The document discusses the retail industry in India and the business model of Cafe Coffee Day. It provides background on the retail sector in India, noting it accounts for 14-15% of GDP and has a market of $450 billion. It also discusses the key elements of a business model including product features, customer value proposition, and key processes. It then details the history and growth of Cafe Coffee Day, which began as a coffee exporter and now has over 1500 cafes across India. The business model of CCD is also summarized, focusing on its people, technology, channels, value propositions, and profit formula.

1. Business model of Indian
Retail Industry

2. Retail Industry
• Retail is the sale of goods and services
from individuals or businesses to
the end-user.
• A retailer
– purchases goods or products in large quantities
– from manufacturers directly or through a
wholesale
– and then sells smaller quantities to the consumer for
a profit.
• Single Brand and Multi Brand
retail store

3. Retail Sector in India
• 14 to 15 percent of its GDP
• market is estimated to be $450 billion
• 1.2 billion people
• 8.1% organized Retail market
• 51% FDI in multi-brand retail

4. Business model
Sl
no
Elements Usage
1 Product features Select technology and features
2 Product benefits Benefits to customer on usage
3 segmentation Identify market segments
4 Revenue model Validate available revenue frame work
5 Value delivery Ensure the mechanism to deliver
value to the customer

5. Sl
no.
Elements Constituents of elements
1 Customer value
proposition
Target consumer
jobs to be done
offerings
2 Profit formula Revenue
Cost
Margin
Stock
Turns
3 Key processes Process
evaluation criteria and benchmarks
Norms and policy
4 Key resources People
Technology
Equipment
Information
Channels
Partnerships
Brands

6. Chairman of CCD
V.G Siddhartha

7. Journey of CCD
• Agricultural family of Coffee with 500
acre land
• Investment banking in Mumbai
• Inter market arbitration
• Bought 400 acre for coffee with 75%
loan from bank
• Coffee export and became India`s
largest exporter of coffee
• Sold coffee powder in
Chennai and Bangalore

8. contd…
• A/C Coffee store and price 25 RS
– 1996, 15 stores in 3 cities
• Cappuccino machine
• Internet café with free coffee
at 1st the name was Coffee Day Cyber
Café
Then it became Café Coffee Day

9. Now CCD is having…
• 1500 stores in 210 cities
• 18500 vending machine
• Selling 50 million cup of coffee & tea per
day in 900 kiosks in schools colleges &
railway platform
• 70% market share
• 80% youth customers
• 12 stores in Prague and 2 stores in Vienna
• 100 stores in main high ways

10. Café Coffee Day
Parent company- Coffee Day Co.
Portfolios-
1. Agri-business
2. Retail
3. Logistics
4. Investments
5. Infrastructure

11. Agri-business
• Family heritage of coffee production
• Arabica coffee and Robusta
• Largest producer of Arabica in Asia

12. Retail Business
• Pioneer of coffee café in India
• It consists of
– Café Coffee Day chain
– Coffee Day Xpress
– Coffee Day Beverages
– Coffee Day Fresh
– Coffee Day Exports
• Coffee Lab at Bangalore

13. Logistic Business
• Social logistic- single window multi
modal logistic solution company
• Port-rail-road-ICD(Inland container
depots)-CFS(container freight station)-
dredger
• 26 million ton cargo
• Market leader in surface logistic
• Container chain operation between
Chennai and Bangalore

14. Investment Business
• Stock market operation
• Investment in multiple IT an Technology
industry
Infrastructure Business
• Tanglin development ltd.
• 120 acre campus in Bangalore
• Township at Mumbai

15. Business model of CCD
Sl
no.
Elements illustration
1 People 17000+ employees, 20 in R&D,70 In HR
2 Technology Latest technology of coffee plantation
Curing, roasting and Probat roasting
machines
3 Channels Cafe, Lounge, Square
4 Value proposition Identifying target customer, defining the
benefits and provide which best to satisfy
5 Profit formula Financial sustainability of the firm in long
run basis
6 CSR Provides free education and training to
villagers and offering them jobs

16. Conclusion
Indian retail industry has a prosperous future,
it just need to take care the following things
1. Define different value proposition for the
different customer segments.
2. For high market penetration it has to offer
needs to satisfy the customer
3. Multiple channels & multiple formats to
reach the customer
4. Communication with customer and employees
are equally significant