SERVICE MARKETINGPROJECT

ON

CAFÉ COFFEE DAY

By

Archana, Hardik, Sanjay, Tirthankar (SIESCOMS)

CAFÉ COFFEE DAY – Table of Index

1. CCD Introduction2.3.4.5.6.

02STPD (Segmentation, Targeting, Positioning, Differentiation) 07Perception Mapping SWOT Analysis Competitors AnalysisPESTEL (Political, Economic, Social, Technological,Legal, Environmental)

7. 7 PCs P’s Service Marketing

8. Strategies (Distribution, Positioning and Focus

9. Porters Five Forces

101112

14154345464748495051

10. SPANCO (Tangible / Intangible)

11. Recommendations12. Partners13. Conclusion14. Q&A15. References

CAFÉ COFFEE DAY - Introduction

Founded in 1996 India's largest coffee conglomerate, Amalgamated

Bean Coffee Trading Company Ltd Strives to provide the best experience to their guests Pioneer of the café culture and the first to launch the ‗coffee bar‘

concept inIndia

Network strength: 1450+ cafés in 172 cities/towns across India and growing

First to roll out the ‗coffee bar‘ concept in India with its first café in Bangalore.

Outlets set up are based on the three formats -- cafe, lounge and square.

Menu ranges from signature hot and cold coffees to several exotic international coffees, tea, food, desserts and pastries and exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available at the cafés

CCD is present in every nook and corner of the country which includes Vienna, Austria and Karachi and plans to open across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future

CAFÉ COFFEE DAY – Introduction Continue…

In 2010, they clubbed all his businesses (except agriculture) under Coffee Day Resorts Holdings.

Existing investors include global PE firms KKR and Co. LP, New Silk Route Partners LLC and Standard Chartered Private Equity have 25% stake

Darby Overseas Investments Ltd—the private equity arm of Franklin Templeton Investments, International Finance Corporation and Deutsche Bank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd

CCD’s SBU– Coffee Day Fresh 'n' Ground– Coffee Day Xpress– Coffee Day Take away– Coffee Day Exports– Coffee Day Perfect– (FMCG Packaged Coffee) division

WHY CAFÉ COFFEE DAY

Average Footfalls: 300 per café per day

Average dwell time at café: 45 minutes

Meeting place for 15-45 year olds A place where :

Students frequently visit most after ―home and workplace/college‖

Friends and colleagues meet n groups of 3 or more One rejuvenates and are free to be themselves rather than a

place to be ―seen at‖

The café is also the venue for business meetings (23% ), celebrating special occasions (20%) or just plain ―Time Pass‖(57%).

Key Target Audience

Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage.

The group comprises of mainly college going students and young working professionals

7%

27%

66%Professiona

ls Students

others

1481 outlets in 200 cities Strong and Stable Parentage Right Locations Place a cafe in every possible

location where some business can be generated.

To be present in educational institutions and corporate campuses

―Third Place" away from the home and college or workplace for the young and the young at heart.

Coffee Bar Fun Place Home and Workplace Medium Price Brand

TARGETING

Middle class and upper middle class youth

Students, House wives, executives and youngsters

People who value a great cup of coffee

CCD seeks to target not just the youth but anyone who is ―young at heart‖.

Café Coffee Day has its main

consumer base in the age group

of 16-30 years.

POSITIONING

DIFFERENTIATION

SEGMENTATION

S-T-P-D

POSITIONING STRATEGY

POSITIONING OF DIFFERENT OUTLET

Café Coffee Day• Coffee lovers

• Youth• A place for

Hang out

The Lounge

• Premium Cafe

The Square

• Exclusive for Coffee lover

– Changing the logo to a ‗Dialogue Box‘ - with the words Café Coffee

Day, symbolizes a perfect place to ‗relax and dialogue‘

– Tagline : a lot does happen over coffee!!

New Logo

REPOSITIONING CCD

Perception Mapping

Quality of service (High Involvement)

Quality of service (Low Involvement)

High Price

Low Price

SWOT Analysis

SWOTOPPORTUNIT

Y Fastest growing industries in

Asia. Preferred for informal

meetings. Gone international

STRENGTHS Largest retail chain of cafes ISO 9002 certified company Quality and taste Youth oriented brand Reduction in cost (Own

Production) USP of brand - Highly affordable

brand

WEAKNESS

Weak brand image andlacks strength to maintain brand loyalty

Poor ambience and decor. (Primespace -advertisingpromotions)

Wrong site selection – Losses

and

THREAT Competition with established

and International other coffee cafes likeBarista, Starbucks, Costa Coffee, Coffee Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.

Hukka Parlours.

Competitor Analysis

CCD 54%

Barista 26%

others

6% costacoffee 14%

Market Share

CCD 68%

Starbucks 12%

Gloria Jeans 3% Barista

17%

Share of mind

Competitors

Direct Competitors: Barista Cafe Mocha Costa Coffee Beyond Coffee Gloria Jeans Minerva Coffee

Shop

Indirect Competitors: McDonald Haldirams

Global Competitors: Star Bucks

Easy sourcing of coffee beansCost control because of Govt regulations

Political

Economic

Social

Technological

Legal

Heavy coffee drinks in South IndiaCheaper sourcing maintain quality

Targets youth and middle classAffordable for a meeting place

Wifi facility at every outlets and musicDigital Marketing for promotions

Environmental

PESTAL

Use Bio degradable products

Ethical and based on customer delightLess consumer complaints and quick customer service

7 P’s ofSERVICE MARKETING

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE PEOPLE PROCESS

SERVICE PRODUCT

Core Product Experience

Supplementary services Wide range Merchandising Ambience

Delivery Hospitality (Lounge &

Square) Price of the product

SERVICE FLOWERFacilitating Services

Information- Menu- Websit

e Payme

nt- Credit Card- Cash- Privilege

Card Billing - at the

counter Order

Taking- Assisted by the attendee

Information

Payment

Billing Order –taking

SERVICE FLOWEREnhancing Services Consultation

- Assistance

Hospitality- Food & Beverage- Music- Wi-Fi- Washrooms

Safekeeping- Credit Card Security- Parking

Expectations- Happy Hours- Privilege Cards

Safekeeping

HospitalityExpectations

Consultation

PRODUCT PORTFOLIO

Food and Beverage Non Food Items B2B

Food Beverage

Deserts CoffeeCoffee Powder Bulk/ Corporate

Orders

CateringServices

Coffee Vending

Machines

AdvertisingSpace

Snacks Tea

Coffee Machine

Cakes Chocolate ShakesCups & Mugs

Sundaes FrappeChocolate and

cookies

Apparel & Accessories

Gift Cards & Vouchers

Heavy Foods (in Lounges)

Fruit Shakes & Lemonades

Product Mix Width

Product Line Length

SERVICE MARKETING MIX OFCAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE PEOPLE PROCESS

PRICING STRATEGY

PSYCHOLOGY PRICING– Pricing the product as Rs 69, 79, 59 etc.

rather than in the multiples of ten to give a feel that the product less priced

LOCATION PRICING: On the basis of outlets, prices have been positioned

• Café• Lounge• Square

COMBO PRICING– Clubbing up two or more products on

special occasions

PRICING STRATEGY

PREMIUMS PRICING– Adding things like cream, chocolate

sauce and positioning as a premium coffees

VALUE BASED PRICING– Providing different variants in terms

of prices by altering the quantity to give a sense of affordability

SERVICE MARKETING MIX OFCAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE PEOPLE PROCESS

Strategically located outlets Kiosks in offices Coffee machines in college canteens

Types of Stores

Café Coffee Day

The Lounge The Square

PLACE

Café Coffee Day StoreCoffee parlors where people can enjoy the coffee have eatables and hangout with friends

Café Coffee Day Lounge Premium café from Café coffee day target selected group

Café Coffee Day SquareA unique Café where variety of single origin coffee brews from coffee- growing countries are available

SERVICE MARKETING MIX OFCAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE PEOPLE PROCESS

Started TVC and Print campaign at the end of 2012 Co Branding in Movie and TV serials Sales Promotion Activities

– Combo Deal– Happy Hours– Privilege cards– Redeemable coupons

Through Interactive Media Held Contest around a Very Popular Programme Tie up lot of youth brands

PROMOTION

WITH THE FOOD: SIDE MENU CARD

Contests have been activated through leaflets/contest forms given out with the menu-card /bill folders

Drop boxes, which also add to prominent visibility, are used to collect all entries to the contest

CONTESTS @ CAFES

ON THE WALL

The most imposing branding option within a cafe for visual communication

with minimal amount of text

Tent Cards are the chosen element in the cafes since they are all about “I am here, you cant miss me”

ON THE TABLE: STICKERS & TENT CARDS

EDITORIAL COVERAGE

SERVICE MARKETING MIX OF CAFÉCOFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDENCE PEOPLE PROCESS

PHYSICAL EVIDENCE

Ambience– Different ambience the look

and feel for different outlets

Shop Colour– Violet for Café coffee day shops– Sea green for Lounge– Brown for Square

SERVICE MARKETING MIX OF CAFÉCOFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE PEOPLE PROCESS

PEOPLE

Dressed in a particular uniform Soft spoken, friendly behaviour Customer Engagement Activities

–Special Offers on Occasions (Birthday, Valentine day, Friendship day etc.)– Online Contests– Happy Hours

SERVICE MARKETING MIX OF CAFÉCOFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE PEOPLE PROCESS

PROCESS People Processing Services Minimum Response Time Complaints and feedback Assisted by the attendee or the brew master in Lounge and Square Self Service Counter for Café Coffee Day outlets in Offices / few

Malls. Ordering and delivery earlier was self service and now most of the

coffee shops have waiters to take order and deliver at the table

BLUEPRINT FOR SERVICEDELIVERY

Delivers the order

Data entry

SUPP

ORT

PRO

CESS

CON

TACT

PER

SON

(Bac

k St

age)

(On

Stag

e)

CUST

OM

ERPH

YSIC

AL

EVID

ENCE

Prepares Food / Drinks

Informs about the order placed

Line of interaction

Line of visibility

Line of internal interaction

CCDexteriors

FurnitureCCD interiors Ambience Interior design

CCD boy/girlMenu

Takes orderGreeted by CCD boy/girl

Receives Food/Drink

Acceptsrequest

Hands over the bill to the customer

Bill generated

Billing system Processes bill

Delivery TrayFood & drinks

Exit wayCCD exteriors

CCD boy/girl

PROCESS AT CCD

Customer Customer Goes to the Views Places Sits Order Requests Makes the

Arrives at walks -in table Menu card order Chats received for bill paymentCCD Waits Eats Leaves

CHARACTERISTICS OF SERVICES Intangibility

– Experience– Taste of Coffee

Inseparability– Service provided

Perishability– Availability of tables

Heterogeneity– Ambience of different

outlets

Easy accessibilityThere is a Cafe Coffee Day outlet in every major city in India and are easily accessible.

Rural area locationsCustomers in the smaller communities also enjoy good quality coffee and snacks at affordable costs because the Cafe has set up outlets in the rural areas in India.

DistributorsThe coffee produced on the Cafe’s farms, are distributed through wholesalers and retailers to customers who wish to use the coffee at home.

DISTRIBUTION CHANNEL STRATEGY

FOCUS STRATEGY ANALYSIS

WideNarrow

Many

Few

Service Offerings

No.

of M

arke

t Ser

ved

Service focusedCafé Coffee Day Premium Cafes (Lounges)

UnfocusedCCD cafe outlets

Fully focusedCafé Coffee Day Square – an exclusive coffee bar

Market focusedCCD Xpress (Kiosk)

Porters Five Forces

Industry

Rivalry

(HIGH)

Threat of new

entrants

(LOW)

Threat ofSubstitut

es

(HIGH)

Supplier's Power

(LOW)

Buyer‘s Power (HIGH)

SPANCO - Tangible / Intangible (CCD)

S - Suspect / Security – All Customer who wants to eat snacks Or have a peaceful Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy food and drinks.

P - Prospect / Profit – All college /school going Students, Kitty goings groups and business customers. Same price as other notable brand Better taste and crispness Value for Money

A - Approach / Analysis -Analysis Research and customer focused studies on what Indian customers looking for hot and cold drinks in peaceful good environment. Wished to taste new & innovative products Unique freshness flavour

N - Negotiation / Number Strategy - Change the product Unique SellingProposition Offer reasonably good prices quality product and services. Coffee / tea variants High price & high volume Other Varieties (cold drinks and snacks) Low price & high volume

C - Closing / Core need– Offer good services and quality product. Clear cut differentiated product Existing network of distribution

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 knowabout the customers satisfaction level.

PARTNERS

Conclusion

1. 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.

ANY QUESTIONS

?

References

Personal experiences

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

www.slideshare.com