MARKETING PLAN OF

Presented by:- Shahbaaz Ahmed (PGFB1345)Shravan Kumar (PGFB1347)Sundram Sinha (PGFB1352)Saloni Mishra (PGFB1343)Swati Sharma (PGFB1353)Rajni Vasisht (PGFB1336)

Executive Summary

•India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd.

• Pioneer of the café culture and the first to launch the ‘coffee bar’ concept in India.

• Network strength: Over 1400 cafés in 200 cities/towns across India and growing.

• Average Footfalls: 200 per café per day.

Mission

“To be the best cafe chain by offering a world class coffee experience at affordable prices.”

Current Market Situation

• Coffee – a sunrise industry

• Growing young population and promotion of coffee culture

• Coffee Segmentation:

Robusta and Arabica BeansDifferent growth culture

Pure and blended coffeeCheaper products like chicory, vanilla, mocha

Filter coffee and instant coffee43% share of filter coffee

Café Coffee Day Networkof 1450 cafes across India

185 cafes

64 cafes

172 cafes

191 cafes

• 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

Target Audience

Target Audience

• There is a definite skew towards singles: 66% singles, 27% married & 7% others.

27%

66%

7%

Married Single others

•Middle class and upper middle class youth•CCD seeks to target not just the youth but anyone who is “young at heart”.•Medium Price Brand

•1481 outlets in 200 cities•Cafe in locations where some

business can be generated.•Educational institutions and

Corporate Campuses.

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

Café Coffee Day has its main

consumer base in the age group

of 16-30 years.

TARGETING

POSITIONING DIFFERENTIATION

SEGMENTATION

S-T-P-D

DISTRIBUTION STARATEGY

60%30%

10%

Growth Target

Tier I Tier II Tier III

• Network strength of over 1450 cafes in 200 cities and towns with average footfalls of 200 per café per day

• Distribution Strategy:• Single unit at Chikmagalur with capacity of

70,000 tonnes per annum

• Packaging industry:• Serving hot coffee 210ml and cold coffee 350ml• CCD merchandises

• Regional Distribution:• Targeting expansion in smaller towns• New café formats in metros –

• Lounge• Square

300150

50

STRENGTHS

• First-mover advantage• Excellent brand name and visibility• ISO 9002 certified company• Quality, service and taste• Youth oriented brand• Reduction in cost

WEAKNESS

• Lack of individual attention to loyal customers• Unavailability of fresh food• Market penetration of coffee bars is 5%

OPPORTUNITY• Fastest growing industries in Asia• Merchandising• Tie ups with other companies for promotion• Tapping smaller market• Cheaper varieties of coffee

THREAT• Competition with Barista, Mochas, Gloria

Jeans, Costa Coffee & Starbucks• Presence of other ‘Hangout’ locations• Unorganized market• Dependent on government commodity rates

SWOT

Objectives & Issues:-

Threat of new entrants - Medium• Presence of several established brands/hangout places/fast food joints

• High Investments for Expansion.

• Government policies promoting FDI .

Buyer’s Power - High• Low switching cost

• Variety of products

• Variety of services

Profitability - High• Increase Market Size and Brand Awareness by Vending Machines and Kiosks

in public places.

• To Increase the use of Technology Portfolio.

Competitor Analysis

CCD54%Barista

26%

costa coffee14%

others6%

Market Share

CCD68%

Starbucks12%

Gloria Jeans3%

Barista17%

Share of mind

Sample size – 150+

Product• Wide range

• Frappe – Summer

• Cappuccino - Winter• Merchandizing

Price• Range from Rs45 to

Rs100

• Over the years only minor changes in pricing policy

Place• All locations

• Strategically located outlets

• Coffee machines in college canteens

• Kiosks in offices

Promotion• Channel [V]’s “Get

Gorgeous” Contest

• Tie up with youth brands

• Khakee and Main Hun Na

• Sales Promotion

Marketing Strategy: Marketing Mix

Action Programs:-Advertising

• As a reaction to the launch of Starbucks in India, CCD debuted with TV Ad – Sit down-ism

• Gives customer a purpose for hanging out

• Word of mouth

• Subtle advertising in movies and TV serials

• Print and social media

• Sponsoring college events and giving out discount coupons

• Tie up with different corporates

• Presence of outlets in all areas

Alternate Advertising Mediums…

Media Partner Advertising Medium

Teli Brahma

Café Chronicle

DSN screens

Radiowalla

405

721

168

334

Wi-Fi / Bluetooth Downloads

Café Newspaper

Television Screens

Café Radio

Pan India presence

Leaflets

Counter top Tent Card

Danglers

Standee

Cup Branding

Vouchers / Scratch Cards / Discount Coupons

Coffee Day Xpress branding options

BUDGET

• Or• Organised Coffee Market is around 67$ Million ( Rs. 300 crore)

growing at a rate of 40%.

• CCD Contributes a third of the Group’s Combined Revenue of nearly 2,000 crore.

• Revenue Model is measured by Market Potential for Business (Price *Volume).

• Cost Structure includes Allocation of Costs in Key Assets, Direct Costs, Indirect Costs etc.

• Owns Plantation, Cold chain, Logistics for Economy of Scale and Effective Supply chain.

• Satisfactory Margins and Inventory Turnover for the Growth.

• 3 % of Company’s Revenue Spent on Training the Staff in Major cities.

Treat customer. fairly

Cultivate Relationship with Customer

Learn from Recovery Experience

Fail-safe the service

Track complains

CONTROLS

References

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/Marketinghttp://www.cafecoffeeday.com/http://www.barista.co.in/users/index.aspx