This is a case study on growth and establishment of Asia's biggest café chains and also its downfall due to debt trap.

1. CAFÉ COFFEE DAY
CASE STUDY
Presented by:- Abhijeet Anand
Computer Science and Engineering

2. Contents
covered:
Introduction
How Café Coffee Day started
Challenges faced by CCD
How CCD overcame those challenges
Marketing and advertising strategies
SWOT analysis
Business Expansion and Growth
The downfall of CCD

3. Introduction
•
•
•

4. HOW CAFE COFFEE DAY(CCD)
STARTED?
• V G Siddhartha from Chikmagalur district of Karnataka was
the man behind changing the beverages culture of India with
a variety of drinks and side dishes hard to resist.
• Siddhartha happened come across a German business
owner, who was interested in buying coffee beans from him
for his “leading coffee brand in Germany – Tchibo”. During
that brief discussion with the German businessman, he told
his story of how his band had started in a small 10 ft. shop in
Hamburg. This inspiring tale of the Tchibo gave Siddhartha
an outlook of a different world altogether & opened his eyes
and it also gave him a wonderful idea.
• Coffee Day Global which is the parent of the Cafe Coffee
Day chain was incorporated in 1993.The first CCD outlet was
set up on July 11, 1996, at Brigade Road, Bangalore,
Karnataka. V.G. Siddhartha opened the first CCD outlet with
an initial investment of ₹ 1.5 crores.
V G Siddhartha

5. Challenges Faced By CCD
Having done with the initial foundation, the major challenge faced by the cafe coffee chain
was to make a revolutionary change in the Indian culture where the majority of the
population prefer drinking tea rather than coffee.
After the initial struggle, the homegrown cafe chain came a long way, credited with the start
of coffee shop culture in India but then it finds itself facing tough competition not just from
the international chains such as Costa Coffee, Starbucks or Barista but also from various
domestic players and concept cafés.

6. How CCD Overcame
Challenges
• To stand up against the competition, CCD has built its retail strategy
and named it 3As strategy :
Affordability:
• What worked best for the Indian cafe coffee chain was its
combination of aspiration and affordability.
• Even as it gave coffee an attractive makeover, CCD’s prices stayed
well below its rivals.
• Ensuring that it remained the favorite hangout choice for school and
college students or young adults on meagre paychecks from their first
jobs.
Accessibility
• It wasn’t just restricted to the metro cities. If there’s one singular
claim that Coffee Day can makeover all of its rivals, it is that it took
coffee to cities and towns across the country, and offered the same
experience everywhere.
• They always believe in serving an experience along with the coffee.
• They have ensured that the cafes are at an arm’s reach.
Acceptability
•Today, coffee is not just seen as a beverage but a
social glue that brings people together to relax and
unwind.
•“Let’s catch up at CCD,” is probably one line most
Indians have said or heard at one point or the other
over the last two decades.

7. Marketing and advertising strategies
of CCD
• Digital Marketing has become an integral part of Café
Coffee Day’s marketing plan.
CCD’s fan base is overwhelmed with over 5 million fans
on its social media pages and consistently
engaging customers on Facebook, Instagram, Twitter,
Youtube, etc.
• The youth was the key target and early adopters
of trends, they also evolved their strategy and became
more digital-centric as they engaged with the new age
world.
• CCD marketing also constantly ensures the continuous
active engagements of the consumers, like they
conducted the ‘Latte Art Festival’ – where customers
were served coffee topped with creative latte art
designs.

8. SWOT analysis
STRENGTHS
* Products of extremely
good quality and taste
* Highest no. Of stores
* High brand equity among
the youth
* Vertical integration
WEAKNESSES
* High pricing
* Wrong-site selection
* Lacks strength to maintain
the brand
OPPORTUNITIES
* Coffee cafe industry is one
of the fastest-
growing industry in Asia
* Enter and attract
international markets
* Rising income of people
THREATS
* Growing competition from
global and local coffee
chains
* Growing attrition rate

9. BUSINESS EXPANSION AND
GROWTH
• CCD founder V.G. Siddhartha who feared of achieving a target of 500 tones,
ends up selling 6,500-7,000 tones of branded coffee, exports about 28,000
tones of coffee and sells another 2,000 tones locally each year and has a
curing capacity of 75,000 tones becoming the largest café chain in the country.
Additionally, his cafes attract at least 40,000 to 50,000 visitors per week.
• The company, opened its first store in 1996 in Bengaluru, is presently
operating 1,740 CCD stores in around 250 cities.
• As of reports released in 2015; CCD makes revenues worth $450
Million approx., employees 5000+ people, and has 1530 outlets across India,
Austria, Czech Republic, Dubai & Karachi.

10. The downfall of Cafe Coffee Day
• SR associates were their main auditor who used to audit their outlets.
The auditor wrote a letter to the shareholders of CCD that they have not audited 40 subsidiaries of
Cafe coffee day.
• This was the reason the shareholders backed off and denied to provide further funds.
• Meanwhile, the Income Tax (IT) department raided on Cafe Coffee Day (CCD) retail chains and found
about Rs 362 crore concealed income.
• VG Siddhartha in his letter mentioned that Income tax department was attaching their shares on two
separate occasions to block their Mindtree deal and then taking the position of their Coffee Day
shares, although the revised returns have been filed by them.
• Because they were in such a heavy debt, they started taking short term loans in the form of
debentures with high-interest rates to pay off their long term debt.
This resulted in a more heavy debt burden.
• The founder , V G Siddhartha committed suicide because of this debt trap in July 2019.

11. Thank you