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1. Comparative study of café coffee day and barista in
Gwalior
2020
1
CONTENTS
S.No. Particulars Page No.
Acknowledgement
Certificate
Undertakings
1 Introduction
2 Research Methodology
3 Review of Literature
4 Limitation
5 Objectives
6 Finding & Suggestions
7 Conclusion
8 Data Analysis
9 Bibliography
10 Questionnaire
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Chapter- 1
• INTRODUCTION
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INTRODUCTION
SECTION 1: THE COFFEE CAFÉ INDUSTRY
The Coffee Café Industry
The Coffee Café industry is one of the widest and fastest growing sectors in business. The
industry has a mix of individual cafés, hotel cafés and retail café chains.
Individual Cafés:
The main amount of revenue is earned by small, individual cafés, run by families and friends.
It is more of informal sector. There are millions of such cafés around the world, provides
customers with a homely taste and experience.
In Europe, these types of cafes are available in the large numbers, where mostly town or village
has their own locally established cafés, where individual or any group of people gather together
for a conversation on societal issues over a coffee, or just to spend some moment of time alone
with their peace of mind. Even coffee café day have brand tag line “a lot can happen over a coffee!”
These cafés establish their own style, which is generally different from retail and hotel cafés
because they provide guests with a homely feeling and aesthetic appeal, which can’t be matched
by retail outlets, that’s their uniqueness.
Hotel Cafés:
Ever since the growing popularization of coffee, hotels all over the globe started opening
24x7 coffee shops, where visitors of the hotel can visit around the clock for a cup of coffee
and some quick food at any time in a coffee shop.
These coffee houses plays extremely crucial role because they helps in giving international
visitors with a universal drink- coffee in the hotels. Any customer can walk into any foremost
hotel in the world, enter the coffee house and know what to expect. These cafés are not really
major players in coffee café industry, but rather provide supplementary assistance to the hotel
industry.
Retail Café Chains:
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The most familiar sector in the coffee café industry, is retail café chain. These chains have
become extremely known and are growing at an ever fast pace. These retail chains have work
with an formal structure of man, material and money. The work on growing a recognized
brand consistently to all their outlets, to which customers can easily relate to, wherever they
go. They provide customers with a highly standardized level of service and quality at each
of their outlets.
Growth of Café Industry in India
Hot beverages have always been a part of the cultural tradition of India, especially in South
India. Coffee’s use initiated and get its name in South India when the traditional rich Brahmin
class started using the beverage from the Britishers around in 1930s. During the initial 20th
century, coffee was limited only to cultural & traditional rich Brahmin families who served
and used filter beverage in a ‘davra- tumbler’. Now Coffee is served everywhere to any person
irrespective of their class and caste. It is not limited to the rich Brahmin class, and even now
the tradition of serving filter coffee in the ‘davra- tumbler’ continues even today.
The exotic location of the mess of different institutions attracts huge crowd now a days
specially in early morning. The Coffee however was not the only item on the menu but they
also offers & serves food and other drinks to the customers.
The morning offerings became a trend and as a consequence even big brand hotel and
restaurants capitalizing the opportunity and increasing their revenue at a faster pace. With
increase in customer base, they became famous and started operating coffee outlets in nearby
locality of the customers, all over the country. This showed the gradual popularization of
coffee cafés, to all sections of society irrespective of their income level.
The coffee offering is not limited to drink but became widely known as a business concept.
Over the past decade, the coffee signifies growth in the country in the forms of coffee pubs.
Further many coffee shop owners tried to copy coffee making process from western country
instead to the provide filter coffee.
Now, large retail chains like star bucks, Barista, and Café Coffee Day have opened up
around the country. The owners of the coffee are tried to making a brand nation-wise and
international-wise but merely limited to selling coffee. The coffee shops contributing
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significantly in the hospitality industry and also it has potential for growth in domestically
and international market.
Let us focus only on two major players in the Indian coffee outlet market.
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Chapter- 2
●Research methodology
●Review of literature
●Limitations
RESEARCH METHODOLOGY
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The study is basically a research to give an insight on “Comparative study of café coffee day
and barista in Gwalior”. This study includes knowledge and experience derived from site or
surveys. The source of data collection is follows:
PRIMARY: -
Questionnaire: -
The Project is purely based upon the data collected from the students with respect to
questionnaires given to them.
SECONDARY: -
Internet: -
Various internet websites and links are used to collect the data.
Books: -
Various books were used to collect the data.
Journals: -
Various journals of scholars are used as a secondary source.
The data was collected based on information provided by:
1.The management of the organization.
2.Customers visiting Barista and Café Coffee Day outlets.
Based on the relevant primary and secondary data, a comparative analysis has been done so
as to find out the areas of excellence and areas of improvement of both organizations.
The areas of excellence and improvement have been identified based on factual information,
in light of which recommendations and suggestions have been provided for the overall
improvement of the organizations in the future.
This project was conducted in Gwalior, India; so, the information is relative to this city.
LITERATURE REVIEW
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❖ Historical facts
The story of Coffee's started in one of the highly rich and prosperous countries of Ethiopia, and is
the only country which is regular producing the fragile Coffea arabica plant. Despite the fact that
they are classified espresso beans, the plant is not a known as vegetable. The products of the
espresso trees are looking very similar to like cherries, when they are first taken and chosen. The
seeds inside are separated and dried before the way toward simmering transforms them into the
hard, nutty beans knobs gets feed to processors.
The Oromo individuals from this local are thought to have the first to visualize the invigorating
impacts of these beans but espresso despite everything stays a significant component of their
customary cooking. Precisely how and when it spread past Ethiopia is as yet the subject of
numerous legends, yet the accessible noteworthy records propose that the Sufis of Yemen were
the main genuinely dedicated consumers outside Africa in the Middle Ages – where it was
personally associated with their spiritualist customs.
Never was a strict service performed without espresso being smashed, composes the food essayist
and social anthropologist Claudia Roden. Its caffeine helped them to proceed with their practices
late into the night, while the broiling of the bean was obviously taken as a relationship for the
amazing quality of the human spirit.
Cafés before long spread over the Middle East and the Ottoman Empire, where they grabbed the
eye of Western brokers, who returned the flabbergasting drink to their nations of origin in the
seventeenth Century.
The early consumers were firm devotees to its therapeutic properties. Roden cites one paper advert
in 1657 that portrayed the beverage as "having numerous magnificent ethics, shuts the hole of the
stomack, braces the heart inside, helpeth dijestion, quickneth the spirits… "
https://www.bbc.com/future/bespoke/made-on-earth/how-the-world-came-to-run-on-coffee/
❖ Some proven positive beneficial aspects of coffee as beverage
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These perceptions have been brought into the world out by late examinations, which recommend
that espresso can offer some security from certain basic ailments. An ongoing survey of the proof
by Susanna Larsson at the Karolinska Institute in Sweden found that some espresso every day is
related with a 6% decrease in the danger of type 2 diabetes. Laura Van Dongen at Wageningen
University in the Netherlands, in the mean time, has discovered that ordinary espresso consumers
were at any rate 20% less inclined to pass on from coronary illness.
Other than giving this supposedly life-improving beverage, the early European cafés likewise
became mainstream meeting places for businesspeople – and some even birthed the budgetary
organizations we despite everything go to today. The insurance agency Lloyds of London, for
example, rose up out of the Lloyds Coffee Shop in the eighteenth Century, where mariners and
traders would meet to talk about their issues.
European pioneers would likewise come to acquaint the plant with their settlements in Asia and
South America: Portugal carried espresso to Brazil, France to Vietnam, and Spain to Colombia.
The offer of espresso was personally connected with the slave exchange, which was not abrogated
until the 1850s in Colombia and the 1880s in Brazil.
Espresso despite everything stays fundamental for these nations' economies, and Brazil, Vietnam
and Colombia are today the three greatest makers of the crude espresso bean, while the United
States, Germany and France are the greatest merchants.
❖ Sustainability is crucial issue for the coffee industry
NCDT research recommend that while customers state they need economical items, they don't
generally have an away from of what "feasible" signifies for espresso.
Buyer disarray is reasonable. While 'supportability' when concentrated on the natural conditions
at beginning, the idea has advanced to incorporate issues like bundling, squander the executives,
and supporting espresso networks at cause.
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Cooperation over the gracefully chain will help push coffee retail industry forward, towards
progressively viable arrangements that advantage everybody.
For example, square chain innovation guarantees new degrees of discernibility and responsibility
in the gracefully chain. What's more, we're seeing headways in hereditary exploration to secure
harvests at beginning against difficulties originating from environmental change.
In the case of working at starting point or inside their own offices, it is progressively significant
for organizations to share their maintainability stories, so purchasers can settle on decisions that
mirror their qualities.
❖ Single-Serve Grows Up
In the wake of drawing in standard consideration in 2006, burn serve espresso frameworks
delighted in a time of continued galactic development.
While class development has leveled of, this portion stays all around dug in as the second-most
well-known fermenting technique after dribble. Presently it's simply hanging tight for the
following development.
https://nationalcoffee.blog/2019/01/30/coffee-at-a-crossroad-3-industry-trends-to-watch-in-2019/
What customer wants from any outlet?
Zero Repeats: When customer faces any issue they just want to tell whole story only one
time and not again and again and to different forum of customer grievances redressals.
They would prefer not to choose the outlet again instead to tell the issue again to some other
specialist. Moreover, if the client submits a question online with a chatbot, a specialist who
takes over ought to pose inquiries about the objection, not requesting that the client rehash
the story. As the customer is a king! Like once an order is issued, different servants are not
an option. As indicated by the study, 71% want a predictable encounter over any channel,
yet just 29% get it.
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Customized Service: This means as a human being we all seeks and wants attention and so
do customers. They not come to enjoy taste of coffee but also personal attention from service
provider. Due to this, they seeks quick reaction to their inquiries or objections on priority
basis. Almost Sixty-one percent of the individuals during study found that they were dealt
with like numbers for the service providers instead of individuals.
This must be stop. The review found that for 59% of clients better to treat as an individual
was a higher priority than solving the issue and for almost 53%, how their issues are getting
solved is of more preferred.
The numbers are close, however the fact of the matter is that clients need to be dealt with
like individuals, not account numbers. Furthermore, on the off chance that you can convey
both speed and personalization, you have a triumphant blend.
Avoid the IVR: The Interactive Voice Response frameworks that many organizations uses,
now a days, are contributing significantly in the dissatisfaction for customers. In a study, it
is found that almost ninety-eight percent of customer confirms that they have attempted to
avoid interaction over the IVR. Also customers who needs to interact with the IVR agrees
that they avoid it by either going straight to seek help of the agent or live individual.
Accountability: Seventy-six percent of clients gets answers which are contradictory in
nature from various help operators when posing similar inquiries. This is a genuine issue to
the customer like what to do in difficult situation. It creates uncertainty in the minds of
customer and hence customer moves to another service provider. It's is noted that generally
clients gets irritated from customer representative’s suggestion and they simply hang up the
phone, get back to and present a similar inquiry to an alternate customer redressal forum.
There is a familiar and known fact that craziness is doing likewise over and over and
anticipating different outcome. It is the poor habit of customer and this sort of
nonsensicalness and irregularity exists which consumes organizational resources.
A portion of those perusing these details might be concerned. Are client desires being met?
All things considered, there is uplifting news for those that can meet the clients' ever-
expanding desires, and that will be that clients are eager to pay for good assistance. We can
conclude that great help doesn't cost but it pays.
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Satisfied Clients Return and Pay More: Customers reward the organizations they
appreciate working with by returning – and paying more. The study showed that 68% would
pay more to the organization that offers extraordinary assistance. Thirty-three percent would
pay 9% more. Twenty-seven percent would pay 10-20% more. What's more, 8% would pay
over 20% more if the administration was extraordinary.
Client helps in promotion: there is a general trend amongst customer that they do oral
promotion of the products and services of organization. Almost 80% of clients will
recommend an organization to loved ones after an extraordinary client experience. Further,
40% of happy clients will share their story via web-based networking media such as
Instagram and Facebook. There are outcomes to pay if the experience is not exactly heavenly.
A study shows that almost equals to Sixty-seven percent have confirmed, they would
"effectively discourage" others from utilizing an organization that offered helpless assistance
and 42% would share that negative story online.
(SOURCE:Forbes magazine article)
https://www.forbes.com/sites/shephyken/2018/08/05/what-customers-want-and-expect/#5d04e0f37701
Production process of coffee:
The coffee berry goes through various stages while it's being processed. These are:
• Harvesting
• Wet processing (washing, fermenting and drying)
• Dry processing (laid out on mats within the sun)
• Sorting
• Grading
• Grinding
• Packaging.
Coffee producing countries
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Coffee may be a natural product grown in many countries of the tropical and sub-tropical belt in
South and Central America, Africa and Asia. it's grown at different altitudes in several basic
climates and in several soils and is viewed as a world drink consumed throughout the planet.
Brazil is considered as world’s largest producer of coffee, Columbia is on second number , the
Ivory Coast third and Indonesia fourth..
The blend
Companies who sell coffee have their own blending experts whose task it's to make sure that the
standard and taste of their particular coffee brand is consistent, despite the very fact that the
imported beans will vary from shipment to shipment. Samples of green coffee beans are taken
from bags within the producing countries and therefore the port of arrival. The samples are sent
to prospective buyers whose experts roast, brew and taste samples to check their quality before
choosing the sort of blend that the actual coffee is suitable.
The roasting
Most of the well known brands of coffee sold in different types of shops are, a mix of two or
multiple batches of beans. Because they don’t need no smell or taste, green beans need to be
roasted so as to release the coffee aroma and flavour. The roasting process should provides a
uniform colour. The outputs from different roastings are wont to form different blends.
The common degrees of roasting are:
Medium Roastings:
provides a stronger flavour and are often favoured for coffees with welldefined character.
Full Roastings:
popular in many Latin countries, they need a bitter flavour.
High Roasted coffee:
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accentuates the strong bitter aspects of coffee, although much of the first flavour is vanished in
Commercial coffee roasters can convert the beans into instant (soluble) coffee and prepare them
purchasable as roasted or ground beans. the upper the roast, the less acidity and therefore the
more bitterness there's within the coffee.Certain coffees even have flavourings added, either
within the blend or during the method of creating.
The grind
Simmered espresso must be ground before it very well may be utilized to make the blend.
Espresso is ground to various evaluations of fineness to suit a wide range of strategies for
blending. The most appropriate toils for some normal techniques for preparing espresso are:
Method Grinding grade
Cafetière Medium
Espresso Very fine
Filter/Drip Fine to medium
Jug Coarse
Percolator Medium
Turkish Pulverised
Vacuum infusion Medium fine to fine
Capacity some tips for putting away espresso:
• Store in a very much ventilated storeroom.
• Use a water/air proof holder for ground espresso to guarantee that the oils don't vanish,
causing loss of flavor and quality.
• Keep espresso away from overabundance dampness.
• Do not store close to any solid smelling nourishments or different substances, as espresso
will ingest their scents.
Making espresso
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• Methods of preparing can differ, extending from moment espresso fermented by the cup,
through to 1½–3 liter (3–6 pints) units and up to machines that may create huge amounts
for capacities.
• Espresso beans might be bought and afterward ground as indicated by necessities.
• The beans ought not be ground until preceding they are required as this will guarantee the
greatest flavor and quality from the oils inside the espresso bean.
• If ground espresso is bought it typically comes in vacuum-stuffed parcels so as to keep up
its characteristics until use.
• These bundles contain set amounts to make 4.5 liters (1 gallon) and 9 liters (2 gallons,
etc.
• When making espresso in mass 283.5–340 g (10–12 oz) of ground espresso is adequate to
make 4.5 liters (1 gallon) of dark espresso.
• Assuming that cups with a limit of 1⁄3 16 ounces will be utilized then 283.5–340 g (10–
12 oz) of ground espresso is adequate to give 24 cups of dark espresso or 48 cups if
serving half espresso and half milk.
• When breakfast cups are utilized then 16 cups of dark espresso or 32 cups of half
espresso and half milk will be accessible. At a supper where demi-tasse cups are utilized,
limit is 48 cups of dark espresso or 96 cups half dark espresso and half milk.
• The guidelines to be seen when making espresso in mass are as per the following:
• Use newly cooked and ground espresso.
• Buy the right granulate for the sort of machine being used.
• Ensure all gear is perfect before use.
• Use a set proportion of espresso to water: 283.5–340 g for each 4.5 liters (10–12 oz per
gallon).
• Add bubbling water to the espresso and permit to implant.
• The implantation time must be controlled by the kind of espresso being utilized and the
technique for making.
• Control the temperature since to bubble espresso is to ruin espresso (it will build up an
unpleasant taste).
• Strain and serve.
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• Offer milk (hot or cold) or cream independently and sugar and choices.
• The best serving temperatures are 82 °C (180 °F) for espresso and 68 °C (155 °F) for
milk.
Attributes of good espresso
• Espresso ought to have:
• Good flavor
• Good smell
• Good shading when milk or cream are included – not dim
• Good body.
• Explanations behind terrible quality espresso
• Water not new.
• Water has not arrived at breaking point.
• Insufficient or an excess of espresso utilized.
• Infusion time excessively short or excessively long or at wrong temperature.
• Coffee not roasted correctly.
• Stale or old coffee used.
(SOURCE: Food and Beverage Service, 9th Edition John Cousins Dennis LiLLi Crap Pg no. 148-153)
❖ BARISTA
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Overview
• Second largest coffee chain in India
• available in United Arab Emirates, Sri Lanka, Nepal, Bangladesh, Myanmar
• It is almost crossing to 180 stores including 21 outside India
• Major Focus on high streets, malls and multinational offices
• Targeting 750 stores by FY2020
BARISTA
is globally recognized brand chain of espresso bars and cafes which functions in the Indian
subcontinent. Its headquarter is in New Delhi and it maintains numerous outlets across India and
other developing and developed countries and considered as oldest coffee chain throughout India
whereas it secured second most recognized coffee chain having 190 outlets (2014) it is also seen
that it sells numerous consumer products by grocery stores and different outlets. Barista was
established in February 2000 under Barista coffee company ltd. By the name barista.
Baristas by and large work a business coffee machine, and their job is planning and pulling
the shot; how much this is robotized or done physically changes fundamentally, going from
press button activity to an included manual procedure.
Coffee is a famously finicky drink, and great manual coffee making is viewed as a gifted
errand. Further, planning of different refreshments, especially milk-based beverages, for
example, cappuccinos and lattes, yet additionally non-coffee espresso, for example, trickle
or press pot, requires extra work and aptitude for powerful foaming, pouring and regularly
latte craftsmanship.
The barista ordinarily has been prepared to work the machine and to set up the espresso
dependent on the rules of the roaster or retailer, while progressively experienced baristas may
have carefulness to shift planning or examination. To make the espresso well, there is a
progression of steps requiring consideration, including granulating the beans, removing the
espresso, foaming the milk and pouring.
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Past the arrangement of coffee and different refreshments and general client care, gifted baristas
gain information on the whole procedure of espresso to adequately set up an ideal mug of
espresso, including support and programming of the machine, pounding strategies, cooking, and
espresso plant development, like how a sommelier knows about the whole procedure of wine
making and utilization. A barista can procure these abilities by going to instructional courses,
however they are all the more usually learned at work.
(SOURCE: http://barista.co.in/about-us/)
❖ CAFÉ COFFEE DAY
CAFÉ CAFFEE DAY
is originally an Indian café chain. It’s a part of coffee day enterprises ltd. Coffee day serves
around 1.6 billion cups of coffee yearly in six countries.
Internationally, CCDs outlets are present in Austria, Nepal, Egypt etc.
Café coffee day is a part of coffee day global limited and considered as India’s favorite
hangout for conversations and coffee. It is well known as CCD, and they strive to provide
memorable experience to their guests.
Their coffees are sourced and gathered from different thousands of coffee planters, they
made CCD what it is today. CCD opened its first café in 1996 at brigade road in Bangalore.
The young generation had immediately joined the café and CCD as it continues to be one
of the most happening and exciting places in the city for spending their time. CCD is
nowadays become more of hangout spot where they gather or meet and spend their time with
each other have lot of fun over piping hot cups of great coffee. For CCD it is an exciting
journey since then to becoming the humanness retail chain in the country.
❖ Coffee Business: market Analysis
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Fast urbanization of the mega cities combined with the need for pick me-up refreshments
to manage current ways of living is perhaps getting to help the market interest for coffee
over the figure time-frame. this is often bolstered by the increase of various bistros and
expanded nonessential salary dimensions of consumers. Changing taste preferences of
consumers and therefore the dispatch of latest trending coffee brews are expected to
support the market valuation hugely. Fluctuating costs of coffee beans can hinder the
expansion of the worldwide coffee market. In any case, the assembly of natural cafe and
other similar beverages is perhaps getting to help the market keep up its position within the
forecast period. Throughout the globe coffee market is expected to succeed in the total
valuation of United States Dollar amounting 102,279.2 million by growing at a CAGR of
4.32% during the foreseen forecast period (2018- 2023).
(SOURCE: Director responsibility statement cafe coffee day)
https://coffeeday.com/PDF/CoffeeDayAR2018-19Final_compressed)
❖ COFFEE SHOP FRANCHISE OPPORTUNITIES IN GWALIOR
The city of Gwalior is a gift as a market to the administration segment, especially the food and
refreshment industry. The city of business sectors which is well known for earthenware’s, has
been where food culture is so rich.
Individuals love to go out and appreciate discussions over great food/drinks at whatever point
they get time. Chocolate and coffee-based beverages have been progressively picking up
acknowledgment among the individuals of Gwalior, and more individuals are eager to claim
coffee outlets to address the interest while maintaining a productive business.
That has constrained somehow to offer espresso bistro establishment openings in Gwalior.
As a kind and effective universal chain, any outlet comprehend that individuals need ease
independent venture openings, so CCD and Barista have ensured that the speculation is
negligible.
LIMITATION
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• Difficulties in collecting first hand data.
Many different sources such books website etc. are used in collecting the data and the
quality and reliability is subject of concern
• Small sample size: –
The research is based on a survey conducted of 80 people and hence the sample size is
small so the result may not stand true for a large sample size
• Lack of resources: –
There is a lack of resources from where I can get the information
• Small coverage: –
As the research is conducted only in Gwalior the result me not be true for other cities
and location.
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Chapter- 3
●OBJECTIVE
➢ To Comparative study of café coffee day and Barista in terms of customer
satisfaction.
➢ To identify and compare between both of the organization in terms of
growth prospectus.
➢ To know what are the hurdles (limitations) there customers are facing in a
Gwalior city.
HYPOTHESIS
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Following Are Some Hypothesis Research: -
⮚ CCD’s coffee & quality of service is better as compared to Barista
⮚ Barista is growing with faster pace in terms of profitability
⮚ Customers are facing problems in accessibility of these restaurants in Gwalior.
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Chapter- 4
● FINDING AND SUGGESTION
● CONCLUSION
● DATA ANALYSIS
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FINDING AND SUGGESTIONS
For findings of relevant data towards analyzing profitability comparison case studies has done on
both CCD and Barista
CASE STUDY ON BARISTA
Background, Market Entry & Growth:
Barista coffee was established in 1999 with the aim of
identifying growth opportunities in the coffee business.
Increasing disposable incomes and global trends in coffee
indicate immense growth potential in one particular segment.
More significantly, they believe they have been quick to spot
a latent need waiting to be trapped: Coffee lovers seek a
complete experience. One that combines intelligent
positioning with the right product mix and carefully designed
cafés. In other words, customers seek an “experiential lifestyle
brand”.
As of today, Barista exists in over 22 cities, and operates over
140 outlets nationally. In the last 2 years, Barista has opened over 100 outlets in the country
and with a new outlet opening nationally every 14 dates, Barista is currently experiencing
phenomenal growth. With outlets opening in Sri Lanka and Dubai, Barista is looking at
potential growth opportunities in Asia, making it highly competitive international brand.
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Product Sources:
Barista sources its coffee beans from around the world, but a major supplier is TATA Coffee,
part of the TATA Group that owns a large stake- holding in Barista. These coffee
beans are then sent to Venice, Italy where they are roasted into a blend exclusively for Barista.
The food and desserts at Barista is exclusively catered to by the Taj, who ensures a high
standard of quality with all its products. Barista also sells merchandise through its store, all of
which is imported. The merchandise accounts for nearly 1/6th of Barista’s overall sales.
Serving Size:
The serving size of a product is a measure, not only of quantity, but also of value for
money. The average serving size for Barista’s main product categories is detailed in Table
given below:
Product Serving Size
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Hot Coffee
(2 kinds) 240 ml/ 300 ml
Cold Coffee 340 ml
Smoothies 300 ml
Granitas 340 ml
Pricing:
Barista has a ‘Skim Pricing Policy’. They began with a higher price, and skimmed the cream
for the market. With the sudden spurt of growth in number of outlets, came the benefits of
economies of scale. Because of this, they have been able to gradually lower their prices,
and appeal to different segments of their target market.
Considering that Barista is trying to target a market whose age range is between 18 and 60
years, a pricing policy appealing to this segment is difficult. Extremely low prices act as a
deterrent to some customers who might regard it as an indicator or quality, while very high
prices cannot be afforded by most of the youth. But since Barista’s current consumer profile
is quite young, their prices are mostly inexpensive, and at par with their competitors.
Currently, their prices are the lowest they have ever been, and they can competitively match
their prices against Café Coffee Day’s prices. The prices are constantly changing though, and
the last 1-year has seen 3 changes (mostly reductions) in prices. This gradual price reduction
meant that Barista could maintain its profit- maximization policy until it could earn large cost
savings because of the benefits of high volume.
The main factors that affect their pricing are their cost of goods sold. The costs are quite high
because imports a majority of its products and product- sources.
MERCHANDISING PROCESS:
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The order and delivery process at Barista is based on self- service, where a customer goes up
to the counter to place his order, and goes back to the counter to pick his delivery once it is
prepared.
Brand Image:
Barista positions itself as a brand for anyone who loves coffee. Their products, services and
outlets are more like the traditional European cafés, where people would meet for the love of
coffee, and for an intellectual appealing time. They position their outlets as a place “where the
world meets”, and they look to appeal to anyone in the 14- 60 age group that loves good coffee
and looks for a nice quiet time.
People:
The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They
ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of
life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid-
back feeling of the café.
Promotions:
Barista currently carries out mass promotion campaigns. This is mainly in the form of
promotions in the Press, TV and Radio Medias. At present, they do not rely heavily on
advertising, but rely more on sponsorships and strategic alliances with other corporations.
Barista also takes part in various sales promotion activities to help increase sales at their
outlets.
Sponsorships:
Barista sponsors various events and festivals, which provides them valuable
promotion directed at strategic markets. The sponsorships are mainly in kind,
although major events are sponsored in cash also.
Collaborations:
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Barista has entered into special collaborations and alliances with various partners for co-
marketing brands. For example, Barista entered into a deal with Leo Mattel toys to provide the
popular board game Scrabble at every Barista outlet across the country. Barista has also
entered into partnerships with various movies, for promotions through Barista, and recently,
they tied up with Star World for its “Absolutely Everybody” campaign.
Sales Promotion:
Barista uses a special “Barista Coffee Card” for its sales promotion activities. The Barista
Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven.
It is available to all Barista coffee regulars. No membership fees, no references required. Fill
out the card and you are a member. As a Coffee Card holder, you earn one stamp on the card
every time you purchase a beverage. Simply present the card to the cashier when you place
your order at any of their outlets. Once you have collected seven stamps, you can hand over
the card to receive your complimentary hot beverage. Barista hopes this card can help drive
sales growth, and increase customer retention.
Distribution:
Distribution of outlets
Every Barista outlet is owned by the company, and not franchised out to anyone. Barista can thus
control and make quick changes to its entire retail chain. Barista currently operates in over 120
outlets all over the country, and at their current rate, they are opening a new outlet approximately
every 10 days. They have a market presence in over 20 cities. Mumbai alone has over 30 outlets,
and the number of outlets in the city is increasing at a phenomenal pace. Barista has a thumb rule
for selecting cities and locations for the distribution of outlets.
Location: this is a prime factor in determining the success of a retail chain. However, Barista
Coffee has adopted a top down approach, wherein they first identify the cities and then decide
on precise locations within its limits
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CASE STUDY ON CAFÉ COFFEE DAY
Background, Market Entry &
Growth:
It was in the golden soil of
Chikmagalur that a traditional family
owned a few acres of coffee estates,
which yielded rich coffee beans. Soon
Amalgamated Bean Coffee Trading
Company Limited, popularly known as
Coffee Day was formed. With a rich
coffee growing tradition since 1875
behind it coupled with the opportunity
that arose with the deregulation of the
coffee board in the early nineties, Coffee Day began exporting coffee to the connoisseurs
across USA, Europe & Japan. In the calendar year 2000, Coffee Day exported more than
27000 tonnes of coffee valued at US$ 60 m to these countries and, for the second time in its
short career of 7 years retained the position as the largest coffee exporter of India.
Coffee Day has a wide and professional network in the major coffee growing areas of the
country comprising over 48 agents and 50 collecting depots. Coffee Day's two curing works
at Chikmagalur and Hassan cure over 70,000 tonnes of coffee per annum, the largest in the
country.
Coffee Day has a well-equipped roasting unit catering to the specific requirement of the
consumers. The process is carried out under the control of experienced personnel to meet
highest quality standards. The most modern technology available is used to maintain
consistency and roast the coffee beans to the demanding specifications of the discerning coffee
consumers.
Coffee Day Comprises of the following Sub Brands
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Coffee Day - Fresh & Ground
Café Coffee Day
Coffee Day – Vending
Coffee Day - Xpress
Coffee Day – Exports
Coffee Day - Perfect
Café Coffee Day currently owns and operates 213 cafes in all major cities in India. It is a
part of India's largest coffee conglomerate named Coffee Day, Rs. 200 crore ISO 9002
certified company. Coffee Day's most unique aspect is that it grows the coffee it serves.
Key Features
Pioneers of the Café Concept in India with the its first Café at Brigade Road, Bangalore in
1996. This Café was opened as a Cyber Café (first of its kind) but later, with the burst of
cyber cafes it reverted to its core competency…. Coffee.
Essentially a youth oriented brand with majority of its customers falling in the 15-29 year
age bracket
Each café, depending upon its size attracts between 400 and 800 customers daily.
It is a place where customers come to rejuvenate themselves and be themselves.
USP of the Brand:
¾ Affordable Price
¾ Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the India
Barista Championship 200
Product Sources:
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Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Coffee
Day has a well-equipped roasting unit catering to the specific requirement of the
consumers. The process is carried out under the control of experienced personnel to meet
highest quality standards. The most modern technology available is used to maintain
consistency and roast the coffee beans to the demanding specifications of the discerning
coffee consumers. The coffee beans are supplied to all the cafés from Chikmagalur.
The eatables at Café Coffee Day are catered by different vendors: example: ice creams
are catered by Cream Bell, Milk by Amul and samosa’s by Pâtissiers Gallery.
Café Coffee Day also sells merchandise through its stores. 5 per cent of the revenue
comes from sale of merchandise.
Serving Size:
The serving size of a product is a measure, not only of quantity, but also of value for money.
The average serving size for Café Coffee Day’s main product categories is detailed in table:
Product Serving Size
Hot Coffee 210 ml
Cold Coffee 350 ml
Smoothies 350 ml
Granitas 350 ml
MERCHANDISING
At Café Coffee Day merchandise started more as a sentimental thing than as a revenue
stream. They wanted to reward coffee lovers and they started selling mugs. People wanted
to wear something that reminded them of the cafe so they designed T-shirts and sold
thousands of those.
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But soon it has become a serious business. 5 per cent of their revenue comes from the
merchandising.
Café Coffee Day sells various young and trendy merchandise through its stores:
Caps
T-Shirts
Bags
Mugs
Coffee Filters
Coffee Powders
Coffee Mints
Pens
MERCHANDISING PROCESS:
The order process at Café Coffee Day is based on self-service, where the customer goes to the
counter to place his order. Whereas they have a flexible delivery process, where they wait for some
time for the customer to pick up the order but if the customer takes too long then the order is
delivered on his table.
Brand Image
Café Coffee Day is a regular meeting place for 15 to 29 years old, both male and female, who are
waited on by friendly and informed staff, and are offered the best made coffee, hot or cold,
beverages and food in aninvigorating ambience. It is urban youngsters favorite “hangout”. Its
customers are mostly young college students and young professionals. It is for those who are young
or young at heart.
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Products:
Café Coffee Day product mix constitutes a wide range of products that appeal primarily to Indian
coffee and snack lovers. products have a decided Indian taste to it - be it food or coffee. Most of
the eatables have been adopted to meet the Indian taste buds like samosa, biryani, masala sandwich,
tikka sandwich etc. have been The best selling item in summer is frappe, which is coffee and ice
cream blended together. The young people favor it. In winter it is cappuccino. Their merchandising
includes funky stuff like t-shirts, caps etc
.
Prices:
Considering that Café Coffee Day knows its major customer lies in the bracket of 15- 29, it has
tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges
from Rs.17 to Rs.54. From the time it first started its operations, there has been only minor changes
in the pricing policy of Café Coffee Day. The changes have been more due to the government
taxes
People:
People at Café Coffee Day believe that “People are hired for what they know but fired for
how they behave”. Motivation and personal skill are laid emphasize upon.
Décor & Architecture:
Café Coffee Day had gone in for image change and revamping of interiors in the last quarter
of 2001. Café interiors have been given a whole, new look. In a change from the largely wood
and granite based interiors, there is more of steel and lots more color now. The young colors
of today lime green, yellow, orange, and purple predominate.
Locations:
Café Coffee Day looks to cater to their target market with strategically located outlets. Their
outlets are generally located in High Street/ Family Entertainment Centers. Considering their
generic appeal, there are Barista outlets located in and around Malls, Cinemas, Colleges,
Offices, etc. This endorses their brand image of a café that appeals to coffee lovers of all ages.
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Promotion:
Café Coffee Day does not believe in mass media promotions. But they are involved in all the
areas of serious consumer passion.
Through television:
Café Coffee Day held a contest around a very popular programme on Zee English called
Friends. All the six lead characters are shown often visiting a coffee shop and a lot of youth
like watching the programmed. That is why they had a contest running where customers could
win Friends' merchandise. The linkage was that it is a youth based programme and it had a
coffee house.
They have tied up with Channel [V]'s Get Gorgeous contest. The reason being that a lot of
their young consumers are interested in careers. Modeling is a career that a lot of youngsters
are interested in and this was an excellent platform. They have also done promotion for
History Channel, where they have run promotion for Hollywood Heroes. They had asked a
few question and a lucky winner won a trip to Hollywood.
Ticket sales:
Café Coffee Day is involved in ticket sales in quite a few events, Enrique being one of them.
They were involved in WWE, Elton John, and Bryan Adams ticket sales. These acts are
very much appreciated by their consumers.
It helps both the organizers as well as Café Coffee Day. Organizers need to tell people where
the tickets are available and single Café Coffee Day logo says it all. From Café Coffee Day’s
point of view, they always ask for a certain amount of tickets around which they have a
contest. Couples can win ticket for free. This in turn raises the awareness level as cafe staff
approaches the consumers to inform them about the contest.
Tie-ups:
Besides that Café Coffee Day also tie up lot of the youth brands. Their promise to the
customer is that a lot can happen over a coffee. So every time they try to ensure something
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good happens to their customer. So they have a contest going on with Levis, another one
with Scooty, Liril, latest one with Airtel Friends.
Another placement area they have is with HDFC. HDFC wanted to promote their debit card
and they choose Café Coffee Day. So 21 cafes have debit card machines.
Association with movies:
Café Coffee Day also decided to stick with the next big thing i.e. Bollywood. Earlier a
few movies, whose target audience matched that of the consumers at Cafe Coffee Day,
started shooting a few scenes in the cafe. So they had a Hindi movie Bas Yun Hi and a
couple of Telugu and Tamil films with prominent Cafe Coffee Day brand placement Later
they took a conscious decision of being seen in certain movies like Khakee and Main
Hoon Na.
As part of this effort, the brand was placed smartly in two Bollywood ventures, the Amitabh
Bachchan, Aishwarya Rai, Vivek Oberoi starrer Kyun Ho Gaya Na, Sajid Nadiadwala's
Salman Khan, Priyanka Chopra starrer Mujhse Shaadi Karoge, forthcoming movies like
Salman Khan starrer Lucky and Socha Na Tha.
A lot of serials are shot in Cafe Coffee Day. Recently, Kahaani Ghar Ghar Kii shot
Sales Promotions:
Café Coffee Day uses special ‘Café Citizen Card’ for rewarding Café Coffee Day’s
customers. It is a loyalty program to gain new customers and retain the existing ones.
The Café Citizens Card entitles members to a 10% discount on all food and beverage bills.
The members also receive surprise gifts, along with special offers and invitations from Café
Coffee Day from time- to- time.
Distribution:
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Distribution of outlets:
Every Café Coffee Day outlet is a part of India’s largest coffee conglomerate named
Coffee Day. Since all the cafes are owned by the company, it becomes easier for them
conduct feedback surveys like dipsticks etc. Coffee day’s most unique aspect is that it
grows the coffee it serves in its cafes.
Pioneers of the Café Concept in India with the its first Café at Brigade Road, Bangalore
in 1996.
Café Coffee Day currently operates 213 outlets all over the country. They have a market
presence in over 49 cities. Delhi, NCR alone has 24 outlets, and the number of outlets in
the area is increasing at a phenomenal pace. Each café, depending upon its size attracts
between 400 and 800 customers daily.
Location:
This is a prime factor in determining the success of a retail chain. Café Coffee Day is
focusing mainly in malls and main market
SUGGESTIONS
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Areas Needing Improvement
Both Barista and Café Coffee Day have underperformed or not lived up to potential in
certain areas. The areas are weaknesses, which need to be improved upon, as that both can
eliminate any disadvantage that may have, and improve customer satisfaction. The mail
areas needing improvement, based on the Case Studies & Market Survey, have been
identified as follows:
Barista
• Average taste & quality of products:
According to the market survey, other than their Dessert, Barista got only an average rating
for the taste & quality of their products. Considering their strong brand image of being the
coffee- lover’s traditional café, they have not performed up to expectations in this area.
• Perceived as an expensive brand:
Customer perceptions of Barista’s prices and value for money are quite negative. Even
though the prices of Barista and Café Coffee Day are almost identical, Barista is still
perceived as the more expensive brand.
• Inconvenient delivery process:
In a smaller note, Barista’s self- service delivery process received almost unanimous
complaints from respondents of the market survey. They found it inconvenient to go back to
the counter just to receive their order.
Café Coffee Day
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• Weak brand image:
The Café Coffee Day brand, although clearly a youth- oriented brand, lacks the power and
strength expected to maintain brand loyalty. The brand doesn’t project a clear image to
customers about what Café Coffee Day is all about. This could prove as a deterrent during
future national and international expansion.
• Inefficient human resources:
According to the market survey, Café Coffee Day’s staff received only an average rating
for their behavior and service. Café Coffee Day needs to work hard at this aspect,
especially considering they are a service sector organization that is looking at large
expansion.
• Ambience & Décor:
The Ambience & Décor of Café Coffee Day outlets received a below- average rating from
respondents of the market survey. A lot of respondents did not like the fact that Café
Coffee Day outlets and literature served as prime space for a lot of advertising and
promotions.
CONCLUSION
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This research primary motive is to comparative study of Café Coffee Day and Barista in terms of
customer satisfaction and to identify and compare between both of the organization in terms of
growth prospectus as per customers perception and also to identify what are the hurdles
(limitations) customers are facing in Gwalior, MP as compared to any other city.
These are the primary questions to be answered by this research. We can derive at a result that
as of now currently Gwalior city residents have not entirely shifted from CCD to barista as
CCD is a well - established brand in India since 1996 and barista has entered India in the year
2000 only. As far as the location of barista, it has not expanded around Gwalior. So, people in
the age group of 21-30 (who formed the major portion of our respondents) are still preferring
CCD over barista because of economically cheaper prices and better services, though they
might have tasted and visited barista as well and found satisfactory enough.
The number of total customers visited during the period under research are more of coffee lovers (i.e.
almost 50 percent) where as many people visited for tea (i.e. 33%) and some people have visited for
other reasons such as for enjoying ambience, for office meetings and informal gathering which also
accounts for 18% of the total customer visited. So, both the outlets should more focus on their taste of
coffee than any other thing because that’s customer preference.
On the basic of customer spending, we can conclude that more than 60% of the customers prefer to
spend more whereas 39% of the customer spent up to Rs. 300. So, both the outlets should focus more
on premium product because those accounts for more than half of total revenue but simultaneously
they should continue to offer products for lower spending group.
While continue with the survey, 53% of total surveyed confirm that they prefer Café Coffee Day’s
beverage over Barista, it means customer satisfaction is more in case of CCD, whereas 28% customers
are satisfied with Barista taste.
From a customer perspective, we can draw conclusion that 40% of consumer is satisfied with the quality
of service provided by Barista. More than half of total customers of the beverage is expecting that
Barista will perform better than CCD in five years of time.
However, 53% of total customers provides their assent that they are not satisfied with the number of
outlets present in the city. So, we can see that here both CCD and Barista is having great opportunity
of capitalized the location unavailability by opening some outlets, which will directly increases their
profitability and number of satisfied customer.
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I have asked to the customers like which is the single most important factor for choosing a coffee shop
amongst (a). Taste of Coffee (b). Service (c). Value of money (d). Ambience. The result of the above
question provides opportunity for both the outlets. Taste of coffee (39%), Service (21%), Value of
money (30%) and Ambience (10%). So on the basis of above data, we can conclude that only on the
basis of taste of coffee and good service, any outlet can perform better and satisfy customer.
Most preferable outlet for coffee is Coffee Café Day where as it is also found that Barista is almost
equal market segment and consider preferred after CCD.
Barista and CCD are totally different in respect with their target segment, pricing, strategies
adopted, etc. So, we cannot come to a conclusion with this time bound research with limited
80 respondents.
The factors which could be attributed to the fast growth of CCD, in the absence of much
advertisement and promotional measures were staff quality maintained through continuous
training, monitoring and human resource management practices, maintenance of consistent
product quality at an affordable price, introduction of innovative products and their admirable
service in good ambience. Its key focus on customer satisfaction and sound customer relations
management have helped them to attain a competitive advantage over others which would
continue to be their prime strategic initiative in both domestic and international markets.
The only major hurdle faced by people of Gwalior is location availability so they are supposed
to introduce more upcoming outlets in near future. Whereas, there are some minor issues as
well such as variety of choices is limited and online delivery is available only in limited area.
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1. I prefer as refreshing beverage.
2. In CCD or barista, I prefer to spend at least
Options Percentage
Less than RS. 100 11%
RS. 100-300 24%
RS.300-500 35%
More than RS.500 30%
Coffee
50%
Tea
32%
Others
18%
Q1. I prefer as refreshing beverage.
Option Percentage
Coffee 50%
Tea 33%
Others 18%
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3. The company recognizes you as a prestigious Guest and your visit is
always appreciated?
Options Percentage
Strongly disagree 14%
Disagree 16%
Moderate 30%
Agree 21%
Strongly agree 19%
Less than
RS. 100
21%
RS. 100-300
28%
RS.300-500
39%
More than
RS.500
12%
Q2. In CCD or barista I prefer to
spend per visit at least.
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4. I prefer CCD’s beverage taste as compared to barista.
Options Percentage
Strongly disagree 10%
disagree 17%
Moderate 20%
Agree 30%
Strongly agree 23%
Strongly
disagree
14%
disagree
16%
Moderate
30%
Agree
21%
Strongly
Agree
19%
Q3. The company recognizes you as a prestigious
Guest and your visit is always appreciated?
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5. Quality of services provided in Barista, Satisfactory?
Options Percentage
Strongly disagree 3%
disagree 15%
Moderate 11%
Agree 31%
Strongly agree 40%
Strongly
disagree
10%
disagree
17%
Moderate
20%
Agree
30%
Strongly
agree
23%
Q4. I prefer CCD’s beverage taste as
compared to barista.
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6. I see Barista performing better than CCD (in future)?
Options Percentage
Strongly disagree 9%
disagree 19%
Moderate 16%
Agree 33%
Strongly agree 24%
Strongly disagree 3%
disagree
15%
Moderate
11%
Agree
31%
Strongly agree 40%
Q5. Quality of services provided in Barista,
Satisfactory?
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7. CCD will offer more products than Barista?
Options Percentage
Strongly disagree 21%
disagree 30%
Moderate 23%
Agree 15%
Strongly agree 11%
Strongly
disagree
24%
disagree
32%
Moderate
16%
Agree
19%
Strongly agree
9%
Q6. I see Brista performing better
than CCD (in future)?
Strongly disagree
11%
disagree
15%
Moderate
23%
Agree
30%
Strongly agree
21%
Q7. CCD will offer more products than Barista?
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8. I am satisfied with number of outlets present in the city?
Options Percentage
Strongly disagree 24%
disagree 29%
Moderate 19%
Agree 16%
Strongly agree 13%
9. Single most important factor for me while choosing a coffee shop.
Option Percentage
Taste of coffee 39%
Service 21%
Value for money 30%
Ambience 10%
Strongly disagree
12%
disagree
16%
Moderate
19%
Agree
29%
Strongly agree
24%
Q8. I am satisfied with number of outlets
present in the city?
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10. I would you like to rate (overall) these coffee shops
Options Barista Café Coffee Day
Excellent 41% 58%
Good 34% 33%
Average 25% 10%
Taste of coffee
39%
Service
21%
Value for money
30%
Ambience
10%
Q9. Single most important factor for me
while choosing a coffee shop.
41%
34%
25%
58%
33%
10%
0%
10%
20%
30%
40%
50%
60%
70%
Excellent Good Average
Q10. I would you like to rate (overall) these
coffee shops?
Barista Café Coffee Day
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APPENDIX
BIBLIOGRAPHY
QUESTIONNAIRE
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BIBLIOGRAPHY
BOOK
❖ Lilli crap
NEWSPAPER
❖ Business today
❖ Economic times
MEDIA SOURCES
❖ BBC news articles
❖ Forbes magazine articles
WEBSITES
https://www.cafecoffeeday.com/about-us
http://barista.co.in/about-us/
https://www.bbc.com/future/bespoke/made-on-earth/how-the-world-came-to-run-on-coffee/
https://nationalcoffee.blog/2019/01/30/coffee-at-a-crossroad-3-industry-trends-to-watch-in-2019/
https://economictimes.indiatimes.com/markets/stocks/news/trending-stocks-coffee-day-enterprises-share-
price-down-5-/articleshow/75402192.cms
https://www.thehindu.com/business/vg-siddharthas-and-cafe-coffee-days-rise-through-the-
years/article28766451.ece
https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/barista-eyes-
doubling-india-store-count-to-500-in-3-years/66914093
https://www.forbes.com/sites/shephyken/2018/08/05/what-customers-want-and-expect/#5d04e0f37701
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QUESTIONNAIRE SURVEY
(Institute of Hotel Management Gwalior)
Privacy Statement
Please complete this survey as conducted by (Sahil Dixit). All information will be kept confidential.
Any concerns can be communicated to (dixitsahil99@gmail.com). Thank you for your time and
cooperation.
Answer the following questions by circling or Marking the most appropriate answer
Name __________________ Age ____________
E: mail ________________ Sex_____________
Frequency of visiting a coffee shop __________________
1. I prefer as refreshing beverage.
coffee Tea others
2. In CCD or barista I prefer to spend per visit at least.
Less than RS. 100 RS. 100-300 RS.300-500 More than RS.500
3. The company recognizes you as a prestigious Guest and your visit is always appreciated?
Strongly disagree 1 2 3 4 5 strongly agree
4. I prefer CCD’s beverage taste as compared to barista.
Strongly disagree 1 2 3 4 5 strongly agree
5. Quality of services provided in Barista, Satisfactory?
Strongly disagree 1 2 3 4 5 strongly agree
6. I see Barista performing better than CCD (after 5 years)
Strongly disagree 1 2 3 4 5 strongly agree
7. CCD will offer more products than Barista in upcoming days.
Strongly disagree 1 2 3 4 5 strongly agree
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8. I am satisfied with number of outlets present in the city.
Strongly disagree 1 2 3 4 5 strongly agree
9. Single most important factor for me while choosing a coffee shop.
Taste of coffee Service Value for money Ambience
10. I would you like to rate (overall experience)of these coffee shops?
a. Barista Excellent Good average
b. Café coffee
day
Excellent Good average