A Lot Can Happen Over Coffee

Segmentation, Targeting
And Positing Strategy
Of
CAF COFFEE DAY

By-
Group - 7
Anish Aryan(1011155)
Deepak Kumar Dubey(1011167)
Mayur Jagdish(101179)
Pushpendra Pratap Singh(1011191)
Sangeeta Patel(1011203)
Sunny Jaiswal(1011215)
Introduction
THE COFFEE CAF INDUSTRY

History
Individual Cafes
Hotel
Retail Caf Stores

Caf Industry in India

Caf Coffee Day
Division of Indias largest coffee conglomerate;
Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL)
also called Coffee Day
Coffee Day has a wide and professional network comprising over 48
Agents and 50 collecting depots.
Its works at Chikmagalur and Hassan for over 70,000 tonnes of coffee per annum,
the largest in the country.




OPPORTUNITIES IN COFFEE CAF INDUSTRY

0
20000
40000
60000
80000
100000
120000
2003 2004 2005 2006 2007 2008 2009
Coffee Consumption(MT)
Coffee Consumption(MT)
MARKET GROWTH OPPORTUNITY
OPPORTUNITIES IN COFFEE CAF INDUSTRY

Age wise Consumption
15-29
30-40
40-50
>50
Method Wise
Consumption
Branded
Unbranded
Caf
Regional Consumption
Tamil Nadu
Karnataka
Andhra &
Kerala
Rest of India
No. of CCD Outlets
North India
Western India
South India
East India
Consumption : City Type
Tier 1
Tier 2
Tier 3
Village
No. of CCD outlets
Tier 1
Tier 2
Tier 3
Village
OPPORTUNITIES IN COFFEE CAF INDUSTRY

Geographic Segmentation
Metros & Tier
1 cities
Ambience
Format Cafes
Coffee Day
Square
Tier 2 cities
Expansion
CCD shops at
strategic
locations
Coffee Day
Xpress
Tier 3 cities +
Villages
Coffee Day
Takeaways
(Vending
machines)
Coffee Day
Fresh n
Ground
Demographic Segmentation
Occupation
Students,
40%
Working
Professionals
, 51%
Retired +
Non-
working, 9%
Demographic Segmentation
Age- Based
Under 18
18 34
years
Under
18
21%
18 34
67%
35-54
10%
55+
2%
Psychographic Segmentation
Lifestyle
Music Caf
Book Caf
Lounge Caf
Cyber Caf
Lifestyle
43.80%
28%
37.70%
29.80%
12.30%
28%
12.30%
13.20%
Format Cafes
Music cafes
Book cafes
Lounge cafes
Garden cafes
Cyber cafes
Sports cafes
Singles cafes
Fashion cafes
Personality
Expresso: The original Italian - strong and dark. Small but packs a
punch. According to the Italians, its The Godfather of coffee.
Personality
Exthiopian: Coffee straight from the land of its inception; a
connoisseurs delight.
Personality
Devils Own: Get wicked with this cafe frappe loaded with
chocolate and whipped cream. Ah, so sinful.
Personality
Expresso: The original Italian - strong and dark. Small but packs a
punch. According to the Italians, its The Godfather of coffee.
Behavioral Segmentation
Occasions
Benefits
Benefits
Ambience /
Experience, 72.81%
People /
Service,
15.79%
Taste of coffee /
food, 57.89%
Value for
Money, 20.18%
Customer's Preference
User Status
Loyalty Status
Targeting
Potential segments targeted by CCD
Geographic: Tier 1 and 2 cities with an increasing focus on the latter
Income: No clear target group
Occupation: Students and young working professionals
Age: 18-35 years
Personality:
1) Enthusiastic, outgoing and impulsive youngsters who seek a place where they
can socialize
2) Trendy and fun-loving people who are a bit resource-constrained
Lifestyle: Selective target groups like Money for value buyers (through its lounge
cafs), Book-lovers (Book cafs) etc.



Positioning Strategy
Had to take a differentiated position with respect to Barista
in face of stiff competition
CCD decided to position it as a brand focused solely on the youth
The following are a few attributes which exemplify this positioning of CCD.
Pricing Key to building good market share and brand loyalty
Products Indianness in the menu
Store locations To positioning itself as a preferred hangout place for youth
Store ambience and dcor Informal, lively and youthful ambience; bright
and eye-catching interiors. Positions it as an experiential Brand
Logo and Colours - Recently changed to a new logo
Promotions Use of mass media; Tie-up with youth brands and promotion
using youth icons


SWOT Analysis


Strengths
Largest organized retail coffee chain
Strong Brand Equity
Highly affordable priced 20-30% lower
than competitors
Huge potential market as it a youth-oriented
brand
Strong Positioning Strategy malls,
corporate campuses, educational institutions
Self-producer of coffee



Region specific localization of offerings
still in its initial stages
Poor dcor compared to its competitors



Opportunities
Growing coffee market in India
Rising income levels and growing exposure
of middle class to western market
Increasing no. of students entering
hospitality industry highly skilled human
resource
High scope of expansion in Tier-3 cities
CCD can enter into alliances
Diversifying into herbal drinks category



Threats
Competition with other coffee cafes-Barista,
Mochas
Competition from tea, aerated drinks and
other beverages
Hukka parlours like
Sheeshas,Peshawar,Koylas capturing youth
attention
Entry of international players like StarBucks
in India
Weakness
Competition
Weakness
Direct
Barista
Caf Mochas
Qwiky
Costa Coffee
Indian Coffee House
Indirect
Eateries like
McDonalds and
Haldirams

Local tea joints , coffee
shops like Caf Nescafe
Global
Starbucks planning to
enter India

Coffee Bars in countries
where it is operating or
plans to operate
Recommendations
Targeting more than youth
Beyond just coffee and hangout
International Business Expansion
Establish Competitive Point of Parity
Online Sales of Coffee and Merchandise
Promotion Strategies
Collaborations
Postal CCD Coffee Cards
Coffee Vending Machines in Corporate Offices
Ensure Brand Loyalty
Caf Citizen Cards
Special offers, surprise gifts and complimentary hot
beverages to regular customers

THANK YOU