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By:
Avadhesh Singh Abhishek Kumar Singh Ankit Nawal Mahendra Yaday
Largest caf retail chain in India, with 1230 caf in 141 cities.
CCD has today become the largest youth aggregator. Their success strategy has come by focusing on Accessibility, Affordability.
Some Facts
Coffee was first known in Europe as Arabian Wine. Coffee is presently the second most traded commodity in the world. It is second only to oil. The Coffee Caf Industry The Coffee Caf industry is currently one of the biggest and fastest growing sectors in business. The industry consists of a mix of individual cafs, hotel cafs and retail caf chains.
Strong brand image. Coffee drinking fashion. Wide network of brand choices, strategic positioning. Status factor for middle class youth. Quality products. Friendly and stylish social hub. Increase in disposable income. Consistent service at all outlets.
Positioning
From beginning, it positioned itself as a being coffee bar and maintaining it for a long time. For a consumer CCD represents as fun place where one can go with a whole bunch of friends at any time of day and have good time, over coffee. Caf coffee day is know to experiment with different caf formats: Music Caf Books Cafe Highway Caf Lounge Caf Garden Caf Cyber Caf
Place: Placed a cafe in every possible location where some business can be generated. Their outlets are generally located in High Street/ Family Entertainment Centres, gas stations.
Promotion: CCD does not look at mass media as a viable area of advertising. Caf Coffee Day held a contest around a very popular programme on Zee English called Friends. All the six lead characters are shown often visiting a coffee shop. They have tied up with Channel [V]s Get Gorgeous contest. Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na special Caf Citizen Card for rewarding Caf Coffee Days customers. It is a loyalty program to gain new customers and retain the existing ones
Process: The ordering and delivery process in CCD was earlier based on self- service. But now in most of coffee shops the waiter comes and takes away the order and delivers the order on table.
People: People at Caf Coffee Day believe that People are hired for what they know but fired for how they behave. Motivation and personal skill are laid emphasize upon.
Segmentation
CCD has its main consumer in the age group of 15-29. Its consumers are mainly middle class and upper middle class youth who are up upwardly mobile. CCD not only target youth but any one who is young at heart. More than 10% of customers are above 35 year of age.
Percentage of Customers
Percentage of Customers 37.9 24.8 23.4 3.3 15-19 20-24 25-29 30-34 5.5 35-44 6.3 >45
Frequency of Visit
Gender Percentage
Frequen tly 18% Occasio nally 22% Monthl y 16% Weekly 44%
Female 40%
Male 60%
Vertical Integration
CCD is well known for being vertically integrated to cut costs: from owning the plantations and growing the coffee, making the coffee machines and making the furniture for the outlets.
The machines cost them 1.2 lakh each, which they say is half the cost of an imported coffee machine. The maintenance cost of CCD's machines is also less than foreign machines.
Distribution of Outlets
Every Caf Coffee Day outlet is a part of Indias largest coffee conglomerate named Coffee Day. Since all the cafes are owned by the company, it becomes easier for them to conduct feedback surveys like dips ticks etc.
Coffee days most unique aspect is that it grows the coffee and serves in its cafes.
Caf Coffee Day currently operates 213 outlets all over the country. They have a market presence in over 49 cities. Delhi, NCR alone has 24 outlets. Each caf, depending upon its size attracts between 400 and 800 customers daily.
Tie-ups
Besides that Caf Coffee Day also tie up lot of the youth brands. Their promise to the customer is that A Lot Can Happen Over a Coffee. So every time they try to ensure something good happens to their customer. They have a contest going on with Levis, another one with Scooty, Liril, latest one with Airtel Friends.
Promotion scheme
Having a low- priced low value product or a high- priced highvalue product is often difficult to market or sell. What customers ultimately look for is value for money.
Costa coffee
Starbucks
Coffee world
Barnies Coffee
Mocha Coffee
Others Sales 4%
CCD 50%
Barista 15%
Indirect Competition
Restaurant like McDonalds and Haldiram pose competition to CCD as they are likely attraction for consumers. A consumer can think why he should spend around Rs. 45 on a coffee when he can get a burger and a coffee for the same price at McDonalds. Local tea joints and coffee shops like caf Nescafe (small place but targeting the same group of customers)
Strength:
Excellent brand name and brand visibility Products of extremely good quality and taste. Huge young crowd as target group Excellent ambience and service Over 1230 outlets and 450,000 visitors per day It produces/grows the coffee it serves hence reducing the cost.
Weakness:
Introduce cheaper versions of coffee Tap the smaller towns/cities Merchandising. Many of the CCD stores are incurring loses due to wrong site selection. Tie ups with other companies for promotion
Opportunities:
Introduce cheaper versions of coffee Tap the smaller towns/cities Merchandising. Tie ups with other companies for promotion
Threats:
Entry of foreign players like Starbucks' Dependent on Govt commodity rates Large unorganized market.
CONCLUSION
Highly rated Taste & Quality of products Value for money proposition
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