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PROJECT ON COMPLETE STUDY OF CAFÉ COFFEE DAY DECLARATION I hereby declare that the project work entitled “COMPLETE STUDY OF CAFÉ COFFEE DAY” submitted to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, is a record of an original work done by me under the guidance of Mrs. SANGEETA JOSHI, Faculty Member LINGAYA’S LALITA DEVI INSTITUTE OF MANAGEMENT & SCIENCES, and this project work has not performed the basis for the award of any Degree to the best of my knowledge. NEHA SINGHAL 14619201712 [SIGNATURE OF STUDENT] NEHA SINGHAL 14619201712 Page 1
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Cafe Coffee Day

Dec 19, 2015

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Page 1: Cafe Coffee Day

PROJECT ON COMPLETE STUDY OF CAFÉ COFFEE DAY

DECLARATION

I hereby declare that the project work entitled “COMPLETE STUDY OF CAFÉ

COFFEE DAY” submitted to GURU GOBIND SINGH INDRAPRASTHA

UNIVERSITY, is a record of an original work done by me under the guidance of

Mrs. SANGEETA JOSHI, Faculty Member LINGAYA’S LALITA DEVI

INSTITUTE OF MANAGEMENT & SCIENCES, and this project work has not

performed the basis for the award of any Degree to the best of my knowledge.

NEHA SINGHAL

14619201712

[SIGNATURE OF STUDENT]

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CERTIFICATE

Certified that this project report “COMPLETE STUDY OF CAFÉ COFFEE DAY” is the

bonafide work of “NEHA SINGHAL” and has carried out the project work under

the supervision of Mrs. SANGEETA JOSHI.

SIGNATURE SIGNATURE

Mr. PRANAV MISHRA Mrs. SANGEETA JOSHI

HEAD OF THE DEPARTMENT Project Incharge

BBA DEPARTMENT BBA DEPARTMENT

LINGAYA’S LALITA DEVI INSTITUTE LINGAYA’S LALITA DEVI INSTITUTE

OF MANAGEMENT & SCIENCES OF MANAGEMENT & SCIENCES

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ACKNOWLEDGEMENT

I take this opportunity to express a deep sense of gratitude to Mrs. SANGEETA

JOSHI (the Guide of the project for guiding) for his/her cordial support, valuable

information and guidance, which helped me in completing this task through

various stages.

I express my thanks to the HOD Mr. PRANAV MISHRA of BBA Department for his

support in completing the project.

I would also like to express my gratitude towards my parents and people who

have willingly helped me out with their abilities in completion of this project.

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TABLE OF CONTENT

S.NO. TOPIC PAGE NO.1. Declaration 12. Certificate 23. Acknowledgement 34. Executive Summery 55. History 66. Objectives 107. Features 128. Current trends in Industry 139. Market size in US 1510. Major players in the Industry 1611. Customer Expectations 1912. Promotion 2113. Mission Statement 2514. Logo 2615. Product at Café Coffee Day 2716. Rewards 3217. Awards 3318. Café Formats 3419. Benefits 3620. Sales Promotions 3821. Segmentations Strategy 3922. Seven steps of Great Services 4023. Research & Methodology 4424. Recommendations & Conclusions 4725. Bibliography 48

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EXECUTIVE SUMMERY

The research project deals with CAFÉ COFFEE DAY. The research project addresses

the issues and facts that are critical to success of chain of Café Coffee Day in India.

Along with this, the project has also covered management skills, services provided

and trends & opportunities. The report also discusses about the competitors of

the Café Coffee Day in India. It also covers various promotional techniques

adopted by Café Coffee Day in order to attract customers. It also shows its

comparison with its competitors. There is an intense competition among these

players which makes them come out with various offers time to time. Surveys

were also conducted with customers during this project which gave insights about

these outlets and the factors that are motivating them to visit Café Coffee Day.

The result of these surveys gives very interesting facts. Finally, the report also

covers strength and weaknesses along with opportunities and threats involved for

Café Coffee Day in Indian market. This study is primarily intended to oversee and

evaluate the history of Café Coffee Day as a brand of new generation Coffee item

and Beverages viz. “Coffee” in Delhi. Culture and cuisine are two highlights of the

city of Delhi. The objective of our project is to explore the marketing techniques

adopted by Café Coffee Day in India. And to know the recent trends in the market

with respect to promotion of Café Coffee Day and the opportunities and

challenges in India. Café Coffee Day is a complete family Coffee Restaurant.

People are highly satisfied with the services and quality of the Coffee served at

Café Coffee Day. People give overall 7/10 marks to Café Coffee Day. Most of the

people visiting Café Coffee Day are between 19 to 25 years of age. People feel

that prices of Café Coffee Day are high.

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History

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

Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day. This

is a Rs. 300 crore ISO 9002 certified company. Its chief customers are in USA,

Europe & Japan. Based in Chickmaglur, the home of some of the best Indian

Coffees, Coffee Day has its business spanning the entire gamut of coffee

Consumption in India. Its different divisions include:

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

· Coffee Day Xpress (341 Coffee Day Kiosk)

· Coffee Day Take away (7000 Vending Machines)

· Coffee Day Exports

· Café Coffee Day

· Coffee Day Perfect (FMCG Packaged Coffee) division

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.

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.

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India’s favourite coffee shop, where the young at heart unwind.

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

Bean Coffee Trading Company Ltd. (ABCTCL), the first to roll out the ‘coffee bar’

concept in India with its first café in Bangalore. It’s a Rs. 750 crore, ISO 9002

certified company. With Asia’s second-largest network of coffee estates (10,500

acres) and 11,000 small growers, making its holder the largest individual coffee

plantation owner in Asia, this in addition to being India's only vertically integrated

coffee company. 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.We all know that Café Coffee Day is

one of the most popular hangout places. The coffee joint is very famous among

youngsters. Coffee is one of the favorite beverages and has become more

appealing because of its variety.

ABCTCL 6 divisions:

Exports - India's largest coffee exporters. Currently export over 30000 tonnes of green coffee per annum, i.e 15% of India's coffee exports. They have also ventured into specialty coffee exports.

Coffee Day Fresh and Ground- Maior player in the roast & ground filter coffee segment. It provides a unique assortment of blends at affordable prices. The coffee is freshly ground in front of the customer and sold to him.

Cafe Coffee Day - It is a place where customers come and rejuvenate themselves. It is a meeting place for the young and the young at heart. In the café Hot and Cold coffee as well as merchandise are sold to the customers.

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Coffee Day Vending – To serve the man on the move who though hurry does not have to compromise on quality of coffe he drinks. Coffee Day has its vending machine placed in vendor outlets in major cities.

Coffee Day Express – Bridges the need gap between the leisurely cuppa and the bite at the café and a quick drink at the vending point. In this segment you would notice kiosks strategically positioned where a customer can not only drink coffee but also grab a quick bite on the move.

Coffee Day 'Perfect'- For mass-in-home consumption section where filter coffee is consumed everyday. The filter coffee is sold in packaged form to the customers.

Coffee has been around in India since the 17th century. However, coffee drinking

has traditionally been largely restricted to domestic consumption, and mostly in

the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh.

Coffee has been around in India since the 17th century. However, coffee drinking

has traditionally been largely restricted to domestic consumption, and mostly in

the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh.

India ranks sixth as a producer of coffee in the world accounting for 4.5% of the

global coffee production. India has about 170,000 coffee farms cultivating around

900,000 acres of coffee trees. India is the largest producer and consumer of milk

in the world with 98% of milk being produced in rural India. Coffee consumption

in India is growing at 6% per annum compared to the global 2% plus.

Café Coffee Day’s menu ranges from signature hot and cold coffees to several

exotic international coffees, tea, food, desserts and pastries. In addition, exciting

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merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available

at the cafés.

It was in the golden soil of Chikmagalur that a traditional family owned a few

acres of coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean

Coffee Trading Company Limited, popularly known as Coffee Day was formed.

With a rich coffee growing tradition since 1875 behind it coupled with the

opportunity that arose with the deregulation of the coffee board in the early

nineties, Coffee Day began exporting coffee to the connoisseurs across USA,

Europe & Japan. Coffee Day's two curing works at Chikmagalur and Hassan cure

over 70,000 tonnes of coffee per annum, the largest in the country. 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.

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

first café at Brigade Road in Bangalore. Today, more than a decade later, Café

Coffee Day is the largest organized retail café chain in India with cafes functioning

in every nook and corner of the country. Drawing inspiration from this

overwhelming success, Café Coffee Day today has cafes in Vienna, Austria and

Karachi. What’s more, new cafes are planned across Middle East, Eastern Europe,

Eurasia, Egypt and South East Asia in the near future.

In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the

concept of ‘Power of Dialogue’. In accordance with this new brand identity, CCD

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planned to give all its existing outlets a new look by the end of 2009. Cafés would

be redesigned to suit different environments such as book, music garden and

cyber cafes suitable for corporate offices, university campus or neighborhood.

The change plan included new smart menu, furniture design, among others.

CAFÉ COFFEE DAY IN THE PAST 12 YEARS:

1996

1st café in

2001

14 cafés in 6 cities

2008

607 cafés across 98

Cities, and in

OBJECTIVE

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“To be the best Cafe chain by offering a world class coffee experience

at affordable prices.”

The offerings are designed in such a manner that one cannot be spelt without the

other; there are the hot coffee or cold coffee combinations with delectable

desserts and special coffee and eats combinations for even a group of four

friends.

Coffee Day Comprises of the following Sub Brands

1. Coffee Day - Fresh & Ground

2. Café Coffee Day

3. Coffee Day – Vending

4. Coffee Day - Xpress

5. Coffee Day – Exports

6. Coffee Day - Perfect

Pioneers of the Café Concept in India with its first Café at Brigade Road, Bangalore

in 1996. This Café was opened as a Cyber Café (first of its kind) but later, with the

burst of cyber cafes it reverted to its core competency i.e.; Coffee. Essentially a

youth oriented brand with majority of its customers falling in the 15-29 year age

bracket .Each café, depending upon its size attracts between 400 and 800

customers daily. It is a place where customers come to rejuvenate themselves

and be themselves.

Key Features

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Pioneers of the Café Concept in India with the its first Café at Brigade Road,

Bangalore in 1996. This Café was opened as a Cyber Café (first of its kind)

but later, with the burst of cyber cafes it reverted to its core competency

Coffee.

Essentially a youth oriented brand with majority of its customers falling in

the 15- 29 year age bracket

Each café, depending upon its size attracts between 400 and 800 customers

daily.

It is a place where customers come to rejuvenate themselves and be

themselves.

USP of the Brand:

1 . Affordable Price

2 . Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the India

Barista Championship 2002

CURRENT TREND IN INDUSTRY

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Growth of Café Industry in India

Hot beverages have always been a part of the tradition of India, especially South

India. Coffee took the first seat in South India when the traditional Brahmin

classes brought down. In order to spread the drink, coffee houses emerged at

various places in the country, which also served as the opposite places for lawyers

and the educated class to hold discussions ranging from politics to cinema. It is

also believed that many scripts and ideas for films evolved here.

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.

The more than US $150 million organized coffee retail business in India is coming

into its own, fed by rising incomes and a fast-food sector that is growing at 40 per

cent annually. Coffee consumption has increased from 55,000 tons to 80,000 tons

after decades of stagnation. Industry sources say the niche coffee retail format is

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growing at 10-12 per cent a year, with branded coffee accounting for 53 per cent

of sales, unbranded 40 per cent and cafes 7 per cent.

MARKET SIZE IN US

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Snapshot: Coffee Shop

Retail Sales Estimates Year End 2009 Coffee Cafes: (beverage retailers with

seating) 1,250 locations averaging $550,000 in annual sales = $ 6.12 billion or

adults who have visited a coffeehouse in the past week:

Average weekly spending $5 or under: 41%

Rarely or never purchase food: 49%

Consume the beverage off-premises: 52%

Demographics

Seventy-seven percent of U.S. adults drink coffee daily, and gourmet coffee

consumption has risen in the past five years. According to Scarborough Research,

a market research firm that studies media, lifestyle, and shopping patterns in the

United States, in October 2008, 12 percent of adults have been to a coffee shop in

the past month. Although popularity of coffee shops has recently spread across

the nation, the West coast has the most coffee shop patrons. The ideal ratio of

coffee shops to residents in a particular area is 1:10,000

MAJOR PLAYERS IN THE INDUSTRY

Following are the major players in coffee shop industry:

A. Barista Lavazza

One of India's largest franchised chains of coffee bars, the Barista

Lavazza coffee company operates around 205 outlets across India – 15

crème lounges and the rest espresso coffee bars.

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It plans to open 300 new stores over the next three years and has begun

aggressively marketing its products outside Indian borders into

neighboring countries. Considered the Starbucks of the East, Barista

offers many of the same menu items like espresso, lattes, cappuccino

and various pastries, in addition to basic coffee. Despite being Indian,

Barista sticks closely to its Italian roots by serving Italian coffees

exclusively.

B. Costa Coffee

British coffee retail chain Costa Coffee launched its outlet in New

Delhi, becoming the first international coffee chain to start

operations in India in September 2005.

The chain is currently operational with 36 outlets and expanding

aggressively to tap this potential market.

C. Café Mocha

It was started by a Mumbai based entrepreneur Riyaz Amlani, who

has a long experience in the hotels and restaurants business. This

store is strikingly different from others, they love being over-the-top

and thus it’s a place that either you love it too much or find it ’Over

the top’. Studying the marketing Mix adopted by café mocha. Owned

by Impresario Entertainment & Hospitality Pvt. Ltd.

Mocha opened its doors at Churchgate (Mumbai) in December 2001

15 operational outlets across the country and its own central kitchen

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Future plans for Singapore, Dubai and New York and Chicago.

Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with

their multi-products offering outlets like Reliance Timeout and Desi Café

respectively.

32%

4%

48%

8%

8%

Competitors Analysis

BaristaMinerva Coffee ShopCafé Coffee DayGloria JeansBeyond CoffeeCafé MochaCosta Coffee

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CUSTOMER’S EXPECTATIONS

When a customer visits a coffee shop they expect a good experience. They want the service provider to provide them with the best services they have. From the chart given below we can easily make out that the customers gives high preference to the quality of services and they give least preference to the pricing. The major reason behind customer giving least preference to the price is because they want a good experience which is beyond price.

42%

13%

11%

11%

24%

Factors considered while selecting a coffee shop

Quality of Services Items in the menu Pricing Location Ambience

From the above chart one can easily make out that 42% people consider the quality of services offered by the coffe shop before going to it.

The next important factor considered by customer before choosing a coffee shop is the ambience. They want the coffee shop to be a cool hangout place where they can hangout with friends and do some combined studies

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RATING TO CAFÉ COFFEE DAY BY THE CUSTOMER ARE SHOWN IN THE CHART BELOW

Not Satisfied Satisfactory Good Very Good Excellent

4 4

40

2824

0

20

28

48

44

16 16

52

12

4

24

52

812

16 1620

44

4

Rating to Cafe Coffee Day given by customers on the factors listed below

Ambience Location Quality of Product Pricing Service Offered

From the chart above one can easily make out the following things regarding to Café Coffee Day:-

1. Customers grade Café Coffee Day very good when it comes to ambience.2. Customers grade Café Coffee Day good when it comes to pricing.3. Customers grade Café Coffee Day very good when it comes to service

offered.4. Customers grade Café Coffee Day very good when it comes to quality of

product.5. Customers grade Café Coffee Day very good when it comes to Location.

Which simply proves that Café Coffee Day is one of the best hangout place for the youth who consider the factors mentioned above while selecting a Coffee Shop.

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Promotion

Café Coffee Day does not believe in mass media promotions. But they are

involved in all the areas of serious consumer passion.

Through television

Café Coffee Day held a contest around a very popular programmed on Zee English

called Friends. All the six lead characters are shown often visiting a coffee shop

and a lot of youth like watching the programme. That is why they had a contest

running where customers could win Friends' merchandise. The linkage was that it

is a youth based programme and it had a coffee house.

They have tied up with Channel [V]'s Get Gorgeous contest. The reason being that

a lot of their young consumers are interested in careers. Modeling is a career that

a lot of youngsters are interested in and this was an excellent platform. They have

also done promotion for History Channel, where they have run promotion for

Hollywood Heroes. They had asked a few question and a lucky winner won a trip

to Hollywood.

Ticket sales

Café Coffee Day is involved in ticket sales in quite a few events, Enrique being one

of them. They were involved in WWE, Elton John, and Bryan Adams ticket sales.

These acts are very much appreciated by their consumers. It helps both the

organizers as well as Café Coffee Day. Organizers need to tell people where the

tickets are available and single Café Coffee Day logo says it all. From Café Coffee

Day’s point of view, they always ask for a certain amount of tickets around which

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they have a contest. Couples can win ticket for free. This in turn raises the

awareness level as cafe staff approaches the consumers to inform them about the

contest. There is not a better publicity mechanism then the person who is serving

you telling you about the same.

Association with movies

Café coffee day has been associated with a pool of movies to broadcast it self .Its

main intention is to increase the visibility rate within the crowd who are a part of

the audiences. They have been a part of movies like:

Bas Yun Hi

Khakee

Main Hoon Na

Kyun Ho Gaya Na

Mujhse Shaadi Karoge

Lucky

Socha Na Tha

And a lot of Telegu & Tamil movies

Sales Promotion

Café coffee day has been a very promising initiator than compared to its

competitors for sales promotion like:

Giving away Gifts during occasions e.g. valentine day

Offering Coupons

Café Citizen card which allows regular members to avail discounts upto 20%

and become a member after a purchase amount of upto 2000 Rs.

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Sugar free campaign which was mainly done to spread awareness of staying

healthy and fit by using the sugar free sachets

Discounts during festive times to members

Place

Café Coffee Day looks to cater to their target market with strategically located

outlets. Their outlets are generally located in High Street/ Family Entertainment

Centers. Considering their generic appeal, there are Barista outlets located in and

around Malls, Cinemas, Colleges, Offices, etc. This endorses their brand image of a

café that appeals to coffee lovers of all ages.

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.

Process

The order process at Café Coffee Day is based on services, where the customer

can read the menu and order. Whereas they have a flexible delivery process,

where the customer can go directly and take what they have ordered for or the

order is delivered on his table.

Positioning

Research shows that 37% of the customers are between 20 and 24years. 27% of the customers are between the age group of 25-29 years. 60% of the customers who visit the café are male and 40% are female. 52% of customers who visit the

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cafes are students.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. The prices here are perceived to be reasonable and it is a place where customers come to rejuvenate themselves and be themselves rather than a place to be “seen at” vis a vis other cafes. Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India. At a time when the country was growing well economically and young India enjoyed higher spending power, CCD as it is popularly known, started to set up the first retail chain of coffee bars. It broke new ground in 1999 when the entire market grew phenomenally with the entry of new players.

From the beginning, it positioned itself as being a coffee bar and has maintained that positioning for a long time now. For a consumer, CCD represents a “fun place” where one can go with a whole bunch of friends at any time of the day and have a good time, over coffee.

In 2002, Café Coffee Day underwent a rebranding exercise through a change in its logo. The earlier logo was a simple red square with a white streak running across, and ‘Coffee Day’ written at the bottom. At this stage, CCD was still perceived as a South Indian coffee joint similar to the Coffee House in Kolkata, a place where intellectuals meet and spend their time discussing issues. CCD saw a latent market in youngsters, who were increasingly looking for a place to spend time with friends and have fun. It then created an umbrella mother brand, Coffee Day and four subbrands to represent the various activities. The logo then incorporated red, white and green colours, a larger font and emphasis on the word ‘Café’. According to the company, red signifies leadership and passion and the white swirl stands for purity of purpose and the feel of coffee. The new colour green endorsed the long heritage of CCD in growing coffee.

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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

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White Swirl = Purity of purpose, invigorating properties of coffee

Green Stroke = 125 years of coffee growing heritage of

this vertically integrated Group

Now, the Logo has been changed;

To

PRODUCTS AT CAFÉ COFFE DAY

Description of various Food and Beverages:

Hot Coffees

One Line Descriptions:

Espresso : Strong black coffee extracted at high pressure and optimum temperature.

Espresso Americano : A shot of lightened Espresso diluted with hot water.

Macchiato : A shot of Espresso topped up with milk foam.

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Cappuccino : Strong milk based coffee with a shot of Espresso, milk and milk foam. It is one of the most popular hot coffees at Cafe Coffee Day.

Café Latte : Milkier hot coffee, mild and goes best with coffee flavoring syrups. It has a very thin layer of milk foam.

Chocochino : A blend of Chocolate ice cream and Espresso garnished with a dollop of milk foam. It is neither a hot coffee nor a cold coffee. It is a warm coffee.

Cafe Mocha: Chocolate flavored Cappuccino. Goes best when served with whipped cream. Garnish it with a dash of cocoa powder.

Irish coffee: A light Espresso flavored with a choice of Irish Cream/ Hazelnut/ Caramel and topped with Whipped Cream.

Caffeine Kick: Double shot of espresso diluted with hot water.

Black Velvet: A'ristretto'strong coffee served around 5-20 ml.

Kenyan Safari : An international coffee with the hidden flavor of Blueberry. Colombian Juan Valdez: Rich, mild international hot coffee with fruity flavour.

Ethiopian Qahwah : International hot coffee with a hidden mocha flavour.

Hot chocolate : Lots and lots and lots of chocolate.

Cold Coffees

Tropical Iceberg : Ice blended cold coffee with notes of chocolate. It is the most popular cold coffee across the country.

Tropical Temptation : A Tropical Iceberg topped with whipped cream and a shot of chocolate sauce.

Cold Sparkle: Ice blended cold coffee with a sparkling taste of coconut, it is among the earliest cold coffees introduced in their menu.

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Iced Eskimo : Ice blended cold coffee with notes of coffee and cream

balanced in right proportions.

Arabian Heights : Ice blended cold coffee with a distinct flavour of cardamom.

Vegan Shake : It is made of 100 % pure vegetable fat and does not contain any animal fat & dairy product. It is unique and is being launched for the first time in the country by CCD.

Cappachillo : Coffee with sweetened creamy milk served on the rocks.

Mochachillo : Chocolate flavored coffee with sweetened creamy milk

served on the rocks.

Cafe Frappe : A judicious blend of ice cream and coffee that gives a smooth and creamy effect.

Almond frappe : Almond flavored rich, creamy cold coffee with whipped cream, garnished with almond flakes.

Choco Frappe: A Cafe Frappe with an extra scoop of Vanilla ice cream and a shot of chocolate sauce, garnished with cocoa powder.

Devils Own : A smooth blend of cream and coffee drenched with chocolate sauce and topped up with a shot of whipped cream.

Kaapi Nirvana : It is their ultimate signature blend, very Indian with hidden Caribbean taste, won the silver medal in the in the world barista championship held in Oslo 2002. Rich coffee taste, heavy body with creamy texture and does not require any additional flavors.

Fruit Frappe : A judicious blend of ice cream and fruits having different fruity flavors and thick cool texture. (Mango Frappe, Strawberry Frappe, Pineapple Frappe, Lichi Frappe, Cold Chocolate).

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Teas

Assam Tea : A strong Tea grown in the best tea estates of Assam.

Masala Chai : High grade Assam tea in combination with a Masala bag which is meticulously prepared with pepper, cardamom and cinnamon to give an ethnic feel.

Ice Tea : A flavoured cold tea served with lemon juice on the rocks,

garnished with a slice of lime.

Granitas / Cremosas

Granitas : A cool slush drink in different flavour variants

Pineapple Crush : Pineapple flavour.

Cool Blue : Orange & hidden flavour of mint.

Blood Orange : Orange flavour.

Smoothies : Ice-drinks blended with ice cream to give it a creamy

texture, which gives a smooth creamy after taste

Strawberry/Mango Colada : A smoothie, flavoured with strawberry/mango garnished with whipped cream.

Cremosa : A fizz drink served with fruit concentrate, soda and Ice

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Cubes Served on the Rocks. (Flavor options: Litchi, Ginger Spice and Pina Colada)

Desserts

Mousse Au chocolate : A double layered Chocolate mousse with a combination of milk a dark chocolate & subtle coffee flavor for all the chocolate lovers.

Mocha Pastry : A fresh coffee sponge cake flavored with Coffee cream and syrup.

Chocolate Fantasy Cake : Rich Chocolate Pastry pampered with a rich garnish with chocolate truffle swirl.

Pineapple Gateaux : Delicious cream and pineapple-flavoured cake, very light and refreshing.

Chocolate Mousse : Creamy, Fluffy, Smooth, chocolate flavored dessert, ideal with coffee.

Black forest Cake : The all time favorite Choco pastry with cherries suited to our Indian palate.

Sugar/chocolate Doughnut : A deep-fried dumpling doused with cinnamon flavoured top dipped in sugar or chocolate truffle.

Date & Walnut cake : Rich butter base Cake made of delicious combination Dates & Walnut.

Chocolate Brownie : A rich dessert made with the combination of chocolate, butter, walnuts best with coffee. [TIP: Tastes best with a scoop of Vanilla Ice Cream.]

Banana walnut cake : Delicious teacake flavored with bananas and walnuts

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Marble cake : A delicious combination of chocolate and vanilla butter sponge best with tea or coffee, topped with pure chocolate. Try with a scoop of choc ice cream, vanilla ice cream, nuts & chocolate sauce.

Cookies : A crisp sweet snack accompanying all coffee and teas with choco chips, chocolate ginger, peanut butter and coconut macaroon flavour options.

REWARDS

The management believes that rewards offered by the company should be meaningful and valuable to the employees. The rewards are always based on attainable goals, they believe in SMART goal stetting { S- specific, M- measurable, A- attainable, R- realistic and T- time bound}. The rewards are clear, understandable and open to all. The main focus of the rewards is to recognize performance and motivate the high performers.

TYPES OF REWARDS:

An employee is chosen based on criteria such as excellent customer comments, and maintenance of quality product standards that will be publicized well in advance.

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The “employee of the month” will feature in the café magazine “café beat”. Select “café of the month” that will be featured in the café beat. Select “employee of the month” that will be displayed at the café. Certificate of appreciation from the regional head. Participation in city/ regional/ national café managers context. Consistent and loyal employees with a good performance will be rewarded

with employee stock options.

AWARDS

Cafe Coffee Day was named Food Services Retailer of the Year and Exclusive Brand Retailer of the Year at the 1st ICICI Bank Retail Excellence Awards function in 2005.

Cafe Coffee Day was rated the No. 3 food services brand in Business World and Brand Equity surveys in 2004.

Cafe Coffee Day was ranked as the 3rd best" Retail F 6t B" chain in India in the Brand Equity survey in 2004.

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Mr. V.G. Siddhartha, Chairman (Amalgamated Bean Coffee Trading Company Limited) received the " Economic Times - Entrepreneur of the year 2003 "award.

Cafe 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 awards and its representative has gone on to represent India at World Barista Championships, winning silver medal in 2002 and 5th place in 2004 for the country.

CAFÉ FORMATS

Café Coffee Day has been experimenting with café formats for quite sometime. Backed by the motivation of providing customers with exciting choices as well as constantly redefining ‘the café experience’, 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

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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’. This exciting concept has been successfully tested at 15 cafes in 12 cities across India and the numbers are set to grow exponentially. CCD has tied up with English Book Depot, one of India’s leading book distributors for placement and rotation of reading materials appealing to Café Coffee Day’s discerning customers.

Highway cafés 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 combine the joy of rejuvenating amidst verdant landscapes and pots of coffee.

Cyber cafés 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! These are of course just milestones. CCD is about to launch Sports Café, Fashion Café & Singles Café……..

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BENEFITS

Following are the benefits that a customer can get from Café Coffee Day:

1. Benefits through pricing of products

Considering that Cafe Coffee Day is trying to target a market whose age

range is between 15 and 60 years, a pricing policy appealing to this

segment is difficult. The pricing is extremely low and act as a deterrent to

some customers who might regard it as an indicator or quality, while very

high prices cannot be afforded by most of the youth. But since Cafe Coffee

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Day’s current consumer profile is quite young, their prices are mostly

inexpensive, and at par with their competitors.

2. Benefits through different product line

They are 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. Café Coffee Day product Mix constitutes a wide range of products

that appeal primarily to Indian coffee and snack lovers. Products have a decided

Indian taste to it - be it food or coffee. Most of the eatables have been adopted to

meet the Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich

etc. Thus they have been trying to capture the Indian taste along with classic

coffee. The best selling item in summer is frappe, which is coffee and ice cream

blended together. The young people favor it. In winter it is cappuccino. Their

merchandising includes funky stuff like t-shirts, caps etc.

3. Benefits through Location

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Cafe Coffee Day looks to cater to their target market with strategically located

outlets. Their outlets are generally located at High Street/ Family Entertainment

Centers. Considering their generic appeal, there are Cafe Coffee Day outlets in

and around Malls, Cinemas, Colleges, and Offices etc. This endorses their brand

image of a café that appeals to coffee lovers of all ages.

4. Benefits through People

The people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite

and Positive.

SALES PROMOTIONS

· Merchandising- Every CCD stocks merchandise ranging from coffee mugs, Tshirts,

caps, bags, coffee filters, mints, different flavours of coffee powders,

tea and cream, wafers and biscottis. It also merchandises promotional

materials for other brands it associates with. When some brands are

conducting events for which passes are distributed or movie premiere tickets

are given out, CCD is an important hub for these activities as most of the

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target market.

· CCD’s Guide to Active Holidays- It is a travel guide focusing on adventure

sports and is available in the CCD outlets, for people seeking escapade from

monotonous life.

· Café Beat- An in-house magazine which gives the entire low-down on what’s

happening in CCD outlets across the world. It describes experiences of

customers, celebrations in CCDs, and covers youth-centric topics like movies,

music, travel, lifestyle, e-dating, books and careers. Around 38% of CCD

goers read Café Beat and some carry it back with them.

· CCD has now tied up with WorldSpace and Microsense to provide satellite

connectivity in its outlets.

SEGMENTATION STRATEGY

Café Coffee Day has its main consumer base in the age group of 15-29 years. Its

customers are mainly middle class and upper middle class youth who are upwardly

mobile. From the market, CCD seeks to target not just the youth but anyone who is

“young at heart”. More than 10% of their customers are above 35 years of age. The

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evidence of the connect CCD has been able to make, particularly among the youth,

comes from the findings of Brand Equity's Most Trusted Brands 2008 survey. In the

food services category, CCD ranks No 2, while McDonald’s stands at No. 3 and

Barista lags at No 5.

The graph below indicates official figures for the type of consumers of CCD. We can

clearly see that its most profitable segment is the 20-24 age brackets. These

customers can afford to visit CCD on a regular basis and have a habit-forming

attitude towards CCD.

SEVEN STEPS OF GREAT SERVICE

1. WELCOME THE CUSTOMER Acknowledge customers presence at the café. A smile goes a long way. That is guaranteed.

Open the door to receive a customer & greet him courteously with a smile Meeting greeting & seating the customer in a warm & friendly manner sets the

ball rolling for the service that follows .It will reflect in voice

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Check whether the customer wants a takeaway or will be seated at the café Take his preference if possible & direct him to available vacant tables. Request

the customers to be seated & introduce self.

2. TAKE THE ORDER & PRESENT THE BILL

A confident demeanor & good menu knowledge will help you to assist the customer to his satisfaction

Hand over the menu to the customer & if not ready return to take the order in a few minutes

Help the customer choose the right coffee or food by explaining in detail the attributes of the product. It is important that you recommend special product & add – ons & combos of food & beverages to the customers. Suggestive selling will help you offer customers a better choice of their products.

When the customer is ready to give the order, use handheld terminal. Choose “SELL” amongst user functions. Enter the table number & the number of people. Take the order.

Check if the customer is the café citizen ,if not, enroll the customer in the café citizen program

Inform customers at what time they should expect order to be served. For eg. ” order will be served in 10 minutes. Sir”

Print the order confirmation cum bill & place it in the folder on the table.

TIP: use one liner terminology to describe product & its benefits to the customer.

3 .SALVER SERVICE

Serve the customer at the promised time & know the products that you are about to serve .Pride in products will enhance the customers confidence in their brand.

Arranged the readied products on a salver Serve the food first & serve the cold coffee, hot coffee or other beverages

later. However check the customer’s preference. For eg. “Can I serve the food items first, Sir or would you like everything to be served together?”

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In case of no specific customer preference serve food first followed by coffee/ beverages

Announce the name of the product while you serve the product Remember who ordered which coffee / food in case of a group & serve the

items accordingly If there are four people gathered at a table, then bring the coffee two at a

time. Else, if you wait to bring all four together, the first two will not retain their temperatures.

In case there are any delays after announcing the time of service, please keep the customer informed of delay.

TIP: Ensure that you have served all the mandatory accompaniments with the food & beverages like sauces, cutlery, napkins etc...

4. VERBAL FEEDBACK & REPEAT ORDER

A feedback on existing service would help you improve performance in future .Also; the customer will feel more valued & important.

Keep an eye on the tables in allocated section Check with the customer if they would like some more coffee , snacks or

desserts Interact with as many as customers as possible & get their feedback on the

service & product. For eg. Hope you liked the coffee Sir! I hope you found the service friendly & prompt. Is there any way we can improve our quality of coffee, food or service

TIP: If you ask for feedback, you are sure to receive comments from customers

5 .CLEARANCE

Prompt clearance of the tables ensures that customers find the café seating area clean, hygienic & presentable when they are seated at the tables

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Clearance should be very prompt Clear empty plates, cups & soiled napkins from the table using a salver Ensure that the surface & edges of the table is wiped with assigned

scrubber .Use a spray gun to dampen the table with a cleaning agent prior to wiping the table.

6. BILL SETTLEMENT & CUSTOMER FEEDBACK MAKE THE POST SERVICE WAITING PERIOD EASY & FAST FOR THE CUSTOMER

When the customer is ready to leave check the amount of the bill from handheld & tell him the overall amount payable

Once the customer places the cash, remove the bill folder from the table & clear the transaction promptly

Request the customer to fill up the comment card. ”I would be delighted if you could kindly fill up our customer comment/ feedback form while I return with the change, Sir!”

Present exact change to the customer & collect the comment card.” Change, Sir!”

In case of any negative comment, tackle the situation before the customer leaves the café .Acknowledge good comments too.

7. PARTING REMARKS

Show customers that we value them & want them to return. A pleasant parting remark would ensure that customer comes back to café

Thank the customer for choosing CAFÉ COFFE DAY. And how delighted you are to be of service to him. “Thank you for choosing CAFÉ COFFEE DAY, Sir! It has been a pleasure having you over.”

TIP: It is not what you say, but how you say it!

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RESEARCH METHODOLOGY

Research Design

The controlling plan for a marketing research study in which the methods and

procedures for collecting and analyzing the information is to be collected is

known as Research Design or a framework or plan for a study that guides the

collection and analysis of the data.

RESEARCH METHOD/ DATA SOURCES

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Descriptive Research-

A research design in which the major emphasis is on determining the frequency

with which something occurs. For example, how often users access internet in a

given month. The focus of descriptive research is to provide an accurate

description for something that is occurring.

Data Source:

In this project both primary data as well as secondary data are used.

PRIMARY DATA

Primary data used in this project is collected through three sources:

Questionnaire Method

Direct Personal Interview Method

Observation Method

SECONDARY DATA

It is not possible to collect first hand information for each & everything so,

secondary data from various sources like Internet, A. C Neilson’s report on Jan,

2007, Information from television channels like CNBC, Z Business, NDTV Profit etc.

and Indian Infoline Website.

Sampling

A fine subset of the population, selected from it with the objectives of

investigating its properties is called a sample and the number of unit in the

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sample is known as sample size. Sampling is a tool which enables us to draw

conclusion about the characteristics of the population after studying only those

subjects or items that are included in the sample. In sampling method only few

units of the population is considered. The choice of an appropriate sampling

design is of keeping in view the objectives and scope of the enquiry and the type

of the universe to be sampled.

Sampling techniques:

Random sampling

Non random sampling

Random sampling:

A random sampling is done in such a way that each member of the universe has a

change of being selected, which enables statistics procedures to be used under

the result to estimate sampling.

Non random sampling:

In the non-random sampling the chance of any particular unit in the population

being selected is unknown. The judgments sampling method under non-random

sampling method was adopted for the study with a sample size of 100

respondents, which are chosen in a judgment manner from the customer. In this

method a designed number of sample unit is selected deliberately or purposely

depending upon the objectives of the enquirer so that only the important items

representing the true characteristics of the population are included in the sample.

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Area of sampling-

In this study primary data plays a vital role. The process of choosing the correct

number of respondents is nothing but sampling procedure.

Sampling area: Bangalore city

Sampling Size-

100 is the number of items to be selected from the universe to constitute the

sample. The method used here is random sampling and on- the spot sampling,

where the samples are selected without considering any particular quality.

Sample Method-

Random Sampling

RECOMMENDATIONS &

CONCLUSIONS

From the project we can conclude the following:-

That Café Coffee day is planning to go international.

The other major things regarding service marketing is that customers give

top priority to the quality of the services / products and ambience.

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The major competitor of Café Coffee Day is undoubtedly Barista as both of

the service providers cater to same market segment India as they find India

new target market.

Recommendations:-

1. To improve the interiors and décor.

2. To have more and more tie-ups.

3. Only 50 % or less than 50 % people find Café Coffee Day quality of service,

ambience, pricing and location to be very good which proves that still Café

Coffee Day need to do lot of homework in order to satisfy its customers.

4. It should introduce a feedback form system in order to know about the

customers satisfaction level.

BIBLIOGRAPHYObservation

Books referred

Marketing management

Service marketing

Text book-

Consumer behavior-

Websites

www.google.com

www.cafecoffeeday.co.in

www.wikipedia.in

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www.answers.com

www.coffeeindustry.com

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