Page 230 - DMGT510_SERVICES_MARKETING

Unit 12: Distribution of Services

consumption and finding new customers. This would have the beneficial, cascading Notes
effect of establishing an enduring and growing market for the coffee plantations’
produce.
2. Find opportunities of employment for the families of the plantation workers. With
coffee consumption restricted to South Indians, there was not much growth for the
industry and the families of the plantation workers were witnessing a squeeze on
their disposable income. The concept of ICH turned out to be a viable idea for an
alternative source of income for the children of the plantation workers. The generic
brand (South Indian Coffee or ‘filter’ coffee) was extended to a service brand (Indian
Coffee House).

ICH has successfully enlarged its operations and mission in scale and scope. It is now a
popular hangout for the college-going youth and families wanting a decent evening out,
going beyond retailing coffee to experiencing a coffeehouse atmosphere.
Atmospherics and Society
Coffee House in Kolkata (not an outlet of Indian Coffee House) is legendary in its
atmospherics – for facilitating ideas, discussions, creativity and conversations. It was the
favourite haunt of writers like Sunil Gangopadhyay and Samaresh Basu; authors like
Mrinal Sen and Buddhadeb Dasgupta; artists and critics; amateur fringe movements and
students. But it has become unviable and was on the verge of closure when populism
drove the Left Front Government of West Bengal to contemplate its nationalisation!
This strategy is especially commendable as it was tried in an era of Indian business when
‘grace’ as part of customer service was neither much understood nor catered to with any
urgency for customer acquisition, retention or image differentiation. It has been successful
in targeting both the youth and the family – normally an irreconcilable target cluster -
with a clever mix and match of Servicescapes, locations and offers. Outlets like the ones at
New Market, Bhopal; Cantonment, Jabalpur; Civil Lines, Allahabad; and Takshashila
University Campus, Indore (all from Madhya Pradesh) have successfully acquired the
image of a hip place, rendezvous point and place to be seen at. ICH is highly visible and
distinct in many ways.
Fare/Offer
1. Food: ICH progressed from ‘only coffee’ to snacks and full meals. A diner can now
get authentic South Indian fare – the ubiquitous idli, vada, sambar, uttappam, ‘filter’
coffee, etc. – to continental, Chinese and North Indian dishes. No liquor is served in
any of its outlets, with the family as the firm target and keeping its coffeehouse
image intact. With menu-items priced reasonably (lower than at other restaurants),
and with attention to quality and service, all its outlets soon became popular haunts
in most cities where they were set up.
2. Accommodation: This was a unique offer, albeit available only in a few locations
and in selected towns, like Cantonment, Jabalpur; Jaistambh Chowk, Raipur; New
Market, Bhopal, Gwalior etc. The accommodation was in the form of rooms and
dormitories and guests could stay for over a month too. It was mostly preferred by
South Indians on business travel, as transit stays due to transfers in their jobs or
changes in careers etc. ICH never went in for any advertisements and depended on
word-of-mouth publicity to pull in guests.
3. Coffee beans: It became a place for people, mostly South Indians, to get authentic
coffee beans they would grind at home and use in their percolators for freshly
brewed coffee.
Contd...

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