Top Banner

of 15

Café coffee day - case presentation

Feb 07, 2017



  • Caf Coffee Day case [Team 8.3]

    Roel Hengeveld 1894137 | Frida N. Minhas 2818604 | Branisa Milosavljevic 2512874 Mariam Talakhadze 2818353 | Niek van de Ven 1967312

  • Table of contents

    Presentation Caf Coffee Day Industry Trends Marketing Mix The Consumer

    Solution Problem Statement Brand Associations Re-positioning PoPs and PoDs Recommendations

  • Presentation Caf Coffee Day

    To be the best cafe chain by offering a world class coffee experience at affordable prices

    Started in 1996 in Bangalore

    Caf Coffee Day is the market leader (60% market share) First of its kind, the pioneer

    Huge web presence and fan subscription 80% of visitors in 15 29 age group

  • Presentation Industry Trends

    Potential for cafs opening up Changing lifestyles, growing disposable income, Get-together becoming part of a lifestyle, turning into


    Growing urbanization Industry growing with 25-30% annually

    Competition is rising Barista Lavazza, Starbucks, Costa Coffee

  • Presentation Marketing Mix

    Little competition at first meant not a highly differentiated marketing mix

    Current brand strategy situation Marketing Mix Place is the major advantage over competition Edge on Pricing aspect due to ownership of estates Product is similar to competitors Promotion was not used the first decade

  • Presentation The Consumer

    Ideal demographics for caf outlets & retail coffee chains

    Typical characteristics: Age group of 15 25 in the habit of eating out Average spending at coffee retail shops of 200 INR = 2.60 Busy schedule supports coffee integration into the lifestyle Culture of get-together and hanging out

  • Solution Problem Statement

    Problem lies with brand associations & positioning

    No clear focus Wanting to provide premium coffee cafs Lowering prices at the same time to satisfy a broad set of


    It is important for Caf Coffee day to clarify its positioning and build brand associations in order to differentiate itself from the competition

  • Solution Brand Associations

    Mean score per brand Category Questions

    included Non-loyal CCD Barista Lavazza

    Price 1, 7, 17 3.01 3.07 3.15

    Place 24, 27, 29, 31 3.32 4.24 3.89

    Customer 2, 3, 4, 8, 18, 19, 26, 32

    3.34 3.67 3.38

    Product 5, 20, 21, 22, 25, 28, 30

    3.42 3.8 3.98

    Brand 6, 11, 12, 13 3.39 3.63 3.53

    Social 9, 14, 16, 23, 27 3.35 4.29 3.76

    Relax 9, 10, 15, 31 3.45 4.21 3.79

    Note: some questions are placed in 2 categories, in that case scores count for both categories.

  • Solution Brand Associations

    Questionnaire can be divided into smaller set of categories

    CCDs critical associations are Place, Social and Relaxation

    CCD is a place to hang-out and relax, either alone or together, whilst appreciating the interior and atmosphere

  • Solution Brand Associations

    Implications for Caf Coffee Day Price is perceived better for Barista Lavazza, despite CCD

    competitive pricing

    Possibly due to lack of promotional effort Differences in Place are not as high as expected Competition gaining up, point of importance because it

    is a critical association

    Notable differences between loyal and non-loyal customers Also lack of promotion could be the cause for this

  • Solution Re-positioning

    Important to identify themselves and the competition in order to re-position

    Brand values Affordable coffee Quality experience Relaxing atmosphere

    Caf Coffee Day has some critical associations, these need to be used to differentiate itself more from the competitors

    Creating a Brand Mantra Social Urban Relaxation

  • Solution Re-positioning

    Identifying target market Students & young, urban professionals Tech-savvy population, therefore using social media

    campaigns is a good way to promote the brand

  • Solution PODs & POPs


    Place / Location 1350 locations

    Price / Value for Money 10500 acres of own


    Promotion Strong web presence


    [Category] Product Offering

    [Competitive] Promotion

    [Correlational] Price vs. Premium Cafes

  • Solution Recommendations

    Invest in TV Advertising

    Invest in Social Media and Viral Marketing

    New flavors and assortment in product line

    Journey of the Coffee Bean From soil to cup Beanie the coffee


    Coffee Day Celebration

    Altering Furniture

    Loyalty Program

    VIP Tables

  • Thank You! We are ready for your questions