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McLattes vs. Starbucks Lattes

Will the McLattes beat the lattes at Starbucks? The lattes at the fast growing McCafes seem to offer better value proposition to consumers with a high quality-lower price combination.

The value offering at Starbucks or its Indian equivalent, Cafe Coffee Day go beyond just high quality cappuccinos and lattes. Its never, just the coffee, its the experince. That's why these Cafes are termed 'destination coffees'. As long as consumers associate value to this experience, that then justifies its translation into higher priced coffees, the CCDs and the Starbucks will survive. On the other hand if the McCafes recreate destination coffee formats at lower prices to consumers, Starbucks better watch out.

Pic : NOAH BERGER / BLOOMBERG NEWS

Comments

On a local note, I'd just liek to say that places like Mocha (on khader nawaz khan rd, chennai) have gone zipping past Coffe Day. It has become so much the 'destination winner'-what with its Moroccan theme, innovative interiors, dark/subdued/red n black overtones, theme rooms, open spaces, and lots of hookah.
Mocha/Ashwita have prices that are premium and they're still full all teh way!
An intersting twist here is ta they combine premium prices with the elevating experience to filter the crowd, and styll keep the buks flowin in!

So, destination coffee formats will stik 2 higher than average pricing 2 really keep up the overall value and encourage selective filterin of customers!
Ray Titus said…
The problem of themes is the 'acceptability'. What finds favour one place, is shunned at another. That's why the CCD formats though standardised, are less riskier when multiplied.

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