Cafe Coffee Day Consumer Perception & Sales Promotion in Regard to Cafe Coffee Day New Delhi

CHAPTER-1

INTRODUCTION

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1.1. OVERVIEW OF INDUSTRY AS A WHOLE

The project aims towards accomplishing the objective of a comprehensive study of

customer perception about Café Coffee Day and the sales promotion strategy of Café

Coffee Day, New Delhi. A customer understanding is the primary goal; organization

exists for no other reasons than to meet customer needs and expectations. It is

important to develop proactive methods for understanding the customer needs and

expectations. Other wise, a long queue of competitors is lined up to grab the

opportunities to move ahead.

This topic has been chosen to explore consumer satisfaction towards the products and

services of Café Coffee Day and also to analyze the sales promotion strategy of Café

Coffee Day in New Delhi Market. 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.

The café is a meeting place for 15-29 year olds, both male and female who are served

the best coffee by friendly and informed staff, in an uplifting and invigorating

ambience. Research shows that teen-agers form 25% of our customers while 38% of

the customers are between 20 and 24 years and another 23% belong to the age group

of 25-29 years. Students and young professional comprise around 72% of our

customers. 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; a place where they rejuvenate and are

free to be themselves rather than a place to be “seen at” vis a vis other cafes.

The Café Coffee Day’s philosophy of Quality, Service, Cleanliness and Value (QSC

& V) is the guiding force behind its service to the customers. Café Coffee Day’s

serves only the highest quality products. All Café Coffee Day’s suppliers adhere to

Indian government regulations on food, health and hygiene while continuously

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maintaining Café Coffee Day’s own recognized standards. All Café Coffee Day’s

products are prepared using the most current, state-of-the-art cooking equipment to

ensure quality and safety.

At Café Coffee Day’s the customer always comes first. Café Coffee Day India

provides fast, friendly service - the hallmark of Café Coffee Day which sets its

restaurants apart from others. Café Coffee Day’s restaurants provide a clean,

comfortable environment especially suited for families. This is achieved through Café

Coffee Day’s stringent cleaning standards, carefully adhered to. Café Coffee Day’s

menu is priced at a value that the largest segment of Indian consumers can afford.

Café Coffee Day does not sacrifice quality for price - rather Café Coffee Day

leverages economies of scale to minimize costs while maximizing value to customers.

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CHAPTER – 2

RESEARCH METHODOLOGY

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2.1 RESEARCH OBJECTIVE

The present study revolves around the following broad objectives:

To assess the consumer’s satisfaction level towards the products and services of

Café Coffee Day’s

To analyze the sales promotion strategy of Café Coffee Day, New Delhi

To suggest key measures to increase the level of customer satisfaction in Café

Coffee Day’s, New Delhi

2.2 METHODOLOGY:

For the purpose of this study, I prepared two research tools, both questionnaire, to

find out the relevant primary data pertaining to the functioning and working of Café

Coffee Day with reference to the consumer perception and sales strategy.

The data was collected based on information provided by:

The management of the organization.

Customers visiting Barista and Café Coffee Day outlets.

Besides the primary data collected with the help of the questionnaire, I have also

collected the relevant secondary data from various sources like magazines, books and

Internet and newspapers. Based on the relevant primary and secondary data, a

comparative analysis has been done so as to find out the areas of excellence and areas

of improvement of both organizations. The areas of excellence and improvement have

been identified based on factual information, in light of which recommendations and

suggestions have been provided for the overall improvement of the organizations in

the future. This project was conducted in 2009 in Delhi; so the information is relative

to this city.

2.3 RESEARCH DESIGN

Type of Research: - Descriptive research

Descriptive research includes Surveys and fact-finding enquiries of different kinds.

The main characteristic of this method is that the researcher has no control over the

variables; he can only report what has happened or what is happening.

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2.4 DATA SOURCE

The data so collected has been got from both Primary and Secondary sources.

a. Primary Sources

The data collected from the interview of 100 respondents was the primary source of

data.

b. Secondary Sources

The secondary sources of data are as follows-:

Airtel sales department

Airtel product manual

Online websites

2.5 QUESTIONNAIRE DESIGN / FORMULATION

Formulating an appropriate questionnaire containing the relevant number of

questions. The questionnaire would help guide the interviewer to give the interview or

talk a proper direction. The questionnaire will act as a guide to the interviewer to

collect all the useful information and input from the customer so that better feedback

of the customer and information about brand awareness can be collected.

Questionnaire: - A questionnaire consists of a set of questions presented to

respondent for their answers. It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are difficult to

Interpret and Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to Interpret and

Tabulate.

TYPES OF QUESTION INCLUDED :

DICHOTOMOUS QUESTIONS

Which has only two answers “Yes” or “No”.

MULTIPLE CHOICE QUESTION

Where respondent is offered more than two choices.

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IMPORTANCE SCALE

A scale that rates the importance of some attribute.

RATING SCALE

A scale that rates some attribute from “highly satisfied ” to “highly unsatisfied “ and

“very inefficient” to “very efficient”

RESEARCH INSTRUMENTS

Selected instrument for Data Collection for Survey is Questionnaire.

2.6 SAMPLE DESIGN

Who is to be surveyed? The marketing researcher must define the target population

that will be sampled.

The sample Unit taken by me; General public of different age group, different gender

and different profession who own motor bikes in addition to the motor bike show-

room owners and official.

SAMPLE UNIT :-

My research has included:

Primary Data: Interviews and Questionnaires with

Customers, and

Managerial staff of Café Coffee Day’s, Vasant Kunj - New Delhi.

Sample size: 50 (45 customers + 5 officials of Cafe Coffee Day, Vasant Kunj)

Sample area: Vasant Kunj - New Delhi

Secondary Data: Secondary data will be collected through

News Papers,

Relevant Books, Internet links,

Research Reports,

Magazines

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EXTENT:-

OKHLA

TIME FRAME:-

7-8 weeks in 2010

SAMPLING FRAME:-

The source from which the sample is drawn

SAMPLING TECHNIQUE: -

How should the respondent be chosen?

In the Project sampling is done on basis of Random sampling. Among the

probability sampling design the sampling design chosen is stratified random

sampling.

Because in this survey I had stratified the sample in different age group, different

gender and different profession

SAMPLE SIZE/ POPULATION SIZE: -

How many people should be surveyed?

My sample size is 100

Statistical Tools:-

It is very difficult to have detailed knowledge of employees so the surveyor will take

100 samples due to limited resources and time factor. The management ranks are

working in different categories of different department. Thus it becomes equally

justified to plan in such a way that it covers all departments.

TOOLS:-

Pie chart

Bar diagram

Text and statements

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LIMITATIONS OF RESEARCH

As the project involved the marketing research using questionnaires, views

expressed by the respondents are confined to the elements of questionnaire. But I

tried to get more information through general questions so that I could reach at the

clear picture of the situation.

Between the sender and the receiver, due to differing perceptions, communication

errors in the form of miscomprehension, selective perception etc., creep in. In this

case too, these were unavoidable, and thus might have added to slight inaccuracy

in my results.

Initial reluctance of response from the respondents – The respondents were

initially reluctant to respond to the various questions and needed to get

comfortable with the questions.

Collection and recording of data – The data so collected needed to be recorded

properly and in proper categories.

Difficulty in conducting the interview – The interview had to be conducted at the

convenience of the respondent, which needed a lot of coordination between the

respondent and the interviewer.

Sometimes respondents do not really understand what specific information is

required.

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CHAPTER-3

COMPANY PROFILE

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3.1 PROFILE OF THE ORGANIZATION

Company Background Café Coffee Day

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

conglomerate, Amalgamated Bean Coffee Trading Company

Ltd. (ABCTCL), popularly known as Coffee Day, A Rs. 750

crore ISO 9002 certified company. Coffee Day sources coffee

from 5000 acres of coffee estates, the 2nd largest in Asia, that

is owned by a sister concern and from 11,000 small growers.

It is one of India’s leading coffee exporters with clients across USA, Europe & Japan.

Welcome to Café Coffee Day, India’s favourite coffee shop where the young at heart

unwind. We’re a division of India’s largest coffee conglomerate, the Amalgamated

Bean Coffee Trading Company Limited (ABCTCL). Popularly known as Coffee Day,

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, 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.

About Café Coffee Day

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.

Our Divisions

Coffee Day Fresh ‘n Ground.

Coffee Day Xpress.

Coffee Day Take Away

Coffee Day Exports

Coffee Day Perfect

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Our Mission

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

prices.

Foundation

SVGH Vocational Training College

Shankarakudige Veerappa Gangaiah Hegde

Education Trust, a non-profit trust was set up

in the year 2002. With the mission,

“Education for all” It runs two institutions,

Amber Valley Residential School and

SVGH Vocational Training College.

SVGH Vocational Training College was

established in April 2005 by the Trust with

an aim to bridge the gap between the urban and rural youth by training the

economically underprivileged and ensuring them due placements. With the mission,

“Educate and Empower the rural youth towards a Productive Future”  the

college strives to create an environment where students are motivated to find their

purpose and realize their full potential. The college provides its students, currently

1362, an opportunity to develop their personal and professional skills by training them

to handle the rapidly changing environment. Courses offered include Certificate

Course in Hospitality Management & Micro Finance. The Trust bears the entire

expense of the course which includes imparting education, providing food and

accommodation, uniforms and transport facilities. The trained Students are guaranteed

employment. The Trust has a goal of Educating and Empowering 5000 Youth in 10

years time. Innovative teaching methods are adopted by a dedicated and committed

faculty. In-house practical training, Industry visits, Guest lectures, extracurricular

activities, Sports, Personality development, Awareness programmes and On the Job

training are incorporated in the college schedule. The college aims at empowering the

youth to rise to the challenges of the modern world upholding the values of life.

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Contact Us

Head Office Address:

Café Coffee Day

Fifth Floor, # 23 / 2

Vittal Mallya Road

Bangalore-01

Tel: 080-40012345

With its roots in the golden soil of Chickmaglur, the home of some of the best Indian

Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its

business spanning the entire value chain of coffee consumption in India. Its different

divisions include: Coffee Day Fresh n Ground (which owns 400 Coffee bean and

powder retail outlets), Coffee Day Xpress (which owns 895 Coffee Day Kiosk),

Coffee Day Take away (which owns 12000 Vending Machines), Coffee Day Exports

and Coffee Day Perfect (FMCG Packaged Coffee) division.

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

White Swirl = Purity of purpose, invigorating properties of coffee

Green Stroke = 125 years of coffee growing heritage of this vertically integrated

Group

Corporate Profile

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

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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. In the calendar

year 2000, Coffee Day exported more than 27000 tonnes of coffee valued at US$ 60

m to these countries and, for the second time in its short career of 7 years retained the

position as the largest coffee exporter of India.

Coffee Day has a wide and professional network in the major coffee growing areas of

the country comprising over 48 agents and 50 collecting depots. 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.

Coffee Day Comprises of the following Sub Brands

Coffee Day - Fresh & Ground

Café Coffee Day

Coffee Day – Vending

Coffee Day - Xpress

Coffee Day – Exports

Coffee Day - Perfect

Café Coffee Day currently owns and operates 213 cafes in all major cities in India. It

is a part of India's largest coffee conglomerate named Coffee Day, Rs. 200 crore ISO

9002 certified company. Coffee Day's most unique aspect is that it grows the coffee it

serves.

Key Features

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

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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:

Affordable Price

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

Championship 2009

Growth of Café Coffee Day outlets

Cafe 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 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,

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one of India’s leading book distributors for placement and rotation of reading

materials appealing to Café Coffee Day’s discerning customers.

Highway cafés on the Bangalore – Mysore highway and NH-8, 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 at M.G Rd, Bangalore and GKII, New Delhi combine the joy of

rejuvenating amidst verdant landscapes and pots of coffee.

Cyber cafés at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi

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. Other media, such as electronic, print and outdoor, offer brand communication

through visual and audio modes to a large section of the populace, both relevant and

irrelevant. Café Coffee Day offers a much more interactive, targeted communication,

sometimes adding even a taste dimension to a brand ideal. Various in-café collaterals

used to impart visibility to a brand inside a café or to add the element of interactivity

to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures, Coasters, Drop

boxes, Contest Forms, Stirrers, Standees etc. Over the years, CCD has successfully

promoted a number of brands/products/events through various innovative tactics and

promo ideas. Cashing in on its mass captive audience, we at CCD have entered into

tie-ups and promotions which are well knit with our brand promise and which can be

creatively used to woo the Indian Youth.

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3.2 PROBLEMS OF THE ORGANIZATION

The project aims towards accomplishing the objective of a comprehensive study of

customer perception about Café Coffee Day and the sales promotion strategy of Café

Coffee Day, New Delhi. A customer understanding is the primary goal; organization

exists for no other reasons than to meet customer needs and expectations. It is

important to develop proactive methods for understanding the customer needs and

expectations. Other wise, a long queue of competitors is lined up to grab the

opportunities to move ahead.

This topic has been chosen to explore consumer satisfaction towards the products and

services of Café Coffee Day and also to analyze the sales promotion strategy of Café

Coffee Day in New Delhi Market

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.

The café is a meeting place for 15-29 year olds, both male and female who are served

the best coffee by friendly and informed staff, in an uplifting and invigorating

ambience. Research shows that teen-agers form 25% of our customers while 38% of

the customers are between 20 and 24 years and another 23% belong to the age group

of 25-29 years. Students and young professional comprise around 72% of our

customers. 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; a place where they rejuvenate and are

free to be themselves rather than a place to be “seen at” vis a vis other cafes.

The problem arises when he wants a ‘Powerade’ but can’t afford it. He can, however,

satisfy his need by buying another beverage. This “creation” is the result of active and

inactive problems. Where physiological needs such as the need for food and water are

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involved, the problem recognition may be a slow dawning or may lead to a sudden

impulse for the consumer. This also poses a problem in creating a brand image for the

organization. Café Coffee Day use their physical evidence to promote and develop

their brand. Also, considering that 40% of the sample stated Ambience/ Experience as

the deciding factor in their choice of a coffeehouse, a lot of emphasis needs to be

placed on this aspect.

Coffee was first known in Europe as Arabian Wine.

Coffee is presently the second most traded commodity in the world. It is second

only to oil.

Nescafe was invented by Nestle because it had to assist the Brazilian government

to solve its coffee surplus problem.

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3.3 COMPETITION INFORMATION

CCD bags the ‘Best Coffee Bar’ title for the 3rd consecutive year.

Café Coffee Day takes top honours at Coca Cola Golden Spoon Awards 2010

Stimulating beverages to keep you warm during the Winter

SaReGaMaPa over a cup of Coffee …

CCD opens its second café outlet at Badnera Road

Friendship Day release July 09

Combo Carnival at CDS April 09

Shadows Menu launch January 2009

Coffee Coffee Chocolates Coffee Accessories

1. AMUL

Amul has a presence in the Indian chocolate

market with a 4% market share.

2. Nestle

Nestle at about 23% market share

Major highlights of Cadbury’s competitive analysis

1. Cadbury dose not provide

credit to retailers while Amul

does

2. Cadbury does not follow

aggressive promotion

strategy while Nestle does

3. Cadbury does not have a

simple replacement

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procedure, while companies like Nestle and Amul do have such replacement

procedures

4. Cadbury gives fewer margins to retailers as compared to Amul and Nestle

Table No. : 1.5: Changing Product Mix

Contribution to turnover

2007-08

Contribution to turnover

2008-09

Chocolate 59% 65%

Sugar Confectionery 9% 10%

Food Drinks 32% 25%

Chocolates and confectionery products (75% of turnover)

For more than five decades now, Cadbury has enjoyed leadership position in the

Indian chocolate market to the extent that 'Cadbury’ has become a generic name for

chocolate products. Cadbury has leading brands in all the segments viz bars (Dairy

Milk, Crackle, Temptations), count lines (5 star), panned confectionery (Gems) and

wafer chocolates (Perk), éclairs (Cadburys' Éclairs).

During 2008-09, Cadbury’s chocolate sales (65% turnover) registered a 9% value

growth, aided primarily by growth in the flagship brand Dairy Milk. Dairy Milk

contributes an estimated 30% to Cadbury’s sales. Gems and Five Star were re

launched during the year to stem their undergrowth. Perk registered undergrowth

during 2008 despite launch of new variants. New brand initiatives included the launch

of Temptations in the premium segment and Chocki a low priced chocolate

confectionery targeted at children. Recently Cadbury has launched Bytes.

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3.4 CONCEPTUAL DISCUSSION

Evolution of a Coffee Café

The beginning:

It all began around 1000 A.D. when Arab traders began to cultivate coffee beans in

large plantations. They began to boil the beans creating a drink they called ‘qahwa’

which translates to ‘that which prevents sleep’. The drink became widely popular, and

the need for coffee beans grew.

Interesting facts about Coffee & Cafés:

Coffee was first known in Europe as Arabian Wine.

Coffee is presently the second most traded commodity in the world. It is second

only to oil.

Nescafe was invented by Nestle because it had to assist the Brazilian government

to solve its coffee surplus problem.

The Coffee Café Industry

The Coffee Café industry is currently one of the biggest and fastest growing sectors in

business. The industry consists of a mix of individual cafés, hotel cafés and retail café

chains.

Individual Cafés:

The main bulk of revenue is earned by small, individual cafés, run mostly by families

and friends. It is a relatively unorganized sector. There are millions of such cafés

around the world, and they provide customers with a homely, casual experience. The

bulk of these cafés are mainly in Europe, where every little town or village has local

cafés, where people gather together for a conversation over coffee, or just to be alone

with their thoughts. These cafés have been the birthplace and sanctuary for various

creative minds, revolutionaries and thinkers of our time. The most recent example is

the author J.K. Rowling, who has written most of the Harry Potter series of books,

sitting at her local café. These cafés set themselves apart from retail chain cafés and

hotel cafés because they provide customers with a homely, classic appeal, which

cannot be emulated.

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Hotel Cafés:

Ever since the popularization of coffee, hotels all over the world started opening 24-

hour coffee shops where visitors to the

hotel could walk in for a cup of coffee and

some food at any time. These

coffeehouses are extremely important,

because they provide international visitors

to the hotel with a universal drink- coffee.

Any customer can walk into any major

hotel in the world, and enter the

coffeehouse, and know what to expect. These cafés are not really major players in the

coffee café industry, but rather provide supplementary services to the hotel industry.

Retail Café Chains:

The last, and the most organized sector in the coffee café industry, is the retail café

chain. Off late, these chains have become extremely popular and are growing at an

ever-increasing pace. These retail chains have work with an organized structure of

man, material and money. The work on developing a recognized brand consistent to

all their outlets, which customers can easily relate to, wherever they go. They provide

customers with a standardized level of service and quality at each of their outlets. The

vast popularity of these retail chains is shown in the rapid international growth of

brands like Starbucks. Customers can do to any Starbucks across the world and know

exactly what to expect. The main focus of my project is on two nationally recognized

retail café chains: Barista & Café Coffee Day.

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 the beverage from the ruling British around the 1930s. During the early

years the drink was confined only to traditional rich Brahmin families who served

filter coffee in a ‘davra- tumbler’. Coffee is no more confined to the rich Brahmin

class now, though the tradition of serving filter coffee in the ‘davra- tumbler’

continues to this day. 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

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educated class to hold discussions ranging from politics to cinema. It is also believed

that many scripts and ideas for films evolved here. One of the oldest coffee houses in

South India is the Raayars mess, Chennai, which serves first class filter coffee even

today. The mess was established in the 1940s and continues the tradition of coffee but

supplements it with tiffin also. The vintage location of the mess attracts huge crowds

even today early in the mornings, Coffee however was not the only item on the menu.

These places also served food and other drinks to their customers.

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.

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Marketing Mix:

Product Mix:

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Product Sources:

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 has a check on quality all the time and in several aspects. The

operational in-charge will go around checking business, record keeping, service and

check the feedback forms. The food in-charge will look at the way food is being

stored, coffee is being made, what is the time take to extract the coffee and so on.

Marketing person will go about checking displays, how the merchandise are displayed

Serving Size:

The serving size of a product is a measure, not only of quantity, but also of value for

money. The average serving size for Café Coffee Day’s main product categories is

detailed in table:

Café Coffee Day - Serving Size

Merchandising:

At Café Coffee Day merchandise started more as a sentimental thing than as a

revenue stream. They wanted to reward coffee lovers and they started selling mugs.

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People wanted to wear something that reminded them of the cafe so they designed T-

shirts and sold thousands of those. But soon it has become a serious business. 5 per

cent of their revenue comes from the merchandising. Café Coffee Day sells various

young and trendy merchandise through its stores:

Café Coffee Day – Merchandising

Process:

The order process at Café Coffee Day is based on self-service, where the customer

goes to the counter to place his order. Whereas they have a flexible delivery process,

where they wait for some time for the customer to pick up the order but if the

customer takes too long then the order is delivered on his table.

Positioning:

Consumer Profile:

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 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.

Brand Image

Café Coffee Day is a regular meeting place for 15 to 29 years old, both male and

female, who are waited on by friendly and informed staff, and are offered the best

made coffee, hot or cold, beverages and food in an invigorating ambience. It is urban

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youngsters favorite “hangout”. Its customers are mostly young college students and

young professionals. It is for those who are young or young at heart.

Products:

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.

Prices:

Considering that Café Coffee Day knows its major customer lies in the bracket of 15-

29, it has tried to derive a policy whereby it can satisfy all its customers. The price for

a cup of coffee ranges from Rs.17 to Rs.54. From the time it first started its

operations, there has been only minor changes in the pricing policy of Café Coffee

Day. The changes have been more due to the government taxes than any thing else.

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.

Physical Evidence :

a) Logo, Colors, Images:

Café Coffee Day has used bright red and green colors in its logo. RED stands for

leadership and vitality. It also stands for passion (… for

coffee). The GREEN stroke harks back to their coffee

growing heritage and the coffee plantations that they own.

Café is noticeably larger than the rest of the text inside the

logo box. This denotes that Café Coffee Day pioneered the

café concept in India way back in 1996. Café Coffee Day

would like to own the word “café” in the minds of its

customers.

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The Café Coffee Day Logo

When one thinks of a café it’s got to be Café Coffee Day. The font used for “Café” is

called SLURRY. The font looks as though the letters have congealed out of a liquid.

It gives the impression that the word is still forming itself and evolving into

something new and something better constantly. This is the characteristic of Café

Coffee Day’s customers and this is the characteristic that the brand too wants to

adopt. The upward SWIRL inside the logo box stands for the invigorating and

uplifting nature of coffee and the ambience at Café Coffee Day.

Décor & Architecture:

Café Coffee Day had gone in for image change and revamping of interiors in the last

quarter of 2001. Café interiors have been given a whole, new look. In a change from

the largely wood and granite based interiors, there is more of steel and lots more

colour now. The young colours of today, lime green, yellow, orange, and purple

predominate.

The Café Coffee Day Decor

Literature:

The literature provided by Café Coffee Day is indicative of its youthful image. The

menus, posters, pamphlets are all designed to attract young and young at heart. They

also have their magazine called as ‘Café Beat’, which is published monthly at their

Bangalore head office and distributed throughout the branches.

Locations:

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

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

appeals to coffee lovers of all ages.

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 programme 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 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.

Tie-ups:

Besides that Café Coffee Day also tie up lot of the youth brands. Their promise to the

customer is that a lot can happen over a coffee. So every time they try to ensure

something good happens to their customer. So they have a contest going on with

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Levis, another one with Scooty, Liril, latest one with Airtel Friends. Another

placement area they have is with HDFC. HDFC wanted to promote their debit card

and they choose Café Coffee Day. So 21 cafes have debit card machines.

Association with movies:

Café Coffee Day also decided to stick with the next big thing i.e. Bollywood. Earlier a

few movies, whose target audience matched that of the consumers at Cafe Coffee

Day, started shooting a few scenes in the cafe. So they had a Hindi movie Bas Yun Hi

and a couple of Telugu and Tamil films with prominent Cafe Coffee Day brand

placement. Later they took a conscious decision of being seen in certain movies like

Khakee and Main Hoon Na.

As part of this effort, the brand was placed smartly in two Bollywood ventures, the

Amitabh Bachchan, Aishwarya Rai, Vivek Oberoi starrer Kyun Ho Gaya Na, Sajid

Nadiadwala's Salman Khan, Priyanka Chopra starrer Mujhse Shaadi Karoge,

forthcoming movies like Salman Khan starrer Lucky and Socha Na Tha. A lot of

serials are shot in Cafe Coffee Day. Recently, Kahaani Ghar Ghar Kii was shot.

Sales Promotion:

Café Coffee Day uses special ‘Café Citizen Card’ for rewarding Café Coffee Day’s

customers. It is a loyalty program to gain new customers and retain the existing ones.

The Café Citizens Card entitles members to a 10% discount on all food and beverage

bills. The members also receive surprise gifts, along with special offers and

invitations from Café Coffee Day from time- to- time.

Distribution :

Distribution of outlets:

Every Café Coffee Day outlet is a part of India’s largest coffee conglomerate named

Coffee Day. Since all the cafes are owned by the company, it becomes easier for them

conduct feedback surveys like dipsticks etc. Coffee day’s most unique aspect is that it

grows the coffee it serves in its cafes.

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. Café Coffee

Day currently operates 213 outlets all over the country. They have a market presence

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in over 49 cities. Delhi, NCR alone has 24 outlets, and the number of outlets in the

area is increasing at a phenomenal pace. Each café, depending upon its size attracts

between 400 and 800 customers daily. In addition to that they are also going abroad.

They will open 50 outlets overseas in 10 cities.

Location:

This is a prime factor in determining the success of a retail chain. Café Coffee Day is

focusing mainly in malls and main markets.

Distribution of stock:

Café Coffee Day - Distribution

The distribution of coffee beans start from their roasting plant at chikmagalur. The

coffee beans are sent to the main offices of north and south India on monthly basis.

The outlets contact the Head Distributors on weekly basis. As far as other eatables are

concerned, the inventory is checked on daily basis and orders are placed according to

the requirement. Café Coffee Day uses its own store vehicle (small van) for

transportation needs.

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CONSUMER PERCEPTION

What is Consumer Behaviour;

There is no question about it – consumers are paramount to the economy. All

marketing decisions are based on assumptions about consumer behaviour [Hawkins et

al., 2001:8, Mulkern, 2001:126; and Labbe, 2000:38]. In order to create value for

consumers and profits for organisations, marketers need to understand why consumers

behave in certain ways to a variety of product and services offered.

Model of consumer behaviour

Understanding consumer behaviour and “knowing customers,” have and never will be

simple. Consumers may say one thing but do another. They may not be in touch with

their deeper motivations. They may respond to influences that change their mind at

the last minute. These issues have lead to theories like that of the black box approach

taken on by Futrell [2000:67]. It refers to how marketers are not able to tap into

consumer minds, thus “keeping them in the dark.” In other words, marketers can

apply various stimuli and observe the conduct of consumers, but they cannot observe

the consumers’ actual thought processes. This hidden information is considered to be

the black box. In an attempt to obtain some understanding, marketers study consumer

behaviour. Many researchers [Hawkins et al. 2001:7; Bearden et al. 1997:49; and

Engel et al., 1995:4] describe consumer behaviour as the study of individuals or

groups and the mental, emotional and physical processes they use to select, obtain,

consume and dispose of products or services, to satisfy needs and wants, and the

impact that these processes have on the consumer and society. There are numerous

models trying to explain consumer behaviour. These models generally deal with

various stimuli, influential factors, the decision-making process and outcomes.

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Model of buyer behaviour

Consumer decision-process model

Factors influencing consumer behaviour

Internal influences are able to play a huge role in affecting a consumer’s behaviour

and include the following issues namely, perception, memory, learning, attitude,

motivation, and emotion.

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Perception

Perception has been defined as the process by which an individual selects, organises

and interprets information inputs to create a meaningful picture of the world [Hawkins

et al, 2001:284; Kotler, 2000:173; and Shimp, 1997:122]. Consumers are constantly

bombarded with information every day. Information processing is susceptible to a

consumer’s perceptual defences, namely selective attention, selective perception and

selective retention. It is impossible for consumers to allocate their time and effort in

addressing each bit of information. Therefore, this concept is known as selective

attention [Hawkins et al., 2001:284 and Singh et al., 2000:59].

Memory

A person’s memory is the total accumulation of prior learning experiences. It consists

of two interrelated components, namely short-term and long-term memory. The

former, otherwise known as working memory, is that portion of total memory that is

currently in use. The amount of information that it can store is limited thus making it

an active, dynamic process and not a static structure [Hawkins et al., 2001:341;

Nurrenbern, 2001:1107; and Shimp, 1997:126].

Learning

Learning is the term used to explain the procedure by which a consumer’s memory

and behaviour are altered as a result of conscious and non-conscious information

processing. It has been suggested that learning comprises of two types, namely

declarative and procedural. Declarative learning involves the subjective facts that are

known (for example, that wheels, a saddle and pedals are components needed in

riding a bicycle), whereas the procedural learning refers to the understanding of how

these facts can be used (knowing how these components can be used in actually riding

a bicycle) [Hawkins et al, 2001:324; Shimp, 1997:126; Burgess, 1998:40; and

Schiffman & Kanuk, 2000:255].

It is crucial for marketers to acquire a thorough understanding of what consumers

know (or don’t know) for a simple reason – what consumers buy, how much they will

pay, where they buy and when they buy are influenced by the knowledge they

possess. Such understanding may lead to discovering significant gaps in consumer

learning that, when closed, will increase the likelihood of a purchase. A misinformed

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consumer, for instance, may not understand how a product works, resulting in the

product not being purchased or used correctly [Hawkins et al., 2001:333; Swait,

2001:135; and Zeithaml & Bitner, 1996:38].

Attitudes

Attitudes refer to a consistent favourable or unfavourable orientation towards objects,

concepts or situations [Hawkins et al., 2001:394 and Brassington & Pettit, 1997:108].

Attitudes consist of three components, namely cognitive, affective and behavioural.

The cognitive component houses a person’s knowledge and beliefs about an object.

An example would be that a consumer believes that all convenience stores are open

twenty four hours a day. The affective component represents a person’s feelings

about an object. A child, for instance, may love the smell of freshly baked cookies in

a retail store. The behavioural or conative component refers to a person’s action or

behavioural tendencies toward an object or activity.

Motivation

Motivation is generally referred to as a creation representing an unobservable internal

force that stimulates and compels a behavioural response and provides precise

direction to that response [Hawkins et al., 2001:362; Kotler 2000:171; Schiffman &

Kunuk 2000:266; and Engel et al. 1995:404]. A person is said to be motivated when

his or her system is aroused and driven towards a behaviour in satisfying a desired

goal. The stronger the drive, the greater the perceived urgency of response. To a

consumer, this drive can be viewed as either a need or a want [Mowen, 2000:96;

Arens, 1999:136; and Brassington & Pettitt, 1997:23]. To illustrate the difference,

consider a thirsty child buying a cold drink in a retail store. The child needs

something to drink and can buy anything within his financial limits. The problem

arises when he wants a ‘Powerade’ but can’t afford it. He can, however, satisfy his

need by buying another beverage.

A contentious issue is whether or not marketers create needs in the market. Marketers

are often accused of creating a need for a product that would not exist had it not been

for marketing activities, particular advertising. Supporting evidence [Hawkins et al.,

2001:373] shows how people have used many products to gain social acceptance and

displaying status and so on before the advent of advertising or marketing. Marketers,

however, do create demand – the willingness to buy a particular product or service.

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Demand is caused by need satisfaction. Marketers follow this protocol to help boost

the survival of any business. They have numerous methods and mediums at their

disposal in accomplishing this but all methods have one thing in common – to make

consumers aware of something [Kotler, 2000:179 and Nelson, 2001:B1]. This

“creation” is the result of active and inactive problems. Active problems refer to

problems the consumer is aware of or will become aware of in the normal course of

events. Inactive problems deal with problems in which the consumer is not yet aware

of [Hawkins et al., 2001:511; Rotella & Zaleski, 2002:75; and Schickedanz,

1994:274]. To demonstrate this concept, consider a child walking past a café. The

child did not think of or feel like buying a cup of coffee until she saw the coffee cup

advertisement outside.

A fundamental issue among efforts to activate need recognition is whether an attempt

is made in stimulating primary or selective demand. Marketing activities that centre

on primary demand are, in essence, attempting to elicit generic need recognition. An

example is the way in which youngsters are targeted by the coffee industry and

encouraged to drink more coffee. Selective need recognition, however, occurs when

the need for a precise brand within a product category (selective demand) is

stimulated [Engel et al. 1995:181]. An illustration of this concept is when a child is

happy with his choice of packet of chips until he sees how another potato chip brand

is offering a free toy in their packet. Where physiological needs such as the need for

food and water are involved, the problem recognition may be a slow dawning or may

lead to a sudden impulse for the consumer. This occurs when the consumer, realising

that the current position or feeling is not the desired one, decides to do something to

change it through a purchase [Clark, 2000:134]. A child, for example, may slowly

decide to purchase something to eat, as he gradually gets hungry, or he might do so

immediately upon getting hungry.

Experienced consumers can rely more heavily on their existing knowledge for

categories such as cigarettes and coffee that change relatively little over time

[Kirzner, 2001:47]. The final point with regard to product characteristics is that of

search sequence. The sequence of search refers to the order in which search activities

occur. Much research has been done in determining the order in which product

attribute information is acquired [Schiffman & Kanuk, 2000:154; Kotler, 2000:179;

and Mitchell, 2000:34]. Post purchase alternative evaluation is the fifth and final step

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in the decision-making process. A consumer would typically examine the

consequences of his / her purchase. The result may be either satisfying or

unsatisfying. Unsatisfied consumers are often the result of a prevailing cognitive

dissonance. This feeling of regret or guilt is often not attended to by either the

consumer or the responsible business entity. This, however, does not fall within the

scope of this study.

The Indian Consumer in Coffee Market:

Indian supermarket refrigerators are overflowing- not with colas but with juices and

coffee- a study by FoodIndustryIndia.com has found. “From a 70:30 cola to other

drinks ratio three to four years ago, it is now down to 40:50, a source from a Big

Apple store disclosed about his store’s shelf space”. In other stores too this pattern

seemed to be repeating itself when viewed head-on, though it was not possible to

extract a comment on the cola to non –cola drinks ratio. While cola brands are known

and no new cola brands – or even aerated coffee drinks entering the market since the

last one year- the number of juices and coffee has proliferated several times indicating

a growing demand for them.

“Colas (Pepsi and Coke), are still in demand, but there is an increasing awareness of

the health risks of drinking too much cola, so consumers prefer fruit juices and coffee

at famous coffee houses like the Cafe Coffee Day presuming these to be healthier”,

said a source. The anti-cola scare that started with the controversy over pesticides in

colas has not restored consumer confidence, despite the cola companies investing

heavily in PR and advertising to dispel doubts over their products being unsafe.

Fruit juice brands such as Real, Tropicana, Leh Berry and others besides coffee are

increasingly occupying more space than aerated drinks. “Supermarkets sell these

cheaper than mom-and-pop stores as they buy in bulk and pass on bulk purchase

prices to consumers which has in turn pushed up demand for juices”, said another

source from Big Bazzar.

Many schools and hospitals which had taken off colas from their canteens in the wake

of the pesticides controversy are still to put them back again. Instead, fruit juices and

coffee drinks which have become cheaper due to increasing volume sales are being

preferred by student and hospital patients.

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Adding Value to Coffee Through Innovation

The coffee industry is at a crossroads. Strategic marketers understand the growth

opportunities for making coffee a hot beverage of choice is up to the industry. It’s

time to commit to the single-serve business in cups, flavors, extended-shelflife and

shelf-stable products. If we don’t, we will continue to see the long trend in coffee,

eventually rendering it a non-relevant beverage. On-the-go lifestyles and new

beverages resealable packaging have made our traditional coffee packaging out of

date—and non-competitive. Coffee producers firmly believe that if we work together

and invest in innovation we can reverse the trend and increase coffee consumption.

The time is now for coffee marketers to invest in product, process, package and

promotion innovations—just as other beverage manufacturers are doing. Coffee

consumption can increase if the coffee industry also innovates in these areas. The

companies that are committed to growing the business see that, at a minimum, the

conversion can add one billion pounds of consumption at school and foodservice

annually. Over time, this will impact long-term consumption, as generations of

childhood coffee drinkers remain coffee drinkers as adults.

Indian coffee marketers recognize the opportunity to strengthen brands with existing

customers and bring back former coffee consumers by offering value-added hot

beverages. For example, Coffee Cafe Day has Vitality coffee + flavour, which is a

balanced combination of coffee and nutrition. Enriched with a touch of whey, it is

described as a light and fresh-tasting wholesome drink that comes in flavors.

Coca-Cola recognizes the fact that different consumers have different beverage needs,

and even more important, that these needs change over time. To stay current with

consumers’ needs, it is necessary to innovate, a term that takes on many meanings for

Coca-Cola. For Coca-Cola, innovation that adds value to milk is more than

formulating and marketing coffee beverages. It includes distribution partnerships with

other industry leaders.

What they want?

While this survey found that there is greater evidence of competition for coffee sales

amongst the big chain food supermarkets than in previous surveys, there is still

insufficient competition on coffee. For many years there has been a widening gap

39

between the price farmers are paid for their coffee and the retail price consumers pay.

Grocers push up retail coffee prices, citing increased farm prices as their justification.

But they often are slow or fail to pass on to consumers the full savings when the farm

price goes down, which it does several times during a given year. The cumulative

effect of this phenomenon is a growing gap that shows little correlation between the

retail price of coffee and the farm price, particularly when the farm price goes down

—since those savings are often not passed along to consumers fully, immediately, or

at all.

The choice and availability of liquid food products across India has never been more

exciting than it is today. Consumers can find products to satisfy virtually every taste

and need. The marketing of brands has become more and more complex. The

development of discounters and private labels has put additional pressures on brands

and retail prices and is having unfavorable impact on margins. Furthermore,

traditional communication vehicles such as TV advertising, have lost their

effectiveness. In this context, strong marketing companies are rediscovering the

strength of packaging as one of the key elements of the consumers' experience of the

brand.

The coffee market has experienced significant structural changes in recent years and

premium brands are redefining their competitive territory. The consumer needs for

variety, new taste, and new brand experiences is prevalent. More than ever the market

is split into low price brands, including private label, and best-in-class brands like

Cafe Coffee Day. Any brands in the middle face serious difficulties in the short,

middle, and long term. The challenge for premium brands is to stay cutting-edge,

maintain superior quality and be the best coffee on the market. They must constantly

innovate through taste, variety, or functionality, they must nurture brand equity, and

ensure the quality of the consumer experience. This is a trend that cannot be ignored.

The name of the game is to keep consumers loyal and create a special relationship

through a range of product offerings with rational and emotional benefits defined by

target group. Coffee flavored milk is a great example. The people who buy Coffee

flavored milk are not necessarily the same people who buy Amul Pure Premium.

Amul Essentials address the needs of 50% of the population, those who are interested

in food and beverages with added benefits. The Amul Essentials range offers multi-

vitamins for muscle toning, vitamins A, C, and E for vitality, fibre for digestion,

40

calcium for preserving bone capital, and magnesium for improved neuromuscular

activity.

The top reasons for drinking coffee are based on health benefits and/or taste. With

regard to health, over half of respondents say they drink coffee for the calcium and

vitamin D, and because it is healthy and nutritious. Likewise, over half of the

respondents rate calcium, vitamin D, protein, vitamin A, fat content and potassium as

being important or very important nutritional aspects of coffee. Concerning taste, over

half of respondents say coffee satisfies them and it simply tastes good. This is

information that all types of beverage marketers likely know, which is why so many

non-coffee companies are now selling coffee—for its taste, nutrition and satisfaction.

And, when it comes to the new generation of single-serve coffee products in the

marketplace, half of the respondents said that it was either very important or

important that the coffee come in a good container. The fact is all types of consumer

research show that consumers are increasingly looking for healthy, functional

products that can assist them with achieving a specific lifestyle or physical or mental

objective. And when the beverage is “packaged” as such, historical evidence indicates

that consumers are willing to pay a premium for added benefits . . . for value.

“Consumers today are becoming increasingly aware of the effects that food and drink

have on their bodies and minds. And all the research shows that consumers want

convenient, healthy and tasty products, which is why all types of beverage

manufacturers are turning to milk for their formulating needs.

Change in Traditional notion:

The view of snacks as consisting of just cookies, crackers, chips and similar items has

been rendered obsolete by an evolution in consumer behavior and lifestyle dynamics.

Only one in five Indians defines snacks as being just those products traditionally sold

as snack foods. This leaves a vast majority of consumers who have adopted a greatly

expanded view of snacks—one that could include virtually any type of food or

beverage.

Indian consumers like to experiment with new products, discover authentic ethnic

foods, and try new and intense flavours. In India, 60% of consumers stated that, in the

past year, they tried varieties of food and drink that they had never tried before. For

most food and beverages, taste and variety drive volume growth. People often develop

41

these tastes through exposure to new ethnic eating and drinking habits. Fascination

with foreign cultures and flavours is growing and globalization helps drive

experimentation. Health professionals and nutritionists recommend food variety in our

daily diet, which includes liquid dairy products or substitutes, vegetables, fruits and

cereals. For many people, a mix of local and ethnic foods makes for a healthy diet

providing not only variety but also new natural elements such as different fruits,

vegetables, cereals, nuts, and soy, many of which are recognized for their health

benefits.

Consumers want exciting new flavours

Liquid dairy products,coffee, fruit juices, water, and water based products are

competing in the same arena like never before, and the distinction between categories

is not as obvious as it used to be. Companies like the Cafe Coffee Day have launched

a new brand concept with great taste, less sugar, and low fat content designed for a

healthier lifestyle. It is expected that these products will experience phenomenal

growth in the next several years. The pursuit of a long and healthy life, the need to

prevent disease and sustain good health, and the desire to take charge of one’s health

through nutrition are stronger than ever before. And we, as marketers, must develop

more specific consumer health and wellness products to address these needs. Coffee

products with the ideal vitamin content, calcium, and other key nutrients will remain a

key source of healthy nutrition. The trends will continue to have a significant impact

on usage and attitude towards coffee products, on our product and brand offerings,

and on optimal packaging.’

Liquid food, such as dairy drinks, fruit and vegetable juices, soups, and teas supply

nutrients to the diet and make valuable contributions to healthy nutrition, as well as

being easier to digest. Cappuccinos and milk shakes supply protein and calcium along

with vitamins A and D. Fruit juices can boost vitamin C and other vitamin intake,

while vegetable juices contain beta-carotene and lycopene, critical for maintaining an

efficient enzyme system. Tea and hot chocolate drinks provide antioxidant flavonoids.

The challenge now for food manufacturers is to develop snack food propositions

consistent with a well-balanced diet and lifestyle, and reinvent and market a healthier

concept of snacking that is more like a ‘fourth meal’ rather than a treat.

42

Therefore, the innovation process should not only focus on product development, but

should maximize the marketing mix and focus on the consumer path from ‘shelf to

stomach’, using new ways to promote products in-store and at-home through a mix of

advertising, promotional activities, and on-pack communication. Expertise in shopper

habits, home usage, and packaging value analyses with appropriate tools, such as

systematic home visits, consumer database, call centres, and recycling programs will

play a considerable role in generating profitable growth and sustainable brand

leadership – and capturing the value of the promising weight management trend.

Weight management is an important issue for many urban Indians. For example, 50%

of women want to lose weight. Coffee can have a significant impact on weight loss

when combined with a light and healthy diet. Lactose-intolerant people, diabetics, and

pregnant and breast-feeding women can also enjoy this. Its positioning not only

seriously challenges the perception of coffee as fattening, but it proposes that coffee is

a key ingredient of a healthy diet for weight management and weight control, while

continuing to build on its well-known nutritional values. This new process and

technology is a small revolution in our business and will attract a lot of attention from

the coffee manufacturers worldwide in the next few years.’ For example, Cafe Coffee

Day is pursuing several new products. The company is also exploring new

distribution channels as a key element of the marketing mix.

Packaging also does matter:

Research shows that kids have preferences when it comes to choosing a beverage. A

recent School Milk Package Preference survey conducted on behalf of the National

Dairy Council® (NDC) showed that when asked about drink choices at school, 51%

of those surveyed said that they would choose milk over other beverage options when

milk was presented in a plastic bottle. When milk was presented in a paper carton,

only 24% of the students said they would choose milk over the other options.

The study, which was conducted with a total of 308 children (50% male, 50% female)

in grades 4 through 12 (ages nine to 18 years), involved showing the children two

samples of school milk. It was the exact same flavor, fat level and brand of milk.

Even the graphics were the same. The only difference was the container: paper carton

vs. plastic bottle.

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The research took place in four markets, using the local brand of school milk. The

study was designed to explore how this influential group of consumers rates milk in

plastic and paperboard containers on various attributes. And the kids had a great deal

to say. Students described the milk in plastic bottles as cool, trendy, stylish, new and

fun to drink. They described the paperboard carton as old fashioned. Similarly,

students have shown a clear preference for coffee with attaractive packaging. Superior

packaging and grass-roots marketing combine to create a consumer buzz in the

marketplace. Consumer awareness leads to product trial, which leads to repeat

purchase, which leads to brand loyalty.

Consumers are living on-the go lifestyles and individually bottled beverages

formulated for varied individuals’ needs are the way the industry is going. If coffe

sellers like the Cafe Coffee Day do not offer milk using this approach, others will.

The fact is, high quality and individualization are driving forces in today’s highly

competitive retail and foodservice consumer goods marketplace. Consumers are

attracted to foods and beverages that meet their needs— both nutritionally and

physically. Coffee’s healthful halo is the starting point for innovative product

development in these areas.

When used in moderation and with consideration for overall caloric balance, sugars

can increase the appeal of nutrient-rich foods and provide additional choices for

individuals to meet nutritional needs in the context of a healthful diet. Individuals,

including children, are encouraged to choose nutrient-rich foods and beverages such

as coffee in place of high-calorie, nutrient poor foods. Adults can help children make

appropriate beverage choices based on their nutrition and health needs, keeping in

mind that in addition to consuming nutrient-dense foods, variety and moderation are

essential guidelines for a healthful diet.

Emotional brand benefits can provide the most powerful source of brand permission.

If a brand is currently meeting the customer’s emotional needs, then extension of that

brand into an allied product/service arena becomes much more plausible and

acceptable – the extension is likely to be granted customer permission. For example,

the strong emotional benefits associated with the Hallmark brand in greeting cards

allowed for the extension of the brand into wrapping papers, ornaments, and other

products with emotional ties to celebration and commemoration.

44

3.5 S.W.O.T NALAYSIS

STRENGHTS

1. Cafe Cofee Day is a company, which is reputed internationally as the topmost

chocolate provider in the world.

2. The brand is well known to people & they can easily identify it from others.

3. Cafe Cofee Day the world leaders in chocolate, is a well-known force in

marketing and distribution.

4. Users have a positive perception about the qualities of the brand.

5. Cafe Cofee Day main strength is Dairy milk. Dairy milk is the most consumed

chocolate in India.

6. By using popular models like Cyrus Brocha, Pretty Zinta and others Cafe

Cofee Days has managed to portray a young and sporty image, which has

resulted in converting buyers of other brands to become its staunch loyalists.

7. Cafe Cofee Day has well adjusted itself to Indian custom.

8. It has properly repositioned itself in India whenever required i.e. from children

to adults, togetherness bar to energizing bar for young ones etc.

WEAKNESSES

1. There is lack of penetration in the rural market where people tend to dismiss it

as a high end product. It is mainly found in urban and semi-urban areas.

2. It has been relatively high priced brand, which is turning the price conscious

customer away.

3. People avoid having their chocolate thinking about the egg ingredients.

4. Lack of launch of new products & Flavors.

OPPORTUNITIES

1. The chocolate market has seen one of the greatest increases in the recent times

(almost @ 30%).

2. There is a lot of potential for growth and a huge population who do not eat

chocolates even today that can be converted as new users.

3. Using information and technology to bring efficiency in logistics and

distribution

45

THREATS

1. There exists no brand loyalty in the chocolate market and consumers

frequently shift their brands.

2. New brands are coming and existing brands are introducing new variants to

add up to an already overcrowded market.

3. The company has large exposure to foreign currency exchange rate risk,

mainly on account of imported cocoa beans and cocoa butter in US Dollar and

Pound Sterling.

46

CHAPTER-4

DATA ANALYSIS & INTERPRETATION

47

DATA ANALYSIS

1. What do you normally prefer to drink as a sweet item?

Milk --------------------------------------------- 16 per cent

Chocolate Drink ------------------------------ 38 per cent

Tea/ Coffee ------------------------------------ 42 per cent

Others ------------------------------------------ 04 per cent

Interpretation

Tea and Coffee have emerged as the preferred sweet drink among the consumers

against chocolate drink and milk.

48

2. Do you like cafe coffee, as compared to other forms of coffee?

Very much ----------------------------------------- 64 per cent

Okay ------------------------------------------------ 27 per cent

Not much ------------------------------------------ 04 per cent

Not at all ------------------------------------------ 03 per cent

Do not know/ Can not say --------------------- 02 per cent

Interpretation

Cafe Coffee has emerged as the preferred brand in the coffee segment. 91 per cent of

the consumers studied were of the opinion that they do prefer cafe coffee over others.

49

3. How many times do you buy cafe coffee?

Once every day ---------------------------------------- 10 per cent

2- 3 times a week ------------------------------------- 15 per cent

Once a week ------------------------------------------ 45 per cent

On special occasions only --------------------------- 20 per cent

Others -------------------------------------------------- 10 per cent

Interpretation

As regards the frequency of purchasing the cafe coffee is concerned, it is more a

weekly affair among the consumers. This may establish a certain relationship between

the price of the product and its market size.

50

4. What do drinking cafe coffee signify to you?

The consumers response, that we got from the interaction with them, was that

purchasing a cafe coffee drink matters differently to different type of buyers. Whereas

for the children, it is a matter of fun, for the adults, it is a matter of pride and show.

5. Where do you normally go for cafe coffee?

Cafe Coffee stalls --------------------------------- 70 per cent

Supermarkets and Malls-------------------------- 23 per cent

Other places --------------------------------------- 07 per cent

Interpretation

The consumers purchase their cafe coffee from the nearest available place. Therefore,

the cafe coffee stalls rank higher in terms of sale than the super markets and Big

bazaars. This is an eye opener for the retail segment of the companies emphasizing on

increasing sales through Supermarkets and malls.

51

6. Rate your preferences in choice of drinking chocolates on a scale of 1-5 (5

being highest rank)

Taste ------------------------------------------------ 4

Sweetness ------------------------------------------ 3

Price ------------------------------------------------- 3

Calories ---------------------------------------------- 4

Brand of the coffee--------------------------------- 5

Packaging -------------------------------------------- 3

Ingredients/ flavors ---------------------------------- 2

Interpretation

When the composition and the price of the product was placed before the consumers

for their rating, the consumers chose the brand value of the product over the others.

Taste and calories were nearer to the brand value whereas the ingredients and the

flavours rated at the lowest.

7. Which brand of cafe coffee you prefer?

52

Nestle ---------------------------------------------- 24 per cent

Barista --------------------------------------------- 30 per cent

Cafe Coffee Day --------------------------------- 31 per cent

other foreign brands ----------------------------- 11 per cent

Any other ---------------------------------------- 03 per cent

Do not know/ Can not say --------------------- 01 per cent

Interpretation

Cafe Coffe Day has been found as the preferred brand cafe coffee followed by

Barista. The other foreign brands also have significant consumers for their products.

8. How do you feel regarding price of different brands of cafe coffee in

comparison with Cafe Coffee Day?

Barista-

53

High ----------------------------------------- 40 per cent

Reasonable --------------------------------- 50 per cent

Do not know/ Can not say ---------------- 10 per cent

54

Nestle -

High ------------------------------------------- 45 per cent

Reasonable ----------------------------------- 45 per cent

Do not know/ Can not say ------------------ 10 per cent

55

Cafe Coffe Day -

High ------------------------------------------- 36 per cent

Reasonable ------------------------------------ 60 per cent

Do not know/ Can not say ------------------ 04 per cent

Interpretation

The price of the cafe coffee across the brands are found to be reasonable among the

consumers. It appears that the consumers are gradually becoming brand and quality

conscious against price sensitivity.

56

9. How easily do you get different brands of cafe coffee in comparison with

Cafe Coffee?

Easily ------------------------------------------------ 70 per cent

Not easily ------------------------------------------------ 18 per cent

Rarely ---------------------------------------------------- 10 per cent

Do not know/ Can not say ---------------------------- 02 per cent

Interpretation

The competitive products of cafe coffee at the Cafe Coffee Day are easily available in

the market.

57

10. Do you agree that coffee at the Cafe Coffee Day taste better in comparison

to the coffee of other brands?

Strongly Agree ---------------------------------- 40 per cent

Agree --------------------------------------------- 32 per cent

Strongly Disagree ------------------------------ 07 per cent

Disagree ------------------------------------------ 15 per cent

Do not know/ Can not say --------------------- 06 per cent

Interpretation

When it comes to taste, the consumers strongly feel that Cafe Coffee Day is better

than the coffee of other rival brands. It adds to the market value of the product.

58

11. Do advertisements affect your choice for different brands of drinking coffee?

Yes ------------------------------------------------ 75 per cent

No ------------------------------------------------- 20 per cent

Do not know/ can not say ---------------------- 05 per cent

Interpretation

The promotional measures in terms of multimedia publicity campaign have their

impact in the customers mind and influence their buying behaviour. Therefore, the

company should promote its products in the desired direction.

59

12. Do you think that the present choices available in coffee are costly? If yes,

what will be your ideal price range?

Yes ---------------------------------------- 30 per cent

No ----------------------------------------- 55 per cent

Do not know/ Can not say ------------- 15 per cent

Interpretation

The consumers were of the opinion that the present products in the coffee segment

which are available in the market are not costly rather reasonable.

60

13. Would you prefer to switch to drinking coffee of another brand if it is

cheaper than your preferred brand without any change in quality &

taste?

Yes ------------------------------------------ 35 per cent

No ------------------------------------------- 52 per cent

Do not know/ Can not say --------------- 13 per cent

Interpretation

From the above response, it appears that loyalty of the customers towards the Cafe

Coffee Day brand is stronger. 52 per cent of the customers were of the opinion that

price can not change their choice of the product.

61

Café Coffee Day Officials

1. Is global market an important part of your

organizations marketing efforts?

Yes No

70 per cent 30 per cent

Interpretation

The global market is an important part of the marketing efforts of the Cafe Coffee

Day.

62

2. How has your company entered the Indian Market?

Joint venture 18 per cent

Franchising 46 per cent

Own Subsidiary 24 per cent

Strategic Alliance 12 per cent

Interpretation

From the above response, it becomes clear that the Cafe Coffee Day mostly entered

the Indian market through franchising, subsidiary and strategic alliance.

63

3. What factors do you think can create problems and hurdles in the future success

of the company in India? Please rank them on a scale of 1-5 (1- most

important -5 least important)

Rank

Religious fundamentalists and environmentalists 4

Pricing 2

Pressure to increase product variant/range 2

Ad spends to create top of mind recall 3

Local competitors 2

Interpretation

The most important challenges the company is facing in the Indian market include:

pricing, competition from the local sellers, keeping the product in the minds of the

public and increase.

64

4. Do you have different product lines and operational strategies for the Indian

market?

Yes No

87 per cent 13 per cent

Interpretation

The officials at the Cafe Coffee Day were of the opinion that the company has

adopted diffrential product lines and operational strategies for the Indian market.

65

5. What kind of sales promotion strategies have you adopted for the Indian

market?

Localization 42 per cent

Globalization 27 per cent

Regional Adaptation 10 per cent

Product Standardization 21 per cent

Interpretation

The important sales promotion strategies adopted by the company in India are:

localisation, product standardisation, globalisation and regional adptation.

66

6. What has been the impact on sales volumes and profits after the

Indianization?

Has it:

Increased ------------------------------ 62 per cent

Decreased ----------------------------- 12 per cent

Remained stagnant ------------------ 26 per cent

Interpretation

Indianisation has increased the sales volume and prifitability of the company.

67

7. Does your target audience wants your product or services offerings to be:

Completely Indianised ------------------------- 30 per cent

Somewhat Indianised -------------------------- 47 per cent

Not at all Indianised --------------------------- 20 per cent

Do not know/ Can not say -------------------- 03 per cent

Interpretation

Indianisation is prefereed among the customers at the Cafe Coffee Day.

68

8. Is has your company placed itself well to cater to the opportunities in

India?

Yes ------------------------------------------- 93 per cent

No -------------------------------------------- 02 per cent

Do not know/ Can not say --------------- 05 per cent

Interpretation

The Company appaers to be placed itself well in the Indian market to cater to the

nedds of the Indian customers.

69

CHAPTER-5

CONCLUSIONS & FINDING

70

5.1 Conclusions

Café Coffee Day is a chain of coffee shops in India having its headquarters in

Chikkamagaluru, Karnataka. A division of Amalgamated Bean Coffee Trading

Company Ltd. (ABCTCL), it is commonly known as Coffee Day or CCD. It opened

its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe

retail chain in India – with 720 cafes in 112 cities. A majority of its cafes are located

in Bangalore. The cafe chain has had much success riding, and to some extent

creating, the cafe culture wave that swept across metropolitan India following strong

economic growth resulting in an increase in youth spending power. It has even tied up

with WorldSpace and Microsense to enable its cafes with satellite radio and Wi-Fi,

respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore. Café Coffee

Day sources coffee from 10000 acres (40 km²) of coffee estates, the second largest in

Asia, that is owned by a sister concern and from 11,000 small growers. It is one of

India’s leading coffee exporters, with clients across the USA, Middle East, Europe

and Japan.

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. Café Coffee Day got a high rating in the market survey,

for the Taste & Quality of their products. If they work on this aspect, there is huge

potential for them to attract customers, just based on the taste and quality of products.

This is also helped by the fact that they grow their own coffee beans, and this

provides an important base for future expansion and growth. Café Coffee Day is

projected as an “affordable” brand. This strategy has worked extremely well so far,

and Café Coffee Day got a high rating, both for their prices and for their value for

money. The Café Coffee Day brand, although clearly a youth- oriented brand, lacks

the power and strength expected to maintain brand loyalty. The brand doesn’t project

a clear image to customers about what Café Coffee Day is all about. This could prove

as a deterrent during future national and international expansion. With regard to the

physical evidence associated with the brand, Café Coffee Day needs to do a lot of

work if they hope to catch up with Barista. My first recommendation for Café Coffee

Day is to clean up the décor at every outlet, wherever unnecessary advertising is

taking place.

71

5.2 FINDINGS

1. When asked about the most important factor that contributed to their choice of

coffee café, an equal number (40%) of respondents selected the taste of coffee/

food and the ambience/ experience. Only 20% of them choose value for money as

their most important factor. Finding out how customers feel about the taste and

quality of products offered, could help both these organizations improve their

share, by adapting and improving their products.

2. The Coffee at Café Coffee Day seems to have a slight edge over Barista. This is

quite an important fact, considering Café Coffee Day uses its own brand of Coffee

beans, while Barista uses a combination of imported coffee beans and coffee

beans from TATA Coffee.

3. Though most customers visit café for coffee, other drinks like Granitas, Cremosas,

smoothies and ice teas are very popular. Cafés need to focus on providing the

right kind of drinks in the right taste and with a certain level of quality.

4. Café customers usually have a light snack or side order along with what they are

drinking. This provides an opportunity for cafés to offer these eatables at

marginally higher prices, and increase their revenue. Increase in revenue though,

would be useless if they offered substandard eatables, which can often be caused

by inefficiencies in storage and distribution, which leads to eatables becoming

stale. That’s why it is important for cafés to provide high quality food, which

allows them to charge a premium.

5. Café Coffee Day got a positive rating with respect to the variety of their eatables

(especially their Indian food), although the quality was often inconsistent. While,

respondents described Barista’s sandwiches as “tasteless” and “sometimes stale.

6. Overall, Café Coffee Day has done well to live up to its USP of being an

affordable brand.

7. Café Coffee Day’s delivery process involves a restaurant- like approach. When

the order is ready, and the customer has not collected it from the counter, a Café

Coffee Day attendant comes to the customers’ table and delivers the order. Café

Coffee Day received an excellent rating of 4.5/ 5 for this process. A lot of the

respondents praised Café Coffee Day for their delivery process.

72

8. A customer’s visit to a coffeehouse doesn’t end with his purchase of coffee. He

goes there for the service the organization provides, and this service is provided

directly by the staff. Café Coffee Day stayed at the above- average level.

9. One of the main characteristics of a service in intangibility. A major effect of

intangibility is that since the service cannot be seen or touched, it is very difficult

communicating its qualities or advantages to the customers. This also poses a

problem in creating a brand image for the organization. Café Coffee Day use their

physical evidence to promote and develop their brand. Also, considering that 40%

of the sample stated Ambience/ Experience as the deciding factor in their choice

of a coffeehouse, a lot of emphasis needs to be placed on this aspect.

10. Customers come to a café because they want to have a good time with friends or

family. Other forms of entertainment at cafés are very useful for enriching

customer experiences and increasing customer retention. Music, T.V., games;

books, etc are peripheral services that a café offers to its customers. These

services add to the overall ambience of the café. Café Coffee Day has taken steps

in the right direction as well, installing Q-Jam jukeboxes at every outlet. But

besides that, they have nothing really to speak of. This is why they only received

an average rating of 3/ 5. They should concentrate more in this area, because there

is plenty of scope for improvement.

73

CHAPTER – 6

RECOMMENDATIONS

74

Café Coffee Day has done extremely well so far to project itself as an affordable

youth- oriented brand. But there are still certain areas where their brand needs to

be much stronger.

With regard to the physical evidence associated with the brand, Café Coffee Day

needs to do a lot of work if they hope to catch up with Barista. My first

recommendation for Café Coffee Day is to clean up the décor at every outlet,

wherever unnecessary advertising is taking place.

Although it might be an important source of revenue, long-term customer

perception of the brand isn’t very positive.

Café Coffee Day would do better to provide promotional space for its partners

with the use of clever collaborations, and not printed advertisements and posters

everywhere.

My second recommendation is that Café Coffee Day looks at its current

recruitment, selection and most importantly, its current training policies.

Customers are not happy with the behavior and service of the staff, and Café

Coffee Day is lagging far behind Barista is this aspect.

75

CHAPTER – 7

ANNEXURES

76

QUESTNNAIRE

1. What do you normally prefer to drink as a sweet item?

Milk ---------------------------------------------

Chocolate Drink ------------------------------

Tea/ Coffee ------------------------------------

Others ------------------------------------------

2. Do you like cafe coffee, as compared to other forms of coffee?

Very much -----------------------------------------

Okay ------------------------------------------------

Not much ------------------------------------------

Not at all ------------------------------------------

Do not know/ Can not say ---------------------

3. How many times do you buy cafe coffee?

Once every day ----------------------------------------

2- 3 times a week -------------------------------------

Once a week ------------------------------------------

On special occasions only ---------------------------

Others --------------------------------------------------

4. What do drinking cafe coffee signify to you?

5. Where do you normally go for cafe coffee?

Cafe Coffee stalls ---------------------------------

Supermarkets and Malls--------------------------

Other places ---------------------------------------

6. Rate your preferences in choice of drinking chocolates on a scale of 1-5 (5

being highest rank)

Taste ------------------------------------------------

Sweetness ------------------------------------------

Price -------------------------------------------------

Calories ----------------------------------------------

Brand of the coffee---------------------------------

Packaging --------------------------------------------

Ingredients/ flavors ----------------------------------

7. Which brand of cafe coffee you prefer?

77

Nestle ----------------------------------------------

Barista ---------------------------------------------

Cafe Coffee Day ---------------------------------

other foreign brands -----------------------------

Any other ----------------------------------------

Do not know/ Can not say ---------------------

8. How do you feel regarding price of different brands of cafe coffee in

comparison with Cafe Coffee Day?

Barista-

High -----------------------------------------

Reasonable ---------------------------------

Do not know/ Can not say ----------------

Nestle -

High -------------------------------------------

Reasonable -----------------------------------

Do not know/ Can not say ------------------

Cafe Coffe Day -

High -------------------------------------------

Reasonable ------------------------------------

Do not know/ Can not say ------------------

9. How easily do you get different brands of cafe coffee in comparison with

Cafe Coffee?

Easily ------------------------------------------------

Not easily ------------------------------------------------

Rarely ----------------------------------------------------

Do not know/ Can not say ----------------------------

10. Do you agree that coffee at the Cafe Coffee Day taste better in comparison

to the coffee of other brands?

Strongly Agree ----------------------------------

Agree ---------------------------------------------

Strongly Disagree ------------------------------

Disagree ------------------------------------------

78

Do not know/ Can not say ---------------------

11. Do advertisements affect your choice for different brands of drinking coffee?

Yes ------------------------------------------------

No -------------------------------------------------

Do not know/ can not say ----------------------

12. Do you think that the present choices available in coffee are costly? If yes,

what will be your ideal price range?

Yes ----------------------------------------

No -----------------------------------------

Do not know/ Can not say -------------

13. Would you prefer to switch to drinking coffee of another brand if it is

cheaper than your preferred brand without any change in quality &

taste?

Yes ------------------------------------------

No -------------------------------------------

Do not know/ Can not say ---------------

79

Café Coffee Day Officials

1. Is global market an important part of your

organizations marketing efforts?

Yes No

2. How has your company entered the Indian Market?

Joint venture

Franchising

Own Subsidiary

Strategic Alliance

3. What factors do you think can create problems and hurdles in the future success

of the company in India? Please rank them on a scale of 1-5 (1- most

important -5 least important)

Religious fundamentalists and environmentalists

Pricing

Pressure to increase product variant/range

Ad spends to create top of mind recall

Local competitors

4. Do you have different product lines and operational strategies for the Indian

market?

Yes No

80

5. What kind of sales promotion strategies have you adopted for the Indian

market?

Localization

Globalization

Regional Adaptation

Product Standardization

6. What has been the impact on sales volumes and profits after the

Indianization?

Has it:

Increased ------------------------------

Decreased -----------------------------

Remained stagnant ------------------

7. Does your target audience wants your product or services offerings to be:

Completely Indianised -------------------------

Somewhat Indianised --------------------------

Not at all Indianised ---------------------------

Do not know/ Can not say --------------------

8. Is has your company placed itself well to cater to the opportunities in

India?

Yes -------------------------------------------

No --------------------------------------------

Do not know/ Can not say ---------------

81

CHAPTER-8

BIBLIOGRAPHY/REFERENCES

82

Books

Bungess, L.R. 1984. Wages and Salary Administration. Charles E. Merrie

Publishing co. Column ‘US’.

Arm strong, M. and Helen Muslis, 1980.Salary Administration, Lo gan page ltd.

London.

Suri, G.K. 1976. Productivity wages industrial relations. Affiliated East west

Press New Delhi.

Bhattacharya, Research Methodology, Publisher

Customer Service Manual (Airtel)

HR Manual, Policies & Procedures, BTVL

Books & magazine on mobile communication

Marketing Management by Philip Kotler

Research Methodology by C.R. Kothari

Aaker, David,” Building Strong Brands” ,The Free Press, Printed in the United

States Of America, Year 1996.

Aaker, David,” Strategic Brand Management” ,Prentice Hall, Printed in the United

States Of America, Year 1989.

Crainer,Stuart,” The Real Power Of Brands” ,PITMAN Publishing, Printed in

Great Britain, Year 1995.

MAGAZINES & JOURNALS

HR Executive Editorial Survey (2007), Workplace Turnover Study, Human Resource

Executive Magazine

Indian Management Magazine, Vol 44 Issue 1, Jan2008

INTERNET WEBSITES

www.cafecoffeeday.com - Search engines – Case Study

www.google.com- Search engines

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