| THIS WEEK: THE INDIAN FOOD AND BEVERAGES MARKET |
| India's food and beverages market is estimated at Rs 21,000 crore ($4.6 billion) and makes up for 2 per cent of the country's total retail market. |
| The organised segment, accounting for 5 per cent of the total food and beverages market, is valued at Rs 1,050 crore ($230 million) and constitutes 3 per cent of the total organised retail market in the country. |
| The organised sector is represented by mid-priced fast-food restaurant chains (both Indian and international), modern-format beverage retail chains (such as Barista, Cafe Coffee Day and Qwiky's), and fine-dining restaurant chains, which account for only about 8-10 per cent of the organised food and beverages segment, with presence of limited players (such as TGIF, Ruby Tuesday, Geoffrey's and so on). |
| The coffee retailing segment is estimated at Rs 200 crore ($45 million) and is growing at the rate of 25 per cent a year. |
| The growth in the cafe segment is expected to continue at the current pace driven by the entry of prominent international players and increased penetration of domestic players to tier II and III cities. |
| Currently, Barista and Cafe Coffee Day together have close to 300 cafes in the top 30 cities. |
| NUGGETS Selections from management journals |
| Marketers have long used all sorts of demographic and geographic data to target potential customers "" age, sex, education level, income, zip code. But there's another variable that companies may want to consider: |
| Who is connected to whom? A study, co-authored by Shawndra Hill, Wharton professor of operations and information management, found that consumers are far more apt to buy a company's product if they are "network neighbours" with existing customers. |
| Mining data from "social networks" "" who talks to whom or who emails whom "" could allow companies to pinpoint likely customers who otherwise would be overlooked. |
| Network-based marketing: using existing customers to help sell to new ones Knowledge@Wharton, January 2007 Read the article at http://knowledge.wharton.upenn.edu |
| The high price of oil presents the leaders of the Gulf Cooperation Council (GCC) states "" Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) "" with a singular opportunity to diversify their economies beyond hydrocarbons. |
| How they manage that opportunity has far-reaching implications not only for their own populations but also for the entire global economy. The challenge before these leaders is substantial. |
| Unemployment is high, particularly among the young, and in the years ahead the GCC states must create millions of new private-sector jobs. Doing so will require crucial reforms to labour markets and to financial and educational systems. |
| Can the GCC states do it? Sceptics, noting that countries rich in natural resources "" especially oil "" often struggle to manage their wealth, argue that the current high prices actually present an impediment to reform. |
| The authors have a different view: given the growing pressure within the GCC states to reduce unemployment and provide jobs for an unusually young labour force, oil revenues will serve as a catalyst to continue the reforms needed to break away from the boom-and-bust cycles that volatile energy prices create. |
| Beyond oil: reappraising the Gulf States By Kito de Boer and John M Turner The McKinsey Quarterly, Web exclusive, January 2007 Subscribe to this article at www.mckinseyquarterly.com |
| Thirty-six years after his book Future Shock, the world's most influential futurist sees the informal economy as a basis of revolutionary wealth. When Alvin Toffler's Future Shock first appeared in 1970, Richard Nixon was in the White House, the US was in Vietnam, and the first personal computers were still several years away. |
| Yet with notable prescience, Toffler wrote that the years to come would be marked by information overload, an acceleration of technological change, and a resultant social upheaval that he likened to mental illness. |
| In retrospect, Toffler was less a reliable prophet than a brilliant synthesist. In his latest book, Revolutionary Wealth, Toffler argues that more and more economic activity takes place through processes that do not involve the exchange of currency. |
| The rapid rise of this non-monetary wealth system has major implications for both the global economy and for humanity in general "" implications that have been unmeasured and underestimated. |
| Alvin Toffler: the thought leader interview By Lawrence M Fisher strategy+business Read the complete article at http://www.strategy-business.com/ |
| BOOKWORM New arrivals |
| THE STARBUCKS EXPERIENCE Author: Joseph A Michelli Publisher: Tata McGraw-Hill Price: Rs 299 ISBN: 0070636761 |
| A PERFECT MESS Authors: Eric Abrahamson and David H Freedman Publisher: Little Brown, US Price: Rs 470 ISBN: 0316017531 |
| THE CARROT PRINCIPLE Authors: Adrian Gostick and Chester Elton Publisher: Free Press Price: Rs 505 ISBN: 1416544178 |
| LEADING AT A HIGHER LEVEL Author: Ken Blanchard Publisher: Pearson Price: Rs 550 ISBN: 8131707741 |
| THE SECRET TO GE'S SUCCESS Author: William E Rothschild Publisher: McGraw-Hill Price: Rs 1,315 ISBN: 0071475931 List by Crossword |
Strategic tools for the practising manager
KIT
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First Published: Jan 30 2007 | 12:00 AM IST
