Cafe Coffee Day Cb Group 5

7/25/2019 Cafe Coffee Day Cb Group 5

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KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT

STUDIES

An assignment report on consumere!a"ior

Sumitte# $%

&ari!ar

Shreel dwivedi (49)

Rounak kumar (45)

Swaroop bv (54)

'une

Ipshita shukla



CAF( COFFEE DA)

O"er"ie*Cofee has been around in India since the 1th

centur!" Ca#$ cofee da! pioneered the ca#$

concept in 199% with its &rst outlet inau'uration in

an'alore" It was one o# its kinds as it was initiall!

opened as a c!ber ca#$ but later with a burst o#

c!ber ca#$ in India it went back to its corecompetenc! *C+,,--." CC/ saw the potential o#

the !outh market and embarked on a d!namic

0ourne! to become the lar'est or'anied retail ca#$

chain with a brand identit! o# its own"

CC/ is a part o# India.s lar'est con'lomerate

amal'amated been cofee tradin' compan! 2td(3CC2) the &rst to come out with an idea o#

*cofee bar. in India" 3s o# arch 6715 there are

about 1555 outlets o# CC/ across 69 states o#

India" Ca#e Cofee /a! has also e8panded outside



India with its outlets in 3ustria (ienna) Cech

Republic /ubai ala!sia : Cairo -'!pt" CC/

'rows cofee in its own estates with 3sia.s second

lar'est network o# cofee estates o# 1677 acres";ot onl! this CC/ is also the onl! verticall!

inte'rated cofee compan! in India with its ca#$.s

#unctionin' in ever! nook and corner o# the

countr!"

In +ctober 6779 CC/ unveiled a new lo'o a

dialo'ue bo8 to weave the concept o# *power o#dialo'ue." <ith a new brand identit! CC/ planned

to 'ive a new look to all o# its outlets b! the end o#

6779" ;o doubt that the compan! was 'oin' well

alon' with its mission that is *to be the best ca#$

chain b! oferin' a world class cofee e8perience at

afordable prices ." It is a !outh oriented brand withma0orit! o# its customers between the a'e 'roup o#

15=69" /ependin' on the sie each ca#$ attracts

between 477 to >77 customers dail!" CC/ is a

place where customers come to re0uvenate

themselves and be themselves"

Astract



Ca#$ Cofee /a! has 1555 outlets across India" It

has mapped 57 ca#$s in en'aluru to deliver

orders within a ?=4km radius" Customers will be

able to place an order #rom a ca#$ that #alls withintheir deliver! radius throu'h the Swi''! app and

will e8tended in other cities too"

;a'ara0 sa!s that the CC/ brand has evolved and

matured over the !ears with premium concepts

such as 2oun'e and S@uare" She sa!s Ahe 2oun'e

and S@uare the! are like toppin's on the cake"Athe econom! 'rows and people can aford to pa! a

premium #or their cup o# 0ava"

Ca#$ Cofee /a! alread! en0o!s a lo!al base o#

bevera'e and ca#$ #ood lovers" <ith this move we

plan to create a ?%7 de'ree interaction with our

customers stren'thenin' CC/.s #oothold in the#ood space as well said idisha ;a'ara0 'roup

president marketin' Cofee /a!"

Customers are demandin' a diferentiated #ood

e8perience" he ca#$ chain is also in plan to launch

multi cuisine culinar! e8perience alon' with cofees

and bevera'es in the home deliver! sect" he CC/#ood menu will be lon' and diverse in kind"



he home deliver! strin' o# CC/ has also kept in

choice bulk orders #or corporate meetin's or small

'atherin's"

Facts an# Figures

-ach CC/ avera'es dail! #ood and bevera'es sales

o# about Rs 1196 (B1>4)" In comparison a

competitor like Starbucks makes over &ve timesthat amount accordin' to retail consultanc! &rm

echno ark" Dowever CC/ has man! more outlets

than StarbucksEthe 3merican cofee compan! had

%4 ca#$s in India as o# /ec" 6714Eand cheaper

oferin's"

In 6714 CC/.s same store sales 'rowthEthepercenta'e chan'e in sales over the previous !ear

Estood at a health! 9"1?F accordin' to the dra#t

red herrin' prospectus &led b! the compan! with



market re'ulator Securities and -8chan'e oard o#

India"

oda! the compan! owns and mana'es a network

o# 1557 ca#$s in 679 cities" It has the lar'est

network o# #ood outlets in the countr!" International

#ast=#ood chains such as c/onald.s (?77=?57)

/ominos (961) and Subwa! (5?1) trail CC/.s store

count" Ca#e Cofee /a! will invest up to I;R 4"5

billion over the ne8t three !ears to open 477

outlets in the countr!"

ore #actsG

1"3ll=/a! Re#resher most sellin' product o#

C"C"/" whose sellin' cost is Rs" 177 has a

prime cost o# 0ust Rs" ?5 : rest all is pro&t to

C"C"/"6"C"C"/" does not use su'ar as raw material in

an! o# its preparations but uses milk cream :

Su'ar ,ree as raw material"

?"Ice=creams : other eatables are out=sourced

#rom 3mul : local vendors o# reputed brands"

oda! the cofee chain market is more than Rs"

1777 crore and is 'rowin' at almost ?7 per cent

each !ear" he market is dominated b! a #ew



brands with CC/ the lar'est in terms o# turnover

and the number o# outlets in India #ollowed b!

arista H a distant second" +ther pla!ers are Costa

Cofee ocha Cofee ean : ea 2ea# and loria Jean.s" Currentl! India has about 1>77 cofee

outlets or ca#es and business sources claim India

can accommodate another 677 ca#es"

Cofee /a! -nterprises is the lar'est I+ on the

#ood services side" Shares set apart #or institutional

investors were subscribed 4"?> times in the three=da! initial public oferin' while the retail and non=

institutional investor cate'ories were subscribed

97F and 5?F respectivel!" he portion reserved

#or emplo!ees was subscribed >4F" CC/ was one

o# the lar'est issues in recent past and saw almost

twice the subscription" hat sends a stron' si'nalthat a compan! with a 'ood track record can sell in

the market"

Ana+$sis

he cofee market in India has been 'rowin' due to

the demand #or read! to drink cofee and has

become a part o# an individual.s dail! consumption

basket" Ca#$ cofee da! is a chain o# cofee outlets



run b! cofee da! 'lobal 2td <hich is a subsidiar!

o# cofee da! enterprise 2td (C/-2)" resentl! CC/

operates in around 1577 outlets across 679 cities

and has 1% international outlets across ala!sia3ustria and the Cech Republic" 3s on arch

6715 CC/ market has dominated the Indian

chained cofee outlets with 4%F share market

share" 3part #rom cofee the compan! also

operates in technolo'! parks lo'istics &nancial

services and hospitalit!" In 671? CC/ wasbestowed with the presti'ious IS+ 66777G6775

certi&cation b! the internationall! acclaimed /;

usiness 3ssurance ,ood Sa#et! S!stem #or its

,ood Sa#et! mana'ement s!stems in ca#es" his

certi&cate covers the mandate o# handlin'

preparin' and servin' #ood and bevera'es in the

Ca#$ Cofee /a! (CC/) ca#es Cofee /a! 2oun'e

ca#es (C/2) Cofee /a! S@uare ca#es and ,resh

3ssembl! Centre.s (,3Cs wherein ca#$ #ood is

assembled be#ore sendin' them out to ca#es

across)"

Competitors

Direct Competitors

• arista



• Ca#$ mocha

• Costa cofee

• e!ond cofee

• loria Jeans• inerva cofee shop"

In#irect Competitor

• cdonald

• Daldiram.s

G+oa+ Competitors

• Star bucks"

Its #i,erent #i"isions inc+u#e%

KCofee /a! ,resh n round (?54 Cofee bean andpowder retail outlets)KCofee /a! Lpress (?41 Cofee /a! Miosk)KCofee /a! ake awa! (777 endin' achines)KCofee /a! -8portsKCa#$ Cofee /a!KCofee /a! er#ect (,C acka'ed Cofee)

division"

'RODUCT%



Ca#$ Cofee /a! product mi8 constitutes a wideran'e o# products like samosa bir!ani masalasandwich tikka sandwich etc" he best=sellin' item

in summer is #rappe which is cofee and ice creamblended to'ether" he !oun' people #avor it" Inwinter it is cappuccino" heir merchandisin'includes #unk! stuf like t=shirts caps etc"

'RODUCT SERVING SI-EDot Cofee 617 mlCold Cofee ?57 mlSmoothies ?57 mlranites ?57 ml

'RICE%

Considerin' that Ca#$ Cofee /a! knows its ma0orcustomer lies in the bracket o# 15=69 it has tried to

derive a polic! whereb! it can satis#! all itscustomers" he price #or a cup o# cofee ran'es#rom Rs"45 to Rs >7" ,rom the time it &rst startedits operations there has been onl! minor chan'esin the pricin' polic! o# Ca#$ Cofee /a!" hechan'es have been more due to the 'overnmentta8es than an!thin' else"

Segmentation

Current mar.et situation



• 3vera'e ,oot#allsG 477 to >77 per ca#$ per da!"

• rowin' !oun' population and promotion o#

cofee culture"

Regiona+ Distriution%

• ar'etin' e8pansion in smaller towns

• ;ew ca#$ #ormats in metros H 2oun'e S@uare

Demograp!ic

a0or chunk o# CC/ customers #alls within the a'e

'roup o# /0 to 10 which accounts #or 234 o# the

overall percenta'e"

Income 5asis%

iddle class

Di'h class

Artic+e ana+$sis o6 ca67 co,ee #a$

<ith its vast network o# ca#es CC/ is aimin' to

ofer an order=in option #or not onl! bevera'es but



also a multi=cuisine e8perience with a ran'e o#

ca#$=oriented and meal=oriented oferin's at

consumers. doorsteps" It has tied up with online

#ood deliver! startup Swi''! #or the initiative"Competitors like Starbucks = as also a host o#

smaller snackin' bevera'e and dessert ventures

includin' Corner Douse Juice Junction asudev

3di'as and oli ada av = alread! ofer home and

oNce deliver!" ut the scale at which Ca#e Cofee

/a! can do it would probabl! dwar# ever!bod!'iven that it has 1555 ca#es across 619 cities"

,or now the initiative is restricted to en'aluru

where it has desi'nated 57 ca#es #rom where

Swi''! will pick up the orders" Customers need to

place their orders throu'h the Swi''! application"

Ca6e Co,ee Da$ to e8ten# !ome #e+i"er$ toMumai an# De+!i

Ca#e Cofee /a! will e8tend its home deliver!

business model to umbai and /elhi over ne8tthree to #our months which will include lunch and

dinner options in its retail ca#e menu"



he en'aluru=based ca#e chain had run a pilot in

the cit! earlier this month #or which it tied up with

h!per=local restaurant deliver! compan! Swi''! to

ofer customers deliver! option #or a speciall!curated #ood and bevera'e menu"

he consumer has little time and wants the same

kind o# ,: e8perience and product mi8 at their

doorstep there#ore deliver! is the ri'ht thin' to do"

,or home deliver! CC/ plans to rope in third=part!

lo'istics pla!ers" A3s we move to other cities we

will look at other partners in addition to Swi''!A

;a'ara0 said" A3t present it is clockin' in around

677 deliveries a da! with an avera'e ticket sie o#

Rs ?57 per order" In 671% the compan! will #ocuson #ood in a bi' wa! with additions o# lunch and

dinner options to its retail ca#e menu" 671% will be

about #ood #or CC/ at a hi'h level it will be

lookin' at introducin' more items" ,rom a

consumption standpoint #ra'mentation o# meals

has 'one down as consumers want ever!thin' in

the same place"



CC/ will also look to add popular sellin' items #rom

its deliver! menu to its ca#es and has alread!

introduced a #ew" he chain has 1555 ca#es in 619

cities across #ormats" It plans to open 1?5 ca#es in671%"

Conc+usion

In this era o# hard core competition people have

real less time to han' out as the! used to do in the

past" hese people are more en'a'ed in their work

as compared to the past and with the ever

increasin' competition in the market one can

assume the hi'h stress level o# this workin' class"

hese people still need that re#reshment abilit! o#

cofee so wh! not deliver it to them at their

workplace so that the stress release and work

could 'o hand in hand"

oreover the trends are chan'in' workin'

conditions it has become more time consumin'

and hectic as a result the leisure time o# the

people have reduced there#ore people 'enerall!

workin' in class se'ment 'et lesser time #or

themselves" In such a situation i# one is 'ettin'



hisOher #avourite cofee delivered at their door

steps it is surel! 'oin' to 'et a 'ood market share"

Cafe Coffee Day Cb Group 5

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