MINOR PROJECT REPORT

ON
MARKETING MIX
Café coffee day
PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENT
OF BACHELOR OF BUSINESS ADMINISTRATION
By:
NANDITA BHANDULA
Enrollment No. 03690201716

Under the guidance of

MS. JASPREET KAUR

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT

&INFORMATION TECHNOLOGY
(Affiliated to GGSIP University Delhi)
(2016-2019)

I
 DECLARATION

I hereby declare that the project work entitled Minor Project Report on
Marketing Mix of CAFÉ COFFEE DAY submitted to the Guru Gobind Singh
Indraprastha University is record of an original work done by me under the
guidance of MS. JASPREET KAUR, faculty member, Sri Guru Tegh Bahadur
Institute of Management & Information Technology.

...........................................

Signature of the scholar

Place: Delhi NANDITA BHANDULA

Date: Enrollment no. 03690201716

II
 CERTIFICATE

This is to certify that NANDITA BHANDULA student of Sri Guru Tegh

Bahadur Institute of Management & Information Technology of course BBA
Batch (2016-2019), has completed her research work titled “Minor Project
Report on Marketing Mix CAFÉ COFFEE DAY” under my guidance and
supervision. The work submitted is genuine and authentic.

….……………………………….....

Signature of Project In charge

MS. INDERPREET KAUR

…...…………………………………

Signature of Guide
MS.JASPREET KAUR
......………………………………

Place: Delhi Signature of Scholar

Date: NANDITA BHANDULA

III
 ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my

guide and mentor MS. JASPREET KAUR for her valuable guidance and the
confidence she instilled in me, that helped me in the successful completion of this
project report. Without her help, this project would have been a distant affair, her
thorough understanding of the subject and professional guidance was indeed of
immense help to me.

I am also greatly thankful to the faculty members of our institute who co-operated
with me and gave me their valuable time. Acknowledgement

……………………………..

Signature of the scholar

Place:DELHI NANDITA BHANDULA

Date: Enrollment no. 03690201716

IV
 INDEX

S.NO CONTENT PAGE NO.

1 INDUSTRY PROFILE 3
1.1 History 4
4-6
1.2 F&B Industry in India
6
1.3 Food processing
1.4 Other section in the F&B industry 7-9
1.5 Investments 9
1.6 Government initiatives 10
1.7 Global trends in F&B 10-11

2 COMPANY PROFILE
2.1 Introduction 12
13
2.2 Review of literature
14
2.3 Café coffee day Research
2.4 Objectives 15-16
2.5 Outlets 17
2.6 Subsidisries 17
2.7 Foundation 18
19-28
2.8 List of coffee house chains
29-30
2.9 Mission And Vision
2.10 Range of outlets 30-31
2.11 Other business 32-33
2.12 Menu of Café coffee day 34-36

3 RESEARCH
METHODOLOGY
37
3.1 Objectives
37
3.2 Secondry data 37-38
3.3 Collection Method
3.4 Limitations 38

1
 4 MARKETING STRATEGY
OF CAFÉ COFFEE DAY
4.1 Marketing mix of café coffee day 39-47
4.2 Distribution channel 48
4.3 Segmaentation, Targeting, Positioning, 49-52
Differentiation
4.4 Product lifecycle 53
4.5 SWOT Analysis 54-57
4.6 Competitors 58-69

5 FINDINGS 70-71
6 CONCLUSION 72
7 RECOMMENDATIONS 73
REFERENCES 74

2
 CHAPTER 1
INDUSTRY PROFILE

The global food and beverages industry is made up of many segments, including
groceries, oils and fats, food additives, functional foods and beverages, packaged
foods, health and natural foods, canned food, baked food, baby food, animal food,
soft drinks, alcoholic drinks, energy drinks, and packaging.

The industry is driven by consumer demand for more nutritious food and better
packaging, which also spurs technology advances in the field. Today,
pasteurisation, high-pressure processing, UV treatment, and nanotechnology are
influencing the industry. A concern for the environment has led to the use of more
recycled material for packaging.

The growth of the food and beverages industry is propelled mainly by developing
countries such as India, China, and Brazil, as the economies of these nations
improve and more people are lifted into the middle class.

The global food, beverage, and grocery industry was estimated to be worth $7.8
trillion in 2015, or about 10 percent of the world GDP, according to Plunkett
Research. The global packaged-food industry was worth $2.5 trillion. In 2013,
global food exports added up to $1.43 trillion.

3
1.1 HISTORY

The history of food and beverage is, of course, as old as humans themselves.
However, there were no major developments until the 19th century, when Nicholas
Appert invented canning and Louis Pasteur developed pasteurisation. These
processes made food a product that could be preserved and packaged for later use.

World War II prepared a fertile ground for innovations in the food industry. As
food was rationed and prices were regulated, better preservatives and flavouring
agents were developed. This paved the way for instant foods.

Improvements in distribution are a major part of the development of the food

industry. Before the Industrial Revolution, people consumed food and drinks
mainly from local markets. Today, thanks to transportation and cold storage
facilities, food can be taken to stores anywhere.

1.2 F&B INDUSTRY IN INDIA

India is expected to become the fifth largest consumer market in the world by
2025, according to a paper prepared by the Confederation of Indian Industry (CII)
and Grant Thornton.

Food and beverages is the biggest of the consumption categories. The F&B sector
is supported by the vast agriculture sector: India is the biggest producer of pulses,
and the second biggest producer of rice, wheat, sugarcane, and fruits and
vegetables.

It is also the biggest producer of milk and buffalo meat and ranks fifth in poultry
production. The other helpful factors: large extents of arable lands, favourable
climate, long coastline, and low wages.

4
The liberalisation of the economy in the early 1990s minimised business barriers.
The sector has found more avenues to the market with the development of modern
retail systems such as supermarkets. Meanwhile, transportation and storage
logistics have improved.

The huge population (1.27 billion in 2015) and the burgeoning middle class are the
other advantages for the industry. About half the population is under 30 years of
age, and many of them start to earn early and strive to lead a better quality of life.

The higher income levels of consumers give them higher disposal incomes.
Lifestyles have changed, and more families are eating out and trying out different
cuisines. Working couples are increasingly purchasing convenience foods.

Consumers have become more discerning and those in urban areas particularly
trust branded foods for their promise of quality.

A section of consumers have become extremely health conscious. This segment is

moving towards protein-rich foods and fruits and vegetables from carbohydrate-
rich or fat-laden items. Quality-conscious customers have taken the bottled water
market to $50 million.

The beverage industry, excluding alcoholic beverages, is worth about $16 billion.
Tea and coffee are the most popular beverages, followed by soft drinks (carbonated
drinks and juices), health drinks, milk-based drinks, flavoured drinks, and energy
drinks.

Half of the tea and coffee consumed in the country is sold unpacked. The alcohol
beverages market is estimated to be worth about $35 billion, with whiskey, beer,
and wine as the most popular drinks.

5
The F&B industry would do well to adopt global standards of quality and safety to
earn more consumer trust. The need of the hour is the introduction of Total Quality
Management principles.

1.3 FOOD PROCESSING

Of the nearly $400 billion overall Indian food and beverages industry, the food
processing sector accounts for about $130 billion. It makes up 10 percent of the
agriculture GDP and 12 percent of the manufacturing GDP.

The unorganised segment has a share of over 40 percent of the output. Food
processing makes up 10 percent of the country’s total exports. The key export
markets are the US, Vietnam, Iran, the UAE, and Saudi Arabia. Rice and wheat are
the main items for exports.

The food processing sector has various sectors including consumer foods (snacks,
beverages, etc.), dairy, meat and poultry, fish, grains and cereals, and fruits and
vegetables. Fruits and vegetables and meat and poultry take the lion’s share of
about 40 percent of the total household consumption.

Technology, mainly IT, has helped the industry evolve from just preserving and
packaging food to manufacturing foodstuff according to consumer demand.
However, it is yet to take full advantage of technology to reduce wastage. The
other main problems are lack of credit; lack of clarity in government policies and
in food safety laws; and shortage of employable manpower.

6
1.4 OTHER SECTORS IN F&B INDUTRY

Food retail

Not only in cities, modern food retail has grown in small towns, too. However,
nearly 70 percent of the business is in the unorganised sector.

The Food Safety and Standards Act, 2006, has given the organised retailers a shot
in the arm as they can conform to the regulations better. Increasing urbanisation is
helping the sector grow.

However, high real-estate prices are a worry along with the lack of cold storage
and problems in supply chain management.

Online grocery supply

Although grocery supply online is still in its early days, the convenience and price
factors are making it more popular in urban areas.

Online stores are able to offer attractive discounts and larger variety. Increase in
the number of Internet users is expected to boost prospects.

The main challenges are customers’ desire to actually see the products they are
buying, especially perishables, and dependable computer systems.

7
Food service

According to the National Restaurant Association of India, food service will be

worth nearly $68 billion by 2018.

The number of fine dining, casual dining, and quick service restaurants is growing
in cities. Younger professionals are their biggest customers. Home delivery and
takeaways are also gaining popularity.

The challenges are real-estate prices; lack of availability of personnel with

knowledge of basic service etiquette; electricity and water supply; sourcing of raw
foodstuff; and the number of licences needed.

Dairy

The Indian dairy sector was estimated to be worth $70 billion in mid-2015. The
growth is mainly owing to the White Revolution. India will likely produce 180
million tonnes of milk worth $135 billion by 2020. Technology has come to the aid
of the dairy sector, with ultra-high-temperature processing, aseptic packaging, and
membrane processing. The main challenges for the sector are rising prices of
fodder and lower milk yield of Indian cows and buffaloes.

8
Cold storage

India has a cold storage capacity of 30 million tonnes in 6,000 units, 90 percent of
them owned by private companies. The demand is expected to increase to over 45
million tonnes. Lack of skilled manpower to handle food according to the norms is
a major challenge.

1.5 INVESTMENTS

The Indian Brand Equity Foundation (IBEF) quotes figures from the Department
of Industrial Policies and Promotion to say that the food processing sector received
foreign investments of $6.4 billion from April 2000 to June 2015. The CII believes
that the food sector has the potential to receive investments worth $33 billion
before 2025.

Among the recent major investments likely in the sector is Amul’s plan to invest
$753 million to set up ten milk-processing plants and improve existing plants to
scale up milk production to 32 million litres per day by 2020 and ITC’s decision
to invest $120 million to set up a food processing unit in Telangana.

9
1.6 GOVERNMENT INITIATIVES

The government has prepared a Vision Document 2015 to promote food processing
industries. It has set up a $20 million international food park in Punjab and is
planning 42 “mega food parks.”

More degree courses in food processing and an entrepreneurship programme are to

be started and training centres set up.

The Union Budget for 2015-16 unveiled a corpus fund of ₹2,000 crore to provide
cheaper credit. The excise duty on plant and machinery has been reduced to 6
percent from 10 percent.

Most importantly, for consumers, the Food Safety and Standards Authority of India
has issued regulations quality and safety standards for food products .

1.7 GLOBAL TRENDS IN F&B

Taxes and regulations with consumer awareness growing, more governments are
cracking down on unhealthy foods. Regulators in some countries have imposed
taxes on some items in order to increase their prices and thereby bring down
consumption.
Consumers: Consumers are persuading the food industry to try to tempt them with
nutrition rather than taste. No wonder then that the global health food market is
estimated to touch $1 trillion in 2017 and the health drinks market $400 billion in
2016.

10
Internet

Customers are now more discerning and have ample data on the Internet to make good
choices. This and the convenience factor are persuading more people to buy food
online.

Sustainability

Companies are turning to recyclable packaging material and sustainable processes for
the sake of the environment. They are trying to minimise the use of electricity and
water and reduce wastage of food.

11
 CHAPTER 2

COMPANY PROFILE

2.1 INTRODUCTION

CCD is the largest coffee retailer in India. It started operation since 1996 by V.G
Sinddharth. CCD pioneered the café concept in India by year 2000 the company
had only 14 outlets in 6 cities. It was after year 2000 the company started on a
massive expansion program that has been it set up nearly 1000 outlets in India in
ten years. The café coffee day is owned by ABC Ltd which is the largest producer
of Arabic coffee in Asia. There were many move made by café coffee day.

It was café coffee day that made coffee drinking popular among India youth by
offering a brand experience environment and other value addition. There is much
different type of formats for its cafés like High street café, garden café, mall café,
Highways café etc. Café coffee day today has become the largest youth aggregate
for a marketing. Stand point the success has come by focusing on 3’A:
Accessibility, Affordalibility, and Acceptability coined by “ Bidisha Nagaraj, the
marketing president of café coffee day. The amalgamated bean is among India’s
top two coffee producers exporters with 10500 acres of coffee plantations in chik
magalur company has 3 formats to focus on its customers café coffee day lounge
the premium format for the elite customers. The café coffee day square the café
coffee day for the large number for the large number of regular customers.

12
2.2 REVIEW OF LITERATURE
The coffee market in India has been growing due to the demand for ready to drink
coffee and it has become a part of an individual’s daily concepts basket. It is café
coffee day that understand the changing trends in the tastes and preferences of the
consumers. Café coffee day is no longer the place for just some coffee cookie and
music. In a survey done by brand equity (economic times), the consumer ranked
café coffee day to be the 22nd place most trusted service brand of the country 2014
comparedhat2013.

The role of service employees is very important for the success of any services
organization, especially those that process people and internal marketing can help
firms to deliver service excellence. Service excellence means delivering what the
customer wants at the first encounter for café coffee day there is a lot of
competition in the leverage industry. The newly emerged player TATA Starbucks
Ltd Starbucks expanded its presence to Delhi in January 2013 by opening two
outlets at terminats3of the Indira Gandhi international airport and later it

13
2.3 CAFÉ COFFEE DAY RESEARCH

CCD opened a combination of standard outlets located at malls, airports, metro

station.

It took six years for café coffee day to open 35 outlets on other hand the star buck-
TATA alliance is planning to half century in a little more than a year. There were
already competitors like Barista, java green, and Macho. Parts from Starbuck there
are various international players like Costa coffee, Illcafe etc. which are trying to
enter the Indian market. These market situations have a deep impact on the
operations of café coffee day to gain back its lost customers .One central problem
that has retarded the growth of the coffee business is the quality of staff available
in the sector. Like the rest of the retail sector getting good staff training them in
coffee and service aspects and retaining them is a costly undertaking. Analyst
estimates that there is a turnover of around 40 per cent for the industry among the
highest.

14
2.4 OBJECTIVES

The prime objectives drawn out of the research for café coffee day.

To sustain the present customer: In the marketing context it is said that the
relations with the customer should be such that don’t have to go to the competitors.
So the needful...

Largest Chikkamagaluru based business which grows coffee in its own estates of
12, 000 acres. It is the producer of arabica beans in Asia exporting to various
countries including USA, Europe and Japan.

Original logo

Café Coffee Day was started as a retail restaurant in 1996. The first CCD outlet
was set up on July 11, 1996, at Brigade Road, Bengaluru, Karnataka. It rapidly
expanded across various cities in India adding more stores with more than
1000 cafés open across the nation by 2011.

15
In 2010, it was announced that a consortium led by Kohlberg Kravis
Roberts would invest ₹10 billion(US$160 million) in Coffee Day Resorts, owned
by the company. The same year, the logo was changed to the current logo, which
the company stated was to showcase the chain as a place to talk. This was done
with major changes in the layout of the stores, including the addition of
lounges and a total revamp of the interiors.

Cafe latte At CCD

The company is known for being vertical integrated to cut costs: from owning the
plantations, growing the coffee, making the coffee machines to making the
furniture for the outlets.

ile café coffee day

16
2.5 OUTLETS
As of March 2015, there are 1530 outlets across 28 states of India. [10] Cafe Coffee
Day has also expanded outside India with its outlets in Austria (Vienna), Czech
Republic, Malaysia, Egypt and Nepal.

2.6 SUBSIDIARIES
In June 2010, CCD acquired Café Emporio, a café chain from the Czech Republic.
Cafe Emporio has 11 cafés in Czech Republic. While 7 of them are in Prague, 1 is
in Brno and Olomouc and 2 are at Freeport-Hate.

Cafe Coffee Day's divisions include:

 Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail
outlets
 Coffee Day Square, a high level coffee bar in Bangalore, Chennai, Mumbai,
New Delhi
 Coffee Day Xpress, which runs 900 plus Coffee Day kiosks
 Coffee Day Beverages, which runs over 34,000 vending machines
 Coffee Day Exports, its exporting wing
 Coffee Day Perfect, its fast-moving consumer goods packaged coffee division
 Coffee Day B2C Plant, Coffee vending machine manufacturing division

17
2.7 FOUNDATION

At Cafe Coffee Day we believe in giving back. That's why we run the
Shankarakudige Veerappa Gangaiah Hegde Education Trust. Setup in 2002 as a
non-profit trust with the mission of "Education for All ", it runs two institutions,
Amber Valley Residential School and SVGH Vocational Training College.The
SVGH Vocational Training College was established in April 2005 by the Trust
with an aim to bridge the gap between the urban and rural youth by training the
economically underprivileged and making sure they land placements. Over 1300
students celebrate this opportunity to develop their personal and professional skills
in this rapidly changing environment. Courses offered include Certificate Course in
Hospitality Management & Micro Finance. The Trust bears all expenses of the
course. Innovative teaching methods are adopted by a dedicated and committed
faculty. In-house practical training, industry visits, guest lectures are all part of the
system with a focus on extra-curricular activities. The Trust has a goal of
Educating and Empowering 5000 Youth in 10 years time.

18
2.8 LIST OF COFFEE HOUSE CHAINS

This is a list of notable coffeehouse chains around the world. This list
excludes the many companies which operate coffeeshops
within retail establishments, notably bookstores and department stores,
or restaurants or convenience stores which also serve coffee.

The original Aroma Espresso Bar in Jerusalem (2006)

 Aida - Vienna, Austria

 AMT Coffee - UK, mostly at railway stations
 Angel-in-us - China, Indonesia, South Korea and Vietnam
 Arcaffe - Israel0.
 Aroma Café - UK, Argentina, Brazil
 Aroma Espresso Bar - Israel, Canada, U.S., Romania, Ukraine, Kazakhstan
 Au Bon Pain - headquartered in Boston, Massachusetts, U.S.

B
19
 Baker's Dozen Donuts - Canada
 Barista Lavazza - India, Bangladesh
 Baristas - U.S., headquartered in Washington State
 Bewley's - based in Dublin, operates Rebecca's Cafe and Java City in the U.S.
 Biggby Coffee - based in East Lansing, Michigan, U.S.
 Blenz Coffee - Canada
 Blue Bottle Coffee Company - U.S.
 Blue State Coffee - Northeastern U.S.
 Boston Tea Party - England
 Bourbon Coffee - Rwanda
 Bridgehead Coffee - fair trade chain in Ottawa, Ontario, Canada

 Cadena Cafes Limited - former chain of coffee shops in South West England;
established in 1895 under the name Lloyd's Oriental Cafe which became
Lloyd's Cadena Cafes Ltd., [1] becoming Cadena Cafes Ltd in 1907 [2]
 Cafe Barbera
 Café Café - Israel
 Café Coffee Day - India, Malaysia
 Café du Monde - U.S.
 Café Hillel - Israel
 Café Picnic - Finland
 CafeBene - Cambodia, China,
Indonesia, Malaysia, Mongolia, Philippines, Saudi Arabia, South Korea,
Taiwan, U.S., and Vietnam

20
 Caffè Cova - Milan, Italy; Hong Kong, Japan; Celebrity Cruises
 Caffe Luxxe - three locations in the West Los Angeles area, California, U.S.
 Caffè Nero - UK
 Caffè Pascucci - Founded in Italy, has locations in over 25 countries
 Caffè Ritazza - 40 countries, mostly at railway stations
 Caffe Trieste - six locations in the San Francisco Bay Area, California, U.S.
 Caffé Vita Coffee Roasting Company - Seattle, Washington, U.S.
 Caribou Coffee - global, headquartered in Brooklyn Center, Minnesota, U.S.
 Cibo Espresso - Australia
 Cinnzeo - based in Calgary, Alberta, Canada; has locations in 20 countries
 The Coffee Bean & Tea Leaf - U.S., India, Malaysia, Philippines, South Korea,
Singapore, Israel
 Coffee Beanery - based in Flushing, Michigan, U.S.
 The Coffee Club - Australia, Maldives, Malaysia, New Zealand, Thailand, New
Caledonia, China, Egypt
 Coffee Republic - UK
 Coffee Time - Canada
 Coffee World - founded in Bangkok, Thailand; has locations in nine countries
 Coffee#1 - Wales, England
 coffeeheaven - founded in Poland, operates in several countries in Eastern
Europe
 Coffeeshop Company - based in Austria, has locations in 13 countries
 Coffine Gurunaru - South Korea
 Cofix - Israel
 Colectivo Coffee Roasters - Milwaukee, Wisconsin, 12 locations around the
city
21
 Costa Coffee - UK, Mainland Europe, Asia, Middle East, Malaysia
 Country Style - headquartered in Richmond Hill, Ontario, Canada
 Crazy Mocha Coffee Company - based in Pittsburgh, Pennsylvania
 Cuppy's Coffee - based in Greenville, South Carolina, U.S.

 Diedrich Coffee - based in Irvine, California, U.S.; also owns Coffee People,
Coffee Plantation (Arizona) and U.S. Gloria Jean's locations
 Dome - based in Perth, Australia
 Double Coffee - based in Latvia; 40 locations in the Baltic
states, Ukraine and Belarus
 Doutor Coffee - Japan and Taiwan
 Douwe Egberts - owns Koffie Cafés in the Netherlands
 Dunkin' Donuts - global, based in Quincy, Massachusetts, U.S.
 Dunn Bros - founded in St. Paul, Minnesota, U.S.; 85 locations throughout the
Midwest
 Dutch Bros. Coffee - based in Oregon, U.S.; has 154 drive-through locations in
the West

 Ediya Coffee - South Korea

 Espresso House - Scandinavia, based in Sweden.
 Espresso Vivace - Seattle, Washington, U.S.
 Esquires - Canada, Britain and Ireland, New Zealand, Australia, and Middle
East

22
F

 Far Coast - The Coca-Cola Company's entry, with four concept stores that have
now closed
 Figaro Coffee Company - Philippines-based chain of coffee shops and
restaurants, with outlets in Fiji, Papua New Guinea, Saudi Arabia, and Vietnam
 Flocafé - based in Greece; over 70 locations in Greece, Cyprus, Bulgaria,
Egypt, United Kingdom, Hungary and on several cruise ships

 Gimme! Coffee - U.S.

 Gloria Jean's Coffees - Australia, Azerbaijan, Cyprus, India, Bangladesh,
Malaysia, USA, Ukraine, Pakistan, Philippines, Vietnam, Cambodia, Thailand
and Taiwan
 Grounds for Coffee - Utah, U.S.

 Havanna - Argentina
 Heart Coffee Roasters, Oregon
 Highlands Coffee - Vietnam
 Hollys Coffee - Malaysia, South Korea
 Hudsons Coffee - Australia
 The Human Bean - founded in Oregon, U.S.

23
I

 Indian Coffee House - India; over 400 locations

 Insomnia Coffee Company - Republic of Ireland
 Intelligentsia Coffee & Tea - Chicago, Illinois, U.S.
 It's a Grind Coffee House - U.S.

 J.CO Donuts - Indonesia, Malaysia, Singapore, and the Philippines

 Jittery Joe's - U.S.
 Joe Muggs - owned by Books-A-Million; U.S.
 Juan Valdez Café - headquarters in Colombia; coffee shops in South
America, North America, Middle East, East Asia and the Caribbean

 Kaffebrenneriet - Norway
 Kardomah Cafés - chain of coffee shops in England, Wales, and a few in Paris,
popular from the early 1900s until the 1960s, but now almost defunct
 Krispy Kreme - global, based in Winston-Salem, North Carolina

24
L

 Lavazza - Europe and U.S.

 Lettieri - Canada
 Lollicup Coffee & Tea - U.S. and China

 McCafé (owned by McDonald's Corporation)

 Michel's Patisserie - Australia
 Mikel Coffee Company - Greece, Cyprus and United Arab Emirates
 mmmuffins - Canada
 Mud Coffee
 Mugg & Bean - South Africa
 Muzz Buzz – Australia

 Nairobi Java House – Kenya

 O' Coffee Club - Singapore, Malaysia, and Indonesia

 OldTown White Coffee - Malaysia and Singapore

25
P

 Pacific Coffee Company - based in Hong Kong, with branches in

Singapore, Cyprus, China, and Malaysia
 Paris Baguette - based in Seoul, South Korea, with branches in U.S., Singapore,
China, and Vietnam
 Pasqua Coffee, U.S., acquired by Starbucks in 1999
 Peaberry Coffee - U.S.
 Peet's Coffee & Tea - U.S.
 Philz Coffee - U.S.
 PJ's Coffee - based in New Orleans, Louisiana, U.S.
 Port City Java - U.S.
 Pret a Manger - UK, U.S., Hong Kong and France
 Puccino's - UK, Ireland

 Raees Coffee
 Revelator Coffee - U.S.
 Ritual Coffee Roasters - San Francisco, California, US
 Robin's Donuts – Canada

26
S

 Seattle's Best Coffee - U.S.

 Second Cup - Canada
 Secret Recipe - Malaysia, Singapore, Indonesia, Thailand, China, Brunei,
Cambodia and Myanmar
 Segafredo
 SPoT Coffee - headquartered in Toronto, locations in Canada and U.S.
 SPR Coffee - China, Taiwan
 Starbucks - global, headquartered in Seattle, Washington, U.S.
 Stumptown Coffee Roasters - U.S., headquartered in Portland, Oregon

 Tchibo - Germany
 Tim Hortons (also owns Bess Eaton) - Canada, U.S., U.A.E, Saudi Arabia
 Timothy's World Coffee - Canada
 Tom N Toms - South Korea
 Torrefazione Italia - U.S.
 True Coffee - founded in Bangkok, Thailand; has locations in
Thailand, Cambodia and People's Republic of China
 Trung Nguyên - Vietnam, Singapore
 Tully's Coffee - U.S., headquartered in Seattle, Washington
 A Twosome Place - South Korea

27
U

 UCC Ueshima Coffee Co. – Japan

 Van Houtte - Canada

 Vida e Caffè - South Africa
 Výtopna - Czech Republic

 Wayne's Coffee - originated in Sweden, locations throughout Scandinavia and

Saudi Arabia
 Williams Fresh Cafe - Canada
 Woods Coffee - Washington, U.S.

 Ya Kun Kaya Toast - chain of kopitiams based in Singapore

 Zarraffas Coffee - Australia

 Ziferblat - Russia, Ukraine and London, first "pay-as-you-go cafe"

28
2.9 MISSION AND VISION

Welcome to Café Coffee Day, a coffee shop where the young at heart unwind.
We're a division of Coffee Day Global Limited. This coffee goes all over the world
to clients across, Europe and Japan, making us one of the top coffee exporters in
the country.

29
MISSION

Our mission is a simple one. To be the best Cafe chain by offering a world class
coffee experience at affordable prices.

2.10 RANGE OF OUTLETS

Café coffee day – a lot can happen over coffee

Café Coffee Day, a coffee shop filled with fun, young energy and lots of
entertainment! Popularly known as CCD, we strive to provide the best experience
to our guests. The first one opened in 1996 on Brigade Road in Bangalore and
continues to be one of the most happening places in the city. The youth and the
young at heart immediately took to the place. A space that they call their own for a
while, sit down, talk and listen to conversations, hold short meetings and mainly
have a whole lot of fun over steaming cups of endless coffee. It's been an exciting
journey since then, becoming the largest organised retail cafe chain in the country.
If your travels take you to Austria, Czech Republic or Malaysia, do stop by our
outlets there to get a taste from back home.

THE LOUNGE

Offering a wider range of Food & Beverages including complete meals too. We
provide an expressive, explorative space (owing to the alternate coffee drinking
experiences and world cuisine options) conducive to network and of course to just
sip and unwind. The Lounge includes 42 outlets spread across seven cities.

30
THE SQUARE

A premium range of cafes brewing Single Origin Coffees, sourced from around the
world; with the perfect variety of food to complement it. The Square showcases a
boutique of brewing systems and coffee beans from around the world for the
absolute connoisseur and the well-traveled. We are currently at 7 outlets in four
cities.

VALUE EXPRESS

If you're on the lookout for a quick coffee stop or perhaps something to munch on,
then CCD Value Express is the place to be! Whether on the highway, at your
workplace, theaters, or even within your favorite malls, CCD Value Express
delivers the promise of a great quality, safety and value for money. So next time
you need a quick bite, look out for nearest CCD Value Express, and have a nice
cup of coffee on-the-go!

31
2.11 OTHER BUSINESS

COFFEE DAY EXPORTS

Coffee Day Exports is truly involved in growing, trading, retailing and exporting
world-class coffee. It has a heritage of over 130 years. Coffee Day Exports is one
of the largest exporters of green coffee in India, since 1999. We also export to the
Middle East, Europe and Japan. It has invested in research and development and
applied the learning successfully to improve the promotion of various coffee
blends and augment its exports. We have received a UTZ Certification for
responsibly growing coffee. Coffee Day Exports strongly believes that their
responsibility begins with the origins of the coffee bean - right from ensuring
ethical growing practices to packaging and retailing the product for their
customers. Coffee Day Exports is well versed with the experience and
technological proficiencies to provide its customers with a wide assortment of
well-positioned products.With regular feedbacks from customers and advisors, and
backed by research, Coffee Day Exports continues to enhance their products.
Visit www.coffeedayexport.com for more details.

32
COFFEE DAY HOTELS AND RESORTS

2008 was a landmark year for Coffee Day Global Limited. At this point of time,
we decided to invite our friends and extended family to the coffee estates
themselves to experience, first-hand, the serene slopes on which their coffee grew.
Coffee Day Hotels & Resorts was formed as a subsidiary of Coffee Day Global
Limited, the Chikmagalur resort of The Serai was declared open.The philosophy
was single-minded - to open exclusive retreats in the quietest corners of the
country and to offer an experience drenched in luxury and understated elegance. It
is a place where one would come to be pampered like nowhere else. The Serai,
Chikmagalur, as the first such resort did this job brilliantly, nestled as it was in the
greens of the lush coffee plantations around.The concept was so appreciated that
we took these resorts to other reclusive niches – to Bandipur and Kabini.

33
2.12 MENU OF CAFÉ COFFEE DAY

34
35
36
 CHAPTER 3

RESEARCH METHODOLOGY DATA

3.1 OBJECTIVES OF THE STUDY PRIME OBJECTIVES

 To study marketing in detail.

 To know importance of marketing.
 To understand the concept of marketing clearly by means of CAFÉ COFFEE
DAY
 To find out the marketing strategy used by the CAFÉ COFFEE DAY.

OTHER OBJECTIVES

 To find out how and when was CCD started.

 To find out the major competitor of CCD’S Products.

3.2 SECONDARY DATA

Secondary data is the data borrowed from secondary sources by the researcher.
Secondary data can be internal or external i.e., internal records of the company or
information available from library and other statistical organization.

3.3 COLLECTION METHOD

Data collection is an elaborate process in which the researches makes a planned

research for all relevant data. Data is the foundation of all market research.

37
COLLECTION OF SECONDARY DATA

The researcher was assigned to do a comparative study on CAFE COFFEE DAY.

In order to accomplish the job, the researcher adopted the method of collecting
secondary data through CCD’s official site, magazines, newspaper, internet.

3.4 LIMITATIONS

 Less time to do a complete study of CCD.

 Less time to collect Primary data.
 Focused on only one aspect of the company.

38
 CHAPTER 4

MARKETING STRATEGIES OF CAFÉ COFFEE DAY

4.1 MARKETING MIX OF CAFÉ COFFEE DAY

Leading coffee chain across the world, Cafe coffee day has several products which
appeal to the Indian audience and it has a price which is very much affordable for
the upper middle class of India. The promotions are amazing and it has numerous
retail outlets which are growing in number across India. This discusses
the marketing mix of Cafe coffee day.

39
PRODUCT

Café Coffee Day product mix constitutes a wide range of products that appeal
primarily to Indian coffee and snack lovers. Products have a decided Indian taste
to it – be it food or coffee. Most of the eatables have been adopted to meet the
Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc. Thus
they have been trying to capture the Indian taste along with classic coffee.The best
selling item in summer is frappe, which is coffee and ice cream blended together.
The young people favor it. In winter it is cappuccino. Their merchandising
includes funky stuff like t-shirts, caps etc.

40
PRICE

Considering that Café Coffee Day knows its major customer lies in the bracket of
15- 29,it has tried to derive a policy whereby it can satisfy all its customers. The
price for a cup of coffee ranges from Rs.45 to Rs 80. From the time it first started
its operations, therehas been only minor changes in the pricing policy of Café
Coffee Day. The changes havebeen more due to the government taxes than any
thing else.

PSYCHOLOGY PRICING

Pricing the product as Rs 69, 79 , 59 etc. Rather than in the multiples of ten to give
a feel that the product is less priced .

LOCATION PRICING

On the basis of outlets, prices have been positioned

 Cafe

 Lounge

41
  Square

COMBO PRICING

Clubbing up two or more products on special occasions.

PREMIUM PRICING

Adding values like ice-cream, chocolate sauce, and positioning as a premium

coffees.

VALUE BASED PRICING

Providing different variants in terms of prices by altering the quantity to give a

sense of affordability.

PLACE

The strategy CCD has adapted is to place a cafe in every possible location where
some business can be generated.This is a prime factor in determining the success
of a retail chain. Café Coffee Day looks to cater to their target market with
strategically located outlets.

42
Their outlets are generally located in High Street/ Family Entertainment Centers,
gas stations, near Collegesetc .

 STRATEGICALLY LOCATED OUTLETS

 KIOSKS IN OFFICES

 COFFEE MACHINES IN COLLEGE CANTEENS

COFFEE DAY STORE

Coffee parlors where people can enjoy the coffee have eatables and hangout with
friends.

CAFÉ COFFEE DAY LOUNGE

Premium café from café coffee daytarget selected group .

CAFÉ COFFEE DAY SQUARE

A unique café where variety of single origin coffee brews from coffee growing
countries are available.

43
PROMOTION

CCD is involved in all the areas of serious consumer passion like:

Television:

Café Coffee Day held a contest around a very popular programme on Zee English
calledFriends. All the six lead characters are shown often visiting a coffee
shop.They have tied up with Channel [V]’s Get Gorgeous contest.

Tie-ups:

Besides that Café Coffee Day also tie up lot of the youth brands. So they have a
contest going on with Levis,another one with Scooty, Liril, latest one
with Airtel Friends.

Association with movies:

CCD can be seen in movies like Khakhee and Mai Hoon Na.Sales Promotion:Café
Coffee Day uses special ‘Café Citizen Card’ for rewarding Café Coffee Day’s
customers. It is a loyalty program to gain new customers and retain the existing
ones.

44
Co Branding in Movie and TV serials.

Sales Promotion Activities

 Combo Deal

 Happy hours

 Privilage cards

 Redeemable coupons

Through interactive media.

PROCESS

The ordering and delivery process in CCD was earlier based on self- service. But
now in most its coffee shops the waiter comes and takes away the order and
delivers the order on table.

 People processing services.

 Minimum Response Time.
 Complaints and feedback.

45
  Assisted by the attendee or the brew master in lounge and square .
 Self service counter for café coffee day outlets in offices and few malls.
 Ordering and delivery earlier was self service and now most of the coffee
shops have waiters to take order and delivery at the table.

PHYSICAL EVIDENSE

a)Logo

Image, brand: Café Coffee Day has used bright red and green colors in its logo.
RED stands forleadership , vitality,passion for coffee. The GREEN stroke harks
back the coffee plantations that they own.Café is noticeably larger in the logo to
denote that Café Coffee Day pioneered thecafé concept in India way back in
1996.The font looks as though the letters have congealed out of a liquid.

b) Architecture and Decor:

Largely wood and granite based interior with young colours of today,like
limegreen, yellow, orange, and purple predominate.

c) Literature:

The literature provided by Café Coffee Day is indicative of its youthful image.
Themenus, posters, pamphlets are all designed to attract young and young at heart.

46
d)Ambience:

different ambience the look and feel for different outlets.

People at Café 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. Their employees are like friend to the customer but at the same time they
know about the international standards of hygiene and cleanliness and personal
grooming.

 Dressed in a particular uniform.

 Soft spoken, friendly behaviour.

 Customer Engagement Activities

Special offers on occasions like Birthday, Valentines Day, Friendship Day

Etc.

 Online contests and Happy hours.

47
4.2 DISTRIBUTION CHANNEL STRATEGY

Easy Accessibility
There is a café coffe day outlet in every major city in india.
And are easily accessible.

Rural Area Locations

Customers in smaller community also enjoy good quality coffee and snacks
at affordable costs because the café has set up outlets in the rural regions of
india.

Distributers
The coffee produced at the cafes farms, are distributed through wholesalers
and retailers to customers who wish to use the coffee at home.

48
4.3 SEGMENTATION, TARGETING, POSITIONING,

DIFFERENTIATION.

49
Segmentation

 Café coffee day has its main consumer base in the age group of 16 – 30
years.

Targeting

 Middle class and upper middle class youth.

 Students, house wives, executives ,and youngsters.
 People who value a great cup of coffee.
 CCD seeks to target not just the youth but anyone who is young at heart.

Positioning

 “Third place” away from the home and college or workplace for the young
and the youth at heart .
 Coffee bar
 Fun place
 Home and workplace .
 Medium price brand .

50
Differentiation

 2000+ outlets in 200 cities.

 Strong and stable parentage
 Right locations.
 Place a café in every possible location where some business can be
generated.
 To be present in educational institutions and corporate compuses.

51
Repositioning of café coffee day

52
 4.4 PRODUCT LIFE CYCLE OF CAFÉ COFFEE DAY

Café coffee day is in the growth stage .

53
4.5 SWOT ANALYSIS OF CAFÉ COFFEE DAY

Strengths

Products of extremely good quality and taste – The coffee menu of Cafe coffee
day is renowned and people just love its shakes as well. Besides this, Cafe
cafee day has also started some sandwiches and tid bits which are a huge hit
with people as well.

 Its a youth oriented brand, with appeal for the masses – It has a huge
potential as 40% of the people who enter a CCD are young.
 It produces/grows the coffee it serves hence reducing the cost – This is a
major point for Cafe coffee day and the backwards integration saves a lot of
cost.
 Its USP is affordability with comfort – You can sit for a whole day in cafe
coffee day and no one will ask you to leave. This comfort is a major USP of
Cafe coffee day. At the same time, the menu is affordable so people come
from time to time to have their comfort time in CCD.

54
Weaknesses

Losing its charm – The brand has lost its charm which it had in the start
mainly because it is not investing in promotions and the entry of Starbucks as
well as various local competition has affected the brand image.

 Lacks strength to maintain brand loyalty – It has become the neighborhood

coffee shop but not something that people stay loyal to.
 Poor Ambiance and decor – Many Cafe coffee day outlets have very poor
ambiance and decor. The flagship stores are maintained perfectly and are
driving the brand image. But there are also stores opened with poor interiors.
Something which the brand should take care of because it is a franchise
model.
 Many of the CCD stores are incurring loses due to wrong site selection –
This has been hurting CCD over time as many stores with the brand name of
CCD have been open at the wrong site and not on main roads. Being a retail
establishment, this affects turnover and the brand name as well.

55
Opportunities

 Introducing more products and better items in the menu – Starbucks is

being loved because it has several benefits over Cafe coffee day. One of the
benefits is a better menu of things to eat along with the coffee.
 Better interiors – Cafe coffee day needs to maintain standards in the
interiors of all outlets that it has. As you move out of the city, you will find
the interiors to be even more shabby. This reflects badly on the quality and
consistency of the brand.
 Coffee cafe industry is one of the fastest growing industry in Asia – This is
actually true and the awareness is increasing with more and
more international level players entering the market.
 More people like to visit CCD for informal meetings – Again true. Cafe
coffee day can market itself as a meeting point as well as an informal
gathering point, just like McDonaldshas birthday section in various outlets.
 CCD has gone international, and is planning to attract many new
international markets, hence gaining international recognition

56
Threats

 Competition – Cafe coffee day has a lot of competition especially with other
coffee cafes like Barista, Mochas, Starbucks, Costa coffee and others.
 Indirect competition – Other hukka palours like Sheshas , Peshawar ,
Koylas, U Turn are also gaining lot of attention and preferred by young
generation to hang around which in turn is attracting the market captivated by
CCD

57
58
4.6 COMPETITORS OF CAFÉ COFFEE DAY

DIRECT COMPETITORS

 Barista
 Café mocha
 Costa coffe
 Beyond coffee
 Gloria jeans
 Minerva coffee shop

INDIRECT COPMETETORS

 MC Donald
 Haldiram

GLOBAL COMPETITORS

 STARBUCKS

59
STARBUCKS

TATA Starbucks Private Limited, formerly known as Tata Starbucks Limited, is

a 50:50 joint venture company, owned by Tata Global Beverages and Starbucks
Corporation,[6] that owns and operates Starbucks outlets in India. The outlets are
branded Starbucks "A Tata Alliance".

In January 2011, Starbucks Corporation and Tata Coffee announced plans to begin
opening Starbucks locations in India. Despite a false start in 2007, in January 2012
Starbucks finally announced a 50:50 joint venture with Tata Global Beverages,
called Tata Starbucks Ltd., which would own and operate outlets branded
"Starbucks, A Tata Alliance". Starbucks had previously attempted to enter the
Indian market in 2007. Starbucks did not cite any reason for the withdrawal.

On 19 October 2012, Starbucks opened its first store in India, measuring 4500 sq ft
in Elphinstone Building, Horniman Circle, Mumbai. Starbucks opened its first
roasting and packaging plant to supply its Indian outlets in Coorg, Karnataka in
2013.

Starbucks expanded its presence to Delhi on 24 January 2013 by opening 2 outlets

at Terminal III of the Indira Gandhi International Airport, and later one
in Connaught Place. Tata Global Beverages announced in 2013 that they would
have 50 locations by the end of the year, with an investment of 4
billion (US$62 million). However, the company would open its 50th store in India
only on 8 July 2014.

The third city of India to get a Starbucks outlet was Pune, where the company
opened an outlet at Koregaon Park, on 8 September 2013. Starbucks opened a

60
3,000-square-foot flagship store at Koramangala, Bangalore on 22 November
2013, making it the fourth city to have an outlet. [24][25][26][27]

At the Starbucks annual shareholders meet in March 2014, then Tata Starbucks
CEO Avani Davda stated, "With 40 stores in four cities (in 17 months) and nearly
1,000 partners, India is the fastest growing market in Starbucks history." Starbucks
opened its first store in Chennai and 50th store in India on 8

July 2014.

Apart from the usual products offered internationally, Starbucks in India has some
Indian style product offerings such as Tandoori Paneer Roll, Elaichi Mewa
Croissant and Murg Tikka Panini to suit Indian customers. [29] All espressos sold in
Indian outlets are made from Indian roasted coffees supplied by Tata Coffee.
Starbucks also sells Tazo Tea and Himalayan bottled mineral water.[30] Free Wi-Fi
is available at all Starbucks stores. [31]

In January 2017, Tata Starbucks introduced Starbucks' tea brand Teavana offering
18 different varieties of tea across its outlets in India. One of the varieties, called
the India Spice Majesty Blend, was specifically developed for the Indian market
and is exclusively sold only in India. India Spice Majesty Blend is a blend of full
leaf Assam black tea infused with whole cinnamon, cardamom, cloves, pepper, star
anise and ginger.

On 15 June 2015, Tata Starbucks announced that it was suspending the use of
ingredients that had not been approved by the Food Safety and Standards Authority
of India (FSSAI). The company did not specify what the ingredients were or which
products they were used. The company also stated that it was in the process of
applying for FSSAI approval for these ingredients.

61
According to the Latte Index, a ranking of the cost of a tall hot latte at Starbucks in
44 countries, India was the fifth most expensive country to purchase the beverage
based on January 2016 prices. The index published by US-based consumer
research firm ValuePenguin found that a tall hot latte cost US$7.99 in India, far
higher than the $2.75 it costs in the cheapest country, the United States, but much
lower than the $12.32 in the most expensive country, Russia.

Tea
Starbucks entered the tea business in 1999 when it acquired the Tazo brand
for US$8,100,000. In late 2012, Starbucks paid US$620 million to
buy Teavana. As of November 2012, there is no intention of marketing Starbucks'
products in Teavana stores, though the acquisition will allow the expansion of
Teavana beyond its current main footprint in shopping malls. In January 2015,
Starbucks began to roll out Teavana teas into Starbucks stores, both in to-go
beverage and retail formats.

Coffee quality
Kevin Knox, who was in charge of doughnuts quality at Starbucks from 1987 to
1993, recalled on his blog in 2010 how George Howell, coffee veteran and founder
of the Cup of Excellence, had been appalled at the dark roasted beans that
Starbucks was selling in 1990. Talking to the New York Times in 2008, Howell
stated his opinion that the dark roast used by Starbucks does not deepen the flavor
of coffee, but instead can destroy purported nuances of flavor. The March 2007
issue of Consumer Reports compared American fast-food chain coffees and ranked
Starbucks behind McDonald's Premium Roast. The magazine called Starbucks
coffee "strong, but burnt and bitter enough to make your eyes water instead of

62
open". As reported by TIME in 2010, third wave coffee proponents generally
criticize Starbucks for over-roasting beans.

Pour over coffee options are available at most Starbucks location in the United
States.

Other products

In 2012, Starbucks introduced Starbucks Verismo, a line of coffee makers that

brew espresso and regular chocolate from coffee capsules, a type of pre-
apportioned single-use container of ground coffee and flavorings utilizing the K-
Fee pod system.[87] In a brief review of the 580 model, Consumer
Reports described the results of a comparative test of the Verismo 580 against two
competitive brands: "Because you have to conduct a rinse cycle between each cup,
the Verismo wasn't among the most convenient of single-serve machines in our
coffeemaker tests. Other machines we've tested have more flexibility in adjusting
brew strength—the Verismo has buttons for coffee, espresso, and latte with no
strength variation for any type. And since Starbucks has limited its coffee selection
to its own brand, there are only eight varieties so far plus a milk pod for the latte."

63
BARISTA LAVAZZA

Barista is an Indian chain of espresso bars that operates in South Asia and the
Middle East. Established Headquartered in New Delhi, Barista currently has
espresso bars across India, Pakistan,[4] Sri Lanka, Bangladesh, Nepal and the
Middle East.

It was established in February 2000 by the Barista Coffee Company Limited.

A 34.3% equity stake was sold to Tata Coffee in 2001.

C Sivasankaran bought the remaining 65 per cent in Barista from the Amit Judge-
controlled Turner Morrison in 2004, and his Sterling Groupalso bought out Tata
Coffee's stake later.
64
In 2007, the Sterling Group sold Barista to Lavazza.

Barista Lavazza is currently owned by Lavazza.

The coffee is supplied by the Indian roaster Fresh and Honest, headquartered
in Chennai, which is also owned by Lavazza.

As of 2009, the chain has 200 stores in India, with an estimated annual revenue of
2 billion.

In 2014, Lavazza sold the coffee shop chain to Carnation Hospitality Pvt. Ltd. for
an undisclosed sum.

Barista was the fastest brand to make it on the list of super brands and is ranked
among the top 50 phenomena that changed India.

in February 2000 under the name Barista, it was taken over by Lavazza in 2007

 LiveMedia and Barista Coffee Company have a strategic alliance, where 200
Barista Lavazza outlets across the country will have LiveMedia screens on their
premises.
 Barista Lavazza has a tie-up with Visa to allow withdrawal of cash up to ₹1000
daily in all its outlets without any charges levied on the cardholders or any
obligation to purchase. As part of this association, Barista Lavazza also offers
30% discounts on customised meal deals on all Visa debit card transactions. [14]
 ABN AMRO and Barista Coffee Company have jointly launched a credit card,
"ABN AMRO Barista Credit Card", by which customers can avail discounts at
its outlets.
 Barista Lavazza has formed an association with Mattel Toys (India) Private
Limited for the launch of the first edition of Barista Lavazza Cafe Scrabble
2010

65
66
COSTA COFFEE

Costa Coffee is a British multinational coffeehouse company headquartered

in Dunstable, Bedfordshire, and a wholly owned subsidiary of Whitbread. It is the
second largest coffeehouse chain in the world behind Starbucks and the largest in
the UK.

Costa Coffee was founded in London in 1971 by the Costa family as a wholesale
operation supplying roasted coffee to caterers and specialist Italian coffee shops.
Acquired by Whitbread in 1995, it has since grown to 3,401 stores across 31
countries. The business has 2,121 UK restaurants, over 6,000 Costa Express
vending facilities and a further 1,280 outlets overseas (including 395 in China)

Italian immigrant brothers Bruno and Sergio Costa founded a coffee roastery in
Lambeth, London, in 1971, supplying local caterers. The family had moved to
England in the 1960s. Costa branched out to selling coffee in 1978, when its first
store opened in Vauxhall Bridge Road, London.

In 1985, Sergio bought out Bruno's share of the company. Bruno went on to found
a tableware company.By 1995, the chain had 41 stores in UK.In 1995, the business
was acquired by Whitbread, UK's largest hotel and coffee shop operator, becoming
a wholly owned subsidiary. In 2009, Costa opened its 1,000th store in Cardiff. In
December 2009, Costa Coffee agreed to acquire Coffee Heaven for £36 million,
adding 79 stores in central and eastern Europe

Costa Coffee operates 2,121 outlets in the United Kingdom as of May 2016.
Internationally, it operates 1,280 stores throughout the world in 31 countries. The

67
first Costa store outside the UK opened in Dubai in 1999, and was the first coffee
shop worldwide in September 2017 to start delivering coffee via drones to
customers, sunbathing on Dubai beaches.

As well as high street locations, Costa Coffee outlets can be found in airports and
in Waterstone's bookstores, WHSmith, Homebasebranches,
larger Next stores, Marriott Hotels, Odeon Cinemas, some Premier
Inn hotels, Waitrose, Debenhams and Tesco stores, Pizza
Hutbranches, Beefeater pubs, Moto and RoadChef motorway services and in some
hospitals and the Newcastle and Manchester Primarkbranches. Smaller sub-units
are also set up in railway stations and airports throughout the UK. Many of Costa
Coffee's branches located in airports, cinemas and hospitals are either individual or
corporate franchises. Costa Coffee also has small outlets positioned on out-of-town
business parks, often among other food retailers, and on-site at various businesses.

Costa Express
Following Whitbread's £59.5m acquisition of Coffee Nation, a chain of coffee
machines, the machines were re-branded as Costa Express.The company plans to
expand to target hospitals, universities and transport interchanges. These coffee
bars will use the same coffee beans as used in Costa stores and will use fresh milk.

Coffee production

68
Coffee served in a Massimo cup.

Costa Coffee moved its own roastery from Lambeth to Basildon, Essex, in May
2017 with an investment of 38 millions pounds, increasing the roasting capacity
from 11,000 to 45,000 tons of coffee beans per year. The blend served in retail
stores is their own "Mocha Italia", it contains a blend of arabica and robusta.

Costa Coffee employs Gennaro Pelliccia as a coffee taster, who had his tongue
insured for £10m with Lloyd's of London in 2009.

69
 CHAPTER 5

FINDINGS

a. Café coffe day comes under food and beveragers industry.

b. CCD is the largest coffee retailer in India. It started operation since
1996 by V.G Sinddharth. CCD pioneered the café concept in India by
year 2000 the company had only 14 outlets in 6 cities.
c. It was café coffee day that made coffee drinking popular among India
youth by offering a brand experience environment and other value
addition. There is much different type of formats for its cafés like
High street café, garden café, mall café.
d. CCD opened a combination of standard outlets located at malls,
airports, metro station, and other various commercial complexes.
e. CCD’S MISSION – “ To be the best chain by offering a world class
coffee experience at affordable prices.”
f. CCD’S VISION –“ To be the only office for dialogue over a cup of
coffee.”
g. Café Coffee Day product mix constitutes a wide range of products
that appeal primarily to Indian coffee and snack lovers. Products have
a decided Indian taste to it – be it food or coffee. Most of the eatables
have been adopted to meet the Indian taste buds like samosa, biryani,
masala sandwich, tikka sandwich etc.
h. Considering that Café Coffee Day knows its major customer lies in
the bracket of 15- 29,it has tried to derive a policy whereby it can
satisfy all its customers. The price for a cup of coffee ranges from
Rs.45 to Rs 80.

70
i. CCD uses psychology pricing, location pricing, combo pricing,
premium pricing, value based pricing techniques.
j. CCD has strategically located outlets ,kiosks in offices, coffee
machines in college canteens.
k. CCD does promotion through television, tie-ups , combo deal, happy
hour, privilege cards ,redeemable coupons etc.
l. CCD uses distribution strategies like easy accessibility , rural area
locations , distributers.
m. CCD has its main consumer base in thed age group of 16 to 30 yearts .
n. CCD targets middle class and upper middle class youth.
o. CCD is in the growth stage.
p. Competitors of ccd are Barista, Starbucks ,Costa coffee, Café mocha
etc.

71
 CONCLUSION

1. CCD is the fastest growing café in the country.

2. The major competitor is STARBUCKS.
3. The CCD planning to go International.
4. The other major things reagarding service marketing is that
customers give top priority to the quality of the services , products
and ambience.
5. It is providing tough competition to its competitors by satisfying its
customers with great café experience.
6. “ A lot can happen over coffee” message has touched the hearts of
youngsters who are the largest consumers of Café coffee day.

72
 CHAPTER 6
RECOMMENDATIONS

1. The café must always serve and maintain good q uality of foods and
beverages , and also improve their products to suit the taste of Indian
customers .
2. It must offer pocket friendly items .
3. Excellent services are of vital Importance to survive in todays
competiting world.
4. It must provide bigger space.
5. More outlets and franchises.
6. Keeping a good ambience .
7. To improve the interiors and décor.
8. Must provide Wi-Fi services as in todays contemporary world
consumers want to work and relax at the same time.
9. Must give special discountgs and offers tyo loyal customers with
attractive offers for its prospect buyers and by advertising effectively.
10. It should enhance feedback form system in order to know about the
customers satisfaction level .

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 REFERENCE

1.https://www.google.co.in/search?q=cafe+coffee+day+wikiped&oq=ca
fe+coffee+day+wikiped&aqs=chrome.

2.https://www.google.co.in/search?q=cafe+coffe+day+competitors&oq

3.https://www.google.co.in/search?ei=OZP1WeaZD4rkvASs8IfQAw&q
=cafe+coffe+day+marketing+mix&oq=cafe+coffe+day+marketing

BOOKS

1.Marketing management : T.N Chabra.

2.Kotler and keler (2015) “ Marketing Management “

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