CLASSIFICATION AND TABULATION OF DATA:

1)Age groups

Less than 20 54.3%

21-30 45.7%

31-35 _

36 and above _

2)gender

Male 51.9%

female 48.1%

3) How do you know barista coffee house?

By advertisement 24.7%

By magazines 3.7%

By word of mouth 54.3%

By other means 17.3%

42
4) How frequently do you visit a coffee house?

Alternate day 6.2%

Everyday 4.9%

Weekly 42%

Fortnightly 46.9%

5) on a scale of 1-5( 5 being the highest) how important are the following qualities to you when

choosing a coffee shop?

1 2 3 4 5

Atmosphere 7% 10% 16% 18% 30%

Hygiene 5% 6% 21% 8% 41%

Price 8% 18% 28% 16% 11%

Quality of 4% 8% 21% 8% 40%

coffee

43
 Wi-fi 9% 19% 26% 13% 14%

accessibility

Friendliness 5% 17% 15% 13% 31%

6) Out of the following coffee houses which one do u visit the most?

Barista 14.8%

Café coffee day (ccd) 42%

Costa coffee 1.3%

Starbucks 33.3%

Other 8.6%

7) What is your reason to visit a coffee house?

Refreshment 32.1%

Get together with friends 55.6%

Work 3.7%

Date 4.9%

Other reason 3.7%

44
8) How many people do you usually go with?

Alone 2.5%

With 1 person 27.2%

2-4 people 61.7%

More than 4 people 8.6%

9) What do you normally eat or drink in barista coffee house?

Coffee 56.8%

Indulgent coffee 7.4%

Tea _

Mojitos 3.7%

lemonades 1.2%

smoothies 12.3%

desserts 9.9%

Eatables like sandwich, samosa etc 8.6%

45
10) What beverages do you like to consume at barista?

Coffee 72.8%

Tea _

Aerated drinks _

Cocktails 7.4%

Smoothies 19.8%

11) On an average, how much time do you spend in barista ?

Less than ½ hour 11.1%

½ hour to 1 hour 56.8%

1 hour to 2 hours 30.9%

More than 2 hours 1.2%

12) How much money do you spend at barista?

Less than 1000 81.5%

Rs 1000 to 1500 18.5%

More than 2000 _

46
13) value for money ? (1=very bad , 2= bad , 3=average, 4=good, 5=very good)

1 2 3 4 5

Coffee 4% 12% 23% 27% 15%

Other drinks 6% 9% 37% 26% 3%

Eatables 6% 9% 35% 25% 6%

Desserts 3% 10% 19% 35% 14%

14) Rate Availability of items from 1 to 5 (1=rarely and 5=always)

1 2 3 4 5

The coffee of 6% 18% 9% 24% 24%

your choice

The drinks of 4% 19% 18% 21% 19%

your choice

47
 The 8% 12% 19% 27% 15%

eatables/snacks

of your choice

15) Rate the overall services? (1=very bad, 2=bad, 3= average, 4=very good, 5=excellent)

1 2 3 4 5

People 3% 6% 25% 34% 13%

Staff 2% 5% 24% 33% 17%

Products 3% 7% 20% 28% 23%

Overall rating 2% 5% 22% 37% 15%

16) How is your experience with barista coffe house ?

Very satisfied 17.3%

Satisfied 76.5%

Less satisfied 2.5%

Not satisfied 3.7%

48
 CHAPTER-5

Analysis and interpretation of data:

1)Age group

less than 20
46%
21-30
31-35
54%
36 and above

49
2)Gender

48% male

52% female

3) How do you know barista coffee house?

12%
2%

by advertisement
by magazines

27% by word of mouth

59% by other means

From the above graph we understand that out of the total respondent 59% know barista by

50
Other means, 27% by word of mouth, 12% by advertisement, and only 2% by magazines.

Which means that majority of people came to know barista by other means.

4) How frequently do you visit a coffee house?

6%
5%

alternate day

47% everyday
weekly
fortnightly
42%

From the above graph we understand that out of the total respondent 47% people visit

Barista fortnightly, 42% people visit barista weekly and the remaining 5-6% people visit

Barista everyday or else alternate days.

5) On a scale of 1-5( 5 being the highest) how important are the following qualities to you when

choosing a coffee shop?

51
 45
40
35
30
25
20 1
15 2
10
3
5
0 4
5

Form the above graph we understand that out of the total respondent atmosphere, hygiene,

Quality of coffee and friendliness is most Important for people while choosing a coffee shop,

followed by price and wi-fi accessibility.

6) Out of the following coffee houses which one do u visit the most?

52
 16%
37%
barista
café coffee day(ccd)
costa coffee
46% starbucks
other

1%

From the above graph we understand that out of the total respondent 46% people visit

Café coffee day and 37% visit starbucks, 16% visit barista and only 1% visit

Costa coffee.

7) What is your reason to visit a coffee house?

53
 4% 4%
5%

32%
refreshment
get together with friends
work
date
other reason

55%

Form the above graph it is seen that majority of people i.e 55% people visit a coffee

House for get together with friends.

8) How many people do you usually go with?

Column1

more than 4 people

2-4 people

with 1 person Column1

alone

0
20
40
60
80

54
Form the above graph we can clearly see that a person visit coffee shop with 2-4 people.

9) What do you normally eat or drink in barista coffee house?

60

50

40

30

20

10

0
eatables
like
indulgent lemonade smoothie
cofffee tea mojitos desserts sandwich,
coffee s s
samosa
etc
Column2 56.8 7.4 3.7 1.2 12.3 9.9 8.6

From the above we understand that majority of people i.e 56.8% drink coffee at barista.

10) What beverages do you like to consume at barista?

55
 80

70

60

50

40

30

20

10

0
coffee tea aerated drinks cocktails smoothies

Form the above graph we can understand that out of the total respondent people like to

Consume coffee, cockatils, smoothies. But non of them consume tea and aerated drinks

At barista.

11) On an average, how much time do you spend in barista ?

56
 1% 11%

31% less than ½ hour

½ hour to 1 hour
1 hour to 2 hours
more than 2hours
57%

Form the above graph we understand that majority of people spend ½ hour to 1 hour

And only 1% people spend more than 2 hours at barista.

57
12) How much money do you spend at barista?

more than 2000 0

rs 1000 to 1500
18.5

less than 1000

81.5

0%
20%
40%
60%
80%
100%

Form above graph it is understood that people don’t spend more than 2000 at barista.

They only spend rs 1000 to 15000 or less than 1000.

13) value for money ? (1=very bad ,2= bad ,3=average, 4=good 5=very good

58
 40
35
30 1
25 2
20 3
15 4
10 5
5
0
coffee
other drinks
eatables
desserts

Form the above graph we understand that for majority of people value for money is average

And very good.

14) Rate Availability of items from 1 to 5 (1=rarely and 5=always)

30

25

20
1

15 2
3
10 4
5
5

0
the cofffee of your the drinks of your the
chocie choice eatables/snacks of
your choice

59
Form the above graph we can understand that the coffee of peoples choice is always

Available, the drinks of their choice and the eatables/snacks of Their choice is mostly available.

15) Rate the overall services ? (1=very bad, 2=bad, 3= average, 4=very good,5=excellent)

40

35

30

25

20

15

10

0
people staff products overall rating

1 2 3 4 5

Form the above graph we can understand that majority of people said that the overall service

At barista is very good.

16) How is your experience with barista coffee house?

60
 4%
76% very satisfied
satisfied
7%
less satisfied
not satisfied
17% 3%

Form the above graph we can conclude that majority of people i.e 76% are satisfied with

Barista coffee house. And only 3-4% people are less or not satisfied.

61
 CHAPTER-6

FINDINGS:

1.Most of the people came to know about barista coffee house through other means.

2.People don’t visit coffee house on a daily basis, they visit fortnightly.

3.while selecting a coffee house atmosphere, hygiene, Quality of coffee and friendliness are very

Important for people.

4.People visit café coffee day the most. They think barista is a expensive brand.

5.Most of the People visit coffee house for refreshment and get together with friends.

6.They visit coffee house with 2-4 people.

7. People consume coffee at barista. They dont prefer drinking tea or anything else.

8.Majority of people spend ½ hour to 1 hour and rs 1000 to 1500 or less than 1000 at barista.

9.At barista people said value for money is average and very good. The coffee of their choice is

always available.

10.Majority of people are very satisfied with barista coffee house.

62
RECOMMENDATIONS:

▪ Barista has an extremely strong brand image, but they need to work hard on

improving their customer perception of being and expensive brand. Barista and

Café Coffee Day have almost identical pricing, but Barista is still perceived as the

more expensive brand.

▪ That’s why my first recommendation for Barista is, to carry out a promotion

campaign to ensure that their target market is well aware of their current low

prices. This would help change customer perception and turn Barista into an

affordable brand.

▪ My second recommendation is for Barista to look at its coffee beans suppliers and

coffee brewing process to ensure that it is the best it can be.

▪My third recommendation for barista is to change delivery process, so that a café attendant

delivers the coffee to the table. This may seem insignificant, but it can go a long way in

improving customer satisfaction.

63
CONCLUSION:

After doing the survey I came to a conclusion that barista have certain areas where they have

been consistently performing well. Barista as a brand is quite established and they have set a

mark for themselves. Their customers can easily identify and relate to the Barista brand. In terms

of human resources and ambience and décor it has received excellent response from the people

and also helped to take their brand to the next level.

But on the other hand in comparison to other brands customers perceive barista as an expensive

barnd. It is often been perceived as a brand that caters to higher strata of the society. Also it’s

notion of “self-service” i.e going to the counter to get your order has also got negative marking.

Thus barista needs to do value check and present it’s brand in a new fashion to get the brand

loyalty that it is currently lacking.

64
ANNEXURE:

Name : _____________

Age : less than 20 

21-30 

31-35 

36 and above 

Gender: male 

Female 

1. How do you know barista coffee house?

 By Advertisement

 By Magazines

 By Word of mouth

 By other means

65
2. How frequently do you visit a coffee house?

 alternate day

 everyday

 weekly

 fortnightly

3. on a scale of 1-5( 5 being the highest) how important are the following qualities to you when

choosing a coffee shop?

1 2 3 4 5

atmosphere     

hygiene     

price     

Quality of coffee     

Wi-fi accessibility     

friendliness     

4. Out of the following coffee houses which one do u visit the most?

 Barista

 cafe coffee day (ccd)

66
  costa coffee

 starbucks

 other

5. Whats is your reason to visit a coffee house?

 Refreshment

 Get together with friends

 Work

 Date

 other reason

6.How many people do you usually go with?

 Alone

 With 1 person

 2-4 people

 More than 4 people

7. What do you normally eat or drink in barista coffee house?

67
  Coffee

 Indulgent coffees

 tea

 mojitos

 lemonades

 Smoothies

 Desserts

 Eatables like sandwich, Samosas etc

8. What beverages do you like to consume at barista?

coffee

tea

aerated drinks

Cocktails

smoothies

9. On an average,how much time do you spend in barista ?

68
  less than ½ hour

 ½ hour to 1 hour

 1 hour to 2 hours

 more than 2hours

10. How much money do you spend at barista?

 Less than 1000

 Rs 1000 to 1500

 More than 2000

11. value for money ? (1=very bad ,2= bad ,3=average, 4=good 5=very good)

1 2 3 4 5

coffee     

other     

drinks

eatables     

desserts     

69
 12. Rate Availability of items from 1 to 5 (1=rarely and 5=always)

1 2 3 4 5

the coffee of     

your choice

the drinks of     

you choice

the     

eatables/snacks

of your choice

13.Rate the overall services ? (1=very bad, 2=bad, 3= average, 4=very good,5=excellent)

1 2 3 4 5

people     

staff     

products     

Overall rating     

70
14. How is your experience with barista coffe house ?

 Very satisfied

 Satisfied

 Less satisfied

 Not satisfied

15. Why do u prefer barista coffee house?

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

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

BIBLIOGRAPHY:

▪ www.barista.co.in

▪ https://en.wikipedia.org/wiki/Business_Standard

71
▪ The economic times. Retrieved 1 September 2008.

▪http://www.dnaindia.com/money/report-barista-lavazza-wants-a-place-of-its-own-1287712

▪http://economictimes.indiatimes.com/industry/cons-products/food/barista-coffee-sell-off-

in-line-with-global-stance-lavazza-spa/articleshow/40121705.cms

72
73