Café COFFEE DAYCafé COFFEE DAY

By:By:

Anchal GoelAnchal Goel

IntroductionIntroduction• Café Coffee Day (CCD) Café Coffee Day (CCD)

pioneered the café pioneered the café concept in India in 1996concept in India in 1996

• Initially known as Initially known as Amalgamated Bean Amalgamated Bean Coffee Trading Coffee Trading Company Ltd. (ABCTCL)Company Ltd. (ABCTCL)

• Is a Rs. 750 crore, Is a Rs. 750 crore, ISO 9002 certified ISO 9002 certified

companycompany

• It is one of India’s It is one of India’s leading coffee exporters leading coffee exporters with clients across USA, with clients across USA, Europe & Japan.Europe & Japan.

• Various divisions Various divisions are:are:

• Coffee Day Fresh n Ground Coffee Day Fresh n Ground (which owns 400 Coffee bean (which owns 400 Coffee bean and powder retail outlets)and powder retail outlets)

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

• Coffee Day Take away (which Coffee Day Take away (which owns 12000 Vending owns 12000 Vending Machines)Machines)

• Coffee Day ExportsCoffee Day Exports

• Coffee Day Perfect (FMCG Coffee Day Perfect (FMCG Packaged Coffee) division. Packaged Coffee) division.

Key featuresKey features• First Café was opened at Brigade Road , Bangalore as a as a

Cyber Café (first of its kind) but later, with the burst of Cyber Café (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency…. Coffee.cyber cafes it reverted to its core competency…. Coffee.

• Essentially a youth oriented brand with majority of its Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracketcustomers falling in the 15-29 year age bracket

• Each café, depending upon its size attracts between 100 to Each café, depending upon its size attracts between 100 to 300 customers daily.300 customers daily.

• It is a place where customers come to rejuvenate It is a place where customers come to rejuvenate themselves and be themselves. Therefore, is themselves and be themselves. Therefore, is a relaxed and fun “hangout” for the emerging urban youth

• The company operates its cafes in various formats, such as The company operates its cafes in various formats, such as music, book, highway, lounge, garden, and cyber cafes. music, book, highway, lounge, garden, and cyber cafes.

• USP of the Brand: Affordable PriceUSP of the Brand: Affordable Price

ProductsProducts

• Product Mix constitutes a Product Mix constitutes a wide range of products wide range of products that appeal primarily to that appeal primarily to Indian coffee and snack Indian coffee and snack lovers. lovers.

• To capture the Indian taste To capture the Indian taste along with classic coffee, along with classic coffee, most of the eatables have most of the eatables have been adopted to meet the been adopted to meet the Indian taste buds like Indian taste buds like samosa, biryani, masala samosa, biryani, masala sandwich, tikka sandwich sandwich, tikka sandwich etc.etc.

• Best selling item in Best selling item in summer is frappe, which is summer is frappe, which is coffee and ice cream coffee and ice cream blended together. And in blended together. And in winter its Cappuccino.winter its Cappuccino.

• Their Merchandising Their Merchandising includes Caps, T-Shirts, includes Caps, T-Shirts, Bags, mugs, coffee filters, Bags, mugs, coffee filters, Coffee Powders, Coffee Coffee Powders, Coffee Mints, Pens etc.Mints, Pens etc.

Product MixProduct Mix

Serving SizeServing Size

• The serving size of a product is a measure, not The serving size of a product is a measure, not only of quantity, but also of value for money. The only of quantity, but also of value for money. The average serving size for Café Coffee Day’s main average serving size for Café Coffee Day’s main product categories are:product categories are:

PricePrice• Café Coffee Day major customer lies in the bracket of 15-

29, So it has tried to derive a policy whereby it can satisfy all its customers.

• The price for a cup of coffee ranges from Rs.17 to Rs.54.

• The price of the deserts ranges from Rs.25 to Rs. 500.

• Café Coffee Day is focusing High Street/ Family Entertainment Centers like malls, main markets. Also in Hospitals(AIMS, Apollo), near corporate offices(TDI center), complexes, institutes etc.

• This endorses their brand image of a café that appeals to coffee lovers of all ages.

PlacPlacee

PromotionPromotion• Tied up with Tied up with Channel [V]'s Get Channel [V]'s Get

Gorgeous contestGorgeous contest. . • The reason being that a lot of their The reason being that a lot of their

young consumers are interested in young consumers are interested in careerscareers

• The 6” Below the Naval Jeans The 6” Below the Naval Jeans campaign, the Sykes Reversibles campaign, the Sykes Reversibles (Ulta Pulta) campaign, the Levi’s 501 (Ulta Pulta) campaign, the Levi’s 501 campaign, the TLTT (The Levi’s campaign, the TLTT (The Levi’s Torture Test), the ‘Hello Gorgeous’ Torture Test), the ‘Hello Gorgeous’ campaign et all are some of the campaign et all are some of the successful in café activations successful in café activations designed and executed for Levi’s.designed and executed for Levi’s.

• Movie Tie-ups like mughal-e-azam, Movie Tie-ups like mughal-e-azam, mujhse shadi karogi , Lucky, Kyu ho mujhse shadi karogi , Lucky, Kyu ho gaya na, etc..gaya na, etc..

• Provide various merchandisers, Provide various merchandisers, promotion done also through promotion done also through posters, t-shirts, offers on magazines, posters, t-shirts, offers on magazines, pamphlets, radio, SMS etc.pamphlets, radio, SMS etc.

Sales Promotion• Café Coffee Day uses special ‘Café Citizen Card’ for Café Coffee Day uses special ‘Café Citizen Card’ for

rewarding Café Coffee Day’s customers. It is a loyalty rewarding Café Coffee Day’s customers. It is a loyalty program to gain new customers and retain the existing program to gain new customers and retain the existing ones.ones.

• The Café Citizens Card entitles membersThe Café Citizens Card entitles members to a 10% discount on all food and beverage to a 10% discount on all food and beverage bills. The members also receive surprise bills. The members also receive surprise gifts, along with special offers and invitations gifts, along with special offers and invitations from Café Coffee Day from time- to- time. from Café Coffee Day from time- to- time.

• Café have owned a magazine called as ‘Café Beat’, Café have owned a magazine called as ‘Café Beat’, which is published monthly at their Bangalore head which is published monthly at their Bangalore head office and distributed throughout the branches.office and distributed throughout the branches.

ProcessProcess

• The order process at Café Coffee Day is based on The order process at Café Coffee Day is based on self-service, where the customer goes to the self-service, where the customer goes to the counter to place his order. counter to place his order.

• Whereas they have a flexible delivery process, Whereas they have a flexible delivery process, where they wait for some time for the customer where they wait for some time for the customer to pick up the order but if the customer takes too to pick up the order but if the customer takes too long then the order is delivered on his table.long then the order is delivered on his table.

• Service Recovery: Jay customers, irate customers, Service Recovery: Jay customers, irate customers, unsatisfied customersunsatisfied customers

Distribution of stock Distribution of stock

• The distribution of coffee beans start from their roasting The distribution of coffee beans start from their roasting plant at chikmagalur. plant at chikmagalur.

• The coffee beans are sent to the main offices of north and The coffee beans are sent to the main offices of north and south India on south India on monthly basis. monthly basis.

• The outlets contact the The outlets contact the Head Distributors on weekly Head Distributors on weekly basis.basis.

• As far as other eatables are concerned, the inventory is As far as other eatables are concerned, the inventory is checked on checked on daily basis daily basis and orders are placed according to and orders are placed according to the requirement. the requirement.

• Café Coffee Day uses its own store vehicle (small van) for Café Coffee Day uses its own store vehicle (small van) for transportation needs.transportation needs.

• Various deserts and products like samosa, pizza, sandwiches Various deserts and products like samosa, pizza, sandwiches etc are being bought from the different caterers like Nirula’s.etc are being bought from the different caterers like Nirula’s.

Physical EvidencePhysical Evidence

• Largely wood and granite based interiors, there is more of steel and lots more colour now.

• The young colours of today, lime green, yellow, orange, and purple predominate.

• Air-conditioned environment , Non smoking zone, Good seating space, Availability of Fire Extinguishers, First Aid box,, Highly comfort lounges etc.

LogoLogo

• LOGO colors embody:LOGO colors embody:

• Red Square= Leadership, passionRed Square= Leadership, passion

• White Swirl = Purity of purpose, invigorating properties White Swirl = Purity of purpose, invigorating properties of coffeeof coffee

• Green Stroke = 125 years of coffee growing heritage of Green Stroke = 125 years of coffee growing heritage of this vertically integrated Group this vertically integrated Group

WebsiteWebsite

• Information on the Information on the recent updates can recent updates can be archivedbe archived

• Store locator facility Store locator facility on the CCD websiteon the CCD website

• Information Information regarding the offers regarding the offers and campaigns.and campaigns.

www.cafecoffeeday.cwww.cafecoffeeday.comom

PositioningPositioning• Mostly youngsters of age 15-Mostly youngsters of age 15-29 yrs visit29 yrs visit

• Most of them are the students Most of them are the students and the professionalsand the professionals

• Approximately 200-250 Approximately 200-250 customers visit the café customers visit the café between 2 pm to 8 pm.between 2 pm to 8 pm.

• Daily visits of the customers Daily visits of the customers are less then the weekend are less then the weekend visits.visits.

• Customers describe Café Customers describe Café Coffee Day as the place they Coffee Day as the place they frequently visit most after frequently visit most after “home and “home and workplace/college”. workplace/college”.

• It is a place where they meet It is a place where they meet friends and colleagues, in friends and colleagues, in groups of 3 or more.groups of 3 or more.

Brand Image

• A place of well trained and informed staff.

• Offers the best made coffee, hot or cold, beverages and food in an invigorating ambience at affordable prices.

• It is for those who are young or young at heart.

Future developmentsFuture developments• Launch 25 café a month – Launch 25 café a month –

Never be more than 5 Never be more than 5 minutes away from a CCDminutes away from a CCD

• CCD's future plans include CCD's future plans include e-commerce initiatives e-commerce initiatives through which CCD will through which CCD will deliver non-perishable deliver non-perishable merchandise such as merchandise such as coffee brewing equipment coffee brewing equipment and coffee in bean/powder and coffee in bean/powder against orders placed against orders placed onlineonline

• Intends to have 900 cafes Intends to have 900 cafes by the end of 2008-2009 by the end of 2008-2009 and 2,500 cafes by 2012-and 2,500 cafes by 2012-2013. 2013.

• In Lounge format, CCD will In Lounge format, CCD will serve foods and beverages serve foods and beverages including meals & in highway including meals & in highway format will add breakfast format will add breakfast menu.menu.

• Company expects to tie up Company expects to tie up with more airlines over the with more airlines over the next few months. Its next few months. Its products are currently sold products are currently sold on Indigo, Go-Air and Jetlite on Indigo, Go-Air and Jetlite flights in India.flights in India.

• It is expanding its presence It is expanding its presence in Poland, Hungary, Russia, in Poland, Hungary, Russia, Dubai, Saudi Arabia, Kuwait Dubai, Saudi Arabia, Kuwait and China besides Austria and China besides Austria and Pakistan. and Pakistan.