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Ccd Ccd Presentation Transcript

  • • 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?
  • Mission “To be the best cafe chain by offering a world class coffee experience at affordable prices.”
  • 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.
  • 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
  • Café Coffee Day Network of 1450 cafes across India 185 cafes 64 cafes 172 cafes 191 cafes
  • 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
  • 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
  • • 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”
  • • 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
  • • There is a definite skew towards singles: 66% singles, 27% married & 7% others. Segment Target Positioning 7% 27% 66% Married Single others
  • Segmentation Target Positioning Who hangs out at CCD? Business Professionals : 23% Special occasions : 20% Hangout for youth: 57%
  • 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
  • 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”
  • 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)
  • 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
  • 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
  • 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+
  • 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
  • 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
  • • 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
  • 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