22350432 cafe-coffee-day

1

BRAND DOSSIER

Cafe Coffee Day

Submitted to: Prof S. Govindrajan

In partial fulfilment of the requirements of Marketing management-1

Group 4:

Uma Balakrishnan

Manish Madhukar

Abhiram Goud

Sourabh Dhariwal

2

CONTENTS Part 1

HISTORY.............................................................................................................................................3

POSITIONING......................................................................................................................................4

ADVERTISING, SALES PROMOTION AND SEGMENTATION STRATEGY......................................................5

PRODUCT ANALYSIS ............................................................................................................................8

GENERIC COMPETITION ......................................................................................................................9

DISTRIBUTION STRATEGY ....................................................................................................................9

COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY ................................................................................ 10

MARKET EXPANSION......................................................................................................................... 11

SUMMARY ....................................................................................................................................... 11

Part 2

PRIMARY RESEARCH PROPOSAL FOR CAFÉ COFFEE DAY ...................................................................... 12

HYPOTHESES: ............................................................................................................................... 12

INFORMATION REQUIREMENTS COLLATED FROM THE RESEARCH ....................................................... 13

INSTRUMENTS OF DATA COLLECTION ................................................................................................ 13

QUESTIONNAIRE............................................................................................................................... 15

SAMPLING PLAN ............................................................................................................................... 18

Part 3

METHODS OF DATA ANALYSIS ........................................................................................................... 18

HYPOTHESIS 1 .................................................................................................................................. 19

HYPOTHESIS 2 .................................................................................................................................. 22

HYPOTHESIS 3 .................................................................................................................................. 24

HYPOTHESIS 4 .................................................................................................................................. 26

ANNEXURE ....................................................................................................................................... 28

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PART I- BRAND DOSSIER INTRODUCTION

HISTORY ABOUT CAFÉ COFFEE DAY

Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading

Company Ltd. (ABCTCL), popularly known as Coffee Day. This is a Rs. 300 crore ISO 9002 certified

company. Its chief customers are in USA, Europe & Japan. Based in Chickmaglur, the home of some of

the best Indian Coffees, Coffee Day has its business spanning the entire gamut of coffee consumption in

India. Its different divisions include:

Coffee Day Fresh n Ground (354 Coffee bean and powder retail outlets)

Coffee Day Xpress (341 Coffee Day Kiosk) Coffee Day Take away (7000 Vending Machines)

Coffee Day Exports

Café Coffee Day Coffee Day Perfect (FMCG Packaged Coffee) division

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its fi rst café at Brigade

Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to the intellectual,

the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant

coffee) coffee café culture in neighbouring international markets grew, the need for a relaxed and fun

“hangout” for the emerging urban youth in the country was clearly seen. Recognizing the potential that

lay ahead on the horizon, Café Coffee Day embarked on a dynamic journey to become a large organized

retail café chain with a distinct brand identity of its own.

CAFÉ COFFEE DAY IN THE PAST 12 YEARS:

1996

1st café in Bangalore

2001

14 cafés in 6 cities

4

POSITIONING

Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India. At a time when the

country was growing well economically and young India enjoyed higher spending power, CCD as it is

popularly known, started to set up the first retail chain of coffee bars. It broke new ground in 1999 when

the entire market grew phenomenally with the entry of new players.

From the beginning, it positioned itself as being a coffee bar and has maintained that positioning for a

long time now. For a consumer, CCD represents a “fun place” where one can go with a whole bunch of

friends at any time of the day and have a good time, over coffee.

In 2002, Café Coffee Day underwent a rebranding exercise through a change in its logo. The earlier logo

was a simple red square with a white streak running across, and ‘Coffee Day’ written at the bottom. At

this stage, CCD was still perceived as a South Indian coffee joint similar to the Coffee House in Kolkata, a

place where intellectuals meet and spend their time discussing issues. CCD saw a latent market in

youngsters, who were increasingly looking for a place to spend time with friends and have fun. It then

created an umbrella mother brand, Coffee Day and four sub-brands to represent the various activities.

The logo then incorporated red, white and green colours, a larger font and emphasis on the word ‘Café’.

According to the company, red signifies leadership and passion and the white swirl stands for purity of

purpose and the feel of coffee. The new colour green endorsed the long heritage of CCD in growing

coffee.

2008

607 cafés across 98

cities, and in Pakistan

and Austria

Near Future

Expanding to Middle

East, Eurasia, East

Europe, Egypt, S.E Asia

5

Café Coffee Day is known to experiment with different café formats. They have been:

Music cafés

Books cafés Highway cafés

Lounge cafés

Garden cafés Cyber cafés

The most recent addition has been lounge cafes. These cater to a more niche segment than the general

consumer segment of CCD. The age group of 20-29 would be more able to afford a lounge setting than

the group of 15-19.

ADVERTISING, SALES PROMOTION AND SEGMENTATION STRATEGY

Café Coffee Day does not look at mass media as a viable area of advertising or marketing spend. CCD is

advertised through barter deals with other brands for ground events

BELOW-THE-LINE ACTIVITIES:

2003- Levi’s launched a new range of Low Rise jeans through a campaign called ‘6” below’. CCD displayed POPs of Levi’s in all its outlets during the campaign.

2004- The launch of Liril Orange soap by HLL was conducted in Café Coffee Day.

2004- TVS Scooty tied up with CCD for events in the coffee bars and at malls on Valentine’s Day in February.

2004- CCD was the official ground partner for the Channel V Get Gorgeous contest

IN-FILM ADVERTISEMENTS:

Some Telegu and Tamil films with prominent brand placement Hindi films- It started with Bas Yun Hi and then conscious advertisement decisions were made

for Khakee, Main Hoon Na, Kyun Ho Gaya Na and Mujhse Shaadi Karoge. All these movies were targeted at young movie-goers, teenagers and people looking for light-hearted

entertainment. These are much the same kind of people who are likely to visit Café Coffee Day.

Serials like Kahani Ghar Ghar Kii, but there are no important tie-ups with such entities.

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SALES PROMOTIONS:

Merchandising- Every CCD stocks merchandise ranging from coffee mugs, T-shirts, caps, bags, coffee filters, mints, different flavours of coffee powders, tea and cream, wafers and biscottis. It also merchandises promotional materials for other brands it associates with. When some brands are conducting events for which passes are distributed or movie premiere tickets are given out, CCD is an important hub for these activities as most of the target market.

CCD’s Guide to Active Holidays- It is a travel guide focusing on adventure sports and is available in the CCD outlets, for people seeking escapade from monotonous life.

Café Beat- An in-house magazine which gives the entire low-down on what’s happening in CCD outlets across the world. It describes experiences of customers, celebrations in CCDs, and covers youth-centric topics like movies, music, travel, lifestyle, e-dating, books and careers. Around 38% of CCD goers read Café Beat and some carry it back with them.

CCD has now tied up with WorldSpace and Microsense to provide satellite connectivity in its outlets.

SEGMENTATION STRATEGY:

Café Coffee Day has its main consumer base in the age group of 15-29 years. Its customers are mainly

middle class and upper middle class youth who are upwardly mobile. From the market, CCD see ks to

target not just the youth but anyone who is “young at heart”. More than 10% of their customers are

above 35 years of age. The evidence of the connect CCD has been able to make, particularly among the

youth, comes from the findings of Brand Equity's Most Trusted Brands 2008 survey. In the food services

category, CCD ranks No 2, while McDonald’s stands at No. 3 and Barista lags at No 5.

The graph below indicates official figures for the type of consumers of CCD. We can clearly see that its

most profitable segment is the 20-24 age brackets. These customers can afford to visit CCD on a regular

basis and have a habit-forming attitude towards CCD.

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PRODUCT ANALYSIS

Café Coffee Day has different café formats across different cites. They can be categorized into Music

Cafés, Book Cafés, Highway cafés, Lounge cafés, Garden cafés, and Cyber cafés. Every format has a

different feel to it.

Also, Café Coffee Day changes or makes fresh additions to its menu from time to time. This includes

having specialty coffees from different countries, exotic desserts and pina coladas. Since the target

consumer is of an age where one constantly seeks change, this makes sure that the consumer does not

get bored with a repetitive style and seeks new places to go to.

Café Coffee Day has changed its interiors twice since inception. First, during its rebranding in 2002,

where it brought in big photographic wall mounts of coffee experiences, and yellow chairs and marble

tables. In 2006, it again changed its décor to cane chairs to give the outlets a more causal feel. Café

Coffee Day has hence constantly reinvented its look to keep up with the ever-changing wants of its

consumers.

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GENERIC COMPETITION

DIRECT COMPETITORS:

Barista- This is the closest competitor to Café Coffee Day in the Indian market. They target the same class of upwardly mobile youth and young professionals. But Barista is often viewed as a place to unwind after a hard day’s work or an ideal setting for some business meetings.

Café Mocha- This aims at providing a level of experience to the consumer which is hard to imitate. Inspired by Morocco and Turkey, Mocha offers not just coffee but also sheeshas from Egypt and gourmet desserts. Mocha calls itself ‘a coffee shop for the soul’.

Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in South India.

INDIRECT COMPETITORS:

Eateries like McDonald’s and Haldiram’s pose competition to CCD as they are likely attractions for a consumer to be drawn to. A consumer can well contemplate why he should spe nd around Rs. 45 on a coffee when he can get a burger and a coffee for the same price at McDonald’s.

Local tea joints and coffee shops like Café Nescafe- They are smaller places but nevertheless target the same set of consumers. Hence, CCD has to consider the threat a shop like this could pose to it.

GLOBAL COMPETITORS:

Starbucks is planning to enter India shortly and would be stiff competition for even an established brand like CCD.

Coffee bars in the market of the other country that Café Coffee Day is entering is also be a factor CCD will have to plan for before entering a market

DISTRIBUTION STRATEGY

Today CCD has the largest network of cafes in India, with over 607 ‘Company Owned Company

Operated’ cafes across 98 cities. But they do not follow a franchising strategy. The channel partner has

no involvement in the daily operational activities of the Café in the retail space. Neither would he have

to invest in operational capital equipment or branding or marketing and promotion of Café Coffee Day.

CCD opted not to follow forward integration and outsourced its distribution responsibility to other

parties in 2003. As its reach spreads across India and it is now exploring smaller towns, CCD would find it

more expensive to maintain on its own. The private players would procure raw materials like sugar and

paper cups but coffee beans would still come from Bangalore.

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COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY

Café Coffee Day which follows a backward integration of the value chain procures coffee beans from its base in Bangalore. This gives it a high sense of quality assurance and guaranteed supply across its outlets as the same raw material is used in all outlets. But Barista is a combination of imported coffee beans and beans from Tata coffee. This is a relative disadvantage because if there is a discrepancy in the quality or supply, Barista would have to consider alternatives and probably look for another supp lier.

Similarly, the food items available in Café Coffee Day are obtained from local suppliers whereas Barista’s food is catered by the Taj caterers. Café Coffee Day would hence, have a lower-cost advantage.

The brand strength of Café Coffee Day in comparison to Qwicky’s and Café Nescafe is far greater and its reach is on a countrywide scale. A consumer travelling across cities would not find it too difficult to seek a Café Coffee Day outlet instead of deciding on trying a Qwicky’s, which he is not accustomed to.

Café Coffee Day has an advantage of top-of-mind recall for coffee-shop-goers in India, especially because it set the café ball rolling in the country.

It is a place where a lot of young people can meet, chat, have fun and let their hair down, rather than sit and sip a cup of coffee in prim and proper serenity. This is one of the main factors for why it is chosen over places like Barista or Mocha.

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MARKET EXPANSION

Recently, Café Coffee Day entered a tie-up with the Ginger hotels of the Taj. This caters to business

executives and is on a Smart basics’ platform. The outlet would be open to all, and not just the hotel's

guests. The aim is to increase footfalls in Ginger and increase the reach of Café Coffee Day. This way,

CCD can reach out to another set of consumers, apart from the young crowd it has mainly catered to.

SUMMARY

Café Coffee Day is now looking at more café formats to try in new outlets. They are planning on having

sports cafes, singles’ cafes and fashion cafes. Also, CCD is planning on opening more lounge cafes across

the country. Like it did with Ginger hotels, CCD can also try and find consumer segments which it did not

earlier think of catering to.

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PART II-RESEARCH PROPOSAL

PRIMARY RESEARCH PROPOSAL FOR CAFÉ COFFEE DAY

Café Coffee Day is looking at fresh growth opportunities and is reaching out to new markets. Some

factors supporting its endeavours are that it has a wide reach and is perceived as more than just a coffee

place. Teenagers and ‘yuppies’ are its major market and hence the place is more informal as compared

to a traditional coffee house. The ambience is that of a relaxed environment and hence acts as a perfect

hangout zone for target customers. Hence all the plans chalked out for expansion revolve around these

aspects.

Taking these points into consideration, we have framed the following list of hypotheses for our research.

HYPOTHESES: 1. A lot can happen over coffee

CCD positions itself as much more than a conventional coffee shop. It is seen as a ‘fun place’ where

youngsters come in groups and have a good time over a cup of coffee. CCD hence is perceived as a

hangout zone, meeting place for business purposes, enjoying one’s private time etc. CCD provides

facilities like Wi-Fi and WorldSpace and other merchandise in order to pull in more customers. We aim

to study whether this actually holds true.

2. In sight, therefore in mind

CCD has 620 cafes spread across 102 cities. Its pan-India presence gives it a huge advantage over

competitors. Our hypothesis aims to prove that high visibility is one of the reasons for CCD to enjoy top-

of-mind recall and high number of loyal consumers.

3. Service quality deteriorates with proliferation of outlets

Having a large number of outlets can also prove disadvantageous for CCD. With increased hiring, it is

possible that employee training is not stringent enough, decreasing the quality of service at the outlet.

Through analysis of consumer experiences, we will try to find out if they feel this is true.

4. Format cafes – the future lies here

13

As mentioned in the Literature Review, Cafe Coffee Day is planning to introduce different cafe formats

such as Sports Cafes, Singles’ Cafes and Fashion Cafes. It is also looking to increase the number of lounge

cafes. Our study will hence look into whether this kind of expansion is feasible for CCD or not.

INFORMATION REQUIREMENTS COLLATED FROM THE RESEARCH

From this study we will try to look into the following factors:-

Consumer Profile

The consumer profile of Cafe Coffee Day is perceived to be that of upwardly mobile teenagers and

youth. By having a clear idea of who the consumers are, the company can chalk out new plans and

activities targeted specifically at this age group.

Consumer Preferences

Consumer preferences can be studied under the following parameters:

a. Preferred coffee joint

b. Factors behind choosing Cafe Coffee Day

c. Most popular aspects of Cafe Coffee Day

d. Inclination towards format cafés.

Factors Influencing Choice

There are different reasons for different people to visit Cafe Coffee Day. We aim to assess what, out of

many factors like accessibility, ambience, quality and menu, drive people to choose Cafe Coffee Day.

Consumer Perception

Our research would also like to judge the perceived image of Cafe Coffee Day in the minds of its

consumers. This could be in relation to price, quality and image.

INSTRUMENTS OF DATA COLLECTION

When conducting any type of research, data collection inevitably becomes the main phase. Data

collection refers to gathering opinions and views of sample respondents in order to get a structured

view of what consumers think. To further our objective, we have chosen the following methods of data

collection:

Primary Data

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1. Written Questionnaire- We plan to use a structured questionnaire with close-ended questions

and get a section of respondents to answer these questions.

2. Personal Interview- This will be used to garner subjective information from respondents, which

is not possible with close-ended questionnaires. Also, questions with options like ‘othe rs’ can be

answered effectively with personal interviews.

3. E-mail Questionnaire- We shall be sending questionnaires by e-mail also. These can be answered

by respondents at leisure and without inhibitions. It will also give us a wider spectrum of consu mers to

consider.

Secondary Data

1. Website of the company.

2. Online consumer forums like www.mouthshut.com

3. Communities of coffee lovers and youth.

4. Newspapers and magazines.

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QUESTIONNAIRE Name:

Age:

Sex:

Occupation:

1. Name three coffee shops that you know

a.

b.

c.

2. How often do you visit a Coffee Shop?

a. 2 – 3 times a week

b. Once a week

c. Once in two weeks

d. Once a month

e. Very rarely

3. How much money do you spend at a Coffee Shop? (in Rupees)

a. Less than 40

b. 40 – 80

c. 80 – 120

d. Greater than 120

4. On an average, how much time do you spend in a Coffee Shop?

a. Less than ½ an hour

b. ½ an hour to 1 hour

c. 1 hour to 2 hours

d. More than 2 hours

5. How many people do you go to a coffee place with?

a. Alone

b. 2 – 4

c. 4 – 8

d. More than 8

6. Why do you go to a coffee shop?

a. Only to have coffee

b. To enjoy my private time

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c. Catch up with friends

d. For group activities(group studies, presentations, meetings)

7. What do you look for when u choose a coffee shop to go to?(Rank in order of preference 1-

highest , 5-lowest)

a. Convenience/accessibility

b. Ambience

c. Service

d. Quality of food

e. Price

8. Why would you go to a Cafe Coffee Day? (You can choose more than one)

a. Convenience/accessibility

b. Ambience

c. Service

d. Quality of food

e. Price

f. Others(please specify)

9. What do you normally eat or drink in a Cafe Coffee Day? (You can choose more than one)

a. Coffee

b. Smoothies and similar drinks

c. Desserts and confectionery

d. Eatables like sandwich, samosas etc

10. Rate the following factors for Cafe Coffee Day (Tick the choice most applicable)

Excellent Good Average Satisfactory Poor

Staff behaviour

Value for money

Availability of preferred items

Delivery time

Quality of food/drinks

17

11. Ambience (Tick your preference)

a. Comfort and Feel - relaxed / just comfortable / congested

b. Lighting and Colour - bright / sufficient / dull

c. Entertainment - engaging / I don’t mind it / irritating

d. Table Space - adequate / sufficient / not enough

12. Are you aware of the different ‘formats cafes’ Cafe Coffee Day is coming up with?

Yes No

13. Will you prefer format cafes to a normal Cafe Coffee Day?

Yes No

14. If you had to choose, which of these café formats would you prefer (You can choose more

than one)

a. Music cafes

b. Book cafes

c. Lounge cafes

d. Garden cafes

e. Cyber cafes

f. Sports cafes

g. Singles cafes

h. Fashion cafes

15. Do you have any suggestions to improve Café Coffee Day?

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SAMPLING PLAN

• Who Are We Surveying?

Our study of consumer opinions is concentrated on coffee -drinkers, youngsters and young urban

professionals or ‘yuppies’. These people come within the age brackets of 15 and 29, which is the main

consumer segment for CCD. Apart from them, we are also looking at some respondents from the 30-40

age band. This is because a part of our research would be to find out whether CCD can expand its target

market to this age group as well.

• How Many People Will We Survey?

We plan to take a sample size of 60 respondents. This would include people from the segments

mentioned above. We will divide these samples among the youth accessible to us, teenagers across

Kolkata and professionals and older people.

• How Will We Choose Our Respondents?

Samples will be chosen according to a combination of sampling procedures:

Convenience sample is one of the methods we will be using, as a part of our respondents are easily

accessible to us.

Judgment samples will also be used as we shall be choosing a set of consumers who can give us

considerably accurate information. With a brand like CCD, we cannot resort to street-corner sampling as

we need people who are aware of the brand and the food services industry.

METHODS OF DATA ANALYSIS

Customer opinion and views are important in shaping a company’s business plans and working on areas

to further improve its services. The following are the tools we will e using to analyse the data gathered

from the research:

Pie Charts- They show the diversity in the demographics of Café Coffee Day ’s customers. They

will also show us what percentages of customers prefer certain cafe formats, certain menu items etc.

Frequency Distribution graphs- They will show us similar divisions in customer habits and trends

appearing in responses.

Measures of Central Tendency- These will help us know the concentration of respondents

leaning towards a particular option.

Correlation and Regression- These can be used to find relationships between two variables like

age and spending behaviour.

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PART III- FINDINGS OF SURVEY

HYPOTHESIS 1 A lot can happen over coffee

The statement above is the tagline of Café Coffee Day. It explains in a concise way how Café Coffee Day

is not just a place where one comes for a cup of hot coffee. CCD positions itself as much more than a

conventional coffee shop. It is seen as a ‘fun place’ where youngsters come in groups and have a good

time over a cup of coffee. CCD hence is perceived as a hangout zone, meeting place for business

purposes, enjoying one’s private time etc. CCD provides facilities like Wi-Fi and WorldSpace and other

merchandise in order to pull in more customers. This is what we aim to prove from the following

questions.

Q4. On an average, how much time do you spend in a coffee bar?

If the main reason for a person to visit a coffee bar was just the coffee he can have, it would not take

him more than half an hour. Else, going to such a place with a purpose would entail spending longer

hours there. From the graph below, one can observe that the highest number of respondents s pent one

to two hours in a coffee parlour. We can infer that there is a reason more than just coffee behind this.

Q6. Why do you go to a coffee bar?

There can be several reasons for people to go to coffee bars. One would want to go read a book, meet

friends, meet a colleague, do some office work or just spend some time alone. It is an escape from the

humdrum of everyday life. We have tried to find out the major reasons attributed to visiting a coffee

bar.

0

10

20

30

40

less than half

an hour

half to one

hour

one to two

hours

more than two

hours

Average Time Spent at Coffee Bar Q4

No

. of

Re

spo

nd

en

ts

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Q12. Will you prefer a format café to a normal CCD?

Café Coffee Day has launched different format cafés in the past one year and is planning to launch a few

more. The company is setting up cafes based on particular themes like Music cafes, Book cafes and the

like. For example, a music café would have its décor completely based on musical greats, walls painted

with pictures of instruments and different music-centric aspects. We have tried to analyse if people

would actually want to go to a coffee bar of these types.

18.33

30.00

73.33

11.67

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Reasons for Visiting Coffee Bars

Only coffee

Enjoy private

time

Catch up With

Friends

Group

Activities

Pe

rce

nta

geQ6.

yes70%

no30%

Prefering Format Cafe over normal CCDQ 12.

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Q3. In one visit, how much do you spend at a coffee bar?

One cup of coffee at a tea-shop on a street corner would not cost more than Rs. 4-7. A vending machine

would not charge a consumer more than Rs. 15. Yet, at coffee bars like CCD and Barista, people do not

mind paying a far higher price for one cup of coffee.

INFERENCES

From the first graph, one can see that a large chunk of respondents spend one to two hours at a coffee

bar. Also, 73.33% of these 60 respondents say that they visit coffee bars to catch up with friends. One

can also meet friends at a park, a mall or at his/her house. But with increasing propensity to spend,

consumers do not mind shelling out a few extra bucks at a coffee bar as it gives them a good place to sit,

chat and spend leisure time. The graph of question 3 suggests this. The second graph also suggests that

30% of respondents like to spend their private time at a coffee bar, which would mean that the place

gives them the atmosphere to let their hair loose and do something apart from their monotonous life.

The pie-chart above shows that 70% of respondents would go to a format café. These cafes are based on

themes specific to them. The theme would decide activities, ambience, music, visual cues and other

aspects indigenous to the format. If a book café gives consumers the environment to read and discuss

books, avid readers would haunt the coffee joint.

From the above analyses, we infer that apart from coffee which one can get at a roadside cabin or at

one’s home itself, consumers would actually go to a café to have fun, do group work and relax, rather

than just buy a cup of coffee.

0

5

10

15

20

25

less than 40 40 - 80 80 - 120 more than 120

Average Expenditure per head per visit Q3

22

HYPOTHESIS 2 In sight therefore in mind

CCD has 620 cafes spread across 102 cities. Its pan-India presence gives it a huge advantage over

competitors. Our hypothesis aims to prove that that high visibility is one of the reasons for CCD to enjoy

top-of-mind recall and high number of consumers. From the following questions we will be able to prove

this hypothesis.

Q1. Name three coffee bars

We use this question to get an idea about the top of the mind recall value which is associated with a

particular brand.

Moreover, most of the respondents have given accessibility/convenience a top priority on selecting a

coffee bar. CCD scores highly in this area as well.

0

10

20

30

40

50

60

First Preference Second

PreferenceThird Preference

Others

Barista

CCD

23

INFERENCES:

From the graph given above we can infer that most people respond CCD as the coffee bar of first

preference. This proves that CCD is one brand which uses its large number of outlets to great advantage

because of which it enjoys high recall value in the mind of customers. Not to mention that because of

high accessibility which is a result of large number of outlets people find it more convenient to locate a

CCD as compared to other coffee bars.

0

0.5

1

1.5

2

2.5

3

3.5

4Snake Diagram

General

CCD

24

HYPOTHESIS 3

Service quality deteriorates with proliferation of outlets

Having a large number of outlets can also prove disadvantageous for CCD. With increased hiring, it is

possible that employee training is not stringent enough, decreasing the quality of service at the outlet.

Through analysis of consumer experiences, we have tried to find out if they feel this is tru e.

Under Q7 and Q8, we asked consumers to rate different features they feel a coffee bar should give them

in terms of convenience, ambience, price, speed of service etc. Again, they were asked to rate how they

think CCD has performed in these factors.

0

0.5

1

1.5

2

2.5

3

3.5

4

Snake Diagram

General

CCD

25

INFERENCES

The above graph gives us a comparative analysis of how consumers rate their expectations from a coffee

bar and how well they think Café Coffee Day has done to meet their expectations. On a weighted

average scale, the ratings of all 60 respondents were plotted on the graph to form a snake diagram. The

blue line shows that convenience plays a major role when they choose which coffee bar to go to. On this

parameter, CCD has performed better than expectations, thus giving consumers a sense of delight. In

general, people give importance of 3.25 to convenience while CCD offers them convenience of 3.37. But

on behaviour of staff, CCD gives them service of weighted mean of 2.97 while they expect service of

weighted mean 3.1. Also, staff behaviour expected is at 3.27 while CCD has been rated as 3.18 in this

aspect. This shows that CCD has expanded and increased its number of outlets to give consumers

greater accessibility to their cafes. But service quality of CCD has not been able to keep up. Behaviour o f

the staff has not been upto expectations and at times is an irritant. Speed of service is also slow and

consumers come away with a sense of dissatisfaction.

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HYPOTHESIS 4 AND INFERENCES

Format cafes – the future lies here

Cafe Coffee Day is planning to introduce different cafe formats such as Sports Cafes, Singles’ Cafes and

Fashion Cafes. It is also looking to increase the number of lounge cafes. Our study has looked into

whether this kind of expansion is feasible for CCD or not.

Q11. Are you aware of the different format cafes CCD is coming up with?

This question analyses how much consumers know about CCD and its new ventures. Format cafes have

already been started in Bangalore and a few other cities. But the pie chart below shows that very few

know about it.

23%

77%

yes

no

27

Q12. Would you prefer a format café to a normal CCD?

This chart again shows us that people would a whopping 70% of respondents, though unaware of the

new concept are ready to give format cafes a try. A large number of them prefer music cafes as seen

below.

This proves our above hypothesis that format cafes would be a smart way for CCD to maintain its

position as an innovative coffee bar and stay in touch with wants of consumers.

yes70%

no30%

Prefering Format Cafe over normal CCDQ 12.

0

10

20

30

40

50music

book

lounge

garden

cyber

sports

singles

fashion

28

ANNEXURE DEMOGRAPHICS

AGE:

The median age of respondents is 22

Mena age: 23.0667

SEX:

Males: 42

Females: 18

GEOGRAPHIC DISPERSION:

Respondents were geographically dispersed constituting major cities of India.

Male70%

Female30%