Cafe Coffee Day Jugal

PROJECT REPORTON

CAFÉ COFFEE DAY

ADITI GUPTA (71)KISHAN GUPTA (72)

VINITA HEMDEV (73)MANOJ JAIN (74)JUGAL JOSHI (75)

Acknowledgement

ContentsCorporate ProfileMissionDivisions Key features MenuOnline SalesCompetitors 7Ps of MarketingMarketing strategyDistribution Strategy

H.R. activitiesCost sheetAnalysis of the cost sheetSWOT analysisSome interesting factsRecognitions & RewardsConclusion

Corporate Profile• Café Coffee Day (C.C.D.) is India’s 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 Events YEAR EVENTS

Since 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 C.C.D. was first set-up at Brigade Road in Bangalore

2000 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.

YEAR EVENTS

2002 C.C.D. owns & operates 213 cafes in all major cities of India

2008 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

2010 Earning revenue of US$45 million, jobs 5000 employees, owns 999 cafes in 135 cities

Mission

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

Divisions of Coffee Day• Coffee Day - Fresh & Ground• Café Coffee Day• Coffee Day – Vending• Coffee Day - Xpress• Coffee Day – Exports• Coffee Day – Perfect• Café Coffee Day is the part of India’s largest coffee

conglomerate named Coffee Day, Rs.200 crore ISO 9002 certified company.

Key Features of C.C.D.

• Pioneers of the Café Concept in India with the its first Café at Brigade Road, Bangalore in 1996. This Café was opened as a Cyber Café (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency…. Coffee.

• Essentially a youth oriented brand with majority of its customers �falling in the 15-29 year age bracket.

• Each café, depending upon its size attracts between 400 and 800 �customers daily.

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

• � USP of the Brand:• Affordable Price.• Coffee – Winner of Platinum, Gold, Silver and Bronze medals at

the India Barista Championship 2002.

Menu

Small Eats

Chicken Hot Dog

Choco Brownie

Choco Doughnut

Cookies

Mocha Muffin

Veg Samosa

Big EatsChicken Burger

Chicken SaladSandwich

Garden SaladSandwich

Spinach CornSandwich

Veg Burger

Zingy PizzaSandwich

Zingy PizzaSandwich

Sweet eats

Carrot Nut Cake

Choco Black Forest

Chocolate Fantasy

Mystery Mousse

Sizzle Dazzle Brownie

Sundae

Choc Hola

Chocolate Ice Cream

Cookie Medley

Dark-Passion

Fruity Bliss

Mocha Choco Delight

Vanilla Ice Cream

HOT COFFEE

HOT TEA

COLD COFFEE

FROST TEACHOCO-LATTES

FRUITEAZERS

Online SalesOnline Sales by C.C.D. is also one of the revenue-

earning 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• Café Nescafe Global Competitors:• Star Bucks

7P’s of Marketing Product:• 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.

Place:

• 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 café 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.

• 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. C.C.D. would like to own the word “café” in the minds of its customers.

Old Logo New Logo

Advertising Strategy

C.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.• Café 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)

New Delhi (Head Distributor, North India)

Local Warehouse Local Warehouse

Outlet Outlet Outlet Outlet OutletOutlet

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 Sheet Particulars Amount Amount

Opening Stock of Raw Material Nil

Add: Purchase of Raw materials 2,80,000Add: Purchase Expenses 12,300Less: Closing stock of Raw Materials 34,000Raw Materials Consumed 2,58,300Direct Wages (Labour) 80,000Work Manager's Salary 30,000Direct Charges NilPrime cost (1) 3,68,300Add: Over Heads 5,000 Employee welfare 5,000Repairs 20,000Indirect Wages Supervisor Salary

9,500

Drawing Office Salary NilLicense Renewal 10,000Factory Asset Depreciation NilWater Charges 8,000 49500Works cost (2) 4,17,800Add:- Administration Over Heads:- Office Rent 1,03,000Asset Depreciation 3,000WiFi 3,495Insurance 950Other Office Expenses 500Cost of Service (3) 5,28,745Add: Opening stock of Finished Goods *** Less: Closing stock of Finished Goods ***Cost of Goods Sold ***Add:- Selling and Distribution OH:- 2,500 Cost of Sales (5) 5,31,245Profit (balancing figure) 268,755Sales 800,000

Analysis of Cost Sheet• Assuming no opening stock at the starting of the Month as

it deals with perishable products.• Raw Material cost account for 35% of the Sales is obtained

as fact.• Closing stock at end of the month is Rs 34,000.• Prime cost at the end of the month lies Rs 3,68,300.• Total Overhead cost will come out to be Rs 49,500.• Total Work Cost at the end of the month is Rs. 4,17,800. • Administration Overhead at the end of the month including

(Office rent, Asset depreciation , Wi-Fi, Insurance & Other Expenses) will come out to be Rs 1,10,945.

• Total cost of Service at the end of the month will be Rs. 5,28,745.

• Selling & Distribution cost for the entire month is calculated to be Rs 2,500.

• Total Cost of Sales at the end of the month will be Rs 5,31,245.

• Total Sales for the entire month will come out to be Rs 8,00,000.

• At the end of the month, net profit was calculated to be Rs 2,68,755.

SWOT AnalysisStrengths

•Products of extremely good quality and taste.•Its a youth oriented brand.•It produces/grows the coffee it serves hence reducing the cost.•USP of brand is its considered a highly affordable brand. 

Weaknesses•Lacks strength to maintain brand loyalty.•Poor ambience and decor. CCD outlet served prime space for advertising and promotions.•Many of the CCD stores are incurring loses due to wrong site selection.

Opportunities•Coffee cafe industry is one of the fastest growing industry in Asia.•More people like to visit CCD for informal meetings .•Gaining international recognition. 

Threats•Competition with other coffee cafes like Barista, Mochas, Qwicky.

Some Interesting Facts• All-Day Refresher, most selling product of C.C.D. whose

selling cost is Rs. 100 has a prime cost of just Rs. 20 & rest all is profit to C.C.D.

• C.C.D. does not use sugar as raw material in any of its preparations but uses milk cream & Sugar Free as raw material.

• Ice-creams & other eatables are out-sourced from Amul & local vendors of reputed brands.

• It is unique in its distribution way where coffee beans are cultivated in its farms at Chikmagalur.

Recognition & Rewards C.C.D. won 8 of 10 awards at India Barista Championship 2009.

The awards are:

1. Platinum Award.

2. Best Espresso.

3. Best Cappuccino – Felix Daniel Mathew, Manager Food & Beverages, C.C.D., Bengaluru.

4. Most Promising Talent – Adwiti Tarkire (C.C.D., Trainer).

5. Silver Award – Sam Rozario (Asst. Manager, Level 1, C.C.D., Chennai).

6. Bronze Award.

7. Best Signature Beverage.

8. Best Barista Technique – Naveen Kumar CA(Trainee Area Manager). Bags the ‘Best Coffee Bar’ title for the 3rd consecutive year. Top honours at Coca Cola Golden Spoon Awards 2010.

Conclusion

• C.C.D. is the fastest growing Café in the country.• It is providing tough competition to its competitors

by satisfying its customers with great café experience.

• “A lot can happen over coffee” message has touched the hearts of youngsters who are the largest consumers of C.C.D.