Marketing Management Project

Café coffee day

A lot can happen over coffee

Submitted by:

Rakesh Bawari 2009191

Sahil Agarwal 2009220

Rajan Punatar 2009232

Rajeev Ranjan Choudhary 2009248

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Introduction
Café Coffee Day is a division of India's largest coffee conglomerate,
Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly
known as Coffee Day, a Rs. 750 crore ISO 9002 certified company. Coffee
Day sources coffee from 5000 acres of coffee estates, the 2nd largest in
Asia, that is owned by a sister concern and from 11,000 small growers. It is
one of India‘s leading coffee exporters with clients across USA, Europe &
Japan.

LOGO

Café Coffee Day squared logo in its fresh new avatar –a ‗Dialogue Box‘ - with
the words Café Coffee Day written in a distinct, specially created font. The
new trendy ‗dialogue‘ logo symbolizes the essence of what a Café Coffee Day
is really all about – a perfect place to ‗relax and have a dialogue‘. And as we
all know, a lot can happen over coffee!

Origin of 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. Till about the late 1990‘s
coffee drinking in India was restricted to the intellectual, the South Indian
traditionalist and the five star coffee shop visitor. As the pure (as opposed to
instant coffee) coffee café culture in neighbouring international markets
grew, the need for a relaxed and fun ―hangout‖ for the emerging urban
youth in the country was clearly seen.

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Recognizing the potential that lay ahead on the horizon, Café Coffee Day
embarked on a dynamic journey to become a large organized retail café
chain with a distinct brand identity of its own. From a handful of cafés in six
cites in the first 5 years, CCD has become India‘s largest and premier retail
chain of cafes with 833 cafes in 118 cities around the country.

International Presence

Enthused by the success of offering a world-class coffee experience, CCD

has opened a Café in Vienna, Austria and is planning to open other Cafes in
the Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the
coming months.

Divisions of Café coffee day

Café coffee day has different divisions which includes:

Coffee Day Fresh n Ground (which owns 400 Coffee bean and powder
retail outlets)
Coffee Day Xpress (which owns 895 Coffee Day Kiosk)
Coffee Day Take away (which owns 12000 Vending Machines)
Coffee Day Exports and
Coffee Day Perfect (FMCG Packaged Coffee) division.

Customer Profile as per the Research conducted by CCD

The café is a meeting place for 15-29 year olds, both male and female who
are served the best coffee by friendly and informed staff, in an uplifting and
invigorating ambience.

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The research conducted by CCD shows that teen-agers form 25% of the
customers while 38% of the customers are between 20 and 24 years and
another 23% belong to the age group of 25-29 years. Students and young
professional comprise around 72% of our customers.

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; a place
where they rejuvenate and are free to be themselves rather than a place to
be ―seen at‖ vis a vis other cafes.

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SWOT Analysis

Strength:

Large Number of outlet- CCD has become India‘s largest and premier
retail chain of cafes with 833 cafes in 118 cities around the country.
In house sourcing of coffee beans - Coffee Day sources coffee from
5000 acres of coffee estates, the 2nd largest in Asia, that is owned by
a sister concern and from 11,000 small growers.
Tie Ups with good companies – CCD does this on regular basis which
helps in building relation and providing customers with great value.
Latest tie up of CCD is with American Express.

Weakness:

Limited Target Audience – Older generation generally doesn‘t visit café

coffee day because of its ambience.
Range of snacks limited and bit pricey.
Quality of food – Stale breads – As CCD outsource confectionery items
to the local vendors, the quality of breads and snacks varies depending
on the local vendor.

Opportunity:

Relatively untapped coffee market in India, as analysts put it, there is

scope for about 5000 cafes overall.
Indian economy is booming and many cities are adapting metropolitan
culture.

Threat:

Entry of Foreign players scheduled like Starbucks in Delhi and Mumbai

and competition from Barista, Café Mocha, and Costa Coffee etc.

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Marketing Mix
Every company goes through different phases in the business. The phase is
very similar to that of the product lifecycle. In order to sustain in the market
and to maintain its market share it is essential for the company to have a
right marketing mix. The company has to have a mix of proper product that
is relevant to the target audience, proper price, proper reach i.e. the place
and relevant promotion that keeps the target audience interested in the
company.

Product

Cafe Coffee Day being in the food & beverage as well as the service industry
caters to a mix of customers where some visit the cafe for its coffee,
sundaes snacks etc while others visit it for socializing and ambience. Thus
we can divide the product range in three categories:

1.1 Food and Beverages:

In order to cater the demand for food and beverages in the cafés CCD
increased their menu to include over 250 customized food and beverage
offerings to cater to the different geographic and demographic segments
throughout India.

At CCD, every coffee menu is combined with the right kind of eats, whether
a dessert or a snack. Menu changes occur once in four months to prevent
food fatigue. Also it follows regular customer feedback and research so as to
determine changing tastes and preferences. And in food and beverages,
customer preferences have changed drastically in the past three years. Why
would the consumer pay for anything he does not like?

Sandwiches are always on the menu, but the fillings now change from time
to time. It also introduced wraps as monthly specials and also introduced
more Indian snacks like kathi rolls, paneer tikka sandwiches and veg potlis.
Also, it was found that customers prefer food that‘s more filling. So now it
offers light meals like pasta or biryani, instead of a snack. While the
beverage menu is standard, the food menu changes for different cities like
consumers in Lucknow like potlis, but other cities prefer the samosa.

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In Amritsar, customers want larger sandwiches, while consumers in Pune
want a choice of breads for their sandwiches. And, in keeping with customer
feedback, it started offering granitas (crushed ice and flavoured syrup) and
crushes in addition to the regular coffees.

―A look on the Menu”

Coffee :

o Hot Coffee :
Hot coffee consists of 10 major types of coffee consisting of
Irish, Chococinno etc.
o International Coffee :
International coffee consists of 2 types of coffee namely Kenyan
Safari and Ethiopian Qahwah .
o Cold Coffee :
Consisting of 4 major kinds of cold coffee with various sub-
varieties within Coffee On the Rocks, Ice Blended Coffee, Cream
Blended Coffee and Fruit Frappe.
Coffee Add- Ons :
To make your coffee more exciting it also
provides various add-ons (separately charged )
consisting of Honey, Flavored Syrups, Red Eye,
Whipped Cream, Scoop of Ice Cream, Chocolate
sauce etc.
Hot Chocolate :
This beverage is served hot with lots and lots
of chocolate.

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Tea :

CCD serves mainly five types of tea namely

Assam Tea, Masala Chai, Lemon 'n Ice Tea,
Strawberry Ice Tea, Hot Lemon Tea etc.
Powder Coffee :

It serves five types of coffee powder to its

customer for giving them the same fragrance
at home.
Cool Drinks :

It consists of two types of cool drinks consisting of different

types of Smoothie‘s and Granitas.

Cremosas ( Soda’s ) :
Soda of three flavours Litchi, Ginger and Pineapple.

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Cake, Mousse, Pie, Gateaux, Brownie, Doughnut,
Cookies etc. :
CCD has extensive varieties of Cakes, Mousse etc.

Ice Creams :

It serves three kinds of ice-creams, Vanilla, Chocolate and

Seasons Best (according to the season e.g. litchi, mango etc.)
Cool Fresher’s :
It consists of fruit juices and mineral water.
Sundaes :
It consists of kinds of specialties namely Chocolate
Fudge, Caribbean Calypso, Chocolate Truffle, Choc-
a-Vloc and Vanilla Sundae.

Quick Bites :
o Vegetarian :
Consists of many varieties of Samosa‘s , Puff ,
Croissant , Pizza , Sandwich etc.
o Non-Vegetarian :
Consists of many non-vegetarian varieties of
Samosa‘s , Puff , Croissant , Pizza , Sandwich etc.

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1.2 Service and Ambience:

“Café coffee day….A lot can happen over Coffee, well said.... coffee and
conversation...”

“Its a great place to sit with friends and talk if music is not loud....”

“Good decor...simple and comfortable”

Verbatim say it all, more than half of the customers visit CCD for socializing,
thus service and ambience are the key factors to be considered. The café is
a meeting place for 15-29 year olds, both male and female who are served
the best coffee by friendly and informed staff, in an uplifting and invigorating
ambience. 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‖. Good music, nice decor, and quick service make a coffee
at CCD worth its price. To further brighten the vibrant atmosphere of the
cafés, there has been a greater thrust on providing more value added
services such as video juke boxes, cozy sofa seating, and exciting round the
year promotions. The young colors of today, lime green, yellow, orange, and
purple predominates in the cafes. The crockery also sports these colors. The
larger cafes have lounge areas and a few beanbags.

An important decision CCD took in their outlets was to provide table service
and not enforce self-service. They found out that the customers did not want
their names to be shouted out when their orders were ready.

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Another advantage of table service is that they can engage customers in
conversation and persuade them to try more dishes on the menu. This is
something that cannot be done in a self-service set-up, when there are
people queuing up, waiting to be served.

Of late CCD has started experimenting with the cafe formats, following are
the different cafe formats being introduced recently:

Music Cafés provide customers with the choice of playing their favorite
music tracks on the Digital Audio Jukeboxes installed at the café! There
are around 85 cafes with such jukeboxes. 32 cafes also provide
customers with the visual treat of watching their favorite music videos by
means of Video Jukeboxes.
Book Cafés offer the perfect solution to people who think that the coffee
experience is incomplete without browsing through the bestsellers or
reading a classic. CCD‘s book corners accentuate the age-old
combination of ‗coffee and books‘. This exciting concept has been
successfully tested at 15 cafes in 12 cities across India and the numbers
are set to grow exponentially. CCD has tied up with English Book Depot,
one of India‘s leading book distributors for placement and rotation of
reading materials appealing to Café Coffee Day‘s discerning customers.
Highway cafés on the Bangalore – Mysore highway and NH-8, presents
the traveler en route not only with good coffee and scrumptious snacks
amidst great ambience but also with clean restrooms to get rid of that
weariness from the road!
Lounge cafés at Hauz Khas, Delhi and Southern Avenue,
Kolkata(Southern Avenue) and Hyderabad (Jubilee Hills) combines the
style and luxury of a lounge with the lively ambience and comfort of a
café. With exquisite interiors, exotic menu and thematic music CCD
Lounge offers a whole new experience to the connoisseur while assisting
the latter through its team of hostesses who are poise and style
incarnate and are looked upon as fashion icons.
Garden cafés at M.G Rd, Bangalore and GKII, New Delhi combine the
joy of rejuvenating amidst verdant landscapes and pots of coffee.
Cyber cafés at Brigade Rd, Bangalore, Airport, Bangalore and Airport,
Delhi combine the urge to surf, not to mention get connected through
the internet while enjoying perfectly brewed cups of coffees, both
domestic as well as International blends!

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Sports café, Singles café and fashion café are next in the pipeline.

1.3 Other Merchandise:

Funky Caps, Cool T-Shirts, Bags, Mugs, Coffee Filters, Mints etc.
Coffee Powder in 6 flavours
Assam Organic Tea
Coffee Cream
Wafers
Almond Biscotti
CCD‘s guide to Active Holidays
CAFE BEAT- A monthly youth magazine widely read throughout the
country.

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2) Price

CCD adopted a strategy to provide the best coffee experience at an

affordable price and thus they aimed to keep their operating costs low.
Following are some of the pricing strategies adopted by CCD:

1. CCD source coffee beans from its own estates thus the raw material
prices are comparatively low. Also most IT solutions were designed
in-house to keep the costs low.

2. For employees travelling expenses and the use of cars and

telephones is kept to a minimum and in many outlets, employees
who serve customers do the housekeeping as well, so that they need
not hire extra employees for that task.

3. CCD tries to cut costs at every stage, without cutting corners. For
instance, instead of three hinges for the café doors, they use only
two; and, instead of six screws in the hinges, they use only four.

4. CCD source from overseas — compared to India, east Asian countries

and China are far ahead in terms of low-cost, quality furniture.
Imported furniture is about 25 per cent cheaper than Indian,
custom-made furniture. It‘s not just furniture. Bangladesh and Sri
Lanka produce better quality crockery at similar prices.

5. Café Coffee Day has different food suppliers for different locations.
Within one region, they may have as many as three suppliers if there
are 40 or 50 cafés. That way, one supplier can serve 15 to 20 cafés.
It is too risky to depend on one supplier — if something goes wrong,
the food supply to all the cafés in a city can be affected.

6. They try and work better with a local supplier as it cuts the
transportation costs. They train him and his staff, make him carry
out improvements in his kitchen, and then produce food as per their
specifications.

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Still CCD is by no means low-priced, but when compared to the price lists
of other chains the CCD menu looks affordable.

Café Coffee Day has positioned as ―Value for Money‖. The major target
customers are the youngsters. Pricing is a very sensitive issue for the
Indian consumers. Café Coffee Day believes in mass marketing. The
average spent by the customer is Rs100-Rs125. Their coffee starts from as
long as 40 Rs. However, there are some outlets where the students are
given special discounts. CCD even set up their outlets in the college
campus. For e.g. Café Coffee Day has opened outlets at campuses like
NMIMS, JNU etc, where they are providing additional 10% discount to the
students. CCD has also set up their outlets in IT and other companies. For
e.g. CCD has outlets in Wipro Technologies where it is providing all the
products at a subsidized rate to attract the huge number of employees.

CCD has expanded to more interior places. Here prices become more
complex as the consumer are very conservative in spending. A cup of
coffee at Rs. 40 is accepted in metro cities but not in small towns. The
decor, ambience and the experience will play a major role in pulling the
crowds in small cities. We asked Prashant Khobargad, Café manager, Civil
Lines, Nagpur about the same and he stated that people generally come to
CCD in Nagpur to socialize and have fun.

The price of the product has to be kept uniform in order to maintain the
uniformity in all the outlets.

As per the online survey results 73 out of 100 people feel that the prices at
CCD are affordable while others feel that it‘s too much. Considering the
fact that most of the respondents were students who are dependent on
their families for their pocket money the numbers seem quite reasonable.
However as the participants were mostly from the above average income
bracket, the price is still in a question mark.

Verbatim from the survey:

“Add some less expensive coffee for students”

“It's still costly for average income people. I think they can capitalize more
on the market by reducing the price. Personally I feel that these brands be
it CCD or Barista cater to a minute fraction of Indian society (and that is

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high class in my terms) and thus they are actually losing a lot of revenue
which could be earned more if they take average earning people into
consideration. Believe me it's a big market if u concentrates on commoners
who still prefer a nukkad tea stall for a cup of tea/coffee for Rs 4/5. ”

Still, considering the fact that Cafe Coffee Day targets its customers on the
twin forces of coffee and ambience, a competition with local cafes or
nukkad tea stalls cannot be justified as they cannot provide the lifestyle
value that CCD provides.

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3) Place:

From a handful of cafés in six cities in the first 5 years, CCD has become
India‘s largest and premier retail chain of cafes with 833 cafes in 118 cities
around the country. Café Coffee Day outlets are spread across India.
However, there are more number of outlets in the metros and towns. For
e.g. In Bangalore only CCD is having 141 outlets at present and 120
outlets in Mumbai. Café Coffee Day has also been on an aggressive drive
to expand the number of cafés in the smaller towns across the country
based on research and invitations received from these places to open
more such cafes there. For e.g. In Nagpur CCD has opened 8 outlets. The
company expects to reach the figure of 1000 cafés by March-April
2010. Cafe Coffee day has a very aggressive plans for future expansion
also. The company says that it is looking to touch 2000 mark over the
next 3-4 years. The company is aggressively expanding its oversees base
also and is expected to reach around 200 outlets over a period of time.

Cafe Coffee day chooses its outlets positions strategically. It is always

seen near colleges, universities, schools, shopping malls, IT companies etc
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where youth population dominates. It has also opened highway outlets on
major highways so that consumers can have a nice journey and stay
refreshed. CCD is present at international airports also.

Concept of Coffee day express:

CCD has addressed the need of

consumers on different
platforms. In 2002, consumers
on the go were one consumer
segment whose needs were
addressed by starting express
coffee machines at petrol
pumps, malls, shop-in-shops
and offices.

Cluster/Blanket strategy:
Ever since its entry in India, CCD created entry barrier for competition
with as many as four-five CCD cafes dotting a single street. The
cluster/blanket strategy aimed at getting consumer habituated to the
brand. Within the Mumbai suburb of Bandra, for instance, CCD has sister
outlets. At another location in Koramangala, Bangalore CCD is having four-
five outlets which are always buzzing with customers. The latent need in
the market countered the cannibalization of footfalls as was evident from
the four successful cafes at its single catchments area at Indranagar in
Bangalore. The strategy also made operations easier with supply
managements and quick replenishments whenever one cafe ran out of
stock. Having one manager for a set of cafes improved efficiencies and
reduced costs. Importantly, none of these outlets is a franchise. A crucial
part of CCD‘s strategy is that all their outlets are company-owned as CCD
believes that while self-owned cafés may be more expensive in the short
term, a too-hasty switch to the franchisee model may cost their brand
value.
Besides, self-owned cafés mean greater control on product quality, service
and training, which is critical for a relatively-young brand.
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Distribution:
Café Coffee day was among the first coffee cafes in India to start
operations in 1996 but was the last to go national (2001).

―We‘ve seen the hard days when every customer had to have every item
on the menu explained.‖ Prashant Khobargad, Café manager, Nagpur.

This could be a major reason why CCD waited till 2001 to go national.

In the beginning the distribution was centralized as they used to transport

fresh roasted coffee from their estates in Chikmagalur to far off places like
Mussourie in North and Jamshedpur in East. With a target of 4-6 new
cafes every month, such a centralized distribution channel did not seemed
feasible and thus CCD invested approximately 1.2 crore in its supply chain
to develop what they call as B2C (Bean to Cup) supply chain strategy. It
set up regional offices in Delhi, Mumbai and Kolkata which then further
linked to the towns in their neighborhood.

The sourcing policy includes both local and centralized sourcing based on
the volume lead time and value of the materials. For items that have
fluctuated demand and large volumes, the inventory is managed by
vendors.

CCD also implemented a web-based electronic order processing system

thereby reducing the lead time in delivery. The online inventory tracking
process operates with the use of two supply chain modules: one at the
café level- POS and the other at the distribution.

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4) Promotion
In order to stay with the competition and to keep the audience interested,
they undertake lot of promotion activities. CCD jointly organizes large
number of promotions with the other companies serving the similar target
audience. These cafes have emerged as a new media vehicle for reaching
the right type of the customer. CCD gets in physical touch with audiences,
target loyalty club members, or advertises in their newsletters. The following
were the promotional activities undertaken by CCD.

A. Advertising
1. The Levi's Campaign

The 6‖ Below the Naval Jeans campaign, the Sykes Reversibles (Ulta Pulta)
campaign, the Levi‘s 501 campaign, the TLTT (The Levi‘s Torture Test), the
‗Hello Gorgeous‘ campaign et all are some of the successful in café
activations designed and executed for Levi‘s. Every season CCD becomes an
important media for Levi‘s to launch its new range of apparels. Alongwith
providing tremendous on ground visibility in terms of wall visuals, tent
cards, danglers, posters etc., a contest (wherein customers could win Levi‘s
GVs) is designed to inject customer interactivity and to add excitement to
the entire campaign. The cohesiveness of the entire campaign is accentuated
by creating a new drink and christening it as the Levi‘s drink for the promo
period. Levis is considered as a youth brand and by associating with Levi‘s
CCD is enhancing its Brand image as a youth brand. It also helps in sales
promotion as the customers gets tempted to try the new product.

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2. The LIRIL Campaign

Liril launched its new range of soap – Liril Orange nationally through CCD by
means of an innovative campaign designed for the same which included the
creation of 3 new drinks called Liril Coolers (the colors of the drinks
matching the new color range of Liril) along with heavy in-café branding by
means of collaterals e.g. Tent cards, Menu cards, Danglers, Posters, TV
stickers, Badges & Soap dispensers (in the rest rooms).

3. The Himalaya Honey Campaign

The Himalaya Drug Company had recently entered into a tie up with Café
Coffee Day to promote their honey. This honey was made available through
over 100 Café Coffee Day outlets across 7 cities, in a 3-month promotion
where Coffee Day customers experienced the taste of pure of honey in
innovative ways. Honey Cappuccino, Honey milk shake, rich chocolate cake
and ice cream topped with honey and nuts! Four unique dishes were
conceptualized by Café Coffee Day, each enriched with the goodness of pure
Himalaya Honey. These were an instant hit with the customers. In addition
to honey-based items, bottles of Himalaya Forest Honey were also available

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in all Coffee Day outlets. The bottles of Himalaya forest honey contained the
Café Coffee Day logo. In this way CCD used the brand image of Himalaya
Forest honey to enhance its own brand image.

4. Magazine

CCD also has private magazine distributed free to their customers. It

includes ads and advertises about the promotions to follow.

5. Movie Tie-Ups

CCD has become an important national on ground partner for Production

Houses to promote movies better among the masses by means of colourful
collaterals like – posters, tent cards, danglers et al. Interactivity is ensured
by conducting exciting contests around the movie wherein customers with
the correct answers stand to win a ‗Coffee date with their favourite movie
stars‘.

The ‗Mujhse Shaadi Karogi‘ Promotion:

The contest, starting July 10, 2004 ran across 168 cafes in 42 cities for a
month, where any customer billing a ‗Shagun‘ amount of Rs 301 was
guaranteed to win at least one prize ranging from audiocassettes to movie
tickets and a chance to enter a lucky draw, which would win them a coffee
date with Priyanka Chopra. To heighten the excitement, CCD even created
an ambience of ‗Shaadi Season‘ with cafe staff wearing heart shaped badges
with ‗Mujhse Shaadi Karogi Contest @ CCD‘ pinned on their shirts. Creatively

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designed posters and tent cards in the wedding card format were used as
tools to encourage customers to be a part of this contest.
Other Successful promotions have been conducted for movies like Ladder
49, The Village, Khakee,Mughal-e-Azam, Shabd, Love Aj kal etc.

B. Sales Promotion
1. The Sugar Free campaign

In order to promote Sugar Free, CCD launched a new ―Low calorie menu‖
consisting of a wide range of Low calorie Hot coffees, International coffees,
Tea, Tropical Iceberg & a range of veg. and non-veg. food as well as
desserts like Lemon Soufflé etc. This menu was communicated to the
customer by means of Sugar Free branded menu boards, menu cards etc.
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Also, a few bottles of Sugar Free were displayed at the counter to serve as a
pointer to the on-going activity. This way CCD included some new and
innovative products in its menu and utilized the brand equity of Sugar free in
their sales.

2. Tie up with EBD Book Café:

EBD book café has joint ventures with CCD. One can find one‘s favorite
books at such cafes starting from fiction, non-fiction, religion, cookery,
management, lifestyle, art & craft, children books side by side enjoying
the coffee. EBD Book Café in collaboration with Café Coffee Day have
existing outlets in Ludhiana, Jaipur, New Delhi and Kanpur and are in
discussion to open more such outlets in, Mumbai and Ahmedabad.

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 C. Events and Experience:
1. The Channel V- Get Gorgeous Hunt

ICCD was the exclusive on ground partner for the national hunt for the most
gorgeous female models by Channel V, wherein candidates could drop their
entry forms with portfolio at any CCD outlet. The event was heavily
promoted by CCD through in café branding and on air by Channel V. CCD
also launched a new range of ‗Get Gorgeous drinks‘ as part of the promotion.
Innovative collaterals like branded stirrers etc. were used to add that extra
element of surprise. So much so was the success of the campaign that
Channel V has chosen CCD to be the on ground partner for ‗Get Gorgeous-
Part II‘. This has helped CCD to advertise its brand in Channel-V.

2. The TVS Scooty Valentine Campaign

In 2004 TVS launched the ‗TVS Scooty Valentine Singles Campaign‘ in
association with CCD where CCD created 2 special combos called the TVS
Valentine Combos– Hot & Cold (2 ice blended Cold coffees/2 Café Mochas
with a Chocolate Fantasy). This way it associated itself with a youth brand
adding to its brand image and promoting the sales through new and
innovative products.

3 Oyester Bay
CCD did its promotion with the Oyester Bay Jewellery for the woman‘s day.
CCD arranged a contest, which was arranged for the woman‘s day event.
That contest attracted the young crowd especially girls.

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D. Direct and Interactive marketing
Smart Card Programme:

A smart card is provided to a customer in which all vital customer-related

information is stored; this info includes his profile, likes and dislikes,
previous visits to CCD outlets, etc. When this card is swiped on the Lipman
device in the hands of a waiter at a CCD outlet, all his information is
displayed on the screen to help the café staff serve him better. For every
purchase, the customer accumulates points on the card which he can use on
subsequent purchases. Customers can register their complaints or queries at
the outlets; these are communicated instantly to the customer care staff
who answer them at the earliest or pass them on to the concerned
department.

CCD‘s staff is looking forward to the completion of the deployment of its new
system that is expected to increase table turnover while enhancing the
service the chain offers its customers. By capturing information regarding
the customer‘s tastes, CCD will get to know him that much better.

E. Word of mouth marketing

Word of mouth publicity is a very intimate dialogue that reflects personal
facts, opinions and experiences that the customers share with others. CCD
relies heavily on word of mouth publicity. Most of the customers of CCD are
youth. Approximately 90% of CCD customers are youth according to the
survey conducted by us. And the feature they like the most is Ambience. So
when they interact with others they spread word of mouth publicity about
CCD.

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Outlet Visit:
VCA Stadium Complex, Civil Lines

This is the first CCD outlet that came up in Nagpur around 5 years back. It‘s
the biggest CCD outlet in the city of Nagpur with 2 storey sitting
arrangement. There are few tables that are placed outside the cafe for the
customers who want to enjoy cool breeze and hot coffee at the same time. It
has the capacity of around 100 seats with 28 tables spread over around 800
sq feet area. The location of the store has also played a very important role
in gathering crowd. It‘s situated very near to Liberty Cinema and Sadar
which is a very happening place in Nagpur and you can see many youngsters
around that place. This outlet is having a big parking space as it is located
inside a complex.

The working hour of the outlet is from 8.30AM- 11.30PM. The peak time
when most of the customers visit this outlet is from 6PM to 8PM in the
evening. The staff members include 1 cafe manager and around 10 male
employees. Normally, the footfall at this outlet is around 250 per day but it
varies substantially during the holidays and weekends when the youngsters
are in search of a good hangout place. The average spend by each customer
is around Rs100-Rs120.

The store sells lot of other products like cookies,

cups etc which does a good business. The
ambience inside the cafe is very lively with
colours like red, orange and yellow spread all
over. It makes the coffee experience memorable

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and if you are with your friends then this place is for you.

Customer Profile:
90% lies in the age group of 18-35 years.
60% of customers who visit the outlet are male and 40% is female.
80% of customers who visits the cafe are students and young
professionals and 20% is family.
Around 32% of the customers visit the cafe weekly.

We got a chance to speak to the cafe manager, Mr Prashant Khobragad and

he gave us some useful piece of information mentioned above regarding the
cafe. Some of the additional information that we got are listed below:

He told us that in a small place like Nagpur, people come to CCD to

hang out with friends and socialize more than tasting their favorite
coffee flavor. He agreed that in big cities (especially in the South)
many people come to have their favorite drink rather than socialize
with their friends. We can conclude that it happens because in a place
like Nagpur student population dominates and in big cities the crowd is
diversified.

Mr Prashant told us that CCD‘s biggest promotion happens through

word of mouth.

He told us that they score over their competitors in terms of service

satisfaction. We got the information that CCD conducted a survey in
which they came to know that customers don‘t like their names to be

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 called out. So, CCD employees serve their customers rather than
customers going for self service. This helps the employee to build
better customer relationship also which increases customer loyalty.

We got information that Barista opened an outlet in Nagpur some

years ago but it had to close down soon as it didn‘t get the required
footfall. When we asked the reason to Mr Prashant, he answered that
people in Nagpur like to be served rather than availing self service.
They want to spend less and enjoy the ambience with their girlfriend/
boyfriend, friends, etc. These things were not provided by barista so it
had to close down.

How can anyone go to CCD and not have their favorite coffee and delicacies?
We sat there for 1 hour, enjoyed the ambience and the coffee. Some
observations that we made have been listed below:

We saw a group of girls sitting there and having chit chat and they
stayed there for a long time.
There was a couple sitting in a corner and was engaged in a deep
conversation.
One man was sitting alone with a cup of coffee and he was doing some
work on the laptop.

These observations testify what Mr Prashant had told us regarding why

people visit CCD in small cities like Nagpur? The answer is for its ambience,
fun, and togetherness.

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Market Survey:
Survey methodology
An online survey was conducted consisting of a sample of randomly selected
people from all over India. This survey was conducted to find out the
customer‘s view about Café Coffee Day. 99 people participated in the
survey. We asked them 9 questions to collect their views. The result is
summarized below.

Survey Summary
1. Age Group
others
9%

20-30 yrs
91%

91% of the respondents were of the age group of 20-30 and only 9%
were of other age groups. Although this is not a true indicator of the
whole market, it gives us some idea or the closeness to the whole market
of CCD.

2. Frequency of visits

Rarely Frequently
22% 32%

Occasionally
46%

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 As per the survey result 78% of the CCD customers either frequently or
occasionally visit the outlets. So we can conclude that CCD is liked by its
customers for socializing, ambience, coffee etc.

3. Why do customers visit CCD?

50
45
40
35
30
25
20
15
10
5
0
Coffee Ambience Socialising Food Items others
Series1 37 48 46 7 1

The customers visit CCD mostly for its ambience and to socialize with
their friends. Some of them visit CCD also for its exclusive coffee
experience. Many of the respondents chose both coffee and ambience
which proves that coffee along with ambience is a perfect blend to attract
the youth.

4. What do the customers think about the price and other items at CCD?

Its too much

27%

Its affordable
73%

Most of the customers think that the price of coffee and other items is
affordable. Still, there are a small percentage of the customers who
believe that CCD should further reduce prices.

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5. Are the customers able to locate an outlet nearby?

No
26%

yes
74%

In tier-1 cities there are many outlets of CCD; so the customers don‘t
face any problem in locating CCD outlets. But in Tier-2 and Tier-3 cities
outlets are still less in number and far away from each other, so
customers face difficulty in locating CCD outlets.

6. Customers view about CCD as a brand

60

50

40
Axis Title

30

20

10

0
A place for youth A cool place Simply coffee
shop
Series1 47 55 9

It is evident from the chart that CCD has been able to position itself in
the minds of customers as a cool place for youth. It‘s more than just a
coffee shop. CCD has become a concept now.

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7. How do customers come to know about CCD?

70

60

50

40

30

20

10

0
Friends Newspaper Advertise just passed Don’t
s ments by CCD remember
Series1 66 2 2 30 2

CCD believes in word-of-mouth publicity. This is quite evident from the

survey as two third of our respondents came to know about CCD from
their friends. We also see that 30% of the respondents came to know
about CCD as they passed by the outlet.

8. CCD vs Barista
Cant say
6%

Barista
30%
CCD
64%

64% of the respondents prefer CCD to Barista. The reasons for the same
are as follows:
The price of coffee and other items at CCD is quite affordable and
less as compared to other competitors like Barista.

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 The ambience at CCD is better than Barista. CCD is more youthful
place than Barista.
They find the taste of coffee at CCD better than at its competitors
like Barista.
It is more popular than Barista as a hangout place.
It has more outlets than Barista

30% of the respondents still prefer Barista. The reasons may be

summarized as follows:
It is more formal place than CCD. It is good for formal meetings.

9. Anything CCD should improve upon?

The respondents were asked to give some suggestions for improving
CCD. Their views are summarized as below:

The respondents believe that the CCD should reduce the price of
food items a bit.
CCD should improve upon the order processing time.
CCD has a standard recipe for coffee but they purchase other food
items from local vendors which sometimes are of low standard.
Most of the respondents complained about the quality of bread and
other food items. CCD should try to improve the quality
parameters.
The employees should be given better soft skills training especially
in tier-2 and tier-3 cities.

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References:
Primary sources:
1. Online customer survey at Google documents.
2. Outlet Visit- VCA Stadium complex, civil lines; date- 22-11-09.
3. Interview with the manager Mr. Prashant Khobragad and customers

Secondary Sources:
4. Cafecofeeday.com,
5. Wikipedia.org
6. Café beat magazine
7. Franchiseindia.com

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