Café Coffee Day

Type – Public.

Industry - Restaurants, retail coffee and tea retail beverages.

Founded – 1996.

Headquarters – Bangalore, Karnataka, India.

Number of locations – 970.

Key people – V.G.Siddhartha Hegde, Founder and Director.

Services – Coffee.

Revenue – US $ 45 million.

Employees – 5000.

Subsidiaries – Coffee day fresh n ground, Coffee day Xpress, Coffee day take away, Coffee day Exports,

Coffee day Perfect.

Website – cafécoffeeday .com

Competitors –

Barista

Café mocha

Costa richa

The coffee bean and tea leaf

About the company:

Café Coffee Day is a chain of coffee day in India having its headquarters

in Chikkamagaluru,Karnataka. A division of Amalgamated Bean Coffee Trading Company Ltd.

(ABCTCL), it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996

on Brigade Road inBangalore, and today has the largest cafe retail chain in India – with 999

cafes in 135 cities .

Large number of coffee day cafes are located in Bangalore. The cafe chain has had much

success riding, and to some extent creating, the cafe culture wave that swept

acrossmetropolitan India following strong economic growth resulting in an increase in

youth spending power. It has even tied up with WorldSpace and Microsense to enable its

cafes with satellite radio and Wi-Fi, respectively. Its first Wi-Fi cafe was opened on Lavelle

Road, Bangalore.

Café Coffee Day sources coffee from 5,000 acres (2,023 ha) of coffee estates, the second

largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of

India’s leading coffee exporters, with clients across the USA, Middle East, Europe and Japan.

With its roots in Chikmagalur, the home to some of the best Indian coffees, Coffee Day has

its business spanning the entire value chain of coffee consumption in India. Its different

divisions include: Coffee Day Fresh 'n' Ground (which owns 450 coffee bean and powder

retail outlets), Coffee Day Square (high level coffee bar. one in bangalore.). Coffee Day

Xpress (which owns 730 Coffee Day kiosks), Coffee Day Takeaway (which owns

9000 vending machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged

Coffee) division. It is entering the European market by opening two Cafés in Austria as well,

making forays into Pakistan and Germany to set up cafes abroad. The strategy CCD has

adapted is to place a cafe in every possible location where some business can be generated.

So in Bangalore, in the main shopping district, there are six outlets in a 2 km (1 mi) radius

and over 140 cafes in Bangalore alone.

Another model which CCD has adapted is to be present in educational institutions and

corporate campuses either in the form of detailed cafes or its economical model of CCD

express.

These innovative strategies have ensured that the competition is at bay and ensured CCD's

dominance in the Indian market though few of its outlets are incurring losses.

CCD AT CARTER ROAD , BANDRA.

Analysis of 7Ps of CCD:

1) PRODUCT:

CCD’s business strategy has been admirable- striking a right balance between the

price and the product mix. Rather than catering to the connoisseur’s taste, it has

benefited by serving to the popular taste. Anyways coffee served in these cafés is an

acquired taste for most of us and hardly do we go beyond a cappuccino, a hot chocolate

or a cold coffee and if at all in a mood to experiment may be a latté. Then why have

varieties that a common man can’t even pronounce, let alone trying them.

Moving on to food, earlier they didn’t have much to offer for snacking except assembly

line food like burgers, sandwiches, unpalatable samosas and pastries in unadventurous

flavours like pineapple, butterscotch and chocolate. But now the food options have

improved considerably (I particularly relish the corn and spinach sandwich and my cup of

cappuccino with an almond biscotti) and the newly introduced lunch items (like pastas,

biryani, paratha with curry, etc) have received a warm welcome especially by the

corporate crowd. As a matter of fact, whenever I am travelling to new locations and I am

not being my adventurous self I rely on CCD as my comfort food destination. I have

grown to trust CCD for their quality, hygiene and consistency of food.Apart from food and

beverages the CCD team has made a commendable effort in leveraging the brand

potential and the retail opportunity by introducing many brand extensions like mint,

cookies, t-shirts, coffee mugs, etc. and lets not forget that they even pioneered

innovative concepts like jukebox and newsletter which were quite a hit among the youth.

2) PROMOTION-

CCD  is  involved in all the areas of serious consumer passion like:

Television:Café Coffee Day held a contest around a very popular programme on Zee

English calledFriends. All the six lead characters are shown often visiting a coffee

shop.They have tied up with Channel [V]‘s Get Gorgeous contest.

Tie-ups:Besides that Café Coffee Day also tie up lot of the youth brands. So they have

a contest going on with Levis,another one with Scooty, Liril, latest one with

Airtel Friends.

Association with movies:CCD can be seen in movies like Khakhee and Mai Hoon Na

Sales Promotion:Café Coffee Day uses special ‘Café Citizen Card’ for rewarding Café

Coffee Day’s customers. It is a loyalty program to gain new customers and retain the

existing ones.

2) PRICE – Talking about the pricing I think they have a very clever strategy- It is by no means low-priced, but when compared to the price lists of other chains the CCD menu looks affordable.Considering that Café Coffee Day knows its major customer lies in the bracket of 15- 29,it has tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from Rs.45 to Rs 80. From the time it first started its operations, there has been only minor changes in the pricing policy of Café Coffee Day. The changes have been more due to the government taxes than any thing else.

3) PLACE –

The strategy CCD has adapted is to place a cafe in every possible location where

some business can be generated.This is a prime factor in determining the success of

a retail chain. Café Coffee Day looks to cater to their target market with strategically

located outlets.

Their outlets are generally located in High Street/ Family Entertainment Centers, gas

stations, near Collegesetc .

4) PHYSICAL EVIDENCE-

a)Logo , image, brand: Café Coffee Day has used bright red and green colors in its

logo. RED stands forleadership , vitality,passion for coffee. The GREEN stroke harks

back the coffee plantations that they own.Café is noticeably larger in the logo to

denote that Café Coffee Day pioneered thecafé concept in India way back in

1996.The font looks as though the letters have congealed out of a liquid.

b) Architecture and Decor:Largely wood and granite based interior with  young

colours of today,like limegreen, yellow, orange, and purple predominate.

c) Literature:The literature provided by Café Coffee Day is indicative of its youthful

image. The menus, posters, pamphlets are all designed to attract young and

young at heart.

5) PROCESS-

The ordering and delivery process in CCD was earlier based on self- service. But

now in most its coffee shops the waiter comes and takes away the order and

delivers the order on table.

6) PEOPLE-

People at Café Coffee Day believe that “People are hired for what they know

but fired for how they behave”. Motivation and personal skill are laid

emphasize upon. Their employees are like friend to the customer but at the same

time they know about the international standards of hygiene and cleanliness and

personal grooming.

Name:

Age:Sex:Occupation: Name three coffee shops that you knowa.b.c.

1. How often do you visit a Coffee Shop?a. 2 – 3 times a weekb. Once a weekc. Once in two weeksd. Once a monthe. Very rarely

2. How much money do you spend at a Coffee Shop? (in Rupees)a. Less than 40b. 40 – 80c. 80 – 120d. Greater than 120

3. On an average, how much time do you spend in a Coffee Shop?a. Less than ½ an hourb. ½ an hour to 1 hourc. 1 hour to 2 hoursd. More than 2 hours

4. How many people do you go to a coffee place with?a. Aloneb. 2 – 4c. 4 – 8d. More than 8

5. Why do you go to a coffee shop?a. Only to have coffee15b. To enjoy my private timec. Catch up with friendsd. For group activities(group studies, presentations, meetings)

6. What do you look for when u choose a coffee shop to go to?(Rank in orderof preference 1-highest , 5-lowest)a. Convenience/accessibilityb. Ambiencec. Serviced. Quality of foode. Price

7. Why would you go to a Cafe Coffee Day? (You can choose more than one)a. Convenience/accessibilityb. Ambiencec. Serviced. Quality of foode. Pricef. Others(please specify)

8. What do you normally eat or drink in a Cafe Coffee Day? (You can choosemore than one)a. Coffeeb. Smoothies and similar drinksc. Desserts and confectioneryd. Eatables like sandwich, samosas etc

9..Ambience (Tick your preference)a. Comfort and Feel - relaxed / just comfortable / congestedb. Lighting and Colour - bright / sufficient / dullc. Entertainment - engaging / I don’t mind it / irritatingd. Table Space - adequate / sufficient / not enough

10.Are you aware of the different ‘formats cafes’ Cafe Coffee Day is comingup with?Yes No

11.Will you prefer format cafes to a normal Cafe Coffee Day?Yes No

12.If you had to choose, which of these café formats would you prefer (Youcan choose more than one)a. Music cafesb. Book cafesc. Lounge cafesd. Garden cafese. Cyber cafesf. Sports cafesg. Singles cafesh. Fashion cafes

13.Do you have any suggestions to improve Café Coffee Day?

MENU:

FOODS:

SMALL EATS:

Chicken Hot Dog... Choco brownie Choco doughnut Cookies

Mocha muffin surprise Veg samosa.

BIG EATS:

Chicken burger chicken salad Garden salad spinach corn sandwich

Sandwich sandwich

Veg burger Zingy Pizza sandwich

SWEET EATS:

Carrot nut cake Choco black forest Dark fantasy

Mystery mousse Sizzle dazzle brownie

SUNDAES:

Choco hola Chocolate icecream Cookie medley Dark passion

Fruity bliss Mocha choco delight Vanilla icecream

BEVERAGES:

HOT COFFEE:

Caffe latte Café mocha Cappucino Irish coffee

Machiata Solar eclipse Aztec Black coffee

Espresso Ethiopian

COLD COFFEE:

All day refresher Café frappe Chill o coffee Devils own

Kaapi nirvana Mochillo Tropical iceberg

HOTEAS:

Darjeeling divine Lemon demon Assam express Masala garam

FROSTEAS:

Lemon freeze Strawberry

CHOCO – LATTES:

Choco rocks Hot choco latte

FRUITEAZERS:

Cool blue Green apple soda Lychee chill Mango shake

Strawberry slush Strawberry shake Black current blast