International Marketing

Project on Coffee Caf

launch in Norway

Prepared by:
Group
1

Country Analysis
Country: Norway
Capital: Oslo
History:

9th to 11th century was Viking kings period

From 1387 Norway was under Denmark
By 1586 Norway become part of Danish Kingdom
In 1814 Norway become part of Sweden
1905 Sweden recognize Norwegian freedom
Area: 323802 sq km
Natural Resources:
petroleum, natural gas, iron ore, copper, lead, zinc, titanium, pyrites, nickel, fish, timber,
hydropower
Environmental issue:
water pollution; acid rain damaging forests and adversely affecting lakes
2

Demography
Population:48,85,240 (2010) Population growth:0.329%
Major City: Oslo ( 8,75,000)
Language: Bokmal ,Nynorsk and Sami
Religion :
church of Norway 85.7%, Pentecostal 1%, Roman Catholic 1%, other Christian 2.4%,

Muslim 1.8%, other 8.1% (2004)

Birth Rate:10.84/1000

Death Rate:9.24/1000 (2011 ,July)

Life expentency:80.2
Health Expenditure: 9% of GDP
Education Expenditure: 6% of GDP Literacy Rate : 100%
3

Economic Environment
GDP:$414.5 billion (2010 est.) Growth rate:0.4%(2010)
Budget surplus:11.4%(2010)
Unemployment rate:3.6%
Inflation rate:2.5%
Export:

petroleum and petroleum products, machinery and equipment, metals,

chemicals, ships, fish
Import:
machinery and equipment, chemicals, Coffee, metals, foodstuffs
Per capita income: 72300$
Main Industries :petroleum and gas, food processing, shipbuilding, pulp
and paper products, metals, chemicals, timber, mining, textiles, fishing
4

Political and legal environment:

Government type:constitutional monarchy
Legal system:mixed legal system of civil, common, and customary

law; Supreme Court can advise on legislative acts

Head of government: Prime Minister Erna Solberg
Cabinet: State Council appointed by the monarch with the
approval of parliament
Main political party:Christian People's Party, centre party, Labour
party

Reason for selecting Product &

Company for that market
Company: Caf Coffee Day
Product: Coffee Caf
Reason for selecting caf coffee shop:
There are many reasons for selecting this product
1: There no big competitor in the market
2: Norwegian coffee consumption is very high
3:Norway import coffee from India
4:Ability to pay high price

4 ps of Caf Coffee Day

Product
Wide range of products appealing to Indian coffee and snack lovers
Indian taste
Eatables adapted to Indian taste buds like samosa, biryani, masala sandwich, tikka

sandwich etc. Indian taste along with classic coffee

Merchandising includes funky stuff like t-shirts, caps etc.
People
People at C.C.D. believe that People are hired for what they know but fired for how
they behave
Motivation and personal skill are laid emphasis upon.
Process
Order process - Based on services (Customer read menu and order).
Flexible delivery process (Customer can go directly, take the order placed or order
delivered on his table).
7

 Sales Promotion
Offer coupons, Gifts vouchers, Caf Citizen Cards
Caf Beat- an in-house magazine.
Tie-up with World Space & Micro sense to provide satellite connectivity
Physical Evidence
Logo, Colours, Images
RED signifies leadership, vitality and passion . The GREEN signifies coffee

growing heritage and the coffee plantations that they own. WHITE SWIRL
signifies purity of purpose, invigorating properties of growing coffee.
Signifies that Caf Coffee Day pioneered the caf concept in India way back in
1996.C.C.D. will like to own the word caf in the minds of its customers.
Dcor & Architecture
Literature New Logo
Dress Code

Key success factor

USP of brand is its considered a highly affordable brand.
Excellent brand name and brand visibility
Huge young crowd as target group
Excellent ambience and service
Over 1000 outlets and 300,000 visitors per day
It produces/grows the coffee it serves hence reducing the cost
Products of extremely good quality and taste.
Its a youth oriented brand , hence huge potential since 40 %

population is below 20
Variety and wide choice
good hospitality
9

International Industry
analysis
Annually consumption:40,000 tones
Per capita consumption 10.7 kg per year in 2010
Key supplier of coffee:, Peru, Guatemala, Brazil and Papua,

New Guinea, India. East Timor, and Bolivia

Key factor of coffee in Norway
Quality of cup
Consistent and reliable supply
Price relative to conventional coffee
Awareness of consumers about these coffees
10

Details of Competitors
There are three major player in Norwegian market
1:Friele
2:coop caf
3: Tim Wendelboe
These three major player have approximately 50 to 55%

Market share in Norwegian coffee market

Friele is Domestic player and Coop and Tim Wendelboe are
international player
45 to 50% market share is cover by small player in
Norwegian market
11

Contd...
Friele:
Friele is the largest Coffee shop company in Norwegian

market
Company was started in 1799
Friele coffee brands have a total national market share of
35%
Friele have main focus in two city: Oslo and Bergen
Friele import coffee from seven country
Company goal is to create the perfect "coffee moment" for as
many as possible
12

Contd...
Coop caf
It was came Norwegian market in 1953
subsidiary of Coop Industrier
Coop caf establish his caf in only Oslo
Coop caf import coffee from Brazil
Tim Wendelboe
Started his business in 2007 from Oslo
The goal of Tim Wendelboe is to be among the best coffee

roasteries and espresso bars in the world.

13

Marketing plan
Target Market

Primary : Generation x, y and Young boomers Means Age from 14 to 34.

Secondary : 55+ year olds who enjoy a comparably high disposable income as their
children moved out and their mortgages are paid off.
Segmentation:
Student who go to college every day
Teenagers
Young couple
Positioning:
Main three cities of Norway

14

SWOT ANALYSIS OF CAF

COFFEE DAY
Strengths
Excellent brand name and brand visibility
Huge young crowd as target group
Excellent ambience and service
Over 1000 outlets and 300,000 visitors per day
It produces/grows the coffee it serves hence

reducing the cost

Products of extremely good quality and taste.
Its a youth oriented brand , hence huge potential
since 40 % population is below 20
It produces/grows the coffee it serves hence
reducing the cost.
15

Weaknesses
Crowd management
Improper sitting arrangement
Lacks strength to maintain brand loyalty
Follow the competitor strategy
Weak brand image and lacks strength to maintain

brand loyalty
Poor ambience and decor. CCD outlet served prime
space for advertising and promotions
Many of the CCD stores are incurring loses due to
wrong site selection.

16

 Opportunities
Introduce cheaper versions of coffee
Tap the smaller towns/cities
Merchandising.
Tie ups with other companies for promotion
Coffee cafe industry is one of the fastest growing industries

in Asia.
More people like to visit CCD for informal meetings.
Threats
Entry of foreign players like star bucks
Dependent on Govt. commodity rates
Large unorganized market
Competition with other coffee cafes like Barista, Mochas.
17

Porters Five Force Model

18

Major Competitors
Friele
Coop Kaffe
Johannson Joh Kaffe
Mocca Kaffebar & Brenneri

19

Marketing Tactics
Communication Plan :
Strengthening Caf coffee Day brand by unifying its

three divisions into one company

Supporting Caf Coffee Day in achieving its sales
objectives with strong and well-targeted marketing
programs
Positioning in the Oslo, Bergen and Stavanger
markets as a daily destination and home-away-fromhome for customers
Beginning programs that will provide robust and
intrinsic information that will ultimately be used to
measure awareness & attitude of consumers towards
CCD.
20

Communication Objectives
Primary Objective : To increase primary

21

target (80% of customers) per visit

spending by 2.5%
Tactic 1: Increased spending will be
accomplished by training staff to cross-sell
and up-sell each order with each customer
with special focus on those customers
within the primary target.
Tactic 2: Increased spending will be
achieved by offering a loyalty card
targeted at the primary target with the
intent to increase sales.

Communication Objectives
Secondary Objective : Increase top of mind

recognition by 10% to 20%

Tactic 1: Create activities and events at
individual stores tailored to the local
neighborhood flavor. Activities may includes
things like book clubs, knitting clubs, board
game clubs, live music or local art exhibits and
will be promoted at the store level and
determined by store management with the help
of input from customers
Tactic 2: Sponsorship of local philanthropic events
that the secondary target will be involved in
22

Communication Objectives
Objective: To increase Top of Mind in the minds

of both the primary and secondary targets.

Tactic: Sampling Weeks will be regular events
that will happen at least two times a year per
store and at the managers discretion. This will
be a good opportunity to feature seasonal
coffee flavors as well as feature new flavors
which has always been a favorite way for
Cafe coffee Day founders to rejuvenate the
business as well as themselves. Ice cream
flavors and deli treats may also be part of
sampling weeks in year.
23

Marketing Mix Tool

24

Product Plan
Streamline all of the products
Caf Coffee Day has to be recognized as a

specialty coffee shop that offers ice cream

and deli foods as a perk-flanker product
Uniform menus in all stores
Offer line extensions throughout holiday
seasons, meaning promotional blended
flavours available according to the season
Product line HAS to be streamlined and
promotional tactics have to be integrated.
25

Branding Plan
Caf Coffee Day must have a uniform logo,

26

and store look across the board

All of Caf Coffee Day logos will be put on
to go-cups (as well as quotes, brewing info,
and recycled notations), deli wrap/boxes,
and cold beverage cups as well
Logo must be viewed with a positive and
respected connotation in representing
their products and services
Logo has to be eye catching, and will have
warm colors. The store setting is an at
home environment, warm and cozy

Packaging Plan
Logo on the 14oz, 16oz, and 18oz to-

go cups-along with coffee quotes, tips,

and recycled paper
Designed to protect the product as well,
while emphasizing the new logo scheme
Outside packaging firm will be used to
produce these materials for Cafe coffee
Day
Packaging must generate awareness and
drawing attention to the product right at
the point of sale
27

Pricing Plan
Standard size cup of coffee must be about

28

the same price as one of competitors,

Friele for instance
Customers will be getting two more
ounces for free
For competitive advantage CCD will sell
their medium sized cup lower than its
competitors
Caf Coffee Day must review pricing
every quarter
Cafe coffee Dayat a great price will make
Cafe coffee Day stand out from the

Distribution Plan
2 channels of distribution will consist of the

physical stores and the companys newly

designed website
The website will have packaged whole
bean and ground coffee, along with
merchandise
Main roasting facility will be in charge of
the distribution and orders from the Caf
Coffee Day website
The stores of course will be full serviced
Future : Vending Machines
29

4 Ps and Entry Strategy

Entry Strategy:
Launch CCDs own coffee shop in Norwegian market
Raw material will export from India
Land will take on lease
4ps:
Product:
Mixed taste Indian and Norwegian
ccds existing product which is suitable in Norwegian market
Norwegian product which is used by Friele ,coop caf and other major player
menu contains brewed coffee, espresso traditions and

favourites, cold-hot beverages, coffee alternatives, frappuccinos, and the

sale of whole beans
30

Cont...
Place :
Main focus in three city : Oslo ,Bergen and Stavanger
5 caf in each city
a place where people can come together
Store will placed near crowed area

Promotion :
Advertising in Newspaper and Magazine
The company spends very little on advertising
word-of-mouth promotion
Sponsorship in local events
31

THANK YOU!
Happy new year

32