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SERVICE MARKETING
PROJECTON
CAFÉ COFFEE DAY
By
Archana, Hardik, Sanjay, Tirthankar(SIESCOMS)
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CAFÉ COFFEE DAY – Table of Index
1. CCD Introduction 022. STPD (Segmentation, Targeting, Positioning, Differentiation) 07
3. Perception Mapping 10
4. SWOT Analysis 11
5. Competitors Analysis 12
6. PESTEL (Political, Economic, Social, Technological,
Legal, Environmental) 14
7. 7 PCs P’s Service Marketing 15
8. Strategies (Distribution, Positioning and Focus 43
9. Porters Five Forces 45
10. SPANCO (Tangible / Intangible) 46
11. Recommendations 4712. Partners 48
13. Conclusion 49
14. Q&A 50
15. References 51
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CAFÉ COFFEE DAY - Introduction
Founded in 1996 India's largest coffee conglomerate, Amalgamated Bean Coffee Trading
Company Ltd
Strives to provide the best experience to their guests
Pioneer of the café culture and the first to launch the ‗coffee bar‘ concept in
India Network strength: 1450+ cafés in 172 cities/towns across India and growing
First to roll out the ‗coffee bar‘ concept in India with its first café in Bangalore.
Outlets set up are based on the three formats -- cafe, lounge and square.
Menu ranges from signature hot and cold coffees to several exotic
international coffees, tea, food, desserts and pastries and excitingmerchandise such as coffee powders, cookies, mugs, coffee filters, etc. isavailable at the cafés
CCD is present in every nook and corner of the country which includes Vienna, Austria and Karachi and plans to open across Middle East, Eastern Europe,Eurasia, Egypt and South East Asia in the near future
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CAFÉ COFFEE DAY – Introduction Continue…
In 2010, they clubbed all his businesses (except agriculture) under CoffeeDay Resorts Holdings.
Existing investors include global PE firms KKR and Co. LP, New Silk RoutePartners LLC and Standard Chartered Private Equity have 25% stake
Darby Overseas Investments Ltd —the private equity arm of Franklin
Templeton Investments, International Finance Corporation and DeutscheBank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd
CCD’s SBU
– Coffee Day Fresh 'n' Ground
– Coffee Day Xpress
– Coffee Day Take away – Coffee Day Exports
– Coffee Day Perfect
– (FMCG Packaged Coffee) division
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WHY CAFÉ COFFEE DAY
Average Footfalls: 300 per café per day Average dwell time at café: 45 minutes
Meeting place for 15-45 year olds
A place where :
Students frequently visit most after ―home and workplace/college‖
Friends and colleagues meet n groups of 3 or more
One rejuvenates and are free to be themselves rather than a place to
be ―seen at‖
The café is also the venue for business meetings (23% ), celebrating special
occasions (20%) or just plain ―Time Pass‖ (57%).
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Key Target Audience
Major chunk of CCD customers falls within theage group of 20 to 30 which accounts for57% of the overall percentage.
The group comprises of mainly college goingstudents and young working professionals
27%
66%
7%
Professionals
Students
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Middle class and upper middle classyouth
Students, House wives, executives andyoungsters
People who value a great cup of coffee
CCD seeks to target not just the youth
but anyone who is ―young at heart‖.
1481 outlets in 200 cities Strong and Stable Parentage
Right Locations
Place a cafe in every possible locationwhere some business can be generated.
To be present in educational institutionsand corporate campuses
―Third Place" away from the homeand college or workplace for theyoung and the young at heart.
Coffee Bar
Fun Place
Home and Workplace
Medium Price Brand
Café Coffee Day has its main consumer
base in the age group of 16-30 years.
TARGETING
POSITIONING DIFFERENTIATION
SEGMENTATION
S-T-P-D
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POSITIONING STRATEGY
POSITIONING OF DIFFERENT OUTLET
Café CoffeeDay
• Coffee lovers
• Youth• A place for
Hang out
The Lounge
• Premium
Cafe
The Square
• Exclusive for
Coffee lover
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– Changing the logo to a ‗Dialogue Box‘ - with the words Café CoffeeDay, symbolizes a perfect place to ‗relax and dialogue‘
– Tagline : a lot does happen over coffee!!
New Logo
REPOSITIONING CCD
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Perception Mapping
Quality of service (High Involvement)
Quality of service (Low Involvement)
High Price Low Price
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SWOT Analysis
SWOT
OPPORTUNITY
Fastest growing industries in Asia. Preferred for informal meetings. Gone international
STRENGTHS
Largest retail chain of cafes ISO 9002 certified company Quality and taste Youth oriented brand Reduction in cost (Own Production) USP of brand - Highly affordable brand
WEAKNESS
Weak brand image and lacksstrength to maintain brand loyalty
Poor ambience and decor. (Primespace - advertising andpromotions)
Wrong site selection – Losses
THREAT
Competition with established andInternational other coffee cafes likeBarista, Starbucks, Costa Coffee,Coffee Mochas, Gloria Jeans, CoffeeBean & Tea Leaf and Illy Café.
Hukka Parlours.
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Competitor Analysis
CCD
54%
Barista
26%
costa
coffee
14%
others
6%Market Share
CCD
68%
Starbucks
12%
Gloria
Jeans3% Barista
17%
Share of mind
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Competitors
Direct Competitors:
Barista
Cafe Mocha
Costa Coffee
Beyond Coffee
Gloria Jeans
Minerva Coffee Shop
Indirect Competitors:
McDonald
Haldirams
Global Competitors:
Star Bucks
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Easy sourcing of coffee beans
Cost control because of Govt regulations
Political
Economic
Social
Technological
Legal
Heavy coffee drinks in South India
Cheaper sourcing maintain quality
Targets youth and middle class
Affordable for a meeting place
Wifi facility at every outlets and music
Digital Marketing for promotions
Environmental
PESTAL
Use Bio degradable products
Ethical and based on customer delight
Less consumer complaints and quick
customer service
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7 P’s of SERVICE MARKETING
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDE PEOPLE PROCESS
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SERVICE PRODUCT
Core Product
Experience
Supplementary services
Wide range
Merchandising
Ambience
Delivery Hospitality (Lounge & Square)
Price of the product
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SERVICE FLOWER
Facilitating Services
Information- Menu- Website
Payment- Credit Card- Cash- Privilege Card
Billing - at the counter
Order Taking- Assisted by the
attendee
Information Payment
Billing Order –taking
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SERVICE FLOWER
Enhancing Services Consultation
- Assistance
Hospitality
- Food & Beverage
- Music
- Wi-Fi
- Washrooms
Safekeeping
- Credit Card Security- Parking
Expectations
- Happy Hours
- Privilege CardsSafekeeping
HospitalityExpectations
Consultation
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PRODUCT PORTFOLIO
Food and Beverage Non Food Items B2B
Food Beverage
Deserts Coffee
Coffee Powder Bulk/ Corporate
Orders
Snacks Tea
Coffee Machine Catering
Services
Cakes Chocolate Shakes
Cups & Mugs Coffee Vending
Machines
Sundaes FrappeChocolate and
cookiesAdvertising
Space
Heavy Foods
(in Lounges)
Fruit Shakes &
Lemonades
Apparel &
Accessories
Gift Cards &
Vouchers
Product Mix Width
ProductLine Length
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SERVICE MARKETING MIX OFCAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDE PEOPLE PROCESS
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PRICING STRATEGY
PSYCHOLOGY PRICING
– Pricing the product as Rs 69, 79, 59 etc. rather
than in the multiples of ten to give a feel that
the product less priced
LOCATION PRICING: On the basis of outlets, prices
have been positioned
• Café
• Lounge
• Square
COMBO PRICING
– Clubbing up two or more products on special
occasions
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PRICING STRATEGY
PREMIUMS PRICING
– Adding things like cream, chocolate sauce
and positioning as a premium coffees
VALUE BASED PRICING
– Providing different variants in terms of
prices by altering the quantity to give a
sense of affordability
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SERVICE MARKETING MIX OFCAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDE PEOPLE PROCESS
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Strategically located outlets
Kiosks in offices
Coffee machines in college canteens
Types of Stores
Café Coffee Day The Lounge The Square
PLACE
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Café Coffee Day StoreCoffee parlors where people can
enjoy the coffee have eatables andhangout with friends
Café Coffee Day SquareA unique Café where variety of single
origin coffee brews from coffee-
growing countries are available
Café Coffee Day LoungePremium café from Café coffee
day target selected group
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SERVICE MARKETING MIX OFCAFÉ COFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDE PEOPLE PROCESS
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Started TVC and Print campaign at the end of 2012
Co Branding in Movie and TV serials
Sales Promotion Activities
– Combo Deal
– Happy Hours
– Privilege cards
– Redeemable coupons
Through Interactive Media
Held Contest around a Very Popular Programme
Tie up lot of youth brands
PROMOTION
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WITH THE FOOD: SIDE MENU CARD
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Contests have been activated through leaflets/contest formsgiven out with the menu-card /bill folders
Drop boxes, which also add to prominent visibility, are used to
collect all entries to the contest
CONTESTS @ CAFES
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ON THE WALL
The most imposing branding option within a cafe for visual communicationwith minimal amount of text
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Tent Cards are the chosen element in the cafessince they are all about “I am here, you cant
miss me”
ON THE TABLE: STICKERS & TENT CARDS
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EDITORIAL COVERAGE
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SERVICE MARKETING MIX OF CAFÉCOFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDENCEPEOPLE PROCESS
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PHYSICAL EVIDENCE
Ambience
– Different ambience the look and feel
for different outlets
Shop Colour
– Violet for Café coffee day shops
– Sea green for Lounge
– Brown for Square
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SERVICE MARKETING MIX OF CAFÉCOFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDE PEOPLE PROCESS
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PEOPLE
Dressed in a particular uniform
Soft spoken, friendly behaviour
Customer Engagement Activities
– Special Offers on Occasions
(Birthday, Valentine day, Friendship day
etc.)
– Online Contests – Happy Hours
SERVICE MARKETING MIX OF CAFÉ
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SERVICE MARKETING MIX OF CAFÉCOFFEE DAY
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDE
PEOPLE PROCESS
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PROCESS
People Processing Services
Minimum Response Time
Complaints and feedback
Assisted by the attendee or the brew master in Lounge and Square
Self Service Counter for Café Coffee Day outlets in Offices / few Malls.
Ordering and delivery earlier was self service and now most of the
coffee shops have waiters to take order and deliver at the table
BLUEPRINT FOR SERVICE
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BLUEPRINT FOR SERVICEDELIVERY
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Delivers
the order
Data entry
S U P P O R T P R O C E S S
C O N T A C T P E R S O N
( B a c k S
t a g e )
( O n S t a g e )
C U S T O M E R
P H Y S I C
A L
E V I D E N C E
Prepares
Food / Drinks
Informs about theorder placed
Customer
Arrives at
CCD
Customer
walks -in
Line of interaction
Line of visibility
Line of internal interaction
CCD
exteriors
Views
Menu card
Goes to the
table
FurnitureCCD interiorsAmbience
Interior design
CCD boy/girlMenu
Places
order
Sits
Chats
Waits
Makes the
payment
Leaves
Requests
for bill
Greeted by
CCD boy/girl
Takes order
Order
received
Eats
Receives Food/Drink
Accepts
request
Hands over
the bill to
the customer
Bill
generated
Billing system
Processes bill
Delivery
Tray
Food & drinks
Exit way
CCD exteriorsCCD boy/girl
PROCESS AT CCD
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CHARACTERISTICS OF SERVICES
Intangibility – Experience
– Taste of Coffee
Inseparability – Service provided
Perishability
– Availability of tables
Heterogeneity
– Ambience of different outlets
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Easy accessibility There is a Cafe Coffee Day outlet in every major city in India and are
easily accessible.
Rural area locations
Customers in the smaller communities also enjoy good qualitycoffee and snacks at affordable costs because the Cafe has set up
outlets in the rural areas in India.
Distributors
The coffee produced on the Cafe’s farms, are distributed through
wholesalers and retailers to customers who wish to use the coffee
at home.
DISTRIBUTION CHANNEL STRATEGY
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FOCUS STRATEGY ANALYSIS
Service focused
Café Coffee Day Premium
Cafes (Lounges)
UnfocusedCCD cafe outlets
Fully focused
Café Coffee Day Square –
an exclusive coffee bar
Market focused
CCD Xpress (Kiosk)
WideNarrow
Many
Few
Service Offerings
N o .
o f M a r k e t S e r v e d
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Porters Five Forces
IndustryRivalry
(HIGH)
Threat ofnew entrants
(LOW)
Threat ofSubstitutes
(HIGH)
Supplier'sPower
(LOW)
Buyer‘sPower(HIGH)
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SPANCO - Tangible / Intangible (CCD)
S - Suspect / Security – All Customer who wants to eat snacks Or have a peaceful
Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy foodand drinks.
P - Prospect / Profit – All college /school going Students, Kitty goings groups and
business customers. Same price as other notable brand Better taste and crispness
Value for Money
A - Approach / Analysis -Analysis Research and customer focused studies on what
Indian customers looking for hot and cold drinks in peaceful good environment.
Wished to taste new & innovative products Unique freshness flavour
N - Negotiation / Number Strategy - Change the product Unique Selling
Proposition Offer reasonably good prices quality product and services. Coffee /
tea variants High price & high volume Other Varieties (cold drinks and snacks) Low
price & high volume
C - Closing / Core need – Offer good services and quality product. Clear cut
differentiated product Existing network of distribution
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Recommendations
1. To improve the interiors and décor.
2. To have more and more tie-ups.
3. Only 50 % or less than 50 % people find Café Coffee Dayquality of service, ambience, pricing and location to be verygood which proves that still Café Coffee Day need to do lot ofhomework in order to satisfy its customers.
4. It should introduce a feedback form system in order to knowabout the customers satisfaction level.
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PARTNERS
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Conclusion
1. C.C.D. is the fastest growing Café in the country.
2. The major competitor undoubtedly Barista.
3. That Café Coffee day is planning to go international.
4. The other major things regarding service marketing is that customers give
top priority to the quality of the services / products and ambience.
5. It is providing tough competition to its competitors by satisfying its
customers with great café experience.
6. ― A lot can happen over coffee ‖ message has touched the hearts of
youngsters who are the largest consumers of C.C.D.
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ANY QUESTIONS
?
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References
Personal experiences
http://www.casestudyinc.com/coffee-day-brand-strategy-india
http://www.pr-inside.com/india-food-and-drink-report-q-
r2164244.htm
http://en.wikipedia.org/wiki/Marketing
http://www.cafecoffeeday.com/
http://www.barista.co.in/users/index.aspx
www.slideshare.com
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