Café - Coffee Day - A lot can happen over a coffee

About the Industry

• India’s annual Consumption -97000 tonnes.

• Annual growth rate :5-6%

• Average per capita consumption : 66 grams annual

• Urban areas-73%, Rural areas- 27%.

Café Coffee Day
• Started by V. G. Siddhartha in Brigade Road Bangalore, 1996

• Largest organized retail coffee chain in India Total outlets- 937 in every nook and corner

of the country

• Plans to open 180 more outlets in fiscal year 2010.

• A Rs. 750 crore, ISO -9002 certified company.

• New cafes planned across – Middle East, Eastern Europe, Egypt, Eurasia, South East Asia
Competitor Analysis
• The Biggest Competitors for CCD are:
• Barista
• Café Mocha
• Qwicky
• Costa Coffee
• Java Green
• Café Pascucci

• Indirect Competitors
• McDonald’s, Haldiram’s
• Local Café shops like Nescafe
Product Offerings
• Grows the coffee it serves in its cafes
• Well-equipped roasting unit
• The eatables catered by different vendors Ice creams- Cream Bell Milk -
Amul Snacks from local vendors
• Sells merchandise through its stores.
• Enjoys trust for quality, hygiene and consistency of food.
Re-Branding
SWOT
Strengths
Products of extremely good quality and taste Its a youth
oriented brand , hence huge potential since 40 %
population is below 20 It produces the coffee it serves
hence reducing the cost USP of brand is its considered a
highly affordable brand
Opportunities
Coffee cafe industry is one of the fastest growing industry
in Asia More 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 on lounging. New Products
Weakness
The store ownership of the company might hinder in their
expansion policies Price of the products is relatively higher
than brands like Java Green and McDonalds CCD cafes are
small in sizes Many of the CCD stores are incurring loses
due to wrong site selection (national highways)
Threats
Competition with other coffee cafes like Costa Coffee,
Barista & Mochas. Consumer trends towards more
healthy ways and away from caffeine International players
like Starbucks New entrants and costs
Competitive Strategies/Next Steps
• Follows a backward integration of the value chain
• Procures coffee beans from its base in Bangalore.
• Quality assurance
• Focus on core competence- coffee, outsources other item
• Food items are obtained from local suppliers- cost advantage
Thank You - Any Questions?