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ABOUT THE INDUSTRY
India’s annual Consumption -97000 tonnes.
Annual growth rate :5-6%
Average per capita consumption : 66 gramsannual
Urban areas-73%, Rural areas- 27%.
CAFÉ COFFEE DAY
Started by V. G. Siddhartha in Brigade Road Bangalore, 1996
Largest organized retail coffee chain in India
Total outlets- 937 in every nook and corner of the country
Plans to open 180 more outlets in fiscal year 2010.
A Rs. 750 crore, ISO -9002 certified company.
New cafes planned across – Middle East, Eastern Europe, Egypt, Eurasia, South East Asia
The Biggest Competitors for CCD are:
Local Café shops like Nescafe
Grows the coffee it serves in its cafes
Well-equipped roasting unit
The eatables catered by different vendors
Ice creams- Cream Bell
Milk - Amul
Snacks from local vendors
Sells merchandise through its stores.
Enjoys trust for quality, hygiene and consistency of food.
Price for a cup of coffee ranges from Rs 45 to Rs 80
Only minor changes in the pricing policy due to changes in Govt. taxes.
- Larger font- Emphasis on the word CAFÉ.
- Red signifies leadership and passion.
- Swirl for purity of purpose and the feel of coffee.
Architecture and décor-uses bright colours and interiors according to the youth.
Designing of pamphlets posters and menu to attract the youth.
Ordering and delivery earlier was self service and now most of the coffee shops have waiters to take order and deliver at the table.
Emphasis on motivation and personal skills of the people.
Friendly waiters and services.
Employees follow international standards of hygiene,
cleanliness and personal grooming.
Reward Schemes like “Employee of the month”
Prime factor for success- Located at every possible location where business can be generated.
Caters to target market with strategically placed outlet .
Eg-Located in high street, gas station and near colleges.
Tier-I cities ( Jaipur, Kanpur, Surat)
Tier-II cities (Mysore, Guwahati, Jamnagar)
Satellite cities and urban outgrowths (NaviMumbai, Faridabad, Secunderabad)
To be expanded to Tier-III cities
Tie-up with Ginger Hotels of the Taj Group
POSITIONING AND BRAND IMAGE
Brought café culture to India
For the youth: Young (AT HEART) customers, young and friendly staff
Highest distribution network
Targetmiddle and upper middle class
Age group 15-29
20-24 years- 37%
25-29 years- 27%
Frequency of visit:
Valentine's day promotion, "Café Coffee Day Luv Zone“
Held a contest around a very popular program on Zee English called Friends.
They have tied up with Channel [V]'s Get Gorgeous contest.
They were involved in WWE, Elton John, and Bryan Adams ticket sales
HDFC wanted to promote their debit card and they choose Café Coffee Day. So 21 cafes have debit card machines.
Association with movies
Socha Na Tha
Special ‘Café Citizen Card’
Earlier perceived as a place where intellectual meet
Positioned itself as a coffee bar and has maintained that position for a long time now.
CCD saw a latent market in youngsters
For youngsters- CCD a fun place where one can go anytime of the day and have fun with friends. In 2002 CCD underwent a rebranding exercise.
CCDspent INR 1.5 billion to redesign existing cafes (2009).
Products of extremely good quality and taste
Its a youth oriented brand , hence huge potential
since 40 % population is below 20
It produces the coffee it serves hence reducing
USP of brand is its considered a highly affordable
The store ownership of the company might hinder in
their expansion policies
Price of the products is relatively higher than brands like Java Green and McDonalds
CCD cafes are small in sizes
Many of the CCD stores are incurring loses due to wrong site selection (national highways)
Coffee cafe industry is one of the fastest growing industry in Asia
More people like to visit CCD for informal meetings
CCD has gone international , and is planning to attract many new international markets, hence gaining international recognition
Changing lifestyle of youth, they like to spend time on lounging.
Competition with other coffee cafes like Costa Coffee, Barista & Mochas.
Consumer trends towards more healthy ways and away from caffeine
International players like Starbucks
New entrants and costs
Follows a backward integration of the value chain
Procures coffee beans from its base in Bangalore.
Focus on core competence- coffee, outsources other item
Food items are obtained from local suppliers- cost advantage
Far greater reach on a country wide scale
Place for fun and hangouts for youngsters.
Does not use franchisee model.
Offers variety as per changing times.
CCD doesn't sell product, it sells “EXPERIENCE”