Service Industry Café Coffee Day

Presented By:- Nandita Sadani - 48

Contents

Corporate Profile Mission and Vision Divisions Competitors Tangibility Spectrum Services Blueprint 7Ps of Marketing Porters Five forces Analysis SWOT Analysis Distribution Strategy

Factors Based on there priority Grading of factors as per there

importance Café Coffee Day Rating Online Sales H.R. activities Some interesting facts Recognitions & Rewards Recommendations Conclusion Sites Referred

Corporate Profile Café Coffee Day (C.C.D.) is India’s largest coffee conglomerate,

the Amalgamated Bean Coffee Trading Company Limited (ABCTCL). Popularly known as Coffee Day was formed.

Its origin lies in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans.

V.G.Siddhartha Hegde – Founder & Chairman of Amalgamated Bean Coffee Trading Co.

His family owns 10,500 acres of coffee plantation farms in Karnataka.

Venu Madhav – Head of Operations at C.C.D.

Important Events YEAR EVENTS

Since 1875 Rich coffee – growing tradition started

Early 1990s Opportunity arose with the deregulation of the coffee board in Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan

1996 C.C.D. was first set-up at Brigade Road in Bangalore

2000 Exported more than 27000 tonnes of coffee valued at US$ 60 m to countries like U.S.A., Europe & Japan and, for the second time in its short career of 7 years retained the position as the largest coffee exporter of India.

YEAR EVENTS

2002 C.C.D. owns & operates 213 cafes in all major cities of India

2008 C.C.D. expanded to 595 cafes in 100 cities of India, 3 in Vienna, 2 in Karachi & targets to expand till 950 cafes in a year from 2008

2010 Earning revenue of US$45 million, jobs 5000 employees, owns 1016 cafes in 135 cities

Mission and Vision

Mission:- “To be the best Cafe chain by offering a world class coffee experience at affordable prices.”Vision:- “To be the only office for dialogue over a cup of coffee.”

Divisions of Coffee DayCoffee Day - Fresh & Ground

Café Coffee Day

Coffee Day – Vending

Coffee Day - Xpress

Coffee Day – Exports

Coffee Day – Perfect

Café Coffee Day is the part of India’s largest coffee conglomerate named Coffee Day, Rs.750 crore ISO 9002 certified company.

Competitors Direct Competitors:

Barista

Cafe Mocha

Costa Coffee

Beyond Coffee

Gloria Jeans

Minerva Coffee Shop Indirect Competitors:

McDonald

Haldirams Global Competitors:

Star Bucks

Tangibility Spectrum

Services Blueprint

7P’s of MarketingProduct• Wide range of products appealing to Indian coffee and

snack lovers.• Indian taste.• Eatables adopted to Indian taste buds like samosa, biryani,

masala sandwich, tikka sandwich etc. Indian taste along with classic coffee.

• Merchandising includes funky stuff like t-shirts, caps etc.

Price• Major customer -15- 29 yrs, Price ranges - 20 to 200.

Minor changes (majorly - government taxes)

Place• Strategically located outlets (High Street/ Family Entertainment Centres).

Promotion

C.C.D. does not look at mass media as a viable area of advertising.• Television (Zee English called Friends, Channel [V]'s Get Gorgeous).• Tickets Sales (IPL).• Movies (Main Hoon Na, Kyun Ho Gaya Na, etc). • Sales Promotion (Offer coupons, Gifts vouchers, Café Citizen Cards).• Café Beat- an in-house magazine.• Tie-up with World Space & Microsense to provide satellite connectivity.

Process• Order process - Based on services (Customer read menu and order).• Flexible delivery process (Customer can go directly, take the order

placed or order delivered on his table).

People• People at C.C.D. believe that “People are hired for what they know but

fired for how they behave”. • Motivation and personal skill are laid emphasis upon.

Physical Evidence• Logo, Colours, Images

1. RED signifies leadership , vitality and passion . The GREEN signifies coffee growing heritage and the coffee plantations that they own. WHITE SWIRL signifies purity of purpose, invigorating properties of growing coffee.

2. Café - larger than the text inside the logo box. Signifies that Café Coffee Day pioneered the café concept in India way back in 1996. C.C.D. would like to own the word “café” in the minds of its customers.

• Décor & Architecture• Literature• Dress Code

New Logo

Porters Five Forces

HIGH

LOW

HIGH

VERY HIGH

VERY HIGH

SWOT AnalysisSTRENGTHS• L

argest retail chain of cafes.

• ISO 9002 certified company.

• Quality and taste.

• Youth oriented brand (40 % population < 20).

• Reduction in cost (Own Production).

• USP of brand - Highly affordable brand.

WEAKNESS• W

eak brand image and lacks strength to maintain brand loyalty.

• Poor ambience and decor. (Prime space - advertising and promotions).

• Wrong site selection - Losses.

OPPORTUNITY• F

astest growing industries in Asia.

• Preferred for informal meetings.

• Gone international

THREAT• C

ompetition with established and International other coffee cafes like Barista, Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.

• Hukka Parlours.

SWOT

Distribution Process• Each outlet serves 400 -800 customers daily

depending upon its size & location.

Factors based on there priority

42%

13%

11%

11%

24%

Factors considered while selecting a coffee shopQuality of Services Items in the menu Pricing Location Ambience

Grading of factors as per there importance

Ambience Quality Pricing Location Brand Advertisements Offers Physical Evidence

0 0 0 0 0

1620

004 4

20

0

36

16

4

44

12

40 40

28

4044

24

12

4

52

28

56

4

16

4444

80

4

1216

4 4

28

Grading of the factors based on there importance when a customer goes to a coffee shop

1 - Least Important 2 3 4 5 - Most Important

Café Coffee Day Rating

Not Satisfied Satisfactory Good Very Good Excellent

4 4

40

28

24

0

20

28

48

44

16 16

52

12

4

24

52

8

12

16 16

20

44

4

Rating to Cafe Coffee Day given by customers on the factors listed be-low

Ambience Location Quality of Product Pricing Service Offered

Online SalesOnline Sales by C.C.D. is also one of the

revenue-earning sources. Products are displayed on its website www.cafecoffeeday.com .

Customers may pay through VISA or Master Card or PayPal.

H.R. Activities• With the boost in the number of their retail outlets, C.C.D. had to

concentrate on the quality and quantity of their human resource in order to meet up with the set standards.

• They make sure that the employees all across the country are well trained and provide consistent services at every outlet.

Recruitment & Selection:• Selection procedure for senior managers is long-drawn and rigorous

but on the other hand for shop floor workers it is simple and short.• People at C.C.D. believe that “People are hired for what they know

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

Some Interesting Facts1. All-Day Refresher, most selling

product of C.C.D. whose selling cost is Rs. 100 has a prime cost of just Rs. 20 & rest all is profit to C.C.D.

2. C.C.D. does not use sugar as raw material in any of its preparations but uses milk cream & Sugar Free as raw material.

3. Ice-creams & other eatables are out-sourced from Amul & local vendors of reputed brands.

4. It is unique in its distribution way where coffee beans are cultivated in its farms at Chikmagalur.

Recognition & Rewards C.C.D. won 8 of 10 awards at India Barista Championship 2009.

The awards are:

1. Platinum Award.

2. Best Espresso.

3. Best Cappuccino – Felix Daniel Mathew, Manager Food & Beverages, C.C.D., Bengaluru.

4. Most Promising Talent – Adwiti Tarkire (C.C.D., Trainer).

5. Silver Award – Sam Rozario (Asst. Manager, Level 1, C.C.D., Chennai).

6. Bronze Award.

7. Best Signature Beverage.

8. Best Barista Technique – Naveen Kumar CA(Trainee Area Manager). Bags the ‘Best Coffee Bar’ title for the 3rd consecutive year. Top honours at Coca Cola Golden Spoon Awards 2010.

Recommendations

1. To improve the interiors and décor.2. To have more and more tie-ups.3. Only 50 % or less than 50 % people find Café

Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Café Coffee Day need to do lot of homework in order to satisfy its customers.

4. It should introduce a feedback form system in order to know about the customers satisfaction level.

Conclusion1. C.C.D. is the fastest growing Café in the country.2. The major competitor undoubtedly Barista.3. That Café Coffee day is planning to go international.4. The other major things regarding service marketing is

that customers give top priority to the quality of the services / products and ambience.

5. It is providing tough competition to its competitors by satisfying its customers with great café experience.

6. “A lot can happen over coffee” message has touched the hearts of youngsters who are the largest consumers of C.C.D.

Sites Referred

http://www.casestudyinc.com/coffee-day-brand-strategy-india

http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm

http://en.wikipedia.org/wiki/Marketinghttp://www.cafecoffeeday.com/http://www.barista.co.in/users/index.aspx

QUESTIONS

Thank You