Presentation

On
Café Coffee Day

By
Nailesh Jacob
09020242012
• Café Coffee Day (CCD) pioneered the café concept in India in
1996 by opening its first café at Brigade Road in Bangalore.

• 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.
• Mr V Siddhartha , a coffee planter started Coffee day as an
extension of his plantation business .
Holding Company
ABCTCL was the holding company until recently . It has been restructured
and the coffee plantations have been hived off into a separate subsidiary .
CCD is now under Coffee Day Holdings under which also falls Coffee
Day Hotels , Tanglin Development – a real estate firm , Way2Wealth – a
retail broking firm , Global Technology Ventures – a venture capital firm
Ownership 75 % - owned by Coffee Day Holdings
25 % - owned by a group of private equity investors –
Sequoia Capital , Deutsche Bank , Darby Investment & J P Morgan .
POSITIONING

Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India.

CCD saw a latent market in youngsters, who were increasingly looking for a place to spend
time with friends and have fun.

In 2002, Café Coffee Day underwent a rebranding exercise through a change in its logo .
The earlier logo was a simple red square with a white streak running across, and ‘Coffee
Day’ written at the bottom .

.
LOGOS

Old Logo

New Logo
Retail Formats

Coffee Day Express (341 Coffee Day Kiosks)

Coffee Day Fresh n Ground (354 Coffee Bean & Powder Retail Outlets)
Coffee Day Take Away (7000 Vending Machines.)

Services Offered
Cafes – Bistros & Full Service Cafes
Coffee Powder Retailing
Souvenirs & Collectibles
Signature Coffee
Mugs

Aura – Scented Candle

Dark Forest Coffee
Powder

Double Choco Chip Cookies

 Café Coffee Day is known to experiment with different café formats.
They have been:

• Music cafés - Juke boxes & matching themes .

• Books cafés – Tieup with English Book Depot .

• Highway cafés

• Garden cafés

• Cyber cafés

The most recent addition has been lounge cafes. These cater to a more
niche segment than the general consumer segment of CCD. The age
group of 20-29 would be more able to afford a lounge setting than the
group of 15-19.

Other Formats in the pipeline - Sports cafes , Singles cafes & Fashion
cafes .
ADVERTISING, SALES PROMOTION AND SEGMENTATION STRATEGY
Café Coffee Day does not look at mass media as a viable area of advertising or marketing spend.
CCD is advertised through barter deals with other brands for ground events .

BELOW-THE-LINE ACTIVITIES : 

• 2003- Levi’s launched a new range of Low Rise - ‘6” below’.

• 2004- Launch of Liril Orange soap

2008 - Gitanjali Jewellery “Pour out ur Heart Contest “

• 2007- Tvs Scooty – CCD tieup

• 2008- CCD was the official ground partner for the Channel V Get
Gorgeous contest .

2009 – Himalaya Honey Campaign

 
IN-FILM ADVERTISEMENTS:

• Hindi films- It started with Bas Yun Hi and then conscious advertisement
decisions were made for Khakee, Main Hoon Na, Kyun Ho Gaya Na and
Mujhse Shaadi Karoge.
SALES PROMOTIONS:

• Merchandising - Every CCD stocks merchandise ranging from coffee

mugs, Tshirts , caps, bags, coffee filters, mints, different flavours of
coffee powders, tea and cream, wafers and biscottis. It also
merchandises promotional materials for other brands it associates with.

• CCD’s Guide to Active Holidays- Travel Guide .

• Café Beat- An in-house magazine which gives the entire low-down on
what’s happening in CCD outlets across the world. Around 38% of CCD goers
read Café Beat and some carry it back with them.

• CCD has now tied up with WorldSpace and Microsense to provide satellite
radio & wifi respectively .
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.

CCD seeks to target not just the youth but anyone who is “young at heart”.

Brand Equity's Most Trusted Brands 2008 survey. - In the food services
category, CCD ranks No 2

McDonald’s stands at No. 3

Barista lags at No 5
Product Analysis

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 pina 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.

Café Coffee Day has changed its interiors twice since inception.

First in 2002 – Big wall mounts of coffee experiences, yellow chairs and
marble tables .

Next in 2006 - Casual feel Décor .

Generic Competition

DIRECT COMPETITORS:

• Barista- This is the closest competitor to Café Coffee Day in the Indian
market.. But Barista is often viewed as a place to unwind after a hard day’s
work or an ideal setting for a business meeting .

• Café Mocha- This aims at providing a level of experience to the consumer

which is hard to imitate.. Mocha calls itself ‘a coffee shop for the soul’.

• Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in

South India.
INDIRECT COMPETITORS:

• Eateries like McDonald’s and Haldiram’s pose competition to CCD as they

are likely attractions for a consumer to be drawn to .

• Local tea joints and coffee shops like Café Nescafe , United Coffee House
(New Delhi ) .
GLOBAL COMPETITORS:

• Starbucks is planning to enter India shortly and would be stiff competition

for even an established brand like CCD.

• 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
COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY

• • Café Coffee Day which follows a backward integration of the value

chain procures coffee beans from its base in Bangalore.
• High Quality
• Unhindered Suppy

• 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.
• 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.

• 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
( First Mover Advantage ) .

• The positioning of the brand – A hangout place rather than just another
Coffee Shop .
MARKET EXPANSION

Recently, Café Coffee Day entered a tie-up with the Ginger hotels of the Taj..
The outlet would e open to all, and not just the hotel's guests.

Symbiotic Relation - 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.

Another model which CCD has adapted is to be present in educational

institutions and corporate campuses either in the form of detailed Cafes or in
it’s economical avatar - CCD Express.
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 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.
Latest Buzz !!!!!!!!!

Global private equity players Stanchart Private Equity & Temasek have
joined the race with KKR to invest $ 100 – 150 million (465- 700 crore ) in
Coffee Day Holdings .

CCD also plans to setup more full service bistros which charge a premium
like the one at Khan Market , New Delhi .