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1. 1
BRAND DOSSIER
Cafe Coffee Day
Submitted to: Prof S. Govindrajan
In partial fulfilment of the requirements of Marketing management-1
Group 4:
Uma Balakrishnan
ManishMadhukar
AbhiramGoud
SourabhDhariwal

2. 2
CONTENTS
Part 1
HISTORY.............................................................................................................................................3
POSITIONING......................................................................................................................................4
ADVERTISING, SALES PROMOTION AND SEGMENTATION STRATEGY......................................................5
PRODUCT ANALYSIS............................................................................................................................8
GENERIC COMPETITION......................................................................................................................9
DISTRIBUTION STRATEGY....................................................................................................................9
COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY................................................................................10
MARKET EXPANSION.........................................................................................................................11
SUMMARY .......................................................................................................................................11
Part 2
PRIMARY RESEARCH PROPOSAL FOR CAFÉ COFFEE DAY......................................................................12
HYPOTHESES: ...............................................................................................................................12
INFORMATION REQUIREMENTS COLLATED FROMTHE RESEARCH .......................................................13
INSTRUMENTS OF DATA COLLECTION................................................................................................13
QUESTIONNAIRE...............................................................................................................................15
SAMPLING PLAN...............................................................................................................................18
Part 3
METHODS OF DATA ANALYSIS...........................................................................................................18
HYPOTHESIS 1 ..................................................................................................................................19
HYPOTHESIS 2 ..................................................................................................................................22
HYPOTHESIS 3 ..................................................................................................................................24
HYPOTHESIS 4 ..................................................................................................................................26
ANNEXURE.......................................................................................................................................28

3. 3
PART I- BRAND DOSSIER INTRODUCTION
HISTORY
ABOUTCAFÉCOFFEE DAY
Café Coffee Dayisa divisionof India'slargestcoffee conglomerate,AmalgamatedBeanCoffeeTrading
CompanyLtd. (ABCTCL),popularlyknownasCoffee Day.ThisisaRs. 300 crore ISO9002 certified
company.Itschief customersare inUSA, Europe & Japan. BasedinChickmaglur,the home of some of
the bestIndianCoffees,Coffee Dayhasitsbusinessspanningthe entire gamutof coffee consumptionin
India.Itsdifferentdivisionsinclude:
 Coffee DayFreshnGround (354 Coffee beanandpowderretail outlets)
 Coffee DayXpress(341 Coffee DayKiosk)
 Coffee DayTake away(7000 VendingMachines)
 Coffee DayExports
 Café Coffee Day
 Coffee DayPerfect(FMCGPackagedCoffee)division
Café Coffee Day(CCD) pioneeredthe café conceptinIndiain1996 by openingitsfirstcafé at Brigade
Road inBangalore.Till aboutthe late 1990’s coffee drinkinginIndiawasrestrictedtothe intellectual,
the SouthIndiantraditionalistandthe five starcoffee shopvisitor.Asthe pure (asopposedtoinstant
coffee) coffee café culture inneighbouringinternational marketsgrew,the needforarelaxedandfun
“hangout”for the emergingurbanyouthinthe countrywas clearlyseen.Recognizingthe potentialthat
layaheadon the horizon,Café Coffee Dayembarkedonadynamicjourneytobecome alarge organized
retail café chainwitha distinctbrandidentityof itsown.
CAFÉCOFFEE DAY IN THE PAST12 YEARS:
1996
1st
café in Bangalore
2001
14 cafés in 6 cities

4. 4
POSITIONING
Café Coffee Day,atits inceptionin1996 was the vanguardof a café culture inIndia. Ata time whenthe
countrywas growingwell economicallyandyoungIndiaenjoyedhigherspendingpower,CCDasit is
popularlyknown,startedtosetupthe firstretail chainof coffee bars.It broke new groundin1999 when
the entire marketgrewphenomenallywiththe entryof new players.
From the beginning,itpositioneditself asbeingacoffee barand has maintainedthatpositioningfora
longtime now.For a consumer,CCDrepresentsa“funplace”where one can go witha whole bunchof
friendsatany time of the day and have a goodtime,overcoffee.
In 2002, Café Coffee Dayunderwentarebrandingexercisethroughachange in itslogo.The earlierlogo
was a simple redsquare withawhite streakrunningacross,and‘Coffee Day’writtenatthe bottom.At
thisstage,CCD wasstill perceivedasa SouthIndiancoffee jointsimilartothe Coffee House inKolkata,a
place where intellectualsmeetandspendtheirtime discussingissues.CCDsaw a latentmarketin
youngsters,whowere increasinglylookingforaplace to spendtime withfriendsandhave fun.Itthen
createdan umbrellamotherbrand,Coffee Dayandfoursub-brandstorepresentthe variousactivities.
The logo thenincorporatedred,white andgreencolours,alargerfontandemphasisonthe word‘Café’.
Accordingto the company,redsignifiesleadershipand passionandthe white swirl standsforpurityof
purpose andthe feel of coffee.The newcolourgreenendorsedthe longheritageof CCDingrowing
coffee.
2008
607 cafés across 98
cities,andinPakistan
and Austria
Near Future
ExpandingtoMiddle
East, Eurasia,East
Europe,Egypt,S.E Asia

5. 5
Café Coffee Dayisknowntoexperimentwithdifferentcafé formats.Theyhave been:
 Music cafés
 Bookscafés
 Highwaycafés
 Lounge cafés
 Gardencafés
 Cybercafés
The most recentadditionhasbeenlounge cafes.These catertoa more niche segmentthanthe general
consumersegmentof CCD.The age groupof 20-29 wouldbe more able to afforda lounge settingthan
the group of 15-19.
ADVERTISING, SALES PROMOTION AND SEGMENTATION STRATEGY
Café Coffee Daydoesnotlookat mass mediaasa viable areaof advertisingormarketingspend.CCDis
advertisedthroughbarterdealswithotherbrandsforgroundevents
BELOW-THE-LINEACTIVITIES:
 2003- Levi’slaunchedanewrange of Low Rise jeansthrough acampaigncalled‘6” below’.CCD
displayedPOPsof Levi’sinall itsoutletsduringthe campaign.
 2004- The launchof Liril Orange soapby HLL was conductedinCafé Coffee Day.
 2004- TVSScootytiedup withCCD foreventsinthe coffee barsandat mallson Valentine’sDay
inFebruary.
 2004- CCD wasthe official groundpartnerforthe Channel V GetGorgeouscontest
IN-FILMADVERTISEMENTS:
 Some TeleguandTamil filmswithprominentbrandplacement
 Hindi films- ItstartedwithBasYun Hi andthenconsciousadvertisementdecisionswere made
for Khakee,MainHoonNa,KyunHo Gaya Na andMujhse Shaadi Karoge.
All these movieswere targetedatyoungmovie-goers,teenagersand people lookingforlight-hearted
entertainment.These are muchthe same kindof people whoare likelytovisitCafé Coffee Day.
 Serialslike Kahani GharGhar Kii,butthere are no importanttie-upswithsuchentities.

6. 6
SALESPROMOTIONS:
 Merchandising- EveryCCDstocksmerchandise rangingfromcoffeemugs,T-shirts,caps,
bags,coffee filters,mints,differentflavoursof coffee powders,teaandcream, wafersand
biscottis.Italsomerchandisespromotionalmaterialsforotherbrandsitassociateswith.
Whensome brandsare conductingeventsforwhichpassesare distributedormovie
premiere ticketsare givenout,CCDisanimportanthubfor these activitiesasmostof the
target market.
 CCD’sGuide to Active Holidays- Itisatravel guide focusingonadventure sportsandis
available inthe CCDoutlets,forpeople seekingescapadefrommonotonouslife.
 Café Beat- An in-house magazine whichgivesthe entire low-downonwhat’shappeningin
CCD outletsacrossthe world.Itdescribesexperiencesof customers, celebrationsinCCDs,
and coversyouth-centrictopicslikemovies,music,travel,lifestyle,e-dating,booksand
careers.Around38% of CCD goersreadCafé Beat and some carry it backwiththem.
 CCD has nowtiedupwithWorldSpace andMicrosense toprovide satellite connectivityinits
outlets.
SEGMENTATION STRATEGY:
Café Coffee Dayhasits mainconsumerbase inthe age groupof 15-29 years.Its customersare mainly
middle classanduppermiddle classyouthwhoare upwardlymobile.Fromthe market,CCDseeksto
target notjustthe youthbutanyone whois“young at heart”. More than 10% of theircustomersare
above 35 yearsof age.The evidence of the connectCCDhas beenable tomake,particularlyamongthe
youth,comesfromthe findingsof BrandEquity's Most TrustedBrands 2008 survey. Inthe foodservices
category,CCD ranksNo 2, while McDonald’sstandsatNo. 3 and Barista lagsat No 5.
The graph below indicatesofficial figuresforthe type of consumersof CCD.We can clearlysee thatits
mostprofitable segmentisthe 20-24 age brackets.These customerscanaffordto visitCCDon a regular
basisand have a habit-formingattitude towardsCCD.

7. 7

8. 8
PRODUCT ANALYSIS
Café Coffee Dayhasdifferentcafé formatsacrossdifferentcites.Theycanbe categorizedintoMusic
Cafés,BookCafés, Highwaycafés,Lounge cafés,Gardencafés,andCybercafés. Everyformathasa
differentfeeltoit.
Also,Café Coffee Daychangesormakesfreshadditionstoitsmenufromtime totime.Thisincludes
havingspecialtycoffeesfromdifferentcountries,exoticdessertsandpinacoladas.Since the target
consumerisof an age where one constantlyseekschange,thismakessure thatthe consumerdoesnot
getboredwitha repetitive style andseeksnew placestogoto.
Café Coffee Dayhaschangeditsinteriorstwice since inception.First,duringitsrebrandingin2002,
where itbroughtinbig photographicwall mountsof coffee experiences,andyellow chairsandmarble
tables.In2006, itagainchangedits décorto cane chairsto give the outletsamore causal feel.Café
Coffee Dayhashence constantlyreinventeditslooktokeepupwiththe ever-changingwantsof its
consumers.

9. 9
GENERIC COMPETITION
DIRECT COMPETITORS:
 Barista- Thisis the closestcompetitortoCafé Coffee Day inthe Indianmarket.Theytargetthe
same class of upwardlymobile youthandyoungprofessionals.ButBaristaisoftenviewedasa
place to unwindafterahard day’swork or an ideal settingforsome businessmeetings.
 Café Mocha- Thisaimsat providingalevel of experiencetothe consumerwhichishardto
imitate.InspiredbyMorocco andTurkey,Mocha offersnotjustcoffee butalso sheeshas from
Egypt andgourmetdesserts.Mochacallsitself ‘acoffee shopforthe soul’.
 Qwicky- Basedmainlyin Bangalore,Qwickyhasa stronglocal holdinSouthIndia.
INDIRECTCOMPETITORS:
 Eaterieslike McDonald’sandHaldiram’spose competitiontoCCDas theyare likelyattractions
for a consumerto be drawnto. A consumercan well contemplate whyhe shouldspendaround
Rs. 45 on a coffee whenhe cangeta burgerand a coffee forthe same price at McDonald’s.
 Local teajointsandcoffee shopslike Café Nescafe- Theyare smallerplacesbutnevertheless
target the same setof consumers.Hence,CCDhasto consider the threata shoplike thiscould
pose to it.
GLOBAL COMPETITORS:
 Starbucksis planningtoenterIndiashortlyandwouldbe stiff competitionforevenan
establishedbrandlike CCD.
 Coffee barsinthe marketof the othercountrythat Café Coffee Dayisenteringisalsobe a factor
CCD will have toplanfor before enteringamarket
DISTRIBUTION STRATEGY
Today CCD hasthe largestnetworkof cafes inIndia,withover607 ‘CompanyOwnedCompany
Operated’cafesacross98 cities. Buttheydonot follow afranchisingstrategy. The channel partnerhas
no involvementinthe dailyoperational activitiesof the Café inthe retail space.Neitherwould he have
to investinoperational capital equipmentorbrandingormarketingand promotionof Café Coffee Day.
CCD optednotto followforwardintegrationandoutsourceditsdistributionresponsibilitytoother
partiesin2003. Asits reachspreadsacross Indiaandit isnow exploringsmallertowns,CCDwouldfindit
more expensive tomaintainonitsown.The private playerswouldprocure raw materialslike sugarand
papercups but coffee beanswouldstill come fromBangalore.

10. 10
COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY
 Café Coffee Daywhichfollowsabackwardintegrationof the value chainprocurescoffee beans
fromits base inBangalore.Thisgivesita highsense of qualityassurance andguaranteedsupplyacross
itsoutletsasthe same raw material isusedinall outlets.ButBaristaisa combinationof importedcoffee
beansand beansfromTata coffee.Thisisa relative disadvantagebecause if there isadiscrepancyinthe
qualityorsupply,Baristawouldhave toconsideralternativesandprobablylookforanothersupplier.
 Similarly,the fooditemsavailableinCafé CoffeeDayare obtainedfromlocal supplierswhereas
Barista’sfoodiscateredby the Taj caterers.Café Coffee Daywouldhence,have alower-costadvantage.
 The brand strengthof Café Coffee DayincomparisontoQwicky’sandCafé Nescafe isfargreater
and itsreach ison a countrywide scale.A consumertravellingacrosscitieswouldnotfindittoodifficult
to seeka Café Coffee Dayoutletinsteadof decidingontryinga Qwicky’s,whichhe isnotaccustomedto.
 Café Coffee Dayhasan advantage of top-of-mindrecallforcoffee-shop-goersinIndia,especially
because itsetthe café ball rollinginthe country.
 It isa place where alot of youngpeople canmeet,chat,have funand lettheirhairdown,rather
than sitand sipa cup of coffee inprimandproperserenity.Thisisone of the mainfactorsfor whyit is
chosenoverplaceslike BaristaorMocha.

11. 11
MARKET EXPANSION
Recently,Café Coffee Dayenteredatie-upwiththe Gingerhotelsof the Taj.This catersto business
executivesandisona Smart basics’platform.The outletwouldbe opentoall,andnotjust the hotel's
guests.The aimis to increase footfallsinGingerandincrease the reachof Café Coffee Day.Thisway,
CCD can reach out to anothersetof consumers,apartfrom the youngcrowd ithas mainlycateredto.
SUMMARY
Café Coffee Dayisnowlookingatmore café formatsto try innew outlets.Theyare planningonhaving
sportscafes,singles’cafesandfashioncafes.Also,CCDisplanning onopeningmore loungecafesacross
the country.Like it didwithGingerhotels,CCDcan alsotry and findconsumersegmentswhichitdidnot
earlierthinkof cateringto.

12. 12
PART II-RESEARCH PROPOSAL
PRIMARY RESEARCH PROPOSAL FOR CAFÉ COFFEE DAY
Café Coffee Day is looking at fresh growth opportunities and is reaching out to new markets. Some
factors supportingitsendeavoursare thatithas a wide reachandis perceivedasmore thanjust a coffee
place.Teenagersand‘yuppies’are its major market and hence the place is more informal as compared
to a traditional coffee house.The ambience isthatof a relaxedenvironmentand hence acts as a perfect
hangoutzone for targetcustomers.Hence all the planschalkedoutfor expansion revolve around these
aspects.
Takingthese pointsintoconsideration,we have framedthe followinglistof hypothesesforourresearch.
HYPOTHESES:
1. A lot can happen over coffee
CCD positions itself as much more than a conventional coffee shop. It is seen as a ‘fun place’ where
youngsters come in groups and have a good time over a cup of coffee. CCD hence is perceived as a
hangout zone, meeting place for business purposes, enjoying one’s private time etc. CCD provides
facilitieslikeWi-Fi andWorldSpace and other merchandise in order to pull in more customers. We aim
to study whether this actually holds true.
2. In sight, therefore in mind
CCD has 620 cafes spread across 102 cities. Its pan-India presence gives it a huge advantage over
competitors.Ourhypothesisaimstoprove that highvisibilityisone of the reasonsfor CCD to enjoy top-
of-mind recall and high number of loyal consumers.
3. Service quality deteriorates with proliferation of outlets
Having a large number of outlets can also prove disadvantageous for CCD. With increased hiring, it is
possible thatemployeetrainingisnotstringentenough, decreasing the quality of service at the outlet.
Through analysis of consumer experiences, we will try to find out if they feel this is true.
4. Format cafes – the future lies here

13. 13
As mentionedinthe Literature Review,Cafe Coffee Day is planning to introduce different cafe formats
such as SportsCafes,Singles’CafesandFashionCafes.Itisalsolookingtoincrease the numberof lounge
cafes. Our study will hence look into whether this kind of expansion is feasible for CCD or not.
INFORMATION REQUIREMENTSCOLLATEDFROM THE RESEARCH
From this study we will try to look into the following factors:-
Consumer Profile
The consumer profile of Cafe Coffee Day is perceived to be that of upwardly mobile teenagers and
youth. By having a clear idea of who the consumers are, the company can chalk out new plans and
activities targeted specifically at this age group.
Consumer Preferences
Consumer preferences can be studied under the following parameters:
a. Preferred coffee joint
b. Factors behind choosing Cafe Coffee Day
c. Most popular aspects of Cafe Coffee Day
d. Inclination towards format cafés.
Factors Influencing Choice
There are differentreasonsfordifferentpeople to visit Cafe Coffee Day. We aim to assess what, out of
many factors like accessibility, ambience, quality and menu, drive people to choose Cafe Coffee Day.
Consumer Perception
Our research would also like to judge the perceived image of Cafe Coffee Day in the minds of its
consumers. This could be in relation to price, quality and image.
INSTRUMENTS OFDATA COLLECTION
When conducting any type of research, data collection inevitably becomes the main phase. Data
collection refers to gathering opinions and views of sample respondents in order to get a structured
viewof whatconsumersthink.Tofurtherour objective,we have chosen the following methods of data
collection:
Primary Data

14. 14
1. WrittenQuestionnaire-We planto use a structured questionnaire with close-ended questions
and get a section of respondents to answer these questions.
2. Personal Interview- Thiswillbe usedtogarnersubjective information from respondents, which
is not possible with close-ended questionnaires. Also, questions with options like ‘others’ can be
answered effectively with personal interviews.
3. E-mail Questionnaire- We shall be sendingquestionnairesbye-mailalso.These canbe answered
by respondentsatleisure andwithoutinhibitions. It will also give us a wider spectrum of consumers to
consider.
Secondary Data
1. Website of the company.
2. Online consumer forums like www.mouthshut.com
3. Communities of coffee lovers and youth.
4. Newspapers and magazines.

15. 15
QUESTIONNAIRE
Name:
Age:
Sex:
Occupation:
1. Name three coffee shops that you know
a.
b.
c.
2. How often do you visit a Coffee Shop?
a. 2 – 3 times a week
b. Once a week
c. Once in two weeks
d. Once a month
e. Very rarely
3. How much money do you spend at a Coffee Shop? (in Rupees)
a. Less than 40
b. 40 – 80
c. 80 – 120
d. Greater than 120
4. On an average, how much time do you spend in a Coffee Shop?
a. Less than ½ an hour
b. ½ an hour to 1 hour
c. 1 hour to 2 hours
d. More than 2 hours
5. How many people do you go to a coffee place with?
a. Alone
b. 2 – 4
c. 4 – 8
d. More than 8
6. Why do you go to a coffee shop?
a. Only to have coffee
b. To enjoy my private time

16. 16
c. Catch up with friends
d. For group activities(group studies, presentations, meetings)
7. What do youlookfor whenuchoose a coffee shop to go to?(Rank in order of preference 1-
highest , 5-lowest)
a. Convenience/accessibility
b. Ambience
c. Service
d. Quality of food
e. Price
8. Why would you go to a Cafe Coffee Day? (You can choose more than one)
a. Convenience/accessibility
b. Ambience
c. Service
d. Quality of food
e. Price
f. Others(please specify)
9. What do you normally eat or drink in a Cafe Coffee Day? (You can choose more than one)
a. Coffee
b. Smoothies and similar drinks
c. Desserts and confectionery
d. Eatables like sandwich, samosas etc
10. Rate the following factors for Cafe Coffee Day (Tick the choice most applicable)
Excellent Good Average Satisfactory Poor
Staff
behaviour
Value for
money
Availabilityof
preferred
items
Delivery time
Quality of
food/drinks

17. 17
11. Ambience (Tick your preference)
a. Comfort and Feel - relaxed / just comfortable / congested
b. Lighting and Colour - bright / sufficient / dull
c. Entertainment - engaging / I don’t mind it / irritating
d. Table Space - adequate / sufficient / not enough
12. Are you aware of the different ‘formats cafes’ Cafe Coffee Day is coming up with?
Yes No
13. Will you prefer format cafes to a normal Cafe Coffee Day?
Yes No
14. If you had to choose, which of these café formats would you prefer (You can choose more
than one)
a. Music cafes
b. Book cafes
c. Lounge cafes
d. Garden cafes
e. Cyber cafes
f. Sports cafes
g. Singles cafes
h. Fashion cafes
15. Do you have any suggestions to improve Café Coffee Day?

18. 18
SAMPLING PLAN
• Who Are We Surveying?
Our study of consumer opinions is concentrated on coffee-drinkers, youngsters and young urban
professionals or ‘yuppies’. These people come within the age brackets of 15 and 29, which is the main
consumersegmentforCCD.Apartfrom them, we are also looking at some respondents from the 30-40
age band.Thisisbecause a part of our researchwouldbe tofindout whether CCD can expand its target
market to this age group as well.
• How Many People Will We Survey?
We plan to take a sample size of 60 respondents. This would include people from the segments
mentioned above. We will divide these samples among the youth accessible to us, teenagers across
Kolkata and professionals and older people.
• How Will We Choose Our Respondents?
Samples will be chosen according to a combination of sampling procedures:
Convenience sample is one of the methods we will be using, as a part of our respondents are easily
accessible to us.
Judgment samples will also be used as we shall be choosing a set of consumers who can give us
considerablyaccurate information.Withabrandlike CCD,we cannotresort to street-cornersamplingas
we need people who are aware of the brand and the food services industry.
METHODS OF DATA ANALYSIS
Customeropinionandviewsare importantin shapingacompany’sbusinessplans and working on areas
to furtherimprove itsservices.The followingare the tools we will e using to analyse the data gathered
from the research:
 Pie Charts- They show the diversity in the demographics of Café Coffee Day’s customers. They
will also show us what percentages of customers prefer certain cafe formats, certain menu items etc.
 FrequencyDistributiongraphs- Theywill show ussimilardivisionsincustomerhabits and trends
appearing in responses.
 Measures of Central Tendency- These will help us know the concentration of respondents
leaning towards a particular option.
 CorrelationandRegression- These canbe usedtofindrelationships between two variables like
age and spending behaviour.

19. 19
PART III- FINDINGS OF SURVEY
HYPOTHESIS 1
A lot can happen over coffee
The statementabove isthe tagline of Café Coffee Day.Itexplainsin a concise way how Café Coffee Day
is not just a place where one comes for a cup of hot coffee. CCD positions itself as much more than a
conventional coffee shop. It is seen as a ‘fun place’ where youngsters come in groups and have a good
time over a cup of coffee. CCD hence is perceived as a hangout zone, meeting place for business
purposes,enjoyingone’sprivate time etc. CCD provides facilities like Wi-Fi and WorldSpace and other
merchandise in order to pull in more customers. This is what we aim to prove from the following
questions.
Q4. On an average, how much time do you spend in a coffee bar?
If the main reason for a person to visit a coffee bar was just the coffee he can have, it would not take
him more than half an hour. Else, going to such a place with a purpose would entail spending longer
hoursthere.Fromthe graphbelow,one canobserve thatthe highestnumberof respondents spent one
to twohours in a coffee parlour. We can infer that there is a reason more than just coffee behind this.
Q6. Why do you go to a coffee bar?
There can be several reasons for people to go to coffee bars. One would want to go read a book, meet
friends,meetacolleague,dosome office work or just spend some time alone. It is an escape from the
humdrum of everyday life. We have tried to find out the major reasons attributed to visiting a coffee
bar.
0
10
20
30
40
less than half
an hour
half to one
hour
one to two
hours
more than two
hours
Average Time Spent at CoffeeBar Q4
No.ofRespondents

20. 20
Q12. Will you prefer a format café to a normal CCD?
Café Coffee Dayhaslauncheddifferentformatcafésinthe pastone year and isplanningto launch a few
more.The companyis settingupcafes based on particular themes like Music cafes, Book cafes and the
like.Forexample,amusiccafé wouldhave its décor completely based on musical greats, walls painted
with pictures of instruments and different music-centric aspects. We have tried to analyse if people
would actually want to go to a coffee bar of these types.
18.33
30.00
73.33
11.67
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
Reasonsfor Visiting Coffee Bars
Only coffee
Enjoy private
time
Catch up With
Friends
Group
Activities
Percentage
Q6.
yes
70%
no
30%
Prefering Format Cafe over normal CCD
Q 12.

21. 21
Q3. In one visit, how much do you spend at a coffee bar?
One cup of coffee ata tea-shopona streetcornerwouldnotcost more than Rs. 4-7. A vending machine
would not charge a consumer more than Rs. 15. Yet, at coffee bars like CCD and Barista, people do not
mind paying a far higher price for one cup of coffee.
INFERENCES
From the firstgraph,one can see that a large chunk of respondents spend one to two hours at a coffee
bar. Also, 73.33% of these 60 respondents say that they visit coffee bars to catch up with friends. One
can also meet friends at a park, a mall or at his/her house. But with increasing propensity to spend,
consumersdonot mindshellingoutafew extrabucksat a coffee baras it givesthemagood place to sit,
chat and spendleisure time. The graphof question3 suggests this. The second graph also suggests that
30% of respondents like to spend their private time at a coffee bar, which would mean that the place
givesthemthe atmosphere to let their hair loose and do something apart from their monotonous life.
The pie-chartabove showsthat70% of respondentswouldgotoa formatcafé.These cafesare basedon
themes specific to them. The theme would decide activities, ambience, music, visual cues and other
aspectsindigenous to the format. If a book café gives consumers the environment to read and discuss
books, avid readers would haunt the coffee joint.
From the above analyses, we infer that apart from coffee which one can get at a roadside cabin or at
one’s home itself, consumers would actually go to a café to have fun, do group work and relax, rather
than just buy a cup of coffee.
0
5
10
15
20
25
less than 40 40 - 80 80 - 120 more than 120
Average Expenditure per head per visit Q3

22. 22
HYPOTHESIS 2
In sightthereforein mind
CCD has 620 cafesspreadacross 102 cities.Itspan-Indiapresence givesitahuge advantage over
competitors.Ourhypothesisaimstoprove thatthat highvisibilityisone of the reasonsforCCDto enjoy
top-of-mindrecall andhighnumberof consumers.Fromthe followingquestionswe will be able toprove
thishypothesis.
Q1. Name three coffee bars
We use thisquestiontogetan ideaaboutthe top of the mindrecall value whichisassociatedwitha
particularbrand.
Moreover,mostof the respondentshave givenaccessibility/convenience atoppriorityonselectinga
coffee bar.CCD scoreshighlyinthisareaas well.
0
10
20
30
40
50
60
First Preference Second
Preference
Third Preference
Others
Barista
CCD

23. 23
INFERENCES:
From the graph givenabove we caninferthatmost people respondCCDasthe coffee barof first
preference.ThisprovesthatCCDis one brandwhichusesitslarge numberof outletstogreat advantage
because of whichitenjoyshighrecall value inthe mindof customers.Nottomentionthatbecause of
highaccessibilitywhichisaresultof large numberof outletspeoplefinditmore convenienttolocate a
CCD as comparedto othercoffee bars.
0
0.5
1
1.5
2
2.5
3
3.5
4
Snake Diagram
General
CCD

24. 24
HYPOTHESIS 3
Service quality deteriorates with proliferation of outlets
Having a large number of outlets can also prove disadvantageous for CCD. With increased hiring, it is
possible thatemployeetrainingisnotstringentenough, decreasing the quality of service at the outlet.
Through analysis of consumer experiences, we have tried to find out if they feel this is true.
Under Q7 and Q8, we askedconsumerstorate differentfeaturestheyfeelacoffee barshouldgive them
interms of convenience,ambience,price,speedof service etc.Again,theywere asked to rate how they
think CCD has performed in these factors.
0
0.5
1
1.5
2
2.5
3
3.5
4
Snake Diagram
General
CCD

25. 25
INFERENCES
The above graph givesusa comparative analysisof how consumersrate theirexpectationsfromacoffee
bar and how well they think Café Coffee Day has done to meet their expectations. On a weighted
average scale,the ratingsof all 60 respondentswere plottedonthe graph to form a snake diagram. The
blue line showsthatconvenience playsamajorrole whentheychoose whichcoffee bartogo to. On this
parameter, CCD has performed better than expectations, thus giving consumers a sense of delight. In
general,peoplegive importance of 3.25 to convenience while CCDoffersthemconvenience of 3.37. But
on behaviour of staff, CCD gives them service of weighted mean of 2.97 while they expect service of
weighted mean 3.1. Also, staff behaviour expected is at 3.27 while CCD has been rated as 3.18 in this
aspect. This shows that CCD has expanded and increased its number of outlets to give consumers
greateraccessibilitytotheircafes.Butservice qualityof CCDhasnot beenable tokeepup. Behaviour of
the staff has not been upto expectations and at times is an irritant. Speed of service is also slow and
consumers come away with a sense of dissatisfaction.

26. 26
HYPOTHESIS 4
AND INFERENCES
Format cafes – the future lies here
Cafe Coffee Dayisplanningto introduce different cafe formats such as Sports Cafes, Singles’ Cafes and
Fashion Cafes. It is also looking to increase the number of lounge cafes. Our study has looked into
whether this kind of expansion is feasible for CCD or not.
Q11. Are you aware of the different format cafes CCD is coming up with?
Thisquestionanalyseshowmuchconsumersknow about CCD and its new ventures. Format cafes have
already been started in Bangalore and a few other cities. But the pie chart below shows that very few
know about it.
23%
77%
yes
no

27. 27
Q12. Would you prefer a format café to a normal CCD?
This chart again shows us that people would a whopping 70% of respondents, though unaware of the
new concept are ready to give format cafes a try. A large number of them prefer music cafes as seen
below.
This proves our above hypothesis that format cafes would be a smart way for CCD to maintain its
position as an innovative coffee bar and stay in touch with wants of consumers.
yes
70%
no
30%
Prefering Format Cafe over normal CCD
Q 12.
0
10
20
30
40
50
music
book
lounge
garden
cyber
sports
singles
fashion

28. 28
ANNEXURE
DEMOGRAPHICS
AGE:
The medianage of respondentsis22
Mena age:23.0667
SEX:
Males:42
Females:18
GEOGRAPHICDISPERSION:
Respondentsweregeographicallydispersedconstitutingmajorcitiesof India.
Male
70%
Female
30%