Case Study: IMB 407 (IIM Bangalore)

EXPLORING BRAND ASSOCIATIONS IN THE INDIAN CONTEXT:

CAFE COFFEE DAY
Mentor: Prof. Arti D. Kalro

The question posed at the end of the case was regarding the decision on how CCD
should analyze the associations that were obtained from the research survey. The
following's my answer to the question:
1. Current perception among the consumers of CCD:
a. For the Non-Loyal respondents, CCD was an expensive brand of coffee.
Whereas for the Loyal ones, CCD was not at all an expensive brand. The
associations were totally contrasting. This means that as the number of visits
increases, the consumers no longer feel that the coffee at CCD is too costly.
This is probably because they either get accustomed to the type of coffee
served at CCD or they just start liking the overall experience of CCD and think
that it is worth the price. Hence, the key lies in attracting the repeat visits by
an entirely new customer initially and probably he'll be back again and again
on his own.
b. For both Non-Loyal and Loyal respondents, the cafe was a place to hang out
and spend time with friends. This is by far the most common
opinion/association in the minds of all types of consumers.

2. On analyzing the associations of the loyal consumers of both CCD and Barista
regarding the brand as a whole, I was able to draw up the following inferences:
a. The core competencies or differentiating brand associations of CCD, which
are also weaker associations in the case of Barista are-
i. The interiors of the cafe made the visitors feel extremely comfortable.
ii. The fact that the cafe was a place to hang out and spend time with
friends.
b. The core competencies of Barista which were comparatively weaker in the
case of CCD:
 i. The brand highlights one's status.

c. Now I mention the associations which are not necessarily strengths of CCD
but are miles ahead of the associations generated by Barista (as per the Liker
scale):
i. The people who drink the brand are sophisticated professionals.
ii. The place is for everyday coffee lovers.
iii. The cafe is a place to hang out with friends.
d. Similarly, the other way round, the comparatively stronger/favorable
associations of Barista:
i. The brand's coffee makes one feel proud about drinking coffee.
ii. Drinking from Barista is a status symbol.
iii. Barista's coffee has the authentic color of coffee.
iv. Barista's coffee makes the drinkers feel refreshed or energized.

3. My conclusion is that CCD definitely has the upper hand in brand loyalty and
also in terms of profitable brand associations, for now.

4. My suggestions on the strategy so as to develop the brand associations as a

strong differentiator among the other brands of cafes:
a. Do not let go of the core competencies:
i. Keep the interiors comfortable and warm. Try to improve upon them.
ii. Keep promoting and maintaining the cafe as the ideal place to hang out
with friends
The change of the logo to a 'comma' was an extremely smart one to
promote conversations and hence, coffee.
An advertising campaign can be initiated which uses the fact that
today's generation is hooked to social networking. An example for this
kind of an ad will be the one with a line: "(Even) In the world of Texts,
Pings, Likes, Tweets, Shares and Whatsapp...Nothing beats a
conversation made over a cup of coffee..."
b. Build on the high margins i.e. points mentioned in '2. c)...' and widen the gap
between itself and the competitor:
 i. As a place for professionals: The newer outlets can be strategically
opened near working class hubs or in areas consisting of a high number
of relatively upper-class offices. E.g.- Hiranandani in Powai, Mumbai. The
reason I've given this example is that today Hiranandani has outlets of
both Starbucks and Gloria Jean's Coffee alongside another premium
category cafe but not a CCD outlet. The place is clearly an untapped
market and has lots of potential being situated near a huge educational
institute (i.e. IIT Bombay) as well. I am sure there are many more places
like these where CCD hasn't opened up yet. These need to be identified
and attacked.
ii. As a place for everyday coffee-lovers: Promote coffee-love in
advertisements/promotions e.g.-
An advertisement where a couple can be shown and the girl can be
shown as the lead with a voiceover in the background (tagline)-
"Coffee... and him...meeting both your loves at the same table... with
Cafe Coffee Day"
A series of advertisements promoting the love for coffee in a similar
way with some featuring the boy as the lead. The possibilities are
many.

c. Reduce the gap between Barista and CCD in the associations where Barista
has the lead:
i. Offer stronger variants of coffee or probably increase the average
caffeine content in the coffee so as to give a better 'refreshing'
experience.
ii. Try to have a deeper, more authentic color and taste of coffee. This can
be done by researching a bit about the process of making the coffee itself
or by cultivating/using better quality coffee beans.

Aakash Rajwani
Second Year Chemical Engineering Undergraduate
Indian Institute of Technology Bombay
E-mail ID: aakashrajwani.iitb@gmail.com
Phone: (91)8888665000