CAFE COFFEE DAY (CCD)

A LOT CAN HA PPEN OVER COFFEE

By:
Avadhesh Singh Abhishek Kumar Singh Ankit Nawal Mahendra Yaday

Caf Coffee Day (CCD)

CCD is a chain coffee shop in India. It Opened its first caf in 1996 on Brigade Road in Bangalore.

Largest caf retail chain in India, with 1230 caf in 141 cities.
CCD has today become the largest youth aggregator. Their success strategy has come by focusing on Accessibility, Affordability.

Some Facts
Coffee was first known in Europe as Arabian Wine. Coffee is presently the second most traded commodity in the world. It is second only to oil. The Coffee Caf Industry The Coffee Caf industry is currently one of the biggest and fastest growing sectors in business. The industry consists of a mix of individual cafs, hotel cafs and retail caf chains.

Mission & Vision

Mission: To be the best Cafe chain by offering a world class coffee experience at affordable prices.

Vision: To be present in every space where coffee can be an integral ingredient

What Does The Different Colors Symbolize

RED Stands for leadership and
vitality, it is 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.

Factor Determining Demand for CCD

Affordable price as compared to competitors. Strong youth orientation. Social place to relax. Customer oriented. High rated tastes. Value for money. Variety and wide choice. Bandwagon effect and demonstration effect. Good hospitality.

Strong brand image. Coffee drinking fashion. Wide network of brand choices, strategic positioning. Status factor for middle class youth. Quality products. Friendly and stylish social hub. Increase in disposable income. Consistent service at all outlets.

Positioning
From beginning, it positioned itself as a being coffee bar and maintaining it for a long time. For a consumer CCD represents as fun place where one can go with a whole bunch of friends at any time of day and have good time, over coffee. Caf coffee day is know to experiment with different caf formats: Music Caf Books Cafe Highway Caf Lounge Caf Garden Caf Cyber Caf

CCD Customer Satisfaction

CCD uses Marketing Mix to satisfy their customers. Product: Wide range of products appealing to Indian Coffee and Snacks lovers. Indian test
Price: Major customer 15 to 29 years, price range 20 to 200 (minor changes)

Place: Placed a cafe in every possible location where some business can be generated. Their outlets are generally located in High Street/ Family Entertainment Centres, gas stations.
Promotion: CCD does not look at mass media as a viable area of advertising. Caf Coffee Day held a contest around a very popular programme on Zee English called Friends. All the six lead characters are shown often visiting a coffee shop. They have tied up with Channel [V]s Get Gorgeous contest. Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na special Caf Citizen Card for rewarding Caf Coffee Days customers. It is a loyalty program to gain new customers and retain the existing ones

Process: The ordering and delivery process in CCD was earlier based on self- service. But now in most of coffee shops the waiter comes and takes away the order and delivers the order on table.
People: People at Caf Coffee Day believe that People are hired for what they know but fired for how they behave. Motivation and personal skill are laid emphasize upon.

Segmentation
CCD has its main consumer in the age group of 15-29. Its consumers are mainly middle class and upper middle class youth who are up upwardly mobile. CCD not only target youth but any one who is young at heart. More than 10% of customers are above 35 year of age.
Percentage of Customers
Percentage of Customers 37.9 24.8 23.4 3.3 15-19 20-24 25-29 30-34 5.5 35-44 6.3 >45

Frequency of Visit

Gender Percentage

Frequen tly 18% Occasio nally 22% Monthl y 16% Weekly 44%

Female 40%
Male 60%

USP of Cafe Coffee Day?

CCD has the right background of taste for coffee. It is due to the ideal customer positioning and approach that the footfalls have increased. Average footfall per day has been 50,000 to 70,000 customers at its outlets. Secondly, CCD concentrates on the quality and range of products. It understands coffee much more than anyone itself. It has been winning the Indian Barista continuously holding the top position since the last seven years. Lastly, its pricing has been kept in mind for the youngsters.

Best Selling Item On The Menu?

The best selling item in summer is frappe, which is coffee and ice cream blended together. It is favored by the young people. In winter it is cappuccino, especially in the northern states, the best sellers are hot coffee. But yes, cold coffees are very popular. If you look at average sales per year, cold coffee sales are higher than the hot coffees. We have a cardamom flavored coffee, chocolate flavored coffee, coconut flavoured coffee, even a mint flavoured coffee and a coffee garnished with bitter coffee beans

Vertical Integration
CCD is well known for being vertically integrated to cut costs: from owning the plantations and growing the coffee, making the coffee machines and making the furniture for the outlets.

The machines cost them 1.2 lakh each, which they say is half the cost of an imported coffee machine. The maintenance cost of CCD's machines is also less than foreign machines.

Distribution of Outlets
Every Caf Coffee Day outlet is a part of Indias largest coffee conglomerate named Coffee Day. Since all the cafes are owned by the company, it becomes easier for them to conduct feedback surveys like dips ticks etc.

Coffee days most unique aspect is that it grows the coffee and serves in its cafes.
Caf Coffee Day currently operates 213 outlets all over the country. They have a market presence in over 49 cities. Delhi, NCR alone has 24 outlets. Each caf, depending upon its size attracts between 400 and 800 customers daily.

Decor & Architecture

Caf Coffee Day had gone in for image change and restoring of interiors in the last quarter of 2001.
Caf interiors have been given a whole, new look. In a change from the largely wood and granite based interiors, there is more of steel and lots more color now.

Tie-ups
Besides that Caf Coffee Day also tie up lot of the youth brands. Their promise to the customer is that A Lot Can Happen Over a Coffee. So every time they try to ensure something good happens to their customer. They have a contest going on with Levis, another one with Scooty, Liril, latest one with Airtel Friends.

Promotion scheme

Value for Money

Customers always take into consideration 2 factors while purchasing a product.
The price of the product The quality or quantity of the product.

Having a low- priced low value product or a high- priced highvalue product is often difficult to market or sell. What customers ultimately look for is value for money.

Threats From Competitor

Barista

Costa coffee
Starbucks

Coffee world
Barnies Coffee

Mocha Coffee

% Market Share Of Competitors

Barnies Coffee 5% Coffe world 5%

Others Sales 4%

Mocha 10% Costa 11%

CCD 50%

Barista 15%

CCD on a new strategy to counter competition in the segment

CCD is expanding coffee chains, introducing new price points and consolidating vendors, and leveraging its critical mass and existing wide presence. CCD is very flexible to adopt what customer actually like. They evaluate customer preference over a period time and change whatever needs to be changed. CCD changed its products and the fillings, so they are much more international but contemporary to the Indian taste. Recently launched desserts at a price point of Rs 20. CCD is also looking at a combo of products.

Indirect Competition
Restaurant like McDonalds and Haldiram pose competition to CCD as they are likely attraction for consumers. A consumer can think 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. Local tea joints and coffee shops like caf Nescafe (small place but targeting the same group of customers)

Strength:
Excellent brand name and brand visibility Products of extremely good quality and taste. Huge young crowd as target group Excellent ambience and service Over 1230 outlets and 450,000 visitors per day It produces/grows the coffee it serves hence reducing the cost.

Weakness:
Introduce cheaper versions of coffee Tap the smaller towns/cities Merchandising. Many of the CCD stores are incurring loses due to wrong site selection. Tie ups with other companies for promotion

Opportunities:
Introduce cheaper versions of coffee Tap the smaller towns/cities Merchandising. Tie ups with other companies for promotion

Threats:
Entry of foreign players like Starbucks' Dependent on Govt commodity rates Large unorganized market.

CONCLUSION
Highly rated Taste & Quality of products Value for money proposition

Strong youth orientation:

THANK YOU