CCD Case Study Contents

1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction CCD an established brand image in India CCDs wide network the anytime, anywhere cafe Exhibit 1: Total number of stores/cafes of Caf Coffee Day and its competitors 1996 2008, CCDs first store launch to building a strong competitive advantage Innovative formats to woo new customers Reinforcing brand image with the cluster approach strategy Company-owned stores instead of franchises to not dilute brand value Lower pricing and no-segmentation approach

10. From a largely south Indian retail chain to a national brand 11. Co-branding 12. Reinvigorating the brand and taking it to the next level 13. Projecting a feeling of togetherness 14. Silent brew masters special employee program 15. Background Note (History of Cafe Coffee Day) 16. Caf Coffee Day Quick Facts 17. Exhibit 2: Various store/caf formats of Caf Coffee Day 18. Exhibit 3: Different divisions of Caf Coffee Day 19. Exhibit 4: Brand Logo of CCD and its significance 20. Exhibit 5: Sample Consumer profile by Age group at Caf Coffee Day

Case Study Abstract

This case study covers the following issues:

Examine and analyze Cafe Coffee Days brand strategy in India, its success and future challenges

Introduction
CCD today has become the largest youth aggregator, and from a marketing stand point, the success has come by focusing on the 3As: Accessibility, Affordability and Acceptability.- Bidisha Nagaraj, the Marketing president of Cafe Coffee Day

Although demographically, a typical consumer would be male or female between 15-29 years of age, belonging to middle or upper middle class, we call our consumers young or young at heart. We are about juke boxes, good and affordable coffee and food. The brand fit is with youth or the young at heart. So we often look out for brands that are aspirational in nature. Sudipta Sen Gupta, Marketing head, Caf Coffee Day.

CCD an established brand image in India

Cafe Coffee Day (CCD) has an established brand image in India and ranks No 2 in the Brand Equitys Most Trusted Brands 2008 survey in the food services category. Rival Barista is at No 5. CCD has been able to make a connection with the Indian consumers, predominantly among the youth. CCD is the market leader in India and was awarded theExclusive Brand Retailer of the Year by ICICI Bank in its Retail Excellence Awards 2005 for the organized retail sector.

CCDs wide network the anytime, anywhere cafe

CCD has been able to make its brand presence felt through the sheer number of stores. CCD has 620 cafes at present and it has ambitious plans to launch more than 900 cafes by the end of the current financial year. This means launching one store every other day which is not surprising from a company which launched a cafe (in 2005) in Vienna, the coffee capital of the world. CCD also has three cafes in Vienna, and two in Karachi, Pakistan. Lagging behind CCD in the Indian market, Barista has about 200 cafs, Java Green (around 75 cafs) and Mocha (around 25 cafs). The Indian organized sector has potential for around 5,000 cafs but fewer than 1,000 cafs exist currently.

Exhibit 1: Total number of stores/cafes of Caf Coffee Day and its competitors
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Case Study Keywords

Cafe Coffee Day, CCD, Amalgamated Bean Coffee Trading Company Ltd., ABCTCL, V G Siddhartha, Caf Beat, Brand Equitys Most Trusted Brands 2008 survey, Bidisha Nagaraj Marketing president, brand image, brand management, Exclusive Brand Retailer of the Year, Barista, Java Green, Mocha, company owned stores, national brand, south Indian retail chain, Chikmagalur, Co-branding, international brand consultant Landor, Silent brew masters special employee program, a feeling of togetherness, Coffee Day Exports, Coffee Day Xpress, Coffee Day Take Away (coffee vending machines), Coffee Day Fresh n Ground (ground coffee retail outlets), Coffee Day FMCG (packaged filter coffee powder)

Case Updates/Snippets

CCDs vision: To be the only office for dialogue over a cup of coffee

CCDs Expansion Strategy: Cafe Coffee Day has around 821 outlets in 115 cities in India. CCD plans to

take the total number of cafes to 1,000 by March 2010 and double it to 2,000 by 2014. In October 2009, CCD announced that it will increase its international presence from the current six outlets in Vienna and Pakistan to a total of 50 stores across Europe and Middle East in two years time.

International coffee chains in India Recent entrants in the Indian market include Gloria Jeans, Coffee

Bean & Tea Leaf and Illy Caf.

Operating Formats Caf Coffee Day operates in both regular (Coffee Day Square) and premium formats

(Lounge).

Highway Cafes: In 2004, CCD began cafes on highways. By 2009, the total number of Caf Coffee Day

highway cafes rose to 30 owing to the overwhelming response it received from travellers.

CCDs new brand identity: In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave

the concept of Power of Dialogue. In accordance with this new brand identity, CCD planned to give all its existing outlets a new look by the end of 2009. Cafs would be redesigned to suit different environments such as book, music garden and cyber cafes suitable for corporate offices, university campus or neighborhood. The change plan included new smart menu, furniture design, among others.

Coffee consumption in India is growing at 6% per annum compared to the global 2% plus. Milk production in India India is the largest producer and consumer of milk in the world with 98% of milk

being produced in rural India.

Coffee production in India India ranks sixth as a producer of coffee in the world accounting for 4.5% of

the global coffee production. India has about 170,000 coffee farms cultivating around 900,000 acres of coffee trees.

CCDs International Expansion Strategy In June, 2010 Cafe Coffee Day chain acquired Emporio for Rs

15 crore. Emporio is a Czech Republic-based caf chain present at 11 locations. CCD plans to co-brand the chain as Caf Coffee Day Emporio and later transition it to Caf Coffee Day. CCD is also present in Vienna. The company wants to expand in the East European region, West Asia and the Asia-Pacific region.

Cafe Market in India In 2008, according to Technopak Advisors, the Indian food servcies market cafes,

full-service restaurants, fast-food outlets/quick-service restaurants was estimated to be $6 billion (Rs 26,000 crore) with organized players taking 13% of the market. (By 2014 this number is expected to increase up to 27%.). According to Technopak Advisors, the caf market in India is estimated at $150 million (Rs 678 crore) and growing at 40 per cent over the last five years.

Organized coffee market in India: The organized coffee market in India is about Rs 600 crores. This is

approximately 20% of the total domestic coffee consumption (Rs 3,000 crores).

New Entrants in Indian Coffee Cafe market: In early 2011, Hindustan Unilever, the FMCG giant planned

to open a cafe outlet in Mumbai named Bru World Caf to popularize its in-house coffee brand Bru (HULs only coffee brand sold only in India).

CCD to double its human resources count: CCD has 6,500 employees (as per Feb 2011 figures) with

each cafe requiring about 6 employees. CCD plans to double its employee count by 2013.

REEBOK AND ADIDAS

Study Abstract
This case study highlights the merger between German sportswear-maker Adidas and Reebok to take on market leader Nike in 2005. Will Adidas $3.7 billion takeover of Reebok in 2005 be successful or is it hampering the German sportswear-makers performance?

Table of Contents
1. Introduction Taking on Nike market leader in the U.S. Regulatory Issues EU clears the Adidas-Reebok merger Adidas plus Reebok is equal to better competition with giant Nike Post-Merger and Integration Issues Adidas-Salomon Group five-point strategy in 2005 2. 3. Exhibit I: Adidas major locations in 2005 Adidas-Reebok combo synergy Did the merger make sense?

Affordable shoes Growing the Adidas brand Cost Efficiencies Cutting-edge technologies, innovative products and celebrity brand ambassadors New business opportunities A more geographically balanced sales mix 4. 5. 6. M&As in the sporting goods industry during the late 1990s and the early 2000s Adidas Reebok Merger Fact sheet Exhibit II: The Reebok acquisition according to Herbert Hainer, Chairman and CEO of adidas-Salomon AG

7. 8. 9.

Industry Analysis Athletic apparel and footwear industry, Sporting Goods in the U.S Competitive Landscape in 2005/6 Sporting Goods Industry Is the merger successful?

Strong competition from Nike Adidas Fourth Quarter 2007 performance Adidas vs. Reebok unit performance in 2007 10. Reebok History Timeline 11. Adidas History Timeline 12. Financial Analysis Nike, Reebok, and Adidas in 2004 13. Exhibit III: Market Analysis Nike, Reebok, and Adidas in 2004 14. Exhibit IV: Adidas-Salomon Five year financial summary 15. Adidas-Salomon Financial Data 2004, 2005 16. Adidas Group Financial Data 2007, 2006

DELL

ase Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction Manufacturing The first Dell Made in India desktop Dells Market Share in India The Indian consumer and Local competition in India DELL Key Facts about the company Dell Company Overview Dell Business Segment Information Dell Products and Services Dells new retail strategy and Direct-only model

10. Dells New Marketing Strategy in India 11. Dells New Advertising Campaign for SMBs 12. Testimonial Advertising instead of Transactional 13. Dells CSR, Green Initiatives in India

14. Questions for discussion 15. Bibliography

Sample Page
India is a great place to be in. It is growing faster than China for us. Were in 180 countries and I dont track all of them because that can make you a bit dizzy. But I do follow our top 10 markets. India is in the top 10. In fact, its the fastest growing market of our top 10, ahead of everybody, including China. There are plenty of opportunities in India and we couldnt be more excited. -Michael Dell in 2010 Were very strong in the large enterprise segment, but over the next three years, well also focus on consumers and small and medium (Indian PC market growing faster than China: Michael Dell news, 2010) businesses. Thats where we see a big part of the next billion dollars in India coming from. - Sameer Garde, India country manager in 2010

Introduction
Dells presence in India is no surprise. India is one of the most important emerging markets in the world. For years, selling PCs in Asia largely meant China . However, PC makers have recognized the importance of the giant Indian market , its booming economy and annual growth at more than 9%. Dell started in India about seven or eight years back by opening a customer contact center at Bangalore in 2001. In 2003, the second contact center opened at Hyderabad. The company operates its services from four centers based at Bangalore, Hyderabad, Chandigarh and Gurgaon. Dell started in Bangalore providing customer support to English speaking countries and later also began providing technical support, procurement of financial back office and Knowledge process outsourcing. After the U.S., Dell India is the second biggest center with 23,000 employees. The strategic importance of India to Dell is evident from the fact that India was one among three locations (the other two being US and UK) where Dells Latitude E series and Precision notebooks were launched. In India, Dell already has a 23,000-strong workforce in about 10 years of operations and business from India is closing in on the $1 billion mark. Dell has nearly 13 per cent share of the Indian market.

Case Updates/Snippets

Dells channel strategy is to make technology more available to small and medium businesses (SMBs).

Dells channel partners contribute 22% to its total revenue globally. Out of 10 million SMB customers across the globe, Dell caters to 12,000 SMB customers in India. As per estimates, SMB market in India has over 7 to 13 million customers. Among the BRIC countries and U.S., India is ranked second for the number of SMBs.

Stiff competion between Dell and HP in the Indian PC market: According to IDC, since 2005, HP has

held the number one position in the Indian PC market every quarter (for the past six years). However, in the second quarter (April-June, 2010), Dell replaced HP for the first time with a 15.2 percent share. HP followed at 14.3 percent and Acer at 11.5 percent, though HP still led in the desktop segment. Dell was helped by strong marketing and its channel partners base while HP was disrupted by its move from a national distribution model to a network of regional distributors.

PC Market in India:In 2009, 75 lakh PCs were sold. In 2010, the expected PC sales are 90 lakh. For the

first six months ended June 2010, sales totaled about 45 lakh. [Note: 10 lakh=1 million, PCs include desktops and notebooks.]

f I could show you how to increase your sales by 50% without increasing your marketing budget, would you be interested? Of course you would, what marketing professional or business owner wouldn't be interested? By the time you have finished this article you will have figured out how to do just that. Take a few moments and think of all the inactive customer files you have in your file cabinet. Business owners often make the costly mistake of servicing a customer once then assuming "they'll stay" as a customer or client without maintaining and growing that relationship. A year later that business owner is wondering what happened to that customer and where they went. Why haven't they hear from them? Did they leave? If so, why? There are many reasons a customer or client may leave you, but the ones you will hear most often are:

They They They They

felt your pricing was too high or unfair. had an unresolved complaint. took a competitors offer. left because they felt you didn't care.

When you consider that the last two make up the majority of why a client or customer will no longer use your service or buy your products - it can be a hard pill to swallow. After all it means they are an inactive client because they felt you didn't care about them and your competitor did. This makes sense when you consider that customers often purchase your service or product because they have developed a relationship with you, they owned another product or yours, or they were referred to you by a friend or associate. When faced with the above facts why is it businesses spend 80% of their marketing dollars going after new customers and clients rather than nurturing, retaining, and maintaining the customer relationships they already have? Before you spend your time and money going after new customers and clients you do not currently have a relationship with consider the following statistics:

Repeat customers spend 33% more than new customers. Referrals among repeat customers are 107% greater than non-customers. It costs six times more to sell something to a prospect than to sell that same thing to a customer. As you can see your marketing dollars will go further if you use it to build, nurture, and develop your customer relationships. This isn't as difficult as you think. Building these relationships just means treating your customers and clients as if they truly are your strategic partners and showing them that you truly care about them. It's important to try to satisfy them with the right products and services, supported by the right promotion and making it available at the right time and location. Customers can easily detect indifference and insincerity and they simply will not tolerate it. Long-term client and customer loyalty is a long-term challenge that you must strive for every day and with every transaction no matter how big or small. While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base. Companies that fail to nurture and retain their customer base ultimately fail. You will also spend twice as much to get new clients as you will in maintaining your existing customer base.You will also be limited in your ability to attract new clients if you can't hold onto and satisfy your existing customers and clients. The bottom line is that one of the key components in marketing and business growth is to spend the majority of your time and effort nurturing customer relationships, so that you get business from existing clients and customers. This is a strategy that will move you forward in increasing your sales by 50% without increasing your budget.