10-04-2017, 09:21 PM
Cafe Coffee Day 2011
Executive Summary
On the process of the study of product and brand management I have chosen Cafe Coffee Day for my study wherein the details of the company, product portfolio, marketing mix, competitive analysis, future trends of the sector, SWOT analysis and my suggestions for the future developments of the company exists.
Corporate Profile
Cafe Coffee Day is India's favorite coffee shop, for the young and the young at heart. It is a part of India's largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company. There s over 10,000 acres of rolling hills with the coffee shrubs making for lovely walks. There are 11,000 small growers who make them who they are. And they are not alone; there are folks in the USA, Europe and Japan that buy coffee from CCD, making them the top coffee exporter from India
CCD brought the concept of cafes in India. The first one opened in 1996 on Brigade Road in Bangalore. It's been an exciting journey for CCD, becoming the largest organized retail cafe chain in the country.
Mission
To be the best Cafe chain by offering a world class coffee experience at affordable prices.
Cafe Coffee Day's Divisions
Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets.
Coffee Day Square, a high level coffee bar in Bangalore.
Coffee Day Xpress, which runs 900 plus Coffee Day kiosks.
Coffee Day Beverages, which runs over 14,000 vending machines.
Coffee Day Exports, its exporting wing.
Coffee Day Perfect, its (FMCG Packaged Coffee) division.
Cafe Emporio: A cafe chain from Czech Republic. Cafe Emporio has 11 cafes in Czech Republic Caf Emporio runs on 2 formats similar to CCD s regular caf s and Lounge & Square set ups.
CCD is having 1134 stores till 24/9/2011
Marketing Mix
Product:
CCD 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, 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 favour it. In winter it is cappuccino. Their merchandising includes funky stuff like t-shirts, caps etc.
Price:
Considering that CCD 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.45 to Rs 80. From the time it first started its operations, there has been only minor changes in the pricing policy of CCD. The changes have been more due to the government taxes than anything else
Place:
The strategy CCD has adapted is to place a cafe in every possible location where some business can be generated. This is a prime factor in determining the success of a retail chain. CCD looks to cater to their target market with strategically located outlets.
Their outlets are generally located in High Street/ Family Entertainment Centres, gas stations, near Colleges etc.
Promotion:
CCD is involved in all the areas of serious consumer passion like:
Television: CCD 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. They have tied up with Channel [V]s Get Gorgeous contest.
Tie-ups: Besides that CCD also tie up lot of the youth brands. So they have a contest going on with Levis, another one with Scooty, Liril, latest one with Airtel Friends.
Association with movies: CCD can be seen in movies like Khakhee and Mai Hoon Na
Sales Promotion: CCD uses special Cafe Citizen Card for rewarding Cafe Coffee Day s customers. It is a loyalty program to gain new customers and retain the existing ones.
Process:
The ordering and delivery process in CCD was earlier based on self- service. But now in most its coffee shops the waiter comes and takes away the order and delivers the order on table.
Physical evidence:
Logo, image, and brand: CCD has used bright red and green colours in its older logo. RED stands for leadership, vitality, passion for coffee. The GREEN stroke harks back the coffee plantations that they own. Cafe is noticeably larger in the logo to denote that CCD pioneered the cafe concept in India way back in 1996.The font looks as though the letters have congealed out of a liquid The word Cafe was made to appear dominant to indicate Cafe Coffee Day s introduction of Cafe culture in India.
After recognizing the buzz of conversations that invariably accompanied the coffee being served at their tables. CCD introduced a new logo with a Dialogue box in it. This was to highlight the strong connection between Coffee and Conversations . Another indication of the dialogue is the two-way conversation between CCD and its customers
Architecture and Decor: Largely wood and granite based interior with young colours of today, like lime green, yellow, orange, and purple predominate.
Literature: The literature provided by CCD is indicative of its youthful image. The menus, posters, pamphlets are all designed to attract young and young at heart
The Tag Line: "A lot can happen over coffee" became a popular line among youngsters. In a bid to take their coffee chain national in 2000, the management decided to strengthen their brand pull with an appealing tag line. Factors like ambience, food, music, and atmosphere and meeting people were identified as the aspects that were drawing people to their Cafes. Encompassing all these factors in a single line, the sentence "A lot can happen over Coffee, was phrased.