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CHAPTER I
IntroductioIntroductionn
A Lot Can Happen Over Coffee
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INTRODUCTION
In present era coffee is considered as one of the most important
beverage in the world. Coffee is a drink which stands at rank one in the world
and coffee is the highest consumed beverage throughout the world. In India
Southern part consume more coffee than North. Older generation of Indians
are familiar with the coffee Boards own Indian coffee House chain, but
these have turned too decrepit to serve the purpose any more. Branded coffee
retailing in India has picked up. Coffee has moved to be a social drink.
Coffee retailing is an example of a change in the consumer lifestyle. The keyplayers presently are Barista, Coffee Day, Bru, and Nescafe etc The fast
food retailers who have long offered milk shakes and ice creams have also
started offering coffee.
The organized retail business in the country is witnessing a boom and
studies by McKinsey and Fitch point out that it is set to grow exponentially in
the coming years. Market liberalization, a growing middle-class, and
increasingly assertive consumers are sowing the seeds for a retail
transformation that will bring more Indian and multinational players on the
scene.
Coffee retailing is a more recent phenomenon which started in the mid-
90s; it has caught consumers fancy in the past 3-4 years. As a result several
players, such as Coffee Day, Barista, Qwiky's, Caf Nescafe, and Java Green
have entered the market, and are in the process of consolidating their
presence.
A coffee shop is a public place where people can free their minds,
exchange ideas, catch the latest music video on a TV screen, play scrabble
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,browse through magazines, sift through greeting card, listen to cool music
and pick up attitude - laden merchandise like Caps ,T-shirts, etc and of course
consume some coffee or snacks. Teenagers typically seem to visit coffee
houses during the day, working yuppies during afternoon and friends and
family groups during the evening. Coffee shops are becoming hangouts for
collegians wanting to display their wit and yuppies wanting to do some
business brainstorming. Most of us have read Dot COM stories where trade
took place over the cups of coffee at cafes in Silicon Valley. There are people
who believe that creative juices flow only once the tie around the neck isloosened. There may not be many places where we can go and easily relax. If
we want to meet somebody, and to have some snacks and beverages, we go to
coffee shops. Older generation of Indians are familiar with the coffee Boards
own Indian coffee House chain, but these have turned too decrepit to serve
the purpose any more. Branded coffee retailing in India has picked up. Coffee
has moved to be a social drink. Coffee retailing is an example of a change in
the consumer lifestyle. The key players presently are Barista, Coffee Day,
Bru, and Nescafe etc The fast food retailers who have long offered milk
shakes and ice creams have also started offering coffee.
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CHAPTER II
Review ofReview of
LiteratureLiterature
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Review of literature
The organized retail business in the country is witnessing a boom and
studies by McKinsey and Fitch point out that it is set to grow exponentially in
the coming years. Market liberalization, a growing middle-class, and also the
potential consumers had created a golden opportunity for the multinational
companies to enter in the coffee retailing business. Not only in India but also
in world the demand for coffee are promising. In the recent years the chain
food store as well as Coffee cafes and vending coffee are mushrooming in
India.Most of these chain food stores and cafs had succeeded in creating a
strong relation ship among the people like coffee day, Barista Caf, Sweet
Chariot etc. KSA Technopak estimates that size of the organized coffee
retailing in India covers Rs 250 crores industries. The Industry is currently
growing at the rate of 10-12 per cent annually. Moreover with the fast food
industry in India experiencing an impressive growth rate of 40 per cent, coffee
consumption is poised to grow further. Coffee retailing in India started with
the launch of Caf Coffee Day in 1996 and Coffee Day Xpress in 1999
.
Till the end of the decade, the performance of the retail outlets was just
about average with 14 outlets in 5 cities. Today with a rise in the coffee
culture the company has more than 800 outlets across the country and
targeting 1500 outlets by the financial year end. Prior to mass scale organized
coffee retailing in India, the beverage was popular only in the Southern part of
the country. The rest of the country was primarily a tea-dominated terrain and
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this fact still remains unchanged. But what has changed over the years is the
target market.
The target segment youth and young at heart were looking for a place,
where they could sit, relax, talk and enjoy a quiet moment with friends and
family. In the conventional Indian market, such places can only be found in
the form of local tea stalls, and college and office canteens. This dearth of
decent hang out places is what the coffee retailers cashed upon. These caf
chains in India have been positioned as destinations, offering both lifestyle
and coffee, at affordable prices.The expansion model initially concentrated in the metros. Coffee
retailers first experimented with their ideas in the larger cities and then
expanded to regional centers. For instance, in Delhi and Mumbai, Barista and
Coffee Day are now established brands. Thus, it can be said that, the metros
are in the stage II of coffee retailing, whereas in the smaller towns are still in
the initial stages.
The stage II in the metros is of consolidation and maturity. It all started
with offering good coffee at a place, which is both attractive and comfortable.
Now that most retailers are in the second stage, their aim is to strive to
develop it into a theme restaurant and offer more than a coffee and ambience.
The salient feature of the second phase in coffee retailing is the emergence of
newer formats.
Coffee Consumption In India - Potential Opportunity for Growth
Market research studies point out that the following areas have potential for
growth;
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Filter coffee in the north; when compare the large towns, the north and west
zones have a clear increase in penetration of filter coffee. This increase the
consumption of the beverages in a nontraditional coffee region such as north
can be partly attributed to a growing caf culture. This is a good trend, as
coffee marketer to look and can extending their brand beyond coffee in the
low penetration zones and the base of the coffee consumers.
Cold coffee in the north; the north has an increased consumption ofthe cold
coffee in summer, showing 60% consuming cold coffee at least once a week
in summer.Occasional consumers; There is more potential in the north and south, where
occasional consumers are high in the number (28%&40%respectively). There
is also potential to increase the no of cups consumed by light drinkers, who
account for 15% of the population.
Rural area in south; The rural area in the south shows a good potential for
coffee consumption. Currently coffee penetration is at 70% and yesterdays
consumption at rural south India. This can be improved to match the
penetration of tea, at 87% and yesterdays consumption at 75%. Marketers can
consider increasing the consumption of instant coffee in the states. In the rural
south states like Andhra Pradesh and kerala that have a current low
consumption of filter coffee can be targeted for increasing consumption.
Coffee production and consumption are polarized. This is evident from the
fact that producing countries consume hardly about 27% of production while
the rest is consumed by the developed consuming countries. Coffee is
predominantly an export-oriented commodity for majority of the coffee
producing countries. As such domestic consumption in producing countries
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has always taken a back seat. The all time low green coffee prices in the past
few years due to huge annual surpluses did not translate into lower retail
prices or much of promotional efforts to increase the consumption of coffee
worldwide. This could be gauged from almost stagnant annual consumption
growth of just about 2% in the last one decade.
The global demand in coffee and trend in coffee consumption is a more
focused area in India to go further. Coffee is accepted as a social drink in
every where so India has to misuse the trend to handle coffee retailing.
Global Coffee Demand
Global coffee consumption in 2008 is estimated to reach 121.5 million
bags, up from 111.7 million bags in 2007. The consumption in coffee
importing countries is estimated at 90.2 million bags in the calendar year
2008. A major proportion is consumed in E.U (44%), U.S.A (25%) and Japan
(9%). The average per capita consumption in importing countries was 4.33 kg
in 2007-08. Consumption growth in importing countries in recent years has
also been disappointingly slow-considerably slower than might have been
expected, given the collapse of world prices. Taking the case of coffee
production only in Brazil and Ethiopia domestic consumption accounts for a
significant share of their total production. Brazil is not only the world's largest
producer but it is also the world's second largest consumer after the US. It
currently consumes around 13 million bags a year (with a per capita
consumption of 4.9 kg a year) Indonesia, Mexico, Colombia and India are the
other producing countries which shows a consumption level of over one
million bags.
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Consumption Trend in India
Coffee consumption has shown an annual average growth of 3.14%
between 1951- 2007. In absolute terms the off take in domestic market has
grown from about 18,400 tones to about 70,000 tones during 2006. For
various reasons the decade between 1991- 2000 did not show any noticeable
growth in consumption.
This period coincided with a surge in domestic retail prices in India.
Table 2.1 shows the domestic consumption of coffee as well as per capita
consumption for selected points in time. Most of the earlier growth has comefrom Robusta than Arabica. This is expected in view of higher growth in
production of Robusta and its substantial lower prices. Though, during the
pool marketing, the period between 1981-90 saw higher volume of
consumption (well above 50,000 MT and peaked about 63,300 MT) highest
growth rates were achieved. During the period 1951-60 and 1971-80 at a CGR
of 7.23% and 3.28% respectively. The rates of increase in consumption were
also higher at 1596 MT P.A and 1375 MT P.A respectively.
Table.2.1: Coffee Consumption by type and per capita consumption in
India
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From the table 2.1it is understood that the coffee consumption is
showing an increasing trend over the years. As a result of the increasing trend
in the coffee consumption may leads to increase the growth rate. Over the
decade the coffee consumption is showing the increasing trend. The per capita
consumption declined to 0.069 kg in 1971 and there after in 1981 it increased
up to 0.074kg. Then again it declined in 1991 and 2001.
Over the decade the highest coffee per capita consumption reported in
the year 2008 by about 0.091kg. Year 2001 witnessed the lowest rate ofgrowth of milk production, which is only 0.062kg of the previous years
production.
Table.2.2
Coffee Consumption by type and per capita consumption (All India)
Year Coffee Consumption(MT) Per Capita Consumption(Kg)Arabica Robusta Total
1951 14857 3526 18383 0.051
1961 17293 16580 33873 0.077
1971 20387 17517 37904 0.069
1981 28586 22210 50796 0.074
1991 37500 17500 55000 0.065
2001* 34000 30000 64000 0.062
2002
*
34000 34000 68000 0.0662003* 33800 36500 70300 0.068
2004 34600 37500 72100 0.073
2005 36000 38500 74500 0.081
2006 37800 38650 76450 0.087
2007 38900 38748 77648 0.088
2008 39500 39546 79046 0.091
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Annual Growth rate and trend in coffee consumption by decades in India
Growth rate and trend in consumption by decades in India
Years Mean (MT) GR (%)
1951-60 23188 7.23
1961-70 35462 0.69
1971-80 41433 3.28
1981-90 55538 1.16
1991-2000 52500 0.48
2001-2007 43085 3.14
Recent market research studies affirmed that coffee consumption in India, by
and large is an urban phenomenon with an urban and rural divide of 71% and
29% respectively. Among the type of coffee consumed it was almost equally
divided between instant (soluble) and filter (Roast and ground) coffees though
the proportion of instant coffee is very high in non-south.
Attitude of the Indian coffee consumers
The Coffee Board has commissioned market research studies in 2001 and
2003 to understand: the habits and practices with respect to coffee
consumption; coffee consumption by location and form; share of Coffee in the
daily basket of beverages consumed etc. The attitudes towards coffee and
drivers and barriers to coffee consumption were studied in 2001. The salient
results of these studies are as follows:
Coffee at home is significantly different to coffee outside.
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It is interesting to observe that rating for Coffee outside home is better
than Tea outside home, specifically in the North and the east.
Restaurant Coffee rated better on quality in the West and South,
particularly when compared with the East.
Coffee from vending machines rated significantly more satisfactory in
the North as compared to the East or the West.
In the weak Coffee markets defined as the markets in the North, East
and West- the key barriers to Coffee appear to be its bitter taste (East),
its inconsistent taste outside. High price of coffee is also felt as a barrier in the South and the North.
Attitude towards coffee available outside of home is least favorable in
the East
The knowledge levels on Coffee appear to be relatively weak in the
North and East where consumers
- Do not know how to make filter coffee
- Do not know what chicory is
- Would make filter coffee if they knew how to make it well (East)
Consumer in the North also believe that making filter coffee is time-
consuming
While consumers in the North believe that Instant coffee is convenient
and tastes good the seasoned coffee consumer in the South believes that
all Instant coffee contains chicory and that filter coffee is the gold
standard in coffee.
Respondents in the North, followed by East, appear to be most
positively inclined to consume more coffee at home if - The price was
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Yesterday consumption of coffee is relatively lower with 19%
consuming it yesterday (when compared to 85% for tea). Yesterday's
consumption was the highest in the South at 31 % while it ranges
between just 35% in the weak coffee zones of North, East and South.
Yesterday's consumption is the highest among the 1524 and 35-44 age
group.
When compared to consumption of other beverages yesterday, coffee
comes in third, after tea and plain milk. Among other beverages,
buttermilk, natural beverages and Carbonated Soft Drink are morepopular with more than 10% of respondents consuming these beverages
yesterday.
Coffee is consumed as a first cup only by 23% of coffee drinkers even
in the traditional market of the South.
Coffee has a 10% share of throat at the national level, with negligible
shares in the north, east and west zones, (1% or less). However, coffee
performs well in the south, recording a share of 18%, the highest after
tea at 45%.
Per capita consumption of coffee (among all respondents - both
drinkers and non drinkers) is 0.33 cups against 1.77 cups for tea.
However, coffee consumption among drinkers at 1.76 cups compares
favorably with that of tea at 2.1 cups. This would point to the fact that
coffee is consumed as much as tea (among drinkers). If coffee volumes
have to compare favorably with that of tea, the base of coffee
consumers needs to be increased.
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About 41% of the respondents are non-drinkers of coffee. The potential
for growth lies with occasional drinkers who constitute 40% of the
population. The potential is more in the north and the east zones. The
proportion of non-drinkers of coffee increases from Socio Economic
Class (SEC) A to C, while that of occasional and light drinkers
decreases. Coffee thus seems to be more a beverage of the upper SECs.
The proportion of non-drinkers is the highest in the oldest age group of
55+ years. Amongst coffee consumers in the rural areas, a majority
(43% of all adults) is light drinkers, consuming 1-2 cups everyday.About a fifth of rural consumers consume coffee occasionally.
The average number of cups of coffee consumed increases marginally
from summer to winter.
Visiting cafes is not a frequent habit. Of all respondents surveyed, about
12% visit cafes and there is a greater tendency among the upper SECs
to visit cafes. Of all the respondents, about 10 % have ever visited
cafes; this proportion is higher among men and the younger age groups
(15-34 years).
Around 65 % of households buy instant coffee and only 18% buy filter
coffee
Among filter coffee drinking households, 49% are branded coffee
drinkers and 51 % are unbranded coffee drinkers. In the South, filter
coffee is bought mostly from R&G outlets.
A majority of the rural households (71 %) buy packaged and branded
coffee powder of those buying branded/ packaged coffee powder, 47%
buy instant coffee and 53%, filter coffee.
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Coffee-houses are regarded as centers of scientific education, literary and
philosophical speculation, commercial innovation and, sometimes, political
fermentation. Coffee-houses are hotbeds of financial innovation and
experimentation, producing new business models in the form of innumerable
novel variations on insurance, lottery or joint-stock schemes. It was at coffee-
houses that commerce and new technology first became intertwined. They are
outlets for a stream of newsletters, pamphlets, advertising free-sheets and
broadsides.
The contrast between coffee and alcoholic drinks was reflected in the
decor of the coffeehouses that began to appear in European cities, London in
particular. They are adorned with bookshelves, mirrors, gilt-framed pictures
and good furniture, in contrast to the rowdiness, gloom and squalor of taverns
Coffee came to be regarded as the very antithesis of alcoholic drinks, sobering
rather than intoxicating, stimulating mental activity and heightening
perception rather than dulling the senses.
Its popularity owed much to the growing middle class of information
workersclerks, merchants and businessmenwho did mental work in
offices rather than performing physical labour in the open, and found that
coffee sharpened their mental faculties Coffee, however, was heralded as that
Grave and Wholesome Liquor, that heals the Stomach, makes the Genius
quicker, Relieves the Memory, revives the Sad, and cheers the Spirits, withoutmaking Mad.
The kinship between coffee-houses and the internet has recently been
underlined by the establishment of wireless hotspots which provide internet
access, using a technology called Wifi, in modern-day coffee shops. Such
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hotspots allow laptop-toting customers to check their e-mail and read the news
as they sip their lattes.
They are adorned with bookshelves, mirrors, gilt-framed pictures and
good furniture, in contrast to the rowdiness, gloom and squalor of taverns
Coffee came to be regarded as the very antithesis of alcoholic drinks, sobering
rather than intoxicating, stimulating mental activity and heightening
perception rather than dulling the senses. Its popularity owed much to the
growing middle class of information workersclerks, merchants and
businessmenwho did mental work in offices rather than performing physical labor in the open, and found that coffee sharpened their mental
faculties.
My preliminary review of literature describes that there is extensive
literature available on various aspects of Coffee at Coffee day Xpress products
across the India, but there has been little focus on research regarding Product
quality and sales mans behavior on the purchasing decisions of the coffee day
Xpress outlets. It applies field based approach to bring out the strategies
which influences the sales promotion of coffee at Coffee day Xpress outlets. It
discusses the implications of the finding with regards to the role of sales man
and product quality in making purchase decisions for further research. Not
only these two factors but also so many factors can influence the purchase
decisions. Here I deeply think about these two variables and making a
conclusion to take up this research work at coffee day.
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CHAPTER II
Company
Profile
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COMPANY PROFILE
Amalgamated Bean Coffee Trading Company Ltd is perhaps one of
the two fully integrated coffee companies of Asia, involved in all sectors of
Coffee from plantations to retailing to exports.
Amalgamated bean coffee trading company Ltd (ABCTCL), popularly
known as coffee day is Indias largest coffee conglomerate, an RS.450 crore
ISO 9002 certified group company. Amalgamated Bean Coffee Trading
Company, better known as "ABC", is one of the largest exporters of green
coffee from India since 1999. ABC's business mission has its roots in coffeeknowledge. This culminates into an incessant effort to adapt to dynamics of
the coffee market resulting onto a leadership role. ABC has invested well into
a Research and development on coffee quality that supports our domestic
promotion of various blends of coffee and augments our export activities.
Company Background
ABCTCL, promoted by a first generation entrepreneur- Mr. V.G.Siddhartha,
was incorporated in 1993 to export coffee beans. In order to move higher up
the value chain, the company forayed into retailing of coffee by opening retail
shops in the name of 'Coffee Day' in 1995 and cafs in the name of 'Caf
Coffee Day' (CCD) in 1996. The company also acquired a coffee curing
facility 'Ganga Coffee Curing Works Ltd' in the year 1996, and thus became
an integrated coffee retailer.
The company has won various recognitions like 'the second most
respected company in food retail in India by Business World, 2006; 'Food
and Services retailer of the Year' and 'Exclusive Brand Retailer of the Year' by
ICICI Bank Retail Excellence Awards, 2005; and No.3 food and services
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brand' in Business World and Brand Equity Surveys, 2005. The company has
also won all the top awards in the India Barista Championship for three years
in a row (2003-2005). Additionally, Mr. V.G. Siddhartha was recognized by
the Economic Times as 'Entrepreneur of the Year' in the year 2003.
Operations of the Company
ABCTCL has six distinct business divisions, with each division
complementing the overall business of retailing coffee, and contributing to the
profits of the company. A brief description of the six business divisions is as
follows:
1.Caf Division(Caf Coffee Day): this division has started its operation in
1996. This division retails coffee through specialty outlets, positioned as the
neighborhood cafes offering attractively priced products to make drinking
coffee a warm and pleasurable experience. It contributed around 43% the
revenue of ABCTCL and 68% to PBIT, during FY07.
a lot can happen over coffee
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2. Fresh and Ground (F&G) Division: This was one of the first divisions
started by ABCTCL for retailing coffee. Started in 1995, the division retails
freshly roast and ground coffee powder, as it offers a superior taste, as
opposed to packaged/instant coffee. The outlets offer over 22 distinct varieties
of coffee using both Arabica and Robusta varieties. The division contributed
9% to the company's total revenues and 24% to PBIT for FY07.
3. ABC Exports: ABC Exports has its operation in the year 1999.The
division forms the backbone for the company's operations. The company has
38 exclusive agents who collect the coffee and bring it to the curing works atHassan and Chikmagalur on a commission basis. The curing, roasting and
packing of the coffee is done in-house at the company's facilities in Hassan
and Chikmagalur. Once processed, the coffee is exported to countries like
Europe, USA, Japan and UAE as well as retailed locally.
The company earned 36% of revenue and 7% of is PBIT from this
division, during FY07.As above; ABCTCL's revenues are driven mainly by
caf and PPE divisions. The margins, however, are driven mainly by Caf and
F&G divisions. The company chalked out a substantial expansion plan across
all the above divisions. The said plan is to increase the business by increasing
the number of outlets of each format and providing high value-added products
in order to boost the margins. The expansion plan would cost approximately
Rs.500 crore and would be funded by a mix of debt, equity and internal
accruals.
4. Take Away: In line with its objective of providing an authentic Coffee
experience, ABCTCL ventured into vending machines that provide fresh filter
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coffee as against the instant coffee provided by most other players. The
machines, developed indigenously by ABCTCL, vend coffee either using
coffee decoction or from freshly ground coffee beans, both supplied by the
company itself. This division contributed 6% to the total revenue of the
company and 9% to PBIT during FY07.
5.Coffee Day Perfect division: Coffee Day perfect started its operation in the
year 2003. Perfect concentrated mainly on the FMCG Packaged Coffee.
6. COFFEE DAY XPRESS: Coffee Day Xpress division aims at bridging
the need gap between the leisurely cups and a bite at the Caf and a quickdrink at a vending point.
About Coffee Day Xpress
The Coffee Day Xpress is Coffee On the Go! Concept that makes you
ask more for
Coffee Day Xpress is a unique concept of convenient cafe, an idea that
feeds a world that's continuously in transit.
The Coffee Day Xpress kiosk is a sanctuary where the harried urbanite
can pause for refreshment before getting on with life. Retail custom- made for
the 21st century. Catering to a world that needs coffee on the go! at high
traffic locations. With hot and cold beverages and a variety of ready- to- eat
snacks.
Amalgamated Bean Coffee Trading Company Ltd or ABC, as it is
better known is a fully integrated coffee company with a rich heritage that
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stretches over a century. Its endeavors find expression from coffee plantations
to innovative retail concepts and even exports.
To ensure that it remains a dominant force in the coffee sector, ABC
has invested extensively in Research & Development to ensure quality coffee
blends.
The main reason to introduce the Coffee Day Xpress is to tap that
consumer market segment that prefers to spend between Rs.10 to Rs.30 on
coffee. It is Coffee on the Go! Concept. Other reasons increase the brand
awareness in the customers about the Coffee Day. The Company is basically
using push Strategies for the sales of the products. Walk in rates of the
customers is about 3000 people per day in Bangalore. The people they
employee at the Xpress outlets are educated as well as trained. Turnover of the
Xpress Division is around 40 crores which accounts for approximately 15%
for the company.
At Coffee Day Xpress we believe in the complete refreshing experience.
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Company has the entire range of coffee. Cappuccino. Latte. Espresso.
Moksha, and a host of beverages, including teas, shakes and even hot
chocolate.
To round off the experience, you could also tuck into a variety of snacks
(like sandwiches, submarines, burgers, puffs, samosas, wraps and
pastries).Truth to be told, the Coffee Day Xpress range of food varies from
region to region. What the company tries to do is to incorporate regional
favorites in our menu and to balance the salt with the sweet. The global and
the local tongue-tickling tastes to suit all palettes.
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Coffee Day- Prestiges Outdoor Outlet at Garuda mall
Coffee Day Xpress Indoor Outlet
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At the busy city crossroads, between home and office, when there's notenough time for hot cup of coffee or a leisurely meal, you can trust a Coffee
Day Xpress to provide fast, fresh, hygienic, convenient-to-eat and affordable
food & beverages.
Spectacular success has greeted Coffee Day Xpress at:
Shopping malls
Supermarkets
Multiplexes
Corporate
Airports
Railway stations
Depots
Petrol pumps
Parks
Getaways
Educational institutions...
In a short period of just three years, the Coffee Day Xpress has managed to
excite customers in 18 cities across India. With a growing presence in airports
and the railways, Coffee Day Xpress is perhaps the only national coffee brand
that is capturing the imagination of modern resurgent India.
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Coffee Day Xpress is a profitable lifestyle brand where the accent is on
being quick, convenient and accessible.
Customers in a hurry must be able to grab a coffee and a snack even
while they are on the move You can partner with us as a franchisee. Or if
you are a corporation, you can leverage our brand to promote yours. The
possibilities are endless and the rewards great.
Cash in a flash for Entrepreneurs
Transform a 60 to 100-feet-square kiosk into a money-vending
machine. Coffee Day Xpress is perhaps the only low investment, high returns
business, where you pile up your profits right from the word go. The low-risk
investment, which is 90% refundable and 10% goes as royalty fees, entitles
you to a plug-and-play kiosk fully equipped with all the machineries - fully
operational within 7 to 10 days of the franchise agreement being signed.
It can truly be said that no other brand growing through the F&B
franchising route offers so much for so little. All you need is a hunger for
success, a high-traffic location and a little investment. All the rest like the
training and support is provided by the Coffee Day Xpress brand. And you
are ready to rake in the big bucks from Day 1.
With over 500 successful entrepreneurs spanning the length and breadth
of India, Coffee Day Xpress is poised for a growth curve that's creating new
benchmarks in the F&B franchising business. Speckled across the urban cape
of India's leading citiesthere's one sign that beckons entrepreneurs who
want to book profits.
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With a product portfolio that embraces hot and cold beverages, and a
snacks menu that stretches from burgers, rolls, submarines and sandwiches to
brownies, pastries, puffs and samosas, Coffee Day Xpress is the one take-
away F&B format that caters to the needs of all customers for whom time is
money.
The format has been known to work spectacularly well at locations
like shopping malls, supermarkets, multiplexes, travel termini, petrol pumps,
parks, educational institutions where large numbers of people congregate.
Convenient and oh-so-cool! For Corporate
Invest in happier employees. The in-corporate Coffee Day Xpress kiosk
is the hub of activity. It's where employees meet up, hang out and chill in
between bouts of work. It's their gas station and adds a little sparkle to their
work life.
The hot or cold coffee, the thick shake; the burger, the roll, the
submarine, the sandwich, the pastry, the puff and the samosa all act as quick
pick-me-ups.
Best, perhaps, of all is the fact that Coffee Day Xpress makes for
content, well-fed employees who see their work place as convenient and oh-
so-cool. Low on space, installed with minimum effort, a Coffee Day Xpress
kiosk (occupying a mere 60 sq ft) is a plug-and-play model that's just the
solution for canteen needs.
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Most importantly, an in-house Coffee Day Xpress kiosk means better
employee morale, shorter coffee breaks. It's one sure-fire way of taking care
of your people.
Coffee Day Xpress is a small format convenience caf serving the
needs of people 'on the go'. These kiosks are located in areas that have high
people traffic- like theatres, malls, airports, petrol pumps, educational
institutes, railway stations etc. The key differentiator between a caf and a
kiosk is that Kiosks do not have any provision for people to sit and eat. This
division contributed around 5% to the company's total revenues and 2% to
PBIT during FY07.
Industry Outlook; The importance of the coffee industry can be
gaugedby the fact that coffee is one of the largest tradedcommodities in the
world. Over 90% of global coffee production takes place in developing
countries while most consumption takes place in industrialized economies.
The Indian coffee industry represents a microcosm of the global industry
accounting for only 4%of world production. India has production base of
approximately 4 - 4.5 million bags against world production of 117 million
bags. The total area planted under coffee in India is 3, 54,000 hectare (ha.)
with 3, 27,000 ha. In production spread mainly across 3 southern estates viz.,
Karnataka, Kerala and Tamil Nadu. The major varieties of coffee are Arabica
and Robusta and both are produced in India. About 70-75 percent of Coffee
production is exported; approximately 4% of total global coffee exports,
leaving the balance for domestic consumption. The biggest consumers of
Indian coffee are Russia, Italy and Germany, accounting for approx. 49% of
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Indian exports. The domestic demand for coffee has been growing slowly and
is at 80,200 M.T.
CHAPTER IV
ResearchDesign
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RESEARCH DESIGN
Statement of the problem
In the service encounters especially for a niche category like Coffee
Day Xpress in Bangalore city, which focus on youth as their clients, despite
the quality, the salesmans behaviour plays an inevitable role in purchasing
decision.
Here I am trying to find out the role of salesmans behaviour on linear
relationship between the product quality and the purchasing decisions ofCoffee Day Xpress products in Bangalore city.
Purchasing Decision
Salesmans Behaviour
33
Product Quality
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TITLE OF THE STUDY:
Influence ofProduct Quality and Sales Mans Behavior on the Purchasing
Decision
A study conducted for Amalgamated Bean Coffee Trading
Company Ltd at its Coffee Day Xpress Outlets in Bangalore City.
Research Objectives:
To study the influence of product and salesmans behaviour on the
purchasing decisions of the customers of Coffee Day Xpress outlets.
To evaluate customers attitude towards Xpress outlets products with
respect to his/her perception of Xpress brand.
To identify the influence of availability of Xpress products in customers
purchasing decision process.
Variables under study
Dependent variable: - Purchasing decision
Independent variables: - Product Quality, Salesmans behaviour and
availability of Xpress products.
Hypothesis 1
Ho: No significant relation between product Quality and purchasing decisions.
H1: Significant relation between product quality and purchasing decisions.
Hypothesis 2
HO: No significant relation between service of the sales man and thepurchasing decision.
H1: significant relation between service of the sales man and the purchasing
decision.
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Hypothesis 3
Ho:No significant relation between availability and accessibility of Xpress
products and purchasing decisions.
H1: significant relation between availability and accessibility of Xpress
products and purchasing decisions.
Scope of the study
The result obtained cannot be generalized to the whole population as
the methods for arriving at the sample size and selecting the sample were
unempirical. The findings are restricted to the particular sample, as thereexists a difference in target customers and attributes among them.
This study will help the to identify the product quality and salesmans
behavior of the Coffee Day Xpress products need to be improved so that it
can provide customers with better quality products. The study will also help
the management to decide how to increase the sales of the coffee products,
walk-in rate of the customers, brand awareness & market share of the Coffee
Day Xpress products.
Research methodology
The research was designed to achieve the above mentioned objectives
and the following tools were used to collect the required data.
Sampling method
Sampling frame
Sample Size
Sampling technique
Data collection Methods
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Sampling method
A sample chosen for the present study was simple convenience sampling.
Sampling frame
The sampling frame of the present study is the customers of 30 outlets in
Bangalore city.
Sample size
The total sample size for the data collection of the research was 190
respondents. A sample of 190 questionnaires was administered to the
customers with respect to the customers buying the Coffee Day Xpressproducts.
Sampling technique
The sampling technique followed was, administrating these 190
questionnaires to the customers selected on convenience basis in the absent of
any data base about the customers. That is with respect to the customers
buying the Coffee Day Xpress products.
Data Collection Methods:
The sources of data collection are:
1.Primary Data:Primary Data is the first hand information collected during
the research. These are the original observations collected from the targeted
segment of different methods. The Primary Data is collected through
structured questionnaires and Direct Interview.
2. Secondary Data: The Secondary Data is collected through the materials
given by the organization, books, journals, articles, Business magazines and
Internet.
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Tool for Data Collection:
Structured Questionnaires were the tools for data collection. The
Questionnaire was neatly designed and constructed for the purpose inline with
the objective of the study. Questions related to objectives of the study, form
major portion of the questionnaire. It mainly consists of multiple choice
questions so that respondent can mark one of the several choices of answers.
Questionnaire is formed based on the ideas obtained from researchers
discussion.
Area of enquiry: The research investigation was held at various Coffee dayXpress junctions in Bangalore. Spectacular success has greeted Coffee Day
Xpress at:
Shopping malls
Supermarkets
Multiplexes
Airports
Railway stations
Depots
Petrol pumps B
Parks
Getaways ...
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Data analysis and inference: The data generated from the research survey
would be subjected to rigorous analysis and inferences would be drawn
accordingly.
Research Limitations
My research investigation is beset with the following constraints:
1. The study is carried out considering only Bangalore city i.e., limited
boundary, so it will face lack of depth study.
2. Feedback from respondents is limited 190 persons that is sample size is190.
3. Sample may be biased or may not represent the true representation.
Only the respondent co-operation and true information in the study will
only give a clear picture.
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CHAPTERV
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Analysis &Interpretati
on
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DATA ANALYSIS
This chapter deals with the analysis of data and evaluation of the
performance of the coffee day Xpress outlets in Bangalore city. Data collected
from Bangalore city. Coffee day Xpress has presently 130 in Bangalore city
and Mysore road alone. Out these 130 outlets 41 are franchisees and
remaining is company own outlet.
For the data collection, direct interview method was used with structured
questionnaire. Similarly, a sample was chosen for the research and was chosen
by a simple convenience sampling. The research investigation will be at
various Coffee day Xpress junctions in Bangalore. Spectacular success has
greeted Coffee Day Xpress at:
Shopping malls
Supermarkets
Multiplexes
Airports
Railway stations
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Table 5.1: Age wise distribution of respondents
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid < 18 years 17 8.9 8.9 8.9
19-24 years75 39.5 39.5 48.4
25-30 years64 33.7 33.7 82.1
31-40 years14 7.4 7.4 89.5
41 & above20 10.5 10.5 100.0
Total190 100.0 100.0
Source; sample survey
Figure 5.1
Age Group Of Respondents
Age Group
41 & above31-40 years25-30 years19-24 years< 18 years
NoOfRespondents
50
40
30
20
10
0
Inferences
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As per the study majority of the coffee day Xpress consumers belongs
to the age group 19-24 years i.e. 39.5% of the total sample. From the data it is
to be understood that the coffee day Xpress became a good place to taste the
quality food. Only 10.5% come under the age group of above 41 years.
The age wise distribution of the coffee day Xpress consumers in Bangalore
city can be depicted with the help of the diagram.
Table 5.2: Gender of Respondents Visiting Coffee Day Xpress Outlets
GENDER Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Female 67 35.3 35.3 35.3
Male 123 64.7 64.7 100.0
Total190 100.0 100.0
Source; sample survey
Figure 5.2
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Gender Of Respondents Visiting Coffee Day Xpress
m
f
Inferences
The above table shows the gender wise distributions of the Xpress
consumers.64.7%of the Xpress consumers are male. Only half of them are
female.
Table 5.3: Occupation of Respondents Visiting Coffee Day Xpress Outlets
Profession Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
IT Professional 50 26.3 26.3 26.3
BPO Jobs18 9.5 9.5
35.8
Engineer11 5.8 5.8 41.6
Student60 31.6 31.6 73.2
Others51 26.8 26.8 100.0
Total190 100.0 100.0
Source; sample survey
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Figure 5.3
Job Of The Respondents
Others
Student
Engineer
BPO Jobs
IT Professional
Inferences
The above table shows the majority of the respondents is students,
i.e.31.6% and 26.8%include in the category of others like bank professionals,
business etc. only 5.8%is in the category of engineer.
Table 5.4: Frequency of Respondents going to coffee outlets
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid less than 10times a week
34 17.9 17.9 17.9
10-20 times a
week52 27.4 27.4 45.3
21-30 times a
week63 33.2 33.2 78.4
31-40 times a
week18 9.5 9.5 87.9
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above 40 23 12.1 12.1 100.0Total 190 100.0 100.0
Source; sample survey
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Inferences
The above table reveals the frequency of the outlet visits. 33.2%of the
respondents visiting the coffee day Xpress outlets 21-30 times a week.
27.4%of the customers visiting the outlet less than 10-20 times a week. Only
12.1% of customers are not often on their visit.
Figure5.4
Frequency Of Respondents Outlet Visit
Frequency Of The OutletVisit
not often
2-3 times a month
6-8 times a week
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Table 5.5: Average Spending at Coffee Day Xpress at a visit
Source; sample survey
Inferences
The table reveals the average spending at coffee day Xpress
outlets. 41.1%of the customers are spending 25-75 rupees and 28.4%of
the customers are spending at average of 75-125 rupees daily. Only
12.1% of customers are spending above 125 rupees.
Spending Frequency PercentValidPercent
CumulativePercent
Valid 0-25
rupees
35 18.4 18.4 18.4
25-75
rupees
78 41.1 41.1 59.5
75-125
rupees
54 28.4 28.4 87.9
over 125
rupees
23 12.1 12.1 100.0
Total 190 100.0 100.0
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Figure5.5
Average Spending
over 125 rupees
75-125 rupees
25-75 rupees
0-25 rupees
Table5.6: Freshness and Flavor of the Xpress Products
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid stronglyagree
10 5.3 5.3 5.3
some what
agree58 30.5 30.5 35.8
neitheragree nor
disagree
80 42.1 42.1 77.9
some whatdisagree
36 18.9 18.9 96.8
strongly
disagree6 3.2 3.2 100.0
Total 190 100.0 100.0
Source; sample survey
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Table 5.7: Taste and quality of food
Frequency PercentValidPercent
CumulativePercent
Valid strongly
agree12 6.3 6.3 6.3
some what
agree66 34.7 34.7 41.1
neither
agree nor
disagree
69 36.3 36.3 77.4
some whatdisagree 33 17.4 17.4 94.7
stronglydisagree
10 5.3 5.3 100.0
Total 190 100.0 100.0
Source; sample survey
Inferences
The above table reveals the respondents opinion about the taste and
quality of the food items.36.3% of the consumers have good opinion about the
food items. Only 5.3% of consumers have negative opinion about the product
quality.
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Figure5.7
Taste and quality of food
strongly disagree
some what disagree
neither agree nor di
some what agree
strongly agree
Table 5.8: Respondents rating About the Ambience of Xpress outlets
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid strongly
agree17 8.9 8.9 8.9
some what
agree49 25.8 25.8 34.7
neither
agree nordisagree
87 45.8 45.8 80.5
some what
disagree33 17.4 17.4 97.9
strongly
disagree4 2.1 2.1 100.0
Total 190 100.0 100.0
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Inferences
The table 5.8 shows the respondents rating about the ambience of the Xpress
outlets.45.8%of the respondents are neither satisfied nor satisfied with the
ambience of Xpress outlets. Only 2.1% of the respondents are strongly
disagreeing with ambience of the Xpress outlets.
Figure5.8
Ambience of Xpress outlets
Opinion
strongly disagree
some w hat disagree
neither agree nor di
some w hat agree
strongly agree
NoOf
Respondents
100
80
60
40
20
0
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Table5.9 Opinion about Bean buddies positive attitudes
Frequency Percent
ValidPercent
CumulativePercent
Valid strongly
agree26 13.7 13.7 13.7
some what
agree61 32.1 32.1 45.8
neither
agree nordisagree
72 37.9 37.9 83.7
some what
disagree27 14.2 14.2 97.9
stronglydisagree
4 2.1 2.1 100.0
Total 190 100.0 100.0
Source: Sample Survey
Inferences
The above table shows bean buddies positive attitudes like high energy,
positive expressions and helpful attitudes. The data reveals that 37.9% neither
disagree nor disagree with the attitudes of the bean buddies. Only 2.1%have
strong disagreement.
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Figure5.9
Bean buddies positive attitudes
Opinion
strongly disagree
some what disagree
neither agree nor di
some w hat agree
strongly agree
NoofRespondents
80
60
40
20
0
Table 5.10Opinion about Bean buddies Efficient Service and Prompt Delivery
Frequency PercentValidPercent
CumulativePercent
Valid strongly
agree40 21.1 21.1 21.1
some whatagree
81 42.6 42.6 63.7
neither
agree nor
disagree
48 25.3 25.3 88.9
some what
disagree21 11.1 11.1 100.0
Total 190 100.0 100.0
Source: Sample Survey
Inferences
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The above table shows the opinion of respondents with respect to the
efficient service and prompt deliveries of bean buddies.42.6%have the good
opinion about the service provided by the bean buddies. But 11.1% are not
happy with the efficient and prompt delivery of the products.
Figure 5.10
Opinion
4.03.02.01.0
Bean buddies efficient service and promt delivery100
80
60
40
20
0
Std. Dev = .92
Mean = 2.3
N = 190.00
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Table 5.11: Overall Service of the bean buddy
Opinion Frequency Percent Valid PercentCumulativePercent
Valid
inconvenient2 1.1 1.1 1.1
some what
convenient
23 12.1 12.1 13.2
convenient127 66.8 66.8 80.0
very
convenient
38 20.0 20.0 100.0
Total190 100.0 100.0
Source; sample survey
Inferences
The above table reveals the service of the bean buddy with respect to the order
time.66.8%of the people have the opinion that ordering time is convenient.
Only 1.1% has the opinion that service of the salesman is inconvenient.
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Figure 5.11
Opinion
4.03.02.01.0
Bean buddies efficient service and promt delivery100
80
60
40
20
0
Std. Dev = .92
Mean = 2.3
N = 190.00
Table 5.12: Opinion about the Availability of the products
Frequency Percent
ValidPercent
CumulativePercent
Valid strongly
agree2 1.1 1.1 1.1
some what
agree27 14.2 14.2 15.3
neitheragree nor
disagree
116 61.1 61.1 76.3
some what
disagree36 18.9 18.9 95.3
stronglydisagree
9 4.7 4.7 100.0
Total 190 100.0 100.0
Source: Sample Survey
Inferences
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The above table shows the availability of the Xpress products. Majority
of the consumers i.e.61.1% have neither satisfied nor dissatisfied with the
problems concerning about the availability of the products. Only 4.7% has
strong disagreement towards the availability of the products.
Figure 5.12
Opinion about the availabilty of the products
strongly disagree
some w hat disagree
neither agree nor di
some what agree
strongly agree
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Table 5.13Acessibility of the Coffee Day Xpress Outlets
Frequency PercentValidPercent
CumulativePercent
Valid strongly
agree2 1.1 1.1 1.1
some what
agree27 14.2 14.2 15.3
neither
agree nordisagree
116 61.1 61.1 76.3
some what
disagree36 18.9 18.9 95.3
stronglydisagree
9 4.7 4.7 100.0
Total 190 100.0 100.0
Figure 5.13
Accessibility of the Coffee Day Xpress Outlets
Opinion
strongly disagree
some w hat disagree
neither agree nor di
some what agree
strongly agree
NoOfResponde
nts
140
120
100
80
60
40
20
0
Table 5.14Respondents Feelings about price with respect to brand
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Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Low 1 .5 .5 .5
moderate 14 7.4 7.4 7.9satisfactory 74 38.9 38.9 46.8
dissatisfactory 67 35.3 35.3 82.1
expensive 34 17.9 17.9 100.0
Total 190 100.0 100.0
Inferences
The above table represents the respondents feeling about the price of
the products with respect to Xpress brand. The satisfactory level about the
present price of Xpress product is 38.9% again the dissatisfactory level is
35.3%.
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Figure 5.14
Opinion about price of Xpress products
expensive
dissatisfactory
satisfactory
moderate
low
Table 5.15Recommendation of Xpress to the friends
Frequency PercentValidPercent
CumulativePercent
Valid strongly
agree10 5.3 5.3 5.3
some what
agree58 30.5 30.5 35.8
neither
agree nor
disagree
80 42.1 42.1 77.9
some what
disagree36 18.9 18.9 96.8
stronglydisagree
6 3.2 3.2 100.0
Total 190 100.0 100.0
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Inferences
The above table shows the taste quality of beverage. 42.1% of the
people have the opinion that the quality of the beverages is good. Only 3.2%of
customers have the opinion that still room for improvement.
Figure 5.15
Recommendation of Xpress to the friends
strongly disagree
some what disagree
neither agree nor di
some what agree
strongly agree
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Table 5.16: Overall satisfactions of the outlets
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid strongly
agree14 7.4 7.4 7.4
some what
agree67 35.3 35.3 42.6
neither
agree nor
disagree
87 45.8 45.8 88.4
some what
disagree20 10.5 10.5 98.9
strongly
disagree2 1.1 1.1 100.0
Total 190 100.0 100.0
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Inferences
The above table shows the overall satisfaction of Xpress outlets.45.8%of the
respondents is neither satisfied nor dissatisfied with the service of the Coffee
Day Xpress. Only 1.1%is not at all happy with Xpress services.
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Figure 5.15
Overall satisfactions of the outlets
Opinion
stronly disagree
some w hat disagree
neither agree nor di
some what agree
strongly agree
NoOfRespondents
100
80
60
40
20
0
Table 5.17Correlation between Product Quality and Purchasing Decision
QUALIT
Y
PURCHAS
E
QUALITY PearsonCorrelation
1 .666(**)
Sig. (2-tailed) . .000
N 190 190
PURCHASE PearsonCorrelation .666(**) 1
Sig. (2-tailed) .000 .
N 190 190
** Correlation is significant at the 0.01 level (2-tailed).
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Inferences
The above table shows the correlation between product quality and purchasingdecision. Here r=.666 which shows a highly positive correlation between
these two variables.
Table 5.18 Goodness of Fit
Descriptive Statistics
190 .095 .176 -.208 .351
190 -.047 .176 .182 .351
190
QUALITY
PURCHASE
Valid N (listwise)
Statistic Statistic Std. Error Statistic Std. Error
N Skewness Kurtosis
Inferences
The above table showing the values of skewness and kurtosis, observed
distribution is not showing the characteristics of normal distribution. So we
can test the goodness of fit of correlation by using a non parametric test Chi-
square test.Table 5.19Chi square test
Ho-: No significant relation between product Quality and purchasing
decisions.
H1: Significant relation between product quality and purchasing decisions.
Test Statistics
115.947 108.421
4 2
.000 .000
Chi-Squarea,b
df
Asymp. Sig.
QUALITY PURCHASE
0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 38.0.
a.
0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 63.3.
b.
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Inferences
The calculated value of Chi square for product quality (115.947) isgreater than the critical value (9.488) at a df (4) and the level of significance
(.05).The calculated value of Chi square for purchase decision (108.421) is
greater than the critical value (5.991) at a df (2) and the level of significance
(.05).
So we cant accept the null hypothesis hence we can accept the
alternate hypothesis. So it is showing that there is a significant relation
between product quality and purchase decisions.
Table 5.20 Correlation between service of the sales man and Purchasing
Decision
SERVICE PURCHASE
SERVICE PearsonCorrelation
1 .637(**)
Sig. (2-
tailed). .000
N 190 190PURCHASE Pearson
Correlation.637(**) 1
Sig. (2-tailed)
.000 .
N 190 190
** Correlation is significant at the 0.01 level (2-tailed).
Inferences
The above table shows the correlation between product quality and
purchasing decision. Here r=.636 which shows a highly positive correlation
between these two variables.
Table 5.21Goodness of Fit
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Descriptive Statistics
190 .010 .176 -.333 .351
190 -.047 .176 .182 .351
190
SERVICE
PURCHASE
Valid N (listwise)
Statistic Statistic Std. Error Statistic Std. Error
N Skewness Kurtosis
Inferences
The above table showing the values of skewness and kurtosis, observed
distribution is not showing the characteristics of normal distribution. So we
can test the goodness of fit of correlation by using a non parametric test Chi-
square test.
Table 5.22Chi square test
HO: No significant relation between service of the sales man and the
purchasing decision.
H1: significant relation between service of the sales man and the purchasing
decision.
Test Statistics
128.189 108.421
3 2
.000 .000
Chi-Squarea,b
df
Asymp. Sig.
SERVICE PURCHASE
0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 47.5.
a.
0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 63.3.
b.
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Inferences
The calculated value of Chi square for service of the sales man(128.189) is greater than the critical value (7.185) at a df (3) and the level of
significance (.05).The calculated value of Chi square for purchase decision
(108.421) is greater than the critical value (5.991) at a df (2) and the level of
significance (.05).
So we cant accept the null hypothesis hence we can accept the
alternate hypothesis. So it is showing that there is a significant relation
between product quality and purchase decisions.
Table 5.23Correlation between service of the sales man and Purchasing
Decision
Correlations
AVILABILITY
PURCHASE
DECISION
AVILABILITY PearsonCorrelation 1 .332(**)
Sig. (2-
tailed). .000
N 190 190
PURCHASEDECISION
PearsonCorrelation
.332(**) 1
Sig. (2-
tailed).000 .
N 190 190
** Correlation is significant at the 0.01 level (2-tailed).
InferencesThe above table shows the correlation between product quality and
purchasing decision. Here r=.332 which shows a highly positive correlation
between these two variables.
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Table 5.24Goodness of Fit
Descriptive Statistics
190 -.111 .176 .069 .351
190 -.047 .176 .182 .351
190
AVILABIL
PURCHASE
Valid N (listwise)
Statistic Statistic Std. Error Statistic Std. Error
N Skewness Kurtosis
Inferences
The above table showing the values of skewness and kurtosis, observed
distribution is not showing the characteristics of normal distribution. So we
can test the goodness of fit of correlation by using a non parametric test Chi-
square test.
Table 5.25Chi square test
Ho:No significant relation between availability and accessibility of Xpress
products and purchasing decisions.
H1: significant relation between availability and accessibility of Xpress
products and purchasing decisions.
Test Statistics
128.189 108.421
3 2
.000 .000
Chi-Squarea,b
df
Asymp. Sig.
SERVICE PURCHASE
0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 47.5.
a.
0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 63.3.
b.
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CHAPTER VI
Findings,Suggestion
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s &Conclusion
Chapter -v
Findings, Suggestions & Conclusion
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Synopsis
5.1 Findings
5.2 Suggestions
5.3 Conclusion
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SUMMARY OF FINDINGS AND SUGGESTIONS
Coffee Day products are found to be branded products having
significant market share in the market. They are found to be providing quality
based services to suit customer needs.
Also we have covered the behavioral aspect of consumers, their
preference towards buying the product of the Coffee Day Xpress .Thus from
the consumers preference as well as from the behavioral aspect of consumers
concerning purchasing behavior, company can plan their promotional &
service strategies based on these market research findings, in such a manner,
so as to increase the market share, reduce advertisement expenditure, increase
the brand awareness level among consumers, reduce customer complaints and
thus targeting specific segment of the market and reaching large base of
customers. In order to make more sales the quality of the items in the Xpress
form of outlet and also the bean buddies are competent. So in this context an
attempt to study the product quality and salesmans behavior in purchasing
decisions among the coffee day Xpress outlets is very important.
The main findings and conclusions arrived at as a result of the study on
various aspects have been stated in the relevant chapters. It is attempt to
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present a consolidated picture of the study connected with a review of all the
important findings.
FINDINGS
Product quality directly influences the purchasing decisions to a
great extent (r=0.666) on coffee day Xpress products.
Service of the salesman directly influences the purchasing
decisions of coffee day Xpress products. (r=0.637)
Availability and accessibility influences the purchasing decisions
of coffee day Xpress products (r=0.332)
The majority of the consumers in coffee day Xpress outlets
belong to the category of 19-24 years.
The youth especially the college students have a positive attitude
towards the coffee day Xpress products. Among the total
consumers 31.6% are college students.
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26.3% of professionals from corporate favor the coffee dayXpress products.
The majority of the customers i.e. 41.1% spending an average of
25-75 rupees daily.
35.3% of customers are visiting the coffee day Xpress outlets 6-8times a week.
42.1% of the customers have the opinion that the taste quality ofthe beverage is good. Only 3.2% of the people have an opinion to
improve the quality of the beverage.
The majority of the customers have no doubt about the quality ofthe food items, i.e. 36.3% of the customers have good opinion
about food items.
73.6% of the customers favor the present price of the products.
They are happy to pay this much of amount money to the coffee
day Xpress products. 17.9% of the respondents have the opinion
that the present price of Xpress products is expensive.
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The attitudes of the bean buddy in the coffee day outlets are alsofine.37.9% Customers have good opinion about the behavior and
service of the bean buddy. Even though 14.2%of the respondents
are saying that the attitude of the bean buddy is average.
45.8%of the consumers have good opinion about the ambienceof the Xpress outlets, and 17.4% have an average opinion about
the ambience.
42.6%of the consumers are saying that Xpress products areusually available. Even then 25.3% saying that the products are
rarely available.
The service of the bean buddy with respect to the service anddelivery time have good opinion.66.8% of the population are
convenient with the service and delivery of the bean buddy.
55.3%of the consumers usually recommend the coffee day
Xpress.
The overall satisfaction level of the coffee day Xpress is 45.8%.
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SUGGESTIONS
Based on the above findings the following suggestions can be made.
1. Although the performances of the bean buddies are satisfactory there is
still room for improvement. This can be done especially by giving more
training. The training should concentrate on the communication, body
language, behavior of the bean buddy etc.
2. The availability of the products is also not up to the mark. So the food
and beverage team should concentrate efficiency level.
3. Coffee day Xpress should concentrate on the neatness and ambience.
4. Corporate favors the food items like uppma, avalaki etc in the morning
and evening time so it should be made available to them.
CONCLUSION
The modern community of todays world has come to realize the power
of retailing with respect to the coffee industry. What ever may the
inconvenience experienced by Coffee Day Xpress consumers in the Bangalore
city and in the many places of India it is undeniable fact that Xpress has made
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a remarkable progress in the retail business by quick convenient and
accessibility in the service indeed its blessing to the people. The Coffee Day
Xpress kiosk is a sanctuary where the harried urbanite can pause for
refreshment before getting on with life. The Coffee Day Xpress Kiosks has
reduced the distance between Coffee Day Xpress consumer and his golden
dream.
BIBLIOGRAPHY
BOOKS:
Marketing Management, Twelfths Edition, A South Asian
Perspective by Philip Kotler, Kevin Lane, Abraham Koshy and
Mithileshwar Jha, Part 7, Chapter 18, Page no. 487-492.
Advertising and Promotion, an integrated marketing
communications perspective, Sixth Edition by George E. Belch and
Michael A. Belch, Chapter 16, Page 510.
Business Research Methods, Ninth Edition, by Donald R Cooper
and Pamela S Schindler.
Management of Sale and Distribution, Eleventh Edition, by Rosann
L. Spiro, William J. Stanton and Gregory A. Rich.
JOURNALS AND MAGAZINES:
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4 Ps
Business World
Business Today
ARTICLES:
Toshowe, Stanley, The Marketing Review Caf Retail, The India
chapter, Volume86,Number 336 ,Jan2005,page-36.
Coffee boom: the pros and cons of being the "popular drink at thetable": try Asking a colleague, barista, roaster or...By Johns, Sherri
Publication: Tea & Coffee Trade Journal Date: Saturday, September 1
2007
WEBSITES:
www.coffeeday.com
www.coffeedayxpress.com www.indiancoffeeboard.com
www.google.com
www.wikipedia.com
www.starware.com
82
http://www.allbusiness.com/tea-coffee-trade-journal/20070901/5523061-1.htmlhttp://www.coffeeday.com/http://www.coffeedayxpress.com/http://www.indiancoffeeboard.com/http://www.google.com/http://www.wikipedia.com/http://www.starware.com/http://www.coffeeday.com/http://www.coffeedayxpress.com/http://www.indiancoffeeboard.com/http://www.google.com/http://www.wikipedia.com/http://www.starware.com/http://www.allbusiness.com/tea-coffee-trade-journal/20070901/5523061-1.html8/9/2019 Influence of product quality and sales man's behaviour on purchasing dcisions in Coffe Day
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Dear Sir/Madam,
I am Sreious P John, pursuing PGDM. This is purely an academic study aboutthe product quality and sales mans behavior on the purchasing decisions of
the coffee day Xpress outlets in Bangalore city. I humbly request you to give
your valuable opinion about the following:
Name:
Gender: Male Female
Age :
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31-40 times
Above 40
2. What is your average spending amount at Xpress outlets at a visit?
Less than 30 Rupees
30-60 Rupees
61-99 Rupees
100-130 Rupees
over131Rupees
3. How will you respond to Coffee Day Express claims about the Freshness
and flavor of their food?
Strongly agree
Some what agree
Neither agree nor disagree
Somewhat disagree
Strongly disagree
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4. How would you agree to Coffee Day Express claims about the taste and
quality of food?
Strongly agree
Some what agree
Neither agree nor disagree
Somewhat disagree
Strongly disagree
5