Cafe coffee day

Presented by :

Manohara H M PALB 4090

Dept. of Agricultural Economics

What is Café Coffee Day?

?

• India's largest coffee conglomerate, owned by 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 1530 cafés in 200 cities/towns across India and growing

• Average Footfalls: 200 per café per day

• Founder & Director : V. Siddhartha

• Headquarters : Vittal Mallya Road, Bengaluru

• Area served : India, Austria, Czech Republic, Dubai & Karachi.

• Revenue : US$ 450 million

• 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 one of the top coffee exporters in the country.

Café Coffee Day Networkof 1530 cafes across India

185 cafes

64 cafes

172 cafes

191 cafes

• 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

Who hangs out at Coffee Day?

• Research shows that while a part of customers come to cafe for products, a substantial amount of customers come to “hang out” with friends.

• The café is also the venue for “business meetings” (23%), “celebrating special occasions” (20%) or just

plain “hang out” (57%).

Key Target Audience

• Major 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

• To be the best Cafe chain by offering a world class coffee experience at affordable prices.

MISSION

• 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.

• 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

SUBSIDIARIES

FOOD

COOKIESSANDWICHESBURGERSPUFFSSAMOSADOUGHNUTSPASTRIESCAKES

BEVERAGES

HOT COFFEE LEMONADESCOLD COFFEE CHOCOHOLICASHOT TEAS COLD TEAS FRAPPE

PRODUCTS

Café Coffee Day’s Expansion Strategies

• ABCTCL identified China, Middle East, Far East Asia as the initial markets for its international foray.• Domestically CCD had 147 cafes in 37 cities in 2003.• As part of its expansion plan the company took major initiatives in

setting up vending machines, kiosks, branded filter coffee and marketing tie ups.• Also it planned to increase smaller format cafes – café Xpress

Beginning• Only 14% of coffee produced annually was consumed within the

country, while the remainder was exported . • The first wave was set in motion mainly due to the efforts of coffee

cess committee in 1936.• coffee board managed a chain of 72 coffee houses and attempted to

introduce the coffee habit in the predominantly tea drinking north of the country.• The second wave began when ABCTCL launched its first coffee day

outlet in November 1996 in Bangalore.

• In mid 1990s, when internet started picking up in India, coffee shops were part of either five star hotels or darshani variety.

• Having found a business opportunity in cyber craze, ABCTCL started experimenting with selling coffee in internet parlors .

• Since 1996, with increase in household internet connections, revenue from cyber cafes were decreased.

• ABCTCL owned coffee estates In Karnataka and was already selling a filter coffee brand “Coffee Day”.

• Coffee day designed its outlets to appeal to young and painting the store with vibrant colours.• Coffee day’s most distinct aspect was its exclusive relationship with

the plantation division of its parent company, ABCTCL.• Its coffee products were about 10 to 20% cheaper than similar

products of other coffee chains in the country.

COMPETITION

• Barista, which was started in 2000, opened 72 outlets within two years.

• It took CCD five years to open 18 outlets with 10 in Bangalore alone.

• For slow expansion strategy, CCD director Naresh Malhotra stated, “ we are a conservative south Indian form and believe in growing cautiously ”.

REJUVENATION

• Under Siddhartha’s leadership, coffee chain started to expand its business into new regions, company undertook a rejuvenation process , through a new look and logo to give a contemporary look.• Also base line was changed from ‘The place to be’ to ‘A lot can

happen over a coffee’.

RESEARCH FINDING

• According to the research conducted by the company, 700 coffee day customers participated in the nationwide, it was observed that hot coffee and snacks were the popular products amongst the respondents.

• Research showed that 16% of respondents visited the café daily and 62% visited in the evenings.

BRANDING STRATEGIES• Café day launched a customer loyalty programme called ‘café citizen

programme’ at all its cafes across the country.

• Every customer who billed a minimum of Rs.100 on a single bill who would be eligible for a membership and would given a 10% discount on all the food and beverages for a year.

• Customers whose billing amount reched Rs. 2000, Rs.5000 were entitled to receive surprise gifts.

• To attract young customers, coffee day introduced touch screen digital jukebox in January 2002.• According to the company, the jukebox allowed customers to listen to

songs of their choice.

• By the end of 2002, coffee day grow to 50 outlets and had a turnover of RS.10 crores.

• Further coffee day planned to expand the chain to 200 outlets by march 2004 and allocated Rs.90 crore for expansion.

• According to the company, all the outlets would be company owned and financing would be provided by the parent company.

• To further increase its reach, ABCTCL started new ventures like coffee day Xpress, coffee day take away, coffee day fresh n ground.

• The customers included were people who visited shopping malls, movie theatres, offices.

• The Xpress retail food kiosks were located at the premises of corporates like Ericsson, Airtel, IBM and petrol pumps run by HPCL, BPCL, IOC.

• For the expansion of coffee day Xpress, company chose to expand through franchising.

• As per company’s franchising model, a franchise was required to invest Rs.2.5 lakh to Rs.3.5 lakhs refundable deposit which would earn him 4% interest .

• Break even - Rs.1200 per day

SWOT ANALYSISSTRENGTHS

Excellent brand name and brand visibility Huge young crowd as target groupExcellent ambience and serviceIt grows the coffee it serve THREATSEntry of foreign players like StarbucksDependent on Govt. commodity ratesLarge unorganized market.

WEAKNESSES

Crowd managementLacks strength to maintain brand

loyalty.Follow the competitor strategy

OPPORTUNITIESIntroduce cheaper versions ofcoffeeTap the smaller towns/citiesTie ups with other companies forpromotion

SUCCESSFUL INNOVATIVE BRANDING STRATEGIES

Successful Brand Associations

Tupperware• Campaign Objectives

To promote their water bottles and to create a platform for their distributors to talk about Tupperware products

• Elements A creative Tupperware branded stand with a water bottle holder and leaflets for communication were kept on the tables & counters

Nokia• Campaign Objective

To demonstrate the newly launched Nokia 800 series.

• ElementsCreating a demo zone inside the cafe. Promoter access in the cafe to interact with customers - giving demo.

Samsung• Campaign Objective

To create an experience oriented campaign for Samsung Tab-II.

• Elements Creating a demo zone inside the cafe. Promoter access in the cafe to interact with customers- giving demo-collecting leads.

Vodafone• Campaign Objective

To promote Vodafone Happy Hours & give 20% discount to all the Vodafone customers visiting the café between 2pm to 4pm.

• ElementsPoster, Tent Card and Bill Counter Display

Oh My God• Campaign Objective

Promotion of OMG Movie across cafes in India

• ElementsStandee, Side Menu Card & Poster on the notice board

A lot can happen over coffee…

Thank You..!!