Café Coffee Day is India's largest coffee chain. It owns coffee plantations and serves coffee grown from its own farms. Café Coffee Day aims to provide an affordable yet world-class coffee experience. It has strategically located outlets near colleges, offices and other busy areas to target youth aged 15-29. Café Coffee Day pioneered the café culture in India and competes with international chains like Starbucks as well as domestic rivals like Barista. Through reasonable pricing, quality coffee, and a youthful atmosphere, Café Coffee Day has become the top coffee chain in India.
2. ABOUT THE INDUSTRY
• India’s annual consumption = 97000 tonnes
• Annual growth rate 5-6%
• Average per capita consumption 66 per gram
• Urban areas-73% Rural areas-27%
3. Corporate Profile
• Café Coffee Day (C.C.D.) is India’s largest coffee
conglomerate, the Amalgamated Bean Coffee Trading
Company Limited (ABCTCL). Popularly known as
Coffee Day was formed.
• Its origin lies in the golden soil of Chikmagalur that a
traditional family owned a few acres of coffee estates,
which yielded rich coffee beans.
• V.G.Siddhartha Hegde – Founder & Chairman of
Amalgamated Bean Coffee Trading Co.
• His family owns 10,500 acres of coffee plantation farms
in Karnataka.
• Venu Madhav – Head of Operations at C.C.D.
4. Mission and Vision
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.”
5. Competitors
Direct Competitors:
• Barista
• Cafe Mocha
• Costa Coffee
• Beyond Coffee
• Gloria Jeans
• Minerva Coffee Shop
Indirect Competitors:
• McDonald
• Haldirams
Global Competitors:
• Star Bucks
6. Divisions of Coffee Day
• Coffee Day - Fresh & Ground
• Café Coffee Day
• Coffee Day – Vending
• Coffee Day - Xpress
• Coffee Day – Exports
• Coffee Day – Perfect
• Café Coffee Day is the part of India’s largest coffee
conglomerate named Coffee Day, Rs.750 crore ISO
9002 certified company.
7. product
• Grows coffee that it serves it’s customer
• Eatables adopted to Indian taste buds like samosa,
biryani, masala sandwich, tikka sandwich etc. Indian
taste along with classic coffee.
• Merchandising includes funky stuff like t-shirts, caps etc.
8. PRICE
• Affordable prices
• Price of coffee cup ranges from 45- 80
Major customer -15- 29 yrs, Price ranges - 20 to 200.
Minor changes (majorly - government taxes)
9. place
• Prime factor for success- located at very places
where business can be generated.
• Caters to target market with strategically placed
outlet
For eg. Located near high street, colleges and gas
stations.
• Recently tied up with ginger hotels of taj group.
10. POSITIONING AND BRAND IMAGE
• Brought café culture into india
• For the youth:young customers , young and friendly
staff
• Target middle and upper middle class
• Age group 15-29
11. promotion
C.C.D. does not look at mass media as a viable area of
advertising.
• Television (Zee English called Friends, Channel [V]'s
Get Gorgeous).
• Tickets Sales (IPL).
• Movies (Main Hoon Na, Kyun Ho Gaya Na, etc).
• Sales Promotion (Offer coupons, Gifts vouchers, Café
Citizen Cards).
• Café Beat- an in-house magazine.
• Tie-up with World Space & Microsense to provide
satellite connectivity.
12. Physical Evidence
• Logo, Colours, Images
1. RED signifies leadership , vitality and passion . The GREEN
signifies coffee growing heritage and the coffee plantations that they
own. WHITE SWIRL signifies purity of purpose, invigorating
properties of growing coffee.
2. Café - larger than the text inside the logo box. Signifies that Café
Coffee Day pioneered the café concept in India way back in 1996.
C.C.D. would like to own the word “café” in the minds of its
customers.
• Décor & Architecture
• Literature
• Dress Code
New Logo
13. people
• People at C.C.D. believe that “People are hired for
what they know but fired for how they behave”.
• Motivation and personal skill are laid emphasis upon.
• Reward scheme like “employee of the month”
14. CONSUMER PROFILE
AGE GROUP: 20-24 (37%)
25-29(27%)
Frequency of visit: Daily-18%
Weekly-44%
Gender: Male-60%
Female-40%
Occupation: Students- 52%
15. SWOT Analysis
STRENGTHS
• Largest retail chain of cafes.
• ISO 9002 certified company.
• Quality and taste.
• Youth oriented brand (40 % population <
20).
• Reduction in cost (Own Production).
• USP of brand - Highly affordable brand.
WEAKNESS
• Weak brand image and lacks strength to
maintain brand loyalty.
• Poor ambience and decor. (Prime space -
advertising and promotions).
• Wrong site selection - Losses.
OPPORTUNITY
• Fastest growing industries in Asia.
• Preferred for informal meetings.
• Gone international
THREAT
• Competition with established and
International other coffee cafes like Barista,
Mochas, Gloria Jeans, Coffee Bean & Tea
Leaf and Illy Café.
• Hukka Parlours.
SWOT
16. Online Sales
Online Sales by C.C.D. is also one of the
revenue-earning sources. Products are displayed
on its website www.cafecoffeeday.com .
Customers may pay through VISA or Master
Card or PayPal.
17. Some Interesting Facts
1. All-Day Refresher, most selling
product of C.C.D. whose selling
cost is Rs. 100 has a prime cost of
just Rs. 20 & rest all is profit to
C.C.D.
2. C.C.D. does not use sugar as raw
material in any of its preparations
but uses milk cream & Sugar Free
as raw material.
3. Ice-creams & other eatables are
out-sourced from Amul & local
vendors of reputed brands.
4. It is unique in its distribution way
where coffee beans are cultivated
in its farms at Chikmagalur.
18. Recognition & Rewards
C.C.D. won 8 of 10 awards at India Barista Championship 2009.
The awards are:
1. Platinum Award.
2. Best Espresso.
3. Best Cappuccino – Felix Daniel Mathew, Manager Food &
Beverages, C.C.D., Bengaluru.
4. Most Promising Talent – Adwiti Tarkire (C.C.D., Trainer).
5. Silver Award – Sam Rozario (Asst. Manager, Level 1, C.C.D.,
Chennai).
6. Bronze Award.
7. Best Signature Beverage.
8. Best Barista Technique – Naveen Kumar CA(Trainee Area Manager).
Bags the ‘Best Coffee Bar’ title for the 3rd consecutive year.
Top honours at Coca Cola Golden Spoon Awards 2010.
19. Conclusion
1. C.C.D. is the fastest growing Café in the country.
2. The major competitor undoubtedly Barista.
3. That Café Coffee day is planning to go international.
4. The other major things regarding service marketing is
that customers give top priority to the quality of the
services / products and ambience.
5. It is providing tough competition to its competitors by
satisfying its customers with great café experience.
6. “A lot can happen over coffee” message has touched
the hearts of youngsters who are the largest
consumers of C.C.D.