Nov 22, 2014
PROJECT REPORT ON CAF COFFEE DAY
ADITI GUPTA (71) KISHAN GUPTA (72) VINITA HEMDEV (73) MANOJ JAIN (74) JUGAL JOSHI (75)
ContentsCorporate Profile Mission Divisions Key features Menu Online Sales Competitors 7Ps of Marketing Marketing strategy Distribution Strategy
H.R. activities Cost sheet Analysis of the cost sheet SWOT analysis Some interesting facts Recognitions & Rewards Conclusion
Corporate Profile Caf Coffee Day (C.C.D.) is Indias largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company Limited (ABCTCL). Popularly known as Coffee Day was formed. Its origin lies in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans. V.G.Siddhartha Hegde Founder & Chairman of Amalgamated Bean Coffee Trading Co. His family owns 10,000 acres of coffee plantation farms in Karnataka. Venu Madhav Head of Operations at C.C.D.
Important EventsYEAR EVENTSSince 1875 Rich coffee growing tradition started Early 1990s Opportunity arose with the deregulation of the coffee board in Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan 1996 2000 C.C.D. was first set-up at Brigade Road in Bangalore Exported more than 27000 tonnes of coffee valued at US$ 60 m to countries like U.S.A., Europe & Japan and, for the second time in its short career of 7 years retained the position as the largest coffee exporter of India.
EVENTSC.C.D. owns & operates 213 cafes in all major cities of India C.C.D. expanded to 595 cafes in 100 cities of India, 3 in Vienna, 2 in Karachi & targets to expand till 950 cafes in a year from 2008 Earning revenue of US$45 million, jobs 5000 employees, owns 999 cafes in 135 cities
To be the best Caf chain by offering a world class coffee experience at affordable prices.
Divisions of Coffee Day Coffee Day - Fresh & Ground Caf Coffee Day Coffee Day Vending Coffee Day - Xpress Coffee Day Exports Coffee Day Perfect Caf Coffee Day is the part of Indias largest coffee conglomerate named Coffee Day, Rs.200 crore ISO 9002 certified company.
Key Features of C.C.D. Pioneers of the Caf Concept in India with the its first Caf at Brigade Road, Bangalore in 1996. This Caf was opened as a Cyber Caf (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency. Coffee. Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket. Each caf, 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 2002.
Small EatsVeg Samosa
Big EatsChicken Burger
Chicken Salad Sandwich Chicken Hot Dog Garden Salad Sandwich Choco Brownie Spinach Corn Sandwich Choco Doughnut Veg Burger Cookies Zingy Pizza Sandwich Mocha Muffin Zingy Pizza Sandwich
Sweet eatsCarrot Nut Cake
Choco Black Forest
Chocolate Ice Cream
Sizzle Dazzle Brownie
Mocha Choco Delight
Vanilla Ice Cream
Online SalesOnline Sales by C.C.D. is also one of the revenueearning sources. Products are displayed on its website www.cafecoffeeday.com . Customers may pay through VISA or Master Card or PayPal. Following are the products that are displayed on its website:Coffee Powder: Arabicaah Coffee powder---Rs.170 Charge Coffee Powder---Rs.130 Dark Forest Coffee Powder---Rs.150 Perfect Coffee Powder---Rs.150
Snacks: Potato Stix - Masala---Rs. 200 Mints (Pack of 50)---Rs. 100 Go Bar Caramel (Pack of 5)---Rs. 100 Chocolates & Cookies: Dark Fantasy Chocolates (48gm)---Rs. 125 Double Choco Chip Cookies (150gm)---Rs. 110 Honey & Oat Meal Cookies(150gm)---Rs.110 Others: C.C.D. Gift Voucher---Rs.1000 C.C.D. Aura Candles---Rs. 150 Happy Mugs (Multicolour)---Rs.125 French Press Coffee Maker (Black)---Rs. 275
Competitors Direct Competitors: Barista Cafe Mocha Costa Coffee The Coffee Bean & Tea Leaf Qwicky Baskin Robbins Juice Cafe Indirect Competitors: McDonald Haldiram Caf Nescafe Global Competitors: Star Bucks
7Ps of MarketingProduct: C.C.D. 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 favour it. In winter it is cappuccino. Their merchandising includes funky stuff like t-shirts, caps etc. Price: Considering that C.C.D. knows its major customer lies in the age 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 C.C.D. The changes have been more due to the government taxes than any thing else.
C.C.D. looks to cater to their target market with strategically located outlets. Their outlets are generally located in High Street/ Family Entertainment Centres. Considering their generic appeal, there are Barista outlets located in and around Malls, Cinemas, Colleges, Offices, etc. This endorses their brand image of a caf that appeals to coffee lovers of all ages. Promotion: C.C.D. does not believe in mass media promotions. But they are involved in all the areas of serious consumer passion. Process: The order process at C.C.D. 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.
People: People at C.C.D. believe that People are hired for what they know but fired for how they behave. Motivation and personal skill are laid emphasis upon. Physical Evidence: Logo, Colours, Images: C.C.D. has used bright red and green colours 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. Caf is noticeably larger than the rest of the text inside the logo box. This denotes that Caf Coffee Day pioneered the caf concept in India way back in 1996. C.C.D. would like to own the word caf in the minds of its customers.
Advertising StrategyC.C.D. does not look at mass media as a viable area of advertising. It is done through following ways: Below-the-line activities as done by Levi, Liril soap (HUL), TVS Scooty, Channel V Get Gorgeous contest. In-Film advertisement as in Telgu & Tamil films; Bollywood movies(Bas Yu Hi, Khakee,Main Hoon Na, Kyun Ho Gaya Na, Mujhse Shaadi Karogi); Silver Screen (Kahani Ghar Ghar Kii). Merchandising. Caf Beat- an in-house magazine. Tie-up with World Space & Microsense to provide satellite connectivity. C.C.D.s guide to Active Holidays.
Distribution Strategy Each outlet of C.C.D procures raw materials from near-by places but coffee beans reach the outlets from Chikmagalur via head distributor & local warehouse. Each outlet serves 400 -800 customers daily depending upon its size & location. This may be shown as: Chikmagalur
Bangalore (Head Distributor, South India) Local Warehouse Outlet Outlet Outlet
New Delhi (Head Distributor, North India) Local Warehouse Outlet Outlet
H.R. Activities With the boost in the number of their retail outlets, C.C.D. had to concentrate on the quality and quantity of their human resource in order to meet up with the set standards. They make sure that the employees all across the country are well trained and provide consistent services at every outlet. Recruitment & Selection: Selection procedure for senior managers is long-drawn and rigorous but on the other hand for shop floor workers it is simple and short. People at C.C.D. believe that People are hired for what they know but fired for how they behave. Motivation and personal skill are laid emphasis upon.
Cost SheetParticulars Opening Stock of Raw Material Amount Nil Amount Add: Purchase of Raw materials Add: Purchase Expenses Less: Closing stock of Raw Materials Raw Materials Consumed Direct Wages (Labour) Work Manager's Salary Direct Charges Prime cost (1) Add: Over Heads Employee welfare Repairs Indirect Wages Drawing Office Salary License Renewal Factory Asset Depreciation Water Charges Works cost (2) Add:- Administration Over Heads:Office Rent Asset Depreciation WiFi Insurance Other Office Expenses Cost of Service (3) Add: Opening stock of Finished Goods Less: Closing stock of Finished Goods Cost of Goods Sold Add:- Selling and Distribution OH:Cost of Sales (5) Profit (balancing figure) Sales 2,80,000 12,300 34,000 2,58,300 80,000 30,000 Nil 3,68,300 5,000 5,000 20,000 9,500 Nil 10,000 Nil 8,000
1,03,000 3,000 3,495 950 500 5,28,745 *** *** *** 2,500 5,31,245 268,755 800,000
Analysis of Cost Sheet Assuming no open