Customer:-Price comparisonVariety of productsService providedSuppliers:-Food items obtained from local suppliersFollows backward integrationCoffee beans from its base in Bangalore Substitute:-Ice tea offered by Costa coffeeCoffee offered by other competitorsCold drinks served in stadium
Cafe Coffee Day
Service Industry Café Coffee DayPresented By:- Nandita Sadani - 48
Contents Corporate Profile Factors Based on there priority Mission and Vision Grading of factors as per Divisions there importance Competitors Café Coffee Day Rating Tangibility Spectrum Online Sales Services Blueprint H.R. activities 7Ps of Marketing Some interesting facts Porters Five forces Analysis Recognitions & Rewards SWOT Analysis Recommendations Distribution Strategy Conclusion Sites Referred
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.
Important Events YEAR EVENTSSince 1875 Rich coffee – growing tradition startedEarly 1990s Opportunity arose with the deregulation of the coffee board in Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan 1996 C.C.D. was first set-up at Brigade Road in Bangalore 2000 Exported more than 27000 tonnes of coffee valued at US$ 60 m to countries like U.S.A., Europe & Japan and, for the second time in its short career of 7 years retained the position as the largest coffee exporter of India.
YEAR EVENTS2002 C.C.D. owns & operates 213 cafes in all major cities of India2008 C.C.D. expanded to 595 cafes in 100 cities of India, 3 in Vienna, 2 in Karachi & targets to expand till 950 cafes in a year from 20082010 Earning revenue of US$45 million, jobs 5000 employees, owns 1016 cafes in 135 cities
Mission and VisionMission:- “To be the best Cafechain by offering a world class coffeeexperience at affordable prices.”Vision:- “To be the only office fordialogue over a cup of coffee.”
Divisions of Coffee DayCoffee Day - Fresh & GroundCafé Coffee DayCoffee Day – VendingCoffee Day - XpressCoffee Day – ExportsCoffee Day – PerfectCafé Coffee Day is the part of India’s largest coffeeconglomerate named Coffee Day, Rs.750 crore ISO9002 certified company.
Competitors Direct Competitors: Barista Cafe Mocha Costa Coffee Beyond Coffee Gloria Jeans Minerva Coffee Shop Indirect Competitors: McDonald Haldirams Global Competitors: Star Bucks
7p’s of MarketingProduct• Wide range of products appealing to Indian coffee and snack lovers.• Indian taste.• 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.Price• Major customer -15- 29 yrs, Price ranges - 20 to 200. Minor changes (majorly - government taxes)
Place• Strategically located outlets (High Street/ Family Entertainment Centres). PromotionC.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. 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).
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. Physical Evidence• Logo, Colours, Images1. 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 New Logo• Dress Code
Porters Five ForcesHIGH HIGH VERY HIGH LOW VERY HIGH
SWOT AnalysisSTRENGTHS WEAKNESS• Largest retail chain of cafes. • Weak brand image and lacks strength to• ISO 9002 certified company. maintain brand loyalty.• Quality and taste. • Poor ambience and decor. (Prime space -• Youth oriented brand (40 % population < advertising and promotions). 20). • Wrong site selection - Losses.• Reduction in cost (Own Production).• USP of brand - Highly affordable brand. SWOTOPPORTUNITY THREAT• Fastest growing industries in Asia. • Competition with established and• Preferred for informal meetings. International other coffee cafes like Barista,• Gone international Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café. • Hukka Parlours.
Distribution Process• Each outlet serves 400 -800 customers daily depending upon its size & location.
Factors based on there priority Factors considered while selecting a coffee shop Quality of Services Items in the menu Pricing Location Ambience 23% 42% 11% 11% 13%
Grading of factors as per there importance Grading of the factors based on there importance when a customer goes to a coffee shop 1 - Least Important 2 3 4 5 - Most Important 80 56 52 44 44 44 44 40 40 40 36 28 28 28 24 20 20 16 16 16 16 12 12 12 4 4 4 4 4 4 4 40 0 0 0 0 0 0 0 Ambience Quality Pricing Location Brand Advertisements Offers Physical Evidence
Café Coffee Day Rating Rating to Cafe Coffee Day given by customers on the factors listed below Ambience Location Quality of Product Pricing Service Offered 52 52 48 44 40 28 28 24 24 20 20 16 16 16 16 12 12 84 4 4 4 4 4 0 Not Satisfied Satisfactory Good Very Good Excellent
Online SalesOnline 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.
H.R. Activities• With the boost in the number of their retail outlets, C.C.D. had to concentrate on the quality and quantity of their human resource in order to meet up with the set standards.• They make sure that the employees all across the country are well trained and provide consistent services at every outlet. Recruitment & Selection:• Selection procedure for senior managers is long-drawn and rigorous but on the other hand for shop floor workers it is simple and short.• 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.
Some Interesting Facts1. 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.
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.
Recommendations1. To improve the interiors and décor.2. To have more and more tie-ups.3. Only 50 % or less than 50 % people find Café Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Café Coffee Day need to do lot of homework in order to satisfy its customers.4. It should introduce a feedback form system in order to know about the customers satisfaction level.
Conclusion1. 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.