SERVICE MARKETING PROJECT
ON
CAFÉ COFFEE DAY
By
Archana, Hardik, Sanjay, Tirthankar (SIESCOMS)
CAFÉ COFFEE DAY – Table of Index
1. CCD Introduction 02
2. 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 47
12. Partners 48
13. Conclusion 49
14. Q&A 50
15. References 51
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 exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available 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
CAFÉ COFFEE DAY – Introduction Continue…
In 2010, they clubbed all his businesses (except agriculture) under Coffee Day Resorts Holdings.
Existing investors include global PE firms KKR and Co. LP, New Silk Route Partners 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 Deutsche Bank 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
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%).
Key Target Audience
Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage.
The group comprises of mainly college going students and young working professionals
27%
66%
7%
Professionals
Students
others
Middle class and upper middle class youth
Students, House wives, executives and youngsters
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 location where some business can be generated.
To be present in educational institutions and corporate campuses
―Third Place" away from the home and college or workplace for the young 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
POSITIONING STRATEGY
POSITIONING OF DIFFERENT OUTLET
Café Coffee Day
• Coffee lovers
• Youth
• A place for Hang out
The Lounge
• Premium Cafe
The Square
• Exclusive for Coffee lover
– Changing the logo to a ‗Dialogue Box‘ - with the words Café Coffee Day, symbolizes a perfect place to ‗relax and dialogue‘
– Tagline : a lot does happen over coffee!!
New Logo
REPOSITIONING CCD
Perception Mapping
Quality of service (High Involvement)
Quality of service (Low Involvement)
High Price Low Price
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 lacks strength to maintain brand loyalty
Poor ambience and decor. (Prime space - advertising and promotions)
Wrong site selection – Losses
THREAT Competition with established and
International other coffee cafes like Barista, Starbucks, Costa Coffee, Coffee Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.
Hukka Parlours.
Competitor Analysis
CCD 54%
Barista 26%
costa coffee 14%
others 6%
Market Share
CCD 68%
Starbucks 12%
Gloria Jeans
3% Barista 17%
Share of mind
Competitors
Direct Competitors:
Barista
Cafe Mocha
Costa Coffee
Beyond Coffee
Gloria Jeans
Minerva Coffee Shop
Indirect Competitors:
McDonald
Haldirams
Global Competitors:
Star Bucks
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
7 P’s of SERVICE MARKETING
PRODUCT PRICE PLACE PROMOTION
PHYSICAL EVIDE
PEOPLE PROCESS
SERVICE PRODUCT
Core Product
Experience
Supplementary services
Wide range
Merchandising
Ambience
Delivery
Hospitality (Lounge & Square)
Price of the product
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
SERVICE FLOWER
Enhancing Services Consultation
- Assistance
Hospitality - Food & Beverage - Music - Wi-Fi - Washrooms
Safekeeping - Credit Card Security - Parking
Expectations - Happy Hours - Privilege Cards
Safekeeping
Hospitality Expectations
Consultation
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 Frappe
Chocolate and cookies
Advertising Space
Heavy Foods (in Lounges)
Fruit Shakes & Lemonades
Apparel & Accessories
Gift Cards & Vouchers
Product Mix Width
Product Line Length
SERVICE MARKETING MIX OF CAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL EVIDE
PEOPLE PROCESS
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
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
SERVICE MARKETING MIX OF CAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL EVIDE
PEOPLE PROCESS
Strategically located outlets
Kiosks in offices
Coffee machines in college canteens
Types of Stores
Café Coffee Day The Lounge The Square
PLACE
Café Coffee Day Store Coffee parlors where people can enjoy the coffee have eatables and hangout with friends
Café Coffee Day Square A unique Café where variety of single origin coffee brews from coffee-growing countries are available
Café Coffee Day Lounge Premium café from Café coffee day target selected group
SERVICE MARKETING MIX OF CAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL EVIDE
PEOPLE PROCESS
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
WITH THE FOOD: SIDE MENU CARD
Contests have been activated through leaflets/contest forms given 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
ON THE WALL
The most imposing branding option within a cafe for visual communication with minimal amount of text
Tent Cards are the chosen element in the cafes since they are all about “I am here, you cant miss me”
ON THE TABLE: STICKERS & TENT CARDS
EDITORIAL COVERAGE
SERVICE MARKETING MIX OF CAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL EVIDENCE
PEOPLE PROCESS
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
SERVICE MARKETING MIX OF CAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL EVIDE
PEOPLE PROCESS
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 COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL EVIDE
PEOPLE PROCESS
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 DELIVERY
Delivers the order
Data entry
SUP
PO
RT
PR
OC
ESS
CO
NTA
CT
PER
SON
(Ba
ck S
tag
e)
(On
Sta
ge)
CU
STO
MER
PH
YSIC
AL
EVID
ENC
E
Prepares Food / Drinks
Informs about the order 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
Furniture CCD interiors Ambience Interior design
CCD boy/girl
Menu
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 exteriors
CCD boy/girl
PROCESS AT CCD
CHARACTERISTICS OF SERVICES
Intangibility
– Experience
– Taste of Coffee
Inseparability
– Service provided
Perishability
– Availability of tables
Heterogeneity
– Ambience of different outlets
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 quality
coffee 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
FOCUS STRATEGY ANALYSIS
Service focused Café Coffee Day Premium Cafes (Lounges)
Unfocused CCD cafe outlets
Fully focused Café Coffee Day Square – an exclusive coffee bar
Market focused CCD Xpress (Kiosk)
Wide Narrow
Many
Few
Service Offerings
No
. of
Mar
ket
Serv
ed
Porters Five Forces
Industry Rivalry
(HIGH)
Threat of new entrants
(LOW)
Threat of Substitutes
(HIGH)
Supplier's Power
(LOW)
Buyer‘s Power (HIGH)
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 food and 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
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 Day quality of service, ambience, pricing and location to be very good which proves that still Café Coffee Day need to do lot of homework in order to satisfy its customers.
4. It should introduce a feedback form system in order to know about the customers satisfaction level.
PARTNERS
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.
ANY QUESTIONS
?
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
www.slideshare.com