Barista Case Study

Barista Coffee Company Ltd.

1. What is Barista positioned in the market?

2. Should Barista adopt the franchising strategy?

3. Should Barista go for price reduction of its product line or should it continue

with its premium pricing strategy?

4. Should company adopt differential pricing strategy or retain the same across

all towns?

5. Should Barista contribute with the current product mix strategy or should it

offer wider assortment of food/snack items along with its core offerings of

coffee?

6. Recommend a growth strategy and formulate 2006-2007 marketing plan for

Barista Coffee Company Ltd.

4. Should company adopt differential pricing strategy or retain the same across all towns?

Barista should not adopt differential pricing strategy. It should retain the same across all towns irrespective whether they are the tier 2 cities or the metros. This is because Barista’s target segment is the upper middle class and the upper class people. Differential pricing may bring a doubt in the minds of people regarding the quality of coffee or food being served. And the constant travellers may think that they are being deceived finding different price for the same cup of coffee in different towns. Barista mainly depends upon the word of mouth of the customers for its promotion. It could hamper its own image of being a “Fine Café “by setting different prices in different cities (depending upon their population).

5. Should Barista contribute with the current product mix strategy or should it offer wider assortment of food/snack items along with its core offerings of coffee?

Barista should change the current product mix strategy taking into consideration the location of the outlet. Barista has three types of store formats.

1) Stand alone coffee café

2) shop-in coffee café

3) Coffee kiosk at airports and malls.

The shop-in cafes are partnered with book stores and stores of organized retail chains. Being small in size compared to stand alone...