Chetana’s Bachelor of Management Studies

Subject: Strategic Management

Topic: Café Coffee Day

Group no.: 3

Submitted to: Prof. Prasanna Sant

Name Roll no.Gaurav Babel

Prince Pandey

Vaibhav GoregaonkarKarthik Nadar 2138

Girija Hirve

Akshaya Surve

Group Members

Introduction

India’s largest conglomerate,

Amalgamated Bean Coffee Trading

Ltd

A 750 crore ISO 9002 certified

company

First to launch the ‘coffee bar’

concept in India

1319 outlets all over India and still

counting..

History

The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka

It was founded by V.G.

Siddhartha

Founder and Chairman

V.G. Siddartha

Mission

To be the best Café chain by offering a world class coffee experience at affordable price

Vision

To be the only office for dialogue over a cup of coffee

Important Events

Important Events (Contd…)

Competitors

Competitors (Contd…)

Indirect competitor

Market Share

60%25%

15%

Sales

CCDBaristaothers

In-house Research

Research shows that while the customers go to them for products, a substantial amount of their customers go there to “hang out” with friends

The café is also venue for business meetings (13%), celebrating special occassions (10%) or just plain timepass (17%)

Key Target Audience

Major chunk of CCD customers fall within the age group of 20 to 30 which accounts for 57% of the overall percentage

The group comprises mainly of college going students and young working professionals

9%

13%

21%29%

28%

Age

more than 30less than 1916-1920-2425-30

Sex ratio and Marital Status

48%52%MaleFemale

There is a definite skew towards singles:

28%

3%

69%

Sales

MarriedothersSingles

Group Sizes

Maximum foot-falls are in group size varying from 3 to 5 people followed by people coming in groups of 2, a major part of which are couples 18%

21%54%

7%

Mostly SingleTwo2 to 5More than 5

Products

Grows the coffee it serves in its cafes

Well-equipped roasting unit

The eatables catered by different vendors

Ice creams – Cream Bell

Milk – Amul

Snacks from local vendors

Sells merchandise trough its stores

Enjoys trust for quality, hygiene and

consistency of food

Products

Price

Affordable prices. Price range starts from Rs. 52 onwards. Only minor changes in the pricing policy due

to changes in Government taxes.

Physical Evidence

Logo :

- Large font- Emphasis on the word Café

- Red signifies Leadership and Passion

-Dialogue box highlights the connection

between 'coffee' and 'conversations'

Architecture and Décor uses bright colours

and interiors according to the youth

Designing of pamphlets posters and menu

to attract the youth

Process

• Ordering and delivery earlier was self service and now most of the coffee shops have waiters to take order and deliver at the table

People

Emphasis on motivation and

personal skills of the people

Friendly waiters and services

Employees follow

international standards of

hygiene, cleanliness and

personal grooming

Reward schemes like

employee of the month

Places

• Prime factor for success-

Located at every possible

location where business can be

generated

• Caters to target market with

strategically placed outlet

Places

• Metros

• Tier – I cities (Jaipur, Kanpur, Surat)

• Tier – II cities (Mysore, Guwahati,

Jamnagar)

• Satellite cities and urban

outgrowths (Navi Mumbai, Faridabad,

Secunderabad)

• To be expanded to Tier – III cities

• Tie-up with Ginger hotel of the Taj

group

Positioning and Brand Image

o Brought café culture to India

o For the youth : Young customers, young and

friendly staffs

o Highest distribution network

o Target middle and upper middle class

o Age group: 15-29

Café Formats

Different café formats :

Books cafes

Music cafes

Highway cafes

Garden cafes

Cyber cafes

Lounge cafes

Promotion

Through SMS

Valentine’s day promotion, “Café Coffee

Day luv zone”

Promotion (Contd…)

Tie ups• Liril, Airtel Friends, etc• HDFC wanted to promote their debit cards

and they chose Café Coffee Day, and debit card machines were fixed in some cafes

Re-Branding

Earlier perceived as a place where

intellectuals meet

Positioned itself as a coffee bar and

maintained that position for long time now

CCD has latent market in youngsters

For youngsters- CCD is a fun place where

one can go anytime of the day and have

fun with friends. In 2002 CCD underwent a

re-branding exercise

CCD spent Rs. 1.5 billion to redesign existing

cafes (2009)

Re-Branding (Contd…)

Strengths

Products of extremely good

quality and taste

It’s youth oriented brand, hence

huge potential since 40% of

the population is below 20

It produces the coffee it serves

hence reducing the cost

USP of brand is its considered a

highly affordable brand

Weakness

The store ownership of the

company might hinder in their

expansion policies

Price of the products is

relatively higher than Java

Green and McDonalds

CCD cafes are small in size

Many of the CCD stores are

incurring losses due to wrong

site selection (National

Highways)

Opportunities

Coffee café industry is one of the

fastest growing industries in Asia

Many 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

Changing lifestyle of youth, they like to

spend time lounging

New products

Threats

Competition with other coffee cafes

like Costa Coffee, Barista and

Mochas

Customer trends towards more

healthy ways and away from

caffeine

International players like Starbucks

New entrants and costs

Competitive Strategies

Follows a backward integration of the

value chain

Procures coffee beans from its base in

Bangalore

Quality assurance

Focus on core competence- coffee,

outsources other items

Food items are obtained from local

suppliers- Cost advantage

Values

Pride

Respect

Integrity

Self-Discipline

Motivation

Thank you