project on ccd by manoj singla

8/8/2019 project on ccd by manoj singla

1/24

pg. 1

Assignment

on the

cafe coffeeday (CCD)Submitted to: Submitted by:

Pardeep Singla Manoj Singla(Faculty) M0923


2/24

pg. 2

Cafe coffee day

INTRODUCTION:Caf Coffee Day, Indias favourite coffee shop where

the young at heart unwind. Were a division of Indias largest coffee

conglomerate, the Amalgamated Bean Coffee Trading Company Limited

(ABCTCL). Popularly known as Coffee Day, its a Rs. 750 crore, ISO 9002

certified company. With Asias second-largest network of coffee estates (10,500

acres) and 11,000 small growers, Coffee Day has a rich and abundant source of

coffee. This coffee goes all over the world to clients across the USA, Europe and

Japan, making us one of the top coffee exporters in the country.

HISTORY OF COFFEE CAFE DAY

About Caf Coffee Day

Caf Coffee Day (CCD) pioneered the

caf concept in India in 1996 by opening its first caf at Brigade Road in


3/24

pg. 3

Bangalore. Today, more than a decade later, Caf Coffee Day is the largest

organized retail caf chain in India with cafes functioning in every nook and

corner of the country. Drawing inspiration from this overwhelming success, Caf

Coffee Day today has cafes in Vienna, Austria and Karachi.Till about the late

1990s coffee drinking in India was restricted to the intellectual, the South

Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed

to instant coffee) coffee caf culture in neighbouring international markets grew,

the need for a relaxed and fun hangout for the emerging urban youth in the

country was clearly seen. Recognizing the potential that lay ahead on the

horizon, Caf Coffee Day embarked on a dynamic journey to become a largeorganized retail caf chain with a distinct brand identity of its own.

OUR DIVISIONS

Coffee Day Fresh n Ground.

Coffee Day Xpress.

Coffee Day Take Away

Coffee Day Exports

Coffee Day Perfect

OUR MISSIONTo be the best Cafe chain by offering a

world class coffee experience at affordable

prices.


4/24

pg. 4

OUR VISION

New cafes are planned across Middle East,

Eastern Europe, Eurasia, Egypt and South

East Asia in the near future.

ACHIEVEMENTS

Cafe Coffee Day has been awarded

as the Best Coffee Bar in Ahmadabad by Times

Food Guide for the 3rd Consecutive year.


5/24

pg. 5

CafCoffee Day takes top honoursat CocaCola Golden Spoon

Awards 2010

y CCD bags the Best Coffee Bar title for the 3rd consecutive

year.

y Caf Coffee Day takes top honours at Coca Cola Golden Spoon

Awards 2010

y Stimulating beverages to keep you warm during the Winter

y SaReGaMaPa over a cup of Coffee

y CCD opens its second caf outlet at Badnera Road

y Friendship Day release July 09

y

Combo Carnival at CDS April 09y Shadows Menu launch January 2009


6/24

pg. 6

Food:

A.)SMALL EATS

Chicken Hot Dog...

Choco brownie


7/24

pg. 7

Choc doughnut

Cookies

Mocha muffin su...

Veg samosa

B.) BIG EATS:

Chicken burger


8/24

pg. 8

Chicken salad s...

Garden salad SA...

Spinach corn SA...

Veg burger

Zingy pizza san...

Zingy pizza san...


9/24

pg. 9

C.)SWEET EATS

Carrot nut cake

Choc black for...

Chocolate fanta...

Mystery mousse

Sizzles dazzle b...


10/24

pg. 10

D.)SUNDAES

Choc hola

Chocolate ice c...

Cookie medley

Dark-passion

Fruity bliss


11/24

pg. 11

Mocha Choc Del...

Vanilla Ice Cre...

BEVERAGES:

Hot coffees

Cold coffee

Hoteas


12/24

pg. 12

Frosteas

Choco-lattes

Fruiteazers


13/24

pg. 13

SALESPROMOTIONS:

Merchandising- Every CCD stocks

merchandise ranging from coffee mugs, T-shirts, caps, bags, coffee

filters, mints, different flavours of coffee powders, tea and cream,

wafers and biscottis. It also merchandises promotional materials for

other brands it associates with. When some brands are conducting

events for which passes are distributed or movie premiere tickets are

given out, CCD is an important hub for these activities as most of the

target market. CCDs Guide to Active Holidays- It is a travel guide

focusing on adventure sports and is available in the CCD outlets, for

people seeking escapade from monotonous life. Cafe Beat- An in-

house magazine which gives the entire low-down on whats

happening in CCD outlets across the world. It describes experiences

of customers, celebrations in CCDs, and covers youth-centric topics

like movies, music, travel, lifestyle, e-dating, books and careers.

Around 38% of CCD goers read Caf Beat and some carry it back

with them. CCD has now tied up with World Space and Micro sense

to provide satellite connectivity in its outlets.


14/24

pg. 14

CONTEST AND OFFERS:Grab the City-Hopper

coupon from the CCD at

departure terminal, which

entitles you to a 15%

discount anywherein Indiaexcept

yourcityoforigin.


15/24

pg. 15

SEGMENTATIONSTRATEGY:

Caf Coffee Day has its main consumer base in the age

group of 15-29 years. Its customers are mainly middle class and upper middle class

youth who are upwardly mobile. From the market, CCD seeks to target not just the

youth but anyone who is young at heart. More than 10% of their customers are above

35 years of age. The evidence of the connect CCD has been able to make, particularly

among the youth, comes from the findings of Brand Equity's Most Trusted Brands 2008

survey. In the food services category, CCD ranks No 2, while McDonalds stands at No. 3

and Barista lags at No 5. The graph below indicates official figures for the type of

consumers of CCD. We can clearly see that its most profitable segment is the 20-24 age

brackets. These customers can afford to visit CCD on a regular basis and have a habit-

forming attitude towards CCD.

Coffee Gyan

y Want a bite of coffee? Yes, Legend has it that in the early days, Coffee

was eaten. Tribes in Africa used to mix coffee berries with fat which

formed edible Energy Balls and ate them.

y Coffee is one of the most popular beverages today, thanks to

Islam.Back in the days, the religion prohibited drinking alcohol, but

coffee was considered an acceptable drink.

y Clothes not fitting? Wear a Bean belt:All coffee in the world grows in

the bean belt. It is the area between the Tropics of Cancer and Capricorn.

y Coffee comes from the root of a plant.Just Kidding! Coffee actually

grows on trees that can grow up to 30 feet tall. However, they are

cultivated to be about 10 feet tall for easy picking.

y George Washington invented Instant Coffee!A Belgian man with the

name George Constant Louis Washington invented Instant Coffee in

1906


16/24

pg. 16

y Ess-press-O:Unlike how its used now, Espresso is just a way that coffee

is prepared. That is, by shooting pressurized hot water through finely

ground coffee.

y Americano:The term Americano comes from American GIs during WWII. Theywould order order espresso with water to dilute the strong flavour.


17/24

pg. 17


18/24

pg. 18

PRODUCT ANALYSIS

Caf Coffee Day has different caf formats across

different cities. They can be categorized into Music

Cafs, Book Cafs, Highway cafs, Lounge cafs,

Garden cafs, and Cyber cafs.Every format has a

different feel to it.Also, Caf Coffee Day changes or makes fresh

additions to its menu from time to time. This includes

having specialty coffees from different countries,

exotic desserts and pine coladas. Since the target

consumer is of an age where one constantly seeks

change, this makes sure that the consumerdoes not

get bored with a repetitive style and seeks new places

to go to.


19/24

pg. 19

SWOT ANALYSES

Strength:o Products of extremely good

quality and taste.

o Its a youth oriented brand,

hence huge potential since

40 % population is below 20

o It produces/grows the coffee

it serves hence reducing the cost.

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

Weakness:o Weak brand image and lacks strength to maintain brand loyalty

o Poor ambience and decor. CCD outlet served prime space for

advertising and promotions

o Many of the CCD stores are incurring losses due to wrong site

selection.

Opportunities:o Coffee cafe industry is one of the fastest growing industries in

Asia.

o More people like to visit CCD for informal meetings.

o 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.

Other hukka parlours like Sheshas, Peshawar, Koylas, and U Turn are alsogaining lot of attention and preferred by young generation to hang around which

in turn is attracting the market captivated by CCD.


20/24

pg. 20

GENERIC COMPETITION

DIRECT COMPETITORS:

o Barista- This is the closest competitor to Caf 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 days work or an ideal setting for some business meetings.

o Caf 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.

o Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in

South India.

INDIRECT COMPETITORS:

o Eateries like McDonalds and Haldirams pose competition to CCD as

they are likely attractions for a consumer to be drawn to. A consumer can

well contemplate why he should spend around Rs. 45 on a coffee when he

can get a burger and a coffee for the same price at McDonalds.

o Local tea joints and coffee shops like Caf 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 COMPETITORS:

o

Starbucks is planning to enter India shortly and would be stiffcompetition for even an established brand like CCD.

o Coffee bars in the market of the other country that Caf Coffee

Day is entering is also be a factor CCD will have to plan for

before entering a market


21/24

pg. 21

DISTRIBUTIONSTRATEGY

Today CCD has the largest network of cafes in India, with over 607

Company Owned Company Operated cafes across 198 cities. But

they do not follow a franchising strategy. The channel partner has no

involvement in the daily operational activities of the Caf in the

retail space. Neither would he have to invest in operational capital

equipment or branding or marketing and promotion of Caf Coffee

Day.CCD opted not to follow forward integration and outsourced its

distribution responsibility to other parties in 2003. As its reach

spreads across India and it is now exploring smaller towns, CCD

would find it more expensive to maintain on its own. The private

players would procure raw materials like sugar and paper cups but

coffee beans would still come from Bangalore.


22/24

pg. 22

COMPETITIVE STRATEGIES OF CAF COFFEE DAY

o Caf 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 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.

o Similarly, the food items available in Caf Coffee Day are

obtained from local suppliers whereas Baristas food is catered

by the taj caterers. Caf Coffee Day would hence, have a lower-

cost advantage.

o The brand strength of Caf Coffee Day in comparison to

Qwickys and Caf Nescafe is far greater and its reach is on a

countrywide scale. A consumer travelling across cities would

not find it too difficult to seek a Caf Coffee Day outlet instead

of deciding on trying a Qwickys, which he is not accustomed to.

o Caf Coffee Day has an advantage of top-of-mind recall for

coffee-shop-goers in India, especially because it set the caf ball

rolling in the country.

o It is a place where a lot of young people can meet, chat, have

fun and let their hair down, rather than sit and sip a cup of


23/24

pg. 23

coffee in prim and proper serenity. This is one of the main

factors for why it is chosen over places like Barista or Mocha.

MARKET EXPANSION

Recently, Caf Coffee Day 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

Caf Coffee Day. This way, CCD can reach out to another set

of consumers, apart from the young crowd it has mainly

catered to.

SUMMARY

Caf Coffee Day is now looking at more caf

formats to try in new outlets. They are planning on having

sports cafes, singles cafes and fashion cafes. Also, CCD is

planning on opening more lounge cafes across the country.

Like it did with Ginger hotels, CCD can also try and find

consumer segments which it did not earlier think of catering

to.


24/24

pg. 24

OBSERVATION

After the study of this beautiful retail chain coffee cafe day

(CCD). I observe that basically it deals only in metro cities

or in several towns. CCD should be proceeding for the rural

area also by making the cup of tea not only the coffee or

other drinks. It will give more business to the company. And

who never hared about this they will become new customer

for the company. It will be more beneficial for the company.

It will give sound growth to the business.

Documents

project on ccd by manoj singla