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Chetana’s Bachelor of Management Studies
Subject: Strategic Management
Topic: Café Coffee Day
Group no.: 3
Submitted to: Prof. Prasanna Sant
Name Roll no.Gaurav Babel
Prince Pandey
Vaibhav GoregaonkarKarthik Nadar 2138
Girija Hirve
Akshaya Surve
Group Members
Introduction
India’s largest conglomerate,
Amalgamated Bean Coffee Trading
Ltd
A 750 crore ISO 9002 certified
company
First to launch the ‘coffee bar’
concept in India
1319 outlets all over India and still
counting..
History
The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka
It was founded by V.G.
Siddhartha
Founder and Chairman
V.G. Siddartha
Mission
To be the best Café chain by offering a world class coffee experience at affordable price
Vision
To be the only office for dialogue over a cup of coffee
Important Events
Important Events (Contd…)
Competitors
Competitors (Contd…)
Indirect competitor
Market Share
60%25%
15%
Sales
CCDBaristaothers
In-house Research
Research shows that while the customers go to them for products, a substantial amount of their customers go there to “hang out” with friends
The café is also venue for business meetings (13%), celebrating special occassions (10%) or just plain timepass (17%)
Key Target Audience
Major chunk of CCD customers fall within the age group of 20 to 30 which accounts for 57% of the overall percentage
The group comprises mainly of college going students and young working professionals
9%
13%
21%29%
28%
Age
more than 30less than 1916-1920-2425-30
Sex ratio and Marital Status
48%52%MaleFemale
There is a definite skew towards singles:
28%
3%
69%
Sales
MarriedothersSingles
Group Sizes
Maximum foot-falls are in group size varying from 3 to 5 people followed by people coming in groups of 2, a major part of which are couples 18%
21%54%
7%
Mostly SingleTwo2 to 5More than 5
Products
Grows the coffee it serves in its cafes
Well-equipped roasting unit
The eatables catered by different vendors
Ice creams – Cream Bell
Milk – Amul
Snacks from local vendors
Sells merchandise trough its stores
Enjoys trust for quality, hygiene and
consistency of food
Products
Price
Affordable prices. Price range starts from Rs. 52 onwards. Only minor changes in the pricing policy due
to changes in Government taxes.
Physical Evidence
Logo :
- Large font- Emphasis on the word Café
- Red signifies Leadership and Passion
-Dialogue box highlights the connection
between 'coffee' and 'conversations'
Architecture and Décor uses bright colours
and interiors according to the youth
Designing of pamphlets posters and menu
to attract the youth
Process
• Ordering and delivery earlier was self service and now most of the coffee shops have waiters to take order and deliver at the table
People
Emphasis on motivation and
personal skills of the people
Friendly waiters and services
Employees follow
international standards of
hygiene, cleanliness and
personal grooming
Reward schemes like
employee of the month
Places
• Prime factor for success-
Located at every possible
location where business can be
generated
• Caters to target market with
strategically placed outlet
Places
• Metros
• Tier – I cities (Jaipur, Kanpur, Surat)
• Tier – II cities (Mysore, Guwahati,
Jamnagar)
• Satellite cities and urban
outgrowths (Navi Mumbai, Faridabad,
Secunderabad)
• To be expanded to Tier – III cities
• Tie-up with Ginger hotel of the Taj
group
Positioning and Brand Image
o Brought café culture to India
o For the youth : Young customers, young and
friendly staffs
o Highest distribution network
o Target middle and upper middle class
o Age group: 15-29
Café Formats
Different café formats :
Books cafes
Music cafes
Highway cafes
Garden cafes
Cyber cafes
Lounge cafes
Promotion
Through SMS
Valentine’s day promotion, “Café Coffee
Day luv zone”
Promotion (Contd…)
Tie ups• Liril, Airtel Friends, etc• HDFC wanted to promote their debit cards
and they chose Café Coffee Day, and debit card machines were fixed in some cafes
Re-Branding
Earlier perceived as a place where
intellectuals meet
Positioned itself as a coffee bar and
maintained that position for long time now
CCD has latent market in youngsters
For youngsters- CCD is a fun place where
one can go anytime of the day and have
fun with friends. In 2002 CCD underwent a
re-branding exercise
CCD spent Rs. 1.5 billion to redesign existing
cafes (2009)
Re-Branding (Contd…)
Strengths
Products of extremely good
quality and taste
It’s youth oriented brand, hence
huge potential since 40% of
the population is below 20
It produces the coffee it serves
hence reducing the cost
USP of brand is its considered a
highly affordable brand
Weakness
The store ownership of the
company might hinder in their
expansion policies
Price of the products is
relatively higher than Java
Green and McDonalds
CCD cafes are small in size
Many of the CCD stores are
incurring losses due to wrong
site selection (National
Highways)
Opportunities
Coffee café industry is one of the
fastest growing industries in Asia
Many people like to visit CCD for
informal meetings
CCD has gone international, and is
planning to attract many new
international markets, hence gaining
international recognition
Changing lifestyle of youth, they like to
spend time lounging
New products
Threats
Competition with other coffee cafes
like Costa Coffee, Barista and
Mochas
Customer trends towards more
healthy ways and away from
caffeine
International players like Starbucks
New entrants and costs
Competitive Strategies
Follows a backward integration of the
value chain
Procures coffee beans from its base in
Bangalore
Quality assurance
Focus on core competence- coffee,
outsources other items
Food items are obtained from local
suppliers- Cost advantage
Values
Pride
Respect
Integrity
Self-Discipline
Motivation
Thank you