Cafe Coffee Day Analysis

8/11/2019 Cafe Coffee Day Analysis

1/15

HOWAFIRMCANIDENTIFYDETERMINANTSOFDEMANDANDBUILD

CONSUMERSEGMENTAROUNDIT: CASEOFCAFECOFFEEDAY


2/15

INTRODUCTION

Founded in 1996

Amalgamated Beans Coffee Trading Co Ltd.

Pioneer of the coffee culture and the first to

introduce coffee bar concept First caf in Bangalore

Menu ranges from signature hot and cold coffee to

several exotic international coffees, tea and exciting

merchandise like cookies etc.


3/15

INTROCONTD.

Present in every part of the world which includes

vienna, Austria and many other countries.

Many big investment companies hold stakes in

Amalgamated Bean Coffee Trading Co. Ltd


4/15

CHALLENGESFACEDINTHEBEGINNING

Positioning coffee in a different way.

Less incentives for workers.

Innovation and creation requires

Right real estate at right price


5/15

SCENARIOOFCOFFEEMARKETININDIA

0%

1%

2%

3%

4%

5%

6%

7%

India RoW

Coffee Consumption growthCoffee Retail Penetration

In India

170

0 1000 2000 3000

Total Cities

Coffeeretail

Penetration

The organized coffee market in India is about Rs 600 crores. This isapproximately 20% of the total domestic coffee consumption (Rs 3,000crores)

According to Technopak Advisors, the caf market in India is estimated at$150 million (Rs 678 crore) and growing at 40 per cent over the last fiveyears.


6/15

MarketShare,

0%

CCD,54%Barista,

26%

CostaCoffee,

14%

Others,6%

Market Share

37% customers are between 20-24, 27 % between 25-29, 52% students,500-800 daily footfall as per the store size

The group comprises of mainly college going students and youngworking professionals

Demographic segregation

27%

66%

7%

Professionals

Students

Others

CCDSKEYTARGETAUDIENCE


7/15

Barista/Costa/Star Bucks, 20%

Caf Coffee Day,55%

Others, 25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Social Class

Social Market Share

CCDs major customer is the middle and upper middle class which forms

55% of the Indian population CCD offers its products at almost 30% cheaper rates than its major

competitors Barista and Costa Coffee


8/15

ECONOMIESOFSCALE

Caf Coffee Day is the vertical integration of its

parent company Amalgamated Bean Coffee

Trading Company

The major raw material Coffee Beans is

manufactured by the parent company hence cutting

costs significantly. This helps in pricing the product

at lower costs as compared to its competitors and

not sacrificing on their margins

They also manufacture their vending machines and

coffee makers.

They focus on 3As: Accessibi l i ty , A ffordabi l i ty

and Acceptabi l i ty


9/15

PRODUCT PORTFOLIO


10/15

FUTUREPLAN


11/15

Hope to grow CCD retail business at about 20% in

2014-15

Hope to do a revenue of Rs.1,200 crore from retail

sales

Revenue of another Rs.350 crore from the

wholesale and export business this year

Indian coffee cafe market will grow from Rs.1,683

crore in 2012 to Rs.2,276 core in 2017.


12/15

While India's per capita coffee consumption is

abysmally low at 82 grams.

Tamil Nadu accounts for more than 40 per cent.

The domestic consumption is growing at about 5%a year...driven largely by consumption through

branded coffee chains.

According to industry experts, the coffee chain

market in India is worth around Rs.1,000 crore and

is growing at a healthy 30 per cent per annum.


13/15

INTERPRETATIONS

Pricing strategy: Rs.50 to Rs.200 per cup- To

maintain marginal utility.

Demand for coffee consumption through branded

coffee chains rising- higher supply needed.

Supplementary items like snacks are also having

higher demand.

Complementary items like Tea is not popular in

organized store chains.


14/15

INTERPRETATIONS CONTD.

Growth story demonstrates the theory of

determinants of demand:

price

income

related goods prices

tastes

expectations


15/15

THANK YOU!

Documents

Cafe Coffee Day Analysis