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A Lot Can Happen Over Coffee

CCD is the largest coffee chain in India with over 900 outlets nationwide. It aims to expand to rural areas and other countries. Though it faces competition from other cafes and fast food chains, CCD has been successful due to its affordable prices, youth-oriented atmosphere and focus on high quality coffee. It targets young customers through strategic locations, promotions and positioning itself as a fun place to socialize.

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Varun Kumar
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115 views

A Lot Can Happen Over Coffee

CCD is the largest coffee chain in India with over 900 outlets nationwide. It aims to expand to rural areas and other countries. Though it faces competition from other cafes and fast food chains, CCD has been successful due to its affordable prices, youth-oriented atmosphere and focus on high quality coffee. It targets young customers through strategic locations, promotions and positioning itself as a fun place to socialize.

Uploaded by

Varun Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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“A lot can happen over coffee”

ABOUT THE INDUSTRY

• India’s annual Consumption -97000 tonnes.


• Annual growth rate :5-6%
• Average per capita consumption : 66 grams annual
• Urban areas-73%, Rural areas- 27%.
CAFÉ COFFEE DAY

• Started by V. G. Siddhartha in Brigade Road


Bangalore, 1996
• Largest organized retail coffee chain in India
• Total outlets- 937 in every nook and corner of the
country
• Plans to open 180 more outlets in fiscal year 2010.
• A Rs. 750 crore, ISO -9002 certified company.
• New cafes planned across – Middle East, Eastern
Europe, Egypt, Eurasia, South East Asia
Competitor Analysis
• The Biggest Competitors for CCD are:
 Barista
 Café Mocha
Qwicky Market Share (%)
Costa Coffee Others
15%
Java Green
Café Pascucci
• Indirect Competitors Barista
 McDonald’s, Haldiram’s 25%
CCD
60%

 Local Café shops like Nescafe


MARKETING MIX ( 7 P’s OF MARKETING)
PRODUCT
• Grows the coffee it serves in its cafes

• Well-equipped roasting unit

• The eatables catered by different vendors


Ice creams- Cream Bell
Milk - Amul
Snacks from local vendors

• Sells merchandise through its stores.

• Enjoys trust for quality, hygiene and consistency of food.


PRODUCT MIX
PRICE

• Affordable prices.

• Price for a cup of coffee ranges from Rs 45 to Rs 80

• Only minor changes in the pricing policy due to changes


in Govt. taxes.
PHYSICAL EVIDENCE

• Logo
- Larger font- Emphasis on the word CAFÉ.
- Red signifies leadership and passion.

• Architecture and décor-uses bright colours and interiors


according to the youth.

• Designing of pamphlets posters and menu to attract the


youth.
PROCESS

• Ordering and delivery earlier was self service and now


most of the coffee shops have waiters to take order
and deliver at the table.
PEOPLE

• Emphasis on motivation and personal skills of the people.

• Friendly waiters and services.

• Employees follow international standards of hygiene,


cleanliness and personal grooming.

• Reward Schemes like “Employee of the month”


PLACE

• Prime factor for success- Located at every possible


location where business can be generated.

• Caters to target market with strategically placed


outlet .

Eg-Located in high street, gas station and near colleges.


PLACE

• Metros
• Tier-I cities ( Jaipur, Kanpur, Surat)
• Tier-II cities (Mysore, Guwahati, Jamnagar)
• Satellite cities and urban outgrowths (Navi Mumbai,
Faridabad, Secunderabad)
• To be expanded to Tier-III cities
• Tie-up with Ginger Hotels of the Taj Group
POSITIONING AND BRAND IMAGE

•Brought café culture to India


• For the youth: Young (AT HEART) customers, young
and friendly staff
•Highest distribution network
•Target middle and upper middle class
•Age group 15-29
CONSUMER PROFILE
Age group: Frequency of visit:
20-24 years- 37% Daily- 18%
25-29 years- 27% Weekly- 44%
Gender:
Male- 60%
Female- 40%
Occupation:
Students- 52%
CAFÉ FORMATS

Different café formats:


• Music cafes
• Books cafes
• Highway cafes
• Lounge cafes
• Garden cafes
• Cyber cafes
Latest addition: Lounge cafes
PROMOTION

Through SMS
Valentine's day promotion, "Café Coffee Day Luv Zone“

Through Television
• Held a contest around a very popular program on Zee
English called Friends.
•They have tied up with Channel [V]'s Get Gorgeous contest.

Ticket sales:
They were involved in WWE, Elton John, and Bryan Adams
ticket sales
PROMOTION
Tie-ups
•Liril, Airtel Friends.
•HDFC wanted to promote their debit card and they
choose Café Coffee Day. So 21 cafes have debit card
machines.

Association with movies


•Bas Yun Hi
•Khakee
•Main Hoon Naa
•Socha Na Tha
•Mujhse Shaadi Karogi
PROMOTION

Sales Promotion:
• Special ‘Café Citizen Card’

• Promotion by setting up café in college


campus. Eg- NMIMS, AMITY UNIVERSITY
RE-BRANDING
•Earlier perceived as a place where intellectual meet

•Positioned itself as a coffee bar and has maintained that


position for a long time now.

•CCD saw a latent market in youngsters

•For youngsters- CCD a fun place where one can go anytime of


the day and have fun with friends. In 2002 CCD underwent a
rebranding exercise.

•CCD spent INR 1.5 billion to redesign existing cafes (2009).


RE-BRANDING

OLD LOGO

NEW LOGO
SWOT
STRENGTHS

• Products of extremely good quality and taste

• Its a youth oriented brand , hence huge potential


since 40 % population is below 20

• It produces the coffee it serves hence reducing


the cost
• USP of brand is its considered a highly affordable
brand
WEAKNESS

• The store ownership of the company might hinder in


their expansion policies

•Price of the products is relatively higher than brands like Java


Green and McDonalds

•Many of the CCD stores are incurring losses due to large


number of outlets
OPPORTUNITIES

• Coffee cafe industry is one of the fastest growing industry


in Asia
• More people like to visit CCD for informal meetings
• CCD has gone international , and is planning to attract
many new international markets, hence gaining
international recognition
• Changing lifestyle of youth, they like to spend time on
lounging.
• New Products
THREATS

•Competition with other coffee cafes like Costa Coffee, Barista


& Mochas.

•Consumer trends towards more healthy ways and away from


caffeine

•International players like Starbucks

•New entrants and costs


COMPETITIVE SRATEGIES

• Follows a backward integration of the value chain

• Procures coffee beans from its base in Bangalore.

• Quality assurance

• Focus on core competence- coffee, outsources other item

• Food items are obtained from local suppliers- cost


advantage
CONTD…

•Far greater reach on a country wide scale


•Place for fun and hangouts for youngsters.
•Does not use franchisee model.
•Offers variety as per changing times.
•CCD doesn't sell product, it sells “EXPERIENCE”

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