cafe coffee day

Presented by : Group 2

B008 IndrajitB009 VipulB015 TanmayB021 DhruvB051 PratikB056 Gaurav

Brand Analysi

s

What is Café Coffee Day?

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

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

• Network strength: Over 1400 cafés in 200 cities/towns across India and growing

• Average Footfalls: 200 per café per day

Market Analysis

• Coffee – a sunrise industry

• Growing young population and promotion of coffee culture

• Coffee Segmentation:

Robusta and Arabica BeansDifferent growth culture

Pure and blended coffeeCheaper products like chicory, vanilla, mocha

Filter coffee and instant coffee43% share of filter coffee

Café Coffee Day Networkof 1450 cafes across India

185 cafes

64 cafes

172 cafes

191 cafes

Market Analysis

60%30%

10%

Growth Target

Tier I Tier II Tier III

• Network strength of over 1450 cafes in 200 cities and towns with average footfalls of 200 per café per day

• Distribution Strategy:• Single unit at Chikmagalur with capacity of

70,000 tonnes per annum

• Packaging industry:• Serving hot coffee 210ml and cold coffee 350ml• CCD merchandises

• Regional Distribution:• Targeting expansion in smaller towns• New café formats in metros –

• Lounge• Square

300150

50

Hangs out at cafes/malls

Looking for a good lifestyle

Looking for a multiplicity of experiences

Seeks 'feel-good factor' and expression of identity

through choice of brands consumed. But is also value

conscious

Likes to be seen at the right place Socially Active

Profiling the CCD’ian

Strong voice in household purchases

Consumption areas: Personal clothing & accessories, food,

entertainment, consumer durables

Make consumption related decisions in company of friends

Tech Savvy

Influencers: Peer group, workmates

• Average dwell time at café: 45 minutes

• Meeting place for 15-35 year olds

• The place they frequent most after “home and workplace/college”

• 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”

• 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

SegmentTarget

Positioning

SegmentTarget

Positioning

• There is a definite skew towards singles: 66% singles, 27% married & 7% others.

27%

66%

7%

Married Single others

Business Professionals : 23%

Special occasions : 20%

Hangout for youth: 57%

Segmentation Target Positioning

Who hangs out at CCD?

Ansoff’s Matrix

Entered with basic products

Winning customers of competitors

Was used as promotion and cost cutting techniques

Come out with new and different

products Eg. Pasta in food and

new flavor in beverages

Existing customers New Products

New customers Old Products

Eg. increased sales in Western India due to

new products launched

Launch Café Coffee Day in a new market Eg. In Africa where

coffee has never been launched

before

Pres

ent

New

Present NewM

arke

tProducts

STRENGTHS

• First-mover advantage

• Excellent brand name and visibility

• ISO 9002 certified company

• Quality, service and taste

• Youth oriented brand

• Reduction in cost

WEAKNESS

• Lack of individual attention to loyal customers

• Unavailability of fresh food

• Market penetration of coffee bars is 5%

OPPORTUNITY• F

astest growing industries in Asia

• Merchandising

• Tie ups with other companies for promotion

• Tapping smaller market

• Cheaper varieties of coffee

THREAT• C

ompetition with Barista, Mochas, Gloria Jeans, Costa Coffee & Starbucks

• Presence of other ‘Hangout’ locations

• Unorganized market

• Dependent on government commodity rates

SWOT

Product

• Wide range• Frappe – Summer• Cappuccino -

Winter• Merchandizing

Price

• Range from Rs45 to Rs100

• Over the years only minor changes in pricing policy

Place

• All locations• Strategically

located outlets• Coffee machines

in college canteens

• Kiosks in offices

Promotion

• Channel [V]’s “Get Gorgeous” Contest

• Tie up with youth brands

• Khakee and Main Hun Na

• Sales Promotion

Process

• Self service to table service

• Complaints and feedback

• Response time

People

• “People are hired for what they know but fired for how they behave”

• Motivation and personal skills

Physical Evidence

• Logo in “Dialogue Box”

• Architecture and décor

• Coffee table books• Tag line : “A lot can

happen over coffee”

Marketing Mix

Porter’s Five Forces Model

Threat of new

entrants (LOW)

Buyer’s Power(HIGH)

Supplier’s Power(LOW)

Threat of Substitutes

(HIGH)

Industry Rivalry(HIGH)

Porter’s Five Forces Model

Threat of new entrants - Medium• Presence of several established brands/hangout places/fast food joints• High costs for starting a coffee shop chain• Government policies promoting FDI (Starbucks)

Buyer’s Power - High• Low switching cost• Variety of products• Variety of services

Supplier’s Power - Low• Absence of cartelization• Government regulations on prices of milk and coffee• Backward integration

Threat of substitutes - High• Aerated drinks, milk beverages, juice centres and tea shops• Fast food joints like Pizza Hut, Mcdonalds etc• Hangout places like Hukka parlours and Bistro

Industry Rivalry - High• Local Coffee chains like Barista, Mochas• Entry of international coffee chains such as Starbucks, Costa Coffee, Gloria Jeans

Economic

Social

Technological

Environmental

• Less bureaucratic hurdles• Easy sourcing of coffee beans• Cost control because of Govt regulations

• Heavy coffee drinkers in South India• Cheaper sourcing maintain quality

• Targets youth and middle class• Affordable for a meeting place

• Marketing strategy based around technology• Provide entertainment over Bluetooth &Wi-Fi

Political

PESTEL Analysis

• Limited production/Less pollution• Use biodegradable plastics

Legal• Ethical and based on customer delight• Less consumer complaints and quick customer service

Competitor Analysis

CCD54%Barista

26%

costa coffee14%

others6%

Market Share

CCD68%

Starbucks12%

Gloria Jeans3%

Barista17%

Share of mind

CCD33%

Chandu Chaiwala

67%

Unorganised sector

Sample size – 150+

STRENGTHS

• Excellent brand name and brand visibility

• Excellent human resource – ambience and décor

• Strong brand recall and popularity

• Has over 200 stores across India

• Creating of Moment of Truths for couples

WEAKNESSES

• Perceived as expensive brand

• Dependent on TATA suppliers for coffee beans

• Competition from other coffee chains, restaurants and fast food joints

• More known for coffee, less known for its food products

OPPORTUNITIES• I

ntroduce cheaper & unique versions of coffee

• Tap smaller towns/cities

• Increase promotion to change the perception of being an expensive brand

THREATS• T

hreat from existing coffee chains and fast food outlets

• Dependent on government commodity rates

SWOT

Product

• Wide range but not as CCD

• Traditional product with traditional names

Price

• Skim pricing policy

• Prices are lower, but still higher when compared to CCD

Place

• Strategically located outlets

• Malls, cinemas, office areas, high streets

Promotion

• Promotion through Press, TV and Radio medias

Process

• Self service• Complaints and

feedback

People

• Pleasant, polite and positive

• Uniforms in sober shades of brown and orange

• Personal skills

Physical Evidence

• Colors in logo, interiors and posters

• Uses shades of brown and orange to promote its laid back atmosphere

Marketing Mix

STRENGTHS

• Global brand name coupled with the trustworthiness of TATA

• Experience of expanding into emerging markets

• Perception of Higher quality products

• Youth oriented brand

• Excellent brand and service

• Reduction in cost

WEAKNESS

• Starbucks is recognized for its high prices

• Considered a place for elite class to hangout

• Lack of presence in non-metro cities

• Relatively small product breadth

OPPORTUNITY• I

nterest in Western Brands in Indian minds

• Targeting rapidly growing Indian urban youth

• Well defined plan to expand in the next 5 years

THREAT• G

lobal Policy Conflicts

• Presence of other ‘Hangout’ locations

• Largely unorganized market

• Established competitions

SWOT

Advertising

• As a reaction to the launch of Starbucks in India, CCD debuted with TV Ad – Sit down-ism

• Gives customer a purpose for hanging out

• Word of mouth

• Subtle advertising in movies and TV serials

• Print and social media

• Sponsoring college events and giving out discount coupons

• Tie up with different corporates

• Presence of outlets in all areas

Suggestions

• Cultivating a cult following for coffee afficionados

• Custom made orders

• More variety in food

• Healthier options in food

• Train staff to strike a personal cord of regular customers

• Availability of all items on menu all the time

• Screening of key sports events – IPL, EPL etc