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Assignment
on the
cafe coffeeday (CCD)Submitted to: Submitted by:
Pardeep Singla Manoj Singla(Faculty) M0923
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Cafe coffee day
INTRODUCTION:Caf Coffee Day, Indias favourite coffee shop where
the young at heart unwind. Were a division of Indias largest coffee
conglomerate, the Amalgamated Bean Coffee Trading Company Limited
(ABCTCL). Popularly known as Coffee Day, its a Rs. 750 crore, ISO 9002
certified company. With Asias second-largest network of coffee estates (10,500
acres) and 11,000 small growers, Coffee Day has a rich and abundant source of
coffee. This coffee goes all over the world to clients across the USA, Europe and
Japan, making us one of the top coffee exporters in the country.
HISTORY OF COFFEE CAFE DAY
About Caf Coffee Day
Caf Coffee Day (CCD) pioneered the
caf concept in India in 1996 by opening its first caf at Brigade Road in
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Bangalore. Today, more than a decade later, Caf Coffee Day is the largest
organized retail caf chain in India with cafes functioning in every nook and
corner of the country. Drawing inspiration from this overwhelming success, Caf
Coffee Day today has cafes in Vienna, Austria and Karachi.Till about the late
1990s coffee drinking in India was restricted to the intellectual, the South
Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed
to instant coffee) coffee caf culture in neighbouring international markets grew,
the need for a relaxed and fun hangout for the emerging urban youth in the
country was clearly seen. Recognizing the potential that lay ahead on the
horizon, Caf Coffee Day embarked on a dynamic journey to become a largeorganized retail caf chain with a distinct brand identity of its own.
OUR DIVISIONS
Coffee Day Fresh n Ground.
Coffee Day Xpress.
Coffee Day Take Away
Coffee Day Exports
Coffee Day Perfect
OUR MISSIONTo be the best Cafe chain by offering a
world class coffee experience at affordable
prices.
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OUR VISION
New cafes are planned across Middle East,
Eastern Europe, Eurasia, Egypt and South
East Asia in the near future.
ACHIEVEMENTS
Cafe Coffee Day has been awarded
as the Best Coffee Bar in Ahmadabad by Times
Food Guide for the 3rd Consecutive year.
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CafCoffee Day takes top honoursat CocaCola Golden Spoon
Awards 2010
y CCD bags the Best Coffee Bar title for the 3rd consecutive
year.
y Caf Coffee Day takes top honours at Coca Cola Golden Spoon
Awards 2010
y Stimulating beverages to keep you warm during the Winter
y SaReGaMaPa over a cup of Coffee
y CCD opens its second caf outlet at Badnera Road
y Friendship Day release July 09
y
Combo Carnival at CDS April 09y Shadows Menu launch January 2009
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Food:
A.)SMALL EATS
Chicken Hot Dog...
Choco brownie
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Choc doughnut
Cookies
Mocha muffin su...
Veg samosa
B.) BIG EATS:
Chicken burger
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Chicken salad s...
Garden salad SA...
Spinach corn SA...
Veg burger
Zingy pizza san...
Zingy pizza san...
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C.)SWEET EATS
Carrot nut cake
Choc black for...
Chocolate fanta...
Mystery mousse
Sizzles dazzle b...
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D.)SUNDAES
Choc hola
Chocolate ice c...
Cookie medley
Dark-passion
Fruity bliss
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Mocha Choc Del...
Vanilla Ice Cre...
BEVERAGES:
Hot coffees
Cold coffee
Hoteas
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Frosteas
Choco-lattes
Fruiteazers
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SALESPROMOTIONS:
Merchandising- Every CCD stocks
merchandise ranging from coffee mugs, T-shirts, caps, bags, coffee
filters, mints, different flavours of coffee powders, tea and cream,
wafers and biscottis. It also merchandises promotional materials for
other brands it associates with. When some brands are conducting
events for which passes are distributed or movie premiere tickets are
given out, CCD is an important hub for these activities as most of the
target market. CCDs Guide to Active Holidays- It is a travel guide
focusing on adventure sports and is available in the CCD outlets, for
people seeking escapade from monotonous life. Cafe Beat- An in-
house magazine which gives the entire low-down on whats
happening in CCD outlets across the world. It describes experiences
of customers, celebrations in CCDs, and covers youth-centric topics
like movies, music, travel, lifestyle, e-dating, books and careers.
Around 38% of CCD goers read Caf Beat and some carry it back
with them. CCD has now tied up with World Space and Micro sense
to provide satellite connectivity in its outlets.
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CONTEST AND OFFERS:Grab the City-Hopper
coupon from the CCD at
departure terminal, which
entitles you to a 15%
discount anywherein Indiaexcept
yourcityoforigin.
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SEGMENTATIONSTRATEGY:
Caf Coffee Day has its main consumer base in the age
group of 15-29 years. Its customers are mainly middle class and upper middle class
youth who are upwardly mobile. From the market, CCD seeks to target not just the
youth but anyone who is young at heart. More than 10% of their customers are above
35 years of age. The evidence of the connect CCD has been able to make, particularly
among the youth, comes from the findings of Brand Equity's Most Trusted Brands 2008
survey. In the food services category, CCD ranks No 2, while McDonalds stands at No. 3
and Barista lags at No 5. The graph below indicates official figures for the type of
consumers of CCD. We can clearly see that its most profitable segment is the 20-24 age
brackets. These customers can afford to visit CCD on a regular basis and have a habit-
forming attitude towards CCD.
Coffee Gyan
y Want a bite of coffee? Yes, Legend has it that in the early days, Coffee
was eaten. Tribes in Africa used to mix coffee berries with fat which
formed edible Energy Balls and ate them.
y Coffee is one of the most popular beverages today, thanks to
Islam.Back in the days, the religion prohibited drinking alcohol, but
coffee was considered an acceptable drink.
y Clothes not fitting? Wear a Bean belt:All coffee in the world grows in
the bean belt. It is the area between the Tropics of Cancer and Capricorn.
y Coffee comes from the root of a plant.Just Kidding! Coffee actually
grows on trees that can grow up to 30 feet tall. However, they are
cultivated to be about 10 feet tall for easy picking.
y George Washington invented Instant Coffee!A Belgian man with the
name George Constant Louis Washington invented Instant Coffee in
1906
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y Ess-press-O:Unlike how its used now, Espresso is just a way that coffee
is prepared. That is, by shooting pressurized hot water through finely
ground coffee.
y Americano:The term Americano comes from American GIs during WWII. Theywould order order espresso with water to dilute the strong flavour.
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PRODUCT ANALYSIS
Caf Coffee Day has different caf formats across
different cities. They can be categorized into Music
Cafs, Book Cafs, Highway cafs, Lounge cafs,
Garden cafs, and Cyber cafs.Every format has a
different feel to it.Also, Caf Coffee Day changes or makes fresh
additions to its menu from time to time. This includes
having specialty coffees from different countries,
exotic desserts and pine coladas. Since the target
consumer is of an age where one constantly seeks
change, this makes sure that the consumerdoes not
get bored with a repetitive style and seeks new places
to go to.
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SWOT ANALYSES
Strength:o Products of extremely good
quality and taste.
o Its a youth oriented brand,
hence huge potential since
40 % population is below 20
o It produces/grows the coffee
it serves hence reducing the cost.
o USP of brand is its considered a highly affordable brand.
Weakness:o Weak brand image and lacks strength to maintain brand loyalty
o Poor ambience and decor. CCD outlet served prime space for
advertising and promotions
o Many of the CCD stores are incurring losses due to wrong site
selection.
Opportunities:o Coffee cafe industry is one of the fastest growing industries in
Asia.
o More people like to visit CCD for informal meetings.
o CCD has gone international, and is planning to attract many
new international markets, hence gaining international
recognition
Threats:Competition with other coffee cafes like Barista, Mochas.
Other hukka parlours like Sheshas, Peshawar, Koylas, and U Turn are alsogaining lot of attention and preferred by young generation to hang around which
in turn is attracting the market captivated by CCD.
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GENERIC COMPETITION
DIRECT COMPETITORS:
o Barista- This is the closest competitor to Caf Coffee Day in the Indian
market. They target the same class of upwardly mobile youth and young
professionals. But Barista is often viewed as a place to unwind after a
hard days work or an ideal setting for some business meetings.
o Caf Mocha- This aims at providing a level of experience to the consumer
which is hard to imitate. Inspired by Morocco and Turkey, Mocha offers
not just coffee but also sheeshas from Egypt and gourmet desserts. Mocha
calls itself a coffee shop for the soul.
o Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in
South India.
INDIRECT COMPETITORS:
o Eateries like McDonalds and Haldirams pose competition to CCD as
they are likely attractions for a consumer to be drawn to. A consumer can
well contemplate why he should spend around Rs. 45 on a coffee when he
can get a burger and a coffee for the same price at McDonalds.
o Local tea joints and coffee shops like Caf Nescafe- They are smaller
places but nevertheless target the same set of consumers. Hence, CCD
has to consider the threat a shop like this could pose to it.
GLOBAL COMPETITORS:
o
Starbucks is planning to enter India shortly and would be stiffcompetition for even an established brand like CCD.
o Coffee bars in the market of the other country that Caf Coffee
Day is entering is also be a factor CCD will have to plan for
before entering a market
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DISTRIBUTIONSTRATEGY
Today CCD has the largest network of cafes in India, with over 607
Company Owned Company Operated cafes across 198 cities. But
they do not follow a franchising strategy. The channel partner has no
involvement in the daily operational activities of the Caf in the
retail space. Neither would he have to invest in operational capital
equipment or branding or marketing and promotion of Caf Coffee
Day.CCD opted not to follow forward integration and outsourced its
distribution responsibility to other parties in 2003. As its reach
spreads across India and it is now exploring smaller towns, CCD
would find it more expensive to maintain on its own. The private
players would procure raw materials like sugar and paper cups but
coffee beans would still come from Bangalore.
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COMPETITIVE STRATEGIES OF CAF COFFEE DAY
o Caf Coffee Day which follows a backward integration of the
value chain procures coffee beans from its base in Bangalore.
This gives it a high sense of quality assurance and guaranteed
supply across its outlets as the same raw material is used in all
outlets. But Barista is a combination of imported coffee beans
and beans from Tata coffee. This is a relative disadvantage
because if there is a discrepancy in the quality or supply,
Barista would have to consider alternatives and probably look
for another supplier.
o Similarly, the food items available in Caf Coffee Day are
obtained from local suppliers whereas Baristas food is catered
by the taj caterers. Caf Coffee Day would hence, have a lower-
cost advantage.
o The brand strength of Caf Coffee Day in comparison to
Qwickys and Caf Nescafe is far greater and its reach is on a
countrywide scale. A consumer travelling across cities would
not find it too difficult to seek a Caf Coffee Day outlet instead
of deciding on trying a Qwickys, which he is not accustomed to.
o Caf Coffee Day has an advantage of top-of-mind recall for
coffee-shop-goers in India, especially because it set the caf ball
rolling in the country.
o It is a place where a lot of young people can meet, chat, have
fun and let their hair down, rather than sit and sip a cup of
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coffee in prim and proper serenity. This is one of the main
factors for why it is chosen over places like Barista or Mocha.
MARKET EXPANSION
Recently, Caf Coffee Day entered a tie-
up with the Ginger hotels of the Taj. This caters to business
executives and is on a Smart basics platform. The outlet
would be open to all, and not just the hotel's guests. The aim
is to increase footfalls in Ginger and increase the reach of
Caf Coffee Day. This way, CCD can reach out to another set
of consumers, apart from the young crowd it has mainly
catered to.
SUMMARY
Caf Coffee Day is now looking at more caf
formats to try in new outlets. They are planning on having
sports cafes, singles cafes and fashion cafes. Also, CCD is
planning on opening more lounge cafes across the country.
Like it did with Ginger hotels, CCD can also try and find
consumer segments which it did not earlier think of catering
to.
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OBSERVATION
After the study of this beautiful retail chain coffee cafe day
(CCD). I observe that basically it deals only in metro cities
or in several towns. CCD should be proceeding for the rural
area also by making the cup of tea not only the coffee or
other drinks. It will give more business to the company. And
who never hared about this they will become new customer
for the company. It will be more beneficial for the company.
It will give sound growth to the business.