SERVICE MARKETING PROJECT ON CAF COFFEE DAY By Archana, Hardik, Sanjay, Tirthankar (SIESCOMS) CAF COFFEE DAY Table of Index 1. CCD Introduction 02 2. STPD (Segmentation, Targeting, Positioning, Differentiation)07 3. Perception Mapping10 4. SWOT Analysis 11 5. Competitors Analysis12 6. PESTEL (Political, Economic, Social, Technological,Legal, Environmental)14 7. 7 PCs Ps Service Marketing 15 8. Strategies (Distribution, Positioning and Focus43 9. Porters Five Forces45 10. SPANCO (Tangible / Intangible)46 11. Recommendations 47 12. Partners 48 13. Conclusion49 14. Q&A 50 15. References 51 CAF COFFEE DAY - Introduction Founded in 1996 India'slargestcoffeeconglomerate,AmalgamatedBeanCoffeeTrading Company Ltd Strives to provide the best experience to their guests Pioneer of the caf culture and the first to launch the coffee bar concept in India Network strength: 1450+ cafs in 172 cities/towns across India and growing First to roll out the coffee bar concept in India with its first caf 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 cafs 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 CAF COFFEE DAY Introduction Continue In 2010, they clubbed all his businesses (except agriculture) under Coffee Day Resorts Holdings. Existing investors include global PE firms KKR and Co. LP, New Silk Route Partners LLC and Standard Chartered Private Equity have 25% stake Darby Overseas Investments Ltdthe private equity arm of Franklin Templeton Investments, International Finance Corporation and Deutsche Bank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd CCDs SBU Coffee Day Fresh 'n' Ground Coffee Day Xpress Coffee Day Take away Coffee Day Exports Coffee Day Perfect (FMCG Packaged Coffee) division WHY CAF COFFEE DAY Average Footfalls: 300 per caf per day Averagedwell time at caf: 45 minutes Meeting place for 15-45 year olds A place where : Students frequentlyvisit 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 caf is also the venue for businessmeetings (23% ), celebrating specialoccasions (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 57% of the overall percentage. The group comprises of mainly college going students and young working professionals 27% 66% 7% ProfessionalsStudentsothers Middle class and upper middle class youth Students, House wives, executives andyoungsters People who value a great cup of coffee CCD seeks to target not just the youth butanyone who is young at heart. 1481 outlets in 200 cities Strong and Stable Parentage Right Locations Place a cafe in every possible location where some business can be generated. To be present in educational institutions and corporate campuses Third Place" away from the home and college or workplace forthe young and the young at heart. Coffee Bar Fun Place Home and Workplace Medium Price Brand Caf Coffee Day has its main consumer base in the age group of 16-30 years. TARGETING POSITIONINGDIFFERENTIATION SEGMENTATION S-T-P-D POSITIONING STRATEGYPOSITIONING OF DIFFERENT OUTLET Caf Coffee Day Coffee lovers Youth A place for Hang out The Lounge Premium Cafe The Square Exclusive for Coffee lover Changing the logoto a Dialogue Box - with the words Caf Coffee Day, symbolizesa perfect place to relax and dialogue Tagline : a lot does happen over coffee!! New Logo REPOSITIONING CCD Perception MappingQuality of service (High Involvement) Quality of service (Low Involvement) High Price Low Price 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 brandReduction in cost (Own Production) USP of brand - Highly affordable brand WEAKNESS Weakbrandimageandlacks strength to maintain brand loyalty Poorambienceanddecor.(Prime space-advertisingand promotions) Wrong site selection Losses THREAT Competitionwithestablishedand Internationalothercoffeecafeslike Barista,Starbucks,CostaCoffee, CoffeeMochas,GloriaJeans,Coffee Bean & Tea Leaf and Illy Caf. Hukka Parlours. Competitor Analysis CCD 54% Barista 26% costa coffee 14% others 6% Market Share CCD 68% Starbucks 12% Gloria Jeans 3% Barista 17% Share of mind Competitors Direct Competitors: Barista Cafe Mocha Costa Coffee Beyond Coffee Gloria Jeans Minerva Coffee Shop Indirect Competitors: McDonald Haldirams Global Competitors: Star Bucks Easy sourcing of coffee beans Cost control because of Govt regulations Political EconomicSocialTechnological 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 musicDigital Marketing for promotions Environmental PESTAL UseBio degradable productsEthical and based on customer delight Less consumer complaints and quick customer service 7 Ps ofSERVICE MARKETING PRODUCTPRICEPLACEPROMOTION PHYSICAL EVIDE PEOPLEPROCESS SERVICE PRODUCT Core Product Experience Supplementary services Wide range Merchandising Ambience Delivery Hospitality (Lounge & Square) Price of the product 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 takingSERVICE FLOWER Enhancing Services Consultation- Assistance Hospitality - Food & Beverage - Music- Wi-Fi - Washrooms Safekeeping - Credit Card Security - Parking Expectations - Happy Hours - Privilege CardsSafekeeping Hospitality Expectations Consultation PRODUCT PORTFOLIO

Food and BeverageNon Food ItemsB2B FoodBeverage Deserts Coffee Coffee Powder Bulk/ Corporate Orders Snacks Tea Coffee MachineCatering Services Cakes Chocolate Shakes Cups & MugsCoffee Vending Machines SundaesFrappe Chocolate and cookies Advertising Space Heavy Foods(in Lounges) Fruit Shakes & Lemonades Apparel & Accessories Gift Cards & Vouchers Product Mix Width ProductLine Length SERVICE MARKETING MIX OFCAF COFFEE DAY PRODUCTPRICEPLACEPROMOTION PHYSICAL EVIDE PEOPLEPROCESS PRICING STRATEGY PSYCHOLOGY PRICING Pricing the product as Rs 69, 79, 59 etc. rather thaninthemultiplesoftentogiveafeelthat the product less priced LOCATION PRICING: On the basis of outlets, prices have been positioned Caf Lounge Square COMBO PRICING Clubbinguptwoormoreproductsonspecial occasions PRICING STRATEGY PREMIUMS PRICING Adding things like cream, chocolate sauce and positioning as a premium coffees VALUE BASED PRICING Providingdifferentvariantsintermsof pricesbyalteringthequantitytogivea sense of affordability SERVICE MARKETING MIX OFCAF COFFEE DAY PRODUCTPRICEPLACEPROMOTION PHYSICAL EVIDE PEOPLEPROCESS

Strategically located outlets Kiosks in offices Coffee machines in college canteens Types of Stores Caf Coffee DayThe LoungeThe Square PLACE

Caf Coffee Day Store Coffeeparlorswherepeoplecan enjoythe coffee have eatables and hangoutwith friends Caf Coffee Day Square AuniqueCafwherevarietyofsingle origincoffeebrewsfromcoffee-growing countries are available Caf Coffee Day Lounge Premium caf from Caf coffee day target selected group SERVICE MARKETING MIX OFCAF COFFEE DAY PRODUCTPRICEPLACEPROMOTION PHYSICAL EVIDE PEOPLEPROCESS 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 brandsPROMOTION WITH THE FOOD: SIDE MENU CARD Contests have been activated through leaflets/contest forms given 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 ON THE WALL The most imposing branding option within a cafe for visual communication with minimal amount of text Tent Cards are the chosen element in the cafes since they are all about I am here, you cant miss me ON THE TABLE: STICKERS & TENT CARDS EDITORIAL COVERAGESERVICE MARKETING MIX OF CAF COFFEE DAY PRODUCTPRICEPLACEPROMOTION PHYSICAL EVIDENCE PEOPLEPROCESS PHYSICAL EVIDENCE Ambience Different ambiencethe look and feel for different outlets Shop Colour Violet for Caf coffee day shops Sea green for Lounge Brown for Square SERVICE MARKETING MIX OF CAF COFFEE DAY PRODUCTPRICEPLACEPROMOTION PHYSICAL EVIDE PEOPLEPROCESS 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 CAF COFFEE DAY PRODUCTPRICEPLACEPROMOTION PHYSICAL EVIDE PEOPLEPROCESS 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 Caf 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 DELIVERY Deliversthe order Data entry SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOMER PHYSICAL EVIDENCE PreparesFood / Drinks Informs about the order 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 Furniture CCD interiors Ambience Interior design CCD boy/girl Menu 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 exteriors CCD boy/girl PROCESS AT CCD CHARACTERISTICS OF SERVICES Intangibility Experience Taste of Coffee Inseparability Service provided Perishability Availability of tables Heterogeneity Ambience of different outlets 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 quality coffee and snacks at affordable costs because the Cafe has set up outlets in the rural areas in India. Distributors The coffee produced on the Cafes farms, are distributed through wholesalers and retailers to customers who wish to use the coffee at home. DISTRIBUTION CHANNEL STRATEGYFOCUS STRATEGY ANALYSIS Service focused Caf Coffee Day Premium Cafes (Lounges) Unfocused CCD cafe outlets Fully focusedCaf Coffee Day Square an exclusive coffee bar Market focused CCD Xpress (Kiosk) WideNarrow Many Few Service Offerings No. of Market Served Porters Five Forces Industry Rivalry(HIGH) Threat of new entrants(LOW) Threat of Substitutes (HIGH) Supplier's Power (LOW) Buyers Power (HIGH) 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 food and 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 MoneyA - Approach / Analysis -Analysis Research and customer focused studies on what Indiancustomerslookingforhotandcolddrinksinpeacefulgoodenvironment. Wished to taste new & innovative products Unique freshness flavour N-Negotiation/NumberStrategy-ChangetheproductUniqueSelling PropositionOfferreasonablygoodpricesqualityproductandservices.Coffee/ tea variants High price & high volume Other Varieties (cold drinks and snacks) Low price & high volume C-Closing/CoreneedOffergoodservicesandqualityproduct.Clearcut differentiated product Existing network of distribution Recommendations 1. To improve the interiors and dcor. 2. To have more and more tie-ups. 3. Only 50 % or less than 50 % people find Caf Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Caf 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. PARTNERSConclusion 1. C.C.D. is the fastest growing Caf in the country. 2. The major competitor undoubtedly Barista. 3. That Caf 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 caf experience. 6. A lot can happen over coffee message has touched the hearts of youngsters who are the largest consumers of C.C.D. ANY QUESTIONS ? 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