Assignment on the

cafe
coffee day (CCD)
Submitted to: Submitted by:
Pardeep Singla Manoj Singla
(Faculty) M0923

Cafe coffee day

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Introduction:
Café Coffee Day, India’s favourite coffee shop where the
young at heart unwind. We’re a division of India’s largest coffee conglomerate, the
Amalgamated Bean Coffee Trading Company Limited (ABCTCL). Popularly known as
Coffee Day, 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, 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.

History of coffee cafe day

About 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. 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. 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.

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Our Divisions
 Coffee Day Fresh ‘n Ground.
 Coffee Day Xpress.
 Coffee Day Take Away
 Coffee Day Exports
 Coffee Day Perfect

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

Our Vision

New cafes are planned across Middle East, Eastern

Europe, Eurasia, Egypt and South East Asia in the
near future.

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Achievements
Cafe Coffee Day has been awarded as the
Best Coffee Bar in Ahmadabad by Times Food Guide for
the 3rd Consecutive year.

Café Coffee Day takes top honours at Coca Cola Golden Spoon
Awards 2010

 CCD bags the ‘Best Coffee Bar’ title for the 3rd consecutive year.
 Café Coffee Day takes top honours at Coca Cola Golden Spoon Awards
2010
 Stimulating beverages to keep you warm during the Winter
 SaReGaMaPa over a cup of Coffee …

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  CCD opens its second café outlet at Badnera Road
 Friendship Day release July 09
 Combo Carnival at CDS April 09
 Shadows Menu launch January 2009

Food:
a.) Small eats

Chicken Hot Dog...

Choco brownie
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Chocó doughnut

Cookies

Mocha muffin su...

Veg samosa

b.) Big eats:

Chicken burger

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Chicken salad s...

Garden salad SA...

Spinach corn SA...

Veg burger

Zingy pizza san...

Zingy pizza san...

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 c.) SWEET EATS

Carrot nut cake

Chocó black for...

Chocolate fanta...

Mystery mousse

Sizzles dazzle b...

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 d.) Sundaes

Choc hola

Chocolate ice c...

Cookie medley

Dark-passion

Fruity bliss

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Mocha Chocó Del...

Vanilla Ice Cre...

Beverages:

Hot coffees

Cold coffee

Hoteas

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Frosteas

Choco-lattes

Fruiteazers

SALES PROMOTIONS:
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 Merchandising-
Every
CCD stocks merchandise ranging from coffee mugs,
T-shirts, caps, bags, coffee filters, mints, different
flavours of coffee powders, tea and cream, wafers
and biscotti’s. It also merchandises promotional
materials for other brands it associates with. When
some brands are conducting events for which passes
are distributed or movie premiere tickets are given
out, CCD is an important hub for these activities as
most of the
target market. CCD’s Guide to Active Holidays- It is a travel guide focusing on
adventure sports and is available in the CCD outlets, for people seeking
escapade from monotonous life. Cafe Beat- An in-house magazine which gives
the entire low-down on what’s
happening in CCD outlets across the world. It describes experiences of
customers, celebrations in CCDs, and covers youth-centric topics like movies,
music, travel, lifestyle, e-dating, books and careers. Around 38% of CCD goers
read Café Beat and some carry it back with them. CCD has now tied up with
World Space and Micro sense to provide satellite connectivity in its outlets.

Contest and offers:

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Grab the ‘City-Hopper’ coupon from the
CCD at departure terminal, which entitles
you to a 15% discount anywhere in India except
your city of origin.

SEGMENTATION STRATEGY:
Café Coffee Day has its main consumer base in the age group of 15-
29 years. Its customers are mainly middle class and upper middle class youth who are upwardly
mobile. From the market, CCD seeks to target not just the youth but anyone who is “young at heart”.
More than 10% of their customers are above 35 years of age. The evidence of the connect CCD has
been able to make, particularly among the youth, comes from the findings of Brand Equity's Most

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Trusted Brands 2008 survey. In the food services category, CCD ranks No 2, while McDonald’s
stands at No. 3 and Barista lags at No 5. The graph below indicates official figures for the type of
consumers of CCD. We can clearly see that its most profitable segment is the 20-24 age brackets.
These customers can afford to visit CCD on a regular basis and have a habit-forming attitude towards
CCD.

Coffee Gyan
 Want a ‘bite’ of coffee? Yes, Legend has it that in the early days, Coffee was eaten.
Tribes in Africa used to mix coffee berries with fat which formed edible ‘Energy
Balls’ and ate them.
 Coffee is one of the most popular beverages today, thanks to Islam. Back in the
days, the religion prohibited drinking alcohol, but coffee was considered an
acceptable drink.
 Clothes not fitting? Wear a ‘Bean’ belt: All coffee in the world grows in the bean
belt. It is the area between the Tropics of Cancer and Capricorn.
 Coffee comes from the root of a plant. Just Kidding! Coffee actually grows on trees
that can grow up to 30 feet tall. However, they are cultivated to be about 10 feet tall
for easy picking.
 George Washington invented Instant Coffee! A Belgian man with the name 
George Constant Louis Washington invented Instant Coffee in 1906
 Ess-press-O: Unlike how it’s used now, Espresso is just a way that coffee is
prepared. That is, by shooting pressurized hot water through finely ground coffee.
 Americano: The term ‘Americano’ comes from American GIs during WWII. They
would order order espresso with water to dilute the strong flavour.

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pg. 15
PRODUCT ANALYSIS

Café Coffee Day has different café

formats across different cities. They
can be categorized into Music
Cafés, Book Cafés, Highway cafés, Lounge cafés, Garden cafés,
and Cyber cafés. Every format has a different feel to it.
Also, Café Coffee Day changes or makes fresh additions to its
menu from time to time. This includes having specialty coffees
from different countries, exotic desserts and pine coladas. Since
the target consumer is of an age where one constantly seeks
change, this makes sure that the consumer does not get bored
with a repetitive style and seeks new places to go to.

Swot analyses
Strength:
o Products of extremely good quality and taste.
o It’s a youth oriented brand, hence huge potential since 40 % population is
below 20
o It produces/grows the coffee it serves hence reducing the cost.
o USP of brand is its considered a highly affordable brand.
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Weakness:
o Weak brand image and lacks strength to maintain brand loyalty
o Poor ambience and decor. CCD outlet served prime space for advertising
and promotions
o Many of the CCD stores are incurring losses due to wrong site selection.

Opportunities:
o Coffee cafe industry is one of the fastest growing industries in Asia.
o More people like to visit CCD for informal meetings.
o CCD 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.
Other hukka parlours like Sheshas, Peshawar, Koylas, and U Turn are also gaining lot of
attention and preferred by young generation to hang around which in turn is attracting the
market captivated by CCD.

GENERIC COMPETITION
DIRECT COMPETITORS:
o Barista- This is the closest competitor to Café Coffee Day in the Indian market. They
target the same class of upwardly mobile youth and young professionals. But Barista
is often viewed as a place to unwind after a hard day’s work or an ideal setting for
some business meetings.
o Café Mocha- This aims at providing a level of experience to the consumer which is
hard to imitate. Inspired by Morocco and Turkey, Mocha offers not just coffee but
also sheeshas from Egypt and gourmet desserts. Mocha calls itself ‘a coffee shop for
the soul’.
o Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in South India.

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INDIRECT COMPETITORS:
o Eateries like McDonald’s and Haldiram’s pose competition to CCD as they are
likely attractions for a consumer to be drawn to. A consumer can well contemplate
why he should spend around Rs. 45 on a coffee when he can get a burger and a coffee
for the same price at McDonald’s.
o Local tea joints and coffee shops like Café Nescafe- They are smaller places but
nevertheless target the same set of consumers. Hence, CCD has to consider the threat
a shop like this could pose to it.

GLOBAL COMPETITORS:
o Starbucks is planning to enter India shortly and would be stiff

competition for even an established brand like CCD.

o Coffee bars in the market of the other country that Café Coffee Day is

entering is also be a factor CCD will have to plan for before entering a
market

DISTRIBUTION STRATEGY
Today CCD has the largest network of cafes in India, with over 607 ‘Company
Owned Company Operated’ cafes across 198 cities. But they do not follow a
franchising strategy. The channel partner has no involvement in the daily
operational activities of the Café in the retail space. Neither would he have to
invest in operational capital equipment or branding or marketing and promotion
of Café Coffee Day.
CCD opted not to follow forward integration and outsourced its distribution
responsibility to other parties in 2003. As its reach spreads across India and it is
now exploring smaller towns, CCD would find it more expensive to maintain on
its own. The private players would procure raw materials like sugar and paper
cups but coffee beans would still come from Bangalore.
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COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY

o Café Coffee Day which follows a backward integration of the value chain
procures coffee beans from its base in Bangalore. This gives it a high
sense of quality assurance and guaranteed supply across its outlets as the
same raw material is used in all outlets. But Barista is a combination of
imported coffee beans and beans from Tata coffee. This is a relative
disadvantage because if there is a discrepancy in the quality or supply,
Barista would have to consider alternatives and probably look for another
supplier.
o Similarly, the food items available in Café Coffee Day are obtained from
local suppliers whereas Barista’s food is catered by the taj caterers. Café
Coffee Day would hence, have a lower-cost advantage.
o The brand strength of Café Coffee Day in comparison to Qwicky’s and
Café Nescafe is far greater and its reach is on a countrywide scale. A
consumer travelling across cities would not find it too difficult to seek a
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 Café Coffee Day outlet instead of deciding on trying a Qwicky’s, which
he is not accustomed to.
o Café Coffee Day has an advantage of top-of-mind recall for coffee-shop-
goers in India, especially because it set the café ball rolling in the
country.
o It is a place where a lot of young people can meet, chat, have fun and let
their hair down, rather than sit and sip a cup of coffee in prim and proper
serenity. This is one of the main factors for why it is chosen over places
like Barista or Mocha.

MARKET EXPANSION
Recently, Café Coffee Day entered a tie-up with
the Ginger hotels of the Taj. This caters to business executives and is
on a Smart basics’ platform. The outlet would be open to all, and not
just the hotel's guests. The aim is to increase footfalls in Ginger and
increase the reach of Café Coffee Day. This way, CCD can reach out
to another set of consumers, apart from the young crowd it has mainly
catered to.

SUMMARY
Café Coffee Day is now looking at more café formats to
try in new outlets. They are planning on having sports cafes, singles’
cafes and fashion cafes. Also, CCD is planning on opening more
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lounge cafes across the country. Like it did with Ginger hotels, CCD
can also try and find consumer segments which it did not earlier think
of catering to.

Observation
After the study of this beautiful retail chain coffee cafe day (CCD). I
observe that basically it deals only in metro cities or in several towns.
CCD should be proceeding for the rural area also by making the cup
of tea not only the coffee or other drinks. It will give more business to
the company. And who never hared about this they will become new
customer for the company. It will be more beneficial for the company.
It will give sound growth to the business.

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