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MARKETING RESEARCH PROJECT

ON
CUSTOMER ATTITUDE TOWARDS RETAIL COFFEE CHAINS A STUDY IN
DELHI, W.R.T BARISTA, CCD, NESCAFE


Submitted by
Mohini

Under the supervision of
Prof. Jagriti Mishra





Submitted to
Department of Fashion Management Studies (FMS)
National Institute of Fashion Technology (NIFT)
(Ministry of Textiles, Govt. of India)
GH-0 Road, Behind Infocity
Gandhinagar 382007. Gujarat
http://www.nift.ac.in
DEC, 2013
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ACKNOWLEDGEMENT
Firstly, all the glory to My Father who blessed me with this opportunity and gave me
persistence and determination throughout my study.

I would like to take this opportunity to express my deepest gratitude to those who contributed
to my study and those who guided, inspired and helped me throughout. I wish to express my
gratitude towards my parents who supported me throughout my studies.

I would like to direct a special thanks to my supervisor Mrs Jagriti Maam, who always
encouraged me to do better. I hereby acknowledge the professional guidance of my co-
supervisor Mr Bhaskar Banerjee. I would like to convey my sincere gratitude to the people
who contributed to making this study a success.

Lastly, I would especially like to say thank you to Shakti Prabha and Jayshree Behra for
being there when I needed you the most.



















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TABLE OF CONTENT













S.no.

Title

Page no.

1

INTRODUCTION

10

2

REVIEW OF
LITERATURE

24

3

METHODOLOGY

31

4

DATA ANALYSIS

34

5

SUMMARY AND
CONCLUSION

53

6

BIBLIOGRAPHY

58
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LIST OF TABLES


Table no.

Title


Pg no.

3.1

Most visited coffee house

41

3.2

Why you drink coffee?

42

3.3


Where you drink
coffee??

43

3.4


Factors affecting

44

3.5

Variety of coffee

45

3.6

Taste of coffee

46

3.7

Quality of coffee

47

3.8

Price

48

3.9

Ambience


49

3.10

Customer Service

50

3.11

Location

51

3.12

Offers/Discounts

52

3.13

Menu

53

3.14

Time to serve

54

3.15

Experience

55

3.16

Ranking

56
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3.17

Decision Making

57

3.18

Reason for Visiting

58

























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LIST OF PIE CHARTS


Pie Chart no.

Title


Pg no.

3.1

Most visited coffee house

41

3.2

Why you drink coffee?

42

3.3


Where you drink
coffee??

43

3.4


Factors affecting

44

3.5

Variety of coffee

45

3.6

Taste of coffee

46

3.7

Quality of coffee

47

3.8

Price

48

3.9

Ambience


49

3.10

Customer Service

50

3.11

Location

51

3.12

Offers/Discounts

52

3.13

Menu

53

3.14

Time to serve

54

3.15

Experience

55
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3.16

Ranking

56

3.17

Decision Making

57

3.18

Reason for Visiting

58
























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LIST OF ANNEXURES

Annexure 1(Questionnaire)54


























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CUSTOMERS ATTITUDE TOWARDS THE RETAIL COFFEE CHAINS STUDY
IN DELHI
BACKGROUND TO THE RESEARCH
Our thirst for coffee seems almost insatiable. By one estimate, 3,300 cups of coffee are
consumed every second of the day worldwide (Le Figaro 1999). Today, the world market for
all types of coffee is conservatively estimated at US$11 billion per year (Sturdivant 1999).
Consumer awareness about the quality of different coffees has increased steadily in recent
years. Market studies show that consumers are more discriminating about differences
between groups of coffee, including distinctions based on product origin, taste characteristics,
such as smoothness,aroma and acidity, organic characteristics, and other factors. This study
determined consumers perceptions and attitude, in order to form a better understanding of
their preference to the coffee houses available . However, perception is not a singular concept
but an interactive process. Therefore, the present study, done in the NIFT, Gandhinagar
aimed to determine consumers perceptions of coffee house, by focusing on the perceptual
process of consumers. The first objective was to determine consumers Preference in choice
of Coffee chain, Secondly Factor affecting the customer choice of coffee chains and thirdly,
Comparative analysis between different coffee chains. A questionnaire was used as the data
collection technique. A total of 50 questionnaires were administered by customers of coffee
houses. The study location was Delhi. This contributed to the probability that a diverse group
of respondents participated. The study population consisted of 40% females and 60% male.











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CHAPTER - 1
INTRODUCTION
Today Coffee has become a lifestyle. Also, it has caught the fancy of today's generation -
youth. These were not the typical coffee drinking target customers. But now they are a big
part of the target base for coffeehouses. And it is fashionable to be seen at the Coffee Pubs. It
is in a way, a lifestyle statement.
That is bad news for tea - still the favourite brew for a majority of Indians, which has been
losing out to coffee in recent years. India is one of the world's largest exporters of tea and
also one of its biggest consumers. But it is coffee drinking which is increasingly becoming a
statement of young and upwardly mobile Indians.
And coffee bars, an unheard of concept till a couple of years ago, are suddenly big business.
Corner bars like these are offering more than just coffee and snacks to their customers. For
many of their regular patrons, a visit to these bars is also a part of the western lifestyle they so
much want to identify with.
The Coffee retailing sector in India is booming today, with several companies active in the
market. Some are local entities, some have come from abroad and have tied up with local
companies, and some seem to prepare themselves for an entry sooner or later. The market
growth is expected to be 20 to 30% annually in the next couple of years.
Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf
at Brigade Road in Bangalore. 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 neighboring
international markets grew, the need for a relaxed and fun hangout for the emerging urban
youth in the country was clearly seen.
1.1 Coffeehouse
A coffeehouse shares some of the characteristics of a bar, and some of the characteristics of a
restaurant, but it is different from a cafeteria. As the name suggests, coffeehouses focus on
providing coffee and tea as well as light snacks. This differs from a caf, which is an
informal restaurant, offering a range of hot meals, and possibly being licensed to serve
alcohol. Many coffee houses in the Muslim world, and in Muslim districts in the West, offer
shisha, powdered tobacco smoked through a hookah. In establishments where it is tolerated -
which may be found notably in the Netherlands, especially in Amsterdam - cannabis may be
smoked as well.
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From a cultural standpoint, coffeehouses largely serve as centers of social interaction: the
coffeehouse provides social members with a place to congregate, talk, write, read, entertain
one another, or pass the time, whether individually or in small groups.

1.2 History
Since the 15th century, the coffeehouse has served as a social gathering place in Middle
Eastern countries where men assemble to drink coffee (usually Arabic coffee) or tea, listen to
music, read books, play chess and backgammon, and perhaps hear a recitation from the works
of Antar or from Shahnameh. In 1457 the first coffeehouse, Kiva Han, was opened in
Istanbul, just four years after its conquest by the Ottomans. Coffeehouses in Mecca soon
became a concern as places for political gatherings to the imams who banned them, and the
drink, for Muslims between 1512 and 1524. In 1530 the first coffee house was opened in
Damascus, and not long after there were many coffee houses in Cairo.
In the 17th century, coffee appeared for the first time in Europe outside the Ottoman Empire,
and coffeehouses were established and quickly became popular. The first coffeehouses in
Western Europe appeared in Venice, due to the traffics between La Serenissima and the
Ottomans; the very first one is recorded in 1645. The first coffeehouse in England was set up
in Oxford in 1650 by a Jewish man named Jacob. Oxford's Queen's Lane Coffee House,
established in 1654, is still in existence today. The first coffeehouse in London was opened in
1652 in St Michael's Alley, Cornhill. The proprietor was Pasqua Rose, the Armenian servant
of a trader in Turkish goods named Daniel Edwards, who imported the coffee and assisted
Rose in setting up the establishment. Boston had its first in 1670. Pasqua Rose also
established Paris' first coffeehouse in 1672 and held a city-wide coffee monopoly until
Francesca Procopio dei Coltelli opened The Cafe Le Procope [2]in 1686. This coffeehouse
still exists today and was a major locus of the French Enlightenment; Voltaire, Rousseau, and
Diderot frequented it, and it is arguably the birthplace of the Encyclopdie, the first modern
encyclopedia.
Though Charles II later tried to suppress the London coffeehouses as "places where the
disaffected met, and spread scandalous reports concerning the conduct of His Majesty and his
Ministers", the public flocked to them. They were great social levellers, open to all men and
indifferent to social status, and as a result associated with equality and republicanism. More
generally, coffee houses became meeting places where business could be carried on, news
exchanged and the London Gazette (government announcements) read. Lloyd's of London
had its origins in a coffeehouse run by Edward Lloyd, where underwriters of ship insurance
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met to do business. By 1739 there were 551 coffeehouses in London; each attracted a
particular clientele divided by occupation or attitude, such as Tories and Whigs, wits and
stockjobbers, merchants and lawyers, booksellers and authors, men of fashion or the "cits" of
the old city centre. According to one French visitor, the Abb Prvost, coffeehouses, "where
you have the right to read all the papers for and against the government," were the "seats of
English liberty.
The banning of women from coffehouses was not universal, but does appear to have been
common in Europe. In Germany women frequented them, but in England and France they
were banned. milie du Chtelet purporsely wore drag to gain entrance to a coffee house in
Paris. In a well-known engraving of a Parisian coffeehouse of c. 1700, the gentlemen hang
their hats on pegs and sit at long communal tables strewn with papers and writing
implements. Coffeepots are ranged at an open fire, with a hanging cauldron of boiling water.
The only woman present presides, separated in a canopied booth, from which she serves
coffee in tall cups.
The traditional tale of the origins of Viennese coffeehouses begins with the mysterious sacks
of green beans left behind when the Turks were defeated in the Battle of Vienna in 1683. All
the sacks of coffee were granted to the victorious Polish king Jan III Sobieski, who in turn
gave them to one of his officers, Franciszek Jerzy Kulczycki. Kulczycki began the first
coffeehouse in Vienna with the hoard. However, it is now widely accepted that the first
coffeehouse was actually opened by an Armenian merchant named Johannes Diodato.
In London, coffeehouses preceded the club of the mid-18th century, which skimmed away
some of the more aristocratic clientele. Jonathan's Coffee-House in 1698 saw the listing of
stock and commodity prices that evolved into the London Stock Exchange. Auctions in
salesrooms attached to coffeehouses provided the start for the great auction houses of
Sotheby's and Christie's. In Victorian England, the temperance movement set up coffeehouses
for the working classes, as a place of relaxation free of alcohol, an alternative to the public
house (pub).
Coffee shops in the United States arose from the espresso- and pastry-centered Italian
coffeehouses of the Italian-American immigrant communities in the major U.S. cities,
notably New York City's Little Italy and Greenwich Village, Boston's North End, and San
Francisco's North Beach. Both Greenwich Village and North Beach were major haunts of the
Beats, who became highly identified with these coffeehouses. As the youth culture of the
1960s evolved, non-Italians consciously copied these coffeehouses. Before the rise of the
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Seattle-based Starbucks chain, Seattle and other parts of the Pacific Northwest had a thriving
countercultural coffeehouse scene; Starbucks standardized and mainstreamed this model.
In the United States, from the late 1950s onward, coffeehouses also served as a venue for
entertainment, most commonly folk performers. This was likely due to the ease at
accommodating a lone performer accompanying themself only with a guitar, even with
limited floorspace; the political nature of much of 1960s folk music made the music a natural
tie-in with coffeehouses with their above-referenced association with political action. A
number of well known performers like Joan Baez and Bob Dylan began their careers
performing in coffeehouses. Blues singer Lightnin' Hopkins bemoaned his woman's
inattentiveness to her domestic situation due to her overindulgence in coffeehouse
socializing, in his 1969 Coffeehouse Blues.
From the 1960s through the mid-1980s, many churches and individuals in the United States
used the coffeehouse concept for outreach. They were often storefronts and had names like
The Gathering Place (Riverside, CA), The Lost Coin (New York City), and Jesus For You
(Buffalo, NY). Christian music (guitar-based) was performed, coffee and food was provided,
and Bible studies were convened as people of varying backgrounds gathered in a casual
"unchurchy" setting. These coffeehouses usually had a rather short life, about three to five
years or so on average. An out-of-print book, published by the ministry of David Wilkerson,
titled, A Coffeehouse Manual, served as a guide for Christian coffeehouses, including a list of
name suggestions for coffeehouses.
1.3 Format
Coffeehouses in the United States often sell pastries or other food items.
Cafes may have an outdoor section (terrace, pavement or sidewalk cafe) with seats, tables and
parasols. This is especially the case with European cafes. Cafes offer a more open public
space compared to many of the traditional pubs they have replaced, which were more male
dominated with a focus on drinking alcohol.
One of the original uses of the cafe, as a place for information exchange and communication,
was reintroduced in the 1990s with the Internet cafe or Hotspot (Wi-Fi). The spread of
modern style cafes to many places, urban and rural, went hand in hand with computers.
Computers and Internet access in a contemporary-styled venue helps to create a youthful,
modern, outward-looking place, compared to the traditional pubs or old-fashioned diners that
they replaced.

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1.4 International variation
American coffee shops are also often connected with indie, jazz and acoustic music, and will
often have them playing either live or recorded in their shops. Coffeehouses are often
gathering places for underage youths who cannot go to bars.
In the United Kingdom, traditional coffeehouses as gathering places for youths fell out of
favour after the 1960s, but the concept has been revived since the 1990s by chains such as
Starbucks, Coffee Republic, Costa Coffee, and Caff Nero as places for professional workers
to meet and eat out or simply to buy beverages and snack foods on their way to and from the
workplace.
In France, a cafe also serves alcoholic beverages. French cafes often serve simple snacks such
as sandwiches. They may have a restaurant section. A brasserie is a cafe that serves meals,
generally single dishes, in a more relaxed setting than a restaurant. A bistro is a cafe /
restaurant, especially in Paris.
In Australian cities, a traditional European cafe culture is thriving as a result of significant
immigration from mainland Europe in the 19th century and 20th century. These
establishments often cluster along certain streets and with the weather allowing curb side
seating much of the year certain areas resemble a large party on a Friday or Saturday evening.
In Malaysia and Singapore, traditional breakfast and coffee shops are called kopi tiams. The
word is a portmanteau of the Malay word for coffee (as borrowed and altered from the
Portuguese) and the Hokkien dialect word for shop. Menus typically feature simple offerings:
a variety of foods based on egg, toast, and kaya (jam), plus coffee, tea, and Milo, a malted
chocolate drink which is extremely popular in Southeast Asia and Australasia, particularly
Singapore and Malaysia.
In parts of the Netherlands where the sale of cannabis is decriminalized, many cannabis shops
call themselves coffeeshops.
In modern Egypt, Turkey and Syria, coffeehouses attract many men and boys to watch TV or
play chess and smoke shisha.

1.5 Barista Coffee
Barista Coffee is a chain of espresso bars in India. Headquartered in Delhi, Barista currently
has espresso bars across India, Sri Lanka and the Middle East. It was founded in 1997, p Led
by the dynamic duo of Ravi Deol & the marketing ace Sandeep Vyas; Barista was the fastest
brand to make it to the list of super brand's and is ranked among the top 50 phenomenons that
changed India. Starbucks corporations decided to enter into an agreement that allowed
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Barista Coffee to use the brand for cafes as long as it allowed Starbucks to use the brand
"Barista" for brewing equipment. Italy's Lavazza has now acquired Barista.
Barista Coffee in India can be easily called the pioneers of coffee culture in India.
Established in February 2000 to recreate the ambience and experience of the typical Italian
neighborhood Espresso Bars. Barista Coffee aims to provide a comfortable and friendly place
for people to relax and unwind over a cup of coffee.
1.5.1 Ownership: Barista Coffee Company is owned by Lavazza, Italys largest coffee
company. Lavazza is one of the most important roasters in the world, a leader in Italy with a
46.5% share of the retail market (in value, source: Nielsen). It operates in over 80 countries,
in the Home and Away-from-Home sectors (Foodservice, Vending and Retailing). In 2006
sales totalled USD 1.2 billion.
1.5.2 Outlets: Barista at present has over 170 Espresso Bars and 7 Barista Crmes in over 29
locations: Delhi, Gurgaon, Bangalore, Hyderabad, Kolkata, Mumbai, Chennai, Pune,
Ghaziabad, Noida, Chandigarh, Mohali, Dehradun, Shimla, Mussorie, Jaipur, Kanpur,
Lucknow, Bhopal, Indore, Bhubaneshwar, Ahmedabad, Baroda, Cochin, Coimbatore,
Manipal, Guwahati etc. making it one of the largest retailers of specialty coffees in Asia.
Barista further has laid international footprints in Sri Lanka (4 outlets), Oman and UAE (6
outlets).
1.5.3 Ambience: Barista Coffee is not just about drinking coffee but also about the entire
experience. At Barista the Joy of Coffee is reflected in the warm ambience, the exotic
flavours and the friendly service provided by the brew-masters. To add to the informal
ambience, Barista Espresso Bars offer games like Scrabble, Pictionary and Battleship for the
guests. Barista Espresso Bars were the first place where the customers were called by their
first names to create an atmosphere of informality and friendliness. Barista in its outlets have
Wi-Fi enabled corners for executives-on-the-go. Open seven days a week, most Barista
Espresso Bars begin brewing from 10 a.m. and are open till late night.
1.5.4 Coffee: Barista Coffee places strong emphasis on the quality of coffee beans and the
process of preparing, rich aromatic coffee. The coffee is created with carefully hand picked
mature cherries of the Arabica coffee plant, ensuring a uniform and high quality harvest. This
100% Arabica coffee is sourced from Tata Coffees plantations in Karnataka, India. House
blend beans are sourced and roasted in India by Tata Coffee. The international coffees such
as Costa Rican, Kenyan and Jamaican Blue Mountain are sourced from the respective
countries and custom roasted in Italy.
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1.5.5 Food: In an attempt to further enhance the experience at the Barista Espresso bars, it
has on offer a delicious snacks and dessert menu. On offer are authentic Italian food items
such as biscottis, paninis, wraps, twisters, puffs, sandwiches and other munchies to go along
with its wide coffee range. To cater to the sweet tooth, Barista also offers mountains of ice
creams, oodles of chocolate, chunks of crumbly apple pies, walnut brownies etc.
1.5.6 Awards
Barista the Super Brand
Barista received the coveted Retail Award, voted by consumers as the 'Most admired
retailer of the year 2007: Catering Outlets' at the 4th IMAGES Retail Awards (IRA) 2007,
felicitating Indias top performing companies and professionals in the business of retail.
Barista has also been voted Barista has been recognised by the HTSuperbrand two years in
succession. Food Guide as the best place to have coffee. It is also the recipient of the Caf of
the Year award given by The Times Group in the Times Food Guide.
A huge shot in the arm and validation of the companys efforts has been the recognition given
independently by BBC, The Times of India and Business Standard as the Brand of the Year
(2002).
Barista was also awarded the TOPS award for Specialty Coffee Excellence by the Specialty
Coffee Association of America (SCAA) which recognizes specialty coffee retailers who
differentiate themselves through better business practices.
Recently Barista was also recognized by the HT Food Guide as the best place to have coffee
as well as Caf of the Year award given by The Times Group in the Times Food Guide.
For the year 2003-05, Barista has been selected as one of the 100 superbrands in the country
and is amongst the youngest brands in the list, to achieve this status.
1.5.7 Marketing initiatives: In order to enhance this unique experience, Barista focuses on
themes and avenues that complement coffee such as music, books and art. Barista has tiedup
with brands such as Planet M and Corner Book Store to open espresso corners in these stores.
Here, the Barista ambience has been re-created within the establishments giving the
consumers the opportunity to enjoy a cup of delicious coffee while browsing through a book,
enjoying music or appreciating art.
Barista is a comfortable place to spend time with friends, family, strangers, the girl next door,
her neighbour's aunt, well, just about anyone. And even if you drop by alone, they have some
of the finest beverages to keep you company.
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To begin with, there's the Barista House Blend - their signature blend of coffee and select
international coffees from some of the most noted coffee growing regions of the world.
Followed by an extensive list of steaming hot espressos, cappuccinos and lattes made from
the finest Arabica beans.
To cool things down, they have fruit smoothies and chilled granitas in tropical flavours. And
finally, a refreshing range of cold and frozen coffees that will make anyone who tries them
return for more.
Barista traces its roots back to the old coffee houses in Italy - the hotbeds of poetry, love,
music, writing, revolution and of course, fine coffee. Drawing inspiration from them, they
have single-handedly taken on the challenge to open people's eyes to the simple pleasures of
coffee and revolutionize the coffee drinking experience in every city that we invade.
To live up to this promise, they have employed skilled Italian roastmasters at their roastery in
Venice. Sourced only the finest quality Arabica. And have had our espresso bars designed to
reflect a warm, friendly and inviting atmosphere. Add to this, a menu you can ponder over for
hours and you have everything you need to escape the pressures of daily life.
At last count, the aroma of fine Barista coffee permeated in over 100 espresso bars across
India, Sri Lanka and the Middle East.
1.6 Caf Coffee Day
Caf Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean
Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, a Rs. 300 crore
ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates,
the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is
one of Indias leading coffee exporters with clients across USA, Europe & Japan.
With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees
and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning
the entire value chain of coffee consumption in India. Its different divisions include: Coffee
Day Fresh n Ground (which owns 354 Coffee bean and powder retail outlets), Coffee Day
Xpress (which owns 341 Coffee Day Kiosk), Coffee Day Take away (which owns 7000
Vending Machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee)
division.
Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf
at Brigade Road in Bangalore. Till about the late 1990s coffee drinking in India was
restricted to the intellectual, the South Indian traditionalist and the five star coffee shop
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visitor. As the pure (as opposed to instant coffee) coffee caf culture in neighboring
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 large organized retail
caf chain with a distinct brand identity of its own. From a handful of cafs in six cites in the
first 5 years, CCD has become Indias largest and premier retail chain of cafes with 498 cafes
in 85 cities around the country.
Enthused by the success of offering a world-class coffee experience, CCD has opened a
Caf in Vienna, Austria and is planning to open other Cafes in the Middle East, Eastern
Europe, Eurasia, Egypt and South East Asia in the coming months.
1.6.1 Cafe Formats

Caf Coffee Day has been experimenting with caf formats for quite sometime. Backed by
the motivation of providing customers with exciting choices as well as constantly redefining
the caf experience, CCD has ventured into the following formats:
1. Music Cafs provide customers with the choice of playing their favourite music
tracks on the Digital Audio Jukeboxes installed at the caf! There are around 85 cafes
with such jukeboxes. 32 cafes also provide customers with the visual treat of watching
their favorite music videos by means of Video Jukeboxes.
2.Book Cafs offer the perfect solution to people who think that the coffee experience is
incomplete without browsing through the bestsellers or reading a classic. CCDs book
corners accentuate the age-old combination of coffee and books. This exciting concept has
been successfully tested at 15 cafes in 12 cities across India and the numbers are set to grow
exponentially. CCD has tied up with English Book Depot, one of Indias leading book
distributors for placement and rotation of reading materials appealing to Caf Coffee Days
discerning customers.
3. Highway cafs on the Bangalore Mysore highway and NH-8, presents the traveler en
route not only with good coffee and scrumptious snacks amidst great ambience but also with
clean restrooms to get rid of that weariness from the road!
4. Lounge cafs at Hauz Khas , Delhi and Southern Avenue, Kolkata (Southern Avenue)
and Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the lively
ambience and comfort of a caf. With exquisite interiors, exotic menu and thematic music
CCD Lounge offers a whole new experience to the connoisseur while assisting the latter
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through its team of hostesses who are poise and style incarnate and are looked upon as
fashion icons.
5.Garden cafs at M.G Rd, Bangalore and GKII, New Delhi combine the joy of
rejuvenating amidst verdant landscapes and pots of coffee.
6.Cyber cafs at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi combine the urge to
surf, not to mention get connected through the internet while enjoying perfectly brewed cups of
coffees, both domestic as well as International blends!
Mission statement
To be the best caf chain in the world by offering a world class coffee experience at
affordable prices.
Brand association
CCD has emerged as an interactive alternative media for brands to communicate with the
young at heart.
Other media, such as electronic, print and outdoor, offer brand communication through visual
and audio modes to a large section of the populace, both relevant and irrelevant. Caf Coffee
Day offers a much more interactive, targeted communication, sometimes adding even a taste
dimension to a brand idea!
Various in-caf collaterals used to impart visibility to a brand inside a caf or to add the
element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures,
Coasters, Drop boxes, Contest Forms, Stirrers, Standees etc.
Over the years, CCD has successfully promoted a number of brands/products/events through
various innovative tactics and promo ideas. Cashing in on its mass captive audience, we at
CCD have entered into tie-ups and promotions which are well knit with our brand promise
and which can be creatively used to woo the Indian Youth.
Customer profile
The caf is a meeting place for 15-29 year olds, both male and female who are served the best
coffee by friendly and informed staff, in an uplifting and invigorating ambience.
Research shows that teen-agers form 25% of our customers while 38% of the customers are
between 20 and 24years and another 23% belong to the age group of 25-29 years. Students
and young professional comprise around 72% of our customers.
18% of the customers visit the cafes daily while another 44% visit weekly. Each caf,
depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm
and 7 pm. Customers describe Caf Coffee Day as the place they frequent most after home
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and workplace/college. It is a place where they meet friends and colleagues, in groups of 3
or more; a place where they rejuvenate and are free to be themselves rather than a place to be
seen at vis a vis other cafes.
Awards
Cafe Coffee Day: the best Indian Food Services Brand Business World November 8th,
2004
Food services top 5
1. McDonalds
2. pizza hut
3. caf coffee day
4. barista coffee
5. dominos
Out of the 3 coffeehouses studied, CCD is visited the most. The mean of CCD visited is more
than Barista and Nescafe.
1.7 NESCAFE
The rich taste of coffee is reflected in its rich history. The beginnings of NESCAF can be
traced all the way back to 1930, when the Brazilian government first approached Nestl.
NESCAF a combination of Nestl and caf. NESCAF was first introduced in
Switzerland, on April 1st, 1938. For the first half of the next decade, however, World War II
hindered its success in Europe. NESCAF was soon exported to France, Great Britain and
the USA. American forces played a key role in re-launching NESCAF in Europe by virtue
of the fact that it was included in their food rations. Its popularity grew rapidly through the
rest of the decade. By the 1950s, coffee had become the beverage of choice for teenagers,
who were flocking to coffee-houses to hear the new rock n roll music. In 1965 NESCAF
continued to bring the world's best cup of coffee by introducing freeze-dried soluble coffee
with the launch of Gold Blend. Only two years later they invented a new technology to
capture more aroma and flavour from every single coffee bean. In 1994 the 'full aroma'
process was invented to make the unique quality and character of NESCAF even better.
Nestl's commitment to sustainability is deeply rooted in the company's core values, which
drive the Company's way of doing business. (Nestl Corporate Business Principles) The
endorsement of these values is made through a whole set of principles that are enforced at
every stage of production, by every business or production unit, employee, partner or vendor.
21 | P a g e

(Nestl Corporate Governance Principles). The company's culture is guided by these
principles, which ensure leadership fully compatible with Nestl's sustainability objectives.
(Nestl Management and Leadership Principles)

FMCG major Nestle India, having catapulted its business with the launch of its probiotic
range of frozen dairy products, is now all set to grow its coffee business.
While coffee chains such as Caf Coffee Day and Barista target the upper middle class youth
segment, Nestle India through its Cafs is going all out to woo the masses.
Mr. Martial Rolland, CEO, Nestle India, said, The idea is to create a sustainable model that
is scalable through these cafes.
They use these outlets as our laboratories to try out new products and gauge the reaction of
consumers to the newer variants of coffee.
Not deterred by the competition the coffee chains could present, they are pleased that there
are more players in the competition as it will expose more consumers to coffee.
The difference between the coffee chains and us is affordability. No one knows coffee the
way we do.
Nestle; however, plans to continue its cafes pan-India under the franchisee model. They are
focusing more on product delivery vis--vis the ambience. They refuse to divulge the size of
the companys caf business.
However, according to company officials it was far larger than some of the others who claim
to have the maximum number of outlets in the country.
Nestle has cafs across schools, colleges and offices.

1.7.1 Perfect blend
Affordability, in fact, is a major criterion for Nestle India as far as products are concerned.
The companys motto to target the lowest denominator is clear through the pricing of its
brands in the category as well as the blends used in the products.
India is predominantly a tea drinking country. Therefore, the harsh and strong flavour of
coffee is not preferred by most people. So, the blends they use in their brands are also very
specific to consumer tastes.
New product
Based on consumer insight, the company has just launched its new product Nescafe Mild,
targeted specifically at the mass market of tea drinkers.
22 | P a g e

Their long heritage in the country helps them understand people better. Also with the
understanding of coffee that they have acquired globally, they want to leverage their expertise
here as well.

1.7.2 Cold coffee category
The company is also examining several possible segment forays under coffee, however,
moving away from hot to the cold category.
Though the market for products such as cold coffee is still very small in India, experiences
from their Caf outlets have made them realise the growing demand for it. They are
examining possibilities of launching such products in India.
In fact, the coffee market in India in itself is rather small with great opportunity for growth.
And, as a company, they focus more to grow their coffee business here.






















23 | P a g e

PROBLEM DEFINITION

1. What is the customer Preference in choice of Coffee chain?
2. What factors does affect the customer choice of coffee chains?

This research project will include the following issues-
Identifying the factors that influence the customer the most (factors such as coffee taste,
ambiance, affordability, etc.)
Customers purchasing behaviour and attitude towards coffee houses (in terms of which
coffee-house they visit, for what purpose they visit a coffee-house, on what occasions they
prefer to visit a coffee-house, who influence there preference, how much they spend etc.) .





















24 | P a g e

CHAPTER - 2

2.1 LITERATURE REVIEW

2.1.1 STORM IN THE COFFEE CUP

In the late 1990s, a silent cafe revolution was sweeping urban India. Coffee drinking was
increasingly becoming a statement of the young and upwardly mobile Indians. Coffee bars,
an unheard concept till a couple of years ago, had suddenly become big business and coffee
bars like Barista, Cafe Coffee Day (CCD) and Qwiky's had become quite popular.
Though being a late entrant, Barista took elite India by storm. With 105 branches in 18 cities
and annual sales of Rs. 650 million, Barista was clearly the leader in the coffee retailing
business in 2002. What made Barista different from others was the ambience at its outlets.
Barista recreated the ambience and experience of the typical Italian neighborhood espresso
bars in India. The interiors were bright, trendy and comfortable. One could play chess, read
books, listen to music, enjoy the arts, surf the Net and sip an Espresso Italiano, or Iced Cafe
Mocha. CCD, which was started in 1996, had opened 50 outlets in 9 cities by 2002, with
annual sales of Rs. 100 million.
CCD also provided a relaxing ambience with eye-catching crockery and bright dcor. The
paintings on the wall were made by young artists, with the objective of promoting young
talent. CCD outlets also promoted their paraphernalia such as caps, T-shirts, and coffee mugs.
With 21 outlets in 5 cities and annual sales of Rs. 43 million in the year 2002, Qwiky's was
also a strong contender in the growing coffee business. It positioned itself as a place to hang
out and spend time leisurely. One could order an Espresso, Cappuccino, Lattes, Mochas,
Panini et al. One could even choose between frothy or intense, icy or piping hot, and aromatic
and exotic coffee. It also had books and magazines outlets and a casual wear under the
Qwiky's brand. Though CCD was the first to enter the coffee retailing business in India, it
failed to leverage on the first mover advantage. By 2002, Barista, which entered the market in
2000, and Qwikys, which entered in 1999, had 105 and 21 branches respectively. CCD had
only 50 branches. According to company sources, the reason for its slow growth was the time
taken to complete the back-end operations of its retail outlets. Analysts felt that Barista and
Qwiky's also experienced similar problems but they grew faster than CCD because they
realized that running cafe is a hospitality business and one needs to create the right ambiance
and experience and back it up with strong logistics.
25 | P a g e

In 2002, competition in the coffee retailing business was beginning to heat up with all the
three players looking for opportunities for growth.
Barista was opening a store every nine days and it also seemed to be better placed than its
competitors due to the strong support of Tata Coffee, which had a 34.3% stake in Barista.
However, analysts felt that it wouldn't be easy for Barista to maintain its leadership position
in future. By 2002, Barista had spent Rs 600 million to establish its chain of 105 stores and in
the process had accumulated losses. Though its operating profit was 17% of the sales, it was
not expected to turn black soon because of its rapid expansion plans. Also as Barista imported
everything from chairs to coffee machines to coffee beans, any depreciation in the value of
the Indian Rupee would make imports costlier and squeeze its margins further.

2.1.2 A NOTE ON THE COFFEE INDUSTRY IN INDIA

India ranks 5th among the top 10 countries of the world accounting for 3 % of the total world
coffee production and exporting 80 % of the total produce.
It is also the fifth largest coffee producer. Being a traditional tea consuming country, the
average coffee consumption in India was quite low at 10 cups per person annually (Refer
Table I). People in the Northern region preferred instant coffee in contrast to the people in the
south, who preferred traditional filter coffee.
Coffee, a household beverage confined to South India became quite popular in the late 1990s.
The late 1990s saw the emergence of coffee chains. Moreover, there was a transition from the
conventional and out dated coffee house to a more sophisticated and trendy coffee bars. In the
late 1990s, non-traditional coffee retailing outlets like coffee bar chains, coffee vending
machines, and specialty coffee powder shops offered exciting growth opportunities. They
constituted 50 % of sales in the Indian Coffee Industry. The growth of these specialty and
gourmet coffee shops was a result of the economic and demographic changes, higher
disposable incomes, increasing number of workingwomen, and increasing awareness and
exposure to global trends.








26 | P a g e



2.2 LITERATURE REVIEW 2

2.2.1 Branded coffee houses a rage in India

Anuradha Shenoy in Mumbai | July 16, 2005
Go to any of the mushrooming coffee bars and what do you find? The menu displays not just
a range of coffees, but an ever increasing list of soft drink concoctions and other beverages
mingling with snacks and mini-meals.
Strange? Maybe. With more than 500 coffee cafes in the country, up from 175 in 2002,
coffee was the most happening beverage. And the players, from Barista Coffee Co to
Bangalore-based Cafe Coffee Day, were opening outlets practically every weekend.
So far so good. Today, at Barista Coffee Co, coffee sales are much less than its other
offerings.
Sixty per cent of its sales are brewed from teas, smoothies, food items and merchandise. At
Bangalore-headquartered Cafe Coffee Day, 70 per cent of its sales come from beverages
including coffee. At Cafe Mocha, coffee sales are up from 3 per cent three years ago when it
first started to 17 per cent today.
What does all this mean? Coffee sales have not really stirred the storm they were expected to
be. But this has not deterred the coffee cafes from stretching their brands.
Internationally, coffee sales are virtually stagnant, moving ahead at 0.5 per cent. According to
a 2005 research report by the United Nations Food and Agriculture Organization, India's
coffee consumption has been chugging along at 2.2 per cent per annum.
With consumption pegged at 70,000 tones, branded coffee accounts for 53 per cent,
unbranded 40 per cent, with cafes constituting 7 per cent. Industry estimates peg the annual
growth rate of the coffeehouse segment at a half percent clip.
Despite these figures, if coffee houses are extending their network, according to Sunalini
Menon, chief executive of CoffeeLab, which provides evaluative services for coffee
manufacturers, it is because they provide more than just coffee.
"They are a venue to socialise, finalise business deals, conduct interviews, listen to music and
read in," she says.
According to Cafe Mocha's CEO, Dharmesh Karmorkar, call centres have been one of the
growth triggers. "Before the advent of night-time work enterprises, a coffee house's customer
was limited to individuals who worked daytime hours. Now, in addition, we have an entire
group of professionals who work a night-time shift."
27 | P a g e

There is also the issue of small town individuals moving away from their families to larger
cities for career opportunities that were not present before.
"This individualistic culture promotes the need for a venue to socialise with others of their
age who share their interests," he adds.
Barista's COO, Brotin Banerjee relies on the power of the youth and their increasing
disposable income.
"Several Indian students begin working at a very young age, sometimes right after high
school. They have the purchasing power," he says.
That's why with a Rs 20-crore (Rs 200 million) outlay, Barista is hoping to be an
international brand. Plans underway include 35-40 Baristas in Nepal, Malaysia, Indonesia,
Turkey, Iran and Bahrain.
Its strategy will centre around targeting college students in the age range of 16-20 to "catch
them young" and induce "lifetime loyalty". Barista also plans to start "platforms on the go" in
partnership with petroleum companies to cater to consumers travelling between cities.
Its current tally is 122 stores, which include Barista espresso bars, shop-in-shops and corner
stores.
Also, from 230 stores, Cafe Coffee Day's senior general manager Sudipta Sengupta plans to
add an additional 270 stores in the next three years.
"We will incorporate health foods like herb breads, sunflower seeds, multigrain breads and
bran sandwiches. We will also introduce a premium coffee and offer merchandise such as
filters, mugs, and message T-shirts," she says.
In a bid to take coffee to the masses, the new outlets will be in towns, which have a
population of one lakh and above.
While Barista and Cafe Coffee day are targeting mass-based consumption, Cafe Mocha, with
only nine franchise outlets, is focusing on imported coffees and an upmarket clientele.
It wants to push its stores from nine to 65 in the next three years. There are plans to open
franchised stores in Indonesia, Singapore, Sri Lanka and two in the Middle East.
In addition, the chain plans to invest Rs 3 crore (Rs 30 million) in human resource
development and Rs 8 crore (Rs 80 million) on the development of new menu items every
year.
Explains Karmorkar, "We're focusing primarily on knowledge building and management and
the expertise that our chefs and staff bring to the table."
28 | P a g e

Clearly, despite coffee consumption stagnating, coffee houses are finding it lucrative to add
value activities -- book clubs, film clubs, social activities, merchandise, food -- as the main
plug. Drink to that!

2.3 LITERATURE REVIEW 3

2.3.1 An Indian sector on the upswing: coffee shops
By M. A. Winter
The Coffee retailing sector in India is booming today, with several companies active in the
market. Some are local entities, some have come from abroad and have tied up with local
companies, and some seem to prepare themselves for an entry sooner or later. The market
growth is expected to be 20 to 30% annually in the next couple of years. The first foreign
coffee retailer who arrived was Costa Coffee, a chain of coffee shops owned by leisure and
hotel group Whitbread Plc from UK. Costa Coffee, together with the Devjani Group as the
first franchisee, opened the first outlet at Delhis Connaught Place in 2005. Now, two years
later, Costa operates already a total of 34 stores. Besides Delhi, Costa is present in cities like
Mumbai, Agra, Jaipur and Lucknow. The plan is to have 200 stores by the end of 2010, a
spokesperson of Whitbread Plc told FoodIndustryIndia.com. Starbucks Corp from the US is
another well known coffee chain, a big player in many markets around the world. For India,
there were plans to enter the market with a partner. Now it seems that these earlier plans have
been modified. In July, the company has put on hold its earlier plans to enter India by the end
of 2007, without giving a reason. Speculation was on that the government might not have
allowed the joint venture with an Indian partner based in Indonesia on behalf of the foreign
direct investment regulation for single-brand retailing. Now, a few days back, Starbucks has
agreed a multi-country deal with its North-American partner PepsiCo by which PepsiCo
would sell the Starbucks ready-to-drink beverages in international markets, including those
countries that do not have Starbucks outlets, like India. Basically, the agreement provides
Starbucks the option to bring at least a part of its product portfolio very quickly to Indian
retail shelves. Almost in the same time when Starbucks was making and pushing its plans for
India, Lavazza from Italy, in Italian eyes the mother country of all coffee drinkers, rushed
ahead and took over coffee chain Barista and Fresh & Honest for an amount of reportedly Rs
480 crore from Chennai-based Sterling Infotech Group in May this year. Some media
reported that Amalgamated Bean Coffee Trading Ltd (ABCTL), which owns Indias biggest
coffee-cafe chain Cafe Coffee Day, was also interested to buy Barista, but there was no
29 | P a g e

confirmation. Barista is a major player in the premium sector of the Indian sub-continent,
with 150 cafs in Asia, of which 132 are in India alone. By far the biggest player in the
market already is Cafe Coffee Day, a coffee chain which is part of the Amalgamated Bean
company. Run by venture capitalist V. G. Siddhartha, Cafe Coffee Day operates 483 outlets
at present, mainly in India, but also some in Pakistan and two recently opened in Vienna,
Austria. They plan to have a total of over 2,000 outlets over the next four-and-half years,
their CEO has said earlier. Cafe Coffee Day has raised equity capital from Sequoia Capital to
finance its rapid expansion. Media reported an amount of US$ 35 million, and an additional
target amount of US$ 50 million which would be currently sought. ABCTL is executing an
interesting business model, as it is involved in the coffee business right from growing,
processing and selling in different forms and formats like export of green coffee, selling of
packed coffee, and selling of hot coffee in various retail outlets and vending machines.






















30 | P a g e

OBJECTIVE

RESEARCH OBJECTIVE Customer Perception and Attitude towards retail coffee
chains a study in Delhi, w.r.t Barista, CCD, Nescafe

SUB OBJECTIVES:
1. Preference in choice of Coffee chain
2. Factor affecting the customer choice of coffee chains

3. Comparative analysis between different coffee chains

Identifying the most popular coffeehouse.




31 | P a g e

RESEARCH METHODOLOGY

While making a study we very often look for what type of research methodology is to be used
in this type of study. For implementation of a proper research methodology we have to first
understand the meaning of research.
Research is a scientific as well as systematic process, which includes defining and redefining
the problem to develop hypothesis, to collect and define the information/data, to analysis the
information and bring out the results.
The first step in research after defining the research problem and objectives is data collection.
The word data means any raw information, which is either quantitative or qualitative in
nature, which is of practical or theoretical use. The task of data collection begins after a
research problem has been defined and research design chalked out. While deciding about the
method of data collection, the researcher should keep in mind that there are two types of data
primary and secondary.

1. Primary data: -This is those, which are collected afresh and for the first Time, and
thus happen to be original in character. There are many ways of data collection of
primary data like questionnaire, observation method, interview method, through
schedules, pantry Reports, distributors audit, consumer panel etc.
2. Secondary data: -These are those data, which are not collected afresh and are used
earlier also and thus they cannot be considered as original in character. There are
many ways of data collection of secondary data like publications of the state and
central govt., website, journals, companies reports, reports prepared by researchers,
reports of various associations connected with business, Industries, banks etc. For this
project secondary data was taken from companys reports and websites.

This project is a survey project. In this project first the secondary data will be collected
through websites, magazines and journals. Based on this information a questionnaire will be
designed for the target respondents. The primary data collected through this fieldwork will be
analyzed and used to generate results.

Target respondent the target respondent are the people who have visited any of the
coffeehouses in Delhi.
32 | P a g e

RESEARCH DESIGN

Type of research: Descriptive research

Sources of data: Primary Data & Secondary Data

Primary Data - Questionnaire
Secondary Data magazines, Websites, Journals

Data collection method: Survey Method

Survey instrument: Questionnaire

Sampling technique: Convenient sampling

Sample size: 50

Sample unit: People who visit coffee houses in Delhi

Area of survey: Delhi

FUTURE OF COFFEE HOUSES IN INDIA

The biggest players in India are CCD and Barista. Most of the coffee houses do their
Branding via the following attributes-
1. Experience
2. Customer service
3. Variety/ Variants of Coffee
4. Taste
5. Preparation - in terms of hot/cold
33 | P a g e

CCD plans to set up 'highway cafes' and 'drive through cafes' to attract customers. These
cafes would be set up at various petrol pumps and the company is seeking tie ups with all
leading petroleum companies in this regard. This will increase their brand image and increase
of Point of Sales.
Nescafe outlets in select cities are positioned on the lines of its Nescafe brand's `taste that
gets you going' theme. Caf Nescafes offer beverages priced as competitively as Rs 10.
SCOPE

1. With increase in FDI, we will see more global players in India. Gloria Jeans was also in
news. Starbucks is a new entry.
2. Other FMCG giants such as Hindustan Lever and Tata Coffee will sooner or later venture
into the coffee chain business

In this industry, the tangible differentiators are very few. Its only the intangible as mentioned
above creates a difference.
Concepts like Sensory Branding by Martin Lindstorm work here as coffee chains can cover
the aspect of smell, sight, sound (music inside the store), taste and touch of the furniture
inside.















34 | P a g e

CHAPTER-3

DATA ANALYSIS & RESULT




N


MINIMUM


MAXIMUM


MEAN

STD.
DEVIATION

BARISTA
CCD
NESCAFE

VALID N
(LIST WISE)


50
50
50

50

1
1
1


3
3
3


1.9200

2.2800

1.8000





.77
.72
.88

Table 3.1
Coffee house visited the most

Chart No. 3.1
coffee house visited the most
barista
ccd
nescafe
35 | P a g e


Descriptive Statistics

Table 3.2

Chart no. 3.2
Usually, People prefer drinking coffee precisely on social occasions and then because
of their drinking habits.




N

MINIMUM

MAXIMUM

MEAN
Release stress
Social occasions
Drinking habit
refreshment
50
50
50
50
1
1
1
1
4
4
4
4
2.4400

3.0200

3.6000

2.1000

why you drink coffee?
release stress
social occasions
drinking habit
refreshment
36 | P a g e


Descriptive Statistics

Table 3.3

Chart No. 3.3
Most preferred place for drinking place for coffee is caf then food court followed by home
and then ciaos.




N

MINIMUM

MAXIMUM

MEAN
Home
Caf
Food Court
ciaos
50
50
50
50
1
1
1
1
4
4
4
4
2.4400

3.8200

3.2000

2.1000

Place
Home
caf
Food Court
caeos
37 | P a g e


Descriptive Statistics
N MINIMUM MAXIMUM MEAN
Variety of
coffee

Taste of
coffee

Quality of
coffee

Price of
coffee

Ambience
of outlet
Customer
service

Location of
outlet

Offers,
discounts,
coupons etc

Side order
menu

Time for
service

Valid N (
listwise )
50


50


50


50


50


50

50


50




50


50


50
2


3


3


1


2


1

1


1




1


1


1
4


4


4


4


4


4

4


4




4


4









3.3200


3.6600


3.6400


2.4400


3.1800


3.0200

2.6000


2.1000




2.4800


2.7800

Table 3.4

38 | P a g e


Chart no. 3.4
While visiting a coffee house, taste of coffee is the most important factor for choosing the
coffee house, because it has the maximum mean of 3.66

Descriptive Statistics
N MINIMUM MAXIMUM MEAN
B_variety
C_variety
N_vareity
Valid N
(listwise)
50
50
50
50

2
2
1
4
4
4
3.2600
3.3600
2.2000

Table 3.5
FACTORS
Variety
Taste
Quality
Price
39 | P a g e




Chart No. 3.5
Out of the variety of coffee offered by Barista, CCD and Nescafe, CCD has good variety
than others, which has a mean of 3.36

Descriptive Statistics
N MINIMUM MAXIMUM MEAN
B_taste
C_taste
N_taste
Valid N
( list wise)
50
50
50
50
2
2
1
4
4
4
3.3000
3.3800
2.6400

Table 3.6
VAREITY
barista
CCD
nescafe
40 | P a g e



Chart No. 3.6
The taste of coffee of CCD has a mean of 3.38, which means than taste of coffee offered by
CCD is better than other coffee houses.

.Descriptive statistics
N MINIMUM MAXIMUM MEAN
B_quality
C_quality
N_quality
Valid N
( list wise)
50
50
50
50
2
2
1
4
4
4
3.3600
3.3000
2.4600

Table 3.7

TASTE
BARISTA
CCD
NESCAFE
41 | P a g e



Chart No. 3.7
The table shows that the mean quality of coffee offered by Barista is more than the other 2
coffee houses; this means that Barista offers the best quality in coffee
Descriptive Statistics







Table 3.8

QUALITY
BARISTA
CCD
NESCAFE
N MINIMUM MAXIMUM MEAN
B_price
C_price
N_price
Valid N
( list wise)
50
50
50
50
1
2
2
4
4
4
2.1800
2.7400
3.1400
42 | P a g e



Chart No. 3.8
The price offered by Nescafe is the most economic, which can be seen by the mean which is
more than the other two coffee houses.
Descriptive Statistics
N MINIMUM MAXIMUM MEAN
B_ambeince
C_ambeince
N_ambeince
Valid N
( list wise)
50
50
50
50
2
2
1
4
4
4
2.9000
3.2200
2.4800

Table 3.9
PRICE
BARISTA
CCD
NESCAFE
43 | P a g e


Chart No. 3.9
The ambience of CCD is better than the other two coffee houses. The mean of ambience is
3.22
Descriptive statistics
N MINIMUM MAXIMUM MEAN
B_customer
C_customer
N_customer
Valid N
( list wise)
50
50
50
50
1
2
1
4
4
4
2.7000
2.9200
2.2800

Table 3.10

AMBEINCE
BARISTA
CCD
NESCAFE
44 | P a g e


Chart No. 3.10
The customer service offered by CCD is better than the customer service offered by other two
coffee houses.
Descriptive Statistics
N MINIMUM MAXIMUM MEAN
B_location
C_location
N_location
Valid N
( list wise)
50
50
50
50
1
1
1
4
4
4
2.5200
3.9200
2.5400

Table 3.11
CUSTOMER SERVICE
BARISTA
CCD
NESCAFE
45 | P a g e


Chart No. 3.11
The location of coffee house outlet of CCD is better than the other two coffee houses.
Descriptive Statistics
N MINIMUM MAXIMUM MEAN
B_offer
C_offer
N_offer
Valid N
( list wise)
50
50
50
50
1
1
1
3
4
4
1.8400
1.9800
2.1600

Table 3.12
LOCATION
BARISTA
CCD
NESCAFE
46 | P a g e


Chart No. 3.12
The discounts, offers and coupons offered by Nescafe is better in comparison to the other two
coffee houses.
Descriptive Statistics

N

MINIMUM

MAXIMUM

MEAN
B_menu
C_menu
N_menu
Valid N
( list wise)
50
50
50
50
1
1
1
4
4
4
2.4600
2.6400
2.8200

Table 3.13
OFFERS
BARISTA
CCD
NESCAFE
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Chart No. 3.13
The side menu of Nescafe is better than the other two coffee houses. It includes Maggi
noodle which is the hot favourite in kids and youngsters.
Descriptive Statistics

N

MINIMUM

MAXIMUM

MEAN
B_time
C_time
N_time
Valid N
( list wise)
50
50
50
50
1
1
1
4
4
4
2.7600
2.7400
2.6000

Table 3.14
MENU
BARISTA
CCD
NESCAFE
48 | P a g e


Chart No. 3.14
Barista is better in time taken to serve the consumer. It has a mean of 2.76 which is higher
than the mean of other two coffee houses.

Descriptive Statistics

N

MINIMUM

MAXIMUM

MEAN
STD.
DEVIATION
Exe_b
Exe_c
Exe_n
Valid N
( list wise)
50
50
50
50
2
2
1
4
4
4
3.1800
3.4600
2.7000
.66055
.54248
.76265

TIME FOR SERVING
BARISTA
CCD
NESCAFE
49 | P a g e

Table 3.15

Chart No. 3.15
The experience was enjoyed most in the settings of CCD, followed by Barista and Nescafe
respectively. The mean is 3.46
Descriptive Statistics

N

MINIMUM

MAXIMUM

SUM

MEAN
STD.
DEVIATION
BARISTA
CCD
NESCAFE
Valid N
( list wise)
50
50
50
50
1
1
1
3
3
3
96
114
90
1.9200
2.2800
1.8000
.77828
.72955
.88063

Table 3.16

EXPEREINCE
BARISTA
CCD
NESCAFE
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Chart No. 3.16
Barista 96
CCD - 114
Nescafe 90
The results show that CCD is ranked the first, followed by Barista as second, and Nescafe is
third in ranking.

Descriptive Statistics
N MINIMUM MAXIMUM MEAN STD.
DEVIATION
Own instinct
Family
Friends
Work Group
Valid N
( list wise)
50
50
50
50
50
1
2
2
1
4
4
4
4
3.2000
3.0800
3.4000
2.8600
.75593
.72393
.57143
.85738

RANKING
BARISTA
CCD
NESCAFE
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Table 3.17

Chart No. 3.17
The decision making for visiting a coffee house is highly influenced by peer group or friends.
Descriptive Statistics

Table 3.18

DECISION MAKING
INSTINCT
FAMILY
FRIENDS
W. GROUP
FREQUENCY % VALID
PERCENT
CUMULATIVE
PERCENT
refreshment
get together
dating
work
total

19
19
5
7
50
38.0
38.0
10.0
14.0
100.0
38.0
38.0
10.0
14.0
100.0
38.0
76.0
86.0
100.0
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Chart No. 3.18
The reason to visit a coffee house is usually for refreshment or get together with friends. 19
respondents voted for both refreshments and get together with friends.





















REASON TO VISIT
REFRESH
GATHERING
DATING
WORK
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CONCLUSION AND RECCOMENDATIONS
Cafe Coffee Day: - This has been positioned for younger generations usually college goers
and young people. With outlets strategically positioned near colleges, software companies
and places where they can target customers. On analysis it can be seen that majority of the
customers are of 18-30 age group. People prefer coffee day location for treats.

Barista Coffee: - Positioned for Executive class of customers who prefer premium taste but
not too high prices. Barista coffee customers are particular about taste and a peaceful
atmosphere. Usually these outlets have dim lighting and exclusive treatment.

Nescafe: - Positioned for youngsters who like to have a sip of coffee and have a chat with
their friends at a really low price. The main emphasis is on the quality of coffee and not on
the ambience. They mainly target the mass population. With the side menu as tempting as
Maggi Noodles, they are a hot favourite among young couples.



























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ANNEXURE 1

QUESTIONNAIRE

PERSONAL INFORMATION

Age: less than 20 _________
21 30 _________
31 45 _________
46 and above _________

Household Income: less than 2 lakh _________
2-6 lakh _________
6-10 lakh _________
10 lakh and above _________

Gender: Male _________
Female _________

Please tick the relevant answer

Q1. For what reasons would you drink coffee? (

i. Release Stress
ii. Refreshing
iii. Social Occasions
iv. Drinking Habit
v. Other (Please Specify)

Q 2. Where do you drink coffee most often?

i. Home
ii. Caf
iii. Coffee shop
iv. Food court
v. Other (please specify)


Q3. How frequently do you visit a coffee house?

i. Every day ______________
ii. Alternate day ______________
iii. Weekly ______________
iv. Fortnightly ______________

Q4. Out of the 3 coffee houses, which one do you visit the most?
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i. Barista _______________
ii. CCD _______________

iii. Nescafe _______________


Q5. How important are the following factors while visiting the coffee houses?

Factors Very
Important

Important
Less
Important
Not
Important
Variety of coffee
Taste of coffee
Quality of coffee
Price
Ambiance
Customer Service
Location
Offer/disc./coupons
Side order menu
Time for serving

Q6. Rate the following coffee houses on the following factors on a scale of 1 4 (1-poor, 2-
fair, 3-good, 4-excellent)

Factors

Barista

CCD

Nescafe
Variety of coffee
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Taste of coffee
Quality of coffee
Price
Ambiance
Customer Service
Location
Offer/disc./coupons
Side order menu
Time for serving


Q7. Rate your experience with the following coffee-chains on the following scale



Very
satisfied

Satisfied

Less
satisfied

Not satisfeid
Barista
CCD
Nescafe

Q8. Rank the following coffee chains in order of preference. 3 being most preferred, 1 being
less preferred
i. Barista _______________
ii. CCD _______________
iii. Nescafe _______________


Q9. How important are the following in your decision making for visiting a coffee house
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Q10. Your reason to visit a coffee house is-

i. Refreshment __________
ii. Get together with friends __________
iii. Date __________
iv. Work __________












Factors Very
Important

Important
Less
Important
Not
Important
Your own instinct
Family
Friends
Work Group
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Bibliography
(CCD, 2013)
(Nescafe, 2013)
(barista, 2013)