Café coffee day

Outlines

•Company Background•Key Dates•Subsidiaries •Outlets In India•Outlets Outside India•Menu Card•Awards•Market Share•SWOT Analysis•Conclusion

Company Background

• Amalgamated bean coffee trading company (ABCTC) is a Chikmagalur based company which grows coffee in its own estates of 12,000 acres (4249 hectares).• It is the largest producer of Arabica beans in Asia exporting to various countries including USA, Europe and Japan. • Café Coffee Day was started as a retail restaurant arm of ABCTC in 1996.• The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka.• It rapidly expanded across various cities in India adding more stores with more than 1000 cafés open across the nation by 2011.• The logo was recently modified in response to increased competition.• The company is known for being vertical integrated to cut costs: from owning the plantations, growing the coffee, making the coffee machines to making the furniture for the outlets.

Key Dates

• Since 1875- Rich coffee started growing.• 1990 – Opportunity arose with the deregulation of the coffee board in Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan.• 1996 – C.C.D was first set up at Brigade Road in Bangalore.• 2000 – Exported more than 27,000 tones of coffee valued at US $ 60 million and largest coffee exporter in India second time with in 7 years.• 2002 – C.C.D owns & operate 213 cafes in all major cities of India.• 2008 – C.C.D expanded to 595 cafes in 100 cities of India, 3 in Vienna, 2 in Karachi & targeted to expand till 950 café in a year from 2008.• 2010 – Earning revenue of US $45 million, 5,000 employees are working under them & owns 1,016 cafes in 135 cities.

Subsidiaries •In June 2010, CCD acquired Café Emporio, a café chain from the Czech Republic..•Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets•Coffee Day Square, a high level coffee bar in Bangalore•Coffee Day Xpress, which runs 900 plus Coffee Day kiosks•Coffee Day Beverages, which runs over 14,000 vending machines.•Coffee Day Exports, its exporting wing.•Coffee Day Perfect, its fast-moving consumer goods packaged coffee division.•Coffee Day B2C Plant, Coffee vending machine manufacturing division.

Outlets In India•As of December 2013, there are 1534 outlets across 28 states of India.

Outlets Outside India

• Cafe Coffee Day has also recently expanded outside India with its outlets in:- • Karachi• Vienna• Dubai• Prague.

Market MixProduct Price Place Promotion

• Wide range• Frappe - Summer• Cappuccino – Winter• Merchandizing

• Range start from Rs 45 to Rs 100• Over the years only minor changes in pricing policy.

• All locations• Coffee machines in college and office canteens

• Channel [V] “Get Gorgeous” contest• Tie up with youth brands• Sale Promotion

Process People Physical Evidence

• Self service to table service• complaints and feedback• response time

• “People are hired for what they know but fired for how they behave”• Motivation and personal skills

• Architecture and décor• Tag line: “A lot can happen over coffee”

Competitor

•Barista: Originally known as Barista, this coffeehouse chain in India was taken over by Lavazza in 2007 and since then is known as Barista Lavazza. Barista was the fastest brand to make it to the list of Super brands and is ranked among the top 50 phenomena that changed India. •Costa Coffee: The second largest after Starbucks, Costa Coffee has about 1700 stores across 28 countries. Opened in 1971 in UK by Italian brothers Sergio and Bruno Costa, it specializes in Italian coffee.•Starbucks: The second largest coffee house. Based in Seattle, Washington, Starbucks began with selling high quality coffee beans and equipments but now serves a wide range of products which include brewed coffee, espresso based hot drinks, hot and cold drinks, coffee beans, snacks, pastries, sandwiches and items that include mugs and tumblers.

Awards

• “Entrepreneur Of The Year” – 2003 • “Best Exclusive Brand Retailer Of The Year” – 2007• “Best Food Service Retailer Of The Year”- 2007.•“Most Popular Hangout Joint Amongst Youth" at the 3rd Global Youth Marketing Forum - 2011•The Indian Hospitality Excellence Awards also named it “India's Most Popular Coffee Joint” - 2011

Menu Card

Market Share

Consumer Profile (Age)

Consumer Profile (Gender)

Consumer Profile (Occupation)

Consumer Profile (Visits)

SWOT Analysis STRENGTH

•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•Fastest growing industries in Asia•Merchandising•Tie ups with other companies for promotion•Tapping smaller market•Cheaper varieties of coffee

THREATS•Competition with Barista, Mochas, Gloria Jeans, Costa Coffee & Starbucks•Presence of other ‘Hangout’ locations•Unorganized market•Dependent on government commodity rates

Conclusion

• 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