Marketing Plan of Cafe Coffee Day!

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Marketing Plan of Cafe Coffee Day!
A Marketing Concept.

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  • 1. MARKETING PLAN OF Presented by:Shahbaaz Ahmed (PGFB1345) Shravan Kumar (PGFB1347) Sundram Sinha (PGFB1352) Saloni Mishra (PGFB1343) Swati Sharma (PGFB1353) Rajni Vasisht (PGFB1336)
  • 2. •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. Executive Summary • Network strength: Over 1400 cafés in 200 cities/towns across India and growing. • Average Footfalls: 200 per café per day.
  • 3. Mission “To be the best cafe chain by offering a world class coffee experience at affordable prices.”
  • 4. Current Market Situation • 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. Café Coffee Day Network of 1450 cafes across India 185 cafes 64 cafes 172 cafes 191 cafes
  • 6. • Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage. Target Audience • The group comprises of mainly college going students and young working professionals
  • 7. • There is a definite skew towards singles: 66% singles, 27% married & 7% others. Target Audience 7% 27% 66% Married Single others
  • 8. S-T-P-D SEGMENTATION Café Coffee Day has its main consumer base in the age group of 16-30 years. TARGETING •Middle class and upper middle class youth •CCD seeks to target not just the youth but anyone who is “young at heart”. •Medium Price Brand POSITIONING •“Third DIFFERENTIATION Place" away from the home and college or workplace for the young and the young at heart. •1481 outlets in 200 cities •Fun Place Corporate Campuses. •Cafe in locations where some business can be generated. •Educational institutions and
  • 9. DISTRIBUTION STARATEGY • 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
  • 10. 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
  • 11. Objectives & Issues:Threat of new entrants - Medium • Presence of several established brands/hangout places/fast food joints • High Investments for Expansion. • Government policies promoting FDI . Buyer’s Power - High • Low switching cost • Variety of products • Variety of services Profitability - High • Increase Market Size and Brand Awareness by Vending Machines and Kiosks in public places. • To Increase the use of Technology Portfolio.
  • 12. Competitor Analysis Market Share others 6% Gloria Jeans 3% costa coffee 14% Barista 26% Share of mind CCD 54% Starbucks 12% Barista 17% CCD 68% Sample size – 150+
  • 13. Marketing Strategy: Marketing Mix Product • Wide range Price • Range from Rs45 to Rs100 • Frappe – Summer • Cappuccino - Winter • Merchandizing • Over the years only minor changes in pricing policy Place • All locations • Strategically located outlets • Coffee machines in college canteens Promotion • Channel [V]’s “Get Gorgeous” Contest • Tie up with youth brands • Khakee and Main Hun Na • Kiosks in offices • Sales Promotion
  • 14. • As a reaction to the launch of Starbucks in India, CCD debuted with TV Ad – Sit down-ism Action Programs: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
  • 15. Alternate Advertising Mediums… Media Partner Advertising Medium Pan India presence Teli Brahma Wi-Fi / Bluetooth Downloads 405 Café Chronicle Café Newspaper 721 DSN screens Television Screens 168 Radiowalla Café Radio 334
  • 16. Coffee Day Xpress branding options Leaflets Counter top Tent Card Danglers Standee Cup Branding Vouchers / Scratch Cards / Discount Coupons
  • 17. BUDGET • Organised Coffee Market is around 67$ Million ( Rs. 300 crore) growing at a rate of 40%. • Or • CCD Contributes a third of the Group’s Combined Revenue of nearly 2,000 crore. • Revenue Model is measured by Market Potential for Business (Price *Volume). • Cost Structure includes Allocation of Costs in Key Assets, Direct Costs, Indirect Costs etc. • Owns Plantation, Cold chain, Logistics for Economy of Scale and Effective Supply chain. • Satisfactory Margins and Inventory Turnover for the Growth. • 3 % of Company’s Revenue Spent on Training the Staff in Major cities.
  • 18. CONTROLS Treat customer. fairly Cultivate Relationship with Customer Learn from Recovery Experience Fail-safe the service Track complains
  • 19. References http://www.casestudyinc.com/coffee-daybrand-strategy-india http://www.pr-inside.com/india-food-anddrink-report-q-r2164244.htm http://en.wikipedia.org/wiki/Marketing http://www.cafecoffeeday.com/ http://www.barista.co.in/users/index.aspx