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International Marketing Project on Coffee Caf launch in Norway

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International Marketing Project on Coffee Caf launch in Norway11Country AnalysisCountry: NorwayCapital: OsloHistory: 9th to 11th century was Viking kings period From 1387 Norway was under Denmark By 1586 Norway become part of Danish Kingdom In 1814 Norway become part of Sweden 1905 Sweden recognize Norwegian freedomArea: 323802 sq km Natural Resources:petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites, nickel, fish, timber, hydropowerEnvironmental issue: water pollution; acid rain damaging forests and adversely affecting lakes

2DemographyPopulation:48,85,240 (2010) Population growth:0.329%Major City: Oslo ( 8,75,000)Language: Bokmal ,Nynorsk and Sami Religion :church of Norway 85.7%, Pentecostal 1%, Roman Catholic 1%, other Christian 2.4%, Muslim 1.8%, other 8.1% (2004)

Birth Rate:10.84/1000 Death Rate:9.24/1000 (2011 ,July)

Life expentency:80.2

Health Expenditure: 9% of GDP

Education Expenditure: 6% of GDP Literacy Rate : 100%

3Economic Environment GDP:$414.5 billion (2010 est.) Growth rate:0.4%(2010)Budget surplus:11.4%(2010)Unemployment rate:3.6%Inflation rate:2.5%Export: petroleum and petroleum products, machinery and equipment, metals, chemicals, ships, fishImport: machinery and equipment, chemicals, Coffee, metals, foodstuffsPer capita income: 72300$Main Industries :petroleum and gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, fishing

4Political and legal environment:Government type:constitutional monarchyLegal system:mixed legal system of civil, common, and customary law; Supreme Court can advise on legislative actsHead of government:Prime Minister Erna SolbergCabinet:State Council appointed by the monarch with the approval of parliamentMain political party:Christian People's Party, centre party, Labour party

5Reason for selecting Product & Company for that marketCompany: Caf Coffee DayProduct: Coffee CafReason for selecting caf coffee shop:There are many reasons for selecting this product1: There no big competitor in the market2: Norwegian coffee consumption is very high3:Norway import coffee from India4:Ability to pay high price

64 ps of Caf Coffee DayProductWide range of products appealing to Indian coffee and snack loversIndian taste Eatables adapted to Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc. Indian taste along with classic coffeeMerchandising includes funky stuff like t-shirts, caps etc.PeoplePeople at C.C.D. believe that People are hired for what they know but fired for how they behaveMotivation and personal skill are laid emphasis upon.ProcessOrder process - Based on services (Customer read menu and order).Flexible delivery process (Customer can go directly, take the order placed or order delivered on his table).

7Sales PromotionOffer coupons, Gifts vouchers, Caf Citizen CardsCaf Beat- an in-house magazine.Tie-up with World Space & Micro sense to provide satellite connectivityPhysical EvidenceLogo, Colours, ImagesRED signifies leadership, vitality and passion . The GREEN signifies coffee growing heritage and the coffee plantations that they own. WHITE SWIRL signifies purity of purpose, invigorating properties of growing coffee.Signifies that Caf Coffee Day pioneered the caf concept in India way back in 1996.C.C.D. will like to own the word caf in the minds of its customers.Dcor & ArchitectureLiterature New LogoDress Code

8Key success factor USP of brand is its considered a highly affordable brand.Excellent brand name and brand visibilityHuge young crowd as target groupExcellent ambience and serviceOver 1000 outlets and 300,000 visitors per dayIt produces/grows the coffee it serves hence reducing the costProducts of extremely good quality and taste.Its a youth oriented brand , hence huge potential since 40 % population is below 20Variety and wide choicegood hospitality

9International Industry analysis Annually consumption:40,000 tones Per capita consumption 10.7 kg per year in 2010Key supplier of coffee:, Peru, Guatemala, Brazil and Papua, New Guinea, India. East Timor, and BoliviaKey factor of coffee in Norway Quality of cup Consistent and reliable supply Price relative to conventional coffee Awareness of consumers about these coffees

10Details of Competitors There are three major player in Norwegian market 1:Friele2:coop caf3: Tim WendelboeThese three major player have approximately 50 to 55% Market share in Norwegian coffee market Friele is Domestic player and Coop and Tim Wendelboe are international player45 to 50% market share is cover by small player in Norwegian market

11Contd...Friele:Friele is the largest Coffee shop company in Norwegian marketCompany was started in 1799 Friele coffee brands have a total national market share of 35%Friele have main focus in two city: Oslo and Bergen Friele import coffee from seven country Company goal is to create the perfect "coffee moment" for as many as possible

12Contd...Coop cafIt was came Norwegian market in 1953subsidiary of Coop IndustrierCoop caf establish his caf in only OsloCoop caf import coffee from BrazilTim WendelboeStarted his business in 2007 from OsloThe goal of Tim Wendelboe is to be among the best coffee roasteries and espresso bars in the world.

13Marketing planTarget MarketPrimary : Generation x, y and Young boomers Means Age from 14 to 34.Secondary : 55+ year olds who enjoy a comparably high disposable income as their children moved out and their mortgages are paid off.

Segmentation:Student who go to college every dayTeenagersYoung couple

Positioning:Main three cities of Norway

14SWOT ANALYSIS OF CAF COFFEE DAY15Strengths Excellent brand name and brand visibility Huge young crowd as target group Excellent ambience and service Over 1000 outlets and 300,000 visitors per day It produces/grows the coffee it serves hence reducing the cost Products of extremely good quality and taste. Its a youth oriented brand , hence huge potential since 40 % population is below 20 It produces/grows the coffee it serves hence reducing the cost.

16Weaknesses Crowd management Improper sitting arrangement Lacks strength to maintain brand loyalty Follow the competitor strategy Weak brand image and 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.

17Opportunities Introduce cheaper versions of coffee Tap the smaller towns/cities Merchandising. Tie ups with other companies for promotion Coffee cafe industry is one of the fastest growing industries in Asia. More people like to visit CCD for informal meetings. Threats Entry of foreign players like star bucks Dependent on Govt. commodity rates Large unorganized market Competition with other coffee cafes like Barista, Mochas.

Porters Five Force Model18

Major Competitors19FrieleCoop KaffeJohannson Joh Kaffe Mocca Kaffebar & Brenneri

Marketing TacticsCommunication Plan : Strengthening Caf coffee Day brand by unifying its three divisions into one company Supporting Caf Coffee Day in achieving its sales objectives with strong and well-targeted marketing programs Positioning in the Oslo, Bergen and Stavanger markets as a daily destination and home-away-from-home for customers Beginning programs that will provide robust and intrinsic information that will ultimately be used to measure awareness & attitude of consumers towards CCD.

20Communication Objectives21Primary Objective : To increase primary target (80% of customers) per visit spending by 2.5% Tactic 1: Increased spending will be accomplished by training staff to cross-sell and up-sell each order with each customer with special focus on those customers within the primary target. Tactic 2: Increased spending will be achieved by offering a loyalty card targeted at the primary target with the intent to increase sales.

Communication Objectives22Secondary Objective : Increase top of mind recognition by 10% to 20% Tactic 1: Create activities and events at individual stores tailored to the local neighborhood flavor. Activities may includes things like book clubs, knitting clubs, board game clubs, live music or local art exhibits and will be promoted at the store level and determined by store management with the help of input from customersTactic 2: Sponsorship of local philanthropic events that the secondary target will be involved inCommunication Objectives23Objective: To increase Top of Mind in the minds of both the primary and secondary targets. Tactic: Sampling Weeks will be regular events that will happen at least two times a year per store and at the managers discretion. This will be a good opportunity to feature seasonal coffee flavors as well as feature new flavors which has always been a favorite way for Cafe coffee Day founders to rejuvenate the business as well as themselves. Ice cream flavors and deli treats may also be part of sampling weeks in year.

Marketing Mix Tool24Product Plan25Streamline all of the productsCaf Coffee Day has to be recognized as a specialty coffee shop that offers ice cream and deli foods as a perk-flanker productUniform menus in all storesOffer line extensions throughout holiday seasons, meaning promotional blended flavours available according to the seasonProduct line HAS to be streamlined and promotional tactics have to be integrated.

Branding Plan26Caf Coffee Day must have a uniform logo, and store look across the boardAll of Caf Coffee Day logos will be put on to go-cups (as well as quotes, brewing info, and recycled notations), deli wrap/boxes, and cold beverage cups as wellLogo must be viewed with a positive and respected connotation in representing their products and servicesLogo has to be eye catching, and will have warm colors. The store setting is an at home environment, warm and cozy

Packaging Plan27Logo on the 14oz, 16oz, and 18oz to-go cups-along with coffee quotes, tips, and recycled paper Designed to protect the product as well, while emphasizing the new logo scheme Outside packaging firm will be used to produce these materials for Cafe coffee DayPackaging must generate awareness and drawing attention to the product right at the point of salePricing Plan28Standard size cup of coffee must be about the same price as one of competitors, Friele for instance Customers will be getting two more ounces for freeFor competitive advantage CCD will sell their medium sized cup lower than its competitorsCaf Coffee Day must review pricing every quarterCafe coffee Dayat a great price will make Cafe coffee Day stand out from the competitionDistribution Plan292 channels of distribution will consist of the physical stores and the companys newly designed websiteThe website will have packaged whole bean and ground coffee, along with merchandise Main roasting facility will be in charge of the distribution and orders from the Caf Coffee Day websiteThe stores of course will be full servicedFuture : Vending Machines4 Ps and Entry StrategyEntry Strategy:Launch CCDs own coffee shop in Norwegian marketRaw material will export from IndiaLand will take on lease4ps:Product:Mixed taste Indian and Norwegian ccds existing product which is suitable in Norwegian market Norwegian product which is used by Friele ,coop caf and other major playermenu contains brewed coffee, espresso traditions and favourites, cold-hot beverages, coffee alternatives, frappuccinos, and the sale of whole beans

30Cont...Place :Main focus in three city : Oslo ,Bergen and Stavanger5 caf in each citya place where people can come togetherStore will placed near crowed area

Promotion :Advertising in Newspaper and Magazine The company spends very little on advertising word-of-mouth promotionSponsorship in local events

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THANK YOU! Happy new year

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