Learn about brand re-positioning and the challenges associated with it.

1. CAFE COFFEE
DAY
BRAND TRANSFORMATION
THROUGH REPOSITIONING
GROUP 1

2. Rise of Cafe Culture
❏ Until, 1990’s, coffee drinking was restricted to intellectuals, South
Indian traditionalist, and affluent coffee shop visitors.
❏ As the cafe culture grew in international markets, the demand for
relaxed hangout and fun hangout spots emerged .
❏ In 1996 V.G. Siddhartha seized this opportunity and started Café
Coffee Day in Bangalore as an internet cafe with an initial investment
of ₹ 1.5 crore. They soon moved toward “coffee and conversation”
model instead.
❏ A fully integrated business model from coffee plantations to cafes.
❏ By 2008, his company was serving 300,000 customers every day,
with an average foot traffic of 500 people per location.
❏ Each customer stayed approximately around 45 minutes per visit in
the cafe and spent the average of Rs. 150 per person.
❏ CCD has a gross revenue of Rs. 50.5 billion in 2008 and its EBITTA
was around 15%.

3. Consumers in India
❏ Consumer Needs: At the time Indian consumers were
mostly clustering between the belonging and esteem
need states. “Belongingness” continued to be the
strongest need for most Indian consumers because
of cultural conditioning.
❏ Urbanisation: 54 % population was less than 35
years; urban population was forecasted to grow from
28 % to 40 %.
❏ Rise in disposable income: Consumers were more
confident, more likely to take risk ; aspiration lead
purchase was on the rise.
❏ Globalization : Middle class sought to emulate global
buying habits such as branded experiences that
offered a sense of adventure; brands with social &
environmental ethos, brands that could deliver unique
experiences etc.

4. CCD Consumer Profile
Exhibit 1
❏ Students and young professionals comprise
approx 72 percent of the customers
❏ Customer Segmentation according to age
❏ Teenagers - 25%
❏ 20-24 - 38%
❏ 25-29 - 23 %
❏ Others - 30 %
❏ CCD customers are socially active, go out often,
and visit malls.
❏ Brands are important to them because they serve
as a source of identity and feel good factor.
❏ CCD customers are value conscious, seek better
lifestyles are tech savvy, and influence to peers
and family.

5. Brand Identity Before Rebranding
Exhibit 2
❏ CCD represents a friendly, youthful, spirited,
approachable - like a friend, sightly cheeky person
❏ CCD tries to create an experience that hints
excitement, causal & approachable, friendly and
inhibited, fresh and contemporary etc
Exhibit 3
❏ CCD belief system is based on four pillars of diverse,
free spirited, forward thinking and intuitive.
❏ For example it a forward thinking next generation
brand that takes leadership in defining the category,
willing to break convention and challenge the
established rules of the game.

6. Problem at Hand
Current Brand Perception
❏ The brand was perceived to be a
❏ Accessible
❏ Comfortable
❏ Youthful
Gaps in Brand Perception
❏ The brand was not perceived to be
❏ Sociable
❏ Inspirational
❏ Dynamic
Challenges
❏ The positioning was becoming commonplace i.e. non-
differentiated and was losing relevance among the
core consumer group.
❏ Brand delivery across customer touch points was
inconsistent including the look and feel aspect.

7. Repositioning
❏ CCD needed coherent brand rejuvenation, new positioning, and evolved
brand identity design

8. STEP 1 : Competition and Brand Analysis
❏ Existing archetype was insufficient to compete with international brands based on the quality of
coffee
❏ Unable to offer a unique and differentiated experience
❏ Unsustainable in face of more aggressive competition
❏ Not aspirational for changing consumers and could actually dilute the brands stature over time
❏ As Indian society was evolving from collectivism to individualism, the brand would have trouble in
staying relevant.

9. STEP 2: Consumer Research & Gaps in Intended Brand Identity
❏ Primary study on CDD Brand was done in the form of 63 in-depth interviews across 6 cities and
3 age segments
❏ CCD had a strong standing in all these segments
❏ CCD was perceived as a young youthful brand, which was reliable and consistent
❏ It was considered as a “comfort zone” for conversation, relaxation, fun and freedom
Perceived Brand Identity Intended Brand Identity (Management)
❏ Youthful
❏ Non-intrusive, non overbearing service
❏ Affordable pricing
❏ Accessible
❏ Comfortable
❏ Quality coffee and brewing skills
❏ Authentic quality of service
❏ Sociable
❏ Dynamic
❏ Respectful
Gaps in Intended Brand Identity

10. Step 3: Exploring Brand Positioning Options
❏ Research among young consumers revealed that coffee did not play an important role in their
decision-making. An emotional connection was more important to these consumers.
❏ Mapping the retail coffee category along two parameters - coffee quotient and appeal
❏ CCD had an opportunity to be a place for social interaction, inspiration, self expression and
international experience at affordable price.
❏ Landor suggested that CCD should shed its’ current “regular guy/girl” image and develop an
“explorer” archetype that reflected a greater sense of aspiration and dynamism and a more
differentiated identity
❏ Propositions were grouped based on brand value & customer research to propose the final
positioning options :
a. Good company
b. Real Coffee, Real Moments
c. Social Hub

11. Step 4: Evaluating the options
Key criteria for evaluation :
- Highly differentiated and should not alienate target customers
- Must be able to drive the customer experience while communicating value
- Must build upon existing brand equity and imagery
Good Company Real Coffee, Real Memories Social Hub
- More evolutionary
- “Me too cafe culture”
- On-the-go young
customers
- Fun and accessible
experience
- Moderate to strong
evolutionary
- Impersonal coffee
houses
- Better shared cafe
experience
- Moderate to strong
evolutionary
- International cafe
experience
- Inspiring forward-
thinking cafe

12. Recommendations
❏ Real Coffee, Real Moments
❏ Captures genuine authentic moments of friendship and community
❏ Strengthens coffee equity
❏ Increases sense of belonging ; need of the society
❏ A better ‘shared’ coffee experience where young people can live in the moment and linger over a great coffee
to create friendship and community
❏ Social Hub
❏ Strengthens exclusionary outlook
❏ Contemporary and stylish
❏ Aligned to the next-gen youth of India who are more interested in socializing
❏ Coffee as a social lubricant
❏ A forwards thinking cafe; a next generation Indian Brand
With increasing exposure and opportunities – the concept of a social hub is a self-sustaining and long term
strategy

13. THANK YOU!