Café Coffee Day

A lot can happen over

coffee.BY:

RICHA, RINKI, RAKESH, SANDEEP, ROHIT,RAJSEKHAR, REKHA, SACHIN, SAHANA,

RAVI, SABYASACHI……

Quotes…..

“ we are aware for indian teaste buds and our pricing is always economical so even if any other players come in it won’t disturb.”

Simran seblok

GM (mrkt.)

Café coffee Day.

ABCTCLABCTCL grows Coffee in its own estates of 10000 acres and another 4000 acres managed by it.

It also sources coffee from 1500 small growers.

It has two curing works located at Chickamagalur and Hassan which cure over 70,000 tons of coffee per annum.

ABCTCL has a research center set up at Chickamagalur.

No. of employees on the rolls = 6,000+ & they have nearly 8,000 people engaged in growing, processing and retailing coffee.

It is one of the India’s leading coffee Exports with clients across USA, Europe and Japan.

Divisions of ABCTCL

Amalgamated Bean CoffeeTrading Company Limited

ABC Exports 1992

Fresh’n Ground 1996

Café Coffee Day 1996

Coffee Day Beverages 2002

Coffee Day Xpress 2003

The Serai 2008

Group Profile

History

First Café coffee day in Bangalore (1996).

on Brigade road.

Right now 750 Café coffee Day

in 82 cities.

Café Coffee Day

Vision Statement

“To be the only destination for dialogue over a cup of coffee.”

RED stands for leadership and vitality, it also stands for passion (…..for coffee).

GREEN stands for

125 years of coffee

growing heritage of

this vertically integrated group.

WHITE stands for purity of purpose, invigorating properties of coffee.

CCD outside of india……

Europe (2) (in the heart of vienna)

Karachi (2)(pakistan)

Europe (12)

Egypt

South asia.etc

Merchandising:

At Café Coffee Day merchandise started more as a sentimental thing than as a revenue stream. They wanted to reward coffee lovers and they started selling mugs. People wanted to wear something that reminded them of the cafe so they designed T-shirts and sold thousands of those. But soon it has become a serious business. 5 per cent of their revenue comes from the merchandising.

Café Coffee Day - Merchandising• Caps• T-Shirts• Bags• Mugs• Coffee Filters• Coffee Powders• Coffee Mints• Pens

Processing Coffee:

Coffee Plant Cultivation Growth Cycle Harvesting

Stripping Method Handpicking Mechanical Stripping Method

Selection, Grading, Transportation, Tasting & Storage

Grinding Packaging

MARKETING STRATEGY:

PRICING STRATEGY

CCD will follow value based Pricing Strategy. 

Café Coffee Day knows its major customer lies in the bracket of 15- 32,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.

They will provide the MEMBERSHIP CARDS on minimal annual fee.

PROMOTION STRATEGY CCD  is  involved in all the areas of serious consumer

passion like:Television: Café Coffee Day held a contest around a very popular programmed on Zee English called Friends. They have tied up with Channel [V]‘s Get Gorgeous contest.

Tie-ups: Besides that Café Coffee Day also tie up lot of the youth brands. So they have a contest going on with Levis, another one with Scotty, Liril, latest one with Airtel Friends.

Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na.

The branding is one of the essential factors considered to attract the consumers.:

PLACE STRATEGY

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. Café Coffee Day looks to cater to their target market with strategically located outlets.

Their outlets are generally located in High Street/ Family Entertainment Centers, gas stations, near Collegesetc .

 

EXPANSION STRATEGY:

Cafe Coffee Day has around 821 outlets in 115 cities in India. CCD plans to take the total number of cafes to 1,000 by March 2010 and double it 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.

Physical Evidence

Physical EvidencePhysical Evidence

Largely wood and granite based interiors, there is more of steel and lots more colour now. The young colours of today, lime green, yellow, orange, and purple predominate.Air-conditioned environment , Non smoking zone, Good seating space, Availability of Fire Extinguishers, First Aid box,, Highly comfort lounges etc.

COFFEE CONSUMPTION IN INDIA……

Year Quantity (in MT)

2002 68000

2003 70000

2004 75000

2005 80200

2006 85000

2007 90000

2008 94400

2009 97600

2010 Above 1lakh

Export from india……

Destination Quantity (In MT)

% to Total

Unit Value Rs/ Tonne

ITALY 50802 25.85 108431

RUSSIA 16123 8.20 122337

GERMANY 14649 7.45 123290

BELGIUM 9673 4.92 105832

SPAIN 8556 4.35 97231

Menu of CCD

Espresso

Espresso Americano

Cappuccino (hot coffee)

Kenyan safari

Cold coffee

Ice cream

Pizza, Samosa, Puff, etc.

Competitors

Awards:

Best exclusive brand retailer of the year 07Best food service retailer of the year 07.ICICI excellent retailer awardBest Coffee Bar in Ahmadabad by Times

Food Guide for the 3rd Consecutive year in 2011.

Most Admired F & B Retailer of the Year in 2010.

CCD won in the same category at the 2009 Coca Cola Golden Spoon Awards

FUTURE PLANSFUTURE PLANS

Serving to the Air-Deccan consumer’s in air.

Planning to open cafes in Middle East, Eastern Europe, Egypt & South East Asia in coming months.

Strength:• Products of extremely good quality and taste.

• Its a youth oriented brand , hence huge potential since 40 % population is below 20

• It produces/grows the coffee it serves hence reducing the cost.

• USP of brand is its considered a highly affordable brand.

Weakness:• Weak brand image and lacks strength to

maintain brand loyalty.

• +Many of the CCD stores are incurring loses due to wrong site selection.

Opportunities:• Coffee cafe industry is one of the fastest growing

industry in Asia.

• More people like to visit CCD for informal meetings

• CCD has gone international, and is planning to attract many new international markets, hence gaining international recognition.

Threats:• Competition with other coffee cafes like Barista,

Mochas, all have the same target audience.

• The branches of all competitors are located close to each other.

• Low degree of product differentiation.

• Substitute effect.

CONCLUSIONCCD is at the heart of the cafe culture wave that has swept across metropolitan cities It has tremendous demand. But it still needs to work on creating a strong brand image and customer loyalty, also there is a constant need to move and evolve. There is cut throat competition in this sector … It has great potential to be one of the leading coffee shop brands in India.