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An Analysis on Consumer Preference towards Caf Coffee Day

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MBA PROGRAM OF DEPARTMENT OF MANAGEMENT STUDIES

PREFACE
Market provides a key to gain actual success only to those brands which match best to the current environment i.e." imperative" which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality

products and excellent taste and services which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year. This survey report introduces study of consumers preferences for Caf Coffee Day. After going through a detail analysis of market behavior and future prospect, t may also provide an opportunity to Caf Coffee Day to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of Bangalore, city in particular and throughout the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers. This study report also provides the various factors affecting the services. Marketing Division of Caf Coffee Day has to keep in mind various factors specially while preparing a plan for marketing its product or services. Detail description along with analysis of surveyed data is being presented in this report

CONTENTS
Chapter 1. Introduction.

Chapter 2. Chapter 3. Chapter 4. Chapter 5. Chapter 6. Chapter 7. Chapter 8.

1.1 Caf Coffee Day. 1.2 Objectives. 1.3 Limitation. 1.4 Research Methodology. Review of Literature. Data Analysis and Interpretation. Findings and Suggestions. Conclusions. Annexure. Questionnaire. Bibliography.

INTRODUCTION:
Consumer preference depends on the products perceived performance or service relative to a buyers expectations. If the products performance falls short of expectations, the customers are dissatisfied. If performances match the

expectations, the customers are satisfied. If the performance exceeds expectations, the customers are highly satisfied. Outstanding marketing companies go out of their way to keep their customer satisfied. Satisfied customers make repeat purchases and tell others about their good experience with the product. The key is to Match Customers Expectations with the company performance. Smart companies aim to delight customers by promising only what they can deliver, then delivering more than they promise.

About Caf Coffee Day:


Simply put, Cafe Coffee Day is India's favourite coffee shop, for the young and the young at heart. We're part of India's largest coffee

conglomerate,

the

Amalgamated

Bean

Coffee

Trading

Company.

You should see our estates, there's over 10,000 acres of rolling hills with the coffee shrubs making for lovely walks. There's 11,000 small growers who make us who we are and we're glad to be a part of their lives. And we're not alone, there's folks in the USA, Europe and Japan that buy coffee from us, making us the top coffee exporter from India! To put in plainly we brought in the concept of cafes in India (this is where you thank us!). The first one opened in 1996 on Brigade Road in Bangalore. It's been an exciting journey since then, becoming the largest organized retail cafe chain in the country. Oh, and if your travels take you to Vienna or Karachi Prague, do stop by our CCDs there for taste of the brew from home. Caf Coffee Day is a chain of coffee shops in India with its headquarters in Chikkamagaluru, Karnataka. It is a division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) and is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore and today is the largest cafe retail chain in India, with 1000 cafes in 141 cities and many in its base, Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It offers satellite radio and Wi-Fi at some stores via its tie-ins with World Space and Microsense, respectively. It has recently opened cafes in Pakistan, Germany, and Austria, as well. It offers wi-fi in collaboration with Aircel in India.

Caf Coffee Day sources coffee from 10,500 acres (4,249 ha) of coffee estates, the second largest in Asia, that is owned by a sister concern and from 11,000 small growers. Cafe Coffee Day's divisions include:

y y y y y y

Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets. Coffee Day Square, a high level coffee bar in Bangalore. Coffee Day Xpress, which runs 730 Coffee Day kiosks. Coffee Day Takeaway, which runs 9000 vending machines. Coffee Day Exports, its exporting wing. Coffee Day Perfect, its (FMCG Packaged Coffee) division.

Partner With CCD:


How would you like your brand to join conversations of over 300000 young people who spend over 45 minutes at our 900+ cafes every day? At Cafe Coffee Day we're all about making the circle bigger, so get in touch with us to see how you can get in touch with those who matter to you! CCD has successfully executed a number of campaigns for various brands across a wide spectrum like FMCG, white goods, telecom, education and many more categories to meet their brand objectives and thus has proved to be a strong alternative to conventional media properties. The opportunity to get your brand message across to our customers in a very subtle yet effective method is limitless. From large wall spaces which can attract the customer with eye catching brand messages to 3D table stickers, to branded tissue papers, the list is endless. We are also trying to continuously innovate and offer the best possible options to create a successful campaign.

OBJECTIVE OF THE STUDY:


y To study the consumers preferences for Caf Coffee Day.

y To know the percentage of males and females that is aware about Caf Coffee Day. y To know which brands advertisement mostly people have seen. y To know the reason to go Caf Coffee Day. y To know why was the advertisement being noticed by the consumer.

LIMITATIONS OF THE STUDY:


y Some of the respondents refused to fill the questionnaires.

y The responses may vary as some people did not want to come up with real answers. y Limitation of time. y The survey is conducted only in a particular area; hence the results may vary in other parts of the cities. y The sample size was small. y The findings are based on the survey conducted in summer; the results may vary in other months.

RESEARCH METHODOLOGY:

DATA COLLECTION: Research approach : Survey. Research instrument: Structured questionnaire. SAMPLING PLAN: Sample unit:  People at age group: [Below 20] [21-30] [31-40] [Above 40] Years.  Bangalore. Sample size : 100. Sample process: Random. Duration ANALYSIS: Analysis have been done through  Regression.  Bar Charts.  Pie Charts. : 3 months.

Review of Literature:
A study of factors responsible for brand preference:

The purpose of this paper is the study of factors responsible for brand preference in drinking items, increasing competition, more due to globalization, is motivating many companies to base their strategies almost entirely on building brands. Brand preference means to compare the different brands and opt for the most preferred brand. This brand

Preference is influenced by various factors.


According to this study many factors were find out for preferring a brand like Brand persona Brand constancy Brand loftiness Brand value. In the identification of factors affecting the brand preference, it was concluded that brand persona is the most effective factor that affects the brand preference. This brand persona deals with the personality aspects or the external attributes of brand, thus it can be said that consumer prefer any brand by looking at the external attributes of a brand.

Color, Variant and Fragrance rule consumer preferences:


The intensity of color and the variant are the key drivers behind consumer acceptance of a particular brand, but packaging and labeling are not as important for winning over consumers; the study involved consumers at different stages of development and highlights the importance of adopting a sensory marketing approach. Companies need to continuously innovate to maintain market leadership. When the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumers. The study also demonstrates the importance of variants and color selection for new products.

Data analyses and Interpretation

Regression
Variables Entered/Removedb Variables Model 1 Entered Taste
a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: CCD

Model Summary Adjusted R Model 1 R .101


a

Std. Error of the Estimate .441

R Square .010

Square -.004

a. Predictors: (Constant), Taste

ANOVAb Model 1 Regression Residual Total a. Predictors: (Constant), Taste b. Dependent Variable: CCD Sum of Squares .138 13.234 13.371 df 1 68 69 Mean Square .138 .195 F .707 Sig. .403a

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Taste a. Dependent Variable: CCD B 1.345 -.053 Std. Error .117 .064 -.101 Coefficients Beta t 11.488 -.841 Sig. .000 .403

T-Test

One-Sample Statistics N Visit Time Factor People CCD 70 70 70 70 70 Mean 2.46 3.24 3.73 2.77 1.26 Std. Deviation 1.163 1.268 1.522 .837 .440 Std. Error Mean .139 .152 .182 .100 .053

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t Visit Time Factor People CCD 17.672 21.404 20.496 27.702 23.893 df 69 69 69 69 69 Sig. (2-tailed) .000 .000 .000 .000 .000 Mean Difference 2.457 3.243 3.729 2.771 1.257 Lower 2.18 2.94 3.37 2.57 1.15 Upper 2.73 3.55 4.09 2.97 1.36

Oneway

ANOVA Money Sum of Squares Between Groups Within Groups Total 7.598 49.045 56.643 Df 4 65 69 Mean Square 1.899 .755 F 2.517 Sig. .050

Oneway

ANOVA Money Sum of Squares Between Groups Within Groups Total 7.404 49.239 56.643 Df 3 66 69 Mean Square 2.468 .746 F 3.308 Sig. .025

CCD Cumulative Frequency Valid cafe coffy day Barista Total Missing Total System 52 18 70 7 77 Percent 67.5 23.4 90.9 9.1 100.0 Valid Percent 74.3 25.7 100.0 Percent 74.3 100.0

Visit

Cumulative Frequency Valid once in a week once in a month twice in a month once in six months once in a year Total Missing Total System 18 19 19 11 3 70 7 77 Percent 23.4 24.7 24.7 14.3 3.9 90.9 9.1 100.0 Valid Percent 25.7 27.1 27.1 15.7 4.3 100.0 Percent 25.7 52.9 80.0 95.7 100.0

Money Cumulative Frequency Valid <200 200-400 401-700 701-1000 >1000 Total Missing System 19 32 16 1 2 70 7 Percent 24.7 41.6 20.8 1.3 2.6 90.9 9.1 Valid Percent 27.1 45.7 22.9 1.4 2.9 100.0 Percent 27.1 72.9 95.7 97.1 100.0

Money Cumulative Frequency Valid <200 200-400 401-700 701-1000 >1000 Total Missing Total System 19 32 16 1 2 70 7 77 Percent 24.7 41.6 20.8 1.3 2.6 90.9 9.1 100.0 Valid Percent 27.1 45.7 22.9 1.4 2.9 100.0 Percent 27.1 72.9 95.7 97.1 100.0

Time Cumulative Frequency Valid <1/2 hour 1/2-1 hour 1-2 hours 2-3 hours >3 hours Total Missing Total System 5 18 18 13 16 70 7 77 Percent 6.5 23.4 23.4 16.9 20.8 90.9 9.1 100.0 Valid Percent 7.1 25.7 25.7 18.6 22.9 100.0 Percent 7.1 32.9 58.6 77.1 100.0

people Cumulative Frequency Valid alone with 1 person 2-3 people 3-4 people >4 people Total Missing System 2 27 27 13 1 70 7 77 Percent 2.6 35.1 35.1 16.9 1.3 90.9 9.1 100.0 Valid Percent 2.9 38.6 38.6 18.6 1.4 100.0 Percent 2.9 41.4 80.0 98.6 100.0

Total

Factor Cumulative Frequency Valid taste of coffee Ambience service Brand value Passion Total Missing Total System 13 2 8 15 32 70 7 77 Percent 16.9 2.6 10.4 19.5 41.6 90.9 9.1 100.0 Valid Percent 18.6 2.9 11.4 21.4 45.7 100.0 Percent 18.6 21.4 32.9 54.3 100.0

Taste Cumulative Frequency Valid 1 2 3 4 Total Missing Total System 38 22 7 3 70 7 77 Percent 49.4 28.6 9.1 3.9 90.9 9.1 100.0 Valid Percent 54.3 31.4 10.0 4.3 100.0 Percent 54.3 85.7 95.7 100.0

Price Cumulative Frequency Valid 1 2 3 4 5 Total Missing Total System 21 28 12 4 5 70 7 77 Percent 27.3 36.4 15.6 5.2 6.5 90.9 9.1 100.0 Valid Percent 30.0 40.0 17.1 5.7 7.1 100.0 Percent 30.0 70.0 87.1 92.9 100.0

Brand Cumulative Frequency Valid 1 2 3 4 5 Total Missing Total System 36 19 12 2 1 70 7 77 Percent 46.8 24.7 15.6 2.6 1.3 90.9 9.1 100.0 Valid Percent 51.4 27.1 17.1 2.9 1.4 100.0 Percent 51.4 78.6 95.7 98.6 100.0

Behavior Cumulative Frequency Valid 1 2 3 4 5 Total Missing Total System 12 34 19 4 1 70 7 77 Percent 15.6 44.2 24.7 5.2 1.3 90.9 9.1 100.0 Valid Percent 17.1 48.6 27.1 5.7 1.4 100.0 Percent 17.1 65.7 92.9 98.6 100.0

Ambience Cumulative Frequency Valid 1 2 3 4 Total Missing Total System 23 31 14 2 70 7 77 Percent 29.9 40.3 18.2 2.6 90.9 9.1 100.0 Valid Percent 32.9 44.3 20.0 2.9 100.0 Percent 32.9 77.1 97.1 100.0

Availability Cumulative Frequency Valid 1 2 3 4 5 Total Missing Total System 37 13 7 10 3 70 7 77 Percent 48.1 16.9 9.1 13.0 3.9 90.9 9.1 100.0 Valid Percent 52.9 18.6 10.0 14.3 4.3 100.0 Percent 52.9 71.4 81.4 95.7 100.0

Age Cumulative Frequency Valid 15-20 20-25 25-30 >30 Total Missing Total System 4 42 23 1 70 7 77 Percent 5.2 54.5 29.9 1.3 90.9 9.1 100.0 Valid Percent 5.7 60.0 32.9 1.4 100.0 Percent 5.7 65.7 98.6 100.0

Age Cumulative Frequency Valid 15-20 20-25 25-30 >30 Total Missing Total System 4 42 23 1 70 7 77 Percent 5.2 54.5 29.9 1.3 90.9 9.1 100.0 Valid Percent 5.7 60.0 32.9 1.4 100.0 Percent 5.7 65.7 98.6 100.0

Sex Cumulative Frequency Valid Male Female Total Missing Total System 49 21 70 7 77 Percent 63.6 27.3 90.9 9.1 100.0 Valid Percent 70.0 30.0 100.0 Percent 70.0 100.0

Income Cumulative Frequency Valid <20000 20000-25000 25001-30000 30001-40000 >40000 Total Missing Total System 9 22 11 17 11 70 7 77 Percent 11.7 28.6 14.3 22.1 14.3 90.9 9.1 100.0 Valid Percent 12.9 31.4 15.7 24.3 15.7 100.0 Percent 12.9 44.3 60.0 84.3 100.0

Crosstabs

Case Processing Summary Cases Valid N CCD * Taste 70 Percent 90.9% N 7 Missing Percent 9.1% N 77 Total Percent 100.0%

CCD * Taste Crosstabulation Count Taste 1 CCD cafe coffy day Barista Total 27 11 38 2 17 5 22 3 5 2 7 4 3 0 3 Total 52 18 70

Crosstabs

Case Processing Summary Cases Valid N people * Price 70 Percent 90.9% N 7 Missing Percent 9.1% N 77 Total Percent 100.0%

people * Price Crosstabulation Count Price 1 People alone with 1 person 2-3 people 3-4 people >4 people Total 0 7 8 6 0 21 2 2 10 11 5 0 28 3 0 4 5 2 1 12 4 0 3 1 0 0 4 5 0 3 2 0 0 5 Total 2 27 27 13 1 70

Crosstabs

Case Processing Summary Cases Valid N CCD * Income 70 Percent 90.9% N 7 Missing Percent 9.1% N 77 Total Percent 100.0%

CCD * Income Crosstabulation

Count Income <20000 CCD cafe coffy day Barista Total 6 3 9 20000-25000 14 8 22 25001-30000 9 2 11 30001-40000 14 3 17 >40000 9 2 11 Total 52 18 70

Crosstabs

Case Processing Summary Cases Valid N Visit * Time 70 Percent 90.9% N 7 Missing Percent 9.1% N 77 Total Percent 100.0%

Visit * Time Crosstabulation Count Time <1/2 hour Visit once in a week once in a month twice in a month once in six months once in a year Total 1 1 1 2 0 5 1/2-1 hour 4 4 5 3 2 18 1-2 hours 5 4 6 3 0 18 2-3 hours 2 6 5 0 0 13 >3 hours 6 4 2 3 1 16 Total 18 19 19 11 3 70

Crosstabs

Case Processing Summary Cases Valid N CCD * Money 70 Percent 90.9% N 7 Missing Percent 9.1% N 77 Total Percent 100.0%

CCD * Money Crosstabulation Count Money <200 CCD cafe coffy day Barista Total 13 6 19 200-400 27 5 32 401-700 9 7 16 701-1000 1 0 1 >1000 2 0 2 Total 52 18 70

Correlations CCD CCD Pearson Correlation Sig. (2-tailed) N Age Pearson Correlation Sig. (2-tailed) N Correlations 70 -.022 .856 70 70 1 Age -.022 .856 70 1

The above bar diagram shows how often people go to coffee shop and how much money they spend there.

The above Graph shows how many people prefer cafe coffee day and Barista.

SUGGESTIONS:
On the basis of above study following suggestions can be given: y Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer. y The company should focus to bring some more different variants. y The company must be aware of and keep at least the latest knowledge of its primary competitors in market. y The company should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole. y The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers. y The visibility of any product plays an important role in making the customer, aware about it and is vital for the growth and development of any product. y For their advertisement they can also introduce a brand ambassador, because most of the consumers remember advertisement because of their brand ambassador.

Questionnaire
1. What coffee shop do you usually go to? A. Caf coffee day B. Barista

2. How often do you visit a coffee shop? A. once in a week D. Once in six months B. once in a month E. Once in a year C. Twice in a month

3. How much money do you usually spend at a coffee shop? A. <200 D. 701-1000 B.200-400 E. >1000 C. 401- 700

4. How much time do you usually spend at a coffee shop? A. Less than hour D. 2-3 hour E. >3 hour B. 1/2-1 hour C. 1-2 hour

5. How many people do you usually go with? A. Alone D. 3-4 people B. With 1 person C. 2-3 people

E. More than 4 people

6. What is the single most important factor for you to choose a coffee shop? A. Taste of coffee D. Brand value B. Ambience E. Passion C. Service

7. Please rank the following: A. Taste and quality of the products B .Prices of the products C. Brand value D. Staff Behavior E. Ambience F. Availability of products 8. Age: A. <15 D. 26-30 9. Sex: A. Male B. Female B.15-20 E. >30 C. 21-25

10. Profession: ________________ 11. Income: A. <20000 D. 30001-40000 B. 20000-25000 E. >40000 C. 25001-30000

BIBLIOGRAPHY:

REFERENCE BOOKS:

y Kotler Armstrong, (2004) Principles of Marketing, New Delhi, Prentice Hall of India, 10TH edition.

y Rajendra Nargundkar, (2011), Marketing Research Method, India, Tata McGraw-Hill, 3rd edition.

WEBSITES:
y www.cafecoffeeday.com/our-cafe.php?mnid=1&pcid= y www.en.wikipedia.org/wiki/Caf_Coffee_Day