Cafe coffee Day


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Cafe coffee Day

  1. 1. “A lot can happen over coffee”
  2. 2. ABOUT THE INDUSTRY India’s annual Consumption -97000 tonnes. Annual growth rate :5-6% Average per capita consumption : 66 gramsannual Urban areas-73%, Rural areas- 27%.
  3. 3. CAFÉ COFFEE DAY Started by V. G. Siddhartha in Brigade Road Bangalore, 1996 Largest organized retail coffee chain in India Total outlets- 937 in every nook and corner of the country Plans to open 180 more outlets in fiscal year 2010. A Rs. 750 crore, ISO -9002 certified company. New cafes planned across – Middle East, Eastern Europe, Egypt, Eurasia, South East Asia
  4. 4. Competitor Analysis The Biggest Competitors for CCD are: Barista Café Mocha Qwicky Costa Coffee Java Green Café Pascucci Indirect Competitors McDonald’s, Haldiram’s Local Café shops like Nescafe
  5. 5. PRODUCT Grows the coffee it serves in its cafes Well-equipped roasting unit The eatables catered by different vendors Ice creams- Cream Bell Milk - Amul Snacks from local vendors Sells merchandise through its stores. Enjoys trust for quality, hygiene and consistency of food.
  7. 7. PRICE Affordable prices. Price for a cup of coffee ranges from Rs 45 to Rs 80 Only minor changes in the pricing policy due to changes in Govt. taxes.
  8. 8. PHYSICAL EVIDENCE Logo - Larger font- Emphasis on the word CAFÉ. - Red signifies leadership and passion. - Swirl for purity of purpose and the feel of coffee. Architecture and décor-uses bright colours and interiors according to the youth. Designing of pamphlets posters and menu to attract the youth.
  9. 9. PROCESS Ordering and delivery earlier was self service and now most of the coffee shops have waiters to take order and deliver at the table.
  10. 10. PEOPLE Emphasis on motivation and personal skills of the people. Friendly waiters and services. Employees follow international standards of hygiene, cleanliness and personal grooming. Reward Schemes like “Employee of the month”
  11. 11. PLACE Prime factor for success- Located at every possible location where business can be generated. Caters to target market with strategically placed outlet . Eg-Located in high street, gas station and near colleges.
  12. 12. PLACE Metros Tier-I cities ( Jaipur, Kanpur, Surat) Tier-II cities (Mysore, Guwahati, Jamnagar) Satellite cities and urban outgrowths (NaviMumbai, Faridabad, Secunderabad) To be expanded to Tier-III cities Tie-up with Ginger Hotels of the Taj Group
  13. 13. POSITIONING AND BRAND IMAGE Brought café culture to India For the youth: Young (AT HEART) customers, young and friendly staff Highest distribution network Targetmiddle and upper middle class Age group 15-29
  14. 14. CONSUMER PROFILE Age group: 20-24 years- 37% 25-29 years- 27% Gender: Male- 60% Female- 40% Occupation: Students- 52% Frequency of visit: Daily- 18% Weekly- 44%
  15. 15. CAFÉ FORMATS Different café formats: Music cafes Books cafes Highway cafes Lounge cafes Garden cafes Cyber cafes Latest addition: Lounge cafes
  16. 16. PROMOTION Through SMS Valentine's day promotion, "Café Coffee Day Luv Zone“ Through Television Held a contest around a very popular program on Zee English called Friends. They have tied up with Channel [V]'s Get Gorgeous contest. Ticket sales: They were involved in WWE, Elton John, and Bryan Adams ticket sales
  17. 17. PROMOTION Tie-ups Liril, AirtelFriends. HDFC wanted to promote their debit card and they choose Café Coffee Day. So 21 cafes have debit card machines. Association with movies Bas YunHi Khakee Main HoonNaa Socha Na Tha MujhseShaadiKarogi
  18. 18. Sales Promotion: Special ‘Café Citizen Card’ PROMOTION
  19. 19. RE-BRANDING Earlier perceived as a place where intellectual meet Positioned itself as a coffee bar and has maintained that position for a long time now. CCD saw a latent market in youngsters For youngsters- CCD a fun place where one can go anytime of the day and have fun with friends. In 2002 CCD underwent a rebranding exercise. CCDspent INR 1.5 billion to redesign existing cafes (2009).
  21. 21. STRENGTHS Products of extremely good quality and taste Its a youth oriented brand , hence huge potential since 40 % population is below 20 It produces the coffee it serves hence reducing the cost USP of brand is its considered a highly affordable brand
  22. 22. WEAKNESS The store ownership of the company might hinder in their expansion policies Price of the products is relatively higher than brands like Java Green and McDonalds CCD cafes are small in sizes Many of the CCD stores are incurring loses due to wrong site selection (national highways)
  23. 23. OPPORTUNITIES Coffee cafe industry is one of the fastest growing industry in Asia More people like to visit CCD for informal meetings CCD has gone international , and is planning to attract many new international markets, hence gaining international recognition Changing lifestyle of youth, they like to spend time on lounging. New Products
  24. 24. THREATS Competition with other coffee cafes like Costa Coffee, Barista & Mochas. Consumer trends towards more healthy ways and away from caffeine International players like Starbucks New entrants and costs
  25. 25. COMPETITIVE SRATEGIES Follows a backward integration of the value chain Procures coffee beans from its base in Bangalore. Quality assurance Focus on core competence- coffee, outsources other item Food items are obtained from local suppliers- cost advantage
  26. 26. CONTD… Far greater reach on a country wide scale Place for fun and hangouts for youngsters. Does not use franchisee model. Offers variety as per changing times. CCD doesn't sell product, it sells “EXPERIENCE”