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Chapter I

Introduction to Entrepreneur
1.1 What is an entrepreneur.
Entrepreneur , is a loanword from French. It is defined as an individual who
organizes or operates a business or businesses. Credit for coining the term
entrepreneur generally goes to the French economist Jean-Baptiste Say, but in fact the
Irish-French economist Richard Cantillon defined it first in his Essai sur la Nature du
Commerce en Gnral, or Essay on the Nature of Trade in General, a book William
Stanley Jevons considered the "cradle of political economy" Cantillon used the term
differently. Biographer Anthony Breer noted that Cantillon saw the entrepreneur as a
risk-taker while Say considered the entrepreneur a "planner".

1.2 Definition
Cantillon defined the term as a person who pays a certain price for a product
and resells it at an uncertain price: "making decisions about obtaining and using the
resources while consequently admitting the risk of enterprise." The word first
appeared in the French dictionary entitled "Dictionnaire Universel de Commerce"
compiled by Jacques des Bruslons and published in 1723.
Successful entrepreneurs have the ability to lead a business in a positive
direction by proper planning, to adapt to changing environments and understand their
own strengths and weakness.
1.3 Objectives
Understand the role of entrepreneurs in the economy.
Identify the traits of successful entrepreneurs.
Think about whether they might want to be an entrepreneur.
Learn the ways entrepreneurs fund their businesses.
Evaluate the trade-off between risk and reward for entrepreneurs.

1.4 Qualities
See Opportunities.
Risk Taker
Accepts Responsibilities
Make Money
Own Boss
Must be a good learner

1.5 Characteristic
Goal orientation
Team Building
Risk Taker
Problem Solver

Chapter II
Review Literature
A.H Cole, Stated that Entrepreneurship is the purposeful activity of an
individual or group of associated individuals, undertaken to initiate, maintain
or aggrandize profit by production or distribution of economic goods or

Benjamin Higgins has highlighted entrepreneurship as Entrepreneurship
means the function of foreseeing investment and production opportunity,
organizing and enterprise to undertake a new selecting top managers for the
day to day of an operation of an enterprise.

B. C. Tandon , has described Entrepreneurship as the function of creating
something new, organizing and co-ordination and undertaking risk and
handling economic uncertainty

Chapter III
A Growth of a V.G. Siddhartha(CCF).
3.1 Introduction:
We all know the famous coffee shop in India, Caf Coffee Day. Popularly
known as Coffee Day. With Asia's second-largest network of coffee estates (10,500
acres) and 11,000 small growers, Coffee Day has a rich and abundant source of
coffee. This coffee goes all over the world to clients across the USA, Europe and
Japan, making us one of the top coffee exporters in the country. A division of India's
largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company
Limited (ABCTCL).
Personal life:
Siddhartha (now known V. G. Siddhartha) obtained a Masters degree in
economics from Mangalore University, Karnataka. He married the daughter of S. M.
Krishna, the former Chief Minister of Karnataka, Indian Minister for External Affairs
and Governor of Maharashtra.

3.2 Background:
After doing his Masters he joined J M Financial Services (now J M Morgan
Stanley) in Mumbai as a management trainee/intern in trading on the Indian Stock
Market under Mr. Mahendra Kampani. After two years with J M Financial Services,
when Siddhartha returned to Bangalore, his father gave him money to start a business
of his choice. Siddhartha bought a stock market card for Rs 30,000, along with a
company called Sivan Securities, which was renamed in 2000 as Way2wealth
Securities Ltd with vision to set "new standards in the retail financial services in
India". Its venture capital division came to be known as Global Technology Ventures
(GTV) as well as a site in the city in 1984 and turned it into a highly successful
investment banking and stock broking company.
3.3 Growth
Almost 15 years later, Siddhartha established a successful coffee business in
Karnataka. He grows coffee in Chikmagalur and exports about 28,000 tonnes of
coffee annually and sells another 2,000 tonnes locally for about Rs 350 million each
year. His coffee growing and trading company, Amalgamated Bean Company (ABC),
has an annual turnover of Rs 25 billion. Siddhartha now has 200 exclusive retail
outlets selling his brand of Coffee Day powder all over South India. ABC is India's
largest exporter of green coffee.He owns 12,000 acres (4047 ha) of coffee plantations.

He started his coffee trading company ABC in 1993, with a Rs 60 million turnover.
His company grew gradually. He bought an ailing coffee curing unit in Hassan for Rs 40
million and turned it around. Now, his company has a curing capacity of 75,000 tonnes,
which is the largest in the country.
He was the first entrepreneur in Karnataka to set up a cyber caf in 1996 (Caf Coffee
Day, a chain of youth hangout coffee parlors). Now, he has 1,407 Coffee Day Cafes in India.
Siddhartha also hopes to win the contract to take his chain to all the airports of Karnataka and
then to the rest of the country. His cyber cafes attract at least 40,000 to 50,000 visitors a
Siddhartha was awarded the Entrepreneur of the year title in 2003 by The Economic
Times for "crafting a successful pan Indian brand for a commodity business and giving
Indian consumers a new lifestyle experience that is within reach of the common man".
Amalgamated Bean Coffee Trading Company Ltd. today is the largest exporter of
green coffee from India and perhaps one of the two fully integrated coffee companies of Asia,
involved in all sectors of coffee from plantations to retailing to exports. Coffee Day Group
today is the only fully integrated and the largest coffee conglomerate in India and is credited
with creating the "coffee revolution" in India - acknowledged by the Coffee Board of India
Amalgamated Bean Coffee Trading Company Ltd.. From a handful of cafs in six cites in the
first five years, Caf Coffee Day has become India's largest and premier retail chain of cafes
with 1,438 cafes in 135 cities.

Other businesses:
Siddhartha also founded Global Technology Ventures Ltd. in 2000, a company
that identifies, invests and mentors Indian companies engaged in cutting edge
technologies. Currently,[when?] he also holds board seats in GTV, Mindtree, Liqwid
Krystal, Way2Wealth and Ittiam. GTV has now set up a global technology village on a
59-acre (240,000 m2)technology incubator park in Bangalore, which will provide office
space, communication links, recreational facilities and even a commercial centre. GTV
was valued by BankAm at $100 million last year,[when?] and is expected to have
doubled its valuation this year.[when?] It is poised to grow on the lines of Softbank of
Banana exports:
He has planted banana trees on 3,000 acres (1,214 ha) and plans to export bananas.[5]
Daffco Furniture:
He owns a furniture company called The Dark Forest Furniture Company, named
after Kathale Kaad Estate (Black Forrest), his estate in Chickamagalur, which is venturing
into furniture by building a 600,000 square feet (56,000 m2) factory in Chikmagalur,
Karnataka, which will use timber from his coffee plantations in India and a rainforest in
Guyana.It initially plans to supply furniture to Cafe Coffee Day outlets. However, the
construction of the facility is yet to begin.

A majority stake in SICAL Logistics was purchased by him. It has acquired coal
mines in New Jersey. SICAL will become one of the multibagger in coming days as per
his view.
3.4 Awards:
The Economic Times Brand Equity survey 2008
Indias most trusted brands ranked No. 2 in the Food Services+ segment
CCD ranked as No. 31 in the top 50 service brands
"Best Coffee Bar" award from Times Food Guide 2007 New Delhi
"Best Coffee Shop" award Times Food Guide 2007 Mumbai
Awaaz Consumer Awards 2006 Best Coffee Shop Brand
V G Siddhartha was voted as the "Entrepreneur of the Year" by Economic Times in
2003 for crafting a successful pan Indian brand from a commodity business and
giving Indian consumers a new life style experience that is within the reach of the
common man.

3.5 About the Company:
A.) History:
Amalgamated bean coffee trading company (ABCTC) is a
Chikmagalur based company which grows coffee in its own estates of 12,000 acres (4249
hectares).It is the largest producer of arabica beans in Asia exporting to various countries
including USA, Europe and Japan.
Caf Coffee Day was started as a retail restaurant arm of ABCTC in 1996. The first CCD
outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka. It rapidly
expanded across various cities in India adding more stores with more than 1000 cafs open
across the nation by 2011.
In 2010, it was announced that a consortium led by Kohlberg Kravis Roberts would invest
INR 1,000 crore (USD 200 million) in Coffee Day Resorts, owned by the company. The
same year, the logo was changed to the current logo, which the company stated was to
showcase the chain as a place to talk. This was done with major changes in the layout of the
stores, including the addition of lounges and a total revamp of the interiors.
B.) Outlets:
As of December 2013, there are 1534 outlets across 28 states of India.[9] Cafe Coffee
Day has also recently expanded outside India with its outlets in Karachi, Vienna, Dubai and

C.) Subsidiaries:
In June 2010, CCD acquired Caf Emporio, a caf chain from the Czech
Republic. Cafe Emporio has 11 cafs in Czech Republic. While 7 of them are in
Prague, 1 is in Brno and Olomouc and 2 are at Freeport-Hate.
Cafe Coffee Day's divisions include:
Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail
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 fast-moving consumer goods packaged coffee division
Coffee Day B2C Plant, Coffee vending machine manufacturing division
D.) Awards:
Cafe Coffee day was named "most popular hangout joint amongst youth" at
the 3rd Global Youth Marketing Forum in 2011. The Indian Hospitality Excellence
Awards also named it "India's most popular coffee joint" in 2011.
E.) Basic Fact:
Caf cofee day poineered the caf concept in india in 1996.
It is a rupees 750 crore iso certified company.
It is indias one of the leading cofee exporters with the clients across usa
europe and japan
F.) Factors determining demand for CCD:
Afforbable price as compared to competitors.
Strong youth orientation.
Social place to relax.
Customer orientation.
High rated tastes.
Value for money
Variety and wide choice
Bandwagon effect AND Demonstration effect
good hospitality
Strong brand image
Coffee drinking fashion
Wide network of branches, stratergic positioning
Status factor for middle class youth
Quality products
Friendly and Stylish social hub
Increase in disposable income
Consistent service at all outlets

Competitive coffee outletes like mochas, barista, all have the same target audience
The branches of all competitors are located close to each other , thus eating into
each others market
Low degree of product differentiation
Substitute effect

Chapter IV
Case Study
Cafe Coffee Day Brand Strategy in India
This case study covers the following issues:
Examine and analyze Cafe Coffee Days brand strategy in India, its success and future
4.1 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 the
Exclusive 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 caf:
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
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)

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. (Update: By
Jan 2012, CCD had approx 1,200 cafes and 900 Express outlets) 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
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

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. In
India, the per capita consumption of coffee is around 85 grams while it is six kgs in the US.
Per Capita Coffee Consumption in kgs across the World
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
Coffee retailers cover only 170 cities out of 3,000 in India (early 2011 reports). 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
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.
CoffeeDay Wakecup:
In January 2012, CCD launched its own brand of coffee maker called CoffeeDay
Wakecup targeting all coffee lovers. The product will be marketed at its 1125 cafes and 900
Express outlets. Competitor Lavazza had launched its own portable coffee machines
(Lavazza Blue 850) already but targeted the premium segment with the price being higher
than CCDs machines.
In February 2012, Caf Coffee Day announced plans to install interactive touch
screen tablets in 500 cafes across the country.
CCD is at the heart of the cafe culture wave that has swept across metropolitan cities
It has tremendous demand and following but it still needs to work on creating a strong
brand image and customer loyalty, also there is a constant need to move and evolve
for there is cut throat competition in this sector
It has great potential to be one of the leading coffee shop brands in India and a brand
to reckon ..

Better dcor, less congested, more spacious.
Better advertising and promotional campaigning.
Focus on other age groups apart from youth.
Better Discounts and offers.
Build customer loyalty

How can Caf Coffee Day meet the Starbucks challenge?
November 28, 2013:
Today, the coffee chain market is more than Rs. 1,000 crore and is growing at almost
30 per cent each year. The market is dominated by a few brands with CCD the largest in
terms of turnover and the number of outlets in India, followed by Barista a distant second.
Other players are Costa Coffee, Mocha, Coffee Bean & Tea Leaf and Gloria Jeans.
Currently, India has about 1,800 coffee outlets, or cafes, and business sources claim India can
accommodate another 2,700 cafes. This seems plausible given that, against global per capita
coffee consumption of 4 kg a year, India stands at 0.82 kg.
The Amalgamated Bean is among Indias top two coffee producers and exporters,
with 10,500 acres of coffee plantations in Chikmagalur. It produces 7,000 tonnes of coffee
every year and sources another 35,000 tonnes from other plantations. About 25,000 tonnes
are exported and 3,000 tonnes used in CCD cafs.
The company started with its first store in Bangalore in 1996. It took six years to reach 35
outlets across the country by 2002.
However, by 2008 CCD had opened 595 outlets. And in 2012, the count stood at 1,400. In the
same period it went from zero to a Rs. 800-crore turnover.
Currently the company has three formats: CCD, CCD Lounge (Premium Format), and CCD
Square (single-origin coffee, from one estate, not blended).
In addition to this, the company has 900 CCD Express (kiosks for take-away) and 16,000
vending machines in offices.
CCD had a clear vision that the outlets would not be coffee-drinking places. They would be
the perfect hangouts for young people and a place for occasional casual meetings for
Therefore, the business model was built towards enabling CCD to be a good hangout place,
both in terms of its ambience and the pricing.
The philosophy of the brand is well captured in the tag line A lot can happen over coffee.
While all was going well for CCDs, Starbucks with its 50:50 joint venture with Tata Global
Beverages, entered the Indian market in its second attempt.
Starbucks started in 1971 with one outlet but today, with more than 15,000 stores in 50
countries, Starbucks is the premier roaster and retailer of speciality coffee in the world. The
company in India, called Tata Starbucks Ltd., launched its first outlet in Mumbai in October
Starbucks expanded its presence to Delhi in January 2013 by opening two outlets at Terminal
III of the Indira Gandhi International Airport and later one in Connaught Place. Initially,
Starbucks opened a combination of standalone outlets located at malls, airports, metro
stations, and commercial complexes. The company plans to expand its retail footprint in India
by opening outlets in hospitals, near gyms or health stores, educational institutions and
corporate campuses.
The decision to open outlets inside Tata-owned retail stores and properties would depend on
the brands premium positioning. As of June 2013, Starbucks operates 15 outlets in two
cities. The company plans to have 50 outlets in India by the end of 2013.
The business head at CCD has various questions on his mind.
Should CCD even recognize the entry of Starbucks as the latter is in a far more
premium segment than CCD?
Would the brand image of Starbucks just be of one-time novelty value or will it be
able to shift consumers to a more premium concept in the long term? Therefore,
should CCD react? And, if yes, how ?
You are the head of Marketing at CCD and you have been asked to recommend
insightful marketing inputs in this scenario with a special focus on the strategic
direction for the brand. As both the companies in question are live companies, you
can gather additional information on their current strategies from secondary research.
(The writer, an alumnus of IIM Ahmedabad, runs Brand Vectors, a marketing
consultancy. This case has been written purely for student analysis and does not claim
factual accuracy. The figures, drawn from secondary research sources, are used only as
inputs for the respondents to devise strategy. The writer does not claim to have any first-
hand information from the companies mentioned here.)

coffee-day-meet-the-starbucks-challenge/article5397467.ece this article was
published on November 28, 2013.

(This article was published on November 28, 2013)