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  1. 1. Presented By: Gyan Prakash B-36 Dheeraj Kumar B-37 Café COFFEE DAY "A lot can happen over coffee"...
  2. 2. Introduction • Founded in 1996 by Mr. V.G. SIDDHARTHA • India’s largest coffee conglomerate, the ABCTCL. • Headquarter in Bangalore & ISO 9002 certified company • First Café at Brigade Road, Bangalore in 1996 • 1534 outlets across 28 states of India • Recently expanded their outlets in Karachi, Vienna, Dubai and Prague • Average Footfalls: 400 to 800 per café per day • First to launch the ‘coffee bar’ concept in India • Coffee day sources coffee from 5000 acres of coffee estates, the second largest in Asia
  3. 3. Divisions of ABCTCL or Coffee Day Sub Brands 1. Exports 2. Coffee Day Fresh & Ground 3. Café Coffee Day 4. Coffee Day Vending 5. Coffee Day express 6. Coffee Day – Perfect • Mission:- “To be the best Cafe chain by offering a world class coffee experience at affordable prices.” • Vision:- “To be the only office for dialogue over a cup of coffee.”
  4. 4. Coffee Industry in India • Sixth largest producer of coffee in the world • Contribute 4% of the entire world coffees production • As per the survey (Indian coffee board) increase rate in the domestic coffee consumption was 5 to 6% • Coffee consumption in India had increased to 94,400 tons in 2008 • India leading coffee exporters with clients across USA, Europe and Japan. • Exports comprised 80% of India's coffee production while only 20% was utilized for the domestic purpose • Market dominated by Nescafe, Bru & Tata café, and Nescafe however was the clear market leader with the share of Rs. 360 crores
  5. 5. Café format CCD had ventured into multiple formats like- 1. Music cafés 2. Book cafés 3. Highway cafés 4. Cyber cafés 5. Garden cafés And now they are planning to launch • Sports Café, Fashion Café, and singles café
  6. 6. Competitions • Direct Competitors: Barista, Cafe Mocha and Java green • Indirect Competitors: McDonald, Haldiram • Global Competitors: Star Bucks, Costa coffee • Substitute effect • Competitive coffee outlets and all have the same target audience. • Branches of all competitors are located close to each other • Low degree of product differentiation
  7. 7. SWOT Analysis Strengths • Largest retail chain of cafes • ISO 9002 certified company • Quality and taste • Youth oriented brand • Cheaper products • Over 1000 outlets and 300,000 visitors per day Weakness • High competition in this segment • Difficult to maintain brand loyalty • CCD stores are incurring loses due to wrong site selection.
  8. 8. Cont.. Opportunity • Fastest growing industries in Asia • Preferred for informal meetings • Introduce cheaper versions of coffee • Tap the smaller towns/cities • Global expansion • Tie ups with other companies for promotion Threats • Large unorganized market • Competition with Barista, Mochas etc • Entry of foreign players like star bucks • Dependent on Govt commodity rates
  9. 9. STP Analysis •Middle class and upper middle class youth •Students, House wives and youngsters •People who value a great cup of coffee •Seeks to target not just the youth but anyone who is "young at heart”. •Medium Price Band “Third Place" away from the home and college or workplace for the young and the young at heart. Café Coffee Day has its main consumer base in the age group of 15-29 years. SEGMENTATION TARGETING POSITIONING
  10. 10. Key Target Audience • Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage. • The group comprises of mainly college going students and young working professionals 9% 13% 21% 35% 24% Age Group Above 30 Below 19 16-19 20-24 25-30 27% 66% 7% Married Students others
  11. 11. Key Target Audience
  12. 12. Video
  13. 13. Product Mix
  14. 14. Cont..
  15. 15. Marketing Mix Product • Wide range of products • Eatables adopted to Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc. • Indian taste along with classic coffee. Price • Affordable price- (20 to 200) • Price of a cup of coffee is (45-80) Place • Strategically located outlets (High Street/ Family Entertainment Centres and near Highways) Promotion • Word of mouth publicity • Association with Movies (Main Hoon Na, Mujhse Saadi Karoge, Khakee, etc). • Café Citizen Cards • Barter deals with other brands
  16. 16. Cont.. Some of the important campaigns are- 1. Sugar free campaign 2. Levis campaigns 3. TVS scooty valentine campaign 4. The channel V get gorgeous hunt 5. The Himalaya honey campaign
  17. 17. People • People at C.C.D. believe that “People are hired for what they know but fired for how they behave”. • Reward scheme like “people of the month” • Reward was always based on attainable goals (SMART) Physical Evidence • Logo, Colours, Images • Décor & Architecture • Literature • Dress Code Process • Order process - Based on services (Customer read menu and order). • Flexible delivery process (Customer can go directly, take the order placed or order delivered on his table)
  18. 18. Porter five force model • Threat of new Entrants: (HIGH) – Barista – Costa Coffee • Bargaining power of Buyers: (HIGH) – Price comparison – Variety of products – Service provided • Bargaining power of Suppliers: (LOW) – Food items obtained from local suppliers – Follows backward integration – Coffee beans from its base in Bangalore
  19. 19. Cont…. • Threat of Substitutes Products: (VERY HIGH) – Ice tea offered by Costa coffee – Coffee offered by other competitors – Cold drinks served in stadium • Competition within an Industry: (VERY HIGH) – Barista targeting same youth – Pepsi and coke
  20. 20. Differentiation strategy 1. 1481 outlets in 200 cities 2. Right Locations 3. Place a cafe in every possible location where some business can be generated. 4. To be present in educational institutions and corporate campuses 5. Variety and wide choice 6. Good hospitality 7. Consistent service at all outlets