Retail Management – A Presentation on Café Coffee Day

ROLL NO: 21347NAME : CHAHAT RAJ KAPOORCLASS: TYBBA

Brief History of CCD

Type of Company : Private Industry : Food & BeveragesFounded : The first CCD outlet was set up

on July 11, 1996, at Brigade Road, Bangalore , Karnataka.

Founder : V. G. Siddhartha (Chairman)Headquarters : Bangalore,IndiaNumber of locations : 2000+ as of July

2015Area served : India, Austria, Czech Republic, Dubai, Malaysia & Cairo, Egypt.

Brief History of CCD

Products : Coffee, Tea, Pastries, Frappucino, Smoothies, Other beverages & snacks

Revenue :₹1,150 Crore (as of 2014)

Owner: Amalgamated Bean Coffee Trading Company (ABCTCL) now known as Coffee Day Global Ltd.

Number of employees : 50,000+

Website: www.cafecoffeeday.com

KOREGAON BRANCH

Started : A year ago

Timings : 9 am to 11 pm

Type : Gourmet Restaurant

Location : Convenient for commercial areas, offices & colleges

Branch Manager : Mr. Shabir

Key Target Audience

Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage.

The group comprises of mainly college going students and young working professionals

AGE

66%

7%

27%

Professiona

ls Students

others

SWOT Analysis

Largest retail chain of cafes ISO 9002 certified company Quality and taste Youth oriented brand Reduction in cost (Own Production) USP of brand - Highly affordable brand

OPPORTUNITY Fastest growing

industries in Asia. Preferred for informal

meetings. Gone international

STRENGTHS

WEAKNESS

Weak brand imageandlacks strength to maintain brand loyalty

Poor ambience and decor. (Prime

andSpace - advertisingpromotions)

Wrong site selection – LossesSWOT

THREAT Competition with established and

International other coffee cafes like Barista, Starbucks, Costa Coffee, Coffee Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.

Hukka Parlours.

Largest retail chain of cafes ISO 9002 certified company Quality and taste Youth oriented brand Reduction in cost (Own

Production) USP of brand - Highly affordable brand

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.

2000+ outlets in 200 cities Strong and Stable Parentage Right Locations Place a cafe in every possible

location where some business can be generated.

To be present in educational institutions and corporate campuses

―T hird Place" away from the home and college or workplace for the young and the young at heart.

Coffee Bar Fun Place Home and Workplace Medium Price Brand

Café Coffee Day has its main

consumer base in the age group

of 16-30 years.

TARGETING

POSITIONING

DIFFERENTIATION

SEGMENTATION

Marketing Stratergy

CompetitorsDirect Competitors: Barista Cafe Mocha Costa Coffee Beyond Coffee Gloria Jeans Minerva Coffee

Shop

Indirect Competitors: McDonald Haldirams

Global Competitors: Star Bucks

Marketing Mix

PRICING STRATEGY 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 less priced

LOCATION PRICING: On the basis of outlets, prices have been positioned

• Café• Lounge• Square

COMBO PRICING– Clubbing up two or more products on special occasions

PREMIUMS PRICING– Adding things like 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

Strategically located outlets Kiosks(Garden Area) in offices Coffee machines in college canteens

Types of Stores

Café Coffee Day

The Lounge The Square

PLACE

Café Coffee Day StoreCoffee parlors where people can enjoy the coffee have eatables and hangout with friends

Café Coffee Day Lounge Premium café from Café coffee day target selected group

Café Coffee Day SquareA unique Café where variety of single origin coffee brews from coffee- growing countries are available

PRODUCT PORTFOLIO

Food and Beverage Non Food Items B2B

Food Beverage

Deserts CoffeeCoffee Powder

Snacks Tea

Coffee Machine

Cakes Chocolate ShakesCups & Mugs

Sundaes Frappe

Bulk/ Corporate Orders

CateringServices

Coffee Vending Machines

AdvertisingSpace

Heavy Foods (in Lounges)

Fruit Shakes & Lemonades

Chocolate andcookies

Apparel & Accessories

Gift Cards & Vouchers

Product Mix Width

Product Line Length

PHYSICAL EVIDENCE

Ambience– Different ambience the look

and feel for different outlets

Shop Colour– Violet for Café coffee day shops– Sea green for Lounge– Brown for Square

Started TVC and Print campaign at the end of 2012 Co Branding in Movie and TV serials Sales Promotion Activities

– Combo Deal– Happy Hours– Privilege cards– Redeemable coupons

Through Interactive Media Held Contest around a Very Popular Programme Tie up lot of youth brands

PROMOTION

WITH THE FOOD: SIDE MENU CARD

ON THE WALL

The most imposing branding option within a cafe for visual communication

with minimal amount of text

Contests have been activated through leaflets/contest forms given out with the menu-card /bill folders

Drop boxes, which also add to prominent visibility, are used to collect all entries to the contest

CONTESTS @ CAFES

Tent Cards are the chosen element in the cafes since they are all about “I am here, you cant miss me”

ON THE TABLE: STICKERS & TENT CARDS

EDITORIAL COVERAGE

PEOPLE

Dressed in a particular uniform Soft spoken, friendly behaviour Customer Engagement Activities

–Special Offers on Occasions (Birthday, Valentine day, Friendship day etc.)– Online Contests– Happy Hours

PROCESS

People Processing Services Minimum Response Time Complaints and feedback Assisted by the attendee or the brew master in Lounge and Square Self Service Counter for Café Coffee Day outlets in Offices / few

Malls. Ordering and delivery earlier was self service and now most of the

coffee shops have waiters to take order and deliver at the table

CHARACTERISTICS OF SERVICES

Intangibility– Experience– Taste of Coffee

Inseparability– Service provided

Perishability– Availability of tables

Heterogeneity– Ambience of different

outlets

Easy accessibilityThere is a Cafe Coffee Day outlet in every major city in India and are easily accessible.

Rural area locationsCustomers in the smaller communities also enjoy good quality coffee and snacks at affordable costs because the Cafe has set up outlets in the rural areas in India.

DistributorsThe coffee produced on the Cafe’s farms, are distributed through wholesalers and retailers to customers who wish to use the coffee at home.

DISTRIBUTION CHANNEL STRATEGY

Recommendations

1. To improve the interiors and décor.

2. To have more and more tie-ups.

3. Only 50 % or less than 50 % people find Café Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Café Coffee Day need to do lot of homework in order to satisfy its customers.

4. It should introduce a feedback form system in order to knowabout the customers satisfaction level.

Thank You