COUNTRY REPORT ON

CAFÉ COFFEE DAY (INDIA) V/S COSTA COFFEE (UK)

REPORT BY

NITESH RUNGTA
PAWAN

VISHU AWANA
AJAY KUMAR
SARTHAK YADAV
SUMMARY

“CAFÉ COFFEE DAY”

Cafe industry is the greatest and quickest developing segment in India. The cafe business has
developed hugely in India. There are about 70% of the general population lean toward CCD has a
coffee shop. Café Coffee Day is India's most loved coffee shop, for the youthful and the youthful
on a basic level. It is a piece of India's biggest coffee aggregate, the amalgamated bean coffee
exchanging organization. CCD is an increasingly well known coffee shops that Starbucks. This
perhaps due to its lower estimating, more extensive existences of outlets, and longer nearness in
the advertise. The strategy utilized for information gathering was essential and additionally
auxiliary. That significant thing with respect to benefit promoting is that clients give top need to
the nature of administration/item and climate. The significant contender of bistro coffee day is
without a doubt barista as both of the administration gives take into account same market portion
India.

Coffee Day Enterprises, which owns Café Coffee Day, India’s largest café chain by store size,
plans to rise as much as Rs1, 150 crore ($175 million) through the offer, which will be launched
on Oct. 14. CCD, as the chain is widely known, competes with the likes of Starbucks and Barista in
Asia’s third largest economy. Outside India, it has outlets in Austria, the Czech Republic and
Malaysia.

In 1995, all inclusive, the cafe culture had gotten and I advised my supervisory group I needed to
set up bistros in India," VG Siddhartha, administrator and originator of Coffee Day Enterprises,
wrote in the Forbes Magazine in 2011. The child of a coffee estate proprietor, Siddhartha had
begun the chain with a capital of Rs1.5 corer. Fully expecting the forthcoming IPO, Quartz has
separated some fascinating, lesser-known realities about the organization behind CCD. A
messaged survey sent to CCD stays unanswered.

CCD is about scale. The organization had 1,423 outlets crosswise over India and abroad toward
the finish of a year ago, a number that has developed to 1,538 stores in the course of the most
recent couple of months.
Major Players of the Café Industry in India Café Coffee Day- CCD pioneered the café concept in
India in 1996.

• The largest café retail chain in India, with 1000 cafes in 1414 cities and many in its base,
Bangalore.
• Barista- Established in India in 1999. The chain has 200 stores In India
• Mocha- Opened in Mumbai in 2001. 20 units out of which 12 are franchised.
• Costa Coffee- UK based café chain, entered in India in 2005. Around 36 stores in India as
they discover India new target showcase.

“COSTA COFFEE”

Costa Coffee is a British multinational coffeehouse organization headquartered in Dunstable,

Bedfordshire, and an entirely claimed auxiliary of Whitbread. The Coca-Cola Company reported
its intention of acquiring Costa Limited from parent organization Whitbread PLC for $5.1 billion.
This arrangement, anticipated that would shut in the primary portion of FY 2019, would give the
cola monster a solid coffee stage crosswise over parts of Europe, Asia Pacific, the Middle East,
and Africa. It is the second biggest coffeehouse chain on the planet, and the biggest in the UK. On
31 August 2018, it was declared that Coca-Cola intends to buy the chain for £3.9bn, an
arrangement that is relied upon to finish in the principal half of 2019.

Costa Coffee was established in London in 1971 by the Costa family as a discount activity
supplying simmered coffee to food providers and pro Italian coffee shops. Obtained by Whitbread
in 1995, it has since developed to 3,401 stores crosswise over 31 nations. The business has 2,121
UK eateries, more than 6,000 Costa Express vending offices and a further 1,280 outlets abroad
(including 460 in China).

Brothers Bruno and Sergio Costa established a coffee roastery in Lambeth, London, in 1971,
supplying nearby food providers. The family had moved to England from Parma, Italy, in the
1960s. Costa spread out to selling coffee in 1978, when its first store opened in Vauxhall Bridge
Road, London.
In 1985, Sergio purchased out a lot of the organization. Bruno went ahead to establish a silverware
company. By 1995, the chain had 41 stores in UK, and was obtained by Whitbread, the UK's
biggest inn and coffee shop administrator, becoming an entirely possessed backup. In 2009, Costa
opened its 1,000th store in Cardiff. In December 2009, Costa Coffee consented to secure Coffee
Heaven for £36 million, adding 79 stores in focal and Eastern Europe.

In 2018, Whitbread confronted weight from two of its biggest investors; lobbyist aggregate Elliot
Advisers and fence investments Sachem Head to move or demerge Costa Coffee, the hypothesis
being the individual businesses would be worth significantly more than as one organization. On
25 April 2018, Whitbread declared its intention to completely demerge Costa within two years. In
this way, Coca-Cola declared an arrangement to obtain the chain.
INTRODUCTION

Cafe industry is at present one of the greatest and quickest developing segments in India. Industry
comprise of: Individual Café, Inn Café, Retail Café. Development of Cafe industry in India Coffee-
first seat in south India. In request to spread, coffee house developed at different place. Served in
spots for legal counselors and the informed class to have exchanges. Raayars mess, Chennai built
up in 1940, most seasoned coffee houses in South India which serves top notch channel coffee.
Five star lodgings began opening coffee shops which trucked top of the line clients. The drinks
have now turned out to be a greater amount of idea than only a drink. Over 10 years number of
bistro proprietors endeavored to westernize the essence of coffee as opposed to the channel coffee
.Large retail chains like Barista, Starbucks, Café coffee Day and so forth opened, idea in not just
selling coffee however about developing the national brand. Coffee Markets in India:

1) Branded coffee 53%

2) Unbranded 40%

3) Café 7%

In this research paper we are selecting two café companies and then we will discuss in brief over
various aspects related to companies that is selected. Through this paper we will through a light
over varieties of coffee and the café’s comparison over their operating methods, size, nature, trends
etc.

OBJECTIVES
To determine the popularity amongst them.

To know price differences in terms of foods and beverages between them.

To know which of them provides more variety.

To know which of them gives more better taste in comparison of them.

To compare their market position in terms of financial conditions

To know in which amongst these two cafes, the business personality are interested to invest more
money.

To compare their combos and offers so as to know which amongst them is strong in customer
making and also beneficial to the buyers.
COMPARATIVE STUDY

1) PRODUCT DIFFERENCES

CAFÉ COFFEE DAY COSTA COFFEE

CCD sells: COSTA sells:

• Hot drinks - coffees, teas and hot chocolates

1.FOOD
• Cold drinks - including Frostino and fruit
Dessert Shots
coolers
Big Eats
• Savory snacks - including sandwiches and
Sundae
Cakeaway breakfast items

2.BEVERAGES • Cakes and pastries - including cookies,

Hot Coffee brownies and croissants

Cold Coffee
Fruiteazers
Quenchers
International Coffee
 2) MARKETING STRATEGY

CAFÉ COFFEE DAY COSTA COFFEE

• Accessibility Costa coffee serve the best and the largest product
• Affordability portfolio.
• Availability

Segmentation, targeting, positioning:- Segmentation, targeting, positioning:-

Cafe Coffee Day portions its offerings crosswise Costa coffee utilizes a blend of geographic and
over various applied outlets dependent on statistic statistic division methodology to focus on the
factors and psychographics factors because of the client and fulfill their requirements.
way that demographically the requirements and
needs to change to which accessible assets Specific targeting system is utilized by the Costa
additionally assumes a noteworthy job. coffee as being available in 29 countries which
are topographically isolated, following particular
It targets youth in the center and higher income to procedure is helping the organization in catering
be specific understudies and working experts. to the necessities of the clients and introducing
CCD has situated itself dependent on a new items accordingly.
combination of positioning systems i.e. item trait It has situated itself on the item premise, where it
and quality/esteem premise. guarantees that quality astute some coffee leaves
a lasting impact on the client.
 3) COMPETITIVE ADVANTAGES IN THE MARKETING STRATEGY

CAFÉ COFFEE DAY COSTA COFFEE

The tremendous scope of nourishment and As a piece of its client prosperity process, it
refreshments, deliberately found outlets, decrease sources all its crude materials like coffee beans,
in costs, venturing out into level 2 urban areas of tea leaves and numerous others from Rainforest
India and outside grounds is a portion of the Alliance Certified homesteads.
winning methodologies which caused CCD to be
in front of its rivals. Its different auxiliaries like Whitbread being the parent organization of Costa
Coffee Day Fresh 'n' Ground, Coffee Day Square, Coffee is as of now present in various lines
Coffee Day Beverages and so on has helped the business in the neighborliness industry.
organization to take into account client growing Whitbread is financially solid having
needs and be intensely ahead in the meantime. properties/infrastructure to help Costa coffee.

Constrained nearness in the created or developing

countries is helping the organization to remain
concentrated on what they have and control its
operational expense in this manner increasing the
benefit.
 4)

Distribution strategy in the Marketing strategy of Costa Coffee –

Costa Coffee has in excess of 3000 outlets and 4200 Costa Express outlets spread crosswise over
29 nations comprehensively. It works with coffee-growing networks far and wide to source
excellent coffee beans.

WHERE AS

Distribution strategy in the Marketing Strategy of Café Coffee Day –

As of March 2015, there are 1530 outlets crosswise over 29 conditions of India. Café Coffee Day
has additionally extended outside India with its outlets in Austria (Vienna), Czech Republic,
Dubai, Malaysia and Cairo, Egypt.

5)

Brand equity in the Marketing strategy of Costa Coffee –

Regardless of whether it is an advanced stage or social stage, Costa Coffee has the solid nearness
in the media which is helping the organization in creating mindfulness and in this manner
increasing its deals. It is involved in CSR exercises and has set up Costa establishment to get
related with coffee-growing networks far and wide.

WHERE AS

Brand equity in the Marketing strategy of Café coffee day—

Cafe Coffee day was named "most mainstream home base joint among youth" at the third Global
Youth Marketing Forum in 2011. The Indian Hospitality Excellence Awards additionally named
it "India's most prominent coffee joint" in 2011. According to the Brand Trust Report 2012, Cafe
Coffee Day was positioned 125th among India's most confided in brands and along these lines,
according to the Brand Trust Report 2013, Cafe Coffee Day was positioned 210th among India's
most confided in brands.
 CAFÉ COFFEE DAY

Competitive analysis in the Marketing Strategy of Cafe Coffee Day

The section of worldwide players like Starbucks and Dunkin' Doughnuts will grow the utilization
level which will work for all retail players yet given the way that CCD is currently looking past
only a mass market nearness making a benefit is becoming challenging for it. Indeed, normal
acknowledgment per client of CCD is significantly less than a portion of its rivals in the market
space.
Market analysis in the Marketing Strategy of Cafe Coffee Day

Coffee utilization in India is growing at 6% per annum contrasted with the worldwide 2% in
addition to. In India, the per capita utilization of coffee is around 85 grams while it is six kgs. in
the US. Coffee bars have 5% infiltration in India which itself depicts the open door lying ahead.

Customer analysis in the Marketing Strategy of Cafe Coffee Day

The greater part of CCD's client’s falls within the age gathering of 20-35 years. The gathering
includes main school going understudies and youthful working experts.
 COSTA COFFEE

Competitive analysis in the Marketing strategy of Costa Coffee

Organizations in this industry need to confront the section and leave boundaries as infrastructure
and branding cost are involved in the setup of the organization and in the event that the business
can't pull in clients, it's the perfect misfortune for the establishment proprietor. In addition, the
coffee culture is still new to the developing countries and in the created countries there is a great
deal of rivalries between the nearby, national, and international players. The normal income per
client of Costa Coffee is significantly less than its rivals.
Market analysis in the Marketing strategy of Costa Coffee

Coffee utilization in all around is growing at the rate of 2%. In India, the per capita utilization of
coffee is around 85 grams while it is six kg in US Developing countries are the enormous potential
for the organizations in this industry.

Customer analyses in the Marketing strategy of Costa Coffee

A client of Costa coffee is millennial in the age gathering of 15-45 years who like to encounter the
innovative and mixed refreshments offered by Costa coffee.
MARKETING MIX OF BOTH THE COMPANIES (4P’s)

Basically the marketing mix is the strategic planning structured by the company to earn customer
attention, to built relations with them, to gain productivity and profitability and company’s name
fame and reputation.

4P’s here are:

Product
Place
Price
Promotion

So now we will go through both companies’s marketing mix.

CAFÉ COFFEE DAY

PRODUCT IN MARKETING MIX

Cafe Coffee Day item blend establishes an extensive variety of items that intrigue fundamentally
to Indian coffee and nibble sweethearts. Items have a chosen Indian taste to it – be it nourishment
or coffee. A large portion of the eatables have been embraced to meet the Indian taste buds like
samosa, biryani, masala sandwich, tikka sandwich and so on. Hence they have been trying to catch
the Indian taste alongside exemplary coffee. The smash hit thing in summer is frappe, which is
coffee and dessert mixed together. The youngsters support it. In winter it is cappuccino. Their
merchandising includes crazy stuff like shirts, tops and so forth.

PRICE IN MARKETING MIX

Considering that Café Coffee Day realizes its real client lies in the section of 15-29, it has
attempted to determine an arrangement whereby it can fulfill every one of its clients. The cost for
some coffee ranges from Rs.45 to Rs 80. From the time it originally begun its activities, there has
been just minor changes in the pricing arrangement of Café Coffee Day. The progressions have
been more because of the legislature charges than all else.

PLACE IN MARKETING MIX

The methodology CCD has adjusted is to put a cafe in each conceivable area where some business
can be generated. This is a prime factor in determining the achievement of a retail chain. Cafe
Coffee Day hopes to take into account their objective market with deliberately found outlets.

Their outlets are commonly situated in High Street/Family Entertainment Centers, service stations,
close Collegesetc.

PROMOTION IN MARKETING MIX

CCD is involved in every one of the regions of genuine shopper enthusiasm like:

Television: Café Coffee Day held a challenge around an exceptionally prominent program on Zee
English called Friends. All the six lead characters are demonstrated frequently visiting a coffee
shop. They have tied up with Channel [V]'s Get Gorgeous challenge.

Tie-ups: Besides that Café Coffee Day likewise tie up part of the young brands. So they have a
challenge going on with Levis, another one with Scooty, Liril, most recent one with Airtel Friends.

COSTA COFFEE
PRODUCT IN MATKETING MIX

The main result of the firm is Coffee. In any case, Costa coffee additionally has numerous different
assortments of items which are adored by individuals. Hot chocolate, special drinks, tea, Cold
drinks like chilly coffee and ice mixes, sandwiches and other valuable sustenances are a portion of
the assortment of Costa coffee. The item is the most essential factor in the marketing blend of
Costa coffee, in light of the fact that the total marketing system of the firm reliant on clients liking
and loving their items. In this manner Costa coffee is more interested in a draw procedure as
opposed to a push methodology.

PRICE IN MARKETING MIX

Costa coffee puts stock in Premium pricing due to its item assortments and its quality. Costa coffee
depends on its pledge to give the best coffee taste and the best beneficial nourishment to its client.
In this way, Costa coffee does not think that cost is essential. What it thinks is that it needs to
convey the best an incentive to its clients.

PLACE IN MARKETING MIX

Costa coffee has a phenomenal nearness in incredible Britain with more than 1000 stores. Anyway
the nearness in India is particularly restricted. Costa coffee can be found in shopping centers, air
terminal and other premium spots. Anyway it is available just in the best urban communities which
add to the positioning of Costa coffee.

PROMOTION IN MARKETING MIX

Advancements are relatively missing for the situation of Costa coffee. In any event there are no
ATL advancements seen. Anyway Costa coffee utilizes various BTL advancements like
advertising on transports and out of entryway media. Anyway advancements us calm likewise in
light of the fact that Costa coffee needs to depend more on verbal exposure
RESEARCH METHODOLOGY

Secondary data collection was done to recite this research paper. To collect meaningful
information I and my team members have gone through various articles both online and offline,
we had numerous group discussions, debate etc and finally concluded our research designing.
Magazines, newspaper and some survey over CCD and Costa Coffee has been read by us.
CONCLUSION

From the undertaking we can finish up the following:-

That significant things regarding administration marketing is that clients give top need to the nature
of administration/item and feel.

The real contender of bistro coffee day is without a doubt barista as both of the administration
gives take into account same market section India as they find India new target advertise.

Cafe coffee Day: - This has been situated for more youthful age normally school and more youthful
individuals. With outlets deliberately situated close school, programming organizations and spots
where they can target clients. On examination it very well may be seen that lion's share of the
clients are of 18-30 age gathering. Individuals lean toward coffee day area for treats.

The Café Coffee Day is planning to go international.

The other major things regarding service marketing is that customer give top priority to the quality
of the services/products and ambience.
The major competitor of Café Coffee Day is undoubtedly barista as both of the service providers
cater to same market segment India as they find India new target market.
According to our understandings we would suggest that if CCD wants to achieve position in
international market with great and tough competitors for others, then CCD must overlook its
various cakes and pastries taste and quality also should work over their ambience.
Café Coffee Day should believe in making healthy relations with not only the customers but also
with the dealers and the new business personalities, which would further help CCD to raise funds
and construct more and more number of outlets to overcome with tough competition in the café
industry over the globe
According to the article reports me and my team got to know that even today only 50% and less
than 50% of the population cherish the ambience, quality and the taste of food items and beverages
they served. Through this statement we came out with an outcome that would help CCD to
overcome this type of problem thereby hiring innovative and creative interior designers and also
hiring the best equipments and latest technologies to gain profitability and increment in customers.
Two very important marketing strategies which are CRM (customer relationship management) and
CEM (customer effective management) is necessarily important to inculcate by CCD to raise its
company reputation and popularity.
Costa Coffee has been able to remain one of UK’s leading coffee brewing companies for more
than a century now primarily because of execution of the company’s branding and positioning
strategies to perfection however certain points have to be taken in consideration by Costa Coffee
regarding knowledge management tools since they have relatively higher income as compare to
other cafes in café industry, but the time for implementation of their chosen knowledge
management tools would take longer than usual, aside from being expensive.
Since the goal of Costa Coffee is towards a long term dominance and stability in the café industry,
then the pursuit of these promotional campaigns will be beneficial for the company in the long run.