Marketing strategy of 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

INTRODUCTION CONTD…

• 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 59% of the overall percentage.

• The group comprises of mainly college going students and young working professionals

Above 30Above 1916-1920-2425-30

SALES

COMPETITORS

• Barista• Costa Coffee • Beyond Coffee • Gloria Jeans • Minerva Coffee Shop

COMPETITORS

• Indirect Competitors: McDonald Haldirams

• Global Competitors: Star Bucks

SWOT ANALYSIS

COMPETITOR ANALYSIS

FACTORS

• PoliticalEasy sourcing of coffee beans Cost control because of Govt regulations

• EconomicHeavy coffee drinks in South India Cheaper sourcing maintain quality

• SocialTargets youth and middle class Affordable for a meeting place

FACTORS

• TechnologicalWi-Fi facility at every outlets and music Digital Marketing for promotions

• Environmental Use Bio degradable products 

• LegalEthical and based on customer delight Less consumer complaints and quick customer service

THE MARKETING MIX

• PRODUCTConsumer needs

• PLACEAvailability

• PRICERepresenting good value

• PROMOTIONAdvertising

4P’S OF MARKETING

PRODUCT

• Core Product Experience

• Supplementary services Wide range Merchandising Ambience

• Delivery Hospitality (Lounge & Square)

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

PLACE

• Strategically located outlets • Kiosks in offices• Coffee machines in college canteens

Café Coffee Day Store Coffee parlors where people can enjoy the coffee have eatables and hangout with friends

Café Coffee Day Lounge Premium café from Café coffee day target selected group

Café Coffee Day Square A unique Café where variety of single origin coffee brews from coffeegrowing countries are available

PROMOTION• 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

DISTRIBUTION STRATEGY

• Easy accessibility There is a Cafe Coffee Day outlet in every major city in India and are easily accessible.

• Town 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 towns of 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.

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.

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.

REFERENCES

• Personal experience.• http://www.casestudyinc.com/coffee-day-brand-strategy-

india • http://www.pr-inside.com/india-food-and-drink-report-

qr2164244.htm • http://en.wikipedia.org/wiki/Marketing • http://www.cafecoffeeday.com/ • http://www.barista.co.in/users/index.aspx