cafe day

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SERVICE MARKETING

PROJECTON

CAFÉ COFFEE DAY

By

Archana, Hardik, Sanjay, Tirthankar(SIESCOMS)

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CAFÉ COFFEE DAY – Table of Index

1. CCD Introduction 022. STPD (Segmentation, Targeting, Positioning, Differentiation) 07

3. Perception Mapping 10

4. SWOT Analysis 11

5. Competitors Analysis 12

6. PESTEL (Political, Economic, Social, Technological,

Legal, Environmental) 14

7. 7 PCs P’s Service Marketing 15

8. Strategies (Distribution, Positioning and Focus 43

9. Porters Five Forces 45

10. SPANCO (Tangible / Intangible) 46

11. Recommendations 4712. Partners 48

13. Conclusion 49

14. Q&A 50

15. References 51

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CAFÉ COFFEE DAY - Introduction

Founded in 1996 India's largest coffee conglomerate, Amalgamated Bean Coffee Trading

Company Ltd

Strives to provide the best experience to their guests

Pioneer of the café culture and the first to launch the ‗coffee bar‘ concept in

India Network strength: 1450+ cafés in 172 cities/towns across India and growing

First to roll out the ‗coffee bar‘ concept in India with its first café in Bangalore.

Outlets set up are based on the three formats -- cafe, lounge and square.

Menu ranges from signature hot and cold coffees to several exotic

international coffees, tea, food, desserts and pastries and excitingmerchandise such as coffee powders, cookies, mugs, coffee filters, etc. isavailable at the cafés

CCD is present in every nook and corner of the country which includes Vienna, Austria and Karachi and plans to open across Middle East, Eastern Europe,Eurasia, Egypt and South East Asia in the near future

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CAFÉ COFFEE DAY – Introduction Continue…

In 2010, they clubbed all his businesses (except agriculture) under CoffeeDay Resorts Holdings.

Existing investors include global PE firms KKR and Co. LP, New Silk RoutePartners LLC and Standard Chartered Private Equity have 25% stake

Darby Overseas Investments Ltd —the private equity arm of Franklin

Templeton Investments, International Finance Corporation and DeutscheBank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd

CCD’s SBU

– Coffee Day Fresh 'n' Ground

– Coffee Day Xpress

– Coffee Day Take away – Coffee Day Exports

– Coffee Day Perfect

– (FMCG Packaged Coffee) division

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WHY CAFÉ COFFEE DAY

Average Footfalls: 300 per café per day Average dwell time at café: 45 minutes

Meeting place for 15-45 year olds

A place where :

Students frequently visit most after ―home and workplace/college‖

Friends and colleagues meet n groups of 3 or more

One rejuvenates and are free to be themselves rather than a place to

be ―seen at‖

The café is also the venue for business meetings (23% ), celebrating special

occasions (20%) or just plain ―Time Pass‖ (57%).

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Key Target Audience

Major chunk of CCD customers falls within theage group of 20 to 30 which accounts for57% of the overall percentage.

The group comprises of mainly college goingstudents and young working professionals

27%

66%

7%

Professionals

Students

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Middle class and upper middle classyouth

Students, House wives, executives andyoungsters

People who value a great cup of coffee

CCD seeks to target not just the youth

but anyone who is ―young at heart‖.

1481 outlets in 200 cities Strong and Stable Parentage

Right Locations

Place a cafe in every possible locationwhere some business can be generated.

To be present in educational institutionsand corporate campuses

―Third Place" away from the homeand college or workplace for theyoung and the young at heart.

Coffee Bar

Fun Place

Home and Workplace

Medium Price Brand

Café Coffee Day has its main consumer

base in the age group of 16-30 years.

TARGETING

POSITIONING DIFFERENTIATION

SEGMENTATION

S-T-P-D

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POSITIONING STRATEGY

POSITIONING OF DIFFERENT OUTLET

Café CoffeeDay

• Coffee lovers

• Youth• A place for

Hang out

The Lounge

• Premium

Cafe

The Square

• Exclusive for

Coffee lover

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– Changing the logo to a ‗Dialogue Box‘ - with the words Café CoffeeDay, symbolizes a perfect place to ‗relax and dialogue‘

– Tagline : a lot does happen over coffee!!

New Logo

REPOSITIONING CCD

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Perception Mapping

Quality of service (High Involvement)

Quality of service (Low Involvement)

High Price Low Price

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SWOT Analysis

SWOT

OPPORTUNITY

Fastest growing industries in Asia. Preferred for informal meetings. Gone international

STRENGTHS

Largest retail chain of cafes ISO 9002 certified company Quality and taste Youth oriented brand Reduction in cost (Own Production) USP of brand - Highly affordable brand

WEAKNESS

Weak brand image and lacksstrength to maintain brand loyalty

Poor ambience and decor. (Primespace - advertising andpromotions)

Wrong site selection – Losses

THREAT

Competition with established andInternational other coffee cafes likeBarista, Starbucks, Costa Coffee,Coffee Mochas, Gloria Jeans, CoffeeBean & Tea Leaf and Illy Café.

Hukka Parlours.

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Competitor Analysis

CCD

54%

Barista

26%

costa

coffee

14%

others

6%Market Share

CCD

68%

Starbucks

12%

Gloria

Jeans3% Barista

17%

Share of mind

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Competitors

Direct Competitors:

Barista

Cafe Mocha

Costa Coffee

Beyond Coffee

Gloria Jeans

Minerva Coffee Shop

Indirect Competitors:

McDonald

Haldirams

Global Competitors:

Star Bucks

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Easy sourcing of coffee beans

Cost control because of Govt regulations

Political

Economic

Social

Technological

Legal

Heavy coffee drinks in South India

Cheaper sourcing maintain quality

Targets youth and middle class

Affordable for a meeting place

Wifi facility at every outlets and music

Digital Marketing for promotions

Environmental

PESTAL

Use Bio degradable products

Ethical and based on customer delight

Less consumer complaints and quick

customer service

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7 P’s of SERVICE MARKETING

PRODUCT PRICE PLACE PROMOTION

PHYSICAL

EVIDE PEOPLE PROCESS

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SERVICE PRODUCT

Core Product

Experience

Supplementary services

Wide range

Merchandising

Ambience

Delivery Hospitality (Lounge & Square)

Price of the product

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SERVICE FLOWER

Facilitating Services

Information- Menu- Website

Payment- Credit Card- Cash- Privilege Card

Billing - at the counter

Order Taking- Assisted by the

attendee

Information Payment

Billing Order –taking

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SERVICE FLOWER

Enhancing Services Consultation

- Assistance

Hospitality

- Food & Beverage

- Music

- Wi-Fi

- Washrooms

Safekeeping

- Credit Card Security- Parking

Expectations

- Happy Hours

- Privilege CardsSafekeeping

HospitalityExpectations

Consultation

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PRODUCT PORTFOLIO

Food and Beverage Non Food Items B2B

Food Beverage

Deserts Coffee

Coffee Powder Bulk/ Corporate

Orders

Snacks Tea

Coffee Machine Catering

Services

Cakes Chocolate Shakes

Cups & Mugs Coffee Vending

Machines

Sundaes FrappeChocolate and

cookiesAdvertising

Space

Heavy Foods

(in Lounges)

Fruit Shakes &

Lemonades

Apparel &

Accessories

Gift Cards &

Vouchers

Product Mix Width

ProductLine Length

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SERVICE MARKETING MIX OFCAFÉ COFFEE DAY


PHYSICAL


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PRICING STRATEGY

PSYCHOLOGY PRICING

– Pricing the product as Rs 69, 79, 59 etc. rather

than in the multiples of ten to give a feel that

the product less priced

LOCATION PRICING: On the basis of outlets, prices

have been positioned

• Café

• Lounge

• Square

COMBO PRICING

– Clubbing up two or more products on special

occasions

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PRICING STRATEGY

PREMIUMS PRICING

– Adding things like cream, chocolate sauce

and positioning as a premium coffees

VALUE BASED PRICING

– Providing different variants in terms of

prices by altering the quantity to give a

sense of affordability

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PHYSICAL


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Strategically located outlets

Kiosks in offices

Coffee machines in college canteens

Types of Stores

Café Coffee Day The Lounge The Square

PLACE

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Café Coffee Day StoreCoffee parlors where people can

enjoy the coffee have eatables andhangout with friends

Café Coffee Day SquareA unique Café where variety of single

origin coffee brews from coffee-

growing countries are available

Café Coffee Day LoungePremium café from Café coffee

day target selected group

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PHYSICAL


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Started TVC and Print campaign at the end of 2012

Co Branding in Movie and TV serials

Sales Promotion Activities

– Combo Deal

– Happy Hours

– Privilege cards

– Redeemable coupons

Through Interactive Media

Held Contest around a Very Popular Programme

Tie up lot of youth brands

PROMOTION

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WITH THE FOOD: SIDE MENU CARD

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Contests have been activated through leaflets/contest formsgiven out with the menu-card /bill folders

Drop boxes, which also add to prominent visibility, are used to

collect all entries to the contest

CONTESTS @ CAFES

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ON THE WALL

The most imposing branding option within a cafe for visual communicationwith minimal amount of text

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Tent Cards are the chosen element in the cafessince they are all about “I am here, you cant

miss me”

ON THE TABLE: STICKERS & TENT CARDS

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EDITORIAL COVERAGE

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SERVICE MARKETING MIX OF CAFÉCOFFEE DAY


PHYSICAL

EVIDENCEPEOPLE PROCESS

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PHYSICAL EVIDENCE

Ambience

– Different ambience the look and feel

for different outlets

Shop Colour

– Violet for Café coffee day shops

– Sea green for Lounge

– Brown for Square

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PHYSICAL


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PEOPLE

Dressed in a particular uniform

Soft spoken, friendly behaviour

Customer Engagement Activities

– Special Offers on Occasions

(Birthday, Valentine day, Friendship day

etc.)

– Online Contests – Happy Hours

SERVICE MARKETING MIX OF CAFÉ

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PHYSICAL

EVIDE

PEOPLE PROCESS

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PROCESS

People Processing Services

Minimum Response Time

Complaints and feedback

Assisted by the attendee or the brew master in Lounge and Square

Self Service Counter for Café Coffee Day outlets in Offices / few Malls.

Ordering and delivery earlier was self service and now most of the

coffee shops have waiters to take order and deliver at the table

BLUEPRINT FOR SERVICE

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BLUEPRINT FOR SERVICEDELIVERY

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Delivers

the order

Data entry

S U P P O R T P R O C E S S

C O N T A C T P E R S O N

( B a c k S

t a g e )

( O n S t a g e )

C U S T O M E R

P H Y S I C

A L

E V I D E N C E

Prepares

Food / Drinks

Informs about theorder placed

Customer

Arrives at

CCD

Customer

walks -in

Line of interaction

Line of visibility

Line of internal interaction

CCD

exteriors

Views

Menu card

Goes to the

table

FurnitureCCD interiorsAmbience

Interior design

CCD boy/girlMenu

Places

order

Sits

Chats

Waits

Makes the

payment

Leaves

Requests

for bill

Greeted by

CCD boy/girl

Takes order

Order

received

Eats

Receives Food/Drink

Accepts

request

Hands over

the bill to

the customer

Bill

generated

Billing system

Processes bill

Delivery

Tray

Food & drinks

Exit way

CCD exteriorsCCD boy/girl

PROCESS AT CCD

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CHARACTERISTICS OF SERVICES

Intangibility – Experience

– Taste of Coffee

Inseparability – Service provided

Perishability

– Availability of tables

Heterogeneity

– Ambience of different outlets

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Easy accessibility There is a Cafe Coffee Day outlet in every major city in India and are

easily accessible.

Rural area locations

Customers in the smaller communities also enjoy good qualitycoffee and snacks at affordable costs because the Cafe has set up

outlets in the rural areas in India.

Distributors

The coffee produced on the Cafe’s farms, are distributed through

wholesalers and retailers to customers who wish to use the coffee

at home.

DISTRIBUTION CHANNEL STRATEGY

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FOCUS STRATEGY ANALYSIS

Service focused

Café Coffee Day Premium

Cafes (Lounges)

UnfocusedCCD cafe outlets

Fully focused

Café Coffee Day Square –

an exclusive coffee bar

Market focused

CCD Xpress (Kiosk)

WideNarrow

Many

Few

Service Offerings

N o .

o f M a r k e t S e r v e d

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Porters Five Forces

IndustryRivalry

(HIGH)

Threat ofnew entrants

(LOW)

Threat ofSubstitutes

(HIGH)

Supplier'sPower

(LOW)

Buyer‘sPower(HIGH)

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SPANCO - Tangible / Intangible (CCD)

S - Suspect / Security – All Customer who wants to eat snacks Or have a peaceful

Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy foodand drinks.

P - Prospect / Profit – All college /school going Students, Kitty goings groups and

business customers. Same price as other notable brand Better taste and crispness

Value for Money

A - Approach / Analysis -Analysis Research and customer focused studies on what

Indian customers looking for hot and cold drinks in peaceful good environment.

Wished to taste new & innovative products Unique freshness flavour

N - Negotiation / Number Strategy - Change the product Unique Selling

Proposition Offer reasonably good prices quality product and services. Coffee /

tea variants High price & high volume Other Varieties (cold drinks and snacks) Low

price & high volume

C - Closing / Core need – Offer good services and quality product. Clear cut

differentiated product Existing network of distribution

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Recommendations

1. To improve the interiors and décor.

2. To have more and more tie-ups.

3. Only 50 % or less than 50 % people find Café Coffee Dayquality of service, ambience, pricing and location to be verygood which proves that still Café Coffee Day need to do lot ofhomework in order to satisfy its customers.

4. It should introduce a feedback form system in order to knowabout the customers satisfaction level.

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PARTNERS

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Conclusion

1. C.C.D. is the fastest growing Café in the country.

2. The major competitor undoubtedly Barista.

3. That Café Coffee day is planning to go international.

4. The other major things regarding service marketing is that customers give

top priority to the quality of the services / products and ambience.

5. It is providing tough competition to its competitors by satisfying its

customers with great café experience.

6. ― A lot can happen over coffee ‖ message has touched the hearts of

youngsters who are the largest consumers of C.C.D.

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ANY QUESTIONS

?

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References

Personal experiences

http://www.casestudyinc.com/coffee-day-brand-strategy-india

http://www.pr-inside.com/india-food-and-drink-report-q-

r2164244.htm

http://en.wikipedia.org/wiki/Marketing

http://www.cafecoffeeday.com/

http://www.barista.co.in/users/index.aspx

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