EVOLUTION OF CAF COFFEE DAY

ISWARIYA RAGU

ACKNOWLEDGEMENT
I thank professor Simi for giving me an opportunity to study the evolution of Caf coffee day. It gives me immense pleasure to explore about the brand and examine their growth over the years.

TABLE OF CONTENTS

ABSTRACT
The report is about the evolution of the brand Caf Coffee Day. It gives an idea of how the brand has established itself in the Indian market and evolved over the years. It helps us to understand the different marketing strategies adopted by the brand and also how well they have reached their consumers.

INTRODUCTION

Caf coffee day is a public restaurant and belongs to the retail coffee and tea retail beverages industry. V.G.Siddhartha is the director and caf coffee day is a part of ABC Amalgamated Bean Coffee Trading Company. It was established in the year 1996, with its first outlet in Brigade road, Bangalore. Now the brand has over 1090 outlets in several locations. Caf coffee day has earned revenue of US$45 million and employs around 5000 employees. Caf Coffee Day has redefined the coffee experience; it has been a trendsetter in the caf space. Siddhartha has raised the coffee from a brew to an experience.

DESCRIPTION
When Siddhartha opened the first Caf Coffee Day outlet in Bangalore, India's silicon capital, in 1996, it was positioned more as an Internet caf. This was the very early days of the Internet in India, and customers trooped in to Coffee Day to experience the Internet. Coffee was just an extra. Coming from a family of coffee plantation owners and as chairman of ABC, which owns more than 10,000 acres of coffee plantations in the southern Indian state of Karnataka, Siddhartha's aim was to sell coffee. An exporter of green coffee beans, offered low margins and these fluctuated depending on pricing in the world coffee market. A caf, in contrast, operates at the highest end of the value chain. Its margins can be 35% to 40% higher than those of bean exports. At that time, coffee drinking in India was limited to South Indian traditionalists, the intellectuals and the fivestar coffee shop visitors. In the neighbouring international markets of Southeast Asia there was a popular culture of consumers visiting a caf for experiential purpose in addition to consuming a glass of beer. These cafs were also promoting cyber-culture and offering Internet access. These trends inspired Caf coffee day. It had realized that there was a potential for building a coffee brand for the India market, and hence
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launched the first cyber caf model but replaced beer with coffee. This is when Caf Coffee Day was born. CCD An established brand image in India Caf 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. 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 the Exclusive Brand Retailer of the Year by ICICI Bank in its Retail Excellence Awards 2005 for the organized retail sector. CCDs wide network- anytime, anywhere cafe CCD has been able to make its brand presence felt through the sheer number of stores. It has its presence even in Vienna, the coffee capital of the world and two in Karachi, Pakistan. The Indian organized sector has potential for around 5,000 cafs but fewer than 1,000 cafs exist currently.

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 neighbourhood. The change plan included new smart menu, furniture design, among others. 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.
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Man power planning CCD has 6,500 employees (as per Feb 2011) with each cafe requiring about 6 employees. CCD plans to double its employee count by 2013. Growth in recent years Caf coffee day is experimenting now with new formats, such as lounge cafs serving plated meals in addition to the sandwiches, pastries and croissants offered in the cafs. The idea is to see whether this format can attract and retain customers who typically go elsewhere during mealtimes. Unlike the cafs, which cater primarily to the 15 to 30 age group, this format targets consumer who are more than 30 years of age. In two airports in India -- in Mumbai and Bangalore -- these lounge cafs serve liquor to cater to those locations' specific audiences. Whether this plays well with consumers or just confuses the brand remains to be seen. In its early years, Coffee Day had neither clear positioning nor significant presence. Later a strong positioning as a "third place" away from the home and college or workplace for the young and the young at heart proved success for the brand.

Age of technology With the advent of cable television and growing consumerism, the urban youth in India were exposed to the lifestyles of youth across the world. They were seeking an experience which was world class in nature and yet easily accessible -an urban youth 'hangout venue' that allowed them their culture. CCD is social community network place where people can express themselves in a friendly, clean, noninhibitive and non-intimidating environment that offers an excellent range of products at affordable prices.

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CONCLUSION

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BIBLOGRAPHY

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