CAFÉ COFFEE DAY• Founded in 1996• V.G. Siddhartha, Founder and Chairman• Amalgamated Bean Coffee Trading Company(ABC)• India’s leading coffee chain by 2013 with 60% market share• By 2013, 1,469 cafés( including lounges and squares)• Average footfall: 300 per café per day

VISION“To be the best café chain in the country by offering world classcoffee experience at affordable prices”.

MISSION• To be ranked no. 1 among the service sector• To provide the best quality services to customers at affordable prices.• CCD is aiming to create its own niche merchandising like Indian coffee powder, cookies, coffee mugs and curry paste.

PHILOSOPHY

Its philosophy is to provide world class trendy lifestyle products and experience to its customers and in order to execute it, it has opened some new outlets with the facility of music lounges, book cafes etc.

Competitors and FactsS.No. Brand Name Launch

YearStores Small

cappuccino cost(april,2013)

1. Café Coffee Day

1996 1,469 66

2. Barista Lavazza 2000 175 883. Costa Coffee 2010 100 954. Mocha Café 2001 18 705. Gloria Jean’s

Coffee2008 17 107

6. Starbucks 2012 11 95

1. 1st mover advantage2. Quality service and taste3. Reduced operating cost4. Excellent brand name

and visibility5. Youth oriented brand

1. Lack of individual attention to customers

2. Lacks strength to maintain brand loyalty

3. Crowd management

1. Fastest growing industries in Asia

2. Cheaper varieties of coffee3. Merchandising.4. Tie ups with other

companies

1. Large number of competitors

2. Dependent on govt. commodity rates.

3. Large unorganized market

PROBLEM STATEMENTShould CCD apply “slight course correction” or “ push the the wall” strategy???

Could it wait too long or more aggressive approach was required????

Is Threat from Starbucks legible?????

Comparison between CCD and Starbucks

Decision analysis

Decision options:

1. Slight course correction

2. Aggressive course correction

3. Create a separate premium brand for affluent segment

Decision criteria

1. Growth in affluent segment 2. Sustain growth in line with youth 3. Customer satisfaction level 4. Staff satisfaction level 5. Budget 6. Time

Selecting Decision:

1. Rejecting Slight course correction

2. Rejecting Aggressive course correction

3. Accepting altogether new strategy

Action Plan

For original CCD brand targeting youth segment1.     Focus on “cost leadership” compared to “differentiation” .2.      Upgrade staff selection process3.     Upgrade in-house residential training programme4.     Upgrade food and beverages breadth and quality.5.     Upgrade store interiors and furniture gradually among all stores6. Spend portion of total branding budget to strengthen CCD brand

Action PlanFor new premium brand targeting affluent segment1.      Create a premium brand either organically or inorganically2.      Focus on “differentiation” compared to “cost leadership”3.      Convert existing lounges and square format stores4.      Push premium brand to contribute 25-30% to overall portfolio5.      Implement “Innovative Everything ”6.      Spend heavily in branding.7.      Do necessary price adjustments.