This report evaluates consumer preferences regarding coffee shops in India, focusing on factors such as age, income, and brand loyalty. Key findings indicate that Café Coffee Day is favored for its accessibility and price, while Starbucks appeals to consumers seeking quality and ambiance. Recommendations for improvement suggest enhancing service quality at Café Coffee Day and correcting perceptions of Barista as an expensive brand.

1. Advertising and Marketing Research Project
Report On:
To compare evaluate the consumer’s mindset
towards choosing a coffee shop

2. The Problem:-
• Industrial development
• Varieties available
• Perception towards a coffee brand
• Attributes
• New entrants

3. Research Objectives:-
• To understand the personalities and positioning of coffee shops
• To analyze the effect of age, income, profession and education while
selecting a coffee shop
• To find out potential of coffee house market in India and consumer
perception towards brand loyalty and the entrance of new coffee houses
in India.
• To identify the parameters that play a major role in the consumer’s
selection of international chain coffee bars

4. Hypothesis:-
• Null Hypothesis :-
Café Coffee Day will be more famous amongst college students due to its price
and accessibility
• Alternate Hypothesis:-
Starbucks will be more preferred by other classes due to its unique coffee taste,
ambience, and its own class and value.

5. Data Collection Technique:-
PRIMARY
DATA
QUALITATIVE
DATA
PERSONAL
INTERVIEW
GROUP
DISCUSSIONS
QUANTITATIVE
DATA
SURVEYS

6. Research Design and Sampling:-
 Design
Target Audience: Consumers
Demographic profile:
• Age: 18-60
• Sex: Male/Female
• Education: SSC, HSC, Graduates, Post
Graduates and the Working Class
• Occupation: Students, Businessmen,
Entrepreneurs, Working women, Traders
• Income group: 50,000 and above per month
• Location: Mumbai
Psychographics:
Those who are coffee lovers, who don’t mind
splurging over a c Coffee of their choice, people
who are work oriented and don’t find the time to
make coffee, people who like to experiment and
demand or prefer the best quality products
 Sampling
• Sample size: 150
• Sample Break up: 50people for interview including the coffee shop
staff+ 5 Competitors (20 sheets in each coffee shop)
• Sampling Unit: City blocks (Areas). 10 units from 6 blocks
• Sampling Frame: Bulk mails, telephone contacts, social networking
websites, etc.
• Method of data collection: Primary data collected through qualitative
methods of data collection namely surveys, and questionnaires.
• Questionnaire: Structured with attitude management scales using,
Qualitative data.
• Type of Interview: Personal Interview.
• How the work will be supervised: A team of three will be split. One
would go in coffee shops to interview people, one would distribute the
survey sheets and last one will be calculating the results.
• Editing of Questionnaire: A simple, precise questionnaire has been
designed using all types of structured and attitude scale
measurements to analyses various responses given by the
respondents.
• Time for Completion: 3 months.
• Cost: Printing expenses, Stationery expenses and travelling expenses.

7. Data Analysis:-
Do you usually visit coffee
shop?
72%
28%
YES
NO
Based on the attributes
Which coffee shop serves the
V.IMPORTANT S.IMPORTANT N.IMPORTANT
44 44 41 44
49
44
31
37 33
28
13%
11%
6 8 9 8 6
LOCATION SERVICE VARIETY PRICE AMBIENCE
31%
33%
12%
best coffee
CCD
STARBUCKS
BARISTA
COSTA
BRU
Which is your favourite
32%
31%
11%
14%
12%
coffee shop?
CCD
STARBUCKS
BARISTA
COSTA
BRU
Which café comes first to your
19%
55%
5% 14%
7%
mind ?
STARBUCKS
CCD
BRU
BARISTA
COSTA

8. Major Findings:-
• The finding concludes that most respondents visit coffee shops with friends, with
locally branded coffee shops and preferred choices.
• Consumer motivation to branded coffee shops is most influenced by three factors:
past experience, convenience of location, and friends and family.
• Customer’s perception of prices plays a very important role in a service sector
industry. Because of the intangible nature of a service, prices are often regarded an
approximate indicators of quality.
• Friendly staff, high quality of coffee and food, good atmosphere and good
reputation is the most important aspect of coffee shops.
• Starbucks, a company which is the leader worldwide in coffee shop, has a goal
today to maximize profit, but with the fast pace growth and focus on ROI.

9. Major Findings:-
• 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.
• According to the research CCD is the most preferred coffee shop, as there are many
outlets, combo offers with affordable prices. Starbucks is preferred when it comes
status, high quality of coffee and ambience.
• By creating positive customer service, Starbucks has created a large base of loyal
customers Starbucks is very successful with drawing customers into the stores; the
marketing strategy is simple, offers high quality products and a great atmosphere
that will draw consumers in.

10. Recommendations:-
• If Costa can capture and retain customers then we envisage that many will not move
to Starbucks as they are more concerned about the ethical nature of businesses,
which remains a priority over taste or habits.
• Barista has an extremely strong brand image, but they need to work hard on
improving their customer perception of being and expensive brand. Barista and Café
Coffee Day have almost identical pricing, but Barista is still perceived as the more
expensive brand.
• Barista is, to carry out a promotion campaign to ensure that their target market is
well aware of their current low prices. This would help change customer perception
and turn Barista into an affordable brand.
• Café Coffee Day is to clean up the décor at every outlet, wherever unnecessary
advertising is taking place.

11. Recommendations:-
• Café Coffee Day looks at its current recruitment, selection and most importantly, its
current training policies. Customers are not happy with the behaviour and service of
the staff, and Café Coffee Day is lagging far behind Barista is this aspect.
A few Suggestions from our Respondents:
• The cafe must always serve and maintain good quality food and beverages, and
also Indianite their products to suit the taste buds of the Indian consumers.
• It must offer pocket friendly items.
• Excellent services are of vital importance to survive in today's competing world.
• Bigger space.
• More outlets/ franchisees.
• Keeping a good ambience.
• Must provide Wi-Fi services as in today's contemporary world consumers want to
work and relax at the same time.
• By giving special discounts or offers to loyal customers, and coming with attractive
offers for its prospect buyers and by advertising effectively.

12. Conclusion:-
• Café Coffee Day got a high rating in the market survey, for the Taste & Quality of their
products. If they work on this aspect, there is huge potential for them to attract customers,
just based on the taste and quality of products. This is also helped by the fact that they grow
their own coffee beans, and this provides an important base for future expansion and growth.
Café Coffee Day even won the “Barista Coffee- Making Championship” for the Best Coffee.
CCD has: Value for money proposition and strong youth orientation.
• Barista has an extremely strong brand image, but they need to work hard on improving their
customer perception of being and expensive brand. Barista and Café Coffee Day have almost
identical pricing, but Barista is still perceived as the more expensive brand.
• Starbucks, a company which is the leader worldwide in coffee shop, has a goal today to
maximize profit, but with the fast pace growth and focus on ROI. The problems that relies
currently on the company are the fear of going after maximizing the profit and end up losing
the Starbucks. Experience which is their mission.

13. THANK YOU
A Research work By:
Moushmi Mistry
Jenita Rathod
Nileshwari Gajelli
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