19428188 Cafe Coffe Day

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    By:By:

    Ali Sajjad RazzaqiAli Sajjad Razzaqi

    Ambreen KausarAmbreen Kausar

    Amerah KhanAmerah KhanAmin MehndiAmin Mehndi

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    LogoLogo

    LOGOcolors embody:LOGOcolors embody:

    Red Square=Leadership, passionRed Square=Leadership, passion

    White Swirl = Purityofpurpose, invigoratingpropertiesofcoffeeWhite Swirl = Purityofpurpose, invigoratingpropertiesofcoffee

    Green Stroke = 125 yearsofcoffeegrowingheritageofthis verticallyGreen Stroke = 125 yearsofcoffeegrowingheritageofthis vertically

    integratedGroupintegratedGroup

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    IntroductionIntroduction

    CafCoffee Day (CCD)CafCoffee Day (CCD)pioneered the cafconcept inpioneered the cafconcept inIndia in 1996India in 1996

    Initiallyknown asInitiallyknown asAmalgamated Bean CoffeeAmalgamated Bean CoffeeTradingCompanyLtd.TradingCompanyLtd.(ABCTCL)(ABCTCL)

    Is a Rs. 750 crore,Is a Rs. 750 crore,

    I

    SO9002 certified companyI

    SO9002 certified company

    It isoneofIndias leadingIt isoneofIndias leadingcoffee exporters with clientscoffee exporters with clientsacross USA, Europe & Japan.across USA, Europe & Japan.

    Various divisionsVarious divisionsare:are:

    Coffee Day Fresh nGround (whichCoffee Day Fresh nGround (whichowns 400 Coffee bean and powderowns 400 Coffee bean and powder

    retailoutlets)retailoutlets)

    Coffee Day Xpress (which owns 895Coffee Day Xpress (which owns 895Coffee Day Kiosk),Coffee Day Kiosk),

    Coffee Day Take away (which ownsCoffee Day Take away (which owns

    12000 VendingMachines)12000 VendingMachines)

    Coffee Day Perfect (FMCGCoffee Day Perfect (FMCGPackaged Coffee) division.Packaged Coffee) division.

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    WebsiteWebsite

    Informationon theInformationon therecent updates can berecent updates can bearchivedarchived

    Store locatorfacilityonStore locatorfacilityonthe CCD websitethe CCD website

    Information regardingInformation regardingtheoffers andtheoffers and

    campaigns.campaigns.

    www.cafecoffeeday.comwww.cafecoffeeday.com

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    KeyfeaturesKeyfeatures

    First Cafwasopened at Brigade Road , Bangalore as a Cyber Caf(firstofas a Cyber Caf(firstof

    itskind) but later, with the burstofcyber cafes it reverted toits coreitskind) but later, with the burstofcyber cafes it reverted toits corecompetency. Coffee.competency. Coffee.

    Essentially a youth oriented brand with majorityofits customersfallinginEssentially a youth oriented brand with majorityofits customersfallinginthe 15the 15--29 year age bracket29 year age bracket

    Each caf, dependingupon its size attracts between 100 to300 customersEach caf, dependingupon its size attracts between 100 to300 customersdaily.daily.

    It is a place where customers come torejuvenate themselves and beIt is a place where customers come torejuvenate themselves and bethemselves. Therefore, isthemselves. Therefore, is a relaxed andfun hangoutfor the emergingurban youth

    The companyoperates its cafes in variousformats, such as music, book,The companyoperates its cafes in variousformats, such as music, book,highway, lounge, garden, and cyber cafes.highway, lounge, garden, and cyber cafes.

    USPofthe Brand: Affordable PriceUSPofthe Brand: Affordable Price

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    ProductsProducts

    coffees & teas

    Espresso

    Cappichino

    Solar Eclipse

    Black Tea

    coffees & teas

    Espresso

    Cappichino

    Solar Eclipse

    Black Tea

    RefreshingRefreshingalternativesalternatives

    Cold CoffeeCold Coffee

    SmoothiesSmoothies

    Chocolate ShakeChocolate ShakeCool refreshersCool refreshers

    RefreshingRefreshingalternativesalternatives

    Cold CoffeeCold Coffee

    SmoothiesSmoothies

    Chocolate ShakeChocolate ShakeCool refreshersCool refreshers

    Eatables

    MeltingMoments

    Ice creams

    Chocolate Fantasy

    Eatables

    MeltingMoments

    Ice creams

    Chocolate Fantasy

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    DistributionofstockDistributionofstock

    Chikmagalur

    Bangalore(South India

    HeadDistributor

    Local

    warehousesoutlets

    NewDelhi

    (North Indiahead

    distributor)

    Localwarehouses

    outlets

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    The distributionofcoffee beans startfrom their roastingplant atThe distributionofcoffee beans startfrom their roastingplant at

    chikmagalurchikmagalur..

    The coffee beans are sent tothe mainofficesofnorth and southThe coffee beans are sent tothe mainofficesofnorth and south

    IndiaonIndiaon monthly basis.monthly basis.

    Theoutlets contact theTheoutlets contact the Head Distributorson weeklyHead Distributorson weekly basis.basis.

    Asfar asother eatables are concerned, the inventory is checkedAsfar asother eatables are concerned, the inventory is checkedonon daily basisdaily basis andorders are placed accordingtothe requirement.andorders are placed accordingtothe requirement.

    CafCoffee Day uses itsown store vehicle (small van)forCafCoffee Day uses itsown store vehicle (small van)for

    transportation needs.transportation needs.

    Various deserts and products like samosa, pizza, sandwiches etcVarious deserts and products like samosa, pizza, sandwiches etc

    are beingboughtfrom the different caterers like Nirulas.are beingboughtfrom the different caterers like Nirulas.

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    PricePrice

    CafCoffee Day major customer lies in the bracketof15- 29, Soit hastried toderive a policy whereby it can satisfy all its customers.

    The pricefor a cupofcoffee rangesfrom Rs.48 toRs.125.

    The priceofthe deserts rangesfrom Rs.42 toRs. 175.

    CafCoffee Day isfocusingHigh Street/ Family Entertainment Centers

    like malls, main markets. Alsoin Hospitals(AIMS, Apollo), near

    corporateoffices(TDIcenter), complexes, institutes etc.

    This endorses their brand imageofa cafthat appeals tocoffee lovers

    ofall ages.

    PlacePlace

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    ServingSizeServingSize

    The servingsizeofa product is a measure, notonlyofquantity,The servingsizeofa product is a measure, notonlyofquantity,

    but alsoofvaluefor money. The average servingsizefor Cafbut alsoofvaluefor money. The average servingsizefor Caf

    Coffee Days main product categories are:Coffee Days main product categories are:

    Hot Coffee 210 ml

    Cold Coffee 350 ml

    Smoothies 350 ml

    Chocolate Shake 350 ml

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    ServiceService--HandlingHandling

    Withinfive minutesofcustomers enteringthe menu isWithinfive minutesofcustomers enteringthe menu is

    provided and theorder is served within sixprovided and theorder is served within six--seven minutes.seven minutes.

    Quality is maintained throughout but some customersQuality is maintained throughout but some customerscomplaint that coffee is not beingas it used tobeon weekdayscomplaint that coffee is not beingas it used tobeon weekdays

    especially.especially.

    Service Recovery: Jay customers, irate customers, unsatisfiedService Recovery: Jay customers, irate customers, unsatisfiedcustomerscustomers

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    PositioningPositioning

    Mostly youngstersofage 15Mostly youngstersofage 15--2929yrs visityrs visit

    Mostofthem are the studentsMostofthem are the students

    and the professionalsand the professionals

    Approximately 200Approximately 200--250250

    customers visit the cafbetweencustomers visit the cafbetween

    2 pm to8 pm.2 pm to8 pm. Daily visitsofthe customers areDaily visitsofthe customers are

    less then the weekend visits.less then the weekend visits.

    Customers describe CafCustomers describe Caf

    Coffee Day as the place theyCoffee Day as the place they

    frequently visit most afterfrequently visit most after

    home and workplace/college.home and workplace/college.

    It is a place where they meetIt is a place where they meet

    friends and colleagues, infriends and colleagues, in

    groupsof3or more.groupsof3or more.

    BrandImage

    A placeofwell trained and

    informed staff.

    Offers the best made coffee, hot

    or cold, beverages andfood in an

    invigoratingambience at affordable

    prices.

    It isfor those whoare youngor

    youngat heart.

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    Sales Promotion

    CafCoffee Day uses special CafCitizen Cardfor rewardingCafCafCoffee Day uses special CafCitizen Cardfor rewardingCafCoffee Days customers. It is a loyalty program togain new customersCoffee Days customers. It is a loyalty program togain new customersand retain the existingones.and retain the existingones.

    The CafCitizens Card entitles membersThe CafCitizens Card entitles members

    toa 10% discounton allfood and beveragetoa 10% discounton allfood and beverage

    bills. The members alsoreceive surprisebills. The members alsoreceive surprise

    gifts, alongwith specialoffers and invitationsgifts, alongwith specialoffers and invitations

    from CafCoffee Dayfrom timefrom CafCoffee Dayfrom time-- toto-- time.time.

    Cafhaveowned a magazine called as CafBeat, which is publishedCafhaveowned a magazine called as CafBeat, which is publishedmonthly at their Bangalore headoffice and distributed throughout themonthly at their Bangalore headoffice and distributed throughout thebranches.branches.

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    QUESTION 1

    Are you content with

    choosing this caf

    coffee day outlet

    instead of the other

    competitors in the

    market?

    a)Yesb) No

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    QUESTION 2

    How often do you visit

    Caf Coffee day outlet?

    a)Almost daily

    b)2-3 times a week

    c)2-3 times a month

    d)Not often

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    QUESTION 3

    What is the single

    most important factor

    for you to choose the

    caf coffee day outlet?a)taste of coffee/food

    b)people/service

    c)value for moneyd)ambience/experience

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    QUESTION 5

    Are you satisfied with

    the parking facilities

    surrounding this outlet?

    a)Yesb)No

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    QUESTION 6

    How much do you

    usually spend in the

    caf coffee day?

    a)0-40

    b)40-80

    c)80-130

    d)over 130

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    QUESTION 7

    How much time do you

    usually spend at the

    caf coffee day outlet?

    a)less than half an hour

    b)1.2 hour-1 hour

    c)1-2 hour

    d)over 2 hour

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    QUESTION 8

    How many people do

    you usually go with?

    a)alone

    b)with 1 person

    c)2-4 people

    d)>4 people

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    QUESTION 9

    How do you find the

    coffee and other

    eatables in the caf

    coffee day outlet?a)very good

    b)satisfactory

    c)below averaged)excellent

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    QUESTION 10

    How do you find the

    ambience along with

    the service at the caf

    coffee day outlet?a)very good

    b)satisfactory

    c)below averaged)excellent

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    SUGGESTIONSSUGGESTIONS

    o They need to follow an aggressive policy to

    lure customer as their margin is falling.

    o Should introduce some schemes.o Should ask customers their suggestions

    regularly.

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    Future developmentsFuture developments

    Launch 25 cafa monthLaunch 25 cafa month Never be more than 5Never be more than 5

    minutes awayfrom a CCDminutes awayfrom a CCD

    CCD'sfuture plans include eCCD'sfuture plans include e--

    commerce initiatives throughcommerce initiatives throughwhich CCD will deliver nonwhich CCD will deliver non--

    perishable merchandise suchperishable merchandise such

    as coffee brewingequipmentas coffee brewingequipment

    and coffee in bean/powderand coffee in bean/powder

    againstorders placedonlineagainstorders placedonline

    Intends tohave 900 cafes byIntends tohave 900 cafes by

    the endof2008the endof2008--2009 and2009 and

    2,500 cafes by 20122,500 cafes by 2012--2013.2013.

    InLoungeformat, CCD will serveInLoungeformat, CCD will servefoods and beverages includingfoods and beverages including

    meals & in highwayformat will addmeals & in highwayformat will add

    breakfast menu.breakfast menu.

    Company expects totie up withCompany expects totie up withmore airlinesover the nextfewmore airlinesover the nextfew

    months. Its products are currentlymonths. Its products are currently

    soldonIndigo, GosoldonIndigo, Go--Air andAir and JetliteJetlite

    flights inIndia.flights inIndia.

    It is expandingits presence inIt is expandingits presence in

    Poland, Hungary, Russia, Dubai,Poland, Hungary, Russia, Dubai,

    Saudi Arabia, Kuwait and ChinaSaudi Arabia, Kuwait and China

    besides Austria and Pakistan.besides Austria and Pakistan.

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