The above presentation was made for my Marketing Strategy and Organization lecture. The presentation talks about Cafe Coffee Day (CCD), a national cafe chain, its analysis from Indian market's perspective. It also talks about the entry of Starbucks and its impact on CCD, and what should be CCD's strategy.

2. CAFÉ COFFEE DAY
• Founded in 1996
• V.G. Siddhartha, Founder and Chairman
• Amalgamated Bean Coffee Trading Company(ABC)
• India’s leading coffee chain by 2013 with 60% market share
• By 2013, 1,469 cafés( including lounges and squares)
• Average footfall: 300 per café per day

3. VISION
“To be the best café chain in the country by offering world class
coffee experience at affordable prices”.
MISSION
• To be ranked no. 1 among the service sector
• To provide the best quality services to customers at affordable prices.
• CCD is aiming to create its own niche merchandising like Indian coffee powder,
cookies, coffee mugs and curry paste.
PHILOSOPHY
Its philosophy is to provide world class trendy lifestyle products and experience to
its customers and in order to execute it, it has opened some new outlets with the
facility of music lounges, book cafes etc.

9. Competitors and Facts
S.No. Brand Name Launch
Year
Stores Small
cappuccino
cost(april,2013)
1. Café Coffee
Day
1996 1,469 66
2. Barista Lavazza 2000 175 88
3. Costa Coffee 2010 100 95
4. Mocha Café 2001 18 70
5. Gloria Jean’s
Coffee
2008 17 107
6. Starbucks 2012 11 95

11. 1. 1st mover advantage
2. Quality service and taste
3. Reduced operating cost
4. Excellent brand name
and visibility
5. Youth oriented brand
1. Lack of individual attention
to customers
2. Lacks strength to maintain
brand loyalty
3. Crowd management
1. Fastest growing industries
in Asia
2. Cheaper varieties of
coffee
3. Merchandising.
4. Tie ups with other
companies
1. Large number of
competitors
2. Dependent on govt.
commodity rates.
3. Large unorganized market

12. PROBLEM STATEMENT
Should CCD apply “slight course correction” or “ push the the wall” strategy???
Could it wait too long or more aggressive approach was
required????
Is Threat from Starbucks legible?????

14. Comparison between CCD and Starbucks

15. Decision analysis
Decision options:
1. Slight course correction
2. Aggressive course correction
3. Create a separate premium brand for affluent segment

16. Decision criteria
1. Growth in affluent segment
2. Sustain growth in line with youth
3. Customer satisfaction level
4. Staff satisfaction level
5. Budget
6. Time

17. Selecting Decision:
1. Rejecting Slight course correction
2. Rejecting Aggressive course correction
3. Accepting altogether new strategy

18. Action Plan
For original CCD brand targeting youth segment
1. Focus on “cost leadership” compared to “differentiation” .
2. Upgrade staff selection process
3. Upgrade in-house residential training programme
4. Upgrade food and beverages breadth and quality.
5. Upgrade store interiors and furniture gradually among all stores
6. Spend portion of total branding budget to strengthen CCD brand

19. Action Plan
For new premium brand targeting affluent segment
1. Create a premium brand either organically or inorganically
2. Focus on “differentiation” compared to “cost leadership”
3. Convert existing lounges and square format stores
4. Push premium brand to contribute 25-30% to overall portfolio
5. Implement “Innovative Everything ”
6. Spend heavily in branding.
7. Do necessary price adjustments.