Presented By: Arpan Garg (L-09) Pratik Panani (M-14) Ravinshu Srivastav (M-26) Yash Surana (M-27) Service Operations Management of
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Presented By: Arpan Garg (L-09)
Pratik Panani (M-14) Ravinshu Srivastav (M-26) Yash Surana (M-27)
Service Operations Management
of
Introduction • India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd • Pioneer of the cafe culture and the first to launch the coffee bar concept in India • Network strength: 1400+ cafes in 209 cities/towns across India and growing • Menu ranges from signature hot and cold coffees to several exotic international coffees, tea,
food, desserts and pastries and exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available at the cafes
• Average Footfalls: 200 per cafe per day
A place where : Students frequently visit most after ―home and workplace/college‖ Friends and colleagues meet in groups of 3 or more One rejuvenates and are free to be themselves rather than a place to be ―seen at.‖ The cafe is also the venue for business meetings (23% ), celebrating special occasions (20%) or
just plain ―Time Pass‖ (57%)
Type of service process : business to customer (B-2-C)
• Market Segment: Age group 16-30 years• General Strategy: “THIRD PLACE” away from the home or college
or workplace for the young and the young at heart.Positioning
• SQ&SW: SQ- Serving coffee and snacks, place to sit and free wifi SW- Low price, fun bar, close proximity
• Feasibility : Outlets present in every corner ( 1481 in 209 cities)• Perception: Affordable, Good taste & quality
Concept
• Investment : IPO, Banks, Personal • Quality & cost control : All time quality check, operation in-
charge, food in-charge• Expected results : Good taste and quality product offerings
Operating Strategy
• Differentiate: Right locations, 1481 outlets in 200 cities• Barriers to competitors: Strong and stable parentage
Service delivery system
No Elements Incremental Innovation Design Analyze Develop Implement
1. Menu Digital Menu Concept development, Idea generation, Screening
Business Analysis, Project Authorization
Process Design, Test Marketing
Full scale launch & post launch review
2. Advertising Ads in innovative way
Concept development, Idea generation, Testing
Business Analysis, Project Authorization
Marketing programme, Test marketing
Full scale launch & post launch review
3. Staff More Friendly Strategy Business Analysis, Project Authorization
Personnel Training, Process design
Full scale launch & post launch review
4. Format Express, Lounges, Studios
Concept development, Idea generation, New service objective
Business Analysis, Project Authorization
Service design, Testing, Test Marketing, Service pilot run
Full scale launch & post launch review
No Elements (Grouped)
Radical Innovation Design Analyze Develop Implement
1. T: • Digital
Menu• App ordering
• Payment cards
• Projector
More attractiveEase of ordering
Strategy,New
service objective, Testing, Concept develop
ment
Business Analysis, Project
Authorization
Process & system Design,
Test Marketing,
Service Pilot Run
Full scale launch & post launch review
Competitor analysis
Competitor AnalysisBrand Name Café Coffee Day Bru World Cafe Tata Starbucks
Variety Coffees, Quick bites, Smoothies, Tea, Ice cream
Customized Coffees, Teas, Traditional preparations, Frappes, Quick bites
Coffees, Frappuccino's, Chocolates, Customized Coffees, Quick Bites
Wait Time (Before Ordering)
5 mins 2-3 mins 8 min
Service Time 10-15 mins 10-15 mins 5-10 mins
Menu Language English English English
Picture Display Yes No No
Price Low(Cappuccino – INR 85 )
Medium(Cappuccino – INR 125 )
High(Cappuccino – INR 175 )
Service Encounter
Service Organisation
Service Organisation
Service Organisation
Café Coffee Day
Employees CustomersPerceived Control
Efficiency Vs Autonomy
Efficiency Vs Satisfaction
Service encounter
Ad posters at front glass
Customer guidance & handing over menu card by employee
Order placement & meal served at table
Customer enjoys the meal and asks for bill
Customer pays the bill and leaves.
Service location : Regression
Service capacity• Assumptions-:
- Capacity - 18- No. of customers/hr – 14- No. of working hrs – 13hrs (10am-11pm)
- No. of customers per day- 182 - Happy hours – 4hrs per day- Premium customers- 100(min)- Premium customer price – INR 400- Discounted customer price – INR 100
• 98% (400-100) = 294 (expected revenue) Discount: 100% (100)= 100 (expected revenue)
• 96% (400-100) = 288 (expected revenue) Discount: 100% (100)= 100 (expected revenue)
• 32% (400-100) = 96 Discount: 100% (100)= 100 (expected revenue)
• As 96<100 the protection level for premium stops at 133. And number of Discounted customer are 49
Globalization of Service Strategies:
- One country production base
- Multiple formats ( CCD express, Lounge,
- Company owned franchising Approach:
- Vertical integration
- Diversification Implementation and Operational Issues
- Stakeholder consideration
- Issues in planning
- Failure to control plan
- Failure to deliver commitments
- Poor Execution/ Poor business response to change
Recommendations/Summary• To improve the interiors and decor.
• To have more and more tie-ups.
• Only 50 % or less than 50 % people find Cafe Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Cafe Coffee Day need to do lot of homework in order to satisfy its customers.
Thank You
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