Cafe Coffee Day 2011

Executive Summary
On the process of the study of product and brand management I have chosen Cafe Coffee Day
for my study wherein the details of the company, product portfolio, marketing mix, competitive
analysis, future trends of the sector, SWOT analysis and my suggestions for the future
developments of the company exists.
Corporate Profile
Cafe Coffee Day is India's favorite coffee shop, for the young and the young at heart. It is a part
of India's largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company.
Theres over 10,000 acres of rolling hills with the coffee shrubs making for lovely walks. There
are 11,000 small growers who make them who they are. And they are not alone; there are folks
in the USA, Europe and Japan that buy coffee from CCD, making them the top coffee exporter
from India
CCD brought the concept of cafes in India. The first one opened in 1996 on Brigade Road in
Bangalore. It's been an exciting journey for CCD, becoming the largest organized retail cafe
chain in the country.
Mission
To be the best Cafe chain by offering a world class coffee experience at affordable prices.
Cafe Coffee Day's Divisions
Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets.
Coffee Day Square, a high level coffee bar in Bangalore.
Coffee Day Xpress, which runs 900 plus Coffee Day kiosks.
Coffee Day Beverages, which runs over 14,000 vending machines.
Coffee Day Exports, its exporting wing.
Coffee Day Perfect, its (FMCG Packaged Coffee) division.
Cafe Emporio: A cafe chain from Czech Republic. Cafe Emporio has 11 cafes in Czech Republic
Caf Emporio runs on 2 formats similar to CCDs regular cafs and Lounge & Square set ups.
CCD is having 1134 stores till 24/9/2011
Marketing Mix
Product:
CCD product mix constitutes a wide range of products that appeal primarily to Indian coffee and
snack lovers. Products have a decided Indian taste to it be it food or coffee. Most of the eatables
have been adopted to meet the Indian taste buds like samosa, masala sandwich, tikka sandwich
etc. Thus they have been trying to capture the Indian taste along with classic coffee. The best
selling item in summer is frappe, which is coffee and ice cream blended together. The young
people favour it. In winter it is cappuccino. Their merchandising includes funky stuff like tshirts, caps etc.
Price:
Considering that CCD knows its major customer lies in the bracket of 15- 29, it has tried to
derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from
Rs.45 to Rs 80. From the time it first started its operations, there has been only minor changes in
the pricing policy of CCD. The changes have been more due to the government taxes than
anything else
Place:
The strategy CCD has adapted is to place a cafe in every possible location where some business

can be generated. This is a prime factor in determining the success of a retail chain. CCD looks
to cater to their target market with strategically located outlets.
Their outlets are generally located in High Street/ Family Entertainment Centres, gas stations,
near Colleges etc.
Promotion:
CCD is involved in all the areas of serious consumer passion like:
Television: CCD held a contest around a very popular programme on Zee English called Friends.
All the six lead characters are shown often visiting a coffee shop. They have tied up with
Channel [V]s Get Gorgeous contest.
Tie-ups: Besides that CCD also tie up lot of the youth brands. So they have a contest going on
with Levis, another one with Scooty, Liril, latest one with Airtel Friends.
Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na
Sales Promotion: CCD uses special Cafe Citizen Card for rewarding Cafe Coffee Days
customers. It is a loyalty program to gain new customers and retain the existing ones.
Process:
The ordering and delivery process in CCD was earlier based on self- service. But now in most its
coffee shops the waiter comes and takes away the order and delivers the order on table.
Physical evidence:
Logo, image, and brand: CCD has used bright red and green colours in its older logo. RED
stands for leadership, vitality, passion for coffee. The GREEN stroke harks back the coffee
plantations that they own. Cafe is noticeably larger in the logo to denote that CCD pioneered the
cafe concept in India way back in 1996.The font looks as though the letters have congealed out
of a liquid The word Cafe was made to appear dominant to indicate Cafe Coffee Days
introduction of Cafe culture in India.
After recognizing the buzz of conversations that invariably accompanied the coffee being served
at their tables. CCD introduced a new logo with a Dialogue box in it. This was to highlight the
strong connection between Coffee and Conversations. Another indication of the dialogue is
the two-way conversation between CCD and its customers
Architecture and Decor: Largely wood and granite based interior with young colours of today,
like lime green, yellow, orange, and purple predominate.
Literature: The literature provided by CCD is indicative of its youthful image. The menus,
posters, pamphlets are all designed to attract young and young at heart
The Tag Line: "A lot can happen over coffee" became a popular line among youngsters. In a bid
to take their coffee chain national in 2000, the management decided to strengthen their brand pull
with an appealing tag line. Factors like ambience, food, music, and atmosphere and meeting
people were identified as the aspects that were drawing people to their Cafes. Encompassing all
these factors in a single line, the sentence "A lot can happen over Coffee, was phrased.
Reference: http://seminarprojects.com/Thread-cafe-coffee-day-2011#ixzz3CB68PMsU

Chetanas Bachelor of Management Studies Subject :Strategic Management Topic : Caf

Coffee Day Group no. 3 Submitted to: Prof. PrasannaSant
GROUP MEMBERS Names Roll no. Gaurav Babel 2103 Prince Pandey 2143
VaibhavGoregaonkar 2118 KarthikNadar 2138 GirijaHirve 2123 AkshayaSurve 2158

Introduction: Caf Coffee Day is a division of India's largest coffee conglomerate,

Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL). ABCTCL grows coffee
in its own estates of 10,000 acres (4047 ha). The land value of the plantations is US$250
300 million. It is the largest producer of Arabica beans in Asia. Apart from this, the group
also sources coffee from 11,000 small growers. ABCTCL is one of Indias leading coffee
exporters with clients across USA, Europe and Japan. A 750 crore ISO 9002 certified
company. First to launch the coffee bar concept in India. 1319 outlets all over India and
still counting.. History : It was in the golden soil of Chikmagalur that a traditional family
owned a few acres of coffee estates, which yielded rich coffee beans. Soon Amalgamated
Bean Coffee Trading Company Limited, popularly known as Coffee Day was formed.
With a rich coffee growing tradition since 1875 behind it coupled with the opportunity
that arose with the deregulation of the coffee board in the early nineties, Coffee Day
began exporting coffee to the connoisseurs across USA, Europe & Japan. In the calendar
year 2000, Coffee Day exported more than 27000 tonnes of coffee valued at US$ 60 m to
these countries and, for the second time in its short career of 7 years retained the position
as the largest coffee exporter of India. Coffee Day has a wide and professional network in
the major coffee growing areas of the country comprising over 48 agents and 50
collecting depots. Coffee Day's two curing works at Chikmagalur and Hassan cure over
70,000 tons of coffee per annum, the largest in the country. Coffee Dayhas a wellequipped roasting unit catering to the specific requirement of the
consumers. The process is carried out under the control of experienced personnel to meet
highest quality standards. The most modern technology available is used to maintain
consistency and roast the coffee beans to the demanding specifications of the discerning
coffee consumers. The first CCD outlet was set up on July 11, 1996, at Brigade Road,
Bangalore, Karnataka.It was founded by V.G. Siddhartha. Mission statement : To be the
best Caf chain by offering a world class coffee experience at affordable price. Vision
statement : To be the only office for dialogue over a cup of coffee. Important events :
Competitors : Barista: Originally known as Barista, this coffeehouse chain in India was
taken over by Lavazza in 2007 and since then is known as Barista Lavazza. Barista was
the fastest brand to make it to the list of Super brands and is ranked among the top 50
phenomena that changed India. With a menu that ranges over Mojitos, frappes,
Lemonades, Ice teas, cold and hot coffee, sandwiches and wraps, salads, breakfast items,
pastas, pizzas, soups, indulgent cakes, muffins, juices and snacks; one does have a tough
time categorizing it as just another coffee shop. Costa Coffee: The second largest after
Starbucks, Costa Coffee has about 1700 stores across 28 countries. Though it doesn't
come as close to Starbucks in terms of numbers, it does better than other competitors.
Opened in 1971 in UK by Italian brothers Sergio and Bruno Costa, it specializes in Italian
coffee. Their biggest branch is in Dubai and can house about 320 people at one time.
Starbucks: With over 19,555 stores in 58 countries, no one serves bigger! The second
largest coffee house has about 1700 stores! Almost a household name for coffee lovers all
over, Starbucks is all determined to have your eyes opened. Based in Seattle,
Washington, Starbucks began with selling high quality coffee beans and equipments but
now serves a wide range of products which include brewed coffee, espresso based hot
drinks, hot and cold drinks, coffee beans, snacks, pastries, sandwiches and items that
include mugs and tumblers. To know the impact, it is estimated that Starbucks sells close
to 4 billion cups of coffee every year.

Market share: Caf Coffee Day have a market share of 60%, while its biggest competitor
Barista has a market share of 25%. Remaining 15% share is of other competitors. Inhouse research: Research shows that while the customers go to them for products, a
substantial amount of their customers go there to hang out with friends The caf is also
venue for business meetings (13%), celebrating special occassions (10%) or just plain
timepass (17%). Sex ratio and marital status: Among the customers who visit Caf coffee
day 52% are females and 48% are males. They are further classified into three categories.
They are married, singles and others. There is a definite skew towards singles ,i.e., 69%.
Married people are 28% and others are 3%. Group sizes: Maximum foot-falls are in
group size varying from 3 to 5 people followed by people coming in groups of 2, a major
part of which are couples. Group of 2 to 5 people have great share of 54% followed by
group of twos- 21%, followed by singles- 18% and more than five- 7%. Products: Grows
the coffee it serves in its cafes. Well-equipped roasting unit. The eatablescatered by
different vendors. a) Ice creams Cream Bell.
b) Milk Amul. c) Snacks from local vendors. Sells merchandisetrough its stores. Enjoys
trust for quality, hygiene and consistency of food. Products: Price: Affordable prices.
Price range starts from Rs. 52 onwards. Only minor changes in the pricing policy due to
changes in Government taxes. Physical evidence: Logo : - Large font- Emphasis on the
word Caf
- Red signifies Leadership and Passion - Swirl for purity of purpose and the feel of coffee
Architecture and Dcor uses bright colours and interiors according to the youth.
Designing of pamphlets posters and menu to attract the youth. Process: Ordering and
delivery earlier was self service and now most of the coffee shops have waiters to take
order and deliver at the table. People: Emphasis on motivation and personal skills of the
people. Friendly waiters and services. Employees follow international standards of
hygiene, cleanliness and personal grooming. Reward schemes like employee of the
month. Places: Prime factor for success- Located at every possible location where
business can be generated. Caters to target market with strategically placed outlet.
Positioning and brandimage India leading coffee chain Caf Coffee Day has unveiled its
strategy to strengthen its leadership position with an all new brand identity that syncs
with its vision to be the friendly and stylish social hub Created by Landor Associates, a
global brand consulting firm and developed from in-depth dialogue with customers,
coffee lovers and stakeholders, the new change entails an all new 'smart' menu, changes
in furniture design and placement, new uniforms, new cutlery and total caf rebranding,
the company said
The company, which posted a turnover of around Rs 750 crore this year, is working
towards revenues of $1 billion by 2015. The company has witnessed a 25 per cent yearon-year growth, Gupta added POSITIONING AND BRAND IMAGE Brought caf
culture to India For the youth: Young (AT HEART) customers, young and friendly staff
Highest distribution network Targetmiddle and upper middle class Age group 15-29
Companies address needs by putting forth a value proposition, a set of benefits thatthey
offer to customers to satisfy their needs. The intangible value proposition is made
physical by an offering, which can be a combination of products, services informationand
experiences. Original logo The First Caf Coffee Day logo was a bright red cube with a
green stroke above 'e' in 'Caf Coffee Day'. The word 'Caf' was made to appear
dominant to indicate Caf Coffee Day's introduction of 'Caf culture' in India. The font

used for 'Caf' is called SLURRY - the font looks as though the letters have congealed or
coagulated out of liquid. The current logo includes a dialogue box which highlights the
connection between 'coffee' and 'conversations.' This logo also reflects their current tag
line, "A lot can happen over coffee." Cafe formats: CAF FORMATS Different caf
formats: Music cafes, Books cafes, Highway cafes,Garden cafes. Cyber cafes Latest
addition: Lounge cafes The company's lounge is a more premium format compared to its
cafes. In the lounges, the beverage is paired over gourmet cuisine and not just over fast
food. The cuisine in the lounge will be European-styled and enable consumers to
customise their food items like bread, pizza, etc. High streets, premium malls and airports
are the type of locations the company is identifying to set up the new lounge outlets.
Promotion : Through SMS Valentine day promotion, &quote Caf Coffee Day Luv
Zone" Through Television Held a contest around a very popular program on Zee English
called Friends. They have tied up with Channel [V]& Get Gorgeous contest. Ticket sales:
They were involved in WWE, Elton John, and Bryan Adams ticket sales
PROMOTION Tie-ups Liril, AirtelFriends. HDFC wanted to promote their debit card
and they choose Caf Coffee Day. So 21 cafes have debit card machines. Association
with movies Bas YunHiKhakee Main HoonNaaSocha Na ThaMujhseShaadiKarogi Sales
Promotion: Special 'Caf Citizen Card' PROMOTION 1) 2003- Levis launched a new
range of low Rise Jeans through a campaign called '6' below' CCD displayed pop of levis
in all its outlets during the campaign 2) 2004- they launched of Liril orange soap by HLL
was conducted in cafe coffee day 3) 2004- TVS scooty tied up with CCD for events in
the coffee bars and malls on valentines day in february 4) 2004- CCD was the official
ground partners for the channel v get gorgeous contest. RE-BRANDING: Earlier
perceived as a place where intellectual meet Positioned itself as a coffee bar and has
maintained that position for a long time now. CCD saw a latent market in youngsters For
youngsters- CCD a fun place where one can go anytime of the day and have fun with
friends. In 2002 CCD underwent a rebranding exercise. CCDspent INR 1.5 billion to
redesign existing cafes (2009). RE-BRANDING OLD LOGO NEW LOGO Caf Coffee
Day, the leading coffee chain has recently enhanced the customer-caf relationship with
new brand initiatives. The changes includes an all new menu for in-house and take away
dining, changes in ultra comfort furniture design and seating, new uniforms, cutlery, and
total caf rebranding. RE-BRANDING OLD LOGO NEW LOGO: The First Caf Coffee
Day logo was a bright red cube with a green stroke above e in Caf Coffee Day. The
word Caf was made to appear dominant to indicate Caf Coffee Days introduction of
Caf culture in India. The font used for Caf is called SLURRY the font looks as
though the letters have congealed or coagulated out of liquid. The current logo includes a
dialogue box which highlights the connection between 'coffee' and 'conversations.' This
logo also reflects their current tag line, "A lot can happen over coffee." SWOT Analysis:
Strengths: Products are of extremely good quality and taste. Its youth oriented brand,
hence huge potential since 40% of the population is below 20. It produces the coffee it
serves hence reducing the cost. USP of brand is its considered a highly affordable brand.
Weakness: The store ownership of the company might hinder in their expansion policies.
Price of the products is relatively higher than Java Green and McDonalds. CCD cafes are
small in size. Many of the CCD stores are incurring losses due to wrong site selection
(National Highways). Opportunities: Coffee caf industry is one of the fastest growing
industries in Asia. Many people like to visit CCD for informal meetings. CCD has gone

international, and is planning to attract many new international markets, hence gaining
international recognition. Changing lifestyle of youth, they like to spend time lounging.
New products. Threats: Competition with other coffee cafes like Costa Coffee, Barista
and Mochas. Customer trends towards more healthy ways and away from caffeine.
International players like Starbucks. New entrants and costs.
Competitive strategies: CAFE Coffee Day (CCD) wants to become a global brand after
its success in India. By 2012-13, CCD plans to be a big global chain both with organic
growth and acquisitions. By the end of this year it will have 900 cafes and 2,500 by 201213. CCD already has its cafes in Austria and Pakistan and wants to set up cafes in Poland,
Russia, Hungary, Dubai, Kuwait, China and Saudi Arabia. The company has received
investment from Darby Templeton and Deutsche Bank to the tune of $100 million for
expanding its network. In August 2008, CCD announced that leading international brand
consultant Landor will help it to reinvigorate its brand and take it to the next level. Only
the brand name and logo saying 'A lot can happen over coffee' will remain the same.
CCD will now focus more on projecting a feeling of togetherness (friendship, romance or
office meeting in an informal environment) and celebration which are critical core values.
Accordingly the cafe ambience, the look and feel inside will be changed. Values of Caf
Coffee Day: PRIDE- I take pride in my work and in my organization. RESPECT- I
respect my customers, my subordinates, my peer and my superiors. INTEGRITY- I will
show the highest level of integrity towards my work and my company under all
circumstances. SELF-DISCIPLINE- I will imbibe and practice self-discipline in all my
daily activities. MOTIVATION- I will always be motivated to give the best for my
organization, my team and my customers.