The Project Hypothesis: Mean age of the CCD store traffic ranges from 25-35 years Cafe Coffee Day is perceived as a place to hang out Convenience is the most important factor influencing visits Consumer Behavior Analysis: A study of Cafe Coffee Day had been conducted by Sadaseeb, Ansup & Myself. Despite of the small sample size, it provided us an opportunity to learn and apply the analytical tools and concepts in the domain of marketing research.

1. Submitted BY:
Ansup Babu
Kumaresh Roy
Sadaseeb Choudhury
Somdeep Sen

2.  About The Industry
 Brief of the Company
 Purpose of the study
 Hypotheses
 Methodology
 Limitations
 Analysis and Findings
 SWOT Analysis
 Conclusions
 Annexure

3.  The Indian RTD tea and coffee industry stands at an estimated Rs 1,100 crore
 The market is expected to grow to a whopping Rs 2,250 crore by 2017
 Factors triggering growth:
- Improving disposable income
- Changing life styles
- Increasing influence of western culture
- Younger population
 Top three players: Cafe Coffee Day, Barista and Costa Coffee
 The competition in the market is likely to heat up with the entry Starbucks
Source: Zee Business

4. Year of Establishment 1996
Founder V. G. Siddhartha
Revenue US$450 million (As on 2012)
No. of stores 1481
Products Food & Beverage
Price Differential Pricing Strategy
Distribution Strategically located at six verticals
Promotion Sponsorships, collaborations, sales promotion, Cafe Coffee Day Card
Other Merchandize Coffee Makers, Coffee Mugs, Men/Women T Shirts, etc.
Other Facts
Market Share: 60% (as on 2012)
Follows Backward integration
Doesn’t go for franchising
Division of the largest coffee conglomerate- ABCTL
Source: Wikipedia & Hindustan times

5. To find out information about:
 Consumer Profile
 Brand Recall
 Customer visit details
 Customer Spending and consumption Pattern
 Customer Satisfaction

6.  Mean age of the CCD store traffic ranges from 25-35 years
 Café Coffee Day is perceived as a place to hang out with friends
 Convenience is one the most important factors influencing customer visits

7. Store Location
Hazra: Near
Asutosh college
Bhawanipur:
Near Forum
Camac Street
Total Sample
Size
Sample Size
Break up
20 15 15 50
Convenience Sampling
• People visiting CCD was interviewed through questionnaires to collect the primary data
• Internet had been used to collect secondary data

8.  The study has been conducted over a very short duration
 Due to the short duration
-The sample size is very small
- Non Probabilistic method of sampling has been used
Hence the findings should be taken as indicative

10.  Mean age of the respondents: 26 years
 52% of the respondents are female
 50% of the respondents are students; rest are working professionals
 All the respondents have household hold income of Rs. 28,000 or more per month
5
10
15
20
25
30
35
40
45
50
16-24 25-33 >33
46 44
10
Age (%)
60%
40%
Household income per month in Rs
28-34K >34K

11. Respondents (%) TOM Recall order
96
1. Café Coffee Day
2. Barista
3. Can't Say
4
1. Starbucks
2. Café Coffee Day
3. Barista
 All the respondents mentioned Café Coffee Day as well as Barista
 4% of the respondents mentioned Starbucks- the newest entrant in the Indian coffee retailing

12. 5
10
15
20
25
30
35
40
45
50
Student Working Professional
42 40
8
4
6
Purppose of visit(%)
To hang out with friends To consume food and hang out Others
Value df P Value
Pearson Chi-
Square
3.691 2 0.158
 82% of the respondents look at CCD as a place to hang out
 As per Chi-Square value there is no association between occupation & purpose of visit

13.  Students prefer to visit the outlets at least once a week
 The ‘once in a two weeks’ bracket is popular among the working professionals
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Student Working Professional
2
6
48
30
16
FrequencyofVisit%
Occupation
Once in a month
Once in two Weeks
>3 times in a week
1-3times in a week

14. 76% of the respondents prefer to visit the shop on weekdays
Student Working Professional
50
26
24
PreferredDays(%)
Occupation
Weekdays Weekends

15. Brands Mean Degree of Frequency
Café Coffee Day 3.9 High
Barista 0.68 Least
Costa Coffee 0 -
Others 0 -
 CCD has emerged as the most frequently visited brand
 Only 42% of the people have visited Barista
 None of the respondents have visited other competitor brand like Costa Coffee

16.  Convenience & quality of service at a coffee shop has emerged as the most important factors
 It is a tribute to the strategically located outlets and highly skilled manpower of CCD
Factors Mean Score Degree of importance
Convenience 5.00 Most
Quality of Service 4.60 Most
Availability of preferred item(s) 4.06 High
Ambience 2.80 Moderate

17. 10
20
30
40
50
Student Working
Professional
8 6
6
6
36 38
PreferredItems%
Occupation
Combo Deals
Food
Beverages
df P Value
Pearson Chi-Square 2 0.774
 74% of the respondents have shown preference for combo deals
 As per chi-square test, such preference is same across both set of occupations

18. 10
20
30
40
50
60
28-34K >35
2 4
54
20
4
16
AmountSpend%
Household income per month
>200 (Rs)
100-200(Rs)
50-100(Rs)
74% of the respondents prefer to spend Rs. 100-200 during their visit

19. Barista Café Coffee Day
Factors Mean Satisfaction Level Mean Satisfaction Level
Quality of Items 4.4 Very High 4.4 Very High
Availability of preferred items 4.3 Very High 4.4 Very High
Service Delivery Time 4.0 Very High 4.4 Very High
Staff Behavior 4.4 Very High 4.3 Very High
Value for Money 2.0 Low 4.2 High
Store Ambience 4.4 Very High 4.1 High
Overall Infrastructure 4.3 Very High 4.3 Very High
•Customers are highly satisfied with the offerings of CCD & Barista
•Value for money is an emerged as a difference maker
•Customers perceive CCD has a quality brand that provides value for money

20. Strength
High degree of brand awareness
Strong distribution network
Cost reduction through backward integration
Wide variety of product
Excellent service
Strong presence over the digital space
Weakness
• Absence of franchising may deter expansion
activities
Opportunities
High growth potential of the RTD market
Merchandizing
Tapping the smaller towns
Focusing on the food segment
Globalization
Threats
•Presence of strong competition (direct & generic )
•Entry of Starbucks

21.  High growth potential of he RTD tea and coffee market
 Target Group: Youth in the middle and higher income
 Perceived CCD as a place to hang out
 Most frequent visitors: The 16-24 age bracket
 Most important factor influencing visit: Convenience
 Perceived as:
-Place to hang out
- Quality & value for money brand

22.  In cases where 5-point rating scale has been used, the interval for the range in
measuring the parameters has been calculated as : (5-1) / 5 = 0.8 , as below
Score Degree of
1 to 1.8 Least
1.81 to 2.6 Low
2.61 to 3.4 Average
3.41 to 4.2 High
Above 4.2 Most