Café coffee day - case presentation

Café 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 ¤  Café Coffee Day ¤  Industry Trends ¤  Marketing Mix ¤  The Consumer

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

Presentation – Café Coffee Day

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

¤  Started in 1996 in Bangalore

¤  Café 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 cafés opening up ¤  Changing lifestyles, growing disposable income,

¤  Get-together becoming part of a lifestyle, turning into statement

¤  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 café 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 cafés

¤  Lowering prices at the same time to satisfy a broad set of customers

¤  It is important for Café 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

¤  CCD’s 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 Café 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

¤  Café 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

POD

¤  Place / Location

¤  1350 locations

¤  Price / Value for Money

¤  10500 acres of own estates

¤  Promotion

¤  Strong web presence

POP

¤  [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

bean

¤  Coffee Day Celebration

¤  Altering Furniture

¤  Loyalty Program

¤  VIP Tables

Thank You! We are ready for your questions