Café Coffee Day

Copyright © 2013 Tata Consultancy Services Limited

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Problem Statement:

• How should Cafe Coffee Day build on its

Associations to enable it to differentiate
itself in the highly dynamic indian coffee
market that is affected by competative
brands and changing lifestyle of consumer.

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History

Café Coffee Day, A division of Amalgamated Bean Coffee Trading Company Ltd.
having its headquarters in Chikkamagaluru, Karnataka.

It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the
largest cafe retail chain in India – with over 1000 Café’s in 141 cities.

Café coffee day is a 750 crores ISO 9002 certified company has over 5000 acres of
coffee states which is second largest in Asia registered as a social service provider to
people.

It has even tied up with World Space and Micro sense to enable its cafes
with satellite radio and Wi-Fi, respectively. Its first Wi-Fi cafe was opened on Lavelle
Road, Bangalore.

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• Essentially a youth oriented brand with majority of its customers falling in the 15-
29
• year age bracket. Each café, depending upon its size attracts between 400 and
800
• customers daily.
•

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Personal Effectiveness

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Art of Assertion

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 Virtual
connection

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• Its deeper footprint on digital platforms such as Twitter, Facebook
and Instagram further adds to customer engagement.
•
• To further boost experience, CCD flagged Café Concerts in
February this year with a focus on live gigs in Mumbai, Delhi,
Pune and Bengaluru.
• Café Concerts are also a platform for young and upcoming talent
to showcase their skills in front of a live audience.
• CCD plans to take Café Concerts to more metros and mini-
metros in the coming few months.

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 Industry Trends

 Potential for cafés opening up

 Changing lifestyles, growing disposable income,
 Get-together becoming part of a lifestyle, turning
into statement
 Growing urbanization
 Industry growing with 25-30% annually

 Competition is rising
 Barista Lavazza, Starbucks, Costa
Coffee

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 Presentation – Marketing Mix

 Little competition at first meant not a

highly differentiated marketing mix

 Current brand strategy situation

 Marketing Mix
 Place is the major advantage over
competition
 Edge on Pricing aspect due to ownership of
estates
 Product is similar to competitors
 Promotion was not used the first decade
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 Presentation – The Consumer

Ideal demographics for café outlets & retail

coffee chains

 Typical characteristics:
 Age group of 15 – 25 in the habit of
eating out
 Average spending at coffee retail shops of
200 INR
Busy schedule supports coffee
integration into the lifestyle
 Culture of get-together and hanging out

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 Brand Associations

 Implications for Café Coffee Day

 Price is perceived better for Barista Lavazza,
despite CCD competitive pricing
 Possibly due to lack of promotional effort
 Differences in Place are not as high as expected
 Competition gaining up, point of importance
because it is a critical association
 Notable differences between loyal and non-loyal
customers
 Also lack of promotion could be the cause for this

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 Solution – Re-positioning

 Important to identify themselves and the

competition in order to re-position

 Brand values
 Affordable coffee
 Quality experience
 Relaxing atmosphere

 Café Coffee Day has some critical

associations, these need to be used to
differentiate itself more from the competitors

 Creating a Brand Mantra

 ‘Social Urban Relaxation’
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 Solution – Re-positioning

 Identifying target market

 Students & young, urban professionals
 Tech-savvy population, therefore using social media campaigns
is a good way to promote the brand

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 Solution – PODs & POPs

POD POP
 Place / Location  [Category] Product
 1350 locations Offering

 Price / Value for Money  [Competitive]

Promotion
 10500 acres of
own estates  [Correlational] Price vs.
Premium Cafes
 Promotion
 Strong web
presence

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 Solution – Recommendations

 Invest in TV Advertising

 Invest in Social Media

and Viral Marketing  Journey of the Coffee
Bean
 New flavors and  From soil to cup
assortment in product  “Beanie” the
line coffee bean

 Coffee Day Celebration

 Altering Furniture

 Loyalty Program

 VIP Tables

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 POD-Point Of Difference.

The principal factors affecting competition in the coffee retail sector include pricing,
product/service quality, brand perception, taste and product variety.

To differentiate itself from competition, CCD has built its retail strategy on 3As:

‘Affordability’ to cater to the value conscious youth segment;

‘Accessibility’ to ensure cafés are at an arm’s reach for high-footfalls,

‘Acceptability’ to portray it as a non-intrusive, non-judgmental place where consumers

can hang out for long hours — a third place after home and office.

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 POD-Point Of Difference.

VISION

“To be the best café chain in the country by offering world class coffee experience at
affordable prices”.

MISSION

• To be ranked no. 1 among the service sector

• To provide the best quality services to customers at affordable prices.
• CCD is aiming to create its own niche merchandising like Indian coffee powder,
cookies, coffee mugs and curry paste.

PHILOSOPHY

Its philosophy is to provide world class trendy lifestyle products and experience to its
customers and in order to execute it, it has opened some new outlets with the facility of
music lounges, book cafes etc.

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The most modern technology available is used to
maintain consistency and roast the coffee beans to the demanding specifications of the
discerning coffee consumers.

Café Coffee Day product mix constitutes a wide range of products like samosa, biryani,
masala sandwich, tikka sandwich etc.
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.

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Serving Size:
The serving size of a product is a measure, not only of quantity, but also of value for
money.
PRODUCT SERVING SIZE
Hot Coffee 210 ml
Cold Coffee 350 ml
Smoothies 350 ml
Granitas 350 ml

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,
there has been only minor changes in the pricing policy of Café Coffee Day. The changes
have been more due to the government taxes

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

PROMOTION:
Café Coffee Day 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 called 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.

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

PROMOTION:
Café Coffee Day 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 called 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.

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Identifying the consumer target is important because different consumers may have
different brand knowledge
structure and thus different perceptions and preferences for the brand

the target market for ccd is

its target customer segment is served better by offering delivery services and
promoting the use of the app.
However, if these actions are knee-jerk reactions to competition, then they might be
harmful.
“Delivery services raise questions about how CCD sees itself.

The use of an app can help expedite the purchase process and, thus, add value to
customers in terms of time saved.
But this is valuable to customers in a hurry and not much to those who come to
relax,”.

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Thankyou