Cafe coffee day

Presented by : Group 6Megha Sinha()Prateek Jain()

Priyanka Kanwar(69)Radhika sethi()

Nishant Negi(43)

Cafe Coffee Day, India's favorite coffee shop where the young at heart unwind. A division of India's largest

coffee conglomerate, the Amalgamated Bean Coffee Trading

Company Limited (ABCTCL). Popularly known as Coffee Day. With Asia's second-largest network of coffee

estates (10,500 acres) and 11,000 small growers, Coffee Day has a rich and abundant source of coffee. This

coffee goes all over the world to clients across the USA, Europe and

Japan, making us one of the top coffee exporters in the country.

(source : cafecoffeeday.com)

Porter’s Five Forces Model of “coffee retailing” in India

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 – Low to 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• Backward integration

Threat of substitutes - High• Aerated drinks, milk beverages, juices and tea • Fast food joints like Pizza Hut, McDonalds etc in terms of eatables menu.

Industry Rivalry - High• Local Coffee chains like Barista, Mochas and hundreds of small coffee shops.• Entry of international coffee chains such as Starbucks, Costa Coffee, Gloria Beans

Question 2) CCD looks to grow through “franchisee” model.What are the advantages and disadvantages of this strategy?

Access to better talent

Easy expansion capital

Minimized growth risk

Pros of Franchisee Model

Less control over managers

A weaker core community

Innovation challenges

Cons of Franchisee Model

Global Vs

Glocal Vs

Local

Question 3)For a chain like CCD what kind of growth strategy is required

Glocal StrategyThink global, act local

Product or services designed to benefit a local market while at the same time being

developed and distributed on a global level. (source: businessdictionary.com)

International coffee retailers agree that understanding local markets and consumer preferences is vital to the success of their international business. As a result, a majority of retailers are customizing product offerings, using local merchants and managing campaigns with a localized calendar in order to relate best to the local market.

Products for localized taste

localized Items on the menu

Keeping in mind the culture and religious beliefs

In terms of products

ambience/infrastructure

look and feel

Align with the popular culture of the country in which business is operating

In terms of ambience

Global strategy standardization of products

Local strategy Price Adaptation

Local govt. rules and regulations

Thank You