BRAND DOSSIER

Cafe Coffee Day

Submitted to: Prof S. Govindrajan

In partial fulfilment of the requirements of Marketing management-1

Group 4:

Uma Balakrishnan

Manish Madhukar

Abhiram Goud

Sourabh Dhariwal

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 CONTENTS
Part 1
HISTORY.....................................................................................................................3
POSITIONING..............................................................................................................4
ADVERTISING, SALES PROMOTION AND SEGMENTATION STRATEGY..........................5
PRODUCT ANALYSIS...................................................................................................8
GENERIC COMPETITION..............................................................................................9
DISTRIBUTION STRATEGY...........................................................................................9
COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY....................................................10
MARKET EXPANSION.................................................................................................11
SUMMARY.................................................................................................................11
Part 2
PRIMARY RESEARCH PROPOSAL FOR CAFÉ COFFEE DAY..........................................12
HYPOTHESES:........................................................................................................12
INFORMATION REQUIREMENTS COLLATED FROM THE RESEARCH............................13
INSTRUMENTS OF DATA COLLECTION.......................................................................13
QUESTIONNAIRE.......................................................................................................15
SAMPLING PLAN........................................................................................................18
Part 3
METHODS OF DATA ANALYSIS..................................................................................18
HYPOTHESIS 1..........................................................................................................19
HYPOTHESIS 2..........................................................................................................22
HYPOTHESIS 3..........................................................................................................24
HYPOTHESIS 4..........................................................................................................26
ANNEXURE................................................................................................................28
ANNEXURE

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 PART I- BRAND DOSSIER INTRODUCTION

HISTORY
ABOUT CAFÉ COFFEE DAY

Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated

Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day. This
is a Rs. 300 crore ISO 9002 certified company. Its chief customers are in USA,
Europe & Japan. Based in Chickmaglur, the home of some of the best Indian
Coffees, Coffee Day has its business spanning the entire gamut of coffee
consumption in India. Its different divisions include:

• Coffee Day Fresh n Ground (354 Coffee bean and powder retail outlets)
• Coffee Day Xpress (341 Coffee Day Kiosk)
• Coffee Day Take away (7000 Vending Machines)
• Coffee Day Exports
• Café Coffee Day
• Coffee Day Perfect (FMCG Packaged Coffee) division

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its
first café at Brigade Road in Bangalore. Till about the late 1990’s 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 café
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, Café Coffee Day embarked
on a dynamic journey to become a large organized retail café chain with a distinct
brand identity of its own.

CAFÉ COFFEE DAY IN THE PAST 12 YEARS:

1996

1st café in

2001

14 cafés in 6 cities

2008
3
607 cafés across 98
cities, and in
 Near Future

Expanding to
Middle East,
Eurasia, East

POSITIONING

Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India.
At a time when the country was growing well economically and young India enjoyed
higher spending power, CCD as it is popularly known, started to set up the first
retail chain of coffee bars. It broke new ground in 1999 when the entire market
grew phenomenally with the entry of new players.

From the beginning, it positioned itself as being a coffee bar and has maintained
that positioning for a long time now. For a consumer, CCD represents a “fun place”
where one can go with a whole bunch of friends at any time of the day and have a
good time, over coffee.

In 2002, Café Coffee Day underwent a rebranding exercise through a change in its
logo. The earlier logo was a simple red square with a white streak running across,
and ‘Coffee Day’ written at the bottom. At this stage, CCD was still perceived as a
South Indian coffee joint similar to the Coffee House in Kolkata, a place where
intellectuals meet and spend their time discussing issues. CCD saw a latent market
in youngsters, who were increasingly looking for a place to spend time with friends
and have fun. It then created an umbrella mother brand, Coffee Day and four sub-
brands to represent the various activities. The logo then incorporated red, white and
green colours, a larger font and emphasis on the word ‘Café’. According to the
company, red signifies leadership and passion and the white swirl stands for purity
of purpose and the feel of coffee. The new colour green endorsed the long heritage
of CCD in growing coffee.

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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 cafés

The most recent addition has been lounge cafes. These cater to a more niche
segment than the general consumer segment of CCD. The age group of 20-29 would
be more able to afford a lounge setting than the group of 15-19.

ADVERTISING, SALES PROMOTION AND SEGMENTATION

STRATEGY

Café Coffee Day does not look at mass media as a viable area of advertising or
marketing spend. CCD is advertised through barter deals with other brands for
ground events

BELOW-THE-LINE ACTIVITIES:

• 2003- Levi’s launched a new range of Low Rise jeans through a campaign
called ‘6” below’. CCD displayed POPs of Levi’s in all its outlets during the
campaign.
• 2004- The launch of Liril Orange soap by HLL was conducted in Café Coffee
Day.
• 2004- TVS Scooty tied up with CCD for events in the coffee bars and at malls
on Valentine’s Day in February.
• 2004- CCD was the official ground partner for the Channel V Get Gorgeous
contest

IN-FILM ADVERTISEMENTS:

• Some Telegu and Tamil films with prominent brand placement

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 • Hindi films- It started with Bas Yun Hi and then conscious advertisement
decisions were made for Khakee, Main Hoon Na, Kyun Ho Gaya Na and
Mujhse Shaadi Karoge.
All these movies were targeted at young movie-goers, teenagers and people looking
for light-hearted entertainment. These are much the same kind of people who are
likely to visit Café Coffee Day.

• Serials like Kahani Ghar Ghar Kii, but there are no important tie-ups with such
entities.

SALES PROMOTIONS:

• 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.
• CCD’s 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.
• Café Beat- An in-house magazine which gives the entire low-down on what’s
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 Café Beat and some carry it back with them.
• CCD has now tied up with WorldSpace and Microsense to provide satellite
connectivity in its outlets.

SEGMENTATION STRATEGY:

Café 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 McDonald’s 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.

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 PRODUCT ANALYSIS

Café Coffee Day has different café formats across different cites. They can be
categorized into Music Cafés, Book Cafés, Highway cafés, Lounge cafés, Garden
cafés, and Cyber cafés. Every format has a different feel to it.

Also, Café 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 pina coladas. Since the target consumer is of an age where one constantly
seeks change, this makes sure that the consumer does not get bored with a
repetitive style and seeks new places to go to.

Café Coffee Day has changed its interiors twice since inception. First, during its
rebranding in 2002, where it brought in big photographic wall mounts of coffee
experiences, and yellow chairs and marble tables. In 2006, it again changed its
décor to cane chairs to give the outlets a more causal feel. Café Coffee Day has
hence constantly reinvented its look to keep up with the ever-changing wants of its
consumers.

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 GENERIC COMPETITION

DIRECT COMPETITORS:

• Barista- 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.
• Café 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’.
• Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in South
India.

INDIRECT COMPETITORS:

• Eateries like McDonald’s and Haldiram’s 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 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 COMPETITORS:

• Starbucks 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 Café Coffee Day is
entering is also be a factor CCD will have to plan for before entering a market

DISTRIBUTION STRATEGY

Today CCD has the largest network of cafes in India, with over 607 ‘Company
Owned Company Operated’ cafes across 98 cities. But they do not follow a
franchising strategy. The channel partner has no involvement in the daily
operational activities of the Café in the retail space. Neither would he have to invest
in operational capital equipment or branding or marketing and promotion of Café
Coffee Day.

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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.

COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY

• Café 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.

• Similarly, the food items available in Café Coffee Day are obtained from local
suppliers whereas Barista’s food is catered by the Taj caterers. Café Coffee Day
would hence, have a lower-cost advantage.

• The brand strength of Café Coffee Day in comparison to Qwicky’s and Café
Nescafe is far greater and its reach is on a countrywide scale. A consumer travelling

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across cities would not find it too difficult to seek a Café Coffee Day outlet instead of
deciding on trying a Qwicky’s, which he is not accustomed to.

• Café Coffee Day has an advantage of top-of-mind recall for coffee-shop-goers

in India, especially because it set the café ball rolling in the country.

• 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 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, Café 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 Café Coffee Day. This way, CCD can reach out to
another set of consumers, apart from the young crowd it has mainly catered to.

SUMMARY

Café Coffee Day is now looking at more café 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.

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 PART II-RESEARCH PROPOSAL

PRIMARY RESEARCH PROPOSAL FOR CAFÉ COFFEE DAY

Café Coffee Day is looking at fresh growth opportunities and is reaching out to new
markets. Some factors supporting its endeavours are that it has a wide reach and is
perceived as more than just a coffee place. Teenagers and ‘yuppies’ are its major
market and hence the place is more informal as compared to a traditional coffee
house. The ambience is that of a relaxed environment and hence acts as a perfect
hangout zone for target customers. Hence all the plans chalked out for expansion
revolve around these aspects.

Taking these points into consideration, we have framed the following list of
hypotheses for our research.

HYPOTHESES:
1. A lot can happen over coffee

CCD positions itself as much more than a conventional coffee shop. It is seen as a
‘fun place’ where youngsters come in groups and have a good time over a cup of
coffee. CCD hence is perceived as a hangout zone, meeting place for business
purposes, enjoying one’s private time etc. CCD provides facilities like Wi-Fi and
WorldSpace and other merchandise in order to pull in more customers. We aim to
study whether this actually holds true.

2. In sight, therefore in mind

CCD has 620 cafes spread across 102 cities. Its pan-India presence gives it a huge
advantage over competitors. Our hypothesis aims to prove that high visibility is one
of the reasons for CCD to enjoy top-of-mind recall and high number of loyal
consumers.

3. Service quality deteriorates with proliferation of outlets

Having a large number of outlets can also prove disadvantageous for CCD. With
increased hiring, it is possible that employee training is not stringent enough,
decreasing the quality of service at the outlet. Through analysis of consumer
experiences, we will try to find out if they feel this is true.

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4. Format cafes – the future lies here

As mentioned in the Literature Review, Cafe Coffee Day is planning to introduce

different cafe formats such as Sports Cafes, Singles’ Cafes and Fashion Cafes. It is
also looking to increase the number of lounge cafes. Our study will hence look into
whether this kind of expansion is feasible for CCD or not.

INFORMATION REQUIREMENTS COLLATED FROM THE

RESEARCH

From this study we will try to look into the following factors:-
Consumer Profile
The consumer profile of Cafe Coffee Day is perceived to be that of upwardly mobile
teenagers and youth. By having a clear idea of who the consumers are, the
company can chalk out new plans and activities targeted specifically at this age
group.

Consumer Preferences
Consumer preferences can be studied under the following parameters:
a. Preferred coffee joint
b. Factors behind choosing Cafe Coffee Day
c. Most popular aspects of Cafe Coffee Day
d. Inclination towards format cafés.

Factors Influencing Choice

There are different reasons for different people to visit Cafe Coffee Day. We aim to
assess what, out of many factors like accessibility, ambience, quality and menu,
drive people to choose Cafe Coffee Day.

Consumer Perception
Our research would also like to judge the perceived image of Cafe Coffee Day in the
minds of its consumers. This could be in relation to price, quality and image.

INSTRUMENTS OF DATA COLLECTION

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 When conducting any type of research, data collection inevitably becomes the main
phase. Data collection refers to gathering opinions and views of sample respondents
in order to get a structured view of what consumers think. To further our objective,
we have chosen the following methods of data collection:

Primary Data
1. Written Questionnaire- We plan to use a structured questionnaire with close-
ended questions and get a section of respondents to answer these questions.
2. Personal Interview- This will be used to garner subjective information from
respondents, which is not possible with close-ended questionnaires. Also, questions
with options like ‘others’ can be answered effectively with personal interviews.

3. E-mail Questionnaire- We shall be sending questionnaires by e-mail also.

These can be answered by respondents at leisure and without inhibitions. It will also
give us a wider spectrum of consumers to consider.

Secondary Data
1. Website of the company.
2. Online consumer forums like www.mouthshut.com
3. Communities of coffee lovers and youth.
4. Newspapers and magazines.

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 QUESTIONNAIRE
Name:

Age:

Sex:

Occupation:

1. Name three coffee shops that you know

a.
b.
c.

1. How often do you visit a Coffee Shop?

a. 2 – 3 times a week
b. Once a week
c. Once in two weeks
d. Once a month
e. Very rarely

2. How much money do you spend at a Coffee Shop? (in Rupees)

a. Less than 40
b. 40 – 80
c. 80 – 120
d. Greater than 120

3. On an average, how much time do you spend in a Coffee Shop?

a. Less than ½ an hour
b. ½ an hour to 1 hour
c. 1 hour to 2 hours
d. More than 2 hours

4. How many people do you go to a coffee place with?

a. Alone
b. 2 – 4
c. 4 – 8
d. More than 8

5. Why do you go to a coffee shop?

a. Only to have coffee

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 b. To enjoy my private time
c. Catch up with friends
d. For group activities(group studies, presentations, meetings)
6. What do you look for when u choose a coffee shop to go to?(Rank in order
of preference 1-highest , 5-lowest)
a. Convenience/accessibility
b. Ambience
c. Service
d. Quality of food
e. Price

7. Why would you go to a Cafe Coffee Day? (You can choose more than one)
a. Convenience/accessibility
b. Ambience
c. Service
d. Quality of food
e. Price
f. Others(please specify)

8. What do you normally eat or drink in a Cafe Coffee Day? (You can choose
more than one)
a. Coffee
b. Smoothies and similar drinks
c. Desserts and confectionery
d. Eatables like sandwich, samosas etc

9. Rate the following factors for Cafe Coffee Day (Tick the choice most
applicable)

Excellent Good Average Satisfactor Poor

y
Staff
behaviour
Value for
money
Availability
of
preferred
items
Delivery
time
Quality of
food/drinks

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10.Ambience (Tick your preference)

a. Comfort and Feel - relaxed / just comfortable / congested

b. Lighting and Colour - bright / sufficient / dull

c. Entertainment - engaging / I don’t mind it / irritating

d. Table Space - adequate / sufficient / not enough

11.Are you aware of the different ‘formats cafes’ Cafe Coffee Day is coming
up with?

Yes No

12.Will you prefer format cafes to a normal Cafe Coffee Day?

Yes No

13.If you had to choose, which of these café formats would you prefer (You
can choose more than one)
a. Music cafes
b. Book cafes
c. Lounge cafes
d. Garden cafes
e. Cyber cafes
f. Sports cafes
g. Singles cafes
h. Fashion cafes

14.Do you have any suggestions to improve Café Coffee Day?

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 SAMPLING PLAN

• Who Are We Surveying?

Our study of consumer opinions is concentrated on coffee-drinkers, youngsters and
young urban professionals or ‘yuppies’. These people come within the age brackets
of 15 and 29, which is the main consumer segment for CCD. Apart from them, we
are also looking at some respondents from the 30-40 age band. This is because a
part of our research would be to find out whether CCD can expand its target market
to this age group as well.

• How Many People Will We Survey?

We plan to take a sample size of 60 respondents. This would include people from
the segments mentioned above. We will divide these samples among the youth
accessible to us, teenagers across Kolkata and professionals and older people.

• How Will We Choose Our Respondents?

Samples will be chosen according to a combination of sampling procedures:
Convenience sample is one of the methods we will be using, as a part of our
respondents are easily accessible to us.
Judgment samples will also be used as we shall be choosing a set of consumers
who can give us considerably accurate information. With a brand like CCD, we
cannot resort to street-corner sampling as we need people who are aware of the
brand and the food services industry.

METHODS OF DATA ANALYSIS

Customer opinion and views are important in shaping a company’s business plans
and working on areas to further improve its services. The following are the tools we
will e using to analyse the data gathered from the research:
• Pie Charts- They show the diversity in the demographics of Café Coffee Day’s
customers. They will also show us what percentages of customers prefer certain
cafe formats, certain menu items etc.
• Frequency Distribution graphs- They will show us similar divisions in customer
habits and trends appearing in responses.
• Measures of Central Tendency- These will help us know the concentration of
respondents leaning towards a particular option.
• Correlation and Regression- These can be used to find relationships between
two variables like age and spending behaviour.

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 PART III- FINDINGS OF SURVEY

HYPOTHESIS 1
A lot can happen over coffee
The statement above is the tagline of Café Coffee Day. It explains in a concise way
how Café Coffee Day is not just a place where one comes for a cup of hot coffee.
CCD positions itself as much more than a conventional coffee shop. It is seen as a
‘fun place’ where youngsters come in groups and have a good time over a cup of
coffee. CCD hence is perceived as a hangout zone, meeting place for business
purposes, enjoying one’s private time etc. CCD provides facilities like Wi-Fi and
WorldSpace and other merchandise in order to pull in more customers. This is what
we aim to prove from the following questions.

Q4. On an average, how much time do you spend in a coffee bar?

If the main reason for a person to visit a coffee bar was just the coffee he can have,
it would not take him more than half an hour. Else, going to such a place with a
purpose would entail spending longer hours there. From the graph below, one can
observe that the highest number of respondents spent one to two hours in a coffee
parlour. We can infer that there is a reason more than just coffee behind this.

Q6. Why do you go to a coffee bar?

There can be several reasons for people to go to coffee bars. One would want to go
read a book, meet friends, meet a colleague, do some office work or just spend
some time alone. It is an escape from the humdrum of everyday life. We have tried
to find out the major reasons attributed to visiting a coffee bar.

Q12. Will you prefer a format café to a normal CCD?

Café Coffee Day has launched different format cafés in the past one year and is
planning to launch a few more. The company is setting up cafes based on particular
themes like Music cafes, Book cafes and the like. For example, a music café would
have its décor completely based on musical greats, walls painted with pictures of
instruments and different music-centric aspects. We have tried to analyse if people
would actually want to go to a coffee bar of these types.

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Q3. In one visit, how much do you spend at a coffee bar?

One cup of coffee at a tea-shop on a street corner would not cost more than Rs. 4-7.
A vending machine would not charge a consumer more than Rs. 15. Yet, at coffee
bars like CCD and Barista, people do not mind paying a far higher price for one cup
of coffee.

INFERENCES

From the first graph, one can see that a large chunk of respondents spend one to
two hours at a coffee bar. Also, 73.33% of these 60 respondents say that they visit
coffee bars to catch up with friends. One can also meet friends at a park, a mall or
at his/her house. But with increasing propensity to spend, consumers do not mind
shelling out a few extra bucks at a coffee bar as it gives them a good place to sit,
chat and spend leisure time. The graph of question 3 suggests this. The second
graph also suggests that 30% of respondents like to spend their private time at a
coffee bar, which would mean that the place gives them the atmosphere to let their
hair loose and do something apart from their monotonous life.
The pie-chart above shows that 70% of respondents would go to a format café.
These cafes are based on themes specific to them. The theme would decide
activities, ambience, music, visual cues and other aspects indigenous to the format.
If a book café gives consumers the environment to read and discuss books, avid
readers would haunt the coffee joint.
From the above analyses, we infer that apart from coffee which one can get at a
roadside cabin or at one’s home itself, consumers would actually go to a café to
have fun, do group work and relax, rather than just buy a cup of coffee.

HYPOTHESIS 2
In sight therefore in mind

CCD has 620 cafes spread across 102 cities. Its pan-India presence gives it a huge
advantage over competitors. Our hypothesis aims to prove that that high visibility is
one of the reasons for CCD to enjoy top-of-mind recall and high number of
consumers. From the following questions we will be able to prove this hypothesis.

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Q1. Name three coffee bars

We use this question to get an idea about the top of the mind recall value which is
associated with a particular brand.

Moreover, most of the respondents have given accessibility/convenience a top

priority on selecting a coffee bar. CCD scores highly in this area as well.

INFERENCES:

From the graph given above we can infer that most people respond CCD as the
coffee bar of first preference. This proves that CCD is one brand which uses its
large number of outlets to great advantage because of which it enjoys high recall
value in the mind of customers. Not to mention that because of high accessibility
which is a result of large number of outlets people find it more convenient to locate
a CCD as compared to other coffee bars.

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 HYPOTHESIS 3

Service quality deteriorates with proliferation of outlets

Having a large number of outlets can also prove disadvantageous for CCD. With
increased hiring, it is possible that employee training is not stringent enough,
decreasing the quality of service at the outlet. Through analysis of consumer
experiences, we have tried to find out if they feel this is true.
Under Q7 and Q8, we asked consumers to rate different features they feel a coffee
bar should give them in terms of convenience, ambience, price, speed of service
etc. Again, they were asked to rate how they think CCD has performed in these
factors.

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INFERENCES
The above graph gives us a comparative analysis of how consumers rate their
expectations from a coffee bar and how well they think Café Coffee Day has done to
meet their expectations. On a weighted average scale, the ratings of all 60
respondents were plotted on the graph to form a snake diagram. The blue line
shows that convenience plays a major role when they choose which coffee bar to go
to. On this parameter, CCD has performed better than expectations, thus giving
consumers a sense of delight. In general, people give importance of 3.25 to
convenience while CCD offers them convenience of 3.37. But on behaviour of staff,
CCD gives them service of weighted mean of 2.97 while they expect service of
weighted mean 3.1. Also, staff behaviour expected is at 3.27 while CCD has been
rated as 3.18 in this aspect. This shows that CCD has expanded and increased its
number of outlets to give consumers greater accessibility to their cafes. But service
quality of CCD has not been able to keep up. Behaviour of the staff has not been
upto expectations and at times is an irritant. Speed of service is also slow and
consumers come away with a sense of dissatisfaction.

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 HYPOTHESIS 4
AND INFERENCES
Format cafes – the future lies here
Cafe Coffee Day is planning to introduce different cafe formats such as Sports
Cafes, Singles’ Cafes and Fashion Cafes. It is also looking to increase the number of
lounge cafes. Our study has looked into whether this kind of expansion is feasible
for CCD or not.

Q11. Are you aware of the different format cafes CCD is coming up with?

This question analyses how much consumers know about CCD and its new ventures.
Format cafes have already been started in Bangalore and a few other cities. But the
pie chart below shows that very few know about it.

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Q12. Would you prefer a format café to a normal CCD?

This chart again shows us that people would a whopping 70% of respondents,
though unaware of the new concept are ready to give format cafes a try. A large
number of them prefer music cafes as seen below.

This proves our above hypothesis that format cafes would be a smart way for CCD
to maintain its position as an innovative coffee bar and stay in touch with wants of
consumers.

ANNEXURE
DEMOGRAPHICS

AGE:

The median age of respondents is 22

Mena age: 23.0667

SEX:

Males: 42

Females: 18

GEOGRAPHIC DISPERSION:

Respondents were geographically dispersed constituting major cities of India.

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