Cafe Coffee day (CCD)

Food

sanjay-gupta
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  • SERVICE MARKETING PROJECT ON CAFÉ COFFEE DAY By Archana, Hardik, Sanjay, Tirthankar (SIESCOMS)
  • CAFÉ COFFEE DAY – Table of Index 1. CCD Introduction 02 2. STPD (Segmentation, Targeting, Positioning, Differentiation) 07 3. Perception Mapping 10 4. SWOT Analysis 11 5. Competitors Analysis 12 6. PESTEL (Political, Economic, Social, Technological, Legal, Environmental) 14 7. 7 PCs P’s Service Marketing 15 8. Strategies (Distribution, Positioning and Focus 43 9. Porters Five Forces 45 10. SPANCO (Tangible / Intangible) 46 11. Recommendations 47 12. Partners 48 13. Conclusion 49 14. Q&A 50 15. References 51
  • CAFÉ COFFEE DAY - Introduction  Founded in 1996  India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd  Strives to provide the best experience to their guests  Pioneer of the café culture and the first to launch the ‗coffee bar‘ concept in India  Network strength: 1450+ cafés in 172 cities/towns across India and growing  First to roll out the ‗coffee bar‘ concept in India with its first café in Bangalore.  Outlets set up are based on the three formats -- cafe, lounge and square.  Menu ranges from signature hot and cold coffees to several exotic international coffees, tea, food, desserts and pastries and exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available at the cafés  CCD is present in every nook and corner of the country which includes Vienna, Austria and Karachi and plans to open across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future
  • CAFÉ COFFEE DAY – Introduction Continue…  In 2010, they clubbed all his businesses (except agriculture) under Coffee Day Resorts Holdings.  Existing investors include global PE firms KKR and Co. LP, New Silk Route Partners LLC and Standard Chartered Private Equity have 25% stake  Darby Overseas Investments Ltd—the private equity arm of Franklin Templeton Investments, International Finance Corporation and Deutsche Bank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd  CCD’s SBU – Coffee Day Fresh 'n' Ground – Coffee Day Xpress – Coffee Day Take away – Coffee Day Exports – Coffee Day Perfect – (FMCG Packaged Coffee) division
  • WHY CAFÉ COFFEE DAY  Average Footfalls: 300 per café per day  Average dwell time at café: 45 minutes  Meeting place for 15-45 year olds  A place where :  Students frequently visit most after ―home and workplace/college‖  Friends and colleagues meet n groups of 3 or more  One rejuvenates and are free to be themselves rather than a place to be ―seen at‖  The café is also the venue for business meetings (23% ), celebrating special occasions (20%) or just plain ―Time Pass‖ (57%).
  • Key Target Audience  Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage.  The group comprises of mainly college going students and young working professionals 27% 66% 7% Professionals Students others
  •  Middle class and upper middle class youth  Students, House wives, executives and youngsters  People who value a great cup of coffee  CCD seeks to target not just the youth but anyone who is ―young at heart‖.  1481 outlets in 200 cities  Strong and Stable Parentage  Right Locations  Place a cafe in every possible location where some business can be generated.  To be present in educational institutions and corporate campuses  ―Third Place" away from the home and college or workplace for the young and the young at heart.  Coffee Bar  Fun Place  Home and Workplace  Medium Price Brand Café Coffee Day has its main consumer base in the age group of 16-30 years. TARGETING POSITIONING DIFFERENTIATION SEGMENTATION S-T-P-D
  • POSITIONING STRATEGY POSITIONING OF DIFFERENT OUTLET Café Coffee Day • Coffee lovers • Youth • A place for Hang out The Lounge • Premium Cafe The Square • Exclusive for Coffee lover
  • – Changing the logo to a ‗Dialogue Box‘ - with the words Café Coffee Day, symbolizes a perfect place to ‗relax and dialogue‘ – Tagline : a lot does happen over coffee!! New Logo REPOSITIONING CCD
  • Perception Mapping Quality of service (High Involvement) Quality of service (Low Involvement) High Price Low Price
  • SWOT Analysis SWOT OPPORTUNITY  Fastest growing industries in Asia.  Preferred for informal meetings.  Gone international STRENGTHS  Largest retail chain of cafes  ISO 9002 certified company  Quality and taste  Youth oriented brand  Reduction in cost (Own Production)  USP of brand - Highly affordable brand WEAKNESS  Weak brand image and lacks strength to maintain brand loyalty  Poor ambience and decor. (Prime space - advertising and promotions)  Wrong site selection – Losses THREAT  Competition with established and International other coffee cafes like Barista, Starbucks, Costa Coffee, Coffee Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café.  Hukka Parlours.
  • Competitor Analysis CCD 54% Barista 26% costa coffee 14% others 6% Market Share CCD 68% Starbucks 12% Gloria Jeans 3% Barista 17% Share of mind
  • Competitors Direct Competitors:  Barista  Cafe Mocha  Costa Coffee  Beyond Coffee  Gloria Jeans  Minerva Coffee Shop Indirect Competitors:  McDonald  Haldirams Global Competitors:  Star Bucks
  • Easy sourcing of coffee beans Cost control because of Govt regulations Political Economic Social Technological Legal Heavy coffee drinks in South India Cheaper sourcing maintain quality Targets youth and middle class Affordable for a meeting place Wifi facility at every outlets and music Digital Marketing for promotions Environmental PESTAL Use Bio degradable products Ethical and based on customer delight Less consumer complaints and quick customer service
  • 7 P’s of SERVICE MARKETING PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDE PEOPLE PROCESS
  • SERVICE PRODUCT Core Product  Experience Supplementary services  Wide range  Merchandising  Ambience Delivery  Hospitality (Lounge & Square)  Price of the product
  • SERVICE FLOWER Facilitating Services  Information - Menu - Website  Payment - Credit Card - Cash - Privilege Card  Billing - at the counter  Order Taking - Assisted by the attendee Information Payment Billing Order –taking
  • SERVICE FLOWER Enhancing Services  Consultation - Assistance  Hospitality - Food & Beverage - Music - Wi-Fi - Washrooms  Safekeeping - Credit Card Security - Parking  Expectations - Happy Hours - Privilege Cards Safekeeping Hospitality Expectations Consultation
  • PRODUCT PORTFOLIO Food and Beverage Non Food Items B2B Food Beverage Deserts Coffee Coffee Powder Bulk/ Corporate Orders Snacks Tea Coffee Machine Catering Services Cakes Chocolate Shakes Cups & Mugs Coffee Vending Machines Sundaes Frappe Chocolate and cookies Advertising Space Heavy Foods (in Lounges) Fruit Shakes & Lemonades Apparel & Accessories Gift Cards & Vouchers Product Mix Width Product Line Length
  • SERVICE MARKETING MIX OF CAFÉ COFFEE DAY PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDE PEOPLE PROCESS
  • PRICING STRATEGY  PSYCHOLOGY PRICING – Pricing the product as Rs 69, 79, 59 etc. rather than in the multiples of ten to give a feel that the product less priced  LOCATION PRICING: On the basis of outlets, prices have been positioned • Café • Lounge • Square  COMBO PRICING – Clubbing up two or more products on special occasions
  • PRICING STRATEGY  PREMIUMS PRICING – Adding things like cream, chocolate sauce and positioning as a premium coffees  VALUE BASED PRICING – Providing different variants in terms of prices by altering the quantity to give a sense of affordability
  • SERVICE MARKETING MIX OF CAFÉ COFFEE DAY PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDE PEOPLE PROCESS
  •  Strategically located outlets  Kiosks in offices  Coffee machines in college canteens Types of Stores Café Coffee Day The Lounge The Square PLACE
  • Café Coffee Day Store Coffee parlors where people can enjoy the coffee have eatables and hangout with friends Café Coffee Day Square A unique Café where variety of single origin coffee brews from coffee- growing countries are available Café Coffee Day Lounge Premium café from Café coffee day target selected group
  • SERVICE MARKETING MIX OF CAFÉ COFFEE DAY PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDE PEOPLE PROCESS
  •  Started TVC and Print campaign at the end of 2012  Co Branding in Movie and TV serials  Sales Promotion Activities – Combo Deal – Happy Hours – Privilege cards – Redeemable coupons  Through Interactive Media  Held Contest around a Very Popular Programme  Tie up lot of youth brands PROMOTION
  • WITH THE FOOD: SIDE MENU CARD
  •  Contests have been activated through leaflets/contest forms given out with the menu-card /bill folders  Drop boxes, which also add to prominent visibility, are used to collect all entries to the contest CONTESTS @ CAFES
  • ON THE WALL The most imposing branding option within a cafe for visual communication with minimal amount of text
  • Tent Cards are the chosen element in the cafes since they are all about “I am here, you cant miss me” ON THE TABLE: STICKERS & TENT CARDS
  • EDITORIAL COVERAGE
  • SERVICE MARKETING MIX OF CAFÉ COFFEE DAY PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDENCE PEOPLE PROCESS
  • PHYSICAL EVIDENCE  Ambience – Different ambience the look and feel for different outlets  Shop Colour – Violet for Café coffee day shops – Sea green for Lounge – Brown for Square
  • SERVICE MARKETING MIX OF CAFÉ COFFEE DAY PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDE PEOPLE PROCESS
  • PEOPLE  Dressed in a particular uniform  Soft spoken, friendly behaviour  Customer Engagement Activities – Special Offers on Occasions (Birthday, Valentine day, Friendship day etc.) – Online Contests – Happy Hours
  • SERVICE MARKETING MIX OF CAFÉ COFFEE DAY PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDE PEOPLE PROCESS
  • PROCESS  People Processing Services  Minimum Response Time  Complaints and feedback  Assisted by the attendee or the brew master in Lounge and Square  Self Service Counter for Café Coffee Day outlets in Offices / few Malls.  Ordering and delivery earlier was self service and now most of the coffee shops have waiters to take order and deliver at the table
  • BLUEPRINT FOR SERVICE DELIVERY
  • Delivers the order Data entry SU P P O R T P R O C ES S C O N TA C T P ER SO N (B a ck S ta g e) (O n S ta g e) C U ST O M ER P H YS IC A L EV ID EN C E Prepares Food / Drinks Informs about the order placed Customer Arrives at CCD Customer walks -in Line of interaction Line of visibility Line of internal interaction CCD exteriors Views Menu card Goes to the table Furniture CCD interiors Ambience Interior design CCD boy/girl Menu Places order Sits Chats Waits Makes the payment Leaves Requests for bill Greeted by CCD boy/girl Takes order Order received Eats Receives Food/Drink Accepts request Hands over the bill to the customer Bill generated Billing system Processes bill Delivery Tray Food & drinks Exit way CCD exteriors CCD boy/girl PROCESS AT CCD
  • CHARACTERISTICS OF SERVICES  Intangibility – Experience – Taste of Coffee  Inseparability – Service provided  Perishability – Availability of tables  Heterogeneity – Ambience of different outlets
  •  Easy accessibility There is a Cafe Coffee Day outlet in every major city in India and are easily accessible.  Rural area locations Customers in the smaller communities also enjoy good quality coffee and snacks at affordable costs because the Cafe has set up outlets in the rural areas in India.  Distributors The coffee produced on the Cafe’s farms, are distributed through wholesalers and retailers to customers who wish to use the coffee at home. DISTRIBUTION CHANNEL STRATEGY
  • FOCUS STRATEGY ANALYSIS Service focused Café Coffee Day Premium Cafes (Lounges) Unfocused CCD cafe outlets Fully focused Café Coffee Day Square – an exclusive coffee bar Market focused CCD Xpress (Kiosk) Wide Narrow Many Few Service Offerings N o . o f M ar ke t Se rv ed
  • Porters Five Forces Industry Rivalry (HIGH) Threat of new entrants (LOW) Threat of Substitutes (HIGH) Supplier's Power (LOW) Buyer‘s Power (HIGH)
  • SPANCO - Tangible / Intangible (CCD) S - Suspect / Security – All Customer who wants to eat snacks Or have a peaceful Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy food and drinks. P - Prospect / Profit – All college /school going Students, Kitty goings groups and business customers. Same price as other notable brand Better taste and crispness Value for Money A - Approach / Analysis -Analysis Research and customer focused studies on what Indian customers looking for hot and cold drinks in peaceful good environment. Wished to taste new & innovative products Unique freshness flavour N - Negotiation / Number Strategy - Change the product Unique Selling Proposition Offer reasonably good prices quality product and services. Coffee / tea variants High price & high volume Other Varieties (cold drinks and snacks) Low price & high volume C - Closing / Core need– Offer good services and quality product. Clear cut differentiated product Existing network of distribution
  • Recommendations 1. To improve the interiors and décor. 2. To have more and more tie-ups. 3. Only 50 % or less than 50 % people find Café Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Café Coffee Day need to do lot of homework in order to satisfy its customers. 4. It should introduce a feedback form system in order to know about the customers satisfaction level.
  • PARTNERS
  • Conclusion 1. C.C.D. is the fastest growing Café in the country. 2. The major competitor undoubtedly Barista. 3. That Café Coffee day is planning to go international. 4. The other major things regarding service marketing is that customers give top priority to the quality of the services / products and ambience. 5. It is providing tough competition to its competitors by satisfying its customers with great café experience. 6. ―A lot can happen over coffee‖ message has touched the hearts of youngsters who are the largest consumers of C.C.D.
  • ANY QUESTIONS ?
  • References  Personal experiences  http://www.casestudyinc.com/coffee-day-brand-strategy-india  http://www.pr-inside.com/india-food-and-drink-report-q- r2164244.htm  http://en.wikipedia.org/wiki/Marketing  http://www.cafecoffeeday.com/  http://www.barista.co.in/users/index.aspx  www.slideshare.com http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.casestudyinc.com/coffee-day-brand-strategy-india http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm 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 http://www.slideshare.com/
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