Entering the Indian Coffee Market

This assignment analyzes LUCIDCAFE's proposed marketing strategy to enter the Indian coffee market. It examines Porter's Five Forces framework in the context of India, considering factors like competitive rivalry from established players like Tata Starbucks and Cafe Coffee Day, supplier power, buyer power, threat of substitution (tea), and threat of new entry. The assignment recommends targeting tier-two cities, focusing on affluent customer segments, utilizing global marketing strategies like social media and email campaigns, and selecting locations with ample seating space. It concludes that the Indian market presents significant potential for LUCIDCAFE.

LUCIDCAFE
Marketing Strategy To Enter
India Market

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 4........................................................................................................................................1
Strategies To Use In India...........................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Success can be determine by market entry strategies so it is essential for a company to
use an effective strategy as per target market. As LUCIDCAFE which is a typical Malaysian cafe
is now looking forward to enter in India because India is has second largest population and they
are having around 10 Billion Indian Rupees market size which is enough to attract to the
company to invest in India.
Sources: INDIAN RESTAURANT INDUSTRY. 2017.
Question 4
Strategies To Use In India
Porter Five Forces
Competitive rivalry: TATA which is the big group of India has took Starbucks and another is
competitor is Cafe Coffee Day in India which is having a huge grip on customers (Rashid and
Ghose, 2015). Cafe Coffee day is having more than 1530 outlets in India and Starbucks is
working in only in big cities and they are having more than 70 outlets in India. These data shows
the strength of the rivalry in target market.
Supplier Power: As LUCIDCAFE is having their own coffee fields to grew it so they are having
less impact of supplier power on them.
Buyer Power: As organisation is targetting to work in retail sector so buyer power will be less
impactive on them.
Threat of Substitution: Tea is the substitute of coffee and it is like national drink of India.
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Illustration 1: Indian Coffee Market Size, 2017.

Sources: Tea or coffee? 2017.
Threat of new entry: Many companies which are working in international market are looking
forward to enter in Indian market, Costa Coffee is one of them which is currently working in the
England.
Point of View: LUCIDCAFE has to use Tier two type cities to open their stores in India, they
have to select those urban areas which are having potentials to be developed cities and which are
continuously developing like; Bhopal, Jaipur, Vadodra, Kocchi, Mysore and Chandigarh (Datta,
2015). Company has to target rich and official class gentry to get faster growth in the market.
Market selection: They have to use those areas which has large space to sit and easily to access
for its targeted customers.
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Illustration 2: Comparison in Tea and Coffee consumption
in India, 2017.

Global marketing: LUCIDCAFE has to use social media and email marketing for it's
promotions in these target market and they have to make positive promotion before 8 months
from launching their products in India.
So these strategies are enough to get attention of customers and compete with rivalries in
India.
CONCLUSION
On the basis of this report it can be concluded that Indian market is having full potentials
to start business by LUCIDCAFE. Second biggest cities are having less market competition so
this decision will be beneficial for them to start their business.
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REFERENCES
Books and Journals
Datta, A., 2015. New urban utopias of postcolonial India: ‘Entrepreneurial urbanization’in
Dholera smart city, Gujarat. Dialogues in Human Geography. 5(1). pp.3-22.
Rashid, S. and Ghose, K., 2015. Organisational culture and the creation of brand identity: retail
food branding in new markets. Marketing Intelligence & Planning. 33(1). pp.2-19.
Online
INDIAN RESTAURANT INDUSTRY. 2017. [Online]. Available Through:
<https://www.smergers.com/industry-watch/indian-restaurant-industry/>. [Accessed on
1st September 2017].
Tea or coffee? 2017. [Online]. Available Through:
<http://www.livemint.com/Opinion/ZlRWL4feW4byUjtDs1MVpM/Tea-or-
coffee.html>. [Accessed on 1st September 2017].
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