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  • Ccd

    1. 1. • India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd • Pioneer of the café culture and the first to launch the ‘coffee bar’ concept in India • Network strength: Over 1400 cafés in 200 cities/towns across India and growing • Average Footfalls: 200 per café per day What is Café Coffee Day?
    2. 2. Mission “To be the best cafe chain by offering a world class coffee experience at affordable prices.”
    3. 3. SBU (Different Divisions) •Coffee Day Fresh 'n' Ground. •Coffee Day Xpress. •Coffee Day Take away. •Coffee Day Exports. •Coffee Day Perfect. •(FMCG Packaged Coffee) division.
    4. 4. Market Analysis • Coffee – a sunrise industry • Growing young population and promotion of coffee culture • Coffee Segmentation: Filter coffee and instant coffee 43% share of filter coffee Pure and blended coffee Cheaper products like chicory, vanilla, mocha Robusta and Arabica Beans Different growth culture
    5. 5. Café Coffee Day Network of 1450 cafes across India 185 cafes 64 cafes 172 cafes 191 cafes
    6. 6. Market Analysis • Network strength of over 1450 cafes in 200 cities and towns with average footfalls of 200 per café per day • Distribution Strategy: Growth Target Tier I • Single unit at Chikmagalur with capacity of 70,000 tonnes per annum Tier II Tier III 10% 50 • Packaging industry: • Serving hot coffee 210ml and cold coffee 350ml • CCD merchandises • Regional Distribution: • Targeting expansion in smaller towns • New café formats in metros – • Lounge • Square 30% 150 60% 300
    7. 7. Profiling the CCD’ian Hangs out at cafes/malls Socially Active Seeks 'feel-good factor' and expression of identity through choice of brands consumed. But is also value conscious Strong voice in household purchases Looking for a good lifestyle Likes to be seen at the right place Looking for a multiplicity of experiences Consumption areas: Personal clothing & accessories, food, entertainment, consumer durables Tech Savvy Make consumption related decisions in company of friends Influencers: Peer group, workmates
    8. 8. • Average dwell time at café: 45 minutes • Meeting place for 15-35 year olds • The place they frequent most after “home and workplace/college” • A place where they meet friends and colleagues, in groups of 3 or more • A place where they rejuvenate and are free to be themselves rather than a place to be “seen at”
    9. 9. • Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage. Segment Target Positioning • The group comprises of mainly college going students and young working professionals
    10. 10. • There is a definite skew towards singles: 66% singles, 27% married & 7% others. Segment Target Positioning 7% 27% 66% Married Single others
    11. 11. Segmentation Target Positioning Who hangs out at CCD? Business Professionals : 23% Special occasions : 20% Hangout for youth: 57%
    12. 12. STRENGTHS • • • • • • WEAKNESS First-mover advantage Excellent brand name and visibility ISO 9002 certified company Quality, service and taste Youth oriented brand Reduction in cost • Lack of individual attention to loyal customers • Unavailability of fresh food • Market penetration of coffee bars is 5% SWOT OPPORTUNITY • • • • • THREAT Fastest growing industries in Asia Merchandising Tie ups with other companies for promotion Tapping smaller market Cheaper varieties of coffee • Competition with Barista, Mochas, Gloria Jeans, Costa Coffee & Starbucks • Presence of other ‘Hangout’ locations • Unorganized market • Dependent on government commodity rates
    13. 13. Marketing Mix Price Place Promotion • Range from Rs45 to Rs100 • Over the years only minor changes in pricing policy • All locations • Strategically located outlets • Coffee machines in college canteens • Kiosks in offices • Channel [V]’s “Get Gorgeous” Contest • Tie up with youth brands • Khakee and Main Hun Na • Sales Promotion Product • Wide range • Frappe – Summer • Cappuccino Winter • Merchandizing Process • Self service to table service • Complaints and feedback • Response time People • “People are hired for what they know but fired for how they behave” • Motivation and personal skills Physical Evidence • Logo in “Dialogue Box” • Architecture and décor • Coffee table books • Tag line : “A lot can happen over coffee”
    14. 14. Porter’s Five Forces Model Threat of new entrants (LOW) Buyer’s Power (HIGH) Industry Rivalry (HIGH) Supplier’s Power (LOW) Threat of Substitutes (HIGH)
    15. 15. Porter’s Five Forces Model Threat of new entrants - Medium • Presence of several established brands/hangout places/fast food joints • High costs for starting a coffee shop chain • Government policies promoting FDI Buyer’s Power - High • Low switching cost • Variety of products • Variety of services Supplier’s Power - Low • Government regulations on prices of milk and coffee • Backward integration Threat of substitutes - High • Aerated drinks, milk beverages, juice centres and tea shops • Fast food joints like Pizza Hut, Mcdonalds etc • Hangout places like Hukka parlours Industry Rivalry - High • Local Coffee chains like Barista, Mochas • Entry of international coffee chains such as Starbucks, Costa Coffee, Gloria Jeans
    16. 16. Political Economic PESTEL Analysis • Less bureaucratic hurdles • Easy sourcing of coffee beans • Cost control because of Govt regulations • Heavy coffee drinkers in South India • Cheaper sourcing maintain quality Social • Targets youth and middle class • Affordable for a meeting place Technological • Marketing strategy based around technology • Provide entertainment over Bluetooth &Wi-Fi Environmental • Limited production/Less pollution • Use biodegradable plastics Legal • Ethical and based on customer delight • Less consumer complaints and quick customer service
    17. 17. Competitor Analysis Market Share others 6% costa coffee 14% Barista 26% CCD 54% Unorganised sector CCD 33% Chandu Chaiwala 67% Share of mind Gloria Jeans 3% Starbucks 12% Barista 17% CCD 68% Sample size – 150+
    18. 18. STRENGTHS WEAKNESSES • Excellent brand name and brand visibility • Excellent human resource – ambience and décor • Strong brand recall and popularity • Has over 200 stores across India • Creating of Moment of Truths for couples • Perceived as expensive brand • Dependent on TATA suppliers for coffee beans • Competition from other coffee chains, restaurants and fast food joints • More known for coffee, less known for its food products SWOT OPPORTUNITIES • Introduce cheaper & unique versions of coffee • Tap smaller towns/cities • Increase promotion to change the perception of being an expensive brand THREATS • Threat from existing coffee chains and fast food outlets • Dependent on government commodity rates
    19. 19. STRENGTHS WEAKNESS • Global brand name coupled with the trustworthiness of TATA • Experience of expanding into emerging markets • Perception of Higher quality products • Youth oriented brand • Excellent brand and service • Reduction in cost • • • • Starbucks is recognized for its high prices Considered a place for elite class to hangout Lack of presence in non-metro cities Relatively small product breadth SWOT OPPORTUNITY • Interest in Western Brands in Indian minds • Targeting rapidly growing Indian urban youth • Well defined plan to expand in the next 5 years THREAT • • • • Global Policy Conflicts Presence of other ‘Hangout’ locations Largely unorganized market Established competitions
    20. 20. • As a reaction to the launch of Starbucks in India, CCD debuted with TV Ad – Sit down-ism Advertising • Gives customer a purpose for hanging out • Word of mouth • Subtle advertising in movies and TV serials • Print and social media • Sponsoring college events and giving out discount coupons • Tie up with different corporates • Presence of outlets in all areas
    21. 21. Suggestions • Cultivating a cult following for coffee aficionados • Custom made orders • More variety in food • Healthier options in food • Train staff to strike a personal cord of regular customers • Availability of all items on menu all the time • Screening of key sports events – IPL, EPL etc
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