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cafe cofee day Business model of Indian Retail Industry
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.
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cafe cofee day Business model of Indian Retail Industry
- 1. Business model ofIndian 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 inIndia • 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. ElementsConstituents 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/CCoffee 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 ishaving… • 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 • Familyheritage 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 ofCCD 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 retailindustry 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