Essence of MarketingService Industry

Presented By : Ashish Borhade

Sandeep Desai

Harish Amritkar

Mukesh Agrawal

Chandan Nandy

SIBM MBA Executive Education Div-A

About the industry - Coffee

India ‘s annual consumption – 97000 tonnes

Annual growth rate – 5-6%

Average per capita consumption : 66 grams annual

Urban areas – 73% Rural areas – 27%

Café Coffee Day

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.

Largest organized retail coffee chain in India.

Total outlets – 1450+ in every nook and corner of the country

New cafes planned across – Middle East, Eastern Europe, Egypt, Eurasia, South

East Asia. (Total 2000 planned by 2015)

Division of Coffee Day

Coffee 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.

3

Competitors

Direct Competitors:

Barista

Cafe Mocha

Costa Coffee

Beyond Coffee

Gloria Jeans

Minerva Coffee Shop

Indirect Competitors:

McDonald

Haldirams

Global Competitors:

Star Bucks

Product

Wide range of products appealing to Indian coffee and snack lovers.

Grows the coffee it serves in its cares

Well equipped roasting units

Indian taste.

Eatables adopted to Indian taste buds, created by different vendors

Ice creams – Cream Bell

Milk – Amul

Snack – From local vendors

Sells Merchandising through its stores

Enjoys trust for quality, Hygiene and consistency of food.

Product

Product Mix

Product Mix

Price

Affordable prices

Price for a cup of coffee ranges from Rs. 45 to Rs 200

Target Customer Segment - Aged between 15- 35 yrs

Only Minor changes in the pricing policy due to changes in Govt. taxes

Physical Evidence

Logo, Colours, Images

- Larger Font – Emphases on the word Café

- RED signifies leadership , vitality and passion .

- WHITE SWIRL signifies purity of purpose, invigorating properties

of feel of coffee.

- Café - larger than the text inside the logo box. C.C.D. would like to

own the word “café” in the minds of its customers.

Décor & Architecture uses bright colours and interiors according to the

youth

Designing of pamphlets posters and menu to attract the youth.

New Logo

Process

Ordering and delivery earlier was self service

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

Employee follow international standards of hygiene, cleanliness and

personal grooming

Reward Schemes like “ Employee of the month”

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

but fired for how they behave”.

(e.g. Incidence when a Manager was fired in an Hour in Chennai cafe, for

asking cover charges)

Place

Prime factors for success – located at every possible location where

business can be generated

Caters to target market with strategically placed outlet.

Located in High street, Fuel stations, Malls, Multiplexes, Near

colleges and office premises

Metros Cities

Tier – 1 Cities (Jaipur, Kanpur, Surat)

Tier – II cities (Mysore, Guwahati, Jamnagar, Shillong)

Tier – III cities (sangli, katra – Jammu and kashmir)

Tie up with Ginger hotel of Taj Group.

Promotion

Through SMS

Valentines Day promotion, “Café Coffee day Luv zone”

Through Television

Held a contest around a very popular program on Zee English called Friends

They have tied up with Channel [V]’s “Get Gorgeous contest”

First TV commercial Cafe Coffee Day debuts in Dec 2012 after being in operations for 16 years

It’s built on the premise that ‘standing up’ often doesn’t really yield results, but “a lot can happen over coffee” when you ‘sit down’.

Ticket Sales

They were involved in Elton John and Bryan Adams ticket sales.

Promotion

Tie ups

Liril, Airtel Friends

HDFC wanted to promote their debit card and they chose café coffee day.

Association with Movies

Bas yun Hi

Khakee

Main hoo naa

Socha Na tha

Mujhse Shaadi Karogi

Sales Promotion

Special “Café citizen Card”

Shop Online

Promotion

Positioning and Brand Image

Brought Café culture to India

For the Youth: Young (AT HEART) customers, Young and Friendly staff

Highest distribution network

Target middle and upper middle class

Age group 15 – 29

Consumer Profile

Age Group:

15 -24 years – 37%

25-35 years – 27%

Gender :

Male– 60%

Female – 40%

Frequency of Visit:

Daily – 18%

Weekly – 44%

Café Formats

Different Café Formats

Music café

Books café

Highway café

Garden café

Cyber café

Recent addition: Lounge café

Conclusion

• C.C.D. is the fastest growing Café in the country.

• The major competitor undoubtedly Barista.

• That Café Coffee day is planning to go international.

• The other major things regarding service marketing is that customers

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

• It is providing tough competition to its competitors by satisfying its

customers with great café experience.

• “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/Marketing

http://www.cafecoffeeday.com/

http://www.barista.co.in/users/index.aspx

http://businesstoday.intoday.in/storyprint/18661