COFFE DAY New22 Final

Marketing Analysis of Café Coffee Day Christ University

MARKETING ANALYSIS

OF

CAFÉ COFFEE DAY

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Chapter-1

Introduction

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INTRODUCTION

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at

Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to the

intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to

instant coffee) coffee café culture in neighbouring international markets grew, the need for a relaxed and

fun “hangout” for the emerging urban youth in the country was clearly seen.

Recognizing the potential that lay ahead on the horizon, Café Coffee Day embarked on a dynamic

journey to become a large organized retail café chain with a distinct brand identity of its own. From a

handful of cafés in six cites in the first 5 years, CCD has become India’s largest and premier retail chain

of cafes with 950 around the country.

In a rapidly growing organization HR forms a major role in introducing new policies,

restructuring old policies to suit the changing trends and implementing the same. At Café Coffee Day the

HR Department holds a very important position linking the various departments of the organisation into

one strong union for effective and various departments of the organisation into one strong union for

effective and efficient functioning. For this they follow a structured process consisting of the acquisition,

development, motivation and maintenance of human resources.

Through their method of acquisition of human resource, the company ensures that it has the right

number and kinds of people, at the right places, at the right time, capable of effectively and effectively

and efficiently completing the work required so that the overall objectives can be achieved.

Competent employees will not remain competent forever. Some are minimally qualified upon

entering the organisation but require additional training or education. Others enter the organisation

capable of performing at an optimal level, but their skills become obsolete over time. In a rapidly growing

environment such as that of Café Coffee Day where change is the name of the game, individual abilities

need to be aligned with organisational need for the future.

Employee training gives individual specific skills that they will use on the job. When human

resources have been developed efficiently, one can expect to have competent employees with up-to-date

skills and knowledge.

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Marketing Analysis of Café Coffee Day Christ UniversityMotivation and ability trigger high performance. At Café Coffee Day the performance appraisal

process and its outcome influence employee motivation. Rewards and punishment that follow the

appraisal also affect motivation.

INDUSTRY PROFILE

The F & B Retail Industry

The three key factors driving the growth of the retail industry in India are:

Disposable income increasing,

The customer becoming more discerning

Real estate prices falling

There are studies that indicate that organised retail will grow from a mere 6 per cent of the total

retail industry to a significant 40 percent by the end of the decade. This is not surprising, considering that

the organised retail sector is growing at the rate of 9.5 per cent per annum.

In addition to the growth in population and consumer spending, spending habits are also changing.

Close to 60 per cent of consumer spending is on food & beverage (F&B). This has not gone unnoticed by

retailers.

Growth in the retail sector has been thus far focussed on Tire 1 cities only. These cities have

mature markets, supported by immense competition, good infrastructure and high consumer awareness.

Retailer focus is now broadening to include Tire 2 cities as well. Operations have been set up in

secondary cities, including Nagpur, Indore, Jaipur, Chandigarh, Lucknow and Kochi.

The key drivers of retail activity are the apparel and F&B sectors. F&B activity has been driven

primarily by coffee house chains. Tea and coffee, once boring commodities, have strong brand aspirations

today. The pioneering venture by a leading coffee-plantation corporate to transform a stuck-in-the-bean

commodity into a youthfully exiting experience by launching in 1996 India’s first fine coffee café on

Bangalore’s upmarket Brigade Road started the coffee café trend in India.

Today, some 950 cafés later, Café Coffee Day (CCD) is not just a brewed-in-India brand. Its

aroma has spread overseas to first Dubai and now Australia.

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Barista arrived on the India coffee-café scene in February 2000. Unlike CCD, the Barista Coffee

Company (BCC) started not in the south but in north India with the idea of providing the consumer the

experience of an authentic Italian neighbourhood espresso bar.

CCD’s cafés and BCC’s bars were followed by the coffee pubs of Qwiky’s. There is even talk of

the almighty Starbucks ‘cafeing’ in India if, as and when the steep duty on important beans is relaxed.

Starbucks has been cited as a very successful example of the blending of the old economy with the

new, the integration of aesthetics, technology and community. Nothing is left to chance in Starbucks from

the beans and the baristas to the ambience of interiors, music and furniture.

The tea-plantation corporates have also got into the parlour act. The Apeejay Surrendra Group has

promoted the Cha Bar which offers cultural preparations like Moroccan Mint and Russian Caravan, apart

from organic tea, green teas, Ayurvedic tea and premium, virginal single-estate teas.

Then there are the “Cha Bars” at Oxford Bookstores, and stand-alones like Gunjan Jindal’s

“Passion – My Cup of Tea”, Kolkata’s “Dolly’s Tea Shop”, Chennai’s “Cup & Saucer” and Bangalore’s

“Infinitea”.

They offer tea-lovers a chance to smell, swirl and taste the finest Indian teas. The menu is

innovative, ranging from Tea Punch (laced with ginger and lemonade) and Mango Tea to Tea Float (tea

with a dollop of ice-cream and honey) and Tea Cocoa!

The spin-offs go far beyond that cuppa tea or coffee! Today, the coffee in India has evolved from

a concept to a brand to a culture.

The fact that coffee cafés are seen as places for youth to hang out, and the high proportion of

repeat customers, has spawned a new kind of advertising. A day could come when the in-café advertising

of lifestyle products targeted at the youth could substantially defray the cost of the cup and overheads!

India’s 950 cafés cumulatively consume only 600 tonnes of the country’s annual crop of 500,000

tonnes. But cafés could consume more and more by evolving into newer forms. Fusion cafés will be the

future where every business enterprise morphs itself into a part-café. A Laundromat will be a café and so

will a petrol-bunk and also a surfing centre. One can now say with conviction that a lot can indeed happen

over a cup of coffee!

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Coffee Day set to brew 3 premium formats

India's biggest cafe chain Coffee Day will unfurl three new premium formats as it brews the next phase of growth. Coffee Day Square, which will become the chain's flagship outlets, will roll-out into four metros over the next six months, specialising in 'single origin' coffees - classic beans sourced from a single estate in a single country across the world - targeted at a more discerning consumer.

Coffee Day Lounge will be cafes where beverage is paired with food, where people "meet over a meal" and not just coffee. The third format, still to be named, may be resembling a cafe nightclub and would look at offering a more vibrant experience with live DJ music and bar-stool seats.

The decade-old Coffee Day, which heralded a cafe revolution in urban India, is also powering ahead with its existing core format that has carved out a place as 'young hangouts'. At present, the chain has 694 outlets and is seen adding 20-25 every month in a slowing market. The 3,000 sqft first Coffee Day Square, the most premium of the emerging formats, is expected to open in Bangalore next month, to be followed by 8-10 more outlets across the four top metros in six months, Cafe Coffee Day director Alok Gupta told ET. "Cafe Coffee Day has been a youth hang-out, now Coffee Day Square will be a 'coffee hangout' for a more discerning, young-at-heart consumer who wants a truly great cup of coffee," he added.

Besides the single-origin brews from around the world, it will also propel India's signature coffees - like Araku Emerald and Rajgiri Pearl - into the cafe culture. "The effort is to take consumers up the value chain and connect them with India's coffee heritage in a contemporary way," Mr Gupta said.

The next in the line, Coffee Day Lounge, will be more focused on the dining experience. "This will be a gourmet format where we will look at food as a separate vertical. Here we will offer diet food, traditional foods and separate offerings for children, among others," he said. The biggest youth puller, however, is likely to be the third format resembling a nightclub, which the company will start rolling out only after six months. Mr Gupta describes this as an outlet where people can "connect standing rather than sitting".

Cafe Coffee Day to have 1000 outlets by year end

India's biggest coffee cafe chain, Cafe Coffee Day (CCD), has just upped its growth target. CCD marketing president Bidisha Nagaraj says the latest plan is to grow from the present level of 790 cafes to 1000 by the end of FY11. This works out to a growth rate of almost 68% for the remaining nine months of the fiscal. If one takes 620 cafes CCD had at the beginning of the fiscal as the base, the growth rate will be a whopping 92%.

"We are constantly revising our target upwards," she says. "We planned to end the previous fiscal with 480 cafes, but exceeded it by over 8% and set up 620 cafes. The basis for our growth strategy for this fiscal is a brand archetype study, which indicates that there is a growing market for CCD in both the 15-29 age group and the 29-plus segment. We are

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averaging 600 footfalls per cafe per day. At present, 80% of our consumers are in the 15-29 age group."

Cafe Coffee Day adds aroma to Karachi

Born in Bangalore, brewing in Karachi. Can Indian coffee add some pep and aroma to Pakistan amid an economic downturn? Amin Hashwani, the CEO of Cafe Coffee Day (CCD) in Pakistan, is hopeful that more people will flock to his cafes in the coming months.

He is wooing young Pakistanis. Regular customers say the best thing about the cafe and #233; is the international standards and the Pakistani prices and some sandwiched designed for local taste.

However, what makes the familiar urban Indian brand look unique is not the price, but the very fact that CCD is possibly the only franchise of its kind operating across the historically troubled border. "Although there are restrictions for investment from both countries, there should be a genuine effort to not just look at trade but long-term investment to create vested interests in maintaining good relationships between the two countries," comments Hashwani, who also heads the Pakistan India Business Forum.

The easier part for the Cafe was brand Recognition in the early days. "Most people who walked through the doors said that they knew about the Cafe and were eager to see what was in the menu," recalls Ajay Solanki, the operations manager.

Cafe Coffee Day to expand in Pakistan

Cafe Coffee Day, India's largest retail coffee shop chain, plans to open 19 more outlets

across Pakistan in the next 12 months after the success of its first venture in Karachi.

"We are opening the second retail outlet in Karachi next week in the posh Clifton area

where we are already operating the first outlet since November 2006. We plan to open 18

more such outlets in the four provinces of Pakistan, covering Islamabad, Lahore, Peshawar

and other cities later this year," Cafe Coffee Day director Naresh Malhotra told IANS here.

Unlike in Vienna where the company already operates two retail outlets on its own, it has

opted for a franchise route in Pakistan to comply with the regulatory framework there and

protect its investments.

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Buoyed by the overwhelming response to our first outlet, we have decided to open the

second one in the same locality to create a cluster for greater visibility, brand promotion

and increasing market share.

With an upfront investment of about Rs.5 million in each outlet, the company plans to make

a cumulative investment of Rs.90 million in Pakistan and create a retail chain as in India.

"We are setting up our kiosks with vending machines at about 120 railway platforms across

the country in the next 12 months to boost consumption of our coffee varieties and brands,"

The company is also in talks with two more low-cost air carriers to extend its reach beyond

Air Deccan and Go Air in airline catering.

COMPANY PROFILE

Café Coffee Day

Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated

Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 750

crore ISO 9002 certified company. Coffee Day sources coffee from 10,500 acres of coffee

estates, the 2nd 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 USA, Europe &

Japan.

With its roots in the golden soil of Chickmaglur, the home of some of the best

Indian Coffees and with the vision of a true entrepreneur nurturing it, 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 604 Coffee bean and powder

retail outlets), Coffee Day Xpress (which owns 541 Coffee Day Kiosk), Coffee Day Take

away (which owns 10,000 Vending Machines), Coffee Day Exports and Coffee Day Perfect

(FMCG Packaged Coffee) division.

3.1 The following are ABCTCL’s 6 divisions:

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- Coffee Day Exports

Amalgamated Bean Coffee Trading Company is one of the largest exports of green

coffee from India since 1999. They currently export over 30000 tones of green coffee per

annum, i.e., 15% of India’s coffee exports. ABC has invested well into R&D on coffee

quality that supports the domestic promotion of various blends of coffee and augments

export activities. Their markets include large rosters, traders, and Food & Beverage

companies in major important nations such as Europe, USA, Japan & the UAE.

Procurement & Curing Works

Among ABC’s biggest strengths are the two curing works, strategically located in

Chikamangalore and Hassan with a combined installed capacity of a million bags.

These curing works aid in enabling complete control over grading standards and

flexibility thus ensuring quality and efficiency.

A highly disciplined and dedicated network of over 65 agents who operate

throughout the major coffee growing areas of India form the back bone for the coffee

procurement chain.

ABC’s vertically integrated infrastructure ensures that the coffee never need to leave

the able hands of ABC until final dispatch / shipment

UTZ KAPEH Certification

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ABC is the first UTZ kapeh certified coffee producer from India and the first

Arabica Coffee certified producer from Asia.

It has been their constant endeavor to promote responsible coffee production and sourcing,

while working towards enhancement of social, environmental, managerial and economical

conditions of coffee farmers.

UTZ Kapeh Certification is a significant step forward in the company’s efforts to

address the issue of better returns for the grower community while bringing out a product

which suits the present as well as the future needs of business environment.

- Café Coffee Day

Café Coffee Day (CCD) pioneered the café concept in

India in 1996 by opening its first café at Brigade Road in

Bangalore. Till about the late 1990’s coffee drinking in India was

restricted to the intellectual, the South Indian traditionalist and the

five star coffee shop visitor.

Recognizing the potential that lay ahead on the horizon, Café Coffee Day embarked

on a dynamic journey to become a large organized retail café chain with a distinct brand

identity of its own. From a handful of cafés in six cites in the first 5 years, CCD has become

India’s largest and premier retail chain of cafes with 607 cafes in 98 cities around the

country.

Each café, depending upon its size, attracts between 400 and 800 customers daily

with majority of them falling in the 18 – 35 year age bracket.

- Coffee Day Fresh & Ground

A major player in the roast and ground filter coffee

segment, Fresh ’n Ground provides a unique assortment of

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blends at affordable prices. The coffee is freshly ground in the presence of the customer and

sold to him. Tea Day, a specially branded premium tea, has been recently introduced.

Fresh 'n Ground has a chain of over 400 exclusive outlets in the States of

Karnataka, Tamil Nadu, Andhra Pradesh and Kerala.

Presently Fresh 'n Ground has over 22 exquisite blends of coffee on offer across all

Fresh 'n Ground outlets, and is one of the fastest growing filter coffee brands in India.

These outlets have been converted into one stop shop for tea and coffee beverage, varieties

of coffee and tea powder, specialty coffee, accessories like coffee filters, mugs, etc.

Institutional Sales

Coffee Day Fresh ’n Ground caters to the need of several prestigious institutions in

Bangalore and Chennai. Coffee Day Fresh ’n Ground supplies specially blend coffee

powder tailor made for institutions (Hotels, Factories, etc.)

As a part of its commitment to educate the customers on preparation of a good cup of

coffee, Fresh ’n Ground regularly conducts brewing workshops to help them benefit in

terms of cuppage, costing, brewing methods, etc.

The convenience in delivery and attractive incentives make it a very attractive option.

- Coffee Day Vending

To serve the man who does not compromise on quality… Coffee Day has its

vending machines placed at vendor outlets in all major cities to cater to those who have

little time to spare but who never compromise on the quality of the coffee they drink.

The Coffee Day Take Away initiative is a virtual revolution in dispensing coffee.

For the first time, it makes freshness a part of the vending machine proposition. Only the

freshest ingredients are used and strict control is maintained to ensure that every cup

delivers the satisfaction of a freshly brewed cup of coffee.

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The Coffee Day Take Away vending machine initiative delivers what the consumer

has been missing till now – authentic filter coffee and fine tea made available conveniently.

Coffee Day vending machine offers a repertoire of various products: Authentic filter

coffee and Special Assam tea.

- Coffee Day Express

Strategically positioned kiosks where a customer

can not only have a cup of coffee but also grab bite.

Xpress bridges the need gap between the leisurely cuppa , a bite at the café and a quick

drink at a vending point.

Coffee Day Xpress was launched on the 26th of February, 2003 at Bangalore. Xpress

serves exotic shakes, cold and hot coffees and hygienic ready to eat food for people on the

move. Xpress gives emphasis to the quality and the freshness of the product as well as the

affordability.

Coffee Day Xpress provides quick and delightful service. It presently has 300

outlets across 13 cities in India and is still growing….

- Coffee Day “Perfect”

OBJECTIVE

To provide the consumer a superior coffee-chicory blend that he or

she has been drinking till date

A superior product than what others have been offering

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To be available in every possible retail outlet which ensures convenience and ease in

availability

To provide the best quality of coffee- chicory blend at value for money prices.

What makes Coffee Day Perfect so special?

Coffee Day Perfect is a superior filter coffee with a unique blend of 57% coffee and

43% chicory.

Coffee Day Perfect is superior blend of beans handpicked from our own estates in

Chikmagalur, roasted & ground to give you that perfect taste you’ve never experienced

before.

One of the unique attributes of the product lies in the 57% coffee & 43% chicory blend

as against the commonly available 53% coffee- 47% chicory blend in the market. The blend

has been put together by our expert blend-master.

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3.2.1 CAFÉ COFFEE DAY – MISSION AND VALUES

MISSION

“TO BE THE BEST CAFÉ CHAIN IN THE COUNTRY BY OFFERING A

WORLDCLASS COFFEE EXPERIENCE AT AFFORDABLE PRICES”

VALUES

The PRISM represents the values of Café Coffee Day. Just as white light passes

through the prism and gets transformed into myriad different colours, similarly, the human

character gets transformed while imbibing the right values. That is when a complete person

is born.

PRIDE – I take pride in my work and in my organisation.

RESPECT – I respect my customers, my subordinates, my peers and my superiors.

INTEGRITY – I will show the highest level of integrity towards my work and my company

under all circumstances.

SELF DISCIPLINE – I will imbibe and practice self-discipline in all my daily activities.

MOTIVATION – I will always be motivated to give the best for my organisation, my team

and my customers.

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3.2.2 CAFÉ COFFEE DAY – THE LOGO

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Significance of the Colours:

Red Square= Leadership, passion

White Swirl = Purity of purpose, invigorating properties of coffee

Green Stroke = 125 years of coffee growing heritage of this vertically integrated Group

Significance of the Text:

‘Café’ is noticeably larger than the rest of the text in the logo box as it denotes that Café

Coffee Day pioneered the Café concept in India. The word ‘Café’ must remind customers

of Café Coffee Day.

Significance of the Font:

The font used for “Café” is called SLURRY. The font looks as though the letters have

been congealed out of a liquid and that word is still forming and evolving into something

new and better.

“Coffee Day” has been written in the stylized font called REVUE and is the same as in

the earlier logo to maintain the link with Coffee Day, its sister brand.

Significance of the Swirl:

The upward swirl inside the logo stands for the invigorating and uplifting nature of

coffee and the ambience at Café Coffee Day.

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3.2.3 THE NEW CAFÉ COFFEE DAY – THE LOGO

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Significance

The new trendy ‘dialogue’ logo symbolises the essence of what a Café Coffee Day

café is all really all about – a perfect place to ‘relax and dialogue.’ And as we all know, a

lot does happen over coffee.

The new café coffee day logo came into effect from 7 Oct 2009. Cafe Coffee Day is

changing everyday. Where you will find the same great drinks and snacks, but surrounded

by a fresh new look to inspire the free – spirited moments of creativity and fun you

experience at Café Coffee Day.

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3.2.4 CAFÉ COFFEE DAY – BASELINE

“A LOT CAN HAPPEN OVER COFFEE”

The baseline is derived from the Brand Positioning Statement. It signifies a promise

to the customers and it is a promise that all of us at Café Coffee Day must keep with oneself

through providing great service, great ambience and regular events and promotions, giving

our guest the perfect setting to meet up with friends, family and colleagues.

Café Coffee Day is unique, rich and wonderful and best described in the theme line

“A lot can happen over a coffee”. Indeed a lot does happen over coffee… friendship, love,

ambition, dreams, world shaking ideas, codes, plays, songs, poems… or just that most

special human interaction, two friends savouring a moment called Life.

3.2.5 CAFÉ COFFEE DAY – PRODUCT PROFILE

HOT COFFEE

Espresso: Strong black coffee ...no frills

Espresso Americano: Lighter espresso for mellow moods.

Solar Eclipse: blend of cappuccino with chocolate swirls and spicy overtones.

Macchiato: Expresso topped with milk foam.

Cappuccino: The hottest selling item,prepared in true Italian style.

Cafe Latte: Espresso with milk. A light coffee.

Chococinno: A sinful combo of chocolate ice & hot coffee.

Cafe Mocha: Hot coffee with a swirl of chocolate.

Irish Coffee: Whipped cream tops the flavour of your choice. Plunge deeper and discover

light espresso.

Caffeine kick

Black velvet

Take Away Regular/ Large

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INTERNATIONAL COFFEE

Ethiopian Qahwah: Delightfully flavoured and aromatic with dark chocolate overtones.

Kenyan Safari: With the bright, striking flavour of blueberry.

Aztec: blend of imported coffee beans topped with steamed and foamed milk

COFFEE ADD ONS

Honey

Flavoured Syrups: Try hot coffee with specially imported

flavours.

Red Eye: An additional shot of espresso. For strong coffee.

Whipped Cream: Snowcap your coffee with some lightened

cream

Scoop of Ice Cream

Chocolate sauce

COLD COFFEE

ICE BLENDED COFFEE:

Cold Sparkle: Chilled coconut - flavoured coffee

Tropical Iceberg: Chocolate flavoured coffee with crushed ice

Arabian Heights: Distinct flavour of cardamom, stimulating from the first sip

Tropical Temptation: Tropical Ice Burg with Whipped Cream

Iced Eskimo: A chiller to the core. This is as good as coffee can get

And the Winner is..Kaapi Nirvana: Presenting the Indian coffee that won the silver

medal in the world Barista Championship,2002

COFFEE ON THE ROCKS:

Mochachillo: A swirl of chocolate, espresso and rich creamy milk served on the rocks

Cappachillo: Espresso with rich creamy milk, served with floating ice cubes

Vegan shake: Our Speciality. No animal Fat. A chilled coffee shake with soy milk.

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CREAM BLENDED COFFEE:

Cafe Frappe: Ice cream and coffee blended to smooth, creamy

perfection

Almond Frappe: Almond Flavoured rich, Creamy Cold Coffee with

Whipped Cream, garnished with almond flakes

Devils Own (frappe+ choc. Sauce + cream): A smooth blend of

cream & coffee, drenched with Chocolate sauce,topped up with a

shot of Whipped Cream and Coffee beans

Choco Frappe (frappe +ice cream +choc sauce): Frappe with vanilla ice cream &

Chocolate sauce

FRUIT FRAPPE:

Mango Frappe

Strawberry Frappe

Pineapple Frappe

Litchi Frappe

Cold Chocolate

HOT CHOCOLATE:

Lots and lots and lots of Chocolate

TEA:

Assam Tea: Premium tea from the misty hills of Assam.

Masala Chai: For that ethic feel

Lemon 'n Ice Tea: Chill out

Strawberry Ice Tea

Hot Lemon Tea

POWDER COFFEE

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Dark Forest 200gms/500gm: India's first special, high altitude, single-origin coffee.

Arabicaah: Cafe blend

Perfect: Ultra Rich

Charge: Bright

COOL DRINKS

SMOOTHIE:

Mango Colada: It is a mango smoothie with a real taste of garden

fresh Mango

Strawberry Colada: A rich strawberry shake. With whipped cream

GRANITAS:

Blood Orange: It is blood orange Granita.With a real taste of

Juicy Orange

Cool Blue: Granita with blue Curacao

Pineapple Crush: It is a pineapple granita. Flavored with

juicy pineapple

CREMOSAS (SODA)

Litchi

Ginger Spice

Pina Colada

Banana 'n Walnut

Banana Chocolate Mousse

Banana Caramel pie

Butterscotch Gateaux (100% veg)

Black Forest Gateaux

Chocolate / Walnut Brownie

Chocolate Doughnut

Chocolate Fantasy

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Chocolate Mousse

Chocolate Cake

Cookies

Date & Walnut Cake

Fresh Fruit Gateaux

Mocha Magic / Pastry

Marble Cake

Mousse au Chocolate

Pineapple Gateaux

Qahwah Slice

ICECREAMS

Vanilla

Chocolate

Seasons Best

COOL REFRESHERS

Fruit Juices: Orange & Apple flavour

Mineral Water

SUNDAES

Chocolate Fudge

Choc-a-Vloc

Vanilla Sundae

QUICK BITES

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VEG:

Veg Samosa

Veg Puff

Veg Quiche

Veg Pizza

Veg Croissant

Veg Burger

Veg S/W

Veg Masala Sandwich*

Veg Submarine

Potato Cutlets

French Fries

Veg Kathi Roll

Rustica Chesse s/w

Foccaccia veg s/w

Spicy veg S/W

Multi Grain Veg S/w

Veg Ciabata

NON VEG:

Chicken Samosa

Chicken Puff

Chicken Ciabatta

Chicken Quiche

Chicken Wraps

Chicken Pizza

Chicken Croissant

Chicken Burger

Chicken Sandwich

Chicken Masala Sandwich

Chicken Puff Roll

Chicken Kathi Roll

Garlic Chicken Sandwich

Chicken Tikka Sandwich

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Chicken Submarine

Multi Grain Chicken S/W

Foccaccia Chicken s/w

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FUNCTIONS

To communicate to customers about new product launches and changes in café operations

Brand positioning and all brand building activities that result in increase sales and greater

visibility

Various sales promotion activities and tie ups

Designing and maintaining merchandise

Tracking loyalty programmes and promotions at the café to help maximize sales

Bringing out Café Beat, a monthly tabloid circulated in all cafés across India.

To handle customers feedback through feedback forms, mails and telephone

As u can see, the marketing department of Café Coffee Day plays an important role. It

is the responsibility of the marketing department to take care of the advertising of the new

products and latest offers. Also to bring an awareness among the consumers about these offers.

This department is also responsible for the Brand positioning and all brand building activities

that result in increase sales and greater visibility. They also plan up for various sales promotion

activities and tie ups. The innovative ideas of designing and maintaining merchandise is also

handled by them

Café Beat, a monthly tabloid circulated in all cafés across India to the latest buzz in

their respective towns and also collect feedback from the customers regarding the service,

innovation and other aspects, that make Café Coffee Day the second largest Café shop in the

world

3.2.8 CAFÉ COFFEE DAY – FORMATS

Café Coffee Day has been experimenting with café formats for quite sometime.

Backed by the motivation of providing customers with exciting choices as well as constantly

redefining ‘the café experience’, CCD has ventured into the following formats:

Music Cafés provide customers with the choice of playing their favorite music tracks on the

Digital Audio Jukeboxes installed at the café! There are around 85 cafes with such jukeboxes.

32 cafes also provide customers with the visual treat of watching their favorite music videos by

means of Video Jukeboxes.

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Book Cafés offer the perfect solution to people who think that the coffee experience is

incomplete without browsing through the bestsellers or reading a classic. CCD’s book corners

accentuate the age-old combination of ‘coffee and books’. This exciting concept has been

successfully tested at 15 cafes in 12 cities across India and the numbers are set to grow

exponentially. CCD has tied up with English Book Depot; one of India’s leading book

distributors for placement and rotation of reading materials appealing to Café Coffee Day’s

discerning customers.

Highway cafés on the Bangalore – Mysore highway and NH-8, presents the traveler en route

not only with good coffee and scrumptious snacks amidst great ambience but also with clean

restrooms to get rid of that weariness from the road!

Lounge cafés at Hauz Khas, Delhi and Southern Avenue, Kolkata (Southern Avenue) and

Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the lively ambience

and comfort of a café. With exquisite interiors, exotic menu and thematic music CCD Lounge

offers a whole new experience to the connoisseur while assisting the latter through its team of

hostesses who are poise and style incarnate and are looked upon as fashion icons.

Cyber cafés at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi combine the

urge to surf, not to mention get connected through the internet while enjoying perfectly brewed

cups of coffees, both domestic as well as international blends.

Garden cafés at M.G Rd, Bangalore and GKII, New Delhi combine the joy of rejuvenating

amidst verdant landscapes and pots of coffees.

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3.2.9 CAFÉ COFFEE DAY – FUTURE PLANS FOR GROWTH

Café Coffee Day plans to open 50 outlets in the overseas markets this year, besides

expanding its chain from 200 to 500 by the year 2007. The company plans to open 50 cafés in

five cities abroad in the current financial year.

The company is also talking to public sector oil companies for opening outlets in the

premises of dispensing points in cities and along the highways.

Café Coffee Day, which plans to invest around Rs 25 crore (Rs 250 million) in

expanding the chain each year, experts its revenue at Rs 100 crore (Rs 1 billion) by the end of

the next financial year.

- 28 -


ACHIEVEMENTS AND LAUNCHES

CCD bags the ‘Best Coffee Bar’ title for the 3rd consecutive year.

Café Coffee Day takes top honours at Coca Cola Golden Spoon Awards 2010

Stimulating beverages to keep you warm during the Winter

SaReGaMaPa over a cup of Coffee …

CCD opens its second café outlet at Badnera Road

Friendship Day release July 09

Combo Carnival at CDS April 09

Shadows Menu launch January 2009

- 29 -

http://www.cafecoffeeday.com/index.php?option=com_content&view=article&id=79&Itemid=73#8










Cafe Coffee Day has been awarded as the Best Coffee Bar in Ahmedhabad

by Times Food Guide for the 3rd Consecutive year.

- 30 -


MEDIA COVERAGE

Café Coffee Day takes top honours at Coca Cola Golden Spoon Awards 2010

Mumbai, March 05, 2010: India’s largest café chain Café Coffee Day (CCD) continues its leadership as an iconic retail brand whose dynamism and popularity have won it respect and admiration from both consumers and rivals. In a latest of a series of honours, the chain was conferred with the title of the Most Admired F&B Retailer of the Year: Cafes, Juice Bars and Parlours at the glittering third annual Coca Cola Golden Spoon Awards ceremony in Mumbai last night. CCD won in the same category at the 2009 Coca Cola Golden Spoon Awards as well.

Café Coffee Day fought off competition from four other finalists in the above mentioned category: Barista, Jus Booster Juice, Costa Coffee and Baskin Robbins.

The Coca Cola Golden Spoon Awards -- IMAGES awards for excellence in food retailing, were part of the ongoing annual food industry conclave Food Forum India at The Renaissance, Mumbai. Incepted in 2008 by the IMAGES Group, Food Forum India is India’s largest gathering of food manufacturers, marketers, retailers and support organisations in India, and includes an exhibition, conferences and the awards ceremony. Year 2010 marks the third year for both Food Forum India and the Coca Cola Golden Spoon Awards.

During fiscal 2009-10, Café Coffee Day has taken its retail presence to 882 outlets across the country, which is a growth of nearly 16 per cent over the previous fiscal year. The chain was ranked as the most likely winner by the industry due to its continuous and significant marketing initiatives through the year.

Besides CCD, 12 other food & grocery retailers, F&B brands and professionals received trophies in recognition of their achievements in the past year at the awards ceremony.

- 31 -


There’s an inviting ar oma in the air and it’s intoxicating!

Café Coffee Day launches ‘Layers’- Stimulating beverages to keep you warm during the Winter

Mumbai, November 06, 2009: The mercury around town has started dipping and the winter has started to set in. Warm up with Café Coffee Day’s (CCD) ‘Layers’ – A new range of signature coffee’s that will help you keep a check on the chill during the winter. CCD, the chain that offers refreshing moments to millions across the country now introduces arange of four special new offerings that are designed to beat the chill out of the winter!

Wake up and embrace the morning. Start your day on the right foot with Chocolayers - Hot choco-latte infused with hints of aromatic cinnamon, or you could try the Arctic Sun -Layers of vanilla ice cream laced with dark chocolate sauce, served with a double shot of espresso. It’s a bubbly symphony of Mocha and Java as hot and cold come alive together. A truly perfect way to start your day full of energy and feeling coffee fresh. Compliment your long and chilly evenings with Level Three - Irish crème flavoured Kaapi and spicy overtones come together to envelope you with warmth – just like your favourite cardigan. End your day with a Winterberry - A thick strawberry shake blanketed by pulpy mango puree. Its beyond doubt, winter’s chill in a glass. All these treats specially crafted for the connoisseur in you.

The ‘Layers’ range of coffees is available across the country at all Café Coffee Day outlets.

Commenting on Café Coffee Day’s latest introductions, Alok Gupta, Director, Café Coffee Day, India said, “At Café Coffee Day we are committed to enhancing the coffee experience for consumers through exciting new offerings. The ‘Layers’ range of beverages is a recognition of the fact that every season needs a specialized offering both in terms of the ingredients as well as taste. This new range of winter beverages is designed to tantalize the mind and refresh the senses and we look forward to our customers enjoying the winter with our new offering.”

- 32 -


SaReGaMaPa over a cup of Coffee …

November 5, 2009: Always tuned to its customer’s needs, Café Coffee Day, India’s premier and largest chain of coffee cafés, had its discerning customers meet the next generation play back singers, Parthiv Gohil & Deepali Somaiyya of Hero Honda Sa Re Ga Ma Pa Mega Challenge fame over a cup of coffee at the Hari Om Café in Ahmedabad today.In tune with the pulse of the younger generation, Zee TV’s decade old show Hero Honda Sa Re Ga Ma Pa Mega Challenge along with Café Coffee Day will run a joint contest for a period of one month. The contest will be spread across 160 cafes in the country, wherein one lucky CCD customer will get a special invite to be on the show.

Alok Gupta, Director, Café Coffee Day, India, says “We believe that talent platforms hosted by TV channels are a very strong and effective medium to connect with our young and young at heart audiences. This alliance made for great value addition to our customers as it gave them an opportunity to meet with their favourite upcoming stars where after all, the café environment is all about fun and excitement. We are glad this activity gave our customers yet another reason to visit their favourite café”.

- 33 -


Friends are the best accompaniment with a great cup of coffee!!! Café Coffee Day launches ‘The Greatest Friends on Earth’ campaign

Mumbai, 27 July, 2009: Café Coffee Day, the chain that serves refreshing moments to millions across the country celebrates ‘Friendship Day’ by launching ‘The Greatest Friends on Earth’ campaign - a collection of true friendship brews. Inspired by the classis friendships of our time; the coffees are teamed up with their most complimenting eats.

At Café Coffee Day, strangers are just friends waiting to happen… and all it takes is aFriendzy Chill (chilled chocolate shake with crunchy almond flakes), the Warm Shake(soothing crunchy café au lait topped with cookies crumbles) or the Awesome Amigos (a serving for four – that will help you bond over 4 Cappuccinos, 1 Chicken Tikka Sandwich, 1 spinach Corn Sandwich and 2 Chocolate Brownies). The offerings are designed in such a manner that one cannot be spelt without the other; there are the hot coffee or cold coffee combinations with delectable desserts and special coffee and eats combinations for even a group of four friends.

The idea is to invite all customers to come into the café along with their favourite buddies and spend quality time over food and beverage that absolutely compliment their friendly banter!!!

A bonus for those billing more than Rs. 200/- (+ taxes) free gifts will be added to enhance their friendship quotient.

Also for this friendship day CCD has introduced e-voucher which enables a person to send a gift voucher to their friends through the internet

- 34 -


Café Coffee Day launches value-for-money menu at ‘Coffee Day Square’Announces the Combo Carnival for Rs. 249/- only!

Bangalore, April 29, 2009: With prices soaring all around and disposal income getting sparse, Café Coffee Day, the largest chain of coffee cafes that offer refreshing moments to millions across the country launches a whole new menu that offers a value-for-money proposition.

The Combo Carnival is being launched at Coffee Day Square (Vittal Mallya Road), the flagship cafe of Café Coffee Day. Priced at just Rs. 249/- only, the Combo Carnival caters to both, veg and no-veg customers.

The 5 course menu comprises; starters, the main course, accompaniments, coffee and dessert. A true value-for-money offer.

For Starters, pick from Devilled Potatoes, Tossed Salad or Bean Layonnaise. The scrumptious Main Course spoils one for choice, there are Roasts & Curriers (Roasted Chicken / Curried Chicken / Paneer Shaslik / Mixed Veg Curry), Pasta (Tri Coloured Pasta in rustic sauce, Veg & Non-Veg), and Sandwiches (Garden fresh Muesli Sandwich, Veg & Non-Veg). The tantalizing Accompaniments – be it Okra Rice, Wok Tossed Rice and Herb Ricethat perfectly compliment the main course. To end the meal a Dessert of a gooey Browniewith a cup of single origin Rajgiri Pearl or Araku Emerald is a perfect way to end a delectable meal.

Commenting on the launch of the Combo Carnival Bidisha Nagaraj, President, Marketing, Café Coffee Day said, “At Café Coffee Day, we are committed to giving our customers the best value experience at all times. The Combo Carnival is an endeavour to encourage people to experience a Coffee Day Square offering. We look forward to our customers enjoying this new offering and hope to bring many more of the kind in the future”.

- 35 -


There’s an inviting aroma in the air and it’s intoxicating!

Café Coffee Day launches ‘Shadows’- coffees inspired by Time For every occasion of the day

Mumbai, 15th January, 2009: Café Coffee Day, the chain that offers refreshing moments to millions across the country now launches ‘Shadows’ – Coffees inspired by Time that are all set to enhance the romance of the brew; coffees for different times of the day.

Everyday, as our lives get more hectic, mornings merge into afternoons into evenings. Shadows sway as the sun moves across the sky and we ignore their beauty. Café Coffee Day urges consumers to take a moment and cherish the uniqueness that every moment of every part of the day brings with it. The connoisseurs of coffee are once again tantalizing the taste buds and intoxicating the senses with the new range of coffees designed to suit every meal, be it breakfast, lunch or dinner.

The different times of a person’s day brings in different moods and feelings. Thus it is important that what we consume by way of food or beverage suites that time of the day and enhances the experience and lifts our spirits. It is observed that one tends to feel more energetic and refreshed in the mornings after a good night’s sleep; the afternoons usually tend to bring in a certain amount of fatigue whilst the evening sets in that mood of wanting to be with someone/socialize and end the day with a healthy supper. Keeping these changing moods at different times of the day in mind CCD has crafted a new range of coffees after detailed research.

The new range of coffees is available across the country at all Café Coffee Day outlets from 15th January onwards.

Wake up and embrace the morning. Start your day on the right foot with a Morning Glory(double shot of espresso, sweetened and spiced… on the rocks!) or a First Light (rich caramel sauce, espresso with a swirl of cream), the perfect way to start your day full of energy and feeling coffee fresh. Compliment your long seeming afternoons with a lunch and a Solar Eclipse (Cappuccino with spicy tones & Chocolate swirls) or the Summer Breeze(Coffee on the rocks with milk foam). Now you can rejuvenate those long days with a Yellow Caramellow (Coffee with rich caramel sauce & fruity banana flavouring dressed with whipped cream) or a All-Day Refresher (Creamy cold coffee with the crunchiness of cookies). End your day with a Sunset Brew (Sinful combination of dark chocolate brownie with the richness of coffee). All these treats specially crafted for the connoisseur in you.

Commenting on Café Coffee Day’s latest customer value initiative, Bidisha Nagaraj, President – Marketing, said, "At Café Coffee Day we are committed to enhancing the coffee experience through continuous research and development. The new range of coffees is a recognition of the fact that every mood and day part needs a specialized brew both in terms of the ingredients as well as the end taste . These new Coffees are designed to arouse the senses and compliment the different moods of the day. We look forward to our customers relishing this offer.”

- 36 -


FAN FOLLOWERS

Café Coffee Day in India is today the largest aggregator of youth and is the preferred hangout for the young and young at heart.

CCD helps brands reach out to this captive audience with communication elements strategically placed at the café. With an average dwell time of 45 minutes, these elements get undivided attention as compared to any other medium today.

CCD has successfully executed a number of campaigns for various brands across a wide spectrum like FMCG, white goods, telecom, education and many more categories to meet their brand objectives and thus has proved to be a strong alternative to conventional media properties.

The opportunity to get your brand message across to our customers in a very subtle yet effective method is limitless. From large wall spaces which can attract the customer with eye catching brand messages to 3D table stickers, to branded tissue papers, the list is endless. We are also trying to continuously innovate and offer the best possible options to create a successful campaign.

CCD offers you the option to deliver an well rounded brand experience if the youth happens to be your target customer. To know more and for a peep into our past partnerships, you could download a presentation from this.

To get us working on one of your requirements to reach our customers with your needs, please get in touch with any of us below

- 37 -


come the largest youth aggregator, and from a marketing stand point, the success has come by

focusing on the 3As: Accessibility, Affordability and Acceptability.”- Bidisha Nagaraj, the

Marketing president of Cafe Coffee Day

“Although demographically, a typical consumer would be male or female between 15-29 years

of age, belonging to middle or upper middle class, we call our consumers young or young at

heart. We are about juke boxes, good and affordable coffee and food. The brand fit is with

youth or the young at heart. So we often look out for brands that are aspirational in nature.” –

Sudipta Sen Gupta, Marketing head, Café Coffee Day.

CCD – an established brand image in India

Cafe Coffee Day (CCD) has an established brand image in India and ranks No 2 in the Brand

Equity’s Most Trusted Brands 2009 survey – in the food services category. Rival Barista is

at No 5. CCD has been able to make a connection with the Indian consumers, predominantly

among the youth. CCD is the market leader in India and was awarded the‘Exclusive Brand

Retailer of the Year’ by ICICI Bank in its Retail Excellence Awards 2005 for the organized

retail sector.

CCD’s wide network – the anytime, anywhere cafe

CCD has been able to make its brand presence felt through the sheer number of stores. CCD

has 720 cafes at present and it has ambitious plans to launch more than 1000 cafes by the end

of the current financial year. This means launching one store every other day which is not

surprising from a company which launched a cafe (in 2005) in Vienna, the coffee capital of the

world. CCD also has three cafes in Vienna, and two in Karachi, Pakistan. Lagging behind CCD

in the Indian market, Barista has about 200 cafés, Java Green (around 75 cafés) and Mocha

(around 25 cafés). The Indian organized sector has potential for around 5,000 cafés but fewer

than 1,000 cafés exist currently.

- 38 -


SWOT ANALYSIS

Strength

Café Coffee Day started the café concept in India and is the strongest café coffee brand in

India.

Brand acceptance by youngsters.

Café Coffee Day makes the coffee that it serves.

The café outlets are situated at strategic locations keeping in mind the target customers i.e.,

the college goers and the middle and upper middle class crowd.

The cleanliness and adherence to hygiene ambience and the bright décor draws a lot of

people to the outlets.

Consumers readily accepting the transition from a conventional and out-dated coffee house

to a more sophisticated and trendy coffee bars.

No competition among the coffee chains as their main focus is the sustenance and growth

of the coffee culture.

Employees at the café level are made to feel socially on par with the customers so as to

enable them to communicate better with the customers.

Weakness

The brand awareness is not as high as that for major food chain players on a global upfront

such as McDonalds, Sub - way and KFC.

The merchandise at Café Coffee Day has not created waves as a unique brand in itself

especially its range of T-shirts and caps.

Opportunities

Café Coffee Day has just ventured into the international market but with strategic planning

it can expand its market base abroad even more.

Expanding its range of products to more unique coffee blends.

Threats

If the steep duty on imported coffee beans is relaxed then Starbucks, the global coffee

conglomerate will march into India.

- 39 -


Tea plantation corporate are in the act of re-introducing tea as a trendy, social health

beverage to that of the coffee in the days to come.

Example: Cha Bar

- 40 -


Chapter 2

Design of the

Study

- 41 -


2.1 STATEMENT OF PROBLEM

A survey on the marketing aspect of Café Coffee Day.

2.2OBJECTIVES OF THE STUDY:

2.2.1 PRIMARY OBJECTIVE

To study on the marketing aspects of Café Coffee Day.

2.2.2 SECONDARY OBJECTIVE

To find out the degree to which the marketing department of an organization is

involved in implementing innovative changes related to satisfaction of the customers.

To find out the perception of various attributes attached to the consumer satisfaction.

To determine the degree to which innovation in the environment of Café Coffee Day

has lead to increase of customers and increase in productivity.

2.3 SAMPLING DESIGN:

2.3.1 SAMPLE UNIVERSE

The sample universe includes all the existing Café Coffee Days.

2.3.2 SAMPLE UNIT

The sample unit includes all the existing Café Coffee Day’s in Bangalore.

2.3.3 SAMPLE SIZE

The study is restricted to 100 customers of Café Coffee Day in Bangalore.

2.3.4 SAMPLING TECHNIQUES:

Convenience sampling.

- 42 -


2.4 DATA COLLECTION:

2.4.1 PRIMARY DATA

Primary data will be obtained through an interview scheduled through questionnaire

designed with rating – scale, open – ended and close – ended questions that will be logically

framed basically aimed at achieving the objectives of the study.

2.4.2 SECONDARY DATA

Secondary data will be obtained through information from the company, previous

literature, reports, newspapers, reference books, magazines and websites.

2.5 STATISTICAL DESIGN:

The collected data will be classified with the help of statistical tools like percentages,

arithmetic mean and correlation for the purpose of analysis. Data will then be analysed and

inferences were drawn from the analysis. Findings will be illustrated in the form of tables,

graphs and charts whenever necessary. Also SPSS software can be used for providing the data

for perception mapping.

2.6 LIMITATION OF THE STUDY:

Study limited to Bangalore City.

Biased responses from the respondants.

The sample size is small. A better analysis would be carried out with a larger sample

size.

The study is undertaken only in certain Coffee Day’s and would not compromise all the

Coffee Day’s.

Hesitation of the management to provide accurate information about customer taste and

preferences.

All limitations pertaining to the tools applied to a analyse the data collected will also be

applicable for the study.

- 43 -


Chapter-3

Analysis and

Interpretation

- 44 -


4.1 Respondent’s Profile

The respondents profile consists of the age group, income group and the gender of the

respondents who visit Café Coffee Day in Bangalore.

4.1.1 Age Profile

Age Group No. of respondents

< 30 50

31 to 45 25

46 and above 25

The age group consists of three categories as shown in the figure. The age group

classification implies the broad categories of the customers who visit Café Coffee Day and the

similarity in the thinking patterns and outlook of the customers.

- 45 -


4.1.2 INCOME PROFILE

Income Group No. of Respondents

< 10000 54

10001 – 25000 28

25001 and above 18

The income profile is broadly classified into three categories. There was more number

of customers all over Coffee Day with the income level between Rs. 10000 per month.

- 46 -


4.2 Analysis

4.2.1 Efficiency of the service is directly proportional to the level satisfaction by the

consumers.

Efficiency No. of respondents

Is proportional 94

Not related 2

Sometimes 4

Interpretation:

94% of the respondents believe that efficiency of the service relates directly to the level

of satisfaction of customer. The remaining 6% believes that there are other factors that affect

the efficiency or the satisfaction. Thus a satisfied customer expects a high efficiency according

to the responses.

- 47 -


4.2.2 Motivating factor that makes customers come back to Café Coffee Day

Motivating Factors No. of Respondents

Ambiance 24

Food 17

Service 12

Hangout Spot 38

Informal meetings 9

Interpretation:

Most respondents find Café Coffee Day as their favourite hangout spots apart from the

pleasant ambiance, food and informal meetings. It is the favourite hangout spot for all the

youth and the younger generation.

- 48 -


4.2.3 Suggestions to add on to the menu

Suggestions No. of respondents

Food items 45

Beverages 32

Doesn’t matter 23

Interpretation:

45% of the respondents suggest there should be more food items added on to the menu.

32% of the respondents suggested they would like Coffee Day to introduce beverages into the

menu. But the others are happy and contented with what Café Coffee Day has to offer.

- 49 -


4.2.4 Frequency of changes for your workplace

Recommend physical changes Mean of the ranked

values

No change 3.73

After a year 3.07

Between 6 - 12 months 2.76

Every 6 months 3.04

Interpretation:

The mean values of the factors depict the reverse of the % shown in the chart as to the

preferences of the respondents.

It shows us that Café Coffee Day is open for suggestions where there are constant

changes to cater to all the needs of the customers, from the one’s young in age and young at

heart

- 50 -


4.2.5 Option to customise beverages

Customise beverages No. of respondents

Like 49

Dislike 31

None 20

Interpretation:

Almost 50% of the respondents would like to customize their beverages, just like Sub –

Way allow their customise to customise their eats. As in my survey, many customers were not

completely satisfied with the beverages containing caffeine. Many of the customers would like

to add on dairy products in their like beverages like milk etc… But the other respondents were

happy with the pre menu already being set by Coffee Day.

- 51 -


4.2.6 Importance of implementing changes in the Café Coffee Day environment

Importance for change No. of respondents

Required 59

Not required 41

Interpretation:

59% of the customers believe that it is necessary to have physical changes in the work

environment so has to have innovation and newness in the atmosphere at Café Coffee Day.

- 52 -


4.2.7 Consecutive change in the Café Coffee Day logo, bares an impact on the customers?

Frequent change of logo No. of respondents

Yes 14

No 18

Doesn’t matter 68

Interpretation:

More than 68% of the respondents stated that change of CCD logo does not matter the

most, until they have the same pleasure of enjoying their coffee at CCD. Indeed a lot can

happen over a cup of coffee.

- 53 -


4.2.8 Café Coffee Day t be opened late lights in your town

No. of respondents

Yes 42

No 44

Doesn’t matter 14

Interpretation:

When the survey was conducted 42% of the respondents who agreed upon CCD should

be open late night at town were the young generation. But 44% of the respondents who

opposed the fact stated, there are CCD’s open 24/7 on the outskirts or the highways and they

would prefer to go on a long drive with friends and family and enjoy the pleasant experience at

CCD.

- 54 -


4.2.9 Re – introduction of membership cards at CCD

Re – introduction of membership cards No. of respondents

Yes 65

No 8

Doesn’t Matter 27

Interpretation:

More than 60% believe that the CCD membership cards should be re – introduces as

they enjoyed the benefits of the same. But the rest were not interested as they were not frequent

visitors to CCD.

- 55 -


4.2.10 Increase combo offers at CCD

Increase combo offer No. of respondents

Yes 48

No 33

Sometimes / Maybe 19

Interpretation:

Almost 50% of the respondents feel that a combo offer is more efficient. But the other

would like to enjoy their beverage with out the combo, just a quick bite or a quick cooler.

- 56 -


4.2.11 What do you think about the pricing strategy of Cafe’ Coffee Day?

• Expensive and Unaffordable – 10%

• Moderately Priced (Full value for money) – 85%

• Low Price – 5%

Interpretation:

As per the survey, 85% people feel that the pricing of the products are moderately

priced where as the remaining 10% and 5% feel that expensive and low priced respectively.

- 57 -

Expensive

Moderate

Low Price


Chapter-4

Findings and

Suggestions

- 58 -


Some of the findings and suggestions during the course of the project were as follows:

The ideas presented by the HR and Training, Operations and F&B Heads during the

preparation of the Retail Management Trainee Schedule were conflicting. Therefore, the

schedule needed to be designed in such a way that it satisfied all the three heads.

Lack of required materials such as the soft copy of Leave Application Forms and the Café

Coffee Day Structure.

The training need assessment was done based on the appraisal by the immediate

supervisors. The supervisors lacked in uniformity in grading the same level of performance

though the rating scale was the same.

The office timings were from 9:30am to 6:00pm and every person working with the

management had to be within the office premises whether he was a manager on an intern.

This limited flexibility to a great extent especially when information was needed from the

institution.

The Café Coffee Day office lacked in computers and some of the ones they had were very

slow which hindered the progress of work to a great extent.

The Café states they are wi – fi enabled but no trace of such technology being

implemented, apart from the advertisements with in the Café.

The taste of the coffee is unique and the customers are aware of it. Therefore, new flavours

can be introduced in the menu, as customers do not hold back from trying out anything new

in the café.

In the feedback form customers must be asked if there is anything they would like to be

included as a part of the infrastructure of the café to enhance their experience.

Give the team members training to improve their marketing and people skills as it is in

their hands to generate revenue from the customers.

CCD should introduce different mobile charging stations.

- 59 -


More of milk products to be introduced for the non coffee drinkers.

Introduction of special health drinks for the health conscious ones who would like to keep

them self fit and fight against calories yet enjoy a great drink.

Special discount offers should be inculcated for the Senior Citizens.

Re – introduction of membership cards so the frequent visitors of CCD could collect points

and redeem the same.

Bring into effect the wi – fi system in all the CCD’s.

Introduction of beverages and edibles for the diabetic patients.

- 60 -


Chapter-5

Recommendations

and Conclusion

- 61 -


RECOMENDATIONS

Café Coffee Day has done extremely well so far to project itself as an affordable youth-

oriented brand. But there are still certain areas where their brand needs to be much stronger. -

With regard to the physical evidence associated with the brand, Café Coffee Day needs to do a

lot of work. My first recommendation for Café Coffee Day is to clean up the décor at every

outlet, wherever unnecessary advertising is taking place. - Café Coffee Day would do better to

provide promotional space for its partners with the use of clever collaborations, and not printed

advertisements and posters everywhere. - My second recommendation is that Café Coffee Day

looks at its current recruitment, selection and most importantly, its current training policies. -

Customers are not happy with the behavior and service of the staff, and Café Coffee Day is

lagging far behind Barista is this aspect.

Café Coffee Day is the largest retail coffee chain in India and is also growing at a rapid

rate. With no stiff competition from any of the other café chains in the country, the company

has managed to create a distinct market niche.

Benchmarking itself against the likes of F&B Retail Games like Mc Donalds, Sub –

way and KFC, Café Coffee Day aims at continuous improvement and building a strong brand

image.

With its eyes set on expanding beyond national territory, Café Coffee Day is venturing

into newer pastures focusing on its core product……… Coffee

The Marketing Department of Café Coffee Day focuses on the innovation in work so as

to accelerate growth and also increase the foot falls. Provide a platform not only to the young

but for all age groups. Importance is given to training employees so as to improve their

technical and behavioural skills.

In short, café experience was enlightened. It provided an insight into Café Coffee Day

from the café level to the management level thus ensuring an overall understanding of the

company’s management functions as well as the core business of the company, that is, coffee.

Indeed! A lot of learning’s over coffee!

- 62 -


Areas of excellence:

1. Highly rated Taste & Quality of products:

Café Coffee Day got a high rating in the market survey, for the Taste & Quality of their

products. If they work on this aspect, there is huge potential for them to attract customers, just

based on the taste and quality of products. This is also helped by the fact that they grow their

own coffee beans, and this provides an important base for future expansion and growth. Café

Coffee Day even won the "Barista Coffee- Making Championship" for the Best Coffee.

2. Value for money proposition:

Café Coffee Day is projected as an "affordable" brand. This strategy has worked extremely

well so far, and Café Coffee Day got a high rating, both for their prices and for their value for

money, in the market survey.

3. Strong youth orientation:

The Café Coffee Day brand is, and always has been, extremely youth- oriented. In a country

where over 40% of the population is under the age of 20, there is huge potential for Café

Coffee Day to become one of the country's largest youth brands. The untapped market share

and potential for growth is enormous.

- 63 -


Areas of improvement:

1. Weak brand image:

The Café Coffee Day brand, although clearly a youth- oriented brand, lacks the power and

strength expected to maintain brand loyalty. The brand doesn't project a clear image to

customers about what Café Coffee Day is all about. This could prove as a deterrent during

future national and international expansion.

2. Inefficient human resources:

According to the market survey, Café Coffee Day's staff received only an average rating for

their behavior and service. Café Coffee Day needs to work hard at this aspect, especially

considering they are a service sector organization that is looking at large expansion.

3. Ambience & Décor:

The Ambience & Décor of Café Coffee Day outlets received a below- average rating from

respondents of the market survey. A lot of respondents did not like the fact that Café Coffee

Day outlets and literature served as prime space for a lot of advertising and promotions. They

felt as if the café's had been hijacked just for advertising.

- 64 -


Snippets

CCD’s vision: To be the only office for dialogue over a cup of coffee

CCD’s Expansion Strategy: Cafe Coffee Day has around 821 outlets in 115 cities in

India. CCD plans to take the total number of cafes to 1,000 by March 2011 and double it to

2,000 by 2014. In October 2010, CCD announced that it will increase its international

presence from the current six outlets in Vienna and Pakistan to a total of 60 stores across

Europe and Middle East in two years time.

International coffee chains in India – Recent entrants in the Indian market include

Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.

Operating Formats – Café Coffee Day operates in both regular (Coffee Day Square)

and premium formats (Lounge).

Highway Cafes: In 2004, CCD began cafes on highways. By 2009, the total number of

Café Coffee Day highway cafes rose to 30 owing to the overwhelming response it received

from travellers.

CCD’s new brand identity: In October 2009, CCD unveiled a new brand logo, a

Dialogue Box, to weave the concept of ‘Power of Dialogue’. In accordance with this new

brand identity, CCD planned to give all its existing outlets a new look by the end of 2009.

Cafés would be redesigned to suit different environments such as book, music garden and

cyber cafes suitable for corporate offices, university campus or neighbourhood. The change

plan included new smart menu, furniture design, among others.

Coffee consumption in India is growing at 6% per annum compared to the global 2%

plus.

Milk production in India – India is the largest producer and consumer of milk in the

world with 98% of milk being produced in rural India.

Coffee production in India – India ranks sixth as a producer of coffee in the world

accounting for 4.5% of the global coffee production. India has about 170,000 coffee farms

cultivating around 900,000 acres of coffee trees.

CCD’s International Expansion Strategy – In June, 2010 Cafe Coffee Day chain

acquired Emporio for Rs 15 crore. Emporio is a Czech Republic-based café chain present at

11 locations. CCD plans to co-brand the chain as Café Coffee Day Emporio and later

transition it to Café Coffee Day. CCD is also present in Vienna. The company wants to

expand in the East European region, West Asia and the Asia-Pacific region.

Cafe Market in India – In 2008, according to Technopak Advisors, the Indian food

servcies market – cafes, full-service restaurants, fast-food outlets/quick-service restaurants

was estimated to be $6 billion (Rs 26,000 crore) with organized players taking 13% of the

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market. (By 2014 this number is expected to increase up to 27%.). According to Technopak

Advisors, the café market in India is estimated at $150 million (Rs 678 crore) and growing

at 40 per cent over the last five years.

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ANNEXURE

QUESTIONNAIRE

Name:

Name of the organization:

Designation:

Age

<30

31 to 45

46 and above

Gender

Male

Female

Income

<20000

20001 to 35000

35001 and above

A. Efficiency of the service is directly proportional to the level satisfaction by the

consumers.

1. Yes

2. No

3. Sometimes

B. How often do you recommend physical changes at Café Coffee Day ?

1. No change

2. After a year

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3. Between 6-12 months

4. Every 6 months

C. Any kind of innovation in Café Coffee Day has effect on the consumers outlook.

1. Positive effect by encouraging new attitude and adjustment level Increases.

2. Negative effect since people are adopted to the traditional way.

3. No change.

4. Others (Specify)

D. If Café Coffee Day gave an option to the customers to choose their own ways of

making their coffee?

1. Like

2. Dislike

3. None

E. Consecutive change in the Café Coffee Day logo, bares an impact on the customers?

1. Yes

2. No

3. Doesn’t matter

F. What is the one thing that makes you come back to Café Coffee Day?

1. Ambiance

2. Food

3. Service

4. Hangout spot

G. Would you suggest Café Coffee day to add on more

1. Food items

2. Beverages

3. Doesn’t matter

H. Would you like Café Coffee Day t be opened late lights in your town?

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1. Yes

2. No

3. Doesn’t matter

I. Would you like Café Coffee Day to re – introduce the membership cards?

1. Yes

2. No

3. Doesn’t matter

J. Would you like Café Coffee Day to have more combo offers on the menu?

1. Yes

2. No

3. Doesn’t matter

K. What do you think about the pricing strategy of Café’ Coffee Day?

1. Expensive

2. Moderately priced

3. Low Cost

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BIBILIOGRAPHY

Title Author Publisher/year

“Personal/Human

Resource Management”

DeCenzo, David, A.;

Robbins Stephen, P.

Springer New York

“Organizational

Behaviour”

Robbins, Stephen, P. Prentice Hall

“Statistics text book” Alice mani

Himalayan publishing house

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Other references

Café Coffee Day SCM Manual

Café Coffee Day HR Manual

www.cafecoffeeday.com

www.coffeeday.com

www.economictimes.com (Article: Thursday, July 31, 2008)

www.Indiantelivision.com

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