Cafe Coffee day (CCD)

SERVICE MARKETING
PROJECT
ON
CAFÉ COFFEE DAY
By
Archana, Hardik, Sanjay, Tirthankar
(SIESCOMS)

CAFÉ COFFEE DAY – Table of Index
1. CCD Introduction 02
2. STPD (Segmentation, Targeting, Positioning, Differentiation) 07
3. Perception Mapping 10
4. SWOT Analysis 11
5. Competitors Analysis 12
6. PESTEL (Political, Economic, Social, Technological,
Legal, Environmental) 14
7. 7 PCs P’s Service Marketing 15
8. Strategies (Distribution, Positioning and Focus 43
9. Porters Five Forces 45
10. SPANCO (Tangible / Intangible) 46
11. Recommendations 47
12. Partners 48
13. Conclusion 49
14. Q&A 50
15. References 51

CAFÉ COFFEE DAY - Introduction
 Founded in 1996
 India's largest coffee conglomerate, Amalgamated Bean Coffee Trading
Company Ltd
 Strives to provide the best experience to their guests
 Pioneer of the café culture and the first to launch the ‗coffee bar‘ concept in
India
 Network strength: 1450+ cafés in 172 cities/towns across India and growing
 First to roll out the ‗coffee bar‘ concept in India with its first café in Bangalore.
 Outlets set up are based on the three formats -- cafe, lounge and square.
 Menu ranges from signature hot and cold coffees to several exotic
international coffees, tea, food, desserts and pastries and exciting
merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is
available at the cafés
 CCD is present in every nook and corner of the country which includes Vienna,
Austria and Karachi and plans to open across Middle East, Eastern Europe,
Eurasia, Egypt and South East Asia in the near future

CAFÉ COFFEE DAY – Introduction Continue…
 In 2010, they clubbed all his businesses (except agriculture) under Coffee
Day Resorts Holdings.
 Existing investors include global PE firms KKR and Co. LP, New Silk Route
Partners LLC and Standard Chartered Private Equity have 25% stake
 Darby Overseas Investments Ltd—the private equity arm of Franklin
Templeton Investments, International Finance Corporation and Deutsche
Bank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd
 CCD’s SBU
– Coffee Day Fresh 'n' Ground
– Coffee Day Xpress
– Coffee Day Take away
– Coffee Day Exports
– Coffee Day Perfect
– (FMCG Packaged Coffee) division

WHY CAFÉ COFFEE DAY
 Average Footfalls: 300 per café per day
 Average dwell time at café: 45 minutes
 Meeting place for 15-45 year olds
 A place where :
 Students frequently visit most after ―home and workplace/college‖
 Friends and colleagues meet n groups of 3 or more
 One rejuvenates and are free to be themselves rather than a place to
be ―seen at‖
 The café is also the venue for business meetings (23% ), celebrating special
occasions (20%) or just plain ―Time Pass‖ (57%).

Key Target Audience
 Major chunk of CCD customers falls within the
age group of 20 to 30 which accounts for
57% of the overall percentage.
 The group comprises of mainly college going
students and young working professionals
27%
66%
7%
Professionals
Students

 Middle class and upper middle class
youth
 Students, House wives, executives and
youngsters
 People who value a great cup of coffee
 CCD seeks to target not just the youth
but anyone who is ―young at heart‖.
 1481 outlets in 200 cities
 Strong and Stable Parentage
 Right Locations
 Place a cafe in every possible location
where some business can be generated.
 To be present in educational institutions
and corporate campuses
 ―Third Place" away from the home
and college or workplace for the
young and the young at heart.
 Coffee Bar
 Fun Place
 Home and Workplace
 Medium Price Brand
Café Coffee Day has its main consumer
base in the age group of 16-30 years.
TARGETING
POSITIONING DIFFERENTIATION
SEGMENTATION
S-T-P-D

POSITIONING STRATEGY
POSITIONING OF DIFFERENT OUTLET
Café Coffee
Day
• Coffee lovers
• Youth
• A place for
Hang out
The Lounge
• Premium
Cafe
The Square
• Exclusive for
Coffee lover

– Changing the logo to a ‗Dialogue Box‘ - with the words Café Coffee
Day, symbolizes a perfect place to ‗relax and dialogue‘
– Tagline : a lot does happen over coffee!!
New Logo
REPOSITIONING CCD

Perception Mapping
Quality of service (High Involvement)
Quality of service (Low Involvement)
High Price Low Price

SWOT Analysis
SWOT
OPPORTUNITY
 Fastest growing industries in Asia.
 Preferred for informal meetings.
 Gone international
STRENGTHS
 Largest retail chain of cafes
 ISO 9002 certified company
 Quality and taste
 Youth oriented brand
 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
THREAT
 Competition with established and
International other coffee cafes like
Barista, Starbucks, Costa Coffee,
Coffee Mochas, Gloria Jeans, Coffee
Bean & Tea Leaf and Illy Café.
 Hukka Parlours.

Competitor Analysis
CCD
54%
Barista
26%
costa
coffee
14%
others
6%
Market Share
CCD
68%
Starbucks
12%
Gloria
Jeans
3% Barista
17%
Share of mind

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

Easy sourcing of coffee beans
Cost control because of Govt regulations
Political
Economic
Social
Technological
Legal
Heavy coffee drinks in South India
Cheaper sourcing maintain quality
Targets youth and middle class
Affordable for a meeting place
Wifi facility at every outlets and music
Digital Marketing for promotions
Environmental
PESTAL
Use Bio degradable products
Ethical and based on customer delight
Less consumer complaints and quick
customer service

7 P’s of SERVICE MARKETING
PRODUCT PRICE PLACE PROMOTION
PHYSICAL
EVIDE
PEOPLE PROCESS

SERVICE PRODUCT
Core Product
 Experience
Supplementary services
 Wide range
 Merchandising
 Ambience
Delivery
 Hospitality (Lounge & Square)
 Price of the product

SERVICE FLOWER
Facilitating Services
 Information
- Menu
- Website
 Payment
- Credit Card
- Cash
- Privilege Card
 Billing - at the counter
 Order Taking
- Assisted by the
attendee
Information
Payment
Billing Order –taking

SERVICE FLOWER
Enhancing Services
 Consultation
- Assistance
 Hospitality
- Food & Beverage
- Music
- Wi-Fi
- Washrooms
 Safekeeping
- Credit Card Security
- Parking
 Expectations
- Happy Hours
- Privilege Cards
Safekeeping
HospitalityExpectations
Consultation

PRODUCT PORTFOLIO
Food and Beverage Non Food Items B2B
Food Beverage
Deserts Coffee
Coffee Powder Bulk/ Corporate
Orders
Snacks Tea
Coffee Machine Catering
Services
Cakes Chocolate Shakes
Cups & Mugs Coffee Vending
Machines
Sundaes Frappe
Chocolate and
cookies
Advertising
Space
Heavy Foods
(in Lounges)
Fruit Shakes &
Lemonades
Apparel &
Accessories
Gift Cards &
Vouchers
Product Mix Width
Product
Line Length

SERVICE MARKETING MIX OF
CAFÉ COFFEE DAY
PHYSICAL
EVIDE
PEOPLE PROCESS

PRICING STRATEGY
 PSYCHOLOGY PRICING
– Pricing the product as Rs 69, 79, 59 etc. rather
than in the multiples of ten to give a feel that
the product less priced
 LOCATION PRICING: On the basis of outlets, prices
have been positioned
• Café
• Lounge
• Square
 COMBO PRICING
– Clubbing up two or more products on special
occasions

PRICING STRATEGY
 PREMIUMS PRICING
– Adding things like cream, chocolate sauce
and positioning as a premium coffees
 VALUE BASED PRICING
– Providing different variants in terms of
prices by altering the quantity to give a
sense of affordability

 Strategically located outlets
 Kiosks in offices
 Coffee machines in college canteens
Types of Stores
Café Coffee Day The Lounge The Square
PLACE

Café Coffee Day Store
Coffee parlors where people can
enjoy the coffee have eatables and
hangout with friends
Café Coffee Day Square
A unique Café where variety of single
origin coffee brews from coffee-
growing countries are available
Café Coffee Day Lounge
Premium café from Café coffee
day target selected group

 Started TVC and Print campaign at the end of 2012
 Co Branding in Movie and TV serials
 Sales Promotion Activities
– Combo Deal
– Happy Hours
– Privilege cards
– Redeemable coupons
 Through Interactive Media
 Held Contest around a Very Popular Programme
 Tie up lot of youth brands
PROMOTION

 Contests have been activated through leaflets/contest forms
given out with the menu-card /bill folders
 Drop boxes, which also add to prominent visibility, are used to
collect all entries to the contest
CONTESTS @ CAFES

ON THE WALL
The most imposing branding option within a cafe for visual communication
with minimal amount of text

Tent Cards are the chosen element in the cafes
since they are all about “I am here, you cant
miss me”
ON THE TABLE: STICKERS & TENT CARDS

SERVICE MARKETING MIX OF CAFÉ
COFFEE DAY
PHYSICAL
EVIDENCE
PEOPLE PROCESS

PHYSICAL EVIDENCE
 Ambience
– Different ambience the look and feel
for different outlets
 Shop Colour
– Violet for Café coffee day shops
– Sea green for Lounge
– Brown for Square

SERVICE MARKETING MIX OF CAFÉ
COFFEE DAY
PHYSICAL
EVIDE
PEOPLE PROCESS

PEOPLE
 Dressed in a particular uniform
 Soft spoken, friendly behaviour
 Customer Engagement Activities
– Special Offers on Occasions
(Birthday, Valentine day, Friendship day
etc.)
– Online Contests
– Happy Hours

PROCESS
 People Processing Services
 Minimum Response Time
 Complaints and feedback
 Assisted by the attendee or the brew master in Lounge and Square
 Self Service Counter for Café Coffee Day outlets in Offices / few Malls.
 Ordering and delivery earlier was self service and now most of the
coffee shops have waiters to take order and deliver at the table

BLUEPRINT FOR SERVICE
DELIVERY

Delivers
the order
Data entry
SUPPORTPROCESSCONTACTPERSON
(BackStage)(OnStage)
CUSTOMER
PHYSICAL
EVIDENCE
Prepares
Food / Drinks
Informs about the
order placed
Customer
Arrives at
CCD
Customer
walks -in
Line of interaction
Line of visibility
Line of internal interaction
CCD
exteriors
Views
Menu card
Goes to the
table
Furniture
CCD interiors
Ambience
Interior design
CCD boy/girlMenu
Places
order
Sits
Chats
Waits
Makes the
payment
Leaves
Requests
for bill
Greeted by
CCD boy/girl
Takes order
Order
received
Eats
Receives Food/Drink
Accepts
request
Hands over
the bill to
the customer
Bill
generated
Billing system
Processes bill
Delivery
Tray
Food & drinks
Exit way
CCD exteriors
CCD boy/girl
PROCESS AT CCD

CHARACTERISTICS OF SERVICES
 Intangibility
– Experience
– Taste of Coffee
 Inseparability
– Service provided
 Perishability
– Availability of tables
 Heterogeneity
– Ambience of different outlets

 Easy accessibility
There is a Cafe Coffee Day outlet in every major city in India and are
easily accessible.
 Rural area locations
Customers in the smaller communities also enjoy good quality
coffee and snacks at affordable costs because the Cafe has set up
outlets in the rural areas in India.
 Distributors
The coffee produced on the Cafe’s farms, are distributed through
wholesalers and retailers to customers who wish to use the coffee
at home.
DISTRIBUTION CHANNEL STRATEGY

FOCUS STRATEGY ANALYSIS
Service focused
Café Coffee Day Premium
Cafes (Lounges)
Unfocused
CCD cafe outlets
Fully focused
Café Coffee Day Square –
an exclusive coffee bar
Market focused
CCD Xpress (Kiosk)
WideNarrow
Many
Few
Service Offerings
No.ofMarketServed

Porters Five Forces
Industry
Rivalry
(HIGH)
Threat of
new entrants
(LOW)
Threat of
Substitutes
(HIGH)
Supplier's
Power
(LOW)
Buyer‘s
Power
(HIGH)

SPANCO - Tangible / Intangible (CCD)
S - Suspect / Security – All Customer who wants to eat snacks Or have a peaceful
Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy food
and drinks.
P - Prospect / Profit – All college /school going Students, Kitty goings groups and
business customers. Same price as other notable brand Better taste and crispness
Value for Money
A - Approach / Analysis -Analysis Research and customer focused studies on what
Indian customers looking for hot and cold drinks in peaceful good environment.
Wished to taste new & innovative products Unique freshness flavour
N - Negotiation / Number Strategy - Change the product Unique Selling
Proposition Offer reasonably good prices quality product and services. Coffee /
tea variants High price & high volume Other Varieties (cold drinks and snacks) Low
price & high volume
C - Closing / Core need– Offer good services and quality product. Clear cut
differentiated product Existing network of distribution

Recommendations
1. To improve the interiors and décor.
2. To have more and more tie-ups.
3. Only 50 % or less than 50 % people find Café Coffee Day
quality of service, ambience, pricing and location to be very
good which proves that still Café 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 Café in the country.
2. The major competitor undoubtedly Barista.
3. That Café 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 café experience.
6. ―A lot can happen over coffee‖ message has touched the hearts of
youngsters who are the largest consumers of C.C.D.

References
 Personal experiences
 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
 www.slideshare.com

Cafe Coffee day (CCD)

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