Service Industry Café
      Coffee Day

Presented 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                             EVENTS
Since 1875 Rich coffee – growing tradition started
Early 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   EVENTS

2002   C.C.D. owns & operates 213 cafes in all major
       cities of India


2008   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 2008


2010   Earning revenue of US$45 million, jobs 5000
       employees, owns 1016 cafes in 135 cities
Mission and Vision
Mission:- “To be the best Cafe
chain by offering a world class coffee
experience at affordable prices.”
Vision:- “To be the only office for
dialogue over a cup of coffee.”
Divisions of Coffee Day
Coffee Day - Fresh & Ground
Café Coffee Day
Coffee Day – Vending
Coffee Day - Xpress
Coffee Day – Exports
Coffee Day – Perfect
Café Coffee Day is the part of India’s largest coffee
conglomerate named Coffee Day, Rs.750 crore ISO
9002 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
Tangibility Spectrum
Services Blueprint
7p’s of Marketing
Product
• 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).

 Promotion
C.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, Images
1. 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 Forces
HIGH                                    HIGH




                                   VERY HIGH
       LOW

                       VERY HIGH
SWOT Analysis
STRENGTHS                                   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.


                                        SWOT



OPPORTUNITY                                 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        4
0 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
                                                                                                        8
4        4     4         4                                                                                                4                4
    0

    Not Satisfied            Satisfactory                         Good                         Very Good                      Excellent
Online Sales
Online 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 Facts
1. 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.
Recommendations
1. 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.
Conclusion
1. 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.
Sites Referred
http://www.casestudyinc.com/coffee-day-
 brand-strategy-india
http://www.pr-inside.com/india-food-and-
 drink-report-q-r2164244.htm
http://en.wikipedia.org/wiki/Marketing
http://www.cafecoffeeday.com/
http://www.barista.co.in/users/index.aspx
QUESTIONS
Thank You

Cafe Coffee Day

  • 1.
    Service Industry Café Coffee Day Presented By:- Nandita Sadani - 48
  • 2.
    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
  • 3.
    Corporate Profile  CaféCoffee 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.
  • 4.
    Important Events YEAR EVENTS Since 1875 Rich coffee – growing tradition started Early 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.
  • 5.
    YEAR EVENTS 2002 C.C.D. owns & operates 213 cafes in all major cities of India 2008 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 2008 2010 Earning revenue of US$45 million, jobs 5000 employees, owns 1016 cafes in 135 cities
  • 6.
    Mission and Vision Mission:-“To be the best Cafe chain by offering a world class coffee experience at affordable prices.” Vision:- “To be the only office for dialogue over a cup of coffee.”
  • 7.
    Divisions of CoffeeDay Coffee Day - Fresh & Ground Café Coffee Day Coffee Day – Vending Coffee Day - Xpress Coffee Day – Exports Coffee Day – Perfect Café Coffee Day is the part of India’s largest coffee conglomerate named Coffee Day, Rs.750 crore ISO 9002 certified company.
  • 8.
    Competitors  Direct Competitors: Barista Cafe Mocha Costa Coffee Beyond Coffee Gloria Jeans Minerva Coffee Shop  Indirect Competitors: McDonald Haldirams  Global Competitors: Star Bucks
  • 9.
  • 10.
  • 11.
    7p’s of Marketing Product •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)
  • 12.
     Place • Strategicallylocated outlets (High Street/ Family Entertainment Centres).  Promotion C.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).
  • 13.
     People • Peopleat 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, Images 1. 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
  • 14.
    Porters Five Forces HIGH HIGH VERY HIGH LOW VERY HIGH
  • 15.
    SWOT Analysis STRENGTHS 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. SWOT OPPORTUNITY 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.
  • 16.
    Distribution Process • Eachoutlet serves 400 -800 customers daily depending upon its size & location.
  • 17.
    Factors based onthere priority Factors considered while selecting a coffee shop Quality of Services Items in the menu Pricing Location Ambience 23% 42% 11% 11% 13%
  • 18.
    Grading of factorsas 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 4 0 0 0 0 0 0 0 0 Ambience Quality Pricing Location Brand Advertisements Offers Physical Evidence
  • 19.
    Café Coffee DayRating 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 8 4 4 4 4 4 4 0 Not Satisfied Satisfactory Good Very Good Excellent
  • 20.
    Online Sales Online Salesby 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.
  • 21.
    H.R. Activities • Withthe 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.
  • 22.
    Some Interesting Facts 1.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.
  • 23.
    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.
  • 24.
    Recommendations 1. To improvethe 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.
  • 25.
    Conclusion 1. C.C.D. isthe 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.
  • 26.
    Sites Referred http://www.casestudyinc.com/coffee-day- brand-strategy-india http://www.pr-inside.com/india-food-and- drink-report-q-r2164244.htm http://en.wikipedia.org/wiki/Marketing http://www.cafecoffeeday.com/ http://www.barista.co.in/users/index.aspx
  • 27.
  • 28.

Editor's Notes

  • #15 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