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Chanakya Kandukuri( DM-06-003 )Aurora’s Business School
Café Coffee Day
Executive SummaryOn the process of the study of product and brand management I have chosen ‘Cafe Coffee
Day’ for my study wherein the details of the company, product portfolio, marketing mix,
competitive analysis, future trends of the sector, SWOT analysis and my suggestions for the
future developments of the company exists.
Table of ContentsExecutive Summary...............................................................................................................................2
Corporate Profile...................................................................................................................................3
Mission..............................................................................................................................................3
Cafe Coffee Day's Divisions................................................................................................................3
Product Mix...........................................................................................................................................4
Marketing Mix.......................................................................................................................................5
Positioning:............................................................................................................................................8
Customer Profile:...............................................................................................................................8
Market Expansion..................................................................................................................................9
CCD’s International Expansion Strategy.............................................................................................9
Competitive Analysis.............................................................................................................................9
Direct Competitors............................................................................................................................9
Indirect Competitors........................................................................................................................10
Global Competitors..........................................................................................................................10
Competitive Strategies of CCD.............................................................................................................10
SWOT Analysis.....................................................................................................................................11
Insights Gained....................................................................................................................................11
Suggestions..........................................................................................................................................12
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Corporate ProfileCafe Coffee Day is India's favorite coffee shop, for the young and the young at heart. It is a
part of India's largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company.
There’s over 10,000 acres of rolling hills with the coffee shrubs making for lovely walks.
There are 11,000 small growers who make them who they are. And they are not alone; there
are folks in the USA, Europe and Japan that buy coffee from CCD, making them the top
coffee exporter from India
CCD brought the concept of cafes in India. The first one opened in 1996 on Brigade Road in
Bangalore. It's been an exciting journey for CCD, becoming the largest organized retail cafe
chain in the country.
MissionTo be the best Cafe chain by offering a world class coffee experience at affordable prices.
Cafe Coffee Day's Divisions Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets.
Coffee Day Square, a high level coffee bar in Bangalore.
Coffee Day Xpress, which runs 900 plus Coffee Day kiosks.
Coffee Day Beverages, which runs over 14,000 vending machines.
Coffee Day Exports, its exporting wing.
Coffee Day Perfect, its (FMCG Packaged Coffee) division.
Cafe Emporio: A cafe chain from Czech Republic. Cafe Emporio has 11 cafes in
Czech Republic Café Emporio runs on 2 formats similar to CCD’s regular cafés and
Lounge & Square set ups.
CCD is having 1134 stores till 24/9/2011
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1 14 213 11341996 2001 2005 2011
Total Outlets in Past 15 years
Product MixCafé Coffee Day: Product Width
Coffees & Teas Refreshing Alternatives Eatables
Hot Coffee Granitas Melting Moments
Espresso Blood Orange Banana n’ Walnut Cake
Espresso Americano Cool Blue Banana Chocolate Mousse
Macchiato Pineapple Crush Banana Caramel pie
Cappuchino Emerald Ice Chocolate Doughnut
Café Latte Ruby Surprise Cookies
Chococinno Marble Cake
Café Mocha Pineapple Getaux
Irish Coffee Chocolate Cake
International Coffee Smoothies Ice Creams
Colombian Juan Valdez Mango Colada Vanilla
Ethiopian Qahwah Strawberry Colada Chocolate
Kenyan Safari Seasons Best
Cold Coffee Cremosas Quick Bites
Sweet Mint Litchi Samosa
Cold Sparkle Ginger Spice Puff
4 | P a g e
Brandied Banana Pina Colada Pizza
Tropical Iceberg Croissant
Iced Eskimo French Fries
Kathi Roll
Coffee Add-ons Teas Wraps
Honey Assam Tea Biryani
Flavoured Syrups Masala Chai Sandwiches
Red Eye Lemon ‘n Ice Tea Kulcha
Whipped Cream Kashmiri Qahwah Burger
Scoop pf Ice cream Apple n Cranberry ice tea Pasta
Chocolate Sauce Masala Sandwich
CCD flow of Generating Money from Beans to Coffee,
Generating Money from Retail Café Coffee Day Outlets
5 | P a g e
Marketing MixProduct:
CCD product mix constitutes a wide range of products that appeal primarily to Indian coffee
and snack lovers. Products have a decided Indian taste to it be it food or coffee. Most of the
eatables have been adopted to meet the Indian taste buds like samosa, masala sandwich, tikka
sandwich etc. Thus they have been trying to capture the Indian taste along with classic coffee.
The best selling item in summer is frappe, which is coffee and ice cream blended together.
The young people favour it. In winter it is cappuccino. Their merchandising includes funky
stuff like t-shirts, caps etc.
Price:
Considering that CCD knows its major customer lies in the bracket of 15- 29, it has tried to
derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges
from Rs.45 to Rs 80. From the time it first started its operations, there has been only minor
changes in the pricing policy of CCD. The changes have been more due to the government
taxes than anything else
Place:
The strategy CCD has adapted is to place a cafe in every possible location where some
business can be generated. This is a prime factor in determining the success of a retail chain.
CCD looks to cater to their target market with strategically located outlets.
Their outlets are generally located in High Street/ Family Entertainment Centres, gas stations,
near Colleges etc.
Promotion:
CCD is involved in all the areas of serious consumer passion like:
Television: CCD held a contest around a very popular programme on Zee English called
Friends. All the six lead characters are shown often visiting a coffee shop. They have tied up
with Channel [V]s Get Gorgeous contest.
Tie-ups: Besides that CCD also tie up lot of the youth brands. So they have a contest going
on with Levis, another one with Scooty, Liril, latest one with Airtel Friends.
Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na
Sales Promotion: CCD uses special ‘Cafe Citizen Card’ for rewarding Cafe Coffee Day’s
customers. It is a loyalty program to gain new customers and retain the existing ones.
6 | P a g e
Process:
The ordering and delivery process in CCD was earlier based on self- service. But now in
most its coffee shops the waiter comes and takes away the order and delivers the order on
table.
Physical evidence:
Logo, image, and brand: CCD has used bright red and green colours in its older logo.
RED stands for leadership, vitality, passion for coffee. The GREEN stroke harks back
the coffee plantations that they own. Cafe is noticeably larger in the logo to denote
that CCD pioneered the cafe concept in India way back in 1996.The font looks as
though the letters have congealed out of a liquid The word ‘Cafe’ was made to appear
dominant to indicate Cafe Coffee Day’s introduction of ‘Cafe culture’ in India.
After recognizing the buzz of conversations that invariably accompanied the coffee
being served at their tables. CCD introduced a new logo with a ‘Dialogue box’ in it.
This was to highlight the strong connection between ‘Coffee’ and ‘Conversations’.
Another indication of the dialogue is the two-way conversation between CCD and its
customers
Architecture and Decor: Largely wood and granite based interior with young colours
of today, like lime green, yellow, orange, and purple predominate.
Literature: The literature provided by CCD is indicative of its youthful image.
The menus, posters, pamphlets are all designed to attract young and young at heart
The Tag Line: "A lot can happen over coffee" became a popular line among
youngsters. In a bid to take their coffee chain national in 2000, the management
decided to strengthen their brand pull with an appealing tag line. Factors like
ambience, food, music, and atmosphere and meeting people were identified as the
aspects that were drawing people to their Cafes. Encompassing all these factors in a
single line, the sentence "A lot can happen over Coffee,” was phrased.
7 | P a g e
People:
People at Cafe Coffee Day believe that “People are hired for what they know but fired for
how they behave”. Motivation and personal skill are laid emphasize upon. Their employees
are like friend to the customer but at the same time they know about the international
standards of hygiene and cleanliness and personal grooming.
Positioning:
Customer Profile:
60% of the customers who visit the café are male and 40% are female. 52% of customers who
visit the cafes are students.
8 | P a g e
Café Coffee Day is known to experiment with different café formats. They have been:
Music cafés
Books cafés
Highway cafés
Lounge cafés
Garden cafés
Cyber cafes
Market Expansion
CCD plans to take the total number of cafes to to 2,000 by 2014. In October 2009,
CCD announced that it will increase its international presence from the current six
outlets in Vienna and Pakistan to a total of 50 stores across Europe and Middle East in
two years time
Recently, CCD entered a tie-up with the Ginger hotels of the Taj. This caters to
business executives and is on a Smart basics’ platform. The outlet would be open to
all, and not just the hotel's guests. The aim is to increase footfalls in Ginger and
increase the reach of CCD. This way, CCD can reach out to another set of consumers,
apart from the young crowd it has mainly catered to.
CCD’s International Expansion Strategy
In June, 2010 CCD chain acquired Emporio for Rs 15 Crore. Emporio is a Czech
Republic-based cafe chain present at 11 locations. CCD plans to co-brand the chain as
Cafe 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
9 | P a g e
Competitive Analysis
Direct CompetitorsBarista: This is the closest competitor to Café Coffee Day in the Indian market. They
target the same class of upwardly mobile youth and young professionals. But Barista
is often viewed as a place to unwind after a hard day’s work or an ideal setting for
some business meetings.
Cafe Mocha: This aims at providing a level of experience to the consumer which is
hard to imitate. Inspired by Morocco and Turkey, Mocha offers not just coffee but
also sheeshas from Egypt and gourmet desserts. Mocha calls itself ‘a coffee shop for
the soul’.
Recent entrants in the Indian market include Gloria Jeans, Coffee Bean & Tea Leaf
and Illy Cafe
Indirect CompetitorsEateries like McDonald’s and Haldiram’s pose competition to CCD as they are likely
attractions for a consumer to be drawn to. Consumer can well contemplate why he
should spend around Rs. 45 on a coffee when he cans get a burger and a coffee for the
same price at McDonald’s.
Local tea joints and coffee shops like Café Nescafe, They are smaller places but
nevertheless target the same set of consumers. Hence, CCD has to consider the threat
a shop like this could pose to it.
Global CompetitorsStarbucks is planning to enter India shortly and would be stiff competition for even an
established brand like CCD.
Coffee bars in the market of the other country that Cafe Coffee Day is entering is also
be a factor CCD will have to plan for before entering a market
Competitive Strategies of CCD
Cafe Coffee Day which follows a backward integration of the value chain procures
coffee beans from its base in Bangalore. This gives it a high sense of quality
assurance and guaranteed supply across its outlets as the same raw material is used in
all outlets. But Barista is a combination of imported coffee beans and beans from Tata
10 | P a g e
coffee. This is a relative disadvantage because if there is a discrepancy in the quality
or supply, Barista would have to consider alternatives and probably look for another
supplier.
Similarly, the food items available in Cafe Coffee Day are obtained from local
suppliers whereas Barista’s food is catered by the Taj caterers. Cafe Coffee Day
would hence, have a lower-cost advantage.
SWOT Analysis
11 | P a g e
Insights Gained
In Terms of Advertising to create Brand Awareness:
o CCD does not advertise itself via traditional media ads
o Physical presence is sufficient to create brand awareness
o CCD advertises ABC’s other offerings such as The Serai Resorts.
CCD’s growth story closely resembles Starbucks.
While others are building coffee business, CCD is building real estate/meeting-point
business where coffee is just a by-product. They wish to have a café in any location
where some business can be generated
Suggestions
Focus needs to be on product innovation and experience to meet rising customer
expectations.
With time, the rural market will be ready for CCD’s entry. It will have to create the
same cafe culture craze it managed to do so well in the cities to a people
unaccustomed to it
CCD’s No-alcohol policy will have to change to be successful in the European and
American markets.
o As is evinced by the Starbucks Liquors range, which has been enormously
successful.
CCD’s strength lies in it being able to provide quality matching its competitors for
relatively cheaper prices. This is due to:
o The ABC group has complete control from production of Coffee in its fields
of Chikmagalur, Karnataka to its 1134 outlets around the world. It cannot
afford to let that advantage slip
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