Cafe Coffee day (CCD)

SERVICE MARKETING PROJECT

ON

CAFÉ COFFEE DAY

By

Archana, Hardik, Sanjay, Tirthankar (SIESCOMS)

CAFÉ COFFEE DAY – Table of Index

1. CCD Introduction 02

2. STPD (Segmentation, Targeting, Positioning, Differentiation) 07

3. Perception Mapping 10

4. SWOT Analysis 11

5. Competitors Analysis 12

6. PESTEL (Political, Economic, Social, Technological,

Legal, Environmental) 14

7. 7 PCs P’s Service Marketing 15

8. Strategies (Distribution, Positioning and Focus 43

9. Porters Five Forces 45

10. SPANCO (Tangible / Intangible) 46

11. Recommendations 47

12. Partners 48

13. Conclusion 49

14. Q&A 50

15. References 51

CAFÉ COFFEE DAY - Introduction

Founded in 1996

India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd

Strives to provide the best experience to their guests

Pioneer of the café culture and the first to launch the ‗coffee bar‘ concept in India

Network strength: 1450+ cafés in 172 cities/towns across India and growing

First to roll out the ‗coffee bar‘ concept in India with its first café in Bangalore.

Outlets set up are based on the three formats -- cafe, lounge and square.

Menu ranges from signature hot and cold coffees to several exotic international coffees, tea, food, desserts and pastries and exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available at the cafés

CCD is present in every nook and corner of the country which includes Vienna, Austria and Karachi and plans to open across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future

CAFÉ COFFEE DAY – Introduction Continue…

In 2010, they clubbed all his businesses (except agriculture) under Coffee Day Resorts Holdings.

Existing investors include global PE firms KKR and Co. LP, New Silk Route Partners LLC and Standard Chartered Private Equity have 25% stake

Darby Overseas Investments Ltd—the private equity arm of Franklin Templeton Investments, International Finance Corporation and Deutsche Bank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd

CCD’s SBU

– Coffee Day Fresh 'n' Ground

– Coffee Day Xpress

– Coffee Day Take away

– Coffee Day Exports

– Coffee Day Perfect

– (FMCG Packaged Coffee) division

WHY CAFÉ COFFEE DAY

Average Footfalls: 300 per café per day

Average dwell time at café: 45 minutes

Meeting place for 15-45 year olds

A place where :

Students frequently visit most after ―home and workplace/college‖

Friends and colleagues meet n groups of 3 or more

One rejuvenates and are free to be themselves rather than a place to

be ―seen at‖

The café is also the venue for business meetings (23% ), celebrating special occasions (20%) or just plain ―Time Pass‖ (57%).

Key Target Audience

Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage.

The group comprises of mainly college going students and young working professionals

27%

66%

7%

Professionals

Students

others

Middle class and upper middle class youth

Students, House wives, executives and youngsters

People who value a great cup of coffee

CCD seeks to target not just the youth but anyone who is ―young at heart‖.

1481 outlets in 200 cities

Strong and Stable Parentage

Right Locations

Place a cafe in every possible location where some business can be generated.

To be present in educational institutions and corporate campuses

―Third Place" away from the home and college or workplace for the young and the young at heart.

Coffee Bar

Fun Place

Home and Workplace

Medium Price Brand

Café Coffee Day has its main consumer

base in the age group of 16-30 years.

TARGETING

POSITIONING DIFFERENTIATION

SEGMENTATION

S-T-P-D

POSITIONING STRATEGY

POSITIONING OF DIFFERENT OUTLET

Café Coffee Day

• Coffee lovers

• Youth

• A place for Hang out

The Lounge

• Premium Cafe

The Square

• Exclusive for Coffee lover

– Changing the logo to a ‗Dialogue Box‘ - with the words Café Coffee Day, symbolizes a perfect place to ‗relax and dialogue‘

– Tagline : a lot does happen over coffee!!

New Logo

REPOSITIONING CCD

Perception Mapping

Quality of service (High Involvement)

Quality of service (Low Involvement)

High Price Low Price

SWOT Analysis

SWOT

OPPORTUNITY Fastest growing industries in Asia.

Preferred for informal meetings. Gone international

STRENGTHS Largest retail chain of cafes ISO 9002 certified company Quality and taste Youth oriented brand Reduction in cost (Own Production) USP of brand - Highly affordable brand

WEAKNESS

Weak brand image and lacks strength to maintain brand loyalty

Poor ambience and decor. (Prime space - advertising and promotions)

Wrong site selection – Losses

THREAT Competition with established and

International other coffee cafes like Barista, Starbucks, Costa Coffee, Coffee Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.

Hukka Parlours.

Competitor Analysis

CCD 54%

Barista 26%

costa coffee 14%

others 6%

Market Share

CCD 68%

Starbucks 12%

Gloria Jeans

3% Barista 17%

Share of mind

Competitors

Direct Competitors:

Barista

Cafe Mocha

Costa Coffee

Beyond Coffee

Gloria Jeans

Minerva Coffee Shop

Indirect Competitors:

McDonald

Haldirams

Global Competitors:

Star Bucks

Easy sourcing of coffee beans

Cost control because of Govt regulations

Political

Economic

Social

Technological

Legal

Heavy coffee drinks in South India

Cheaper sourcing maintain quality

Targets youth and middle class

Affordable for a meeting place

Wifi facility at every outlets and music

Digital Marketing for promotions

Environmental

PESTAL

Use Bio degradable products

Ethical and based on customer delight

Less consumer complaints and quick

customer service

7 P’s of SERVICE MARKETING

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE

PEOPLE PROCESS

SERVICE PRODUCT

Core Product

Experience

Supplementary services

Wide range

Merchandising

Ambience

Delivery

Hospitality (Lounge & Square)

Price of the product

SERVICE FLOWER

Facilitating Services Information

- Menu - Website

Payment - Credit Card - Cash - Privilege Card

Billing - at the counter Order Taking

- Assisted by the attendee

Information

Payment

Billing Order –taking

SERVICE FLOWER

Enhancing Services Consultation

- Assistance

Hospitality - Food & Beverage - Music - Wi-Fi - Washrooms

Safekeeping - Credit Card Security - Parking

Expectations - Happy Hours - Privilege Cards

Safekeeping

Hospitality Expectations

Consultation

PRODUCT PORTFOLIO

Food and Beverage Non Food Items B2B

Food Beverage

Deserts Coffee

Coffee Powder Bulk/ Corporate Orders

Snacks Tea

Coffee Machine Catering Services

Cakes Chocolate Shakes

Cups & Mugs Coffee Vending Machines

Sundaes Frappe

Chocolate and cookies

Advertising Space

Heavy Foods (in Lounges)

Fruit Shakes & Lemonades

Apparel & Accessories

Gift Cards & Vouchers

Product Mix Width

Product Line Length

SERVICE MARKETING MIX OF CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE

PEOPLE PROCESS

PRICING STRATEGY

PSYCHOLOGY PRICING

– Pricing the product as Rs 69, 79, 59 etc. rather than in the multiples of ten to give a feel that the product less priced

LOCATION PRICING: On the basis of outlets, prices have been positioned

• Café

• Lounge

• Square

COMBO PRICING

– Clubbing up two or more products on special occasions

PRICING STRATEGY

PREMIUMS PRICING

– Adding things like cream, chocolate sauce and positioning as a premium coffees

VALUE BASED PRICING

– Providing different variants in terms of prices by altering the quantity to give a sense of affordability

SERVICE MARKETING MIX OF CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE

PEOPLE PROCESS

Strategically located outlets

Kiosks in offices

Coffee machines in college canteens

Types of Stores

Café Coffee Day The Lounge The Square

PLACE

Café Coffee Day Store Coffee parlors where people can enjoy the coffee have eatables and hangout with friends

Café Coffee Day Square A unique Café where variety of single origin coffee brews from coffee-growing countries are available

Café Coffee Day Lounge Premium café from Café coffee day target selected group

SERVICE MARKETING MIX OF CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE

PEOPLE PROCESS

Started TVC and Print campaign at the end of 2012

Co Branding in Movie and TV serials

Sales Promotion Activities

– Combo Deal

– Happy Hours

– Privilege cards

– Redeemable coupons

Through Interactive Media

Held Contest around a Very Popular Programme

Tie up lot of youth brands

PROMOTION

WITH THE FOOD: SIDE MENU CARD

Contests have been activated through leaflets/contest forms given out with the menu-card /bill folders

Drop boxes, which also add to prominent visibility, are used to collect all entries to the contest

CONTESTS @ CAFES

ON THE WALL

The most imposing branding option within a cafe for visual communication with minimal amount of text

Tent Cards are the chosen element in the cafes since they are all about “I am here, you cant miss me”

ON THE TABLE: STICKERS & TENT CARDS

EDITORIAL COVERAGE

SERVICE MARKETING MIX OF CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDENCE

PEOPLE PROCESS

PHYSICAL EVIDENCE

Ambience

– Different ambience the look and feel for different outlets

Shop Colour

– Violet for Café coffee day shops

– Sea green for Lounge

– Brown for Square

SERVICE MARKETING MIX OF CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE

PEOPLE PROCESS

PEOPLE

Dressed in a particular uniform

Soft spoken, friendly behaviour

Customer Engagement Activities

– Special Offers on Occasions

(Birthday, Valentine day, Friendship day etc.)

– Online Contests

– Happy Hours

SERVICE MARKETING MIX OF CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL EVIDE

PEOPLE PROCESS

PROCESS

People Processing Services

Minimum Response Time

Complaints and feedback

Assisted by the attendee or the brew master in Lounge and Square

Self Service Counter for Café Coffee Day outlets in Offices / few Malls.

Ordering and delivery earlier was self service and now most of the coffee shops have waiters to take order and deliver at the table

BLUEPRINT FOR SERVICE DELIVERY

Delivers the order

Data entry

SUP

PO

RT

PR

OC

ESS

CO

NTA

CT

PER

SON

(Ba

ck S

tag

e)

(On

Sta

ge)

CU

STO

MER

PH

YSIC

AL

EVID

ENC

E

Prepares Food / Drinks

Informs about the order placed

Customer Arrives at

CCD

Customer walks -in

Line of interaction

Line of visibility

Line of internal interaction

CCD exteriors

Views Menu card

Goes to the table

Furniture CCD interiors Ambience Interior design

CCD boy/girl

Menu

Places order

Sits Chats Waits

Makes the payment Leaves

Requests for bill

Greeted by CCD boy/girl

Takes order

Order received Eats

Receives Food/Drink

Accepts request

Hands over the bill to the customer

Bill generated

Billing system Processes bill

Delivery Tray Food & drinks

Exit way CCD exteriors

CCD boy/girl

PROCESS AT CCD

CHARACTERISTICS OF SERVICES

Intangibility

– Experience

– Taste of Coffee

Inseparability

– Service provided

Perishability

– Availability of tables

Heterogeneity

– Ambience of different outlets

Easy accessibility There is a Cafe Coffee Day outlet in every major city in India and are

easily accessible. Rural area locations Customers in the smaller communities also enjoy good quality

coffee and snacks at affordable costs because the Cafe has set up outlets in the rural areas in India.

Distributors The coffee produced on the Cafe’s farms, are distributed through

wholesalers and retailers to customers who wish to use the coffee at home.

DISTRIBUTION CHANNEL STRATEGY

FOCUS STRATEGY ANALYSIS

Service focused Café Coffee Day Premium Cafes (Lounges)

Unfocused CCD cafe outlets

Fully focused Café Coffee Day Square – an exclusive coffee bar

Market focused CCD Xpress (Kiosk)

Wide Narrow

Many

Few

Service Offerings

No

. of

Mar

ket

Serv

ed

Porters Five Forces

Industry Rivalry

(HIGH)

Threat of new entrants

(LOW)

Threat of Substitutes

(HIGH)

Supplier's Power

(LOW)

Buyer‘s Power (HIGH)

SPANCO - Tangible / Intangible (CCD)

S - Suspect / Security – All Customer who wants to eat snacks Or have a peaceful

Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy food and drinks.

P - Prospect / Profit – All college /school going Students, Kitty goings groups and

business customers. Same price as other notable brand Better taste and crispness Value for Money

A - Approach / Analysis -Analysis Research and customer focused studies on what

Indian customers looking for hot and cold drinks in peaceful good environment. Wished to taste new & innovative products Unique freshness flavour

N - Negotiation / Number Strategy - Change the product Unique Selling

Proposition Offer reasonably good prices quality product and services. Coffee / tea variants High price & high volume Other Varieties (cold drinks and snacks) Low price & high volume

C - Closing / Core need– Offer good services and quality product. Clear cut

differentiated product Existing network of distribution

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.

PARTNERS

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.

ANY QUESTIONS

?

References

Personal experiences

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

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