Coffee shops are becoming increasingly popular in India, especially among youth, with over 1,500 cafes opening in the past decade. However, India's coffee consumption is much lower than other countries, at only 85 grams per capita compared to over 4 kilograms elsewhere. There is significant potential for growth in the Indian coffee market. Coffee Day is a large coffee chain in India but needs to improve its brand image and customer service. Based on an analysis of Coffee Day's strengths and weaknesses, recommendations are provided to enhance its offerings and operations. An internship at Coffee Day Global provided valuable practical learning about managing and growing a large organization.

1. CHAPTER 5
FINDINGS / CONCLUSIONS /RECOMMENDATIONS /
LEARNING OUTCOMES
5.1 OPPORTUNITIES
Coffee stores are becoming quite popular in India. These stores have become a hotspot for the
quite popular among youths in India as hangout places. More than 1,500 cafes have sprung
up across India in the past decade, mostly from six organized chains, clocking an average
annual growth of around 40 percent. Valued at around US$185 million, the organized café
market in India is estimated to be growing at a compound annual rate of 25%. Stirring up the
market is India's growing youth segment: around 50% of India's 1.2 billion people are 25 or
younger. By 2015, this is expected to increase to 55%. For this segment, particularly those
with steady, disposable incomes, coffee shops serve as a social hub.
According to industry estimates, there is scope for another 5,000 or so outlets strategically
located close to offices, colleges and shopping malls. That‘s the space the foreign chains want
to tap. Stirring up the market is India's growing youth segment: around 50% of India's 1.2
billion people are 25 or younger. By 2015, this is expected to increase to 55%. For this
segment, particularly those with steady, disposable incomes, coffee shops serve as a social
hub.
INCREASING COFFEE CONSUMPTION
India's coffee consumption pattern gives a clue to the potential that the market holds. The
nation's per capita consumption of coffee is just 85 grams, compared to 4.5 kilograms in
France, 4.6 kilograms in Japan and 6 kilograms in the U.S. The Indian Coffee Board's
numbers reveal that while India is the sixth largest coffee producer in the world, with an
annual output of 300,000 tons, domestic consumption is only a third, or 100,000 tons. That's
because like most of Asia, India is predominantly a tea drinking nation. Coffee is a staple
only in the southern part of the country.

2. Starbucks Corp., the world‘s largest coffee retailer, was also eyeing the Indian market, after
having dropped the plan a few years ago following some regulatory hurdles. Now it has
entered India to exploit the vast potential of Indian market.
CHALLENGES
Even as the market gets more competitive, there are strong roadblocks ahead. The price of
roasted coffee is currently at an all-time high of US$7 to US$8 per kilogram, up 60% since
last year. Then there is the huge real estate cost. For most foreign players, the rent-to-sales
ratio in India is one of the highest across their global markets. With all players targeting a
similar profile of consumers, zeroing in on the right location is crucial. Gloria Jean's White
points out that the mix of high rent costs and low menu prices puts tremendous pressure on
the business.
Manpower is yet another challenge. Much of the success of a café depends not just on the
quality of the products it serves, but on the overall ambience and guest experience. This
requires trained staff. But vending coffee is not a highly skilled job and is low paying, which
often results in high turnover. With every player on expansion track, there is a scramble for
putting together the best team.
CCD has set up their own training schools, but for others it's a tough task. With more players
entering the arena, the challenges around managing costs, even as one strives to deliver the
best international standard of cafe experience, will only intensify. Indian consumers, however
affluent, have always put a premium on value-for-money offerings. Also due to inflationary
pressures in the economy in recent times people have started spending less on frills and save
more.
According to live mint report that quotes Boston Consultancy Group saying Pressured by
rising prices, 42% of Indian consumers plan to cut spending and change habits to suit the
―new normal‖. This piece of news might bring some disappointment to both the companies.

3. 5.2 FINDINGS
Coffee day has an extremely strong brand image, but they need to work hard on improving
their customer perception of being and expensive brand.
Café Coffee Day has done extremely well so far to project itself as an affordable youth-
oriented brand. But there are still certain areas where their brand needs to be much stronger
and strike in the customers mind.
With regard to the physical evidence associated with the brand, Café Coffee Day needs to do
a lot of work if they hope to catch up with other competitors. With the entry of Costa Coffee
and Barista, Coffee Day had to buck up to protect its current market share.
Café Coffee Day would do better to provide promotional space for its partners with the use of
clever collaborations, and not printed advertisements and posters everywhere.
Coffee Day can improve a lot by training its employees to be customer friendly
The employees in Coffee Day are not that energetic and fast in service. They could do better
by training their employees on these areas.
The range of coffees here is excellent, both cold and hot, is impressive. They have left no
stone unturned to provide variety to customers.
CCD also sells its own range of t-shirts, coffee mugs and bags. Their line of pre-packed
coffee powders is steeply priced, but there is no dearth of takers, and the filter-coffee has
some dedicated drinkers. Filter coffee is liked by many customers and it is an excellent idea
of selling filter coffee to customers.
Another backlash of having such a strong traditional café brand image is that customers have
very high expectations of the taste & quality of products. Coffee day needs to work hard at
this aspect, especially for coffee and eatables products.

4. Areas of Excellence
The café has certain areas where it has been consistently performing well. These
are essentially the strengths of the brand, and Café Coffee Day needs to capitalize on these
strengths to increase their market share and brand loyalty.
1. Highly rated Taste & Quality of products
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.
2. Value for money proposition
Café Coffee Day is projected as an “affordable” brand. This strategy has worked
extremely well so far, and Café Coffee Day got a high rating, both for their prices and
for their value for money, in the market survey.
3. Strong youth orientation
The Café Coffee Day brand is, and always has been, extremely youth- oriented. In a
country where over 40% of the population is under the age of 20, there is huge
potential for Café Coffee Day to become one of the country’s largest youth brands.
The untapped market share and potential for growth is enormous.

5. 5.3 RECOMMENDATION
Café Coffee Day has underperformed or not lived up to potential in certain areas. The areas
are weaknesses, which need to be improved upon, as that both can eliminate any
disadvantage that may have, and improve customer satisfaction.
1. Weak brand image
The Café Coffee Day brand, although clearly a youth- oriented brand, lacks the power
and strength expected to maintain brand loyalty. The brand doesn’t project a clear
image to customers about what Café Coffee Day is all about. This could prove as a
deterrent during future national and international expansion.
2. Inefficient human resources
Café Coffee Day needs to work hard at this aspect, especially considering they are a
service sector organization that is looking at large expansion. They need training and
development.
3. Inconvenient delivery process
On a smaller note, Coffee Day’s self- service delivery process is quite inconvenient.
Customers are going to find it inconvenient to go back to the counter just to receive
their order.
4. Perceived as an expensive brand
Customer perceptions of Coffee Days prices and value for money are quite negative.
This drives away a huge chunk of customers away.

6. 5. Ambience & Décor
The Ambience & Décor of Café Coffee Day outlets are not that attractive. There is
too much of advertisements and crowded with posters .
5.4 LEARNING OUTCOME
It was a great experience working in the Coffee Day Global LTD .The learning experience in
the company was very pleasant. Very happy with the senior General Manager for his great
support.
I learned about management from practical perspective and how the organization works in
management aspect and the policies and procedures involved.
It was totally new experience in the company. I started my study under the guidance of Mr.
Javeed Parveez, he is a Senior General Manager at COFFEE DAY GLOBAL LIMITED
Chikmagalur. I was given an opportunity to refer the organization’s records, where I got to
know about the documentation procedures involved in that work and gained fair ideas of the
functions in COFFEE DAY GLOBAL LIMITED.
The study in the organization was useful which enabled me to know functions of each and
every department of the company apart from the theoretical knowledge.
This study has given me practical exposure about the organization. It was a great experience
working, where I learnt things about the functioning of an organization in accordance with
the present market trends and gained the information about the café business and plantations
and other business which comes under the coffee day global ltd and how they manage and
control and work flow of the organization from the top management. Learnt about the history
of the company, The company has given its employees a great opportunity to express their
ideas and suggestions to the company. The welfare activities that are provided to the
employees have always kept them at higher sprit which has successfully contributed towards
the profitability of the organization.
This organization study at COFFEE DAY GLOBAL LIMITED helped me to relate the
theoretical knowledge to the practical experience and has given an insight about how a
company works practically.