Amit Ccd Final

A lot can happen over coffee


Industrial Background


Introduction:

Coffee occupies the third slot after tea and milk in the domestic market. Non-drinkers and

occasional coffee drinkers, who account for 78% of the country's population, are the prime

target for the Coffee Board and retail chains for promoting consumption.

According to the study done by the Gallup and Coffee Board, the top of mind recall for teas

in the country is 66% as against 22% for coffee. Speaking on opportunities for coffee

retailing in India, the country's coffee consumption topped 85,000 tonnes in 2006. Though

coffee has been in a commanding position in the southern states, tea also has an equal share.

There is a great scope for increasing coffee consumption amongst occasional drinkers and

non-drinkers.

Coffee has to compete with other beverages to get its share of throat. Marketers have to target

younger consumer, and come with new and appealing patterns. Coffee can be easily

associated with wellness, health and youth. The market potential is $100 million.

INDIA -- Domestic consumption of coffee shows a steady increase. This fact is happening in

the same time with the fast food segment growing at the rate of 40% every year. In the next

couple of years, coffee chains in India are expected to grow at an annual rate over 30%.

From being a traditional beverage consumed mainly in South India, coffee now has a

national presence, consumed in several forms and retail formats.

The results have been dramatic: domestic consumption of coffee last year increased by nearly

one-third, from 60,000 to 80,000 tons.


The Coffee Café Industry

The Coffee Café industry is currently one of the biggest and fastest growing sectors in

business. The industry consists of a mix of individual cafés, hotel cafés and retail café chains.

India has always been predominantly a Chai (Tea) drinking nation. India is famous for

drinking tea .people in India irrespective of the Class, religion and place are fan of tea. Coffee

remain in a distinct position compared to tea. However in these days coffee consumption is

increasing in India. Indian coffee Board is promoting coffee and it seems that their

promotional activities are yielding good result.

Coffee has been only moderately popular in some southern states, other than that it has been

Chai (Hindi term for Tea), Chahaa (Marathi term for Tea), cutting (Mumbai term for half tea

cup), maramari (another popular term from western India for tea) all the way!

However, there has been a sudden change in this trend with coffee becoming more and more

popular in recent times especially among the younger population. The roadside Chai (Tea)

thelas (shops) outside colleges and offices have been replaced by hip coffee joints like Barista

and Café Coffee Day. The Chai (tea) that used to cost couple of rupees (5 cents) is replaced

by coffee costing something like Rs. 100 ($2.50).

The organized coffee retail business in India is over Rs.8 billion ($17 million), and the

potential for coffee retail outlets are nearly 3,000.

With the Indian middle class consumer ready to spend more and be a part of global lifestyle

and culture, coffee parlours in the country are on an expansion spree.


From small-sized coffee parlours to classy coffee lounges leading coffee retailers such as

Café Coffee Day, Barista, Costa Coffee and Coffee World have all been fighting hard to lure

India’s growing middle class.

Individual Cafés:

The main bulk of revenue is earned by small, individual cafés, run mostly by families and

friends. It is a relatively unorganized sector. There are millions of such cafés around the

world, and they provide customers with a homely, casual experience.

The bulk of these cafés are mainly in Europe, where every little town or village has local

cafés, where people gather together for a conversation over coffee, or just to be alone with

their thoughts.

These cafés have been the birthplace and sanctuary for various creative minds,

revolutionaries and thinkers of our time. The most recent example is the author J.K. Rowling,

who has written most of the Harry Potter series of books, sitting at her local café.

These cafés set themselves apart from retail chain cafés and hotel cafés because they provide

customers with a homely, classic appeal, which cannot be emulated.

Hotel Cafés:

Ever since the popularization of coffee, hotels all over the world started opening 24-hour

coffee shops where visitors to the hotel could walk in for a cup of coffee and some food at

any time.

These coffeehouses are extremely important, because they provide international visitors to

the hotel with a universal drink- coffee. Any customer can walk into any major hotel in the

world, and enter the coffeehouse, and know what to expect. These cafés are not really major

players in the coffee café industry, but rather provide supplementary services to the hotel

industry.

Retail Café Chains:

The last, and the most organized sector in the coffee café industry, is the retail café chain. Off

late, these chains have become extremely popular and are growing at an ever-increasing pace.


These retail chains have work with an organized structure of man, material and money. The

work on developing a recognized brand consistent to all their outlets, which customers can

easily relate to, wherever they go. They provide customers with a standardized level of

service and quality at each of their outlets. Tiff in also.

The vintage location of the mess attracts huge crowds even today early in the mornings,

Coffee however was not the only item on the menu. These places also served food and other

drinks to their customers.

The drink also became famous and as a result even five star hotels began cashing in on it.

Several hotels all over the country started opening coffee- shops that catered to high- end

customers. This showed the popularization of coffee cafés, to all sections of society.

The drink has now become more of a concept than merely a drink itself. The last decade

witnesses the growth of numerous coffee pubs in the country. A number of coffee café

owners tried to westernize the taste in contrast to the filter coffee.

Now, large retail chains like Qwikys, Barista, and Café Coffee Day have opened up around

the country. The concept of a café today is not merely about selling coffee, but about

developing a national brand. Retail cafés now form a multi- crore industry in the country,

and have huge potential for growth locally, and internationally.


Major Competitors

As coffee culture gets bigger in India, a traditional tea drinking nation, domestic and

international chains are lining up big expansion plans to the tune of nearly Rs 325 crore in the

next 3-5 years.

Majors players like Barista, Costa Coffee, Cafe Coffee Day and Barnie's are already

working overtime to expand their presence in the country and implement product portfolio

overhauls. On the other hand, global player Starbucks Corporation is all set to make its

India debut in 2007.

All café chains, are looking to cash in on the booming coffee retail in India, which is

expected to grow at an annual rate of over 30 per cent in the next couple of years on the back

of patronage from the young population in the 18-25 age bracket with a growing disposable

income.

The latest to announce big plans for expansion in the Indian coffee retail market is UK-based

coffee shop chain Costa Coffee. The company is doing an investment of Rs 150 crore to set

up 300 outlets in the next five years. Costa is taking steps to widen its menu, including

addition of a range of wraps. It is also in the process of fine-tuning an India specific menu to

appeal to the local palate.

In the wake of increased competition, Barista, one of the first players, is making an

investment of Rs 50 crore this fiscal to add around 100 new stores. It plans to have a total of

250 outlets by end of this fiscal and take it beyond the metros to smaller cities.

US-based coffee store chain Barnie's had said it would invest Rs 75 crore while announcing

its foray in the Indian market. It will open 300 stores across the country in the next five years.


In the first year itself they are looking at setting up 25 stores in the country and the company

would open stores at Bangalore, Mumbai, Chandigarh, Jalandhar and Lucknow.

Another major player in the segment part of Amalgamated Bean Coffee Trading Company

Ltd, Café Coffee Day is looking at an investment of about Rs 35-50 lakh per outlet. Cafe

Coffee Day has already made plans to open toyal 500 outlets across India by 2007.

While the existing players are looking at consolidating their businesses, US-based coffee

retail giant Starbucks Corporation is planning to enter India with its expected debut in 2007.

They are looking forward to offering the finest coffee in the world to customers in this

country within the next 18 months.


Chapter-2

PROBLEMS OF THE ORGANIZATION

The project aims towards accomplishing the objective of a comprehensive study of customer

satisfaction at Café Coffee Day and the sales promotion strategy of Café Coffee Day, New

Delhi. A customer understanding is the primary goal; organization exists for no other reasons

than to meet customer needs and expectations. It is important to develop proactive methods

for understanding the customer needs and expectations. Other wise, a long queue of

competitors is lined up to grab the opportunities to move ahead.

This topic has been chosen to explore consumer satisfaction towards the products and

services of Café Coffee Day and also to analyze the sales promotion strategy of Café Coffee

Day in New Delhi Market

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first 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 neighboring

international markets grew, the need for a relaxed and fun “hangout” for the emerging urban

youth in the country was clearly seen.


The café is a meeting place for 15-29 year olds, both male and female who are served the best

coffee by friendly and informed staff, in an uplifting and invigorating ambience. Research

shows that teen-agers form 25% of our customers while 38% of the customers are between 20

and 24 years and another 23% belong to the age group of 25-29 years. Students and young

professional comprise around 72% of our customers. 18% of the customers visit the cafes

daily while another 44% visit weekly. Each café, depending upon its size attracts between

500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Café

Coffee Day as the place they frequent most after “home and workplace/college”. It is a place

where they meet friends and colleagues, in groups of 3 or more; a place where they

rejuvenate and are free to be themselves rather than a place to be “seen at” vis a vis other

cafes.

The problem arises when he wants a ‘Powerade’ but can’t afford it. He can, however, satisfy

his need by buying another beverage. This “creation” is the result of active and inactive

problems. Where physiological needs such as the need for food and water are involved, the

problem recognition may be a slow dawning or may lead to a sudden impulse for the

consumer. This also poses a problem in creating a brand image for the organization. Café

Coffee Day use their physical evidence to promote and develop their brand. Also, considering

that 40% of the sample stated Ambience/ Experience as the deciding factor in their choice of

a coffeehouse, a lot of emphasis needs to be placed on this aspect.

Coffee was first known in Europe as Arabian Wine.

Coffee is presently the second most traded commodity in the world. It is second only to

oil.

Nescafe was invented by Nestle because it had to assist the Brazilian government to solve

its coffee surplus problem.

2.2 PURPOSE OF THE STUDY


To understand the satisfaction level of the customer regarding the quality provided by nestle,

to understand what are the customer requirement and improvement required by them in

product.

To know the customer satisfaction level towards quality of maggi.

To know the problems presently faced by the customers in maggi.

To study the post sales service performance.

To know the new area of improvement.

Objectives of Study

During this project my objectives were –

Understanding the expectations and requirements of all customers.

Determining how well company and its competitors are satisfying these expectations and requirements.

Developing service and/or product standards based on findings.

Examining trends over time in order to take action on a timely basis.

Establishing priorities and standards to judge how well company met these goals.


SCOPE OF THE STUDY

The research is based on the evaluation of customer satisfaction of café coffee day. For this

research the researcher has identified and worked on brand management, brand positioning

and branding in common. The research has some drawbacks according to the researcher like

the time constrain and location of the researcher and the topic.

The data collecting tool was focus on group discussion and interview for the research. The

research concluded with the analysis of positive brand positioning in the minds of customers

and offer consistent high quality, unbeatable freshness, and great services so that customers

can be trusted everyday.


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

World Space and other merchandise in order to pull in more customers.

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 spent one to two hours in a coffee

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

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.

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.


Chapter-3

Company Profile

.

Mr.V.G Siddhartha, Chairman CCD initiated his business interests in coffee by incorporating Amalgamated Bean Coffee Trading Company Limited (ABCTCL) in the year 1994. From Exports to commodity trading and building a

brand, Coffee Day entered with ‘Fresh n Ground’ and subsequently went up the value chain thereby revolutionizing the

metropolis with Cafes under the brand Café Coffee Day.

ABCTCL today is one of Asia’s top 500 companies and soon aims to be among the top 3 coffee retailing companies in

the world. We are currently 400 cafes in India, Pakistan & Austria (Vienna). ABCTCL also has an ambitious growth plan

of opening 1000 cafes by 2010 making its presence across 80 Indian cities also establishing 50 cafes in 10 foreign


countries. Our customers have given us the thumbs up for our quality standards in Pakistan and Austria and that

motivated us to go to 10 countries where plans are currently being rolled out. And is planning to open other

Cafes in the Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the coming

months.

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

Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore

ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates,

the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is

one of India’s leading coffee exporters with clients across USA, Europe & Japan.

Café coffee day I based in chickmaglur and has its business spanning the entire value chain

of coffee consumption in India.

Its different divisions include:

Café Coffee Day:

It is a place where customers come and rejuvenate themselves. It is a meeting place for the

young at heart. In the cafes they sell Hot and Cold coffee as well a Food and Merchandise to

the customer.

Coffee Day Fresh n Ground: Which owns 354 Coffee bean and powder retail outlets

Major player in the most and ground filter coffee segment. It provides a unique assortment of

blend at affordable prices. The coffee is freshly ground in front of the customer and sold to

him.


Coffee Day Xpress: Which owns 341 Coffee Day Kiosk

Bridges the need gap between the leisurely cuppa and a bite at the café and a quick drink at a

vending point. In this segment you would notice kiosks strategically positioned, where

customer can not only drink a cup of coffee but also grab a quick bite on the move.

Coffee Day Take away: Which owns 7000 Vending Machines

To serve the man on the move, who though in a hurry doe not have to compromise on the

quality of coffee he drinks. Coffee Day has its vending machines placed in vendor outlets in

all major cities.

Coffee Day Exports : India’s largest coffee exporters.

Currently export over 30000 tones of green coffee per annum, i.e. 15% of India’s coffee

exports. We have also ventured into specialty coffee exports.

Coffee Day Perfect: FMCG Packaged Coffee

For mass-in-home consumption segment where filter coffee is consumed everyday. The filter

coffee is sold in a packaged form to the consumer

Plantation:


ABC has its seeds sown in the heart of the coffee

cradle of India, Chikmagalur. The region is a

world wrapped in primeval innocence, where

panthers, tigers and elephants roam.

ABC has its seeds sown in the heart of the coffee

cradle of India, Chikmagalur. The region is a

world wrapped in primeval innocence, where

panthers, tigers and elephants roam.

Our passion for coffee stems from the august heritage of coffee estates inherited by the

promoter's family. What started out with a small group of family-owned estates, gradually

grew as more and more estates were included to finally form Amalgamated Bean Coffee

Trading Co. Ltd.

The plantations nestled in Chikmagalur and Mudigere region of the Western Ghats, are

spread over 5000 acres of well-maintained estates upto 4500ft above sea level. This makes us

the second largest plantation company in the country.

They are hosts to innumerable herbs,shrubs and

trees like jackfruit, arecanut, orange, pepper,

cardamom, etc.

The coffees at our estate are grown under the dark

shades of various forest trees like silver oak, Indian

Rose wood and various others.


Awards and Accolades

Café Coffee Day was named Food Services Retailer of the Year and Eclusive Brand

Retailer of the year at 1st ICICI Bank Retail Excellence Awards function in 2005.

Café Coffee Day was rated the No. 3 food services brand in Business World and Brand

Equity surveys in 2004

Café Coffee Day was ranked as the 3rd best Retail F & B chain in the Brand Equity

Survey in 2004.

Mr. V. G. Siddhartha, Chairman ( Amalgamated Bean Coffee Trading Company Limited)

received the “ Economic Times – Entrepreneur of the year 2003” award.

Café Coffee Day has had a hat trick victory in the India Barista Championship. For 3

years in a row 2002, 2003, 2004 ccd has won all the top award and its representative has

gone on to represent India at World Barit Championships, winning silver medal in 2002

and 5th place in 2004 for the country.


About

CAFÉ COFFEE DAY

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first 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.

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

Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore

ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates,

the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is

one of India’s leading coffee exporters with clients across USA, Europe & Japan.

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. From a handful of cafés in six cites in the first 5 years, CCD has become India’s

largest and premier retail chain of cafes with 552 cafes in 90 cities around the country.

With its roots in the golden soil of Chickmaglur, the home of some of the best Indiann

Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its business

spanning the entire value chain of coffee consumption in India.


Its different divisions include:

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

Coffee Day Xpress (which owns 341 Coffee Day Kiosk)

Coffee Day Take away (which owns 7000 Vending Machines),

Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division.

Mission statement………


Logo….

For a brand to stand out and be successful there has to be a personal commitment from staff

at all levels. The target customers must identify with it. It should be vibrant and have a “life”

of its own. Liveliness, growth, fun and passion depicts our brand, our customers, our staff and

our future – this is embodied in our design and colour.

Our LOGO colours embody:

Red Square= Leadership, passion

White Swirl = Purity of purpose, invigorating properties of coffee

Green Stroke = 125 years of coffee growing heritage of this vertically

integrated Group

Café store:Café Coffee Day is India’s largest and

premier retail chain of cafes with 421 cafes in

75 cities around the country.

All major cities such as

Banglore – 83 cafes at present

Ahemedabad - 12 cafes

Chennai – 16 cafes

Goa – 7 cafes

Gurgaon – 9 cafes

Hyderabad – 22 cafes

Jaipur – 7 cafes

Kolkata – 15 cafes

Mumbai – 65 cafes

New Delhi – 50 cafes

Puna – 20 cafes


Café Stores

HEAD - OPERATIONS

REDGIONAL MANAGER

ASSISTANT REGIONAL MANAGER

CITY MANAGER

CAFÉ MANAGER REGIONAL TRAINER

AREA MANAGER

ASSISTANT MANAGER CITY TRAINER

CAFÉ INCHARGE

TEAM MEMBERS

ORGNIZATIONAL CHART AND A CAREER GROWTH



Different formats of café……..

Café Coffee Day has been experimenting with café formats for quite sometime, CCD has

ventured into the following formats:

Music Cafés provide customers with the choice of playing their favourite music tracks on the

Digital Audio Jukeboxes installed at the café! There are around 85 cafes with such jukeboxes.

32 cafes also provide customers with the visual treat of watching their favorite music videos

by means of Video Jukeboxes.

Book Cafés offer the perfect solution to people who think that the coffee experience is

incomplete without browsing through the bestsellers or reading a classic. CCD’s book

corners accentuate the age-old combination of ‘coffee and books’.

Highway cafés on the Bangalore – Mysore highway and NH-8, presents the traveler en route

not only with good coffee and scrumptious snacks amidst great ambience but also with clean

restrooms to get rid of that weariness from the road!

Lounge cafés at Hauz Khas, Delhi and Southern Avenue, Kolkata(Southern Avenue) and

Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the lively ambience

and comfort of a café. With exquisite interiors, exotic menu and thematic music CCD Lounge

offers a whole new experience to the connoisseur while assisting the latter through its team of

hostesses who are poise and style incarnate and are looked upon as fashion icons.

Garden cafés at M.G Rd, Bangalore and GKII, New Delhi combine the joy of rejuvenating

amidst verdant landscapes and pots of coffee.

Cyber cafés at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi combine the urge

to surf, not to mention get connected through the internet while enjoying perfectly brewed

cups of coffees, both domestic as well as International blends!

Sports café, singles café, fashion café are the upcoming café formats……………………


ProductRange

:Coffees & Teas

Hot Coffee

Espresso

Espresso Americano

Macchiato

Cappuccino

Café Latte

Chococinno

Café Mocha

Irish Coffee

International Coffee

Colombian Juan Valdez

Ethiopian Qahwah

Kenyan Safari

Cold Coffee

Sweet Mint

Cold Sparkle

Brandied Banana

Tropical Iceberg

Iced Eskimo

Coffee Add-ons

Honey

Flavoured Syrups

Red Eye

Whipped Cream

Scoop pf Ice cream

Chocolate Sauce

Teas

Assam Tea

Masala Chai

Lemon ‘n Ice Tea

Kashmiri Qahwah

Apple n Cranberry ice tea

Refreshing Alternatives

Granitas

Blood Orange

Cool Blue

Pineapple Crush

Emerald Ice

Ruby Surprise

Smoothies

Mango Colada

Strawberry Colada

Cremosas

Litchi

Ginger Spice

Pina Colada

Cool Refreshers

Fruit Juices

Mineral Water

Eatables

Melting Moments

Banana n’ Walnut Cake

Banana Chocolate

Mousse

Banana Caramel pie

Chocolate Doughnut

Cookies

Marble Cake

Pineapple Getaux

Chocolate Cake

Ice-Creams

Vanilla

Chocolate

Seasons Best

Quick Bites

Samosa

Puff

Pizza

Croissant

French Fries

Kathi Roll

Wraps

Biryani

Sandwiches

Burger


Product Sources:

Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Coffee

Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The

process is carried out under the control of experienced personnel to meet highest quality

standards. The most modern technology available is used to maintain consistency and roast the

coffee beans to the demanding specifications of the discerning coffee consumers. The coffee

beans are supplied to all the cafés from Chikmagalur.

The eatables at Café Coffee Day are catered by different vendors: example: ice creams are

catered by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery.

Café Coffee Day also sells merchandise through its stores. 5 per cent of the revenue comes from

sale of merchandise.

Quality standards:

Quality policy: “We are committed to quality and we shall strive continuously to provide

products, which consistently meet the needs of our customers and establish a value-added

relationship, ensuring total customer satisfaction.”

Café Coffee Day has a check on quality all the time and in several aspects. The operational in-

charge will go around checking business, record keeping, and service and heck the feedback

forms. The food in-charge will look at the way food is being stored, coffee is being made, what

is the time take to extract the coffee and so on. Marketing person will go about checking

displays, how the merchandise is displayed.

Café Beat


Café Beat reaches more than a million smart, receptive and upwardly mobile youth of India

every month. It is one of the most widely read YOUTH magazines in the country and is a part of

one of the largest Indian retail youth brands - Café Coffee Day.

CAFÉ BEAT FACTFILE:

16 pages, all colour, monthly tabloid.

Available at all cafes across the country (552 cafes in 90

locations as of Today!).

Available FREE of cost to customers for in-café reading. Many customers also carry it away for

their referrals.

38% of the customers at CCD read Cafe Beat (survey conducted in Aug.'04 in the 4 metros.).

CCD gets around 3.9 million walk-ins in all its cafes per month.

Essentially a youth magazine covering topics like movies, music, travel, lifestyle, e-dating,

books, career etc. which interest the youth.

Displayed on magazine stands/counter at the cafes. The new issue is kept on the tables during the

first week for greater visibility.

Readership profile: Students and young professionals, mostly. SEC A and B.


Merchandising:

Every one likes to cherish good times with a hope that they last forever. To make

this a reality merchandising started. At Café Coffee Day merchandise started more

as a sentimental thing than as revenue stream. They wanted to reward coffee lovers and they

started selling mugs. People wanted to wear something that reminded them of the cafe so they

designed T-shirts and sold thousands of those. But soon it has become a serious business. 5 per

cent of their revenue comes from the merchandising. Café Coffee Day sells various young

and trendy merchandise through its stores:

Café Coffee Day Merchandise now got more Affordable

Coffee Powder

1 Arabicaah @ Rs 65

2 Perfect @ Rs 55

3 Charge @ Rs 45

4 Dark Forest 200gms @ Rs 125

5 Dark Forest 500gms @ Rs 260

6 Malabar Monsoon 200gms @ Rs 125

S.No Particulars1 Funky Caps @ Rs 60 onwards

2 Cool T-Shirts @ Rs 229 onwards

3 Bags @ Rs 225 onwards

4 Coffee Filters @ Rs 120




Customer Profile:

The café is a meeting place for 15-29 year olds, both male and female who are served the best

coffee by friendly and informed staff, in an uplifting and invigorating ambience.

Research shows that teen-agers form 25% of our customers while 38% of the customers are

between 20-24years and another 23% belong to the age group of 25-29 years.

Students and young professional comprise around 72% of our customers.

18% of the customers visit the cafes daily while another 44% visit weekly.

Each café, depending upon its size attracts between 500 and 800 customers daily, mainly

between 4pm and 7 pm.

Customers describe Café Coffee Day as the place they frequent most after “home and

workplace/college”. It is a place where they meet friends and colleagues, in groups of 3 or more;

a place where they rejuvenate and are free to be themselves rather than a place to be “seen at” vis

a vis other cafes.



People:

People at Café Coffee Day believe that “People are hired for what they know but fired for how

they behave”. Motivation and personal skill are laid emphasize upon.

Employee base and career growth…..& organizational culture…

The company today has over 3500 employees. The basic criteria for selection of an employee are he should be extremely

creative and passionate. So the company has a intensively growth oriented team with it.

Company is recognized as an equal opportunities employer. To provide individuals with continual growth and prosperity is

fundamental to the culture of our organization, however our inner strength is derived from encouraging the entrepreneurial

spirit among our employees.

Experiencing unforeseen challenges is a way of life in café coffee day. Facing creative and innovative brainstorms is a part

of everyday decision making and an open door policy helps drive these ideas towards real time turnaround and faster

completion.

Internal Promotions: An intensive, focused in-house training structure helps employees to grow to the next level with highly

active internal promotions process.

Job Enrichment: The organization firmly believes in creating opportunities for learning in the employee’s area of interest

outside his scope of routine responsibilities. This comes mostly in the form of projects or assignments carried out under the

supervision of a mentor within the organization.

Job Rotation: Employees are rotated through the various sections at the café so that they will

be exposed to all facets of the café operations.

Rewards & Recognition:At café coffee day people are brought out in appreciation for their efforts in various formats. A whole lot of rewards are

offered along with great incentive programs with access to gift certificates and merchandise.

Café Culture


Along with the company’s fast paced growth, company provides ample growth opportunities for those who would go that

extra mile to deliver and contribute to their success.

Employees are encouraged to be participative with suggestions to improve their workspace in particular and the company at

large.

The company has an open door policy that allows every member of the team to access the Management head regarding

any proposals or problems.

The practices like Coffee Table encourage innovative thought pattern that habituate growth and smart work in the day to

day lives of employees. The company culture is a reflection of the café culture which symbolizes team work and creative

outlook on life.

Strategy

Café Coffee Day was among the first coffee cafés to start operations in India in 1996, but

was the last to go national (end-2001).

Today, with 400 cafés in 75 cities, Café Coffee Day is the largest chain in the country.

Main strategy is

combination of affordable prices and product

attention to customer needs

a strong back-end support system.

India is largely a tea-drinking nation, and coffee has always been a fringe player. While


coffee cafés have existed in Europe since the 15th century, in India coffee drinking was

restricted to niche segments like intellectuals, the south Indian traditionalist and the five-star

coffee shop visitors till the late-1990s. This started changing slowly after 2000 — and not

because there were many café players in India by then.

The direct causes for this change were probably the increasing spending power among urban

youth and the increasing exposure to global trends.

Hence, even as the first café was set up in Bangalore in 1996 — an idea that struck our chairman

V G Siddhartha, while on a visit to a coffee shop in Singapore — it proved to be an idea whose

time came only by the turn of the century. By then, most other players had joined the

bandwagon.

They have seen the hard days when every customer had to have every item on the menu

explained. That’s one reason they waited until 2000-01 to start expanding nationally.

Supply chain

Another reason was that they wanted to put the back-end systems in place. Transporting fresh

roasted coffee from their own estates in Chikmagalur to faraway places like Mussourie in the

north and Jamshedpur in the east —they are the only national player present in both cities — was

a logistical nightmare

If, in the thirst for growth, company did not pay attention to this aspect. Believed in being more

sure-footed.

From bean to cup company is into the coffee estate business for the past 125 years: which means

they do not look at the coffee chain business as a short-term business. Company invested

approximately Rs 1. 2 crore in r supply chain and chalked out what is called a B2C (bean to cup)

supply chain strategy.


The supply chain had to support the expansion plans of adding four to six new cafés every

month, which led us to adopt industry best practices and, in some cases, develop our own

modules.

Company went in for a decentralized distribution strategy instead of a hub-and-spoke model, and

set up regional hubs in Delhi, Mumbai and Kolkata. These cities then linked to the towns in their

neighborhood.

The sourcing policy at these hubs included both local and centralized sourcing, based on the

volume lead time and value of the materials. We followed a continuous replenishment policy by

integrating vendors upstream. For items that had fluctuating demand and large volumes, the

inventory was managed by vendors.

By implementing a web-based ordering and electronic order processing system, we cut order-to-

delivery lead-time considerably. Online inventory tracking process operated with the use of two

supply chain modules: one at the café level — called the

POS (point of sales) module — and another at the distribution centre level. This was developed

internally.

Chikmagalur

Bangalore (South India)

(Head Distributor)

New Delhi (North India)

(Head Distributor)Local Warehouse Local Warehouse

OutletsOutlets

Outlets

Outlets

Outlets

Outlets



What’s on the menu

Menu includes over 250 customised food and beverage offerings to cater to different geographic

and demographic segments.

At cafés, every coffee menu is combined with the right kind of eats, whether a dessert or a snack.

Menu changes occur once in four months to prevent food fatigue.

Company believes in regular customer feedback and research so as to determine changing tastes

and preferences.

An important decision company took in their outlets was to provide table service and not enforce

self-service. The finding was that customers did not want their names to be shouted out when

their orders were ready.

Another advantage of table service is that they can engage customers in conversation and

persuade them to try more dishes on the menu. This is something that cannot be done in a self-

service set-up, when there are people queueing up, waiting to be served.

Putting consumers first

Customers are the best consultants we have. CCD has redesigned its logo, look, and feel of the

café, as well as our brand positioning according to the customers.


Chapter-4

.METHODOLOGY

I did a research on ‘customers’ satisfaction’. My objective was to find out whether customers are

satisfied with the store and I did this by interviewing the customers and collecting qualitative

data and quantitative data.

•Data Source- Primary Data

All the data I used in my research were primary data because those were

collected directly from field.

•Research Approach- Personal Interaction with Customers

My research approach was basically personal interaction with the customers as I directly went

to the people and communicate with them about the concerned matter and gathered all the

necessary data.

•Research Instrument- Questionnaire

I used a questionnaire.


•Sample Size- 50

I collected 50 samples during the project.

•Sampling Technique- Convenience Sampling

I used the Convenience sampling technique, because I collected all the information from those

members of the population who were conveniently available to provide it. It is not

advantageously placed to get information required.

•Sample Frame- Regular Customers of Café Coffee Day

I did this survey on those who were regular customers at the store.


CHAPTER-6

DATA PREPARATION

STAGE-1

1. Frequency of customers' visit at cafe coffee day

I was mainly concerned about those customers who come at the café coffee day often.

So, according to my objectives I asked them first how frequently he/she visits the store. In

response I got this statistics-

20% of the customers come at least once in a week.

15% of them come twice in a week or more frequently.

5% come once in every month.

3% come twice in a month.

9% come thrice in a month.


20

Frequency of Customer visit at cafe coffee day

Once in a weekTwicw in a weekEvery monthTwice in a monthThrice in a month

2. How customers get to know café coffee day

Next I asked them how they got to know about café coffee day and I saw that-

50% of the respondents came to know from advertisement

15% of them have come to know through their friends and relatives.

12% have come to know from news papers.

08% have got to know through brochure.

Very few people got to know through mail and other sources, i.e. 5%each.


Advertisement

Friends

Newspapers

Brochure

Mails

0 5 10 15 20 25 30 35 40 45 50

Information about cafe coffee day

Column1

3. Satisfaction regarding taste and preference of products

It is very important to make a proper advertise of the product. Advertisement of the product

means presenting the product in an attractive way. A plan-o-gram of the store comes from the

office but it is the duty of store to give it a good look and to set a good display of the store. When

I asked customers whether they are satisfied with the Advertisement of products, I got the

following replies-


25% of the customers are satisfied.

30% are highly satisfied.

15% think they are moderately satisfied.

8% are dissatisfied.

And a very negligible number of people, i.e., 3% are highly dissatisfied.

satisfied

highly satisfied

moderately satisfied

dissatisfied

highly dissatisfied

Satisfaction regarding Taste and Preference of products

4. Satisfaction regarding availability Café Coffee Day shop

It is necessary to know that whether the customers are satisfied with the availability of the

products at the store. Availability of the products means all variety of products which the store

sells. When I asked customers whether they are satisfied with the availability of products in the


store, almost half of the respondents fall in satisfied category(both satisfied and very satisfied)

and thus I got-

30% are satisfied.


10% are moderately satisfied.


2% is highly dissatisfied.

satisfied

highly satisfied


dissatisfied

highly dissatisfied

Satisfaction regarding availability of Cafe Coffee day shop

5. Satisfaction regarding price & offers


According to the survey, majority of the respondents are satisfied with the price and offers

available at Café Coffee Day. I got-

23% are satisfied.




03% are very dissatisfied.

Chart Title

satisfied

highly satisfied


dissatisfied

highly dissatisfied

Satisfaction regarding price & offers


6. Satisfaction regarding customer service

Café Coffee Day scores good in terms of customer satisfaction.

45% of them are satisfied.



Customer Satisfaction

1st Qtr2nd Qtr3rd Qtr


7. Closest competitor of Café Coffee Day

When I asked the customers who they think is the closest competitor of Café Coffee Day, I got to

know that-

Majority of the customers almost 50% think that Barista is the closest competitor.

Followed by Costa coffee (20%).

Café Mocha (15%)

Closest competitor

1st Qtr2nd Qtr3rd Qtr


STAGE-2

TESTING OF HYPOTHESIS :-

The assumption is taken as-

Ho : There is no significant relationship between the days and the frequency of

customers visit at Café Coffee Day.

H1 : There is a significant relationship.


CALCULATION OF EXPECTED FREQUENCIES

DAYS

ONCE IN

A WEEK

TWICE

IN A

WEEK

ONCE

IN A

MONTH

TWICE

IN A

MONTH

THRICE

IN A

MONTH

TOTAL

WEEKDAY

S

5 7 3 4 1 20

WEEKENDS 8 5 12 3 2 30

TOTAL 13 12 15 7 3 50


WORKSHEET FOR CALCULATION OF CHI-SQUARE

Oi Ei (Oi – Ei) (Oi –Ei)2 (Oi –Ei)2 / Ei

5 5.2 -0.2 0.04 0.007

8 7.8 0.2 0.04 0.005

7 4.8 2.2 4.84 1.008

5 7.2 -2.2 4.84 0.672

3 6 -3 9 1.5

12 9 3 9 1

4 2.8 1.2 1.44 0.514

3 4.2 -1.2 1.44 0.342

1 1.2 -0.2 0.04 0.033

2 1.8 0.2 0.04 0.022

TOTAL 7.10

X2 ( chi – square ) = ∑ (Oi−Ei )2Ei


Where;

Calculated Value = 7.10

AS,

Number of degree of Freedom = (Row – 1) × (Column – 1)

= (2 – 1) × (5 -1)

= 1 × 4

= 4

It is now necessary to compare the actual value with the critical value of chi –

square(X2). According to table, the degree of freedom is (2 – 1) (5 – 1) = 4. In this case,

the degree of freedom is 4.

The critical value of X2 with 4 degree of freedom of 5% level of significance is 8.589.

Since the calculated X2 is much greater than the critical value of X2, the null hypothesis

that there is no relationship between the days and frequency of customers visit at store is

rejected.


. Chapter-6

Findings: Students visit Café Coffee Day more

Age group between “20-25” visits Café Coffee Day more. They are the potential

customers.

39% of the respondents visit Café Coffee Day once in week and 37% of the respondent

visit café Coffee Day once in month.

57% of the respondent visit CCD refreshment Purpose

49% of the respondent feel coffee and Snacks influence them to visit CCD

63% of the respondent were not aware of the promotional activity Conducted by CCD

76.8% of the respondent would like to know about promotional activity.

77% of the respondent would like to be part of any future event in CCD

78% of the respondent Satisfied about service

66% of the respondent feel event conducted by CCD influence them to visit CCD

73% of the respondent feel Staff of CCD is friendly

36% of the respondent said promotional activity influences them, 34% said DJ shows

influences them.

Promo:

53.6% of the customer rated prom was good and 35.7% rated promo was excellent.

89% of them expect more events in future.

96.4% of the respondent satisfied about promo.


Chapter-7

Limitation:

1. A study is restricted only for connought place,NewDelhi

2. Time duration is only 60 days

3. The respondents may give biased opinion.


Chapter-8Conclusion

The study helped me gain valuable insight in understanding how Customer Relation

Management can help in increase sales .The project “Customer Relationship Management

initiatives to increase sales at Café Coffee Day” has been a knowledge gaining experience. I have

been able to understand that designing of promotional activity is an art and it help the company

to increase the sales.

Awareness about promotional activity is less .Though it has not been advertised at a large on

television , still has long way to go before it can catch up with its competitors. I hope my work

becomes useful for company.

Suggestions and Recommendations

1. Organize at least few promotional activities in order to build good relation with customer

2. Give advertisement about promotional activity

3. Maintain Customer data base.

4. Wish the regular customer for New Year or for any festivals through greeting card or SMS

or through gift. This will increase the loyalty of the customers.

5. Increase number of couches and place


6. Play the good music

7. Quick Service

8. To increase sales Café Coffee Day can also have corporate tie ups within the city.

9. Provide scratch card to the customers.

10. Identify the regular customer of the Café Coffee Day and provide them cards through

they can get some discount. Through this Café Coffee Day can retain their existing customer.

Amit Ccd Final

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