Service Industry Caf

Coffee Day
Contents
Corporate Profile
Mission and Vision
Divisions
Competitors
Tangibility Spectrum
Services Blueprint
7Ps of Marketing
Porters Five forces Analysis
SWOT Analysis
Distribution Strategy




Factors Based on there
priority
Grading of factors as per
there importance
Caf Coffee Day Rating
Online Sales
H.R. activities
Some interesting facts
Recognitions & Rewards
Recommendations
Conclusion
Sites Referred

Corporate Profile
Caf Coffee Day (C.C.D.) is Indias largest coffee conglomerate,
the Amalgamated Bean Coffee Trading Company Limited
(ABCTCL). Popularly known as Coffee Day was formed.
Its origin lies in the golden soil of Chikmagalur that a traditional
family owned a few acres of coffee estates, which yielded rich
coffee beans.
V.G.Siddhartha Hegde Founder & Chairman of Amalgamated
Bean Coffee Trading Co.
His family owns 10,500 acres of coffee plantation farms in
Karnataka.
Venu Madhav Head of Operations at C.C.D.


Important Events
YEAR EVENTS
Since 1875 Rich coffee growing tradition started
Early 1990s Opportunity arose with the deregulation of the coffee
board in Coffee Day began exporting coffee to the
connoisseurs across USA, Europe & Japan

1996

C.C.D. was first set-up at Brigade Road in Bangalore

2000 Exported more than 27000 tonnes of coffee valued at
US$ 60 m to countries like U.S.A., Europe & Japan
and, for the second time in its short career of 7 years
retained the position as the largest coffee exporter of
India.

YEAR EVENTS
2002 C.C.D. owns & operates 213 cafes in all major
cities of India
2008

C.C.D. expanded to 595 cafes in 100 cities of India,
3 in Vienna, 2 in Karachi & targets to expand till
950 cafes in a year from 2008

2010 Earning revenue of US$45 million, jobs 5000
employees, owns 1016 cafes in 135 cities
Mission and Vision
Mission:- To be the best Cafe
chain by offering a world class coffee
experience at affordable prices.
Vision:- To be the only office for
dialogue over a cup of coffee.

Divisions of Coffee Day
Coffee Day - Fresh & Ground
Caf Coffee Day
Coffee Day Vending
Coffee Day - Xpress
Coffee Day Exports
Coffee Day Perfect
Caf Coffee Day is the part of Indias largest coffee
conglomerate named Coffee Day, Rs.750 crore ISO
9002 certified company.

Competitors
Direct Competitors:
Barista
Cafe Mocha
Costa Coffee
Beyond Coffee
Gloria Jeans
Minerva Coffee Shop
Indirect Competitors:
McDonald
Haldirams
Global Competitors:
Star Bucks

Tangibility Spectrum
Services Blueprint
7ps of Marketing
Product
Wide range of products appealing to Indian coffee and
snack lovers.
Indian taste.
Eatables adopted 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.

Price
Major customer -15- 29 yrs, Price ranges - 20 to 200.
Minor changes (majorly - government taxes)


Place
Strategically located outlets (High Street/ Family Entertainment Centres).

Promotion
C.C.D. does not look at mass media as a viable area of advertising.
Television (Zee English called Friends, Channel [V]'s Get Gorgeous).
Tickets Sales (IPL).
Movies (Main Hoon Na, Kyun Ho Gaya Na, etc).
Sales Promotion (Offer coupons, Gifts vouchers, Caf Citizen Cards).
Caf Beat- an in-house magazine.
Tie-up with World Space & Microsense to provide satellite connectivity.

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).

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.

Physical Evidence
Logo, Colours, Images
1. 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.
2. Caf - larger than the text inside the logo box. Signifies that Caf Coffee
Day pioneered the caf concept in India way back in 1996. C.C.D.
would like to own the word caf in the minds of its customers.
Dcor & Architecture
Literature
Dress Code

New Logo
Porters Five Forces
HIGH
LOW
HIGH
VERY HIGH
VERY HIGH
SWOT Analysis
STRENGTHS
Largest retail chain of cafes.
ISO 9002 certified company.
Quality and taste.
Youth oriented brand (40 % population <
20).
Reduction in cost (Own Production).
USP of brand - Highly affordable brand.
WEAKNESS
Weak brand image and lacks strength to
maintain brand loyalty.
Poor ambience and decor. (Prime space -
advertising and promotions).
Wrong site selection - Losses.
OPPORTUNITY
Fastest growing industries in Asia.
Preferred for informal meetings.
Gone international
THREAT
Competition with established and
International other coffee cafes like Barista,
Mochas, Gloria Jeans, Coffee Bean & Tea
Leaf and Illy Caf.
Hukka Parlours.
SWOT
Distribution Process
Each outlet serves 400 -800 customers daily
depending upon its size & location.
Factors based on there
priority
42%
13%
11%
11%
23%
Factors considered while selecting a coffee shop
Quality of Services Items in the menu Pricing Location Ambience
Grading of factors as per
there importance
0 0 0 0 0
16
20
0 0
4 4
20
0
36
16
4
44
12
40 40
28
40
44
24
12
4
52
28
56
4
16
44 44
80
4
12
16
4 4
28
Ambience Quality Pricing Location Brand Advertisements Offers Physical Evidence
Grading of the factors based on there importance when a customer
goes to a coffee shop
1 - Least Important 2 3 4 5 - Most Important
Caf Coffee Day Rating
4 4
40
28
24
0
20
28
48
4 4
16 16
52
12
4
24
52
8
12
16 16
20
44
4
Not Satisfied Satisfactory Good Very Good Excellent
Rating to Cafe Coffee Day given by customers on the factors listed
below
Ambience Location Quality of Product Pricing Service Offered
Online Sales
Online Sales by C.C.D. is also one of the
revenue-earning sources. Products are displayed
on its website www.cafecoffeeday.com .
Customers may pay through VISA or Master
Card or PayPal.
H.R. Activities
With the boost in the number of their retail outlets, C.C.D. had to
concentrate on the quality and quantity of their human resource in
order to meet up with the set standards.
They make sure that the employees all across the country are well
trained and provide consistent services at every outlet.

Recruitment & Selection:
Selection procedure for senior managers is long-drawn and rigorous
but on the other hand for shop floor workers it is simple and short.
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.



Some Interesting Facts
1. All-Day Refresher, most selling
product of C.C.D. whose selling
cost is Rs. 100 has a prime cost of
just Rs. 20 & rest all is profit to
C.C.D.
2. C.C.D. does not use sugar as raw
material in any of its preparations
but uses milk cream & Sugar Free
as raw material.
3. Ice-creams & other eatables are
out-sourced from Amul & local
vendors of reputed brands.
4. It is unique in its distribution way
where coffee beans are cultivated
in its farms at Chikmagalur.

Recognition & Rewards
C.C.D. won 8 of 10 awards at India Barista Championship 2009.
The awards are:
1. Platinum Award.
2. Best Espresso.
3. Best Cappuccino Felix Daniel Mathew, Manager Food &
Beverages, C.C.D., Bengaluru.
4. Most Promising Talent Adwiti Tarkire (C.C.D., Trainer).
5. Silver Award Sam Rozario (Asst. Manager, Level 1, C.C.D.,
Chennai).
6. Bronze Award.
7. Best Signature Beverage.
8. Best Barista Technique Naveen Kumar CA(Trainee Area Manager).
Bags the Best Coffee Bar title for the 3
rd
consecutive year.
Top honours at Coca Cola Golden Spoon Awards 2010.
Recommendations
1. To improve the interiors and dcor.
2. To have more and more tie-ups.
3. Only 50 % or less than 50 % people find Caf
Coffee Day quality of service, ambience, pricing
and location to be very good which proves that
still Caf Coffee Day need to do lot of homework
in order to satisfy its customers.
4. It should introduce a feedback form system in
order to know about the customers satisfaction
level.

Conclusion
1. C.C.D. is the fastest growing Caf in the country.
2. The major competitor undoubtedly Barista.
3. That Caf Coffee day is planning to go international.
4. The other major things regarding service marketing is
that customers give top priority to the quality of the
services / products and ambience.
5. It is providing tough competition to its competitors by
satisfying its customers with great caf experience.
6. A lot can happen over coffee message has touched
the hearts of youngsters who are the largest
consumers of C.C.D.

Sites Referred
http://www.casestudyinc.com/coffee-day-
brand-strategy-india
http://www.pr-inside.com/india-food-and-
drink-report-q-r2164244.htm
http://en.wikipedia.org/wiki/Marketing
http://www.cafecoffeeday.com/
http://www.barista.co.in/users/index.aspx

QUESTIONS
Thank You