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AMITY GLOBAL BUSINESS SCHOOL,
          HYDERABAD




Service Marketing Project Report
      On Café Coffee Day

  Submitted by :- Nandita Sadani
  Enrollment No. :- A30601909048
         PREFACE
A Project Report on Café Coffee Day


Marketing strategies are methods followed by most successful and well known companies to
improve their scope in any market. It is a means by which we determine whether one company is
better than the other or not. Food chains are a growing industry in the modern world with an
increase in the number of working hours of the average working person. Hence, even food chains
need to improve their marketing strategies to appeal to the middle-class consumer.


The main aim of this project is to make the reader understand the various strategies followed by
food companies to improve their scope on the consumer and to add appeal to their brand as a
whole by being creative and unique. Here I am going to talk about the Café Coffee Day as a
service industry. The Strengths, Weakness, Opportunity and Threats of Café Coffee Day. The
Environment, Competitors etc of Café Coffee Day. The service blue print of Café Coffee Day.
The various techniques followed by Café Coffee Day have been listed in this project in an easy
and understandable manner.


The contents of this project focus on the marketing strategies and techniques used by Café
Coffee Day to make it such a global brand with universal appeal.




                             TABLE OF CONTENTS
S. No.          Contents                                                     Page No.


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A Project Report on Café Coffee Day

 1.        Executive Summary                                           4-5

 2.        Industry analysis                                           6 -13
 2.1       Current trends in the industry                               14
 2.2       Roles of technology                                          14
 2.3       Major players                                              14 - 15
 2.4       Competition                                                16 - 20
 2.5       Tangibility spectrum                                         20
 3.        Typical Service Offering                                     21
 3.1       Customer’s expectations                                    21 - 22
 3.2       Bundle of benefits                                         23 - 25
 3.3       Typical service performance of firms                         26
 3.4       Services quality dimensions                                26 - 27
 3.6       Customer‘s involvement in the service delivery               27

 4.        Service Blueprint                                            28
 4.1       Service encounters / moments of truth                        29
 4.2       Value of blueprinting                                      29 - 31
 4.3       Learning form this exercise                                  31

 5         Physical Evidence                                            32
 5.1       Roles of servicescape play in this industry                32 – 33
 5.2       Aspects of servicescape influencing the service delivery   33 – 34
           process

 6.        Wild Card                                                    35
 6.1       Pricing                                                    35 - 37
 6.2       Promotion                                                    37
 6.3       Place                                                        38
 6.4       People                                                       38
 6.5       Process                                                      38
 6.6       Positioning                                                  39
 6.7       Distribution Process
 7.        Industry Section                                             40
 7.1       SWOT Analysis                                              40 – 41
 7.2       Porters Five Forces Model                                  42 - 43

 8.        Conclusion and Recommendations                               44
 9.        Bibliography                                                 45
1. EXECUTIVE SUMMARY

 ANALYSIS OF THE COFFEE BAR INDUSTRY


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A Project Report on Café Coffee Day


Coffee has been around in India since the 17th century. However, coffee drinking has
traditionally been largely restricted to domestic consumption, and mostly in the South Indian
states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee has been around in India
since the 17th century. However, coffee drinking has traditionally been largely restricted to
domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala
and Andhra Pradesh.


THE 7 P’S OF MARKETING MIX


Product , price , place , promotion , process , people , physical evidence constitute the 7 P’s . All
the P’s are described in detail in the project.


SERVICE BLUEPRINT


Service blueprints need to describe time in a service. This includes the sequence of events of a
service experience, its durations and timings. A blueprint should graphically describe this time
element. A sequence of events - sometimes called use cases or flows - is relatively easy to
blueprint as it can be represented in a linear flow identifying user actions, service responses and
the touch points or interfaces that enable the service relationship. Sequences become challenged
when there are multiple options or directions and when the planned process goes awry.


SERVICES CAPE


Servicescape may be likened to 'landscape'. It includes facilities exterior (landscape, exterior
design, signage, parking, surrounding environment) and facilities interior (interior design &
decor, equipment, signage, layout, air quality, temperature and ambiance).
Servicescape along with other tangibles like business cards, stationery, billing statements,
reports, employee dress, uniforms, brochures, web pages and virtual servicescape forms the
'Physical Evidence' in marketing of services.



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A Project Report on Café Coffee Day

Physical evidence consists of servicescape combined with the tangible elements, so servicescape
is a part of physical evidence.


SWOT Analysis


It tells about the strengths, weakness, opportunities and threats of the industry. The strengths and
weakness are internal and the opportunities and threats are external.


ANALYSIS OF CAFÉ COFFEE DAY


Café Coffee Day pioneered the café concept in India in 1996 with the inauguration of its first
outlet in Bangalore. CCD saw the potential of the youth market and embarked on a dynamic
journey to become the largest organized retail café chain with a distinct brand identity of its own.
Through the assignment, we would Study the marketing Mix adopted by café mocha. Their
target audience and market positioning




   2. INDUSTRY ANALYSIS

In hospitality industry there is much kind of outlets like hotels and resorts, restaurants, bar,
coffee shop these are the place is serving food and beverage here I am going to give my research

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A Project Report on Café Coffee Day

about coffee shops which providing like hot and warm coffees and quick bites to the customers. I
did my research work on Indian coffee shop company who having more than 900 café in 91
major cities in India and outside India.


The world coffee production in the coffee year 2009-10 is estimated to be 123.6 million bags
signifying a decline of over 4.5 million bags in the CY 2008-09 when production totaled at 128.2
million bags. This is revealed in a report of International Coffee Organization market report for
January 2010 excluding additional information that has to come from Colombia and Vietnam.
The ICO report also states of a significant fall in coffee production in Brazil - by about 14
percent besides production shortfall apprehended in countries like Cote d'Ivoire; Tanzania,
Uganda, Papua New Guinea, Vietnam, Mexico, El Salvador, Equador and Peru. The Colombian
production is unlikely to register worth mentioning increase. The over all world supply of coffee
is likely to be tight in 2010 due to low level of opening stocks as well.
 Total world exports of coffee (2008 & 2009)
                         2008                    2009                    % Change
  Colombian Milds          12219                   9278                    -24.07
  Other Milds              22524                   20861                   -7.38
  Brazilian Naturals       28724                   30033                   4.56
  Robustas                 34199                   34518                   0.93
  Total                    97666                   94690                   -3.05
  Source: International Coffee Organization, Coffee Market report, January , 2010


In the export front calendar 2009 closed with a decline of 3 percent at 94.7 million bags from
97.7 million bags in 2008. World consumption however is provisionally estimated at 130
million bags in 2008 from 128 million bags in 2007. Domestic consumption in exporting
countries was up at 36.7 million bags compared with 35.4 million bags in calendar 2007.

The Brazilian Coffee Industry Association expects 4.15 percent increase in world consumption
of coffee.

Indian Coffee Board puts country's coffee production at 2.90 tonne (Post monsoon estimation)
and 3.06 tonne (Post Blossom Estimation) respectively. For the present crop year beginning
October, the board has estimated an output of Arabica at 101,525 tonnes and Robusta 204,755

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A Project Report on Café Coffee Day

tonnes. Karnataka leads the country with 2.05 tonne (Post monsoon estimation) and 2.21 tonne
(Post Blossom Estimation) production followed by Kerala and Tamil Nadu. According to ICO
estimate, India produced over 3.1 million bags of 60 kgs each in 2009 compared with 3.3
million bags in 2007.Country's coffee exports during fiscal 2008-09 stood at 1.96 lakh tonne
signifying marked decline from 2.18 lakh tonne in 2007-08.

  India's Coffee Production (In tonne)


State                         2006-07      2007-08      2008-09      2009-10
Karnataka                     206025       191575       183860       205700
Kerala                        59475        49000        57200        59250
Tamilnadu                     18225        18100        16255        19350
Non-traditional areas
                          4085             3175         4870         5185
(Andhra Pradesh & Orissa)
North Eastern region      190              150          115          115
Total                     288000           262000       262300       289600*


Post Monsoon estimates *
Source: Federal Ministry of Commerce, Government of India

India accounts for about 4.5 percent of world coffee production and the industry provides
employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70
percent of country's total coffee production followed by Kerala (22 percent) and Tamil Nadu (7
percent). Europe accounts for about 70 percent of India's total coffee exports. Of this again, 70
percent is shipped via Suez Canal. Major Indian coffee importing countries include Italy,
Germany, Russian federation, Spain, Belgium, Slovenia, US, Japan, Greece, Netherlands and
France.


India's Exports of Coffee
Year                                  Quantity (In tonne)            Value ( In Rs crore)
2006-07                               249029                         2007.90
2007-08                               218998                         2046.29
2008-09                               197171                         2242.64
2009-10 (Upto March 8, 2010           181225                         1944.98
Source: Federal Ministry of Commerce, Government of India

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With a view to expand coffee cultivation, Coffee Board has been implementing developmental
programmes for coffee development in North Eastern Region and Non Traditional areas. During
11th Five Year Plan, Coffee Board has proposed to support coffee expansion programme taken
up by the Integrated Tribal Development Agency on 24000 ha. area in Andhra Pradesh and on
850 ha. area in North Eastern Region, which will facilitate export of coffee. As a part of export
promotion, the Coffees from different regions with their logos are promoted including the coffee
from the areas under Integrated Tribal Development Agency, as ‘Araku’ Coffee. Constant
endeavour is being made by the Government to help the coffee growers to ease their bank debts.




CAFÉ COFFEE DAY

India’s favourite coffee shop, where the young at heart unwind.
Café Coffee Day is a part of India's largest coffee conglomerate, Amalgamated Bean Coffee
Trading Company Ltd. (ABCTCL), the first to roll out the ‘coffee bar’ concept in India with its
first café in Bangalore. It’s a Rs. 750 crore, ISO 9002 certified company. With Asia’s second-
largest network of coffee estates (10,500 acres) and 11,000 small growers, making its holder the
largest individual coffee plantation owner in Asia, this in addition to being India's only vertically
integrated coffee company. Coffee Day has a rich and abundant source of coffee. This coffee
goes all over the world to clients across the USA, Europe and Japan, making us one of the top
coffee exporters in the country.


We all know that Café Coffee Day is one of the most popular hangout places. The coffee joint is
very famous among youngsters. Coffee is one of the favorite beverages and has become more
appealing because of its variety.


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Coffee has been around in India since the 17th century. However, coffee drinking has
traditionally been largely restricted to domestic consumption, and mostly in the South Indian
states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee has been around in India
since the 17th century. However, coffee drinking has traditionally been largely restricted to
domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala
and Andhra Pradesh.


India ranks sixth as a producer of coffee in the world accounting for 4.5% of the global coffee
production. India has about 170,000 coffee farms cultivating around 900,000 acres of coffee
trees. India is the largest producer and consumer of milk in the world with 98% of milk being
produced in rural India. Coffee consumption in India is growing at 6% per annum compared to
the global 2% plus.


Café Coffee Day’s menu ranges from signature hot and cold coffees to several exotic
international coffees, tea, food, desserts and pastries. In addition, exciting merchandise such as
coffee powders, cookies, mugs, coffee filters, etc. is available at the cafés.


It was in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee
estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading Company
Limited, popularly known as Coffee Day was formed. With a rich coffee growing tradition since
1875 behind it coupled with the opportunity that arose with the deregulation of the coffee board
in the early nineties, Coffee Day began exporting coffee to the connoisseurs across USA, Europe
& Japan. Coffee Day's two curing works at Chikmagalur and Hassan cure over 70,000 tonnes of
coffee per annum, the largest in the country. Coffee Day has a well-equipped roasting unit
catering to the specific requirement of the consumers. The process is carried out under the
control of experienced personnel to meet highest quality standards. The most modern technology
available is used to maintain consistency and roast the coffee beans to the demanding
specifications of the discerning coffee consumers.




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A Project Report on Café Coffee Day

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at
Brigade Road in Bangalore. Today, more than a decade later, Café Coffee Day is the largest
organized retail café chain in India with cafes functioning in every nook and corner of the
country. Drawing inspiration from this overwhelming success, Café Coffee Day today has cafes
in Vienna, Austria and Karachi. What’s more, new cafes are planned across Middle East, Eastern
Europe, Eurasia, Egypt and South East Asia in the near future.


In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the concept of
‘Power of Dialogue’. In accordance with this new brand identity, CCD planned to give all its
existing outlets a new look by the end of 2009. Cafés would be redesigned to suit different
environments such as book, music garden and cyber cafes suitable for corporate offices,
university campus or neighborhood. The change plan included new smart menu, furniture design,
among others.




VISION:


To be the only office for dialogue over a cup of coffee


MISSION:


“To be the best Cafe chain by offering a world class coffee experience at affordable prices.”


The offerings are designed in such a manner that one cannot be spelt without the other; there are
the hot coffee or cold coffee combinations with delectable desserts and special coffee and eats
combinations for even a group of four friends.


Coffee Day Comprises of the following Sub Brands


    1. Coffee Day - Fresh & Ground
    2. Café Coffee Day

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    3. Coffee Day – Vending
    4. Coffee Day - Xpress
    5. Coffee Day – Exports
    6. Coffee Day - Perfect


Pioneers of the Café Concept in India with its first Café at Brigade Road, Bangalore in 1996.
This Café was opened as a Cyber Café (first of its kind) but later, with the burst of cyber cafes it
reverted to its core competency i.e.; Coffee. Essentially a youth oriented brand with majority of
its customers falling in the 15-29 year age bracket .Each café, depending upon its size attracts
between 400 and 800 customers daily. It is a place where customers come to rejuvenate
themselves and be themselves.




Key Features
    •   Pioneers of the Café Concept in India with the its first Café at Brigade Road, Bangalore
        in 1996. This Café was opened as a Cyber Café (first of its kind) but later, with the burst
        of cyber cafes it reverted to its core competency Coffee.
    •   Essentially a youth oriented brand with majority of its customers falling in the 15- 29
        year age bracket
    •   Each café, depending upon its size attracts between 400 and 800 customers daily.
    •   It is a place where customers come to rejuvenate themselves and be themselves.


USP of the Brand:
    1. Affordable Price
    2. Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the India             Barista
        Championship 2002




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2.1 CURRENT TREND IN INDUSTRY

Growth of Café Industry in India
Hot beverages have always been a part of the tradition of India, especially South India. Coffee
took the first seat in South India when the traditional Brahmin classes brought down. In order to
spread the drink, coffee houses emerged at various places in the country, which also served as
the opposite places for lawyers and the educated class to hold discussions ranging from politics
to cinema. It is also believed that many scripts and ideas for films evolved here.


The drink also became famous and as a result even five star hotels began cashing in on it.
Several hotels all over the country started opening coffee- shops that catered to high- end
customers. This showed the popularization of coffee cafés, to all sections of society.


The drink has now become more of a concept than merely a drink itself. The last decade
witnesses the growth of numerous coffee pubs in the country. A number of coffee café owners
tried to westernize the taste in contrast to the filter coffee.
Now, large retail chains like Qwikys, Barista, and Café Coffee Day have opened up around the
country. The concept of a café today is not merely about selling coffee, but about developing a
national brand. Retail cafés now form a multi-crore industry in the country, and have huge
potential for growth locally, and internationally.


The more than US $150 million organized coffee retail business in India is coming into its own,
fed by rising incomes and a fast-food sector that is growing at 40 per cent annually. Coffee
consumption has increased from 55,000 tons to 80,000 tons after decades of stagnation. Industry
sources say the niche coffee retail format is growing at 10-12 per cent a year, with branded
coffee accounting for 53 per cent of sales, unbranded 40 per cent and cafes 7 per cent.


MARKET SIZE IN US




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Snapshot: Coffee Shop
Retail Sales Estimates Year End 2009 Coffee Cafes: (beverage retailers with seating) 1,250
locations averaging $550,000 in annual sales = $ 6.12 billion or adults who have visited a
coffeehouse in the past week:
     Average weekly spending $5 or under: 41%

     Rarely or never purchase food: 49%

     Consume the beverage off-premises: 52%

Demographics
Seventy-seven percent of U.S. adults drink coffee daily, and gourmet coffee consumption has
risen in the past five years. According to Scarborough Research, a market research firm that
studies media, lifestyle, and shopping patterns in the United States, in October 2008, 12 percent
of adults have been to a coffee shop in the past month. Although popularity of coffee shops has
recently spread across the nation, the West coast has the most coffee shop patrons. The ideal
ratio of coffee shops to residents in a particular area is 1:10,000




2.2 ROLE OF TECHNOLOGY

Technology plays a major role in Café Coffee Day because all the work like billing, stock
maintenance, inventory control, etc is done with the help of computers.
For making the coffee and tea they require machines, which give an edge to the service provider
over local players like the small tea stall or coffee stall.



2.3 MAJOR PLAYERS IN THE INDUSTRY

Following are the major players in coffee shop industry:



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    A. Barista Lavazza

        •      One of India's largest franchised chains of coffee bars, the Barista Lavazza coffee
               company operates around 205 outlets across India – 15 crème lounges and the rest
               espresso coffee bars.

        •      It plans to open 300 new stores over the next three years and has begun aggressively
               marketing its products outside Indian borders into neighboring countries. Considered
               the Starbucks of the East, Barista offers many of the same menu items like espresso,
               lattes, cappuccino and various pastries, in addition to basic coffee. Despite being
               Indian, Barista sticks closely to its Italian roots by serving Italian coffees exclusively.



    B. Costa Coffee

               •   British coffee retail chain Costa Coffee launched its outlet in New Delhi,
                   becoming the first international coffee chain to start operations in India in
                   September 2005.



               •   The chain is currently operational with 36 outlets and expanding aggressively to
                   tap this potential market.



    C. Café Mocha

               •   It was started by a Mumbai based entrepreneur Riyaz Amlani, who has a long
                   experience in the hotels and restaurants business. This store is strikingly different
                   from others, they love being over-the-top and thus it’s a place that either you love
                   it too much or find it ’Over the top’. Studying the marketing Mix adopted by café
                   mocha. Owned by Impresario Entertainment & Hospitality Pvt. Ltd.


               •   Mocha opened its doors at Churchgate (Mumbai) in December 2001




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               •   15 operational outlets across the country and its own central kitchen


               •   Future plans for Singapore, Dubai and New York and Chicago.

Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with their multi-
products offering outlets like Reliance Timeout and Desi Café respectively.




2.4 COMPETITION


    Barista is the major competitor

Barista coffee was establishes in 1999 with the aim of identifying growth opportunities in the
coffee business. Increasing disposable incomes and global trends in coffee indicate immense
growth potential in one particular segment.


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More significantly, they believe they have been quick to spot a latent need waiting to be trapped:
Coffee lovers seek a complete experience. One that combines intelligent positioning with the
right product Mix and carefully designed cafés. In other words, customers seek an “experiential
lifestyle brand”. As of today, Barista exists in over 22 cities, and operates over 140 outlets
nationally. In the last 2 years, Barista has opened over 100 outlets in the country and with a new
outlet opening nationally every 14 dates; Barista is currently experiencing phenomenal growth.
With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth opportunities
in Asia, making it highly competitive international brand.

Marketing Mix

Price Mix

Barista has a ‘Skim Pricing Policy’. They began with a higher price, and skimmed the cream for
the market. With the sudden spurt of growth in number of outlets, came the benefits of
economies of scale. Because of this, they have been able to gradually lower their prices, and
appeal to different segments of their target market. Currently, their prices are the lowest they
have ever been, and they can competitively match their prices against Café Coffee Day’s prices.
The prices are constantly changing though, and the last 1-year has seen 3 changes (mostly
reductions) in prices. This gradual price reduction meant that Barista could maintain its profit-
maximization policy until it could earn large cost savings because of the benefits of high volume.
The main factors that affect their pricing are their cost of goods sold. The costs are quite high
because imports a majority of its products and product. Considering that Barista is trying to
target a market whose age range is between 18 and 60 years, a pricing policy appealing to this
segment is difficult. Extremely low prices act as a deterrent to some customers who might regard
it as an indicator or quality, while very high prices cannot be afforded by most of the youth. But
since Barista’s current consumer profile is quite young, their prices are mostly inexpensive, and
at par with their competitors.

Process Mix

The order and delivery process at Barista is based on self- service, where a customer goes up to
the counter to place his order, and goes back to the counter to pick his delivery once it is
prepared.

Product Mix


         Coffees & Teas        Refreshing                Eatables
                               Alternatives

         Coffee with Milk      Smoothies                 Sandwiches
         Cappuccino            Guava                     Paneer Tikka
         Caffe Mocha           Mango                     Cheese & Tomato
         Caffe Latte           Grape                     Chicken Tikka
                                                         Smoked Chicken
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         Black Coffee         Granitas                  Rolls
         Espresso Italiano    Blue Curacao              Kadhai Paneer Roll
         EsperanoTM           Lime Ice                  Chicken Masala Roll
         Americano            Mixed Fruit Tango
                              Guava Crush
         Dessert Coffees      Milk Based                Pastas

         Latte Bianco         Strawberry Freeze         Tangy Tomato Pasta
         Caffe Borgia         Mocha Freeze              Creamy Chicken Pastas
                              Icepresso
         Cold Coffees         Iced Tea                  HOT TEA

         Brrrista             Lemon                     Assam
         Brrrista Frappe      Peach                     English Breakfast
         Brrrista Blast                                 Darjeeling
         Iced Caffe Mocha                               Earl Grey
         Coffee Add-ons       Other Drinks              Desserts
         Various Flavours     Ginger Fizz               Walnut Brownie
         Chocolate Fudge      Kinley Water              Mocha Excess
         Whipped Cream                                  Chocolate Excess
         Espresso Shot                                  Dark Temptation
         Ice Cream Scoop                                Chocolate Mousse
                                                        Chocolate Chip Muffin
                                                        Almond Raisin Muffin
                                                        Apple Cake


People Mix

The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They
ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of
life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid-
back feeling of the café.

Promotion Mix

According to research, over 65% of Barista’s customers are in the 15- 30 age- group. The
majority of these are students and young urban professionals. Barista positions itself as a brand
for anyone who loves coffee. Their products, services
and outlets are more like the traditional European cafés, where people would meet for the love of
coffee, and for an intellectual appealing time. They position their outlets as a place “where the
world meets”, and they look to appeal to anyone in the 14- 60 age group that loves good coffee
and looks for a nice quiet time.




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        a) Logo, Colors, Images:

Barista, since the beginning has looked to use colors in its café interiors, logos and images; to
project a “warm, earth glow, synonymous with coffee”. Barista uses shades of Orange & Brown
to good effect to promote its “laid- back” atmosphere. The logo is a combination of Brown,
Orange and Light Yellow; with the word “Barista” written in an upward curve, and the word
“Coffee” underneath. A simple logo that perfectly expresses Barista’s brand image: A traditional
café for coffee lovers.

        b) Décor and Architecture:

Barista’s internal décor and architecture expresses the simplicity you would normally associate
with traditional cafés. The furniture is made of light shades of wood, and there are comfortable
sofas in bigger cafés. The walls are shades of orange, with various photographs of the love for
coffee spread around each outlet.

        c) Literature:

The literature provided by Barista is indicative of its brand image. The menus, posters,
pamphlets are all traditionally designed, with a classic and simple look. One aspect of particular
note is their magazine, which is privately circulated in the cafés. The magazine encourages
customers write, draw, make etc anything creative; and this is then published in the magazine.
The magazine not only provides an avenue for advertising, but also an opportunity for Barista to
express its brand image Barista currently carries out mass promotion campaigns. This is mainly
in the form of promotions in the Press, TV and Radio Medias. At present, they do not rely
heavily on advertising, but rely more on sponsorships and strategic alliances with other
corporations. Barista also takes part in various sales promotion activities to help increase sales at
their outlets.

        d) Sponsorships:

Barista sponsors various events and festivals, which provides them valuable promotion directed
at strategic markets. The sponsorships are mainly in kind, although major events are sponsored in
cash also.
         e) Sales Promotion:

Barista uses a special “Barista Coffee Card” for its sales promotion activities. The Barista
Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven. It
is available to all Barista coffee regulars. No membership fees, no references required. Fill out
the card and you are a member. As a Coffee Card holder, you earn one stamp on the card every
time you purchase a beverage. Simply present the card to the cashier when you place your order
at any of their outlets. Once you have collected seven stamps, you can hand over the card to
receive your complimentary hot beverage. Barista hopes this card can help drive sales growth,
and increase customer retention

        f) Collaborations:

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Barista has entered into special collaborations and alliances with various partners for co -
marketing brands. For example, Barista entered into a deal with Leo Mattel toys to provide the
popular board game Scrabble at every Barista outlet across the country .This is an ideal alliance
for both the organizations, because it provides Leo Mattel with an important avenue for
promoting their product, and it provides Barista’s customers an added attraction for spending
more time at Barista outlets .Barista has also entered into partnerships with various movies, for
promotions through Barista, and recently, they tied up with Star World for its “Absolutely
Everybody” campaign.

Place

This is a prime factor in determining the success of a retail chain. However, Barista Coffee has
adopted a top down approach, wherein they first identify the cities and then decide on precise
locations within its limits .While selecting a city Barista has devoted substantial management
time and effort in zeroing in on the cities where they are now situated. The selection of the cities
was based on the following criteria.

    •   Sizeable population of executives, students and families in SEC A & Barista category.
    •    High disposable income with people looking for new vistas in leisure and lifestyle
        oriented concepts.
    •   High level or organized retail activity.
    •   Rapid socio- economic development.
    •   Level of commercial importance (Industrial cities, state capitals etc.)
    •   Number of educational establishments and opportunities available for employment.

On the basis of the above criteria, they had initially targeted cities like Delhi, Mumbai,
Bangalore, Chennai and Hyderabad. Chandigarh and Ludhiana were later added due to tie- ups
with ‘Planet M’ and ‘Ebony’ to set up store-in- stores at their outlets. They are also pursuing an
equally aggressive international business expansion strategy. They have over 50 overseas
locations presently under their consideration .They have already done their groundwork in terms
of getting brand and name registrations in over 30 of these locations.
To facilitate their global expansion, they plan to work with strategic partners, who share the
same vision of expanding and promoting the brand worldwide. Currently they have opened new
outlets in Sri Lanka and Dubai as a part of their international strategy.

2.5TANGIBILITY SPECTRUM




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3. TYPICAL SERVICE OFFERING

3.1 CUSTOMER’S EXPECTATIONS

When a customer visits a coffee shop they expect a good experience. They want the service
provider to provide them with the best services they have. From the chart given below we can

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easily make out that the customers gives high preference to the quality of services and they give
least preference to the pricing. The major reason behind customer giving least preference to the
price is because they want a good experience which is beyond price.




     From the above chart one can easily make out that 42% people consider the quality of
      services offered by the coffe shop before going to it.
     The next important factor considered by customer before choosing a coffee shop is the
      ambience. They want the coffee shop to be a cool hangout place where they can hangout
      with friends and do some combined studies




RATING TO CAFÉ COFFEE DAY BY THE CUSTOMER ARE SHOWN
IN THE CHART BELOW




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From the chart above one can easily make out the following things regarding to Café Coffee
Day:-
   1. Customers grade Café Coffee Day very good when it comes to ambience.
   2. Customers grade Café Coffee Day good when it comes to pricing.
   3. Customers grade Café Coffee Day very good when it comes to service offered.
   4. Customers grade Café Coffee Day very good when it comes to quality of product.
   5. Customers grade Café Coffee Day very good when it comes to Location.

Which simply proves that Café Coffee Day is one of the best hangout place for the youth who
consider the factors mentioned above while selecting a Coffee Shop.




3.2 BUNDLE OF BENEFITS

Following are the benefits that a customer can get from Café Coffee Day:

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    1. Benefits through pricing of products


        Considering that Cafe Coffee Day is trying to target a market whose age range is between
        15 and 60 years, a pricing policy appealing to this segment is difficult. The pricing is
        extremely low and act as a deterrent to some customers who might regard it as an
        indicator or quality, while very high prices cannot be afforded by most of the youth. But
        since Cafe Coffee Day’s current consumer profile is quite young, their prices are mostly
        inexpensive, and at par with their competitors.


    2. Benefits through different product line


        They are Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes.
        Coffee Day has a well-equipped roasting unit catering to the specific requirement of the
        consumers. The process is carried out under the control of experienced personnel to meet
        highest quality standards. The most modern technology available is used to maintain
        consistency and roast the coffee beans to the demanding specifications of the discerning
        coffee consumers. The coffee beans are supplied to all the cafés from Chikmagalur. The
        eatables at Café Coffee Day are catered by different vendors: example: ice creams are
        catered by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery. Café Coffee Day
        also sells merchandise through its stores. 5 per cent of the revenue comes from sale of
        merchandise. Café Coffee Day product Mix constitutes a wide range of products that
        appeal primarily to Indian coffee and snack lovers. Products have a decided Indian taste
        to it - be it food or coffee. Most of the eatables have been adopted to meet the Indian taste
        buds like samosa, biryani, masala sandwich, tikka sandwich etc. Thus they have been
        trying to capture the Indian taste along with classic coffee. The best selling item in
        summer is frappe, which is coffee and ice cream blended together. The young people
        favor it. In winter it is cappuccino. Their merchandising includes funky stuff like t-shirts,
        caps etc.
Coffee and Tea                    Refreshing Alternatives            Eatables
Hot Coffee                        Granitas                           Melting Moments
Espresso                          Blood Orange                       Banana n’ Walnut Cake
Espresso Americano                Cool Blue                          Banana Chocolate Mousse

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Macchiato                  Pineapple Crush        Banana Caramel pie
Cappuchino                 Emerald Ice            Chocolate Doughnut
Café Latte                 Ruby Surprise          Cookies
Chococinno                                        Marble Cake
Café Mocha                                        Pineapple Getaux
Irish Coffee                                      Chocolate Cake
International Coffee       Smoothies              Ice Creams
Colombian Juan Valdez      Mango Colada           Vanilla
Ethiopian Qahwah           Strawberry Colada      Chocolate
Kenyan Safari                                     Seasons Best
Cold Coffee                Cremosas               Quick Bites
Sweet Mint                 Litchi                 Samosa
Cold Sparkle               Ginger Spice           Puff
Brandied Banana            Pina Colada            Pizza
Tropical Iceberg                                  Croissant
Iced Eskimo                                       French Fries
                                                  Kathi Roll
                                                  Wraps
                                                  Biryani
                                                  Sandwiches
                                                  Kulcha
                                                  Burger
                                                  Pasta
                                                  Masala Sandwich
Coffee Add-Ons             Cool Refreshers
Honey                      Fruit Juices
Flavoured Syrups           Mineral Water
Red Eye
Whipped Cream
Scoop pf Ice cream
Chocolate Sauce
Teas
Assam Tea


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Masala Chai
Lemon ‘n Ice Tea
Kashmiri Qahwah
Apple n Cranberry ice tea



    3. Benefits through Location


        Cafe Coffee Day looks to cater to their target market with strategically located outlets.
        Their outlets are generally located at High Street/ Family Entertainment Centers.
        Considering their generic appeal, there are Cafe Coffee Day outlets in and around Malls,
        Cinemas, Colleges, and Offices etc. This endorses their brand image of a café that
        appeals to coffee lovers of all ages.


    4. Benefits through People


        The people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite and
        Positive.




3.3 TYPICAL SERVICE PERFORMANCE OF FIRMS




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From the above chart one can easily make out that the major competitor to Café Coffee Day is
Barista. Café Coffee Day is facing huge competition from Barista as both of the service
providers are targeting the youth segement.

3.4 SERVICES QUALITY DIMENSIONS

     Reliability


    It is the ability to perform the promised service dependably and accurately. Each and every
    coffee shop (local one or International brand) promises best taste in terms of Coffee. These
    promises should me met accordingly in each and every aspect like quality & quantity.


     Assurance


    Assurance positioning would have to be backed up by evidence of the knowledge and
    thoughtfulness of administrators, faculty and staff and their ability to inspire trust and
    confidence.
    It includes the knowledge and courtesy of employees and their ability to convey trust and
    confidence. The employees at Café Coffee Day are well trained to tackle problems without
    causing harm to customers.

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     Tangibility


    It talks about the furniture, menus, the interiors etc i.e. Physical facilities, equipment &
    appearance of personnel.


     Empathy


    Caring, individualized attention the firm provides to their customers. The mission of Café
    Coffee Day is “To be the best Cafe chain by offering a world class coffee experience
    at affordable prices”. This statement proves that they want to serve the target market i.e. the
    youth with full services that they want at an affordable price.


     Responsiveness


    Willingness to help customers and provide prompt service. Employees in Café Coffee Day
    are not quick to respond to the queries of their customer since the working staff is less in
    number. But still they somehow manage to respond to customers as per their demand.




3.5 CUSTOMER‘S                     INVOLVEMENT                    IN    THE         SERVICE
DELIVERY

In Café Coffee Day service Customer involvement in the service delivery does not exist as
everything is done by the staff. From taking the order till delivery of the order, whole process is
taken care by the staff.




4. SERVICE BLUEPRINT



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4.1 SERVICE ENCOUNTERS / MOMENTS OF TRUTH




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     When the customer first enters the restaurant he can find AD posters on the front glass of
        the Cafe Coffee Day.

     After entering into Cafe Coffee Day, customer is guided by an employee, where he is
        provided with a menu card for the order. Here customer can feel the ambience and the
        décor of the restaurant. After giving an order to the employee, employee passes the order
        to the front section of the kitchen. The employees in the front section would pass the
        order to back-end kitchen where the order is prepaid. Parallely, employee would update
        the billing machine. The prepaid order is then served to the customer.

     After availing the services and the products of Cafe Coffee Day, customer would ask for
        Bill. Employee would then give the updated bill to the customer.

     Customer will pay the bill either through cash or through credit/debit card. After payment
        is done the database of Cafe Coffee Day gets updated.

     After payment of the bill the customer leaves the restaurant.




4.2 VALUE OF BLUEPRINTING


Following are the uses or advantages of having a blueprint for a service:


     Providing a Platform for Innovation


First and foremost, service blueprinting provides a common platform for everyone – customers,
employees, and managers – to participate in the service innovation process. Blueprinting
provides a common point of discussion for new service development or service improvement (a
picture is worth a thousand words). The service blueprint gives employees an overview of the
entire service process so they can gain insight as to how their roles fit into the integrated whole.
This reinforces the notion that the total service is greater than the sum of its parts. This benefit of
a clearer organizational vision is realized by virtually every firm that utilizes blueprinting.

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     Recognizing Roles and Interdependencies


The process of blueprinting and the document itself generate insights into various role and
relational interdependencies throughout the entire organization. The customer’s actions and
interactions are highlighted, revealing points at which he or she experiences quality. The
blueprint reveals all of the touch-points that are critical in meeting customer needs and helps in
identifying likely points of service failure.
Utilizing the visual language of service blueprints puts everyone involved in the service design
process on the same page, creating more communication efficiency and informational precision
during the typically “fuzzy front end” of the service development process.


     Facilitating Both Strategic and Tactical Innovations


Service blueprints can be modified to suit any level of analysis desired. The methodology has
been used to improve macro- and micro-level processes, facilitate strategic and tactical decision-
making, as well as design complex and simple services with high and low levels of divergence.
Managers at all levels respond favorably to service blueprinting when they are introduced to it in
workshops and seminars.


     Transferring and Storing Innovation Knowledge


Service blueprints can be printed out or be stored electronically and made available to everyone
involved. Blueprints being developed can be posted on a collaborative website, providing all
participating parties with access to an editable form of the document. Suggestions and edits can
be posted, which can then be further discussed, blogged about, incorporated or nixed. In fact, a
great deal of the entire blueprinting process can be done remotely, or virtually.


     Designing the Moments of Truth




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Blueprinting promotes a conscious decision on what consumers see and which employees should
be in contact at each moment of truth.
In many services it is relatively easy to decide which elements of the service should be provided
in view of the customer and which elements should be performed behind the scenes, or
backstage. For instance, at a hotel, housekeeping may provide turn down service in the presence
of a customer, but the laundry is clearly a housekeeping activity best performed backstage.


     Clarifying Competitive Positioning


Service blueprinting allows firms to clarify competitive positioning by facilitating the
comparison of the desired service and actual service, or company and competitor processes.
Mapping dual processes for the identification of key service quality gaps is a highly useful
application of blueprinting. This is not surprising, given firms’ continuous efforts to position
their service offerings correctly in the highly competitive global marketplace.


     Understanding the Ideal Service Experience


We also perceive service blueprinting as being applicable within the realm of market research in
understanding and designing ideal service experiences. For instance, brands undergoing
repositioning often seek information regarding customer perceptions of what an “ideal” brand
within a given product or service category would look like. Customers are asked to identify
where such a brand would be positioned along key attributes or dimensions. For services, it is
often useful to have customers identify the ideal service process for a given service category.
Service blueprinting can help market researchers overcome the limitations inherent in asking
customers to describe such a service by using words alone. The service blueprint can provide a
means for service brand managers and service designers to view and compare the customer’s
ideal service, the firm’s actual existing service, and any number of competitors’ service
offerings.


4.3 LEARNING FORM THIS EXERCISE


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This exercise has helped me to understand the whole process about how the work is carried in a
coffee service provider. I was able to understand the importance of service blueprint. Because of
this exercise I was able to understand the concept of service blueprint in detail.
5. PHYSICAL EVIDENCE

    1. Décor & Architecture


Café Coffee Day had gone in for image change and revamping of interiors in the last quarter of
2001. Café interiors have been given a whole, new look. In a change from the largely wood and
granite based interiors, there is more of steel and lots more colour now. The young colours of
today, lime green, yellow, orange, and purple predominate. These colours are unified and used in
all the outlets and stores of Café Coffee Day.


    2. Literature


The literature provided by Café Coffee Day is indicative of its youthful image. The menus,
posters, pamphlets are all designed to attract young and young at heart. They also have their
magazine called as ‘Café Beat’, which is published monthly at their Bangalore head office and
distributed throughout the branches.


    3. Dress Code


The dress code is black dress with the logo of Café Coffee Day on one side. This is also is one of
the evidences.


5.1 ROLES OF SERVICESCAPE PLAY IN THIS INDUSTRY

“The environment in which the service is assembled and in which the seller and customer
interact, combined with tangible commodities that facilitate performance or communication of
the service”- Servicescape
                             By Booms and Bitner




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A servicescape is not a passive setting & it plays an important role in service transactions. An
evaluation of the roles they have in service encounters will reveal how important it is to design
an appropriate servicescape.



Below diagram shows the importance of Servicescape / Physical Evidence in terms of coffee
retailing industry:




From the chart given above one can easily make out the the following anayses:-

When it comes to giving highest priority, majority of the people would look for Quality,
ambience and physical evidence. Where as the other factors do not affect much.

Therefore it clearly proves that better services backed up by good servicescape is one of the
most important aspect in terms of attracting customers, when it comes to Coffee Retail
Industry or any fast food retailing business.




5.2 ASPECTS OF SERVICESCAPE INFLUENCING THE
SERVICE DELIVERY PROCESS

From customer Point of view:-

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    A. Exterior and Interior Design

    B. Ambience

    C. Food(quality, quantity & variety )




From the service providers point of view:-


    1. Logo, Colors, Images


Café Coffee Day has used bright red and green colors in its logo. RED stands for leadership and
vitality. It also stands for passion (… for coffee). The WHITE SWIRL signifies purity of
purpose, invigorating properties of growing coffee. The GREEN stroke harks back to their coffee
growing heritage and the coffee plantations that they own. It signifies 125 years of coffee
growing heritage of this vertically integrated group. Café is noticeably larger than the rest of the
text inside the logo box. This denotes that Café Coffee Day pioneered the café concept in India
way back in 1996. Café Coffee Day would like to own the word “café” in the minds of its
customers.


When one thinks of a café it’s got to be Café Coffee Day. The font used for “Café” is called
SLURRY. The font looks as though the letters have congealed out of a liquid. It gives the
impression that the word is still forming itself and evolving into something new and something
better constantly. This is the characteristic of Café Coffee Day’s customers and this is the
characteristic that the brand too wants to adopt. The upward SWIRL inside the logo box stands
for the invigorating and uplifting nature of coffee and the ambience at Café Coffee Day.


    2. Décor & Architecture


Café Coffee Day had gone in for image change and revamping of interiors in the last quarter of
2001. Café interiors have been given a whole, new look. In a change from the largely wood and
granite based interiors, there is more of steel and lots more colour now. The young colours of

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today, lime green, yellow, orange, and purple predominate. These colours are unified and used in
all the outlets and stores of Café Coffee Day.




6. Wild Card

6.1 Pricing

Considering that Café Coffee Day knows its major customer lies in the bracket of 15- 29, it has
tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee
ranges from Rs.20 to Rs.200. From the time it first started its operations, there has been only
minor changes in the pricing policy of Café Coffee Day. The changes have been more due to the
government taxes than any thing else.




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From the pie diagram above one can easily make out the consumer is ready to spend Rs . 100 –
200. So from this one can make out that Café Coffee Day need to keep the prices low inorder to
cater the current segement.


6.2 Promotion

Café Coffee Day does not believe in mass media promotions. But they are involved in all
the areas of serious consumer passion.
    •    Through television


Café Coffee Day held a contest around a very popular programme on Zee English called
Friends. All the six lead characters are shown often visiting a coffee shop and a lot of youth like
watching the programme. That is why they had a contest running where customers could win
Friends' merchandise. The linkage was that it is a youth based programme and it had a coffee
house.


They have tied up with Channel [V]'s Get Gorgeous contest. The reason being that a lot of their
young consumers are interested in careers. Modeling is a career that a lot of youngsters are
interested in and this was an excellent platform. They have also done promotion for History
Channel, where they have run promotion for Hollywood Heroes. They had asked a few question
and a lucky winner won a trip to Hollywood.


    •    Ticket sales


Café Coffee Day is involved in ticket sales in quite a few events, Enrique being one of them.
They were involved in WWE, Elton John, and Bryan Adams ticket sales. These acts are very
much appreciated by their consumers. It helps both the organizers as well as Café Coffee Day.
Organizers need to tell people where the tickets are available and single Café Coffee Day logo
says it all. From Café Coffee Day’s point of view, they always ask for a certain amount of tickets
around which they have a contest. Couples can win ticket for free. This in turn raises the
awareness level as cafe staff approaches the consumers to inform them about the contest. There


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is not a better publicity mechanism then the person who is serving you telling you about the
same.


    •   Association with movies


Café coffee day has been associated with a pool of movies to broadcast it self .Its main intention
is to increase the visibility rate within the crowd who are a part of the audiences. They have been
a part of movies like:


     Bas Yun Hi
     Khakee
     Main Hoon Na
     Kyun Ho Gaya Na
     Mujhse Shaadi Karoge
     Lucky
     Socha Na Tha
     And a lot of Telegu & Tamil movies


    •   Sales Promotion


 Café coffee day has been a very promising initiator than compared to its    competitors for sales
 promotion like:


     Giving away Gifts during occasions e.g. valentine day
     Offering Coupons
     Café Citizen card which allows regular members to avail discounts upto 20% and become
        a member after a purchase amount of upto 2000 Rs.
     Sugar free campaign which was mainly done to spread awareness of staying healthy and
        fit by using the sugar free sachets
     Discounts during festive times to members



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6.3 Place

Café Coffee Day looks to cater to their target market with strategically located outlets. Their
outlets are generally located in High Street/ Family Entertainment Centers. Considering their
generic appeal, there are Barista outlets located in and around Malls, Cinemas, Colleges, Offices,
etc. This endorses their brand image of a café that appeals to coffee lovers of all ages.




6.4 People

People at Café Coffee Day believe that “People are hired for what they know but fired for how
they behave”. Motivation and personal skill are laid emphasize upon.


6.5 Process

The order process at Café Coffee Day is based on services, where the customer can read the
menu and order. Whereas they have a flexible delivery process, where the customer can go
directly and take what they have ordered for or the order is delivered on his table.



6.6 Positioning

Research shows that 37% of the customers are between 20 and 24years. 27% of the customers
are between the age group of 25-29 years. 60% of the customers who visit the café are male and
40% are female. 52% of customers who visit the cafes are students.18% of the customers’ visit
the cafes daily while another 44% visit weekly. Each café, depending upon its size attracts
between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Café
Coffee Day as the place they frequent most after “home and workplace/college”. It is a place
where they meet friends and colleagues, in groups of 3 or more. The prices here are perceived to
be reasonable and it is a place where customers come to rejuvenate themselves and be
themselves rather than a place to be “seen at” vis a vis other cafes.

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6.7 DISTRIBUTION PROCESS




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7. INDUSTRY SECTION

FUTURE PLANS:-
    1. Serving to the Air Deccan Consumers in air.
    2. Planning to open cafes in Middle East, Eastern Europe, Egypt and South East Asia in
        coming month.
    3. In June, 2010 Cafe Coffee Day chain acquired Emporio for Rs 15 crore. Emporio is a
        Czech Republic-based café chain present at 11 locations. CCD plans to co-brand the
        chain as Café Coffee Day Emporio and later transition it to Café Coffee Day. CCD is also
        present in Vienna. The company wants to expand in the East European region, West Asia
        and the Asia-Pacific region.
    4. Cafe Coffee Day has around 821 outlets in 115 cities in India. CCD plans to take the total
        number of cafes to 1,000 by March 2010 and double it to 2,000 by 2014. In October
        2009, CCD announced that it will increase its international presence from the current six
        outlets in Vienna and Pakistan to a total of 50 stores across Europe and Middle East in
        two years time.


7.1 SWOT ANALYSIS

Strengths



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  •   Products of extremely good quality and taste.
  •   Its a youth oriented brand , hence huge potential since 40 % population is below 20
  •   It produces/grows the coffee it serves hence reducing the cost.
  •   USP of brand is its considered a highly affordable brand.
  •   India's largest retail chain of cafes.
  •   ISO 9002 certified company.




Weakness


  •   Weak brand image and lacks strength to maintain brand loyalty.
  •   Poor ambience and decor. Café Coffee Day outlet served prime space for advertising and
      promotions.
  •   Many of the Café Coffee Day stores are incurring loses due to wrong site selection.


Opportunities


  •   Coffee cafe industry is one of the fastest growing industries in Asia.
  •   More people like to visit Café Coffee Day for informal meetings.
  •   Café Coffee Day has gone international, and is planning to attract many new international
      markets, hence gaining international recognition


Threats


  •   Competition with other coffee cafes like Barista, Mochas.
  •   International Brands like Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.



Other hukka parlours are also gaining lot of attention and preferred by young generation to hang
around which in turn is attracting the market captivated by Café Coffee Day.


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7.2 PORTER’S FIVE FORCES MODEL

Threat of new entrants

Threat of new entrants is high. As more and more international brands are looking towards India
as the new target Market. E.g.:-

    •   Gloria Jeans
    •   Star Bucks
    •   Illy Café
    •   Coffee Bean

Bargaining power of customers

Bargaining power of customers is high as more and more Cafes are coming. So Café Coffee Day
needs to keep the prices as per customers. The price should satisfy the customer and attract them.
Below mentioned are three factors to be considered:-

    •   Price comparison
    •   Variety of products
    •   Service provided

Bargaining power of Suppliers




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Bargaining power of suppliers is very low as Café Coffee Day manufactures its own coffee bean.
More over the food items they buy from local suppliers are easily available and they can easily
change the suppliers as and when they want. Below are few factors mentioned regarding the
bargaining power of suppliers:-

    •   Food items obtained from local suppliers
    •   Follows backward integration
    •   Coffee beans from its base in Bangalore




Threat of substitutes

Threat from substitutes is very high. As there are Hukka Parlours, Other fruit juice joints are
becoming the new junction for youth. E.g.:-

                Ice tea offered by Costa coffee
                Coffee offered by other competitors
                Cold drinks served in stadium

Competition within industry

Competition within the industry is very high. As there are number of old players like Barista,
Café Mocha, and Minerva are well established players in the market. Barista is also targeting the
same market segment i.e.; youth.




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8. CONCLUSION AND RECOMMENDATIONS

From the project we can conclude the following:-

     That Café Coffee day is planning to go international.
     The other major things regarding service marketing is that customers 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.


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.




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9. BIBLIOGRAPHY

Sites Referred:-

    •   shttp://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




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Cafe Coffee Day

  • 1. AMITY GLOBAL BUSINESS SCHOOL, HYDERABAD Service Marketing Project Report On Café Coffee Day Submitted by :- Nandita Sadani Enrollment No. :- A30601909048 PREFACE
  • 2. A Project Report on Café Coffee Day Marketing strategies are methods followed by most successful and well known companies to improve their scope in any market. It is a means by which we determine whether one company is better than the other or not. Food chains are a growing industry in the modern world with an increase in the number of working hours of the average working person. Hence, even food chains need to improve their marketing strategies to appeal to the middle-class consumer. The main aim of this project is to make the reader understand the various strategies followed by food companies to improve their scope on the consumer and to add appeal to their brand as a whole by being creative and unique. Here I am going to talk about the Café Coffee Day as a service industry. The Strengths, Weakness, Opportunity and Threats of Café Coffee Day. The Environment, Competitors etc of Café Coffee Day. The service blue print of Café Coffee Day. The various techniques followed by Café Coffee Day have been listed in this project in an easy and understandable manner. The contents of this project focus on the marketing strategies and techniques used by Café Coffee Day to make it such a global brand with universal appeal. TABLE OF CONTENTS S. No. Contents Page No. 2|Page
  • 3. A Project Report on Café Coffee Day 1. Executive Summary 4-5 2. Industry analysis 6 -13 2.1 Current trends in the industry 14 2.2 Roles of technology 14 2.3 Major players 14 - 15 2.4 Competition 16 - 20 2.5 Tangibility spectrum 20 3. Typical Service Offering 21 3.1 Customer’s expectations 21 - 22 3.2 Bundle of benefits 23 - 25 3.3 Typical service performance of firms 26 3.4 Services quality dimensions 26 - 27 3.6 Customer‘s involvement in the service delivery 27 4. Service Blueprint 28 4.1 Service encounters / moments of truth 29 4.2 Value of blueprinting 29 - 31 4.3 Learning form this exercise 31 5 Physical Evidence 32 5.1 Roles of servicescape play in this industry 32 – 33 5.2 Aspects of servicescape influencing the service delivery 33 – 34 process 6. Wild Card 35 6.1 Pricing 35 - 37 6.2 Promotion 37 6.3 Place 38 6.4 People 38 6.5 Process 38 6.6 Positioning 39 6.7 Distribution Process 7. Industry Section 40 7.1 SWOT Analysis 40 – 41 7.2 Porters Five Forces Model 42 - 43 8. Conclusion and Recommendations 44 9. Bibliography 45 1. EXECUTIVE SUMMARY ANALYSIS OF THE COFFEE BAR INDUSTRY 3|Page
  • 4. A Project Report on Café Coffee Day Coffee has been around in India since the 17th century. However, coffee drinking has traditionally been largely restricted to domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee has been around in India since the 17th century. However, coffee drinking has traditionally been largely restricted to domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. THE 7 P’S OF MARKETING MIX Product , price , place , promotion , process , people , physical evidence constitute the 7 P’s . All the P’s are described in detail in the project. SERVICE BLUEPRINT Service blueprints need to describe time in a service. This includes the sequence of events of a service experience, its durations and timings. A blueprint should graphically describe this time element. A sequence of events - sometimes called use cases or flows - is relatively easy to blueprint as it can be represented in a linear flow identifying user actions, service responses and the touch points or interfaces that enable the service relationship. Sequences become challenged when there are multiple options or directions and when the planned process goes awry. SERVICES CAPE Servicescape may be likened to 'landscape'. It includes facilities exterior (landscape, exterior design, signage, parking, surrounding environment) and facilities interior (interior design & decor, equipment, signage, layout, air quality, temperature and ambiance). Servicescape along with other tangibles like business cards, stationery, billing statements, reports, employee dress, uniforms, brochures, web pages and virtual servicescape forms the 'Physical Evidence' in marketing of services. 4|Page
  • 5. A Project Report on Café Coffee Day Physical evidence consists of servicescape combined with the tangible elements, so servicescape is a part of physical evidence. SWOT Analysis It tells about the strengths, weakness, opportunities and threats of the industry. The strengths and weakness are internal and the opportunities and threats are external. ANALYSIS OF CAFÉ COFFEE DAY Café Coffee Day pioneered the café concept in India in 1996 with the inauguration of its first outlet in Bangalore. CCD saw the potential of the youth market and embarked on a dynamic journey to become the largest organized retail café chain with a distinct brand identity of its own. Through the assignment, we would Study the marketing Mix adopted by café mocha. Their target audience and market positioning 2. INDUSTRY ANALYSIS In hospitality industry there is much kind of outlets like hotels and resorts, restaurants, bar, coffee shop these are the place is serving food and beverage here I am going to give my research 5|Page
  • 6. A Project Report on Café Coffee Day about coffee shops which providing like hot and warm coffees and quick bites to the customers. I did my research work on Indian coffee shop company who having more than 900 café in 91 major cities in India and outside India. The world coffee production in the coffee year 2009-10 is estimated to be 123.6 million bags signifying a decline of over 4.5 million bags in the CY 2008-09 when production totaled at 128.2 million bags. This is revealed in a report of International Coffee Organization market report for January 2010 excluding additional information that has to come from Colombia and Vietnam. The ICO report also states of a significant fall in coffee production in Brazil - by about 14 percent besides production shortfall apprehended in countries like Cote d'Ivoire; Tanzania, Uganda, Papua New Guinea, Vietnam, Mexico, El Salvador, Equador and Peru. The Colombian production is unlikely to register worth mentioning increase. The over all world supply of coffee is likely to be tight in 2010 due to low level of opening stocks as well. Total world exports of coffee (2008 & 2009) 2008 2009 % Change Colombian Milds 12219 9278 -24.07 Other Milds 22524 20861 -7.38 Brazilian Naturals 28724 30033 4.56 Robustas 34199 34518 0.93 Total 97666 94690 -3.05 Source: International Coffee Organization, Coffee Market report, January , 2010 In the export front calendar 2009 closed with a decline of 3 percent at 94.7 million bags from 97.7 million bags in 2008. World consumption however is provisionally estimated at 130 million bags in 2008 from 128 million bags in 2007. Domestic consumption in exporting countries was up at 36.7 million bags compared with 35.4 million bags in calendar 2007. The Brazilian Coffee Industry Association expects 4.15 percent increase in world consumption of coffee. Indian Coffee Board puts country's coffee production at 2.90 tonne (Post monsoon estimation) and 3.06 tonne (Post Blossom Estimation) respectively. For the present crop year beginning October, the board has estimated an output of Arabica at 101,525 tonnes and Robusta 204,755 6|Page
  • 7. A Project Report on Café Coffee Day tonnes. Karnataka leads the country with 2.05 tonne (Post monsoon estimation) and 2.21 tonne (Post Blossom Estimation) production followed by Kerala and Tamil Nadu. According to ICO estimate, India produced over 3.1 million bags of 60 kgs each in 2009 compared with 3.3 million bags in 2007.Country's coffee exports during fiscal 2008-09 stood at 1.96 lakh tonne signifying marked decline from 2.18 lakh tonne in 2007-08. India's Coffee Production (In tonne) State 2006-07 2007-08 2008-09 2009-10 Karnataka 206025 191575 183860 205700 Kerala 59475 49000 57200 59250 Tamilnadu 18225 18100 16255 19350 Non-traditional areas 4085 3175 4870 5185 (Andhra Pradesh & Orissa) North Eastern region 190 150 115 115 Total 288000 262000 262300 289600* Post Monsoon estimates * Source: Federal Ministry of Commerce, Government of India India accounts for about 4.5 percent of world coffee production and the industry provides employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70 percent of country's total coffee production followed by Kerala (22 percent) and Tamil Nadu (7 percent). Europe accounts for about 70 percent of India's total coffee exports. Of this again, 70 percent is shipped via Suez Canal. Major Indian coffee importing countries include Italy, Germany, Russian federation, Spain, Belgium, Slovenia, US, Japan, Greece, Netherlands and France. India's Exports of Coffee Year Quantity (In tonne) Value ( In Rs crore) 2006-07 249029 2007.90 2007-08 218998 2046.29 2008-09 197171 2242.64 2009-10 (Upto March 8, 2010 181225 1944.98 Source: Federal Ministry of Commerce, Government of India 7|Page
  • 8. A Project Report on Café Coffee Day With a view to expand coffee cultivation, Coffee Board has been implementing developmental programmes for coffee development in North Eastern Region and Non Traditional areas. During 11th Five Year Plan, Coffee Board has proposed to support coffee expansion programme taken up by the Integrated Tribal Development Agency on 24000 ha. area in Andhra Pradesh and on 850 ha. area in North Eastern Region, which will facilitate export of coffee. As a part of export promotion, the Coffees from different regions with their logos are promoted including the coffee from the areas under Integrated Tribal Development Agency, as ‘Araku’ Coffee. Constant endeavour is being made by the Government to help the coffee growers to ease their bank debts. CAFÉ COFFEE DAY India’s favourite coffee shop, where the young at heart unwind. Café Coffee Day is a part of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), the first to roll out the ‘coffee bar’ concept in India with its first café in Bangalore. It’s a Rs. 750 crore, ISO 9002 certified company. With Asia’s second- largest network of coffee estates (10,500 acres) and 11,000 small growers, making its holder the largest individual coffee plantation owner in Asia, this in addition to being India's only vertically integrated coffee company. Coffee Day has a rich and abundant source of coffee. This coffee goes all over the world to clients across the USA, Europe and Japan, making us one of the top coffee exporters in the country. We all know that Café Coffee Day is one of the most popular hangout places. The coffee joint is very famous among youngsters. Coffee is one of the favorite beverages and has become more appealing because of its variety. 8|Page
  • 9. A Project Report on Café Coffee Day Coffee has been around in India since the 17th century. However, coffee drinking has traditionally been largely restricted to domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee has been around in India since the 17th century. However, coffee drinking has traditionally been largely restricted to domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. India ranks sixth as a producer of coffee in the world accounting for 4.5% of the global coffee production. India has about 170,000 coffee farms cultivating around 900,000 acres of coffee trees. India is the largest producer and consumer of milk in the world with 98% of milk being produced in rural India. Coffee consumption in India is growing at 6% per annum compared to the global 2% plus. Café Coffee Day’s menu ranges from signature hot and cold coffees to several exotic international coffees, tea, food, desserts and pastries. In addition, exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available at the cafés. It was in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading Company Limited, popularly known as Coffee Day was formed. With a rich coffee growing tradition since 1875 behind it coupled with the opportunity that arose with the deregulation of the coffee board in the early nineties, Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan. Coffee Day's two curing works at Chikmagalur and Hassan cure over 70,000 tonnes of coffee per annum, the largest in the country. Coffee Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The process is carried out under the control of experienced personnel to meet highest quality standards. The most modern technology available is used to maintain consistency and roast the coffee beans to the demanding specifications of the discerning coffee consumers. 9|Page
  • 10. A Project Report on Café Coffee Day Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Today, more than a decade later, Café Coffee Day is the largest organized retail café chain in India with cafes functioning in every nook and corner of the country. Drawing inspiration from this overwhelming success, Café Coffee Day today has cafes in Vienna, Austria and Karachi. What’s more, new cafes are planned across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future. In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the concept of ‘Power of Dialogue’. In accordance with this new brand identity, CCD planned to give all its existing outlets a new look by the end of 2009. Cafés would be redesigned to suit different environments such as book, music garden and cyber cafes suitable for corporate offices, university campus or neighborhood. The change plan included new smart menu, furniture design, among others. VISION: To be the only office for dialogue over a cup of coffee MISSION: “To be the best Cafe chain by offering a world class coffee experience at affordable prices.” The offerings are designed in such a manner that one cannot be spelt without the other; there are the hot coffee or cold coffee combinations with delectable desserts and special coffee and eats combinations for even a group of four friends. Coffee Day Comprises of the following Sub Brands 1. Coffee Day - Fresh & Ground 2. Café Coffee Day 10 | P a g e
  • 11. A Project Report on Café Coffee Day 3. Coffee Day – Vending 4. Coffee Day - Xpress 5. Coffee Day – Exports 6. Coffee Day - Perfect Pioneers of the Café Concept in India with its first Café at Brigade Road, Bangalore in 1996. This Café was opened as a Cyber Café (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency i.e.; Coffee. Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket .Each café, depending upon its size attracts between 400 and 800 customers daily. It is a place where customers come to rejuvenate themselves and be themselves. Key Features • Pioneers of the Café Concept in India with the its first Café at Brigade Road, Bangalore in 1996. This Café was opened as a Cyber Café (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency Coffee. • Essentially a youth oriented brand with majority of its customers falling in the 15- 29 year age bracket • Each café, depending upon its size attracts between 400 and 800 customers daily. • It is a place where customers come to rejuvenate themselves and be themselves. USP of the Brand: 1. Affordable Price 2. Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the India Barista Championship 2002 11 | P a g e
  • 12. A Project Report on Café Coffee Day 2.1 CURRENT TREND IN INDUSTRY Growth of Café Industry in India Hot beverages have always been a part of the tradition of India, especially South India. Coffee took the first seat in South India when the traditional Brahmin classes brought down. In order to spread the drink, coffee houses emerged at various places in the country, which also served as the opposite places for lawyers and the educated class to hold discussions ranging from politics to cinema. It is also believed that many scripts and ideas for films evolved here. The drink also became famous and as a result even five star hotels began cashing in on it. Several hotels all over the country started opening coffee- shops that catered to high- end customers. This showed the popularization of coffee cafés, to all sections of society. The drink has now become more of a concept than merely a drink itself. The last decade witnesses the growth of numerous coffee pubs in the country. A number of coffee café owners tried to westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista, and Café Coffee Day have opened up around the country. The concept of a café today is not merely about selling coffee, but about developing a national brand. Retail cafés now form a multi-crore industry in the country, and have huge potential for growth locally, and internationally. The more than US $150 million organized coffee retail business in India is coming into its own, fed by rising incomes and a fast-food sector that is growing at 40 per cent annually. Coffee consumption has increased from 55,000 tons to 80,000 tons after decades of stagnation. Industry sources say the niche coffee retail format is growing at 10-12 per cent a year, with branded coffee accounting for 53 per cent of sales, unbranded 40 per cent and cafes 7 per cent. MARKET SIZE IN US 12 | P a g e
  • 13. A Project Report on Café Coffee Day Snapshot: Coffee Shop Retail Sales Estimates Year End 2009 Coffee Cafes: (beverage retailers with seating) 1,250 locations averaging $550,000 in annual sales = $ 6.12 billion or adults who have visited a coffeehouse in the past week:  Average weekly spending $5 or under: 41%  Rarely or never purchase food: 49%  Consume the beverage off-premises: 52% Demographics Seventy-seven percent of U.S. adults drink coffee daily, and gourmet coffee consumption has risen in the past five years. According to Scarborough Research, a market research firm that studies media, lifestyle, and shopping patterns in the United States, in October 2008, 12 percent of adults have been to a coffee shop in the past month. Although popularity of coffee shops has recently spread across the nation, the West coast has the most coffee shop patrons. The ideal ratio of coffee shops to residents in a particular area is 1:10,000 2.2 ROLE OF TECHNOLOGY Technology plays a major role in Café Coffee Day because all the work like billing, stock maintenance, inventory control, etc is done with the help of computers. For making the coffee and tea they require machines, which give an edge to the service provider over local players like the small tea stall or coffee stall. 2.3 MAJOR PLAYERS IN THE INDUSTRY Following are the major players in coffee shop industry: 13 | P a g e
  • 14. A Project Report on Café Coffee Day A. Barista Lavazza • One of India's largest franchised chains of coffee bars, the Barista Lavazza coffee company operates around 205 outlets across India – 15 crème lounges and the rest espresso coffee bars. • It plans to open 300 new stores over the next three years and has begun aggressively marketing its products outside Indian borders into neighboring countries. Considered the Starbucks of the East, Barista offers many of the same menu items like espresso, lattes, cappuccino and various pastries, in addition to basic coffee. Despite being Indian, Barista sticks closely to its Italian roots by serving Italian coffees exclusively. B. Costa Coffee • British coffee retail chain Costa Coffee launched its outlet in New Delhi, becoming the first international coffee chain to start operations in India in September 2005. • The chain is currently operational with 36 outlets and expanding aggressively to tap this potential market. C. Café Mocha • It was started by a Mumbai based entrepreneur Riyaz Amlani, who has a long experience in the hotels and restaurants business. This store is strikingly different from others, they love being over-the-top and thus it’s a place that either you love it too much or find it ’Over the top’. Studying the marketing Mix adopted by café mocha. Owned by Impresario Entertainment & Hospitality Pvt. Ltd. • Mocha opened its doors at Churchgate (Mumbai) in December 2001 14 | P a g e
  • 15. A Project Report on Café Coffee Day • 15 operational outlets across the country and its own central kitchen • Future plans for Singapore, Dubai and New York and Chicago. Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with their multi- products offering outlets like Reliance Timeout and Desi Café respectively. 2.4 COMPETITION Barista is the major competitor Barista coffee was establishes in 1999 with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment. 15 | P a g e
  • 16. A Project Report on Café Coffee Day More significantly, they believe they have been quick to spot a latent need waiting to be trapped: Coffee lovers seek a complete experience. One that combines intelligent positioning with the right product Mix and carefully designed cafés. In other words, customers seek an “experiential lifestyle brand”. As of today, Barista exists in over 22 cities, and operates over 140 outlets nationally. In the last 2 years, Barista has opened over 100 outlets in the country and with a new outlet opening nationally every 14 dates; Barista is currently experiencing phenomenal growth. With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth opportunities in Asia, making it highly competitive international brand. Marketing Mix Price Mix Barista has a ‘Skim Pricing Policy’. They began with a higher price, and skimmed the cream for the market. With the sudden spurt of growth in number of outlets, came the benefits of economies of scale. Because of this, they have been able to gradually lower their prices, and appeal to different segments of their target market. Currently, their prices are the lowest they have ever been, and they can competitively match their prices against Café Coffee Day’s prices. The prices are constantly changing though, and the last 1-year has seen 3 changes (mostly reductions) in prices. This gradual price reduction meant that Barista could maintain its profit- maximization policy until it could earn large cost savings because of the benefits of high volume. The main factors that affect their pricing are their cost of goods sold. The costs are quite high because imports a majority of its products and product. Considering that Barista is trying to target a market whose age range is between 18 and 60 years, a pricing policy appealing to this segment is difficult. Extremely low prices act as a deterrent to some customers who might regard it as an indicator or quality, while very high prices cannot be afforded by most of the youth. But since Barista’s current consumer profile is quite young, their prices are mostly inexpensive, and at par with their competitors. Process Mix The order and delivery process at Barista is based on self- service, where a customer goes up to the counter to place his order, and goes back to the counter to pick his delivery once it is prepared. Product Mix Coffees & Teas Refreshing Eatables Alternatives Coffee with Milk Smoothies Sandwiches Cappuccino Guava Paneer Tikka Caffe Mocha Mango Cheese & Tomato Caffe Latte Grape Chicken Tikka Smoked Chicken 16 | P a g e
  • 17. A Project Report on Café Coffee Day Black Coffee Granitas Rolls Espresso Italiano Blue Curacao Kadhai Paneer Roll EsperanoTM Lime Ice Chicken Masala Roll Americano Mixed Fruit Tango Guava Crush Dessert Coffees Milk Based Pastas Latte Bianco Strawberry Freeze Tangy Tomato Pasta Caffe Borgia Mocha Freeze Creamy Chicken Pastas Icepresso Cold Coffees Iced Tea HOT TEA Brrrista Lemon Assam Brrrista Frappe Peach English Breakfast Brrrista Blast Darjeeling Iced Caffe Mocha Earl Grey Coffee Add-ons Other Drinks Desserts Various Flavours Ginger Fizz Walnut Brownie Chocolate Fudge Kinley Water Mocha Excess Whipped Cream Chocolate Excess Espresso Shot Dark Temptation Ice Cream Scoop Chocolate Mousse Chocolate Chip Muffin Almond Raisin Muffin Apple Cake People Mix The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid- back feeling of the café. Promotion Mix According to research, over 65% of Barista’s customers are in the 15- 30 age- group. The majority of these are students and young urban professionals. Barista positions itself as a brand for anyone who loves coffee. Their products, services and outlets are more like the traditional European cafés, where people would meet for the love of coffee, and for an intellectual appealing time. They position their outlets as a place “where the world meets”, and they look to appeal to anyone in the 14- 60 age group that loves good coffee and looks for a nice quiet time. 17 | P a g e
  • 18. A Project Report on Café Coffee Day a) Logo, Colors, Images: Barista, since the beginning has looked to use colors in its café interiors, logos and images; to project a “warm, earth glow, synonymous with coffee”. Barista uses shades of Orange & Brown to good effect to promote its “laid- back” atmosphere. The logo is a combination of Brown, Orange and Light Yellow; with the word “Barista” written in an upward curve, and the word “Coffee” underneath. A simple logo that perfectly expresses Barista’s brand image: A traditional café for coffee lovers. b) Décor and Architecture: Barista’s internal décor and architecture expresses the simplicity you would normally associate with traditional cafés. The furniture is made of light shades of wood, and there are comfortable sofas in bigger cafés. The walls are shades of orange, with various photographs of the love for coffee spread around each outlet. c) Literature: The literature provided by Barista is indicative of its brand image. The menus, posters, pamphlets are all traditionally designed, with a classic and simple look. One aspect of particular note is their magazine, which is privately circulated in the cafés. The magazine encourages customers write, draw, make etc anything creative; and this is then published in the magazine. The magazine not only provides an avenue for advertising, but also an opportunity for Barista to express its brand image Barista currently carries out mass promotion campaigns. This is mainly in the form of promotions in the Press, TV and Radio Medias. At present, they do not rely heavily on advertising, but rely more on sponsorships and strategic alliances with other corporations. Barista also takes part in various sales promotion activities to help increase sales at their outlets. d) Sponsorships: Barista sponsors various events and festivals, which provides them valuable promotion directed at strategic markets. The sponsorships are mainly in kind, although major events are sponsored in cash also. e) Sales Promotion: Barista uses a special “Barista Coffee Card” for its sales promotion activities. The Barista Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven. It is available to all Barista coffee regulars. No membership fees, no references required. Fill out the card and you are a member. As a Coffee Card holder, you earn one stamp on the card every time you purchase a beverage. Simply present the card to the cashier when you place your order at any of their outlets. Once you have collected seven stamps, you can hand over the card to receive your complimentary hot beverage. Barista hopes this card can help drive sales growth, and increase customer retention f) Collaborations: 18 | P a g e
  • 19. A Project Report on Café Coffee Day Barista has entered into special collaborations and alliances with various partners for co - marketing brands. For example, Barista entered into a deal with Leo Mattel toys to provide the popular board game Scrabble at every Barista outlet across the country .This is an ideal alliance for both the organizations, because it provides Leo Mattel with an important avenue for promoting their product, and it provides Barista’s customers an added attraction for spending more time at Barista outlets .Barista has also entered into partnerships with various movies, for promotions through Barista, and recently, they tied up with Star World for its “Absolutely Everybody” campaign. Place This is a prime factor in determining the success of a retail chain. However, Barista Coffee has adopted a top down approach, wherein they first identify the cities and then decide on precise locations within its limits .While selecting a city Barista has devoted substantial management time and effort in zeroing in on the cities where they are now situated. The selection of the cities was based on the following criteria. • Sizeable population of executives, students and families in SEC A & Barista category. • High disposable income with people looking for new vistas in leisure and lifestyle oriented concepts. • High level or organized retail activity. • Rapid socio- economic development. • Level of commercial importance (Industrial cities, state capitals etc.) • Number of educational establishments and opportunities available for employment. On the basis of the above criteria, they had initially targeted cities like Delhi, Mumbai, Bangalore, Chennai and Hyderabad. Chandigarh and Ludhiana were later added due to tie- ups with ‘Planet M’ and ‘Ebony’ to set up store-in- stores at their outlets. They are also pursuing an equally aggressive international business expansion strategy. They have over 50 overseas locations presently under their consideration .They have already done their groundwork in terms of getting brand and name registrations in over 30 of these locations. To facilitate their global expansion, they plan to work with strategic partners, who share the same vision of expanding and promoting the brand worldwide. Currently they have opened new outlets in Sri Lanka and Dubai as a part of their international strategy. 2.5TANGIBILITY SPECTRUM 19 | P a g e
  • 20. A Project Report on Café Coffee Day 3. TYPICAL SERVICE OFFERING 3.1 CUSTOMER’S EXPECTATIONS When a customer visits a coffee shop they expect a good experience. They want the service provider to provide them with the best services they have. From the chart given below we can 20 | P a g e
  • 21. A Project Report on Café Coffee Day easily make out that the customers gives high preference to the quality of services and they give least preference to the pricing. The major reason behind customer giving least preference to the price is because they want a good experience which is beyond price.  From the above chart one can easily make out that 42% people consider the quality of services offered by the coffe shop before going to it.  The next important factor considered by customer before choosing a coffee shop is the ambience. They want the coffee shop to be a cool hangout place where they can hangout with friends and do some combined studies RATING TO CAFÉ COFFEE DAY BY THE CUSTOMER ARE SHOWN IN THE CHART BELOW 21 | P a g e
  • 22. A Project Report on Café Coffee Day From the chart above one can easily make out the following things regarding to Café Coffee Day:- 1. Customers grade Café Coffee Day very good when it comes to ambience. 2. Customers grade Café Coffee Day good when it comes to pricing. 3. Customers grade Café Coffee Day very good when it comes to service offered. 4. Customers grade Café Coffee Day very good when it comes to quality of product. 5. Customers grade Café Coffee Day very good when it comes to Location. Which simply proves that Café Coffee Day is one of the best hangout place for the youth who consider the factors mentioned above while selecting a Coffee Shop. 3.2 BUNDLE OF BENEFITS Following are the benefits that a customer can get from Café Coffee Day: 22 | P a g e
  • 23. A Project Report on Café Coffee Day 1. Benefits through pricing of products Considering that Cafe Coffee Day is trying to target a market whose age range is between 15 and 60 years, a pricing policy appealing to this segment is difficult. The pricing is extremely low and act as a deterrent to some customers who might regard it as an indicator or quality, while very high prices cannot be afforded by most of the youth. But since Cafe Coffee Day’s current consumer profile is quite young, their prices are mostly inexpensive, and at par with their competitors. 2. Benefits through different product line They are Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Coffee Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The process is carried out under the control of experienced personnel to meet highest quality standards. The most modern technology available is used to maintain consistency and roast the coffee beans to the demanding specifications of the discerning coffee consumers. The coffee beans are supplied to all the cafés from Chikmagalur. The eatables at Café Coffee Day are catered by different vendors: example: ice creams are catered by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery. Café Coffee Day also sells merchandise through its stores. 5 per cent of the revenue comes from sale of merchandise. Café Coffee Day product Mix constitutes a wide range of products that appeal primarily to Indian coffee and snack lovers. Products have a decided Indian taste to it - be it food or coffee. Most of the eatables have been adopted to meet the Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc. Thus they have been trying to capture the Indian taste along with classic coffee. The best selling item in summer is frappe, which is coffee and ice cream blended together. The young people favor it. In winter it is cappuccino. Their merchandising includes funky stuff like t-shirts, caps etc. Coffee and Tea Refreshing Alternatives Eatables Hot Coffee Granitas Melting Moments Espresso Blood Orange Banana n’ Walnut Cake Espresso Americano Cool Blue Banana Chocolate Mousse 23 | P a g e
  • 24. A Project Report on Café Coffee Day Macchiato Pineapple Crush Banana Caramel pie Cappuchino Emerald Ice Chocolate Doughnut Café Latte Ruby Surprise Cookies Chococinno Marble Cake Café Mocha Pineapple Getaux Irish Coffee Chocolate Cake International Coffee Smoothies Ice Creams Colombian Juan Valdez Mango Colada Vanilla Ethiopian Qahwah Strawberry Colada Chocolate Kenyan Safari Seasons Best Cold Coffee Cremosas Quick Bites Sweet Mint Litchi Samosa Cold Sparkle Ginger Spice Puff Brandied Banana Pina Colada Pizza Tropical Iceberg Croissant Iced Eskimo French Fries Kathi Roll Wraps Biryani Sandwiches Kulcha Burger Pasta Masala Sandwich Coffee Add-Ons Cool Refreshers Honey Fruit Juices Flavoured Syrups Mineral Water Red Eye Whipped Cream Scoop pf Ice cream Chocolate Sauce Teas Assam Tea 24 | P a g e
  • 25. A Project Report on Café Coffee Day Masala Chai Lemon ‘n Ice Tea Kashmiri Qahwah Apple n Cranberry ice tea 3. Benefits through Location Cafe Coffee Day looks to cater to their target market with strategically located outlets. Their outlets are generally located at High Street/ Family Entertainment Centers. Considering their generic appeal, there are Cafe Coffee Day outlets in and around Malls, Cinemas, Colleges, and Offices etc. This endorses their brand image of a café that appeals to coffee lovers of all ages. 4. Benefits through People The people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite and Positive. 3.3 TYPICAL SERVICE PERFORMANCE OF FIRMS 25 | P a g e
  • 26. A Project Report on Café Coffee Day From the above chart one can easily make out that the major competitor to Café Coffee Day is Barista. Café Coffee Day is facing huge competition from Barista as both of the service providers are targeting the youth segement. 3.4 SERVICES QUALITY DIMENSIONS  Reliability It is the ability to perform the promised service dependably and accurately. Each and every coffee shop (local one or International brand) promises best taste in terms of Coffee. These promises should me met accordingly in each and every aspect like quality & quantity.  Assurance Assurance positioning would have to be backed up by evidence of the knowledge and thoughtfulness of administrators, faculty and staff and their ability to inspire trust and confidence. It includes the knowledge and courtesy of employees and their ability to convey trust and confidence. The employees at Café Coffee Day are well trained to tackle problems without causing harm to customers. 26 | P a g e
  • 27. A Project Report on Café Coffee Day  Tangibility It talks about the furniture, menus, the interiors etc i.e. Physical facilities, equipment & appearance of personnel.  Empathy Caring, individualized attention the firm provides to their customers. The mission of Café Coffee Day is “To be the best Cafe chain by offering a world class coffee experience at affordable prices”. This statement proves that they want to serve the target market i.e. the youth with full services that they want at an affordable price.  Responsiveness Willingness to help customers and provide prompt service. Employees in Café Coffee Day are not quick to respond to the queries of their customer since the working staff is less in number. But still they somehow manage to respond to customers as per their demand. 3.5 CUSTOMER‘S INVOLVEMENT IN THE SERVICE DELIVERY In Café Coffee Day service Customer involvement in the service delivery does not exist as everything is done by the staff. From taking the order till delivery of the order, whole process is taken care by the staff. 4. SERVICE BLUEPRINT 27 | P a g e
  • 28. A Project Report on Café Coffee Day 4.1 SERVICE ENCOUNTERS / MOMENTS OF TRUTH 28 | P a g e
  • 29. A Project Report on Café Coffee Day  When the customer first enters the restaurant he can find AD posters on the front glass of the Cafe Coffee Day.  After entering into Cafe Coffee Day, customer is guided by an employee, where he is provided with a menu card for the order. Here customer can feel the ambience and the décor of the restaurant. After giving an order to the employee, employee passes the order to the front section of the kitchen. The employees in the front section would pass the order to back-end kitchen where the order is prepaid. Parallely, employee would update the billing machine. The prepaid order is then served to the customer.  After availing the services and the products of Cafe Coffee Day, customer would ask for Bill. Employee would then give the updated bill to the customer.  Customer will pay the bill either through cash or through credit/debit card. After payment is done the database of Cafe Coffee Day gets updated.  After payment of the bill the customer leaves the restaurant. 4.2 VALUE OF BLUEPRINTING Following are the uses or advantages of having a blueprint for a service:  Providing a Platform for Innovation First and foremost, service blueprinting provides a common platform for everyone – customers, employees, and managers – to participate in the service innovation process. Blueprinting provides a common point of discussion for new service development or service improvement (a picture is worth a thousand words). The service blueprint gives employees an overview of the entire service process so they can gain insight as to how their roles fit into the integrated whole. This reinforces the notion that the total service is greater than the sum of its parts. This benefit of a clearer organizational vision is realized by virtually every firm that utilizes blueprinting. 29 | P a g e
  • 30. A Project Report on Café Coffee Day  Recognizing Roles and Interdependencies The process of blueprinting and the document itself generate insights into various role and relational interdependencies throughout the entire organization. The customer’s actions and interactions are highlighted, revealing points at which he or she experiences quality. The blueprint reveals all of the touch-points that are critical in meeting customer needs and helps in identifying likely points of service failure. Utilizing the visual language of service blueprints puts everyone involved in the service design process on the same page, creating more communication efficiency and informational precision during the typically “fuzzy front end” of the service development process.  Facilitating Both Strategic and Tactical Innovations Service blueprints can be modified to suit any level of analysis desired. The methodology has been used to improve macro- and micro-level processes, facilitate strategic and tactical decision- making, as well as design complex and simple services with high and low levels of divergence. Managers at all levels respond favorably to service blueprinting when they are introduced to it in workshops and seminars.  Transferring and Storing Innovation Knowledge Service blueprints can be printed out or be stored electronically and made available to everyone involved. Blueprints being developed can be posted on a collaborative website, providing all participating parties with access to an editable form of the document. Suggestions and edits can be posted, which can then be further discussed, blogged about, incorporated or nixed. In fact, a great deal of the entire blueprinting process can be done remotely, or virtually.  Designing the Moments of Truth 30 | P a g e
  • 31. A Project Report on Café Coffee Day Blueprinting promotes a conscious decision on what consumers see and which employees should be in contact at each moment of truth. In many services it is relatively easy to decide which elements of the service should be provided in view of the customer and which elements should be performed behind the scenes, or backstage. For instance, at a hotel, housekeeping may provide turn down service in the presence of a customer, but the laundry is clearly a housekeeping activity best performed backstage.  Clarifying Competitive Positioning Service blueprinting allows firms to clarify competitive positioning by facilitating the comparison of the desired service and actual service, or company and competitor processes. Mapping dual processes for the identification of key service quality gaps is a highly useful application of blueprinting. This is not surprising, given firms’ continuous efforts to position their service offerings correctly in the highly competitive global marketplace.  Understanding the Ideal Service Experience We also perceive service blueprinting as being applicable within the realm of market research in understanding and designing ideal service experiences. For instance, brands undergoing repositioning often seek information regarding customer perceptions of what an “ideal” brand within a given product or service category would look like. Customers are asked to identify where such a brand would be positioned along key attributes or dimensions. For services, it is often useful to have customers identify the ideal service process for a given service category. Service blueprinting can help market researchers overcome the limitations inherent in asking customers to describe such a service by using words alone. The service blueprint can provide a means for service brand managers and service designers to view and compare the customer’s ideal service, the firm’s actual existing service, and any number of competitors’ service offerings. 4.3 LEARNING FORM THIS EXERCISE 31 | P a g e
  • 32. A Project Report on Café Coffee Day This exercise has helped me to understand the whole process about how the work is carried in a coffee service provider. I was able to understand the importance of service blueprint. Because of this exercise I was able to understand the concept of service blueprint in detail. 5. PHYSICAL EVIDENCE 1. Décor & Architecture Café Coffee Day had gone in for image change and revamping of interiors in the last quarter of 2001. Café interiors have been given a whole, new look. In a change from the largely wood and granite based interiors, there is more of steel and lots more colour now. The young colours of today, lime green, yellow, orange, and purple predominate. These colours are unified and used in all the outlets and stores of Café Coffee Day. 2. Literature The literature provided by Café Coffee Day is indicative of its youthful image. The menus, posters, pamphlets are all designed to attract young and young at heart. They also have their magazine called as ‘Café Beat’, which is published monthly at their Bangalore head office and distributed throughout the branches. 3. Dress Code The dress code is black dress with the logo of Café Coffee Day on one side. This is also is one of the evidences. 5.1 ROLES OF SERVICESCAPE PLAY IN THIS INDUSTRY “The environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of the service”- Servicescape By Booms and Bitner 32 | P a g e
  • 33. A Project Report on Café Coffee Day A servicescape is not a passive setting & it plays an important role in service transactions. An evaluation of the roles they have in service encounters will reveal how important it is to design an appropriate servicescape. Below diagram shows the importance of Servicescape / Physical Evidence in terms of coffee retailing industry: From the chart given above one can easily make out the the following anayses:- When it comes to giving highest priority, majority of the people would look for Quality, ambience and physical evidence. Where as the other factors do not affect much. Therefore it clearly proves that better services backed up by good servicescape is one of the most important aspect in terms of attracting customers, when it comes to Coffee Retail Industry or any fast food retailing business. 5.2 ASPECTS OF SERVICESCAPE INFLUENCING THE SERVICE DELIVERY PROCESS From customer Point of view:- 33 | P a g e
  • 34. A Project Report on Café Coffee Day A. Exterior and Interior Design B. Ambience C. Food(quality, quantity & variety ) From the service providers point of view:- 1. Logo, Colors, Images Café Coffee Day has used bright red and green colors in its logo. RED stands for leadership and vitality. It also stands for passion (… for coffee). The WHITE SWIRL signifies purity of purpose, invigorating properties of growing coffee. The GREEN stroke harks back to their coffee growing heritage and the coffee plantations that they own. It signifies 125 years of coffee growing heritage of this vertically integrated group. Café is noticeably larger than the rest of the text inside the logo box. This denotes that Café Coffee Day pioneered the café concept in India way back in 1996. Café Coffee Day would like to own the word “café” in the minds of its customers. When one thinks of a café it’s got to be Café Coffee Day. The font used for “Café” is called SLURRY. The font looks as though the letters have congealed out of a liquid. It gives the impression that the word is still forming itself and evolving into something new and something better constantly. This is the characteristic of Café Coffee Day’s customers and this is the characteristic that the brand too wants to adopt. The upward SWIRL inside the logo box stands for the invigorating and uplifting nature of coffee and the ambience at Café Coffee Day. 2. Décor & Architecture Café Coffee Day had gone in for image change and revamping of interiors in the last quarter of 2001. Café interiors have been given a whole, new look. In a change from the largely wood and granite based interiors, there is more of steel and lots more colour now. The young colours of 34 | P a g e
  • 35. A Project Report on Café Coffee Day today, lime green, yellow, orange, and purple predominate. These colours are unified and used in all the outlets and stores of Café Coffee Day. 6. Wild Card 6.1 Pricing Considering that Café Coffee Day knows its major customer lies in the bracket of 15- 29, it has tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from Rs.20 to Rs.200. From the time it first started its operations, there has been only minor changes in the pricing policy of Café Coffee Day. The changes have been more due to the government taxes than any thing else. 35 | P a g e
  • 36. A Project Report on Café Coffee Day From the pie diagram above one can easily make out the consumer is ready to spend Rs . 100 – 200. So from this one can make out that Café Coffee Day need to keep the prices low inorder to cater the current segement. 6.2 Promotion Café Coffee Day does not believe in mass media promotions. But they are involved in all the areas of serious consumer passion. • Through television Café Coffee Day held a contest around a very popular programme on Zee English called Friends. All the six lead characters are shown often visiting a coffee shop and a lot of youth like watching the programme. That is why they had a contest running where customers could win Friends' merchandise. The linkage was that it is a youth based programme and it had a coffee house. They have tied up with Channel [V]'s Get Gorgeous contest. The reason being that a lot of their young consumers are interested in careers. Modeling is a career that a lot of youngsters are interested in and this was an excellent platform. They have also done promotion for History Channel, where they have run promotion for Hollywood Heroes. They had asked a few question and a lucky winner won a trip to Hollywood. • Ticket sales Café Coffee Day is involved in ticket sales in quite a few events, Enrique being one of them. They were involved in WWE, Elton John, and Bryan Adams ticket sales. These acts are very much appreciated by their consumers. It helps both the organizers as well as Café Coffee Day. Organizers need to tell people where the tickets are available and single Café Coffee Day logo says it all. From Café Coffee Day’s point of view, they always ask for a certain amount of tickets around which they have a contest. Couples can win ticket for free. This in turn raises the awareness level as cafe staff approaches the consumers to inform them about the contest. There 36 | P a g e
  • 37. A Project Report on Café Coffee Day is not a better publicity mechanism then the person who is serving you telling you about the same. • Association with movies Café coffee day has been associated with a pool of movies to broadcast it self .Its main intention is to increase the visibility rate within the crowd who are a part of the audiences. They have been a part of movies like:  Bas Yun Hi  Khakee  Main Hoon Na  Kyun Ho Gaya Na  Mujhse Shaadi Karoge  Lucky  Socha Na Tha  And a lot of Telegu & Tamil movies • Sales Promotion Café coffee day has been a very promising initiator than compared to its competitors for sales promotion like:  Giving away Gifts during occasions e.g. valentine day  Offering Coupons  Café Citizen card which allows regular members to avail discounts upto 20% and become a member after a purchase amount of upto 2000 Rs.  Sugar free campaign which was mainly done to spread awareness of staying healthy and fit by using the sugar free sachets  Discounts during festive times to members 37 | P a g e
  • 38. A Project Report on Café Coffee Day 6.3 Place Café Coffee Day looks to cater to their target market with strategically located outlets. Their outlets are generally located in High Street/ Family Entertainment Centers. Considering their generic appeal, there are Barista outlets located in and around Malls, Cinemas, Colleges, Offices, etc. This endorses their brand image of a café that appeals to coffee lovers of all ages. 6.4 People People at Café Coffee Day believe that “People are hired for what they know but fired for how they behave”. Motivation and personal skill are laid emphasize upon. 6.5 Process The order process at Café Coffee Day is based on services, where the customer can read the menu and order. Whereas they have a flexible delivery process, where the customer can go directly and take what they have ordered for or the order is delivered on his table. 6.6 Positioning Research shows that 37% of the customers are between 20 and 24years. 27% of the customers are between the age group of 25-29 years. 60% of the customers who visit the café are male and 40% are female. 52% of customers who visit the cafes are students.18% of the customers’ visit the cafes daily while another 44% visit weekly. Each café, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Café Coffee Day as the place they frequent most after “home and workplace/college”. It is a place where they meet friends and colleagues, in groups of 3 or more. The prices here are perceived to be reasonable and it is a place where customers come to rejuvenate themselves and be themselves rather than a place to be “seen at” vis a vis other cafes. 38 | P a g e
  • 39. A Project Report on Café Coffee Day 6.7 DISTRIBUTION PROCESS 39 | P a g e
  • 40. A Project Report on Café Coffee Day 7. INDUSTRY SECTION FUTURE PLANS:- 1. Serving to the Air Deccan Consumers in air. 2. Planning to open cafes in Middle East, Eastern Europe, Egypt and South East Asia in coming month. 3. In June, 2010 Cafe Coffee Day chain acquired Emporio for Rs 15 crore. Emporio is a Czech Republic-based café chain present at 11 locations. CCD plans to co-brand the chain as Café Coffee Day Emporio and later transition it to Café Coffee Day. CCD is also present in Vienna. The company wants to expand in the East European region, West Asia and the Asia-Pacific region. 4. Cafe Coffee Day has around 821 outlets in 115 cities in India. CCD plans to take the total number of cafes to 1,000 by March 2010 and double it to 2,000 by 2014. In October 2009, CCD announced that it will increase its international presence from the current six outlets in Vienna and Pakistan to a total of 50 stores across Europe and Middle East in two years time. 7.1 SWOT ANALYSIS Strengths 40 | P a g e
  • 41. A Project Report on Café Coffee Day • Products of extremely good quality and taste. • Its a youth oriented brand , hence huge potential since 40 % population is below 20 • It produces/grows the coffee it serves hence reducing the cost. • USP of brand is its considered a highly affordable brand. • India's largest retail chain of cafes. • ISO 9002 certified company. Weakness • Weak brand image and lacks strength to maintain brand loyalty. • Poor ambience and decor. Café Coffee Day outlet served prime space for advertising and promotions. • Many of the Café Coffee Day stores are incurring loses due to wrong site selection. Opportunities • Coffee cafe industry is one of the fastest growing industries in Asia. • More people like to visit Café Coffee Day for informal meetings. • Café Coffee Day has gone international, and is planning to attract many new international markets, hence gaining international recognition Threats • Competition with other coffee cafes like Barista, Mochas. • International Brands like Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café. Other hukka parlours are also gaining lot of attention and preferred by young generation to hang around which in turn is attracting the market captivated by Café Coffee Day. 41 | P a g e
  • 42. A Project Report on Café Coffee Day 7.2 PORTER’S FIVE FORCES MODEL Threat of new entrants Threat of new entrants is high. As more and more international brands are looking towards India as the new target Market. E.g.:- • Gloria Jeans • Star Bucks • Illy Café • Coffee Bean Bargaining power of customers Bargaining power of customers is high as more and more Cafes are coming. So Café Coffee Day needs to keep the prices as per customers. The price should satisfy the customer and attract them. Below mentioned are three factors to be considered:- • Price comparison • Variety of products • Service provided Bargaining power of Suppliers 42 | P a g e
  • 43. A Project Report on Café Coffee Day Bargaining power of suppliers is very low as Café Coffee Day manufactures its own coffee bean. More over the food items they buy from local suppliers are easily available and they can easily change the suppliers as and when they want. Below are few factors mentioned regarding the bargaining power of suppliers:- • Food items obtained from local suppliers • Follows backward integration • Coffee beans from its base in Bangalore Threat of substitutes Threat from substitutes is very high. As there are Hukka Parlours, Other fruit juice joints are becoming the new junction for youth. E.g.:-  Ice tea offered by Costa coffee  Coffee offered by other competitors  Cold drinks served in stadium Competition within industry Competition within the industry is very high. As there are number of old players like Barista, Café Mocha, and Minerva are well established players in the market. Barista is also targeting the same market segment i.e.; youth. 43 | P a g e
  • 44. A Project Report on Café Coffee Day 8. CONCLUSION AND RECOMMENDATIONS From the project we can conclude the following:-  That Café Coffee day is planning to go international.  The other major things regarding service marketing is that customers 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. 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. 44 | P a g e
  • 45. A Project Report on Café Coffee Day 9. BIBLIOGRAPHY Sites Referred:- • shttp://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 45 | P a g e