Preface

The objective of the thesis is To compare and study Barista & Caf Coffee Day, identify areas of excellence and areas needing improvement; and provide suggestions for such improvement. The aim of this Thesis is to successfully compare two prominent service sector companies on a common platform, analyze their working and performance, and highlight what they are doing well, while providing suggestions and recommendations for improvement. Barista and Caf Coffee Day were chosen because of their identical pattern of functioning and growth. They are the only two major players in the national coffee caf industry, and their customers consider both as interchangeable brands. This is why it is important to study how these brands differentiate themselves from each other, and attempt to improve brand loyalty amongst their customers. For the purpose of this study, I prepared 2 research tools, both questionnaire, to find out the relevant primary data pertaining to the functioning and working of both Barista and Caf Coffee Day.

Coffee is a beverage that puts one to sleep when not drank. ~Alphonse Allais Coffee smells like freshly ground heaven. ~Jessi Lane Adams A fig for partridges and quails, ye dainties I know nothing of ye; But on the highest mount in Wales Would choose in peace to drink my coffee. ~Jonathon Swift

BARISTA VS CAF COFFEE DAY

A COMPARATIVE STUDY

Black as the devil, Hot as hell, Pure as an angel, Sweet as love. That is WE called as coffee

AUTHORS Coffee, which makes the politicians wise, And see through all things with his half-shut eyes. ~Alexander Pope

I never drink coffee at lunch. I find it keeps me awake for the afternoon. ~Ronald Reagan This coffee tastes like mud! Well, it was ground this morning. I don't have a problem with caffeine. I have a problem without caffeine! Everybody should believe in something. WE believe WE will have another PROJECT like this in coffee.

Executive Summary Indian consumer is a very interesting entity. The consumer in India is as heterogeneous as the country itself is. The urban consumer contrasts with the rural and the South Indian consumer with the North Indian. Further still, the consumer in the metros militates with his usage and habit patterns. The Indian consumer, is therefore very difficult to understand and very difficult to predict. Tea and Coffee are the favourite drink in India especially tea. A quiet cafe revolution is sweeping urban India with the explosion of coffee bars. That is bad news for tea - still the favourite brew for a majority of Indians -, which has been losing out to coffee in recent years.

India is one of the world's largest exporters of tea and one of its biggest consumers. However, it is coffee drinking which is increasingly becoming a statement of young and upwardly mobile Indians. Moreover, coffee bars, an unheard of concept until a couple of years ago, are suddenly big business. Coffee is slowly but surely substituting tea. There is also rise in the consumption of coffee. The specialty coffee movement has gained much of its momentum through the efforts of companies like Barista, Caf Coffee Day and Starbucks. In India CAF COFFEE DAY and BARISTA are the most popular and well-known cafs. The college crowd rates them as one of the coolest hangouts. These companies sell similar product but their positioning and target audience are very different from each other. These players not only sell coffee and tea but also food and other merchandise items. Despite of serving to different audience, these players compete with themselves. Each player fights for its own share of market. They try to differentiate themselves by the way of product or price or promotion. However, they are also facing the competition from the foreign players like Georgia, Starbucks etc. It would be interesting to see how the companies differentiate and maintain their share in the market.

History of company CAF COFFEE DAY

Caf Coffee Day is a chain of coffee shops in India having it's head quarters in Chikkamagaluru, Karnataka. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India - with 800 cafes in 112 cities. Headquartered in Bangalore, a majority of its cafes are also located in Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It has even tied up with World Space and Micro sense to enable its cafes with satellite radio and WiFi, respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore. Cafe Coffee Day sources coffee from 10000 acres (40 km) 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 Indias leading coffee exporters, with clients across the USA, Middle East Europe and Japan. With its roots in Chickmagalur, the home of some of the best Indian coffees, Coffee Day has its business spanning the entire value chain of coffee consumption in India. Its different divisions include: Coffee Day Fresh 'n' Ground (which owns 450 coffee bean and powder retail outlets), Coffee Day Xpress (which owns 730 Coffee Day kiosks), Coffee Day Takeaway (which owns 9000 vending machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. It is entering the European market by opening two Caffes at Austria as well, making forays into Pakistan, and Germany to set up cafes abroad. The strategy CCD has adapted is to place a cafe in every possible location where some business can be generated. So in Bangalore, in the main shopping district, there are 6 outlets in a 2 km radius and over all 120 cafes in Bangalore alone. Another model which CCD has adapted is to be present in educational institutions and corporate campuses either in the form of detailed Cafes or its economical model of CCD express.

These innovative strategies have ensured that the competition is at bay and ensured CCD's dominance in the Indian market though many of its outlets are incurring losses. Another model which CCD has adapted is to be present in educational institutions and corporate campuses either in the form of detailed cafes or its economical model of CCD express. These innovative strategies have ensured that the competition is at bay and ensured CCD's dominance in the Indian market though many of its outlets are incurring losses. Cafe Coffee Day competitors include but are not limited to

Caf 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 Indias leading coffee exporters with clients across USA, Europe & Japan. With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning the entire value chain of coffee consumption in India. Its different divisions include: 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. Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf at Brigade Road in Bangalore. Till about the late 1990s 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 caf culture in neighboring 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, Caf Coffee Day embarked on a dynamic journey to become a large organized retail caf chain with a distinct brand identity of its own. From a handful of cafs in six cites in the first 5 years, CCD has become Indias largest and premier retail chain of cafes with 858 cafes in 134 cities around the country. Enthused by the success of offering a world-class coffee experience, CCD has opened a Caf 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.

A) Origin
A traditional family owned a few acres of coffee estates, which yielded the rich coffee beans in the soil of Chikmagalur, However they soon amalgamated with Bean Coffee Trading Company Limited, now popularly known as Coffee Day. The coffee growing tradition was since 1875, but the opportunity after the deregulation of the coffee board in the early nineties. Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan. In the calendar year 2000, Coffee Day exported more than 27000 tonnes of coffee valued at US$ 60 m to these countries and, for the second time in its short career of 7 years retained the position as the largest coffee exporter of India.

B) About Coffee Day

Coffee Day has a wide and professional network in the major coffee growing areas of the country comprising over 50 agents and 50 collecting depots. Coffee Day's two curing works at Chikmagalur and Hassan cure over 70,000 tonnes of coffee per annum, the largest in the country. Coffee Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The process is carried out under the control of experienced personnel to meet highest quality standards. The most modern technology available is used to maintain consistency and roast the coffee beans to the demanding specifications of the discerning coffee consumers.

Key Features: 125 years of coffee growing history A fully equipped ISO certified roasting plant with a 70000 tonnes per annum capacity at Hassan 5000 acres of self owned Coffee Plantations A ready and enviable base of more than 10000 suppliers Among the top exporters of coffee in India (Coffee Day Exports)

Coffee Day Comprises of the following Sub Brands Coffee Day - Fresh & Ground Caf Coffee Day

Coffee Day Vending Coffee Day Xpress Coffee Day Exports Coffee Day Perfect
Actually, this seems to be the basic need of the human heart in nearly every great crisis - a good hot cup of coffee.

C) Introduction
Caf Coffee Day currently owns and operates 169 cafes in all major cities in India. It is a part of India's largest coffee company named Coffee Day, ISO 9002 certified company. Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. Cafe Coffee Day's vending machines have a special niche in the market compared to competitors because Cafe Coffee Day machines offer filter coffee unlike the instant coffee offered by competitors' brands. Growing from a coffee exporter to a coffee parlour, caf coffee day has certainly come a long way in this segment.

The Coffee Caf Industry

The Coffee Caf industry is currently one of the biggest and fastest growing sectors in business. The industry consists of a mix of individual cafs, hotel cafs and retail caf chains. Individual Cafs: The main bulk of revenue is earned by small, individual cafs, run mostly by families and friends. It is a relatively unorganized sector.

There are millions of such cafs around the world, and they provide customers with a homely, casual experience. The bulk of these cafs are mainly in Europe, where every little town or village has local cafs, where people gather together for a conversation over coffee, or just to be alone with their thoughts.

Diagram Individual Cafs These cafs have been the birthplace and sanctuary for various creative minds, revolutionaries and thinkers of our time. The most recent example is the author J.K. Rowling, who has written most of the Harry Potter series of books, sitting at her local caf. These cafs set themselves apart from retail chain cafs and hotel cafs because they provide customers with a homely, classic appeal, which cannot be emulated. Hotel Cafs: Ever since the popularization of coffee, hotels all over the world started opening 24-hour coffee shops where visitors to the hotel could walk in for a cup of coffee and some food at any time. These coffeehouses are extremely important, because they provide international visitors to the hotel with a universal drink- coffee. Any customer can walk into any major hotel in the world, and enter the coffeehouse, and know what to expect. These cafs are not really major players in the coffee caf industry, but rather provide supplementary services to the hotel industry.

Diagram Hotel Cafs Retail Caf Chains:

The last, and the most organized sector in the coffee caf industry, is the retail caf chain. Off late, these chains have become extremely popular and are growing at an ever-increasing pace. These retail chains have work with an organized structure of man, material and money. The work on developing a recognized brand consistent to all their outlets, which customers can easily relate to, wherever they go. They provide customers with a standardized level of service and quality at each of their outlets. The vast popularity of these retail chains is shown in the rapid international growth of brands like Starbucks. Customers can do to any Starbucks across the world and know exactly what to expect. The main focus of my project is on two nationally recognized retail caf chains: Barista & Caf Coffee Day.

Diagram A popular Retail Caf Chain logo

Growth of Caf Industry in India

Hot beverages have always been a part of the tradition of India, especially South India. Coffee took the first seat in South India when the traditional Brahmin classes brought down the beverage from the ruling British around the 1930s. During the early years the drink was confined only to traditional rich Brahmin families who served filter coffee in davra- tumbler. Coffee is no more confined to the rich Brahmin class now, though the tradition of serving filter coffee in the davra- tumbler continues to this day.

In order to spread the drink, coffee houses emerged at various places in the country, which also served as the opposite places for lawyers and the educated class to hold discussions ranging from politics to cinema. It is also believed that many scripts and ideas for films evolved here. One of the oldest coffee houses in South India is the Raayars mess, Chennai, which serves first class filter coffee even today. The mess was established in the 1940s and continues the tradition of coffee but supplements it with tiffin also. The vintage location of the mess attracts huge crowds even today early in the mornings, Coffee however was not the only item on the menu. These places also served food and other drinks to their customers. The drink also became famous and as a result even five star hotels began cashing in on it. Several hotels all over the country started opening coffee- shops that catered to high- end customers. This showed the popularization of coffee cafs, to all sections of society. The drink has now become more of a concept than merely a drink itself. The last decade witnesses the growth of numerous coffee pubs in the country. A number of coffee caf owners tried to westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista, and Caf Coffee Day have opened up around the country. The concept of a caf today is not merely about selling coffee, but about developing a national brand. Retail cafs now form a multi- crore industry in the country, and have huge potential for growth locally, and internationally.These cafs form the main focus of this project.

Food & Beverages Market In India

India ranks first in the world in production of cereals, livestock population and milk. It is the second largest fruit and vegetable producer and is among the top five producers of Rice, Wheat, Groundnuts, Tea, Coffee, Tobacco, Spices, Sugar, and Oilseeds, yet Indias share in international food trade is a minuscule 1.5%. Value addition to foods by processing is a mere 8% of total production.

Organized food retailing industry is still at infancy stage with share less than 1 per cent of food retail market size in India.

Do I like my coffee black? There are other colors?

Transition Of Cafes
Coffee remains in the outer periphery of interest in the minds of consumers. Other aggressive beverages like tea and the colas of every hue have a substantially higher degree of interest and of course advertising backing them. Coffee consumption is down in the last four years. From a level of 55,000 tpa, the numbers are down at 52,000 tpa today. Per capita consumption hover around 52 gms. This signifies a measly 10 cups of coffee per Indian per year! Branded coffee consumption is a small percentage of the total. Only

19 per cent are branded and the rest is in loose forms. However, a significant increase in consumption in the branded segment anticipated. This is going to be spurred by the liquid coffee cafes and of course, the inroads foreign brands will make in the domestic market soon. Liquid coffee bars and vending machines are going to spur consumption on in the country for coffee. These are going to be front-ended efforts that will make coffee that much more consumerfriendly and will make the beverage accessible at arms length reach and available at the end of a desire. It is expected to have 60,000 coffee vending machines in the country in the next three years and expect to see at least 4000 Cafes across the country in the next five years. The market for vending products in India is opening up. Towards the end of the review period, with organized retailing coming in, consumers started believing in brand names. Vending products through machines started not only for coffee and tea, but also for soft drinks, chocolate confectionery and magazines, amongst others. The total strength of vending machines in the country is approximately about 60,000 machines by the end of 2004, which includes a large number of unbranded machines too. Coffee pubs and cafes mushroom throughout India, with vending machines also on the rise. Over the review period, there was a mushrooming of coffee pubs and cafes across regions, and across the country as a whole. Coffee chains like Barista, Qwiky's and Cafe

Coffee Day (run by Amalgamated Bean Coffee Trading Co Ltd) have become hugely popular hangouts for Indian cities' young and trendy consumers. The cafes and pubs are not just places where people buy coffee; they also try to sell a certain lifestyle. The chains, with their glitzy interiors and designer furniture, are targeted at urban, uppermiddle-class and rich Indians.

CAF COFFEE DAY VALUES- PRISM

PRIDE - I take pride in my work and in my organization. RESPECT - I respect my customers, my subordinates, my peers and my superiors. INTEGRITY - I will show the highest level of integrity towards my work and my company under all circumstances. SELF - DISCIPLINE - I will imbibe and practice self-discipline in all my daily activities. MOTIVATION - I will always be motivated to give the best for my organization, my team and my customers.

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MISSION STATEMENT

CAF FORMATS Caf Coffee Day has been experimenting with caf formats for quite sometime. Backed by the motivation of providing customers with exciting choices as well as constantly redefining the caf experience, CCD has ventured into the following formats: Music Cafs provide customers with the choice of playing their favourite music tracks on the Digital Audio Jukeboxes installed at

the caf! 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 Cafs offer the perfect solution to people who think that the coffee experience is incomplete without browsing through the bestsellers or reading a classic. CCDs 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 Indias leading book distributors for placement and rotation of reading materials appealing to Caf Coffee Days discerning customers. Highway cafs 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 cafs 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 caf. 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 cafs combine the joy of rejuvenating amidst verdant

landscapes and pots of coffee. Cyber cafs 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! These are of course just milestones. CCD is about to launch Sports Caf, Fashion Caf & Singles Caf.. LOGO For a brand to stand out and be successful there has to be a personal commitment from staff at all levels. The target customers must identify with it. It should be vibrant and have a life of its own. Liveliness, growth, fun and passion depicts our brand, our customers, our staff and our future this is embodied in our design and colour.

Key Features of CAF COFFE DAY Pioneers of the Caf Concept in India with the its first Caf at Brigade Road, Bangalore in 1996. This Caf was opened as a Cyber Caf (first of its kind) but later, with the burst

of cyber cafes it reverted to its core competency. Coffee. Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket Each caf, depending upon its size attracts between 400 and 800 customers daily. It is a place where customers come to rejuvenate themselves and be themselves. USP of the Brand: Affordable Price Coffee Winner of Platinum, Gold, Silver and Bronze medals at the India Barista Championship 2002

Table: Growth of Caf Coffee Day outlets Physical Evidence a) Logo, Colors, Images: Caf Coffee Day has used bright red and green colors in its logo. RED stands for leadership and vitality. It also stands for passion ( for coffee). The GREEN stroke harks back to their coffee growing heritage and the coffee plantations that they own. Caf is noticeably larger than the rest of the text inside the logo box. This denotes that Caf Coffee Day pioneered the caf concept in India way back in 1996. Caf Coffee Day would like to own the word caf in the minds of its customers.

Our LOGO colours embody: Red Square= Leadership, passion

White Swirl = Purity of purpose, invigorating properties of coffee Green Stroke = 125 years of coffee growing heritage of this vertically integrated Group

Diagram The Caf Coffee Day Logo When one thinks of a caf its got to be Caf Coffee Day. The font used for Caf is called SLURRY. The font looks as though the letters have congealed out of a liquid. It gives the impression that the word is still forming itself and evolving into something new and something better constantly. This is the characteristic of Caf Coffee Days customers and this is the characteristic that the brand too wants to adopt. The upward SWIRL inside the logo box stands for the invigorating and uplifting

nature of coffee and the ambience at Caf Coffee Day. Dcor & Architecture: Caf Coffee Day had gone in for image change and revamping of interiors in the last quarter of 2001. Caf interiors have been given a whole, new look. In a change from the largely wood and granite based interiors, there is more of steel and lots more colour now. The young colours of today, lime green, yellow, orange, and purple predominate.

Diagram The Caf Coffee Day Decor Literature: The literature provided by Caf Coffee Day is indicative of its youthful image. The menus, posters, pamphlets are all designed to attract young and young at heart. They also have their magazine called as Caf Beat, which is published monthly at their Bangalore head office and distributed throughout the branches. Locations: Caf Coffee Day looks to cater to their target market with strategically located outlets. Their outlets are generally located in High Street/ Family Entertainment Centers.

Considering their generic appeal, there are Barista outlets located in and around Malls, Cinemas, Colleges, Offices, etc. This endorses their brand image of a caf that appeals to coffee lovers of all ages. Promotion: Caf Coffee Day does not believe in mass media promotions. But they are involved in all the areas of serious consumer passion. Through television: Caf Coffee Day 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 and a lot of youth like watching the programme. That is why they had a contest running where customers could win Friends' merchandise. The linkage was that it is a youth based programme and it had a coffee house. They have tied up with Channel [V]'s Get Gorgeous contest. The reason being that a lot of their young consumers are interested in careers. Modeling is a career that a lot of youngsters are interested in and this was an excellent platform. They have also done promotion for History Channel, where they have run promotion for Hollywood Heroes. They had asked a few question and a lucky winner won a trip to Hollywood. Ticket sales: Caf Coffee Day is involved in ticket sales in quite a few events, Enrique being one of them. They were involved in WWE, Elton John, and Bryan Adams ticket sales. These acts are very much appreciated by their consumers.

It helps both the organizers as well as Caf Coffee Day. Organizers need to tell people where the tickets are available and single Caf Coffee Day logo says it all. From Caf Coffee Days point of view, they always ask for a certain amount of tickets around which they have a contest. Couples can win ticket for free. This in turn raises the awareness level as cafe staff approaches the consumers to inform them about the contest. There is not a better publicity mechanism then the person who is serving you telling you about the same. Sales Promotion: Caf Coffee Day uses special Caf Citizen Card for rewarding Caf Coffee Days customers. It is a loyalty program to gain new customers and retain the existing ones. The Caf Citizens Card entitles members to a 10% discount on all food and beverage bills. The members also receive surprise gifts, along with special offers and invitations from Caf Coffee Day from time- to- time.

Diagram The Caf Citizen Card

Distribution:
Distribution of outlets: Every Caf Coffee Day outlet is a part of Indias largest coffee conglomerate named Coffee Day. Since all the cafes are owned by the company, it becomes easier for them conduct feedback surveys like dipsticks etc. Coffee days most unique aspect is that it grows the coffee it serves in its cafes. Pioneers of the Caf Concept in India with the its first Caf at Brigade Road, Bangalore in 1996. This Caf was opened as a Cyber Caf (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency. Coffee. Caf Coffee Day currently operates 213 outlets all over the country. They have a market presence in over 49 cities. Delhi, NCR alone has 24 outlets, and the number of outlets in the area is increasing at a phenomenal pace. Each caf, depending upon its size attracts between 400 and 800 customers daily. In addition to that they are also going abroad. They will open 50 outlets overseas in 10 cities. Location: This is a prime factor in determining the success of a retail chain. Caf Coffee Day is focusing mainly in malls and main markets.

Distribution of stock:

Table: Caf Coffee Day - Distribution The distribution of coffee beans start from their roasting plant at chikmagalur. The coffee beans are sent to the main offices of north and south India on monthly basis. The outlets contact the Head Distributors on weekly basis. As far as other eatables are concerned, the inventory is checked on daily basis and orders are placed according to the requirement. Caf Coffee Day uses its own store vehicle (small van) for transportation needs. Human Resources With the boost in the number of their retail outlets, Caf Coffee Day had to concentrate on the quality and quantity of their human resource in order to meet up with the set standards. They make sure that the employees all across the country are well trained and provide consistent services at every outlet. Recruitment & Selection:

It is the process of differentiating between applicants in order to identify those with a greater likelihood of success in a job. The role of selection in an organizations effectiveness is crucial for at least two reasons; first work performance depends on individuals and second because of the costs incurred in hiring individuals is enormous for an organization. The best way to improve performance is to hire the people who have the competence and the willingness to work. Arguing from the employees viewpoint poor or inappropriate choice can be demoralizing to the individual concerned and demotivating for the rest of the workforce. The cost of searching and training individual may range from Rs. 2,50,000.or more. Costs of wrong selection are even greater. Selection is a long process commencing from the preliminary interview of the applicant and ending with the contract of employment. The process differs among organizations and between two different jobs within the same organization. Selection procedure for senior managers is long-drawn and rigorous but on the other hand for shop floor workers it is simple and short. EXTERNAL ENVIRONMENT INTERNAL ENVIORNMENT PRELIMINARY INTERVIEW SELECTION TESTS EMPLOYEMENT INTERVIEW REFERNCE AND BACKGROUND ANALYSIS SELECTION DECISION PHYSICAL EXAMINATION JOB OFFER EMPLOYMENT CONTRACT EVALUATION

Table: Caf Coffee Day Selection Process Caf Coffee Day is expanding at a phenomenal rate. Thus the need for right people, in the right place at right time is also increasing. In order to meet the demand for efficient and effective workforce, Caf Coffee Day has adopted the correct recruitment and selection procedures. Sources of recruitment: Caf Coffee Day has different sources for recruitment depending on the job profile in demand. For Team Members the sources are: In store Posters REJECTED APPLICATION Referrals and Walk- ins Recruitment and selection process: For posts of team members the following rounds take place

1.Psychometric tests, Behavioural Intelligence Test, Logical thinking and Comprehension Test. 2. Application blank. 3. Personal Interview, Operations Interview, Regional Manager Interview. For Area Manager: Recruitment and selection process: 1. Collection & review of curriculum vitae 2. Personal interview with Regional HR Manager 3. Personal interview with GM- HR. Training & Development: To ensure consistent employee performance, training and development policies are very important- even more in service sector organizations. Caf Coffee Day has set 12 days rigorous training procedure at their office in Bangalore for all the assistant managers. Whereas all the team members undergo a 3 days training at respective head offices in North or South India. Employee working hours: The working hours are split into convenient shifts spread over 8:30 am to 10:30 pm. Night drops are provided for late evening shifts. Employee code of Conduct: After substantial efforts Caf Coffee Day has been able to convey to their staff (the ones who serve food) that they are doing a job and are at par socially with many consumers. Their attitude and communications is kept up to mark. Along with cleaning the table well, their employees communicate with the consumers

on one to one basis. It is a cultural shift; it is a huge responsibility as, in India you do not look at the people serving at your table as your peer Their employees are like friend to the customer but at the same time they know about the international standards of hygiene and cleanliness and personal grooming. Promotion Policy: Caf Coffee Day prefers promoting from within, rather than externally. Performance Appraisal: Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity. The immediate superior carries out the performance appraisal at Caf Coffee Day every 6 months. Employee Turnover & Retention: Caf Coffee Days current rate of Employee Turnover is about 9%. The reason behind this is the people between the age group of 19-24 who do not see their job as permanent means of income. They are not committed towards the organization

AWARDS AND ACCOLADES Cafe Coffee Day was named Food Services Retailer of the Year and Exclusive Brand Retailer of the Year at the 1st ICICI Bank Retail Excellence Awards function in 2005. Cafe Coffee Day was rated the No. 3 food services brand in Business World and Brand Equity surveys in 2004. Cafe Coffee Day was ranked as the 3rd best" Retail F 6t B" chain in India in the Brand Equity survey in 2004. Mr. V.G. Siddhartha, Chairman (Amalgamated Bean Coffee Trading Company Limited) received the " Economic Times - Entrepreneur of the year 2003 "award. Cafe Coffee Day has had a hat trick victory in the India Barista Championship. For 3 years in a row, 2002, 2003, 2004 CCD has won all the top awards and its representative has gone on to represent India at World Barista Championships, winning silver medal in 2002 and 5th place in 2004 for the country.

DEPARTMENTS AT CAF COFFEE DAY

BUSINESS DEVELOPMENT: The team decides upon a suitable site where the cafes can be set up. They identify, shortlist, and finalize a site by negotiating with property owners. A significant effort is involved in getting legal clearences and statutory compliances. After all formalities are completed, the site is handed over to the projects team.

PROJECTS:
The team comprises of some of the best designers who ensure that the coffee culture is spread across the country through beautiful outlets. All new cafes are built with a standardized design and the look of the caf is in sync with the brand positioning. They aim to build cafes in the shortest possible time, at the least possible costs to capital outlay. A recent innovation is the Lounge cafes which are set up in Delhi, Bangalore, Hyderabad and Kolkata.

OPERATIONS: This team achieves their sales objectives and is responsible for the daily running of their cafes in a profitable manner. Customer interaction is very important for this team, as they are the ones who interface with the customer and provide them with a satisfactory service and product experience. Caf managers train all their employees who are involved in day-to-day operations. The caf staff is their brand ambassador. The brand image of caf coffee day is and will be reflected through them by the way they dress, behave and carry themselves , both within the organization and outside. They are the face of the company since they will be the first point of interaction with the customer.

FOOD AND BEVERAGES {F & B}: CCD are a lot more than coffee. Apart from serving the best coffee in the country they also serve a wide assortment of savories and

desserts. The various coffee concoctions that they serve are the creations of their F&B team. They also ensure the highest level of hygiene and food quality. They impart training to the team on the preparation of the best quality of coffees and food at their cafes. The F&B team sources and manages vendors who supply food to the cafes. MARKETING: The marketing team is responsible for the brand positioning and all brand building activities that result in increased sales and greater visibility. They are also responsible for the various sales promotion activities and tie-ups. This team designs and manages the merchandise category, which is displayed and sold at their cafes. They constantly track loyalty programs and promotions at the cafes to help minimize sales. The caf citizen program is a unique customer loyalty tool which helps us to create new customer and retain existing ones by rewarding them with handsome points which can be earned and redeemed at the cafes. HUMAN RESOURCES AND TRAINING: The HR team deals with all matters pertaining to people within their team. They are responsible for recruitment and selection at all levels from team members to the management staff. They are responsible for employee salaries, career development and councelling. Constant efforts are made for employee upgradation in terms of improving skills and job satisfaction to meet the aspirations of all employees. ACCOUNTS:

They look after the day to day accounting and financial activities and also provide them with the financial reports, which will help them, find out the profitability of the outlet. They help them reduce the costs and ensure compliance and fiscal discipline at the cafes. MANAGEMENT INFORMATION SYSTEM: Their function is mainly to update the point of sale software and the caf website and provide MIS reports to aid management. They also look into any other system malfunctioning, repairs, and replacements at cafes and offices. The caf staff is trained on the billing software by this team. Their new initiative is the phased roll out of the Wi Fi point of sales billing system. SUPPLY CHAIN MANAGEMENT: This is the team which ensures that all stock keeping units of items used in the caf are received at stores from vendors and distributed to the cafes on time. They receive store orders and maintain the inventory of stock keping units so that cafes do not run out of critical supplies at any point.

Business development team:

Caf Coffee Day have a department-the business development team- who are in touch with a lot of property owners who are interested in franchising and licensing CCD. They normally take up places on long lease. Company finance CCD is a privately held company. The group turnover is expected to touch about Rs three billion now. It was Rs two and half billion last year.

Advertisement department
The advertisement department tied up with various companies to promote CCD. They also tied up with a channel called Zee English with a ground programme for a popular show called Friends. All the six lead characters were shown often visiting a coffee shop and a lot of youth like watching the programme. That is why they had a contest running where you could win Friends' merchandise. The linkage was that it was that it is a youth based programme and it had a coffee house. They were also involved in a lot of ticket sales in quite a few events, Enrique being one of them. they were involved in WWE, Elton John ticket sales. These acts are very much appreciated by the consumers. The ticket sales is the organisers' benefit. They need to tell people where the tickets are available and single Caf Coffee Day logo says it all. CCD always ask for a certain amount of tickets around which they have a contest. Couples can win ticket for free. This in turn raises the awareness level as cafe staff approaches the consumers to inform them about the contest. There is not a better publicity mechanism then the guy who is serving you telling you about the same. Besides that they also tie up lot of the youth brands. Their promise to the customer is that

a lot can happen over a coffee. So every time they try to ensure something good happens to the customer. So they have a contest going on with Levis, another one with Scooty, and latest contest with Liril. CCD still doesn't believe in mass media promotions. But they want to be involved in all the areas of serious consumer passion. They are doing it with music. About 80 per cent of their cafs have a juke box and a few of their cafes are now book cafes. Next big consumer passion is Bollywood, so they have decided to be associated with movies. they had a Hindi movie Bas Yun Hi and a couple of Telugu and Tamil films with prominent Cafe Coffee Day brand placement. Later they took a conscious decision of being seen in certain movies like Khakee and Main Hoon Na and Bluffmaster being the recent hit. Another placement area that happened accidentally was with HDFC. They wanted to promote their debit card and they choose us. So all the 21 cafes had debit card machines, just during that month. The ad was shot in a Cafe Coffee Day premises. A lot of serials are shot in Cafe Coffee Day. Recently, Kahaani Ghar Ghar Kii was shot but they have no prominent tie ups. What they are offering is just a location to shoot in. They do charge a very small amount, which is the direct revenue loss for that period. They have done ads but all through barter deals. If they get a good deal from any other media, they will definitely go in for a marketing deal. But as an advertisement option or as a marketing spend, they are not looking at mass media. Quality checks

Quality checks take place all the time and in several aspects. The operational in-charge will go around checking business, record keeping, service and check the feedback forms. Thefood incharge will look at the way food is being stored, coffee is being made, what is the time take to extract the coffee and so on. Marketing person will go about checking displays, how the merchandise are displayed. CAF COFFEE DAY IN COMPETITION If you are talking about Cafe Coffee Day as meeting place then the park bench is their competitor, if you are talking about in terms of food and chain then McDonalds is a competitor and so are other coffee chains like Barista And Mocha. In fact they are aiding each other in creating and growing the coffee culture. They are not trying to be some one else. They are not trying to be an upper class coffee shop where you can walk in only if you have certain amount of money in your pocket. These are the upper end coffee shops that have hookahs and the works. They are about an every day hang out. They are about being the third most frequented place after home and workplace or college. So they are like the coffee chains overseas but with about affordable fun. they have a distinct identity; they are about coffee and about hanging out and about nice time spend. HYGIENE & FOOD HANDLING Employees use tongs or wear gloves to handle food items. They cannot USE BARE HANDS. Cutting Boards and knives to be washed and wiped dry every hour.

They always have to use clean and dry plates and bowls, cutlery while serving food. Clean the refrigerators before opening, and while closing. Cannot use chipped plates, cups. Cant open the mineral water bottle, tomato sauce sachets, before and also at the time of service The racks (where crockery are kept) should always be clean. Pantry area should be clean and dry all the time. Food Usage: Use first in rust out method. Order on a dayto-day basis. No food should be kept beyond the shelf life. The display has to be clean all the time. Only the fresh food received has to be used for display. Stack foods neatly on display plates. All the food, which is supposed to be microwave, has to have a paper underneath and then transferred to a new plate. All items stored at room temperature to be covered at all times either by a toed cover or wrapped in cling film. All the cakes will be cut when they are received in the morning by the cafes. A clean knife dipped in hot water and then wiped to be used to cut the cake. Rinse the knife after each cut with hot water. The appropriate cutlery and accompaniments have to be provided along with the food. The food should not be heated along with the cling wrap. The food has to be taken care of while packing up the food for parcel order. Thumb rule to be followed while storing food in the coolers. (Display as well as back up ones) (All the pastries on the top shelf the vegetarian Savories on the center and the non-vegetarian Savories on the bottom shelf.)

Reject food items which appear damaged while receiving food. Date/Color code stickers should be placed on all food. COMPENSATION & BENEFITS PAY PERIOD: Caf coffee days employees are paid on a monthly basis. One shall receive ones pay by the seventh working day of the subsequent month. One can access salary slip by logging onto cafcoffeeday.com/attendence, when the window opens click on the GO button. One will have to enter the user name and password. Ones employee code is the user name and password by default. Once login they can change the password by using the change password option. MEDICAL INSURANCE POLICY: Caf coffee day had a tie-up with insurance agencies with policies such as the group personal accident insurance and group health insurance policy. This is only applicable to employees who are conformed in the organization. Details of the same can be availed from HR department. STATUTORY DEDUCTIONS: EMPLOYEE PROVIDENT FUND: All full time employees who are appointed on the companys rolls are eligible for the provident fund schemes, which is a social security fund payable to on retirement. As per the provisions, employees must contribute

12% of their basic salary and an equal contribution will be made by the employer. The nomination form {Form 2} is filled at the time of joining. Yearly returns will be provided. Please collect PF number from regional HR resource. It may take around 1520 days from the time of filling and submitting the form. EMPLOYEES STATE INSURANCE: This is provided to employees whos gross salary is Rs 7500/- p.m. or less and the benefits provided under the scheme are for sickness, maternity etc. the employee has to contribute 1.75% of his gross salary and the employer contributes 4.75% of the employee salary under the scheme. The completed ESI form along with two post card sized full length photographs should be submitted for ESI registration. Please collect ESI card number from regional HR resource.

GUIDELINES FOR PERSONAL GROOMING AND HYGIENE

Clean uniforms have to be worn everyday. Store dirty uniforms and linen away from food items and clean linens. All male employees should come wellshaved, short haircut, trimmed moustache, and clean and short nails. No full beards or French beards are allowed except for religious reasons. Wear a light deodorant to mask perspiration odour. A hair net should be in place for ladies with long hair.

The cap is a protective hair gear. Please ensure that hair is well concealed within the cap. All employees should regularly wash their hands with antibacterial soap before beginning duty and after taking breaks. Spitting, smoking, chewing gum, betal leaf or supari is not allowed within the caf premises. If smoking outside the caf premises, use a breath freshener and wash hands after smoking. Those with infected wounds, cuts, open sores, boils, intestinal illness, any infection, bruises, coughs or colds should not prepare or handle food. HOW A CAF COFFEE DAY CAF IS MAINTAINED? INTERIORS: Wall finishes are washable. Clean them whenever necessary. Do not hang merchandise from electrical conducts on ceiling. These are of a clip-on type and loading them will pull them off from their saddles. Do not keep wipe pads on the counter top. If terra cotton pots are being used in caf, they are to be painted with red oxide paint once in 3 months. Do not force shut the glass doors, but allow it to close of its own accord. Forcing the door shut damages the spring inside. Do not place merchandise on top of wall visuals/mirrors. Outdoor caf floors need to be washed more often. LIGHTS: Red cube lights and cove lights above the servey are to be kept switched on always.

GENERATOR: Check the water/oil/fuel levels in DG regularly. Always allow a fifteen second time gap between switching on the DG and flipping the change over switch. OUTDOOR: Umbrellas should be opened fully and made taut. They should not sag. Umbrellas and awnings should be washed with water once a week. Doormats have to be cleaned at regular intervals with water. REWARDS The management believes that rewards offered by the company should be meaningful and valuable to the employees. The rewards are always based on attainable goals, they believe in SMART goal stetting { S- specific, M- measurable, A- attainable, R- realistic and T- time bound}. The rewards are clear, understandable and open to all. The main focus of the rewards is to recognize performance and motivate the high performers. TYPES OF REWARDS: An employee is chosen based on criteria such as excellent customer comments, and maintenance of quality product standards that will be publicized well in advance. The employee of the month will feature in the caf magazine caf beat. Select caf of the month that will be featured in the caf beat. Select employee of the month that will be displayed at the caf. Certificate of appreciation from the regional head.

Participation in city/ regional/ national caf managers context. Consistent and loyal employees with a good performance will be rewarded with employee stock options.

MAJOR RESPONSILITIES TEAM MEMBER Responsibilities Customer service Serve the customer with a Smile, to their satisfaction. Should collect their handheld from the Docking station wear its belt on their necks and park it in the pouch. Provide speedy and effective Customer Service. Follow all service standards laid down. Ensure customer feedback forms are collected on a daily basis. In case of complaining customers, take suitable action to solve the complaints Keep Caf Manager informed of all complaints. Responsible for table turnover. Never get into an argument with customers. Should constantly employ suggestive selling practices to make customers aware of new products and current promotion. Cashiering Printer is in working condition. Cash pouch has minimum float to start with. Handheld terminals and batteries are in good condition. Manager is intimated about the login password. Logout and hand over proper physical count of cash and the terminal to the next person

in the presence of the Caf Manager- every time you leave the caf. Bills are made for every order. Transfer- in and GRN entries are entered for the day. Cold Coffee Products/Food Service Recipes of cold coffee and cool drinks are adhered to. Pastry cooler display is setup using appropriate tent cards. The temperature of the refrigerator, freezer, and ice cube machine is of desired level. Microwave, Mixer, Griller and Oven are in working condition and kept clean and hygienic. Shelf life of food is followed strictly and FIFO is maintained for storage. Food is dispensed at standardize service temperature. Food is handled using disposable gloves and tongs and never bare hands. Servery is kept clean and hygienic and avoids all sources of contamination. Caf Opening Duties Setting up the counter for the days operation. Receipt city store items like coffee beans, cold coffee mix & cups and stationery and perishables like food, milk. Check on equipment (pastry cooler, AC, microwave, mixie, refrigerator, ice cube machine, and freezer) for cleanliness and ensure they are in proper working condition. Cleanliness of the caf interiors, exteriors and servery. Before they are handed over the terminal, it is the team members responsibility to see to it that the terminal is in good condition.

While taking the terminal, if there are damages noticed, Team member shall report it on the register counters signed by caf manager or his nominee. If the terminal batteries need to be changed or recharged then team member shall hand over the batteries to the caf manager or his nominee and collect charged batteries from him. Caf Closing Duties Cleanliness of all equipment and thorough cleaning of the caf. Checking the physical stock with assistance from the caf in-charge. Ensure food beyond shelf life is discarded and food to be retained overnight is stored at proper temperature. Assist the manager in compiling reports and updating registers etc. Part Timer/Weekender The responsibilities of a Part Timer/Weekender are similar to that of a team member. Every Part Timer/Weekender should stringently follow these duties with a smile with utmost diligence, zeal and application. The duty hours of the Part Timer/Weekender will be as specified by the City Manager/Area Manager. As you grow within the organization, you will be briefed about new role and responsibility. Brew Master Responsibilities All standard recipes of coffee are strictly adhered to and maintain uniform quality of these recipes at all times. Coffee Machines, Coffee Grinders and dispensers are cleaned and maintained well

and all preventive maintenance procedures are carried out. Hot coffee is prepared as specified by the F&B Department. Excess coffee is stored in airtight containers at the end of the day. Grammage and flow of espresso is as per standards. Ensure speedy production of pending orders. Knowledge about storage and shelf life of coffee and food related products. Proper closing and opening of pantry and keeping the work area clean and hygienic.

Manager In Charge Of A Caf

Responsibilities Should maintain a positive image of CCD (caf coffee day) Sport a smile always, as you are the Brand Ambassador. Achieve sales in a focused and planned manner. Achieving sales target daily. Table turnover and efficient customer handling. Handle pressure during the rush hours by ensuring proper pre-rush preparations. Allocating assignments and targets to the staff working in the floor area. Constantly review all suggestive selling practices employed by the caf staff. Ensure all items on the menu are available at all times. Responsible for customer feedback forms. Forecast orders accurately to minimize wastage. Maintain legally required licenses and others documents as required by local authorities. Implement other assignments delegated by the city manager from time to time.

Should coordinate with the regional head and marketing department for various products launches and other marketing initiatives to improve sales. Be responsible for all materials and machinery .To ensures that all the terminals are docked to the docking stations when not in use. Have complete knowledge of all standard operating procedures governing the caf and implement the same at all times. Maintain all records, reports and vendor/utility bills correctly. Maintain all opening & closing forms and formats. Adhere to all opening, closing, quality & consistency standards laid down by the company. Accountable for maintaining the stocks for smooth operations. All service standards, hygiene standards and cleanliness of the entire floor areas are maintained. Maintaining all product standards, coffee standards and recipes as specified by company policy. Planning the counter and ensuring proper workflow is maintained. Speedy products of all hot coffee, cold coffee, food, other beverages and desserts. Ensuring all machines including the nurit terminal and the kiosk behind the counter are in working condition. Intimate the caf manager immediately in case of any breakdown. Food standards and hygiene are maintained all times. Responsible for depositing the daily sales proceeds of the cafe in the bank. Ensure all stocks and inventories are properly accounted for. Practice wastage control and spot audits so as to have control over the raw material costs.

Take the responsibility of charging the batteries and docking the terminals. When the caf manager is not present, only a senior team member designated by the caf manager shall take responsibility of charging the batteries and docking the terminals. HANDLING RUSH Typically 80% of the business happens in 20% of the time & cafes will have distinct lean & rush periods. CCD cannot prepare rush hours during rush period,& therefore they have to prepare well in advance & have the caf ready in all respects. PRE-RUSH PREPARATION To ease workload & handle rush hours better Forecast the sales for the rush period Accordingly, ensure there are no stock out situations of any item on the menu. All the stock items or the food items should be well within reach & enough to last during rush hours Staffing should be adequate & work should be allotted well in advance & there should be no confusion about who is doing what Any breaks for the staff or change of old shift to mew shift staff should happen before rush time starts Pep up the staff If needed have one staff taking care of table turn over & ensure guests are received & seated The counter should be set up in a way that can help reduce clutter, crossovers between work areas & reduce the possibility of staff making mistakes.

TIPS

Portion out cakes , brownies etc. Refill sugar bowls , tissue box , straws & food stocks during free time Make sure all the cutlery & crockery is washed, wiped & ready for use Re-arrange spoons & plates size wise The cold coffee powder dispensers should be full & new packets should be well within reach Steam & keep enough milk in the refrigerator for cold coffee Clean the milk steamer for good froth Fold & keep readily 6 to 8 T/A boxes & 2 to 3 parcel boxes Wipe & keep the counter clean & clutter free Ensure the servey & seating area is well cleaned. Mirrors , glasses ,table tops etc should be wiped down & floors should be swept & mopped clean Place importance on cleaning outside the caf & replace fresh garbage bags in the garbage bins. There should be enough diesel in the generator & in storage Check air conditioner for efficient performance Check water level in the storage tank Check water level in the boiler of Espresso machine Make sure have enough change in the cash drawer Once pre rush preparations are done, ensure you have a positive mental attitude & work on speed consistently .Enjoy work & be self motivated to beat the rush. Be calm & in control of the situation. A well planned counter, which is set up in preparation for rush hour, will go a long way in providing speedy customer service .A cross trained& multi skilled team member

can rotate between work stations to ease any pressure points.

SEVEN STEPS OF GREAT SERVICE

1. WELCOME THE CUSTOMER Acknowledge customers presence at the caf. A smile goes a long way. That is guaranteed. Open the door to receive a customer & greet him courteously with a smile Meeting greeting & seating the customer in a warm & friendly manner sets the ball rolling for the service that follows .It will reflect in voice Check whether the customer wants a takeaway or will be seated at the caf Take his preference if possible & direct him to available vacant tables. Request the customers to be seated & introduce self. 2. TAKE THE ORDER & PRESENT THE BILL A confident demeanour & good menu knowledge will help you to assist the customer to his satisfaction

Hand over the menu to the customer & if not ready return to take the order in a few minutes Help the customer choose the right coffee or food by explaining in detail the attributes of the product. It is important that you recommend special product & add Suggestive selling will help you offer customers a better choice of their products. When the customer is ready to give the order , use handheld terminal. Choose SELL amongst user functions. Enter the table number & the number of people. Take the order. Check if the customer is the caf citizen ,if not, enroll the customer in the caf citizen program Inform customers at what time they should expect order to be served. For eg. order will be served in 10 minutes. Sir Print the order confirmation cum bill & place it in the folder on the table. TIP: use one liner terminology to describe product & its benefits to the customer. 3 .SALVER SERVICE Serve the customer at the promised time & know the products that you are about to serve .Pride in products will enhance the customers confidence in their brand. Arranged the readied products on a salver Serve the food first & serve the cold coffee , hot coffee or other beverages later. However check the customers preference. For eg. Can I serve the food items first, Sir or would you like everything to be served together? In case of no specific customer preference serve food first followed by coffee/ beverages Announce the name of the product while you serve the product

Remember who ordered which coffee / food in case of a group & serve the items accordingly If there are four people gathered at a table, then bring the coffee two at a time. Else, if you wait to bring all four together, the first two will not retain their temperatures. In case there are any delays after announcing the time of service, please keep the customer informed of delay. TIP:Ensure that you have served all the mandatory accompaniments with the food & beverages like sauces , cutlery , napkins etc..

4. VERBAL FEEDBACK & REPEAT ORDER A feedback on existing service would help you improve performance in future .Also, the customer will feel more valued & important.Keep an eye on the tables in allocated section Check with the customer if they would like some more coffee , snacks or desserts Interact with as many as customers as possible & get their feedback on the service & product. For eg. Hope you liked the coffee Sir! I hope you found the service friendly & prompt. Is there any way we can improve our quality of coffee, food or service TIP: If you ask for feedback, you are sure to receive comments from customers 5 .CLEARANCE Prompt clearance of the tables ensures that customers find the caf seating area clean, hygienic & presentable when they are seated at the tables

Clearance should be very prompt Clear empty plates, cups & soiled napkins from the table using a salver Ensure that the surface & edges of the table is wiped with assigned scrubber .Use a spray gun to dampen the table with a cleaning agent prior to wiping the table. 6. BILL SETTLEMENT & CUSTOMER FEEDBACK MAKE THE POST SERVICE WAITING PERIOD EASY & FAST FOR THE CUSTOMER When the customer is ready to leave check the amount of the bill from handheld & tell him the overall amount payable Once the customer places the cash, remove the bill folder from the table & clear the transaction promptly Request the customer to fill up the comment card. I would be delighted if you could kindly fill up our customer comment/ feedback form while I return with the change, Sir! Present exact change to the customer & collect the comment card. change, Sir! In case of any negative comment , tackle the situation before the customer leaves the caf .Acknowledge good comments too.

7. PARTING REMARKS Show customers that we value them & want them to return. A pleasant parting remark would ensure that customer comes back to caf Thank the customer for choosing CAF COFFE DAY. And how delighted you

are to be of service to him. Thank you for choosing CAF COFFEE DAY, Sir! It has been a pleasure having you over. TIP: It is not what you say , but how you say it!

PRODUCTS AT CAF COFFE DAY

Description of various Food and Beverages: Hot Coffees One Line Descriptions: Espresso : Strong black coffee extracted at high pressure and optimum temperature. Espresso Americano : A shot of lightened Espresso diluted with hot water. Macchiato : A shot of Espresso topped up

with milk foam. Cappuccino : Strong milk based coffee with a shot of Espresso, milk and milk foam. It is one of the most popular hot coffees at Cafe Coffee Day. Caf Latte : Milkier hot coffee, mild and goes best with coffee flavoring syrups. It has a very thin layer of milk foam. Chocochino : A blend of Chocolate ice cream and Espresso garnished with a dollop of milk foam. It is neither a hot coffee nor a cold coffee. It is a warm coffee. Cafe Mocha: Chocolate flavored Cappuccino. Goes best when served with

whipped cream. Garnish it with a dash of cocoa powder. Irish coffee: A light Espresso flavored with a choice of Irish Cream/ Hazelnut/ Caramel and topped with Whipped Cream. Caffeine Kick: Double shot of espresso diluted with hot water. Black Velvet: A'ristretto'strong coffee served around 5-20ml. Kenyan Safari : An international coffee with the hidden flavor of Blueberry. Colombian Juan Valdez: Rich, mild international hot coffee with fruity flavour. Ethiopian Qahwah : International hot coffee with a hidden mocha flavour. Hot chocolate : Lots and lots and lots of chocolate. Cold Coffees Tropical Iceberg : Ice blended cold coffee with notes of chocolate. It is the most popular cold coffee across the country. Tropical Temptation : A Tropical Iceberg topped with whipped cream and a shot of

chocolate sauce. Cold Sparkle: Ice blended cold coffee with a sparkling taste of coconut, it is among the earliest cold coffees introduced in their menu.

Iced Eskimo : Ice blended cold coffee with notes of coffee and cream balanced in right proportions. Arabian Heights : Ice blended cold coffee with a distinct flavour of cardamom. Vegan Shake : It is made of 100 % pure vegetable fat and does not contain any animal fat & dairy product. It is unique and is being launched for the first time in the country by CCD. Cappachillo : Coffee with sweetened creamy

milk served on the rocks. Mochachillo : Chocolate flavored coffee with sweetened creamy milk served on the rocks. Cafe Frappe : A judicious blend of ice cream and coffee that gives a smooth and creamy effect. Almond frappe : Almond flavored rich, creamy cold coffee with whipped cream, garnished with almond flakes. Choco Frappe: A Cafe Frappe with an extra scoop of Vanilla ice cream and a shot of chocolate sauce, garnished with cocoa powder. Devils Own : A smooth blend of cream and coffee drenched with chocolate sauce and topped up with a shot of whipped cream. Kaapi Nirvana : It is their ultimate signature blend, very Indian with hidden Caribbean taste, won the silver medal in the in the world barista championship held in Oslo 2002.

Rich coffee taste, heavy body with creamy texture and does not require any additional flavors. Fruit Frappe : A judicious blend of ice cream and fruits having different fruity flavors and thick cool texture. (Mango Frappe, Strawberry Frappe, Pineapple Frappe, Lichi Frappe, Cold Chocolate).

Teas
Assam Tea: A strong Tea grown in the best tea estates of Assam. Masala Chai : High grade Assam tea in combination with a Masala bag which is

meticulously prepared with pepper, cardamom and cinnamon to give an ethnic feel. Ice Tea: A flavoured cold tea served with lemon juice on the rocks, garnished with a slice of lime. Granitas / Cremosas Granitas : A cool slush drink in different flavour variants Pineapple Crush : Pineapple flavour. Cool Blue : Orange & hidden flavour of mint. Blood Orange : Orange flavour.

Smoothies : Ice-drinks blended with ice

cream to give it a creamy texture, which gives a smooth creamy after taste Strawberry/Mango Colada : A smoothie, flavoured with strawberry/mango garnished with whipped cream. Cremosa : A fizz drink served with fruit concentrate, soda and Ice Cubes Served on the Rocks. (Flavor options: Litchi, Ginger Spice and Pina Colada) Desserts Mousse Au chocolate : A double layered Chocolate mousse with a combination of milk a dark chocolate & subtle coffee flavor for all the chocolate lovers. Mocha Pastry : A fresh coffee sponge cake flavored with Coffee cream and syrup. Chocolate Fantasy Cake : Rich Chocolate

Pastry pampered with a rich garnish with chocolate truffle swirl. Pineapple Gateaux : Delicious cream and pineappleflavoured cake, very light and refreshing. Chocolate Mousse : Creamy, Fluffy, Smooth, chocolate flavored dessert, ideal with coffee. Black forest Cake : The all time favorite Choco pastry with cherries suited to our Indian palate. Sugar/chocolate Doughnut : A deep-fried dumpling doused with cinnamon flavoured top dipped in sugar or chocolate truffle. Date & Walnut cake : Rich butter base Cake made of delicious combination Dates & Walnut. Chocolate Brownie : A rich dessert made with the combination of chocolate, butter, walnuts best with coffee. [TIP: Tastes best

with a scoop of Vanilla Ice Cream.] Banana walnut cake : Delicious teacake flavored with bananas and walnuts Marble cake : A delicious combination of chocolate and vanilla butter sponge best with tea or coffee, topped with pure chocolate. Try with a scoop of choc ice cream, vanilla ice cream, nuts & chocolate sauce. Cookies : A crisp sweet snack accompanying all coffee and teas with choco chips,

chocolate ginger, peanut butter and coconut macaroon flavour options.

Cafe Coffee Day in wi-fi' tie-up with Microsense Cafe Coffee Day, the country's leading chain of cafes, has tied up with Microsense, provider of wireless computing solutions, to wi-fi enable its coffee outlets across the country. BANGALORE, DHNS:

Partnering with Microsense, Cafe Coffee Day has already wifi enabled 50 of its outlets across Bangalore, Mumbai, New Delhi and Chennai. The number would increase to 100 by March, Cafe Coffee Day Chief Executive Officer Naresh Malhotra told newsmen here on Monday. In a phased manner, all the Cafe Coffee Day outlets, spread over 50 cities, will be wi-fi enabled, he added. Pointing out that the cafes had been attracting huge number of business customers, he said the partnership would enable laptop and PDA owners to hook to the internet while sipping coffee at its outlets.

Microsense Director N V Krishna said the wi-fi service would feature plug and play functionality VPN support and always on connectivity. It would be provided through post-paid and pre-paid access accounts supported by a central authentication and billing platform developed and operated by microsense, he added. CAF BEAT MAGAZINE Caf Beat reaches more than a million smart, receptive and upwardly mobile youth of India every month. It is one of the most widely read YOUTH magazines in the country and is a part of one of the largest Indian retail youth brands Caf Coffee Day. CAF BEAT FACTFILE: 12 pages, all colour, monthly tabloid. Available at all cafes across the country (226 cafes in 55 locations as of Today!). Available FREE of cost to customers for in-caf reading. Many customers also carry it away for their referrals. 38% of the customers at CCD read Cafe Beat (survey conducted in Aug.'04 in the 4 metros.). CCD gets around 3 million walk-ins in all its cafes per month. Essentially a youth magazine covering topics like movies, music, travel, lifestyle, e-dating, books, career etc. which interest the youth. Displayed on magazine stands/counter at the cafes. The new issue is kept on the tables during the first week for greater visibility. Readership profile: Students and young professionals, mostly. SEC A and B. INSIDE CAFE BEAT

CCDS OWN PROMOTIONAL MAGAZINE

Every month Caf Beat brews a story for the young and the young at heart, a tale that they can relate to, a phase that they have experienced or are doing so and a decoction, which makes them feel FOREVER YOUNG!

Check out the FQ (Funk Quotient) of college bands in Phat Noise and witness The Ticket review the movies coming to the theatres near you.

Be informed about the list of exciting events just around the corner. You simply cant miss these

Know more about the latest Cafe Coffee Day launched in your neighbourhood and find the expert, Harish Bijoor throw light on how the caf of tomorrow will look and feel!

Is Sandra Bullock still congenial? Is direction Antara Malis cup of coffee?? Get your dose of gossip while navigating through the grapevine.

Mr. Bean talks to the troubled hearted.

Add more Gadgets and Gizmos to your wishlist with the G&G!

Know who all have bean modelling this month?

CUSTOMER PROFILE (TARGET AUDIENCE) The caf 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.

Teen-agers form 25% of CCDs customers while 37% of the customers are between 20 and 24years and another 24% belong to the age group of 25-29 years. Customers within the age group of 30-34, 3544 & >45 form 4%, 5% and 5% respectively 18% of the customers visit the cafes daily while another 44% visit weekly. 22% of customers visit it occasionally CAF COFFEE DAY MERCHANDISE Every one likes to cherish good times with a hope that they last forever. CCD make this a reality, in the form of merchandise, specially chosen and created for the customers to carry

a piece of the good times spent at Caf Coffee Day! So visit your nearest CCD to pick these trendy items of merchandise today!! Funky Caps, Cool T-Shirts, Bags, Mugs, Coffee Filters, Mints.

Coffee Powders Arabicaah, Perfect , Charge , Dark Forest .

New Introductions Malabar Monsoon premium Coffee Powder Varieties in coffee mugs Funky T-shirts and Caps CCDs guide to Active Holidays (A travel guide focusing on adventure sports)

while 16% visit monthly. Each caf, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Caf 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 viz a viz other cafes.

AIR DECCAN TAKES CAFE COFFEE DAY TO THE SKIES With Starbucks expected to enter the Indian market sooner rather than later, it seems logical that India's leading fine coffee-cafe chain Cafe Coffee Day should take to the skies, courtesy the country's pioneering lowbudget airline which now links up more urban centres 46 at last count than the competition. Both Air Deccan's parent company Deccan Aviation and Cafe Coffee Day took off in the same year from India's Garden City. Cafe Coffee Day, a division of the Rs 300crore

Amalgamated Bean Coffee Trading conglomerate, will now be the single-point vend or supplying snacks and beverages on board all of Deccan Air's 186 daily flights. Cafe Coffee Day (CCD) estimates that when the roll-out is in full flow, the four million passengers on board Deccan Air flights could add up to Rs 20 crore a year to its annual turnover, at an average of Rs 50 per passenger. For Deccan Air, the tie-up could enable the airlines to provide its passengers with reasonably priced snacks and beverages of a standard quality. Which is what its passengers are said to have indicated a preference for in a recent survey. The CCD service will begin with the Bangalore-Chennai flights, and will be extended to other sectors progressively. Since CCD has a pan-India footprint, the strategy can be implemented seamlessly even in smaller hinterland towns, where the competition in both aviation and the fine coffee cafe segment does not have a presence. The MoU to this effect was signed today by Air Deccan managing director Captain GR Gopinath and Cafe Coffee Day director Naresh Malhotra. Speaking on the occasion, Capt Gopinath quipped that another factor he and Amalgamated Bean Coffee Trading chairman VG Siddhartha and he owned neighbouring coffee estates.

D) 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.

I) Product
Caf Coffee Days menu ranges from hot and cold coffees to several other items. However, the core product is the coffee. The management believes that trend is changing

towards coffee. So taking this opportunity, the company also sells coffee powder. Caf Coffee Day also believes in selling other merchandised products. Core Product: Exotic international coffees e.g.

Capachinos Food items e.g. Sandwich, Samosas Desserts and pastries Supportive Products: Funky onwards Caps @ Rs 60

Cool T-Shirts @ Rs Bags Mugs @ @ Rs Rs 160 60

175 onwards onwards onwards Coffee Filters @ Rs 95 Coffee Powders:

 Arabica @ Rs 43 Perfect @ Rs 35 Charge @ Rs 28 Dark Forest 200gm @ Rs 80

New Introductions:

Reglon Sleeves T-Shirts @ Rs 249 Marquis pens @ Rs 315 Onwards. Shoulder Bags @ Rs 209 Coffee Mints @ Rs 40

II) Price
Caf 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. Caf Coffee Day believes in mass marketing. The average spent by the customer is 100125. Their coffee starts from as long as 15 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. Caf Coffee Day has opened an outlet at the NMIMS campus where they are providing additional 10% discount to the students. CCD is looking for expansion to more interior places. Here prices become more complex as the consumer are very conservative in spending. A cup of coffee at Rs. 35 is accepted in metro cities but not in small towns. The price of the product has to be kept uniform in order to maintain the uniformity in all the outlets. CCD target audience is youngsters. Majority of them are dependent on their family for their expense. This is one of the most important reasons for low pricing compared to other cafes. They believe it in making their product at an affordable price. Pricing is one of the important weapons for them to fight against their competitor.

III) Place
Caf Coffee Day outlets are spread across India. However, there are more number of outlets in the metros and towns. For e.g. In

Mumbai CCD have 37 outlets. In the past 12 months, Caf Coffee Day has also been on an aggressive drive to expand the number of cafs in the smaller towns across the country based on research and invitations received from these places to open more such cafes there. The company expects to cross the figure of 200 cafs in 60 cities by December 2004. There will be an increased focus in cities having populations from as low as Five Lakh upwards. However, the focus has not been on just opening more cafs wherever there has been an opportunity. Caf Coffee Day is already the largest and most wide spread retail chain of cafes in India with a current count of 169 cafs in 43 cites. CCD plans to reach cities like Kolhapur and Nagpur in the west, Hubli, Belguam and Vizag in the South, Allahabad, Varanasi, Ambala and Patiala, in the North, Jodhpur and Mount Abu in Rajasthan and Bhubuneshwar, Ranchi, Cuttack, Darjeeling, Guwahati and Jamshedupr in the East.

Product Mix:

Caf Coffee Day: Product Width

People: People at Caf Coffee Day believe that People are hired for what they know but fired for how they behave. Motivation and personal skill are laid emphasize upon.

IV) 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 advertises touch in with their audiences, newsletters. target loyalty club members, or CCD has also undertaken a promo jointly with TVS scooty. The promo was done at all the outlets across 43 cities. In this promo a package of 2 ices blended cold coffee and 1 choc fantasy for just selling for Rs 82. Customer Loyalty Programme: Coffee shops have a high loyalty factor i.e. 60-70% of customers come in at least once a week. The Cafe Citizens Programmed launched along with Net Carrots Loyalty

Services would reward regular customers of Cafe Coffee Day. Any customer who bills a minimum of Rs 100 on a single bill is automatically eligible for membership to the Cafe Citizens Programmed. The programmed entitles members to a 10 percent discount on all food and beverage bills for a year from the month of membership. Members will also receive surprise gifts from India times Shopping when they reach a total billing amount of Rs 2,000, Rs 5,000, and Rs 10,000. Members can track their total bills spend at any Cafe Coffee Day outlet across the country. The programme was very successful citizens. and they attracted 1,35,000

Smart Card Programme: Started from 1st Aug, 04; one can enroll into the program by paying Rs.100/- at any Caf Coffee Day Outlet and get a TEMPORARY CARD immediately after filling in the enrolment form. With the Card, one can accumulate Value Points Equivalent To Cash on net purchases at every transaction made at any of CCD outlets, provided the

card is submitted to the caf staff at the time of placing each order. The personalized permanent SMART CARD would reach at ones place in 7 days from the day of enrolment and the points would be transferred from temporary card to the PERMANENT SMART CARD. The points accumulated on the card would be printed on the bottom of the bill. So it is very easy to keep track of the points. As soon as 100 points have been accumulated on the card, one can start redeeming the points. Points can be redeemed on food, beverage and now even merchandise like coffee powder, Tshirts, mugs etc except Jukebox coupons.

Current Promotion:
Oyester BayThe current

promotion is done with the Oyester Bay Jewellery for the womans day. CCD has arranged the contest, which is arranged for the womans day event. This type of contest attracts the young crowd especially girls.

E) Ambience and Surrounding

First Impression is the Last Impression. This is true in this business. The first thing that the customers come across is the surrounding and the ambience of the store. To further brighten the vibrant atmosphere of the cafs, there has been a greater thrust on providing more value added services such as video juke boxes, cosy sofa seating, and exciting round the year promotions. Trading Co. Ltd had gone in for an image change and revamping of interiors in the last quarter of 2001. Caf interiors at the company's 169 outlets are being given a whole, new look. In a change from the largely wood and granite based interiors, there is more of steel and lots more colour. The young colours of today, lime green, yellow, orange, and purple will predominate. The crockery will also sport these colours. The larger cafes will also have lounge areas and a few beanbags.

F) International Presence
Caf Coffee Day, the premier retail chain of cafs in India within announced the major developments company

including its dynamic plan to expand the chain into the overseas markets. After having established itself firmly in the domestic market offering a world-class food and coffee experience to over 25 million customers annually across the country, the chain has already started setting up the infrastructure at 10 cities where it has targeted to open at least 50 cafes by December 2004. The entire international offering will be based on the successful Indian brand/model in which Caf Coffee Day has gathered a lot of rich experience in coffee caf retailing. As with the domestic cafs, the international cafs will also be trendy, offering attractive prices, and the coffees served

will be made from the premium quality coffee beans.

G) Future Strategy
Spreading Wide: CCD is planning to increase its reach by going to the small towns. To achieve the mission of being a number 1 player in coffee category they cannot ignore these small towns. CCD plans to open 45 more cafes in the next three months. The Company is focusing on the southern states of the country such as Tamil Nadu, Karnataka, Andhra Pradesh and Kerala, and the western region, starting with various markets in the state of Maharashtra. To widen the scope of target audience, CCD is planning to open some special cafs. These cafes would serve to the different target audience. However, they have aggressive competition from the Barista and other cafes. According to the management, they have a greater threat from the foreign players. Expensive Cafes: The major target group of CCD is the youngsters. However, the company wants to

widen its target group. Caf Coffee Day is planning to come up with a different type of caf, which will be having different environment all together. Even the merchandise will be different from that of the original CCD cafes. The coffees and the merchandise would be much more expensive and of a better quality. These cafes are mainly targeted to people with highincome group and status oriented people. International Coffee Flavours: CCD is planning to start soon with the international coffee at all the outlets. They have already done the test marketing in certain outlet of Bangalore. Adding the new flavour would increase the choice for the customer.

H) Its All In the Mind

CCD holds a distinct position in the minds of the target customer. Most of the customers are loyal and visit the same outlet. CCD is very aggressive in terms of the marketing activity in order to maintain the market share. Major customers are youths. Focusing on the

target group, tie-ups are done with other companies in order to keep the audience interested. They are planning to tie-ups with the cinema theaters, shopping malls. Coffee Caf Day is the most popular hang out place for the youngsters. CCD is perceived as energetic and trendy organization. The crowd is very lively. Most of the consumers are frequent visitors. Many of the people also have their loyalty card I visit here twice a week. Its a good place to hang out with friends. CCD has the wide variety of coffee that suit to the consumers needs. The ambience is very clean, well-lighted and airy. Most of the outlets also have large parking space and good seating arrangements. There is a young feel to it. The prices are very reasonable (compared to Barista, not our local Udipi) too and an average coffee would cost about Rs. 40. They also have attractive T-shirts sporting Coffee day labels, cups, etc for sale, which are manufactured by Coffee day. The food at CCD is at the affordable price. Customers coming out there also find the food interesting especially veg. wraps and

the chicken ciabatta (Italian sandwich). However they dont like pizzas. Sometimes, the food smells a bit stale. The deserts are the most preferred by the youngsters especially chocolaty cakes and apple pie. The employees are very friendly. They maintain a good relation with their customers. At CCD employees are very helpful and serve the customers, which differentiate them from other cafes. CCD coffees are much cheaper than that of cafes. This is one of the main reasons for attracting the young college crowd. CCD is also very well spread. Many customers believe CCD move with the competitor. Wherever Baristas opens its outlet, CCD comes with the outlet. One will not find more of working class or management people. Its not the good place to have a business talks. The place is very noisy which makes them difficult to concentrate. Even the seats are much closed arranged thus does not maintains secrecy. The music at CCD is very loud and trendy that is suited for the young crowd. There

are also some people who believe that CCD is cheap and it does not suit their status. The other problem that customer feels is the practice of having a TV set that is perpetually on MTV or Channel V or something and something loud and jing-bang going on.....It would be much better to have some soft music.

I) SWOT Analysis
Strength: Large Number of outlet. In house sourcing of coffee beans. Tie Ups with good companies. Weakness: Limited Target Audience. Follow the competitor strategy. Quality of food- Stale breads. Loud and Hard Music. Improper sitting arrangement. Opportunity: Large Untapped Market Tie-ups with other companies for promotion. Threat: Entry of Foreign players like Georgia, Starbucks etc. Large unorganized market.

Tie-Ups with companies

CCD jointly organizes large number of promotions with the other companies serving the similar target audience. EBD Book Caf: EBD is book caf has joint ventures with CCD. EBD Book Caf believes that by selling books from within the espresso bars like CCD and other such co-locations that have a footfall of over 100 plus customers in a day will help them to achieve growth in book sales. One can find ones favorite books at such cafes starting from fiction, non-fiction, religion, cookery, management, lifestyle, art & craft, children books and much more. EBD Book Caf are in collaboration with Caf 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. The CCD bookshops are in the same premises though not necessarily inside the outlet. Himalaya with CCD: To drive usage of honey, Himalaya Drugs is developing daily diet products and looking at marketing them by tying-up with leading

consumer brands. It has tied up with Cafe Coffee Day, to create four dishes; Honey Cappuccino, Honey milk shake, Rich Chocolate Cake and ice cream topped with honey and nuts. The Cafe Coffee Day partnership is unique. It provided a platform to reach out to the target audience in a relaxed environment where they could experience innovative uses of honey. The association with Cafe Coffee Day across 100 outlets in seven cities was not only to expand the category, but also towards creating touch points to experience the goodness of Himalaya Forest Honey. Fame Adlabs CCD is also involved in the promotion with Fame Adlabs. The pamphlets are being distributed indicating the current movie shown and the movies to follow. Also it shows the special offer for some lucky customer to get the coffee free.

Other tie-ups: Barista has tie-ups with Planet M, Crossword and the Taj group of hotels for setting up Espresso corners within their premises. Moreover, along with ABN Amro, Barista has introduced a concept called Ban caf - a caf in the bank premises.

Tie-ups: Besides that Caf Coffee Day also tie up lot of the youth brands. Their promise to the customer is that a lot can happen over a coffee. So every time they try to ensure something good happens to their customer. So they have a contest going on with Levis, another one with Scooty, Liril, latest one with Airtel Friends. Another placement area they have is with HDFC. HDFC wanted to promote their debit card and they choose Caf Coffee Day. So 21 cafes have debit card machines. Association with movies: Caf Coffee Day also decided to stick with the next big thing i.e. Bollywood. Earlier a few movies, whose target audience matched that of the consumers at Cafe Coffee Day, started shooting a few scenes in the cafe. So they had a Hindi movie Bas Yun Hi and a couple of Telugu and Tamil films with prominent Cafe Coffee Day brand placement. Later they took a conscious decision of being seen in certain movies like Khakee and Main Hoon Na. As part of this effort, the brand was placed smartly in two Bollywood ventures, the Amitabh Bachchan, Aishwarya Rai, Vivek Oberoi starrer Kyun Ho Gaya Na, Sajid Nadiadwala's Salman Khan, Priyanka Chopra starrer Mujhse Shaadi Karoge, forthcoming movies like Salman Khan starrer Lucky and Socha Na Tha. A lot of serials are shot in Cafe Coffee Day. Recently, Kahaani Ghar Ghar Kii was shot.

BUSINESS ASSOCIATION CCD has emerged as an interactive alternative media for brands to communicate with the young at heart. Other media, such as electronic,

print and outdoor, offer brand communication through visual and audio modes to a large section of the populace, both relevant and irrelevant. Caf Coffee Day offers a much more interactive, targeted communication, sometimes adding even a taste dimension to a brand idea! Various in-caf collaterals used to impart visibility to a brand inside a caf or to add the element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures, Coasters, Drop boxes, Contest Forms, Stirrers, Standees etc. Over the years, CCD has successfully promoted a number of brands/products/events through various innovative tactics and promo ideas. Cashing in on its mass captive audience

THE LEVIS CAMPAIGN The 6 Below the Naval Jeans campaign, the Sykes Reversibles (Ulta Pulta) campaign, the Levis 501 campaign, the TLTT (The Levis Torture Test), the Hello Gorgeous campaign etc all are some of the successful in caf activations designed and executed for Levis. Every season CCD becomes an important media for Levis to launch its new range of apparels. Along with providing tremendous on ground visibility in terms of wall visuals, tent cards, danglers, posters etc., a contest (wherein customers could win Levis clothes) 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 Levis drink for the promo period!

THE SUGAR FREE CAMPAIGN In order to promote Sugar Free, CCD launched a Low calorie menu in association with the former for the calorie conscious. The new menu consisted 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 deserts like Lemon Souffl to name a few. This menu was communicated to the customer by means of Sugar Free branded menu boards, menu cards etc. Also, a few bottles of Sugar Free were displayed at the counter to serve as a pointer to the on-going activity. THE CHANNEL V- GET GORGEOUS HUNT CCD 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 caf 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

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 designed

posters and tent cards in the wedding card format were used as tools to encourage customers to be a part of this contest.

Coffee shops have a high loyalty factor i.e. 60-70% of customers come in at least once a week. CCD also has private magazine distributed free to their customers. It includes ads and advertises about the promotions to follow. Most of the consumers are frequent visitors. Many of the people also have their loyalty card I visit here twice a week. Its a good place to hang out with friends. Most of the outlets also have large parking space and good seating arrangements. There is a young feel to it. The prices are very reasonable (compared to Barista, not our local Udipi) too and an average coffee would cost about Rs. 40. The food at CCD is at the affordable price. Customers coming out there also find the food interesting especially veg. wraps and the chicken ciabatta (Italian sandwich). However they dont like pizzas. Sometimes, the food smells a bit stale. The deserts are the most preferred by the youngsters especially chocolaty cakes and apple pie. The employees are very friendly. They maintain a good relation with their customers. At CCD employees are very helpful and serve the customers,

which differentiate them from other cafes. CCD coffees are much cheaper than that of cafes. This is one of the main reasons for attracting the young college crowd. CCD is also very well spread.

One will not find more of working class or management people. Its not the good place to have a business talks. The place is very noisy which makes them difficult to concentrate. Even the seats are much closed arranged thus does not maintains secrecy. The music at CCD is very loud and trendy that is suited for the young crowd. There are also some people who believe that CCD is cheap and it does not suit their status. The other problem that customer feels is the practice of having a TV set that is perpetually on MTV or Channel V or something and something loud and jingbang going on.....It would be much better to have some soft music.

Outlets Visited
I) Lokhandwala CCD: The Store at Lokhandwala is also a good revenue earner for the company. The store is located just outside the Lokhandwala and situated just opposite to Barista. This store is also an important store due to the location and also the target customers. Lokhandwala is one of the most famous place for shopping. This store is not as big as that of the outlet at Carter Road. It has a sitting capacity of 95 people. This store also has indoor as well as the outdoor space but has more of the outdoor spacing.

The working hours at Lokhandwala outlet is 9 am to 12 pm. The peak timings are 7-9p.m.(Working Crowd) 10:30 p.m.11.30 p.m. (Families) The USP of this store is its large parking space. Customers come to the outlet after shopping from Lokhandwala to have a coffee. The music is not appropriate which makes some of the customers annoyed. The Machine used in this outlet is Asttoria, which cost around 3.5 lac. The store sells lot of other products like T-Shirts and cups, which also do good business. However, the goods are not properly displayed. The staff at the outlet was efficient courteous and very helpful. There is a good customer service from the staff and helps the customer in making the decisions. The staff strength is 11 and is divided into 3 shifts that include 1 store manager. Customer Profile: Foot fall- around 115 per day The average spend: Rs.125-150/customer1-3 p.m. Comprises primarily of youth from the 18-30 yrs age group Attracts a lot of people from the film industry

Carter Road CCD: The Store was started store started on 12 Sept 2003. This is one of the most premiums and the biggest of the CCD outlet with the capacity of 130 seat and 25 tables spread over more than 1200 sq. feet. The location of the store has also played an important role. The store is located just opposite the beach at the Carter road, which is one of the favourite freaky places for the youngsters. The store has indoor as well as the outdoor space. Being one of the most important outlets for CCD, it also has a jukebox so that the customers are entertained and can choose the song they like to hear. CCD working hours is normally from morning 9 to 11:30 nights. However, the outlet at Carter road Working Hours are from-Morning 9 to Night 1.30 as their daytime customers mainly includes youngsters, students, and families in the late night. However the peak timings are from- 6-8, 10-11 pm. The staff members include 2 Branch Manger and 12 male employees, and 4 female employees. CCD also follows the pattern of shifts i.e. 4 staff member in the morning and 14 in the evening. Normally the footfall at the Carter Road branch are 325 / per day. However it may vary substantially during the holidays and during other occasions. The Average spend by the customer is Rs 100. The footfalls and the average spending

however vary. This branch has more footfalls and also the average spending is more compared to the other stores. The outlet has Unique Machine LaMarzotco (Asconia) which itself cost approximately 5 lac Rs. Customer Profile:

37% lies in the age group 20 and 24 27% between the age group of 25-29 years 60% of the customers who visit the caf are male

and 40% are female 52% of customers who visit the cafes are students

18% of the customers visit the cafes daily while another 44% visit weekly
Customer Profile Students Families Timing 5-9pm 9-11pm Average Money Spend Rs. 100 Rs. 200 Average Time Spend 1-2 Hr 30 min

Barista
Barista (which means bartender in English) is an Italian coffee chain shop. Barista traces its roots back to the old coffee houses in Italy- the hotbeds of poetry, love, music, writing, revolution, and of course, fine coffee. Barista Coffee was established with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in this particular segment. More significantly, they have been quick to spot a latent need waiting to be tapped: Coffee lovers seek a complete experience. One that combines intelligent positioning with the right product mix and carefully designed cafes. In other words, they seek an "Experiential lifestyle brand".

As one might imagine, tapping into this need requires a company that can not only deliver great coffee and espresso bars, but one with the ability to scale up operations quickly. At Barista, they have gone to great lengths to establish this. Barista started its operations with its first outlet at New Delhi in Feb 2000. The Company was promoted by Amit Judges Turner Morrison Group BARISTA Coffee Company Ltd - in which Tata Coffee Ltd holds 34.3 per cent stake Ventured into India.

Barista Coffee Company Limited has been recently listed among the top 100 brands in India by Super Brands India; the Indian Division of the globally renowned Super brands ltd. Barista was selected out of 711 leading Indian brands across 98 categories. Barista has its operations spread over 153 outlets across India. At present, Barista had, he said, over 120 espresso bars and corners in the four metros and 14 cities of India, with 35 being added over the last 12 months, out of which 10 had been relocated. Barista Coffee is a chain of espresso bars in India. Headquartered in Delhi, Barista currently has espresso bars across India, Sri Lanka and the Middle East. It was founded in 1997 by Amit Judge and was part of his group of companies. He sold part of the equity to first Tata Coffee. Then after he and Tata Coffee fell apart, Sterling then bought over the firm. In 2007, Sterling divested all their stake to Lavazza. Barista Coffee Company is currently owned by Lavazza, Italys largest coffee company. As of 2009, the chain has 2009 stores in India, with an estimated annual revenue of Rs 200 crores. Barista was the fastest brand to make it to the list of super brand's and is ranked among the top 50 phenomenons that changed India. Background, Market Entry & Growth: Barista coffee was establishes in 1999 with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment. More significantly, they believe they have been quick to spot a latent need waiting to be trapped: Coffee lovers seek a complete experience. One that combines intelligent positioning with the right product mix and carefully designed cafs. In other words, customers seek an experiential lifestyle brand.

Diagram The Barista Caf Logo As of today, Barista exists in over 22 cities, and operates over 140 outlets nationally. In the last 2 years, Barista has opened over 100 outlets in the country and with a new outlet opening nationally every 14 dates, Barista is currently experiencing phenomenal growth. With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth opportunities in Asia, making it highly competitive international brand.

Distribution:
Distribution of outlets Every Barista outlet is owned by the company, and not franchised out to anyone. Barista can thus control and make quick changes to its entire retail chain. Barista currently operates in over 120 outlets all over the country, and at their current rate, they are opening a new outlet approximately every 10 days. They have a market presence in over 20 cities. Mumbai alone has over 30 outlets, and the number of outlets in the city is increasing at a phenomenal pace. Barista has a thumb rule for selecting cities and locations for the distribution of outlets. Location: this is a prime factor in determining the success of a retail chain. However, Barista Coffee has adopted a top down approach, wherein they first identify the cities and then decide on precise locations within its limits. Selecting a city: Barista has devoted substantial management time and effort in zeroing in on the cities where they are now situated. The selection of the cities was based on the following criteria. Sizeable population of executives, students and families in SEC A & Barista category; High disposable income with people looking for new vistas in leisure and lifestyle oriented concepts; High level or organized retail activity; Level ofRapid socio- economic development; commercial importance (Industrial cities, state capitals etc.) Number of educational establishments and opportunities available for employment. On the basis of the above criteria, they had initially targeted cities like Delhi, Mumbai, Bangalore, Chennai and Hyderabad. Chandigarh and Ludhiana were later added due to tie- ups with Planet M and Ebony to set up storein- stores at their outlets. They are also pursuing an equally aggressive international business expansion strategy. They have over 50 overseas locations presently under their consideration.

They have already done their groundwork in terms of getting brand and name registrations in over 30 of these locations. To facilitate their global expansion, they plan to work with strategic partners, who share the same vision of expanding and promoting the brand worldwide. Currently they have opened new outlets in Sri Lanka and Dubai as a part of their international strategy. Distribution of Stock The distribution of stock at Barista begins from the coffee beans being sent abroad for roasting. The roasting takes place in Venice, and the beans are then supplied to the main warehouse in Delhi. Stock is then distributed to the various Regional Warehouses, and then to the local Warehouses. The outlets get their stock from the Local Warehouses. Barista uses a Re-Order Level system for the distribution of their stock. Barista out sources its transportation needs from external organizations, and currently uses trucks as the preferred means of distribution.

Human Resources Baristas boom in growth has sparked of a greater need for more and more human resources. This poses a challenge for Barista to ensure that their employees all across the country are well trained and provide consistent service at every outlet.

Table: Employee Profile The average age of Barista employee is 22. Most employees are in the 19-26 age groups. The break-up of the various posts are given below:

Recruitment & Selection: Barista currently opens a new outlet somewhere in the country every 10-12 days. The spurt of growth can only be successful if they have the right people working for them. The high expansion means that more staff is needed immediately at the Counter Staff and Field Staff Level. This is only possible is Barista uses the correct recruitment and selection policy Sources of Recruitment Baristas main sources of recruitment are: i. Walk- ins ii. Referrals iii. Placement Agencies Recruitment & Selection Process Barista hires people for their counter staff from external sources, and follow the following process for recruitment: i. Collection and review of Curriculum Vitae ii. Personal interviews with H.R. Manager iii. Personal Interviews with Area Manager/ Regional Manager. Recruitment is usually done on a monthly basis, depending on the number of outlets and expansion taking place in that month. Training & Development: To insure consistent employee performance, training and development policies are very important- even more so in service sector organizations. Barista Coffee has a set, 14 days rigorous training procedure for each employee. With training modules customized to fit the professional needs of each employee. In the case of their brew masters, the training programs are drawn up and conducted by trainers who have been trained by Italian brew masters. Barista has a Training & Development policy, which basically consists of two parts, Induction Training and Refresher Training. i. Induction Training Induction Training occurs when a new employee joins Barista. The employee is taught about the Barista culture, what it means to be a Barista employee, the sort of attitude and behavior expected from him, and product and technical training.

ii. Refresher Training Refresher Training usually happens ones every two months, in the form of technical training and soft skills training. This ensures that the employees are constantly aware of what is expected from them, and their required level of performance. Employee Working Hours: Barista employees work on an average for 9 hours, and there are usually 3 shifts per day. Employee Code of Conduct: Barista employees are trained with regard to their code of conduct at the induction level. It is at this stage Barista tries to infuse, what it refers to as key qualities for its employees: pleasant manners, polite behavior and positive attitude. The code of conduct of each employee is supervised everyday by territory managers. Promotion Policy: Barista prefers promoting from within, rather then externally. The amount of training and development programs that go into developing an employee, they would like to harness that potential for higher posts. The current promotion policy is based purely on performance. Performance Appraisal: Barista currently carries out performance appraisals every quarter of a year. Direct supervisors in most cases carry out these appraisals. Currently Barista doesnt have any other kind of appraisal programs like upward/ 360o appraisals. Barista does conduct Exit Interviews though, and uses it to improve employee retention. Employee Turnover & Retention: Baristas current rate of Employee Turnover is about 10 %. The company attributes this to the fact that some of the employees in the 19-22 age group, look at this job as a temporary source of income, and have no long-term commitment to Barista. To increase employee retention, Barista focuses on the following key aspects: Right hiring Right working environment

Grievance handling and redressal.

Table: Barista: Product Mix Width Some products may have been added/ removed from the product mix, due to changes since gathering information. Product Sources: Barista sources its coffee beans from around the world, but a major supplier is TATA Coffee, part of the TATA Group that owns a large stake- holding in Barista. These coffee beans are then sent to Venice, Italy where they are roasted into a blend exclusively for Barista. The food and desserts at Barista is exclusively catered to by the Taj, who ensures a high standard of quality with all its products. Barista also sells merchandise through its store, all of

which is imported. The merchandise accounts for nearly 1/6th of Baristas overall sales.

Diagram The Barista coffee beans Quality Sources: Barista has a check on the quality of its products every 14 days. Barista also incorporates TQM at its headquarters in Delhi. Since Delhi is the base for all its distribution, quality control measures are adopted there to avoid any poor quality products being distributed. Serving Size: The serving size of a product is a measure, not only of quantity, but also of value for money. The average serving size for Baristas main product categories is detailed in Table given below

: Table: Barista Serving Size Merchandising: Barista sells various kinds of merchandise through its stores. The table details the different merchandising products.

Table: Barista Merchandising Process: The order and delivery process at Barista is based on self- service, where a customer goes up to the counter to place his order, and goes back to the counter to pick his delivery once it is prepared. Positioning: Consumer Profile: According to research, over 65% of Baristas customers are in the 15- 30 age- group. The majority of these are students and young urban professionals. Brand Image: Barista positions itself as a brand for anyone who loves coffee. Their products, services and outlets are more like the traditional European cafs, where people would meet for the love of coffee, and for an intellectual appealing time. They position their outlets as a place where the world meets, and they look to appeal to anyone in the 14- 60 age group that loves good coffee and looks for a nice quiet time.

Products:
Baristas product mix constitutes a wide range of products that appeal primarily to traditional coffee lovers. Their products themselves are traditional products with traditional names. Food items like croissant, pastas, and sandwiches are complimentary to their coffee, and project a very classic image of Barista. Their merchandising also consists of primarily coffee related products like coffee beans, coffee machines, etc.

People: The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid-back feeling of the caf. Physical Evidence: a) Logo, Colors, Images: Barista, since the beginning has looked to use colors in its caf interiors, logos and images; to project a warm, earth glow, synonymous with coffee. Barista uses shades of Orange & Brown to good effect to promote its laidback atmosphere.

Diagram The Barista Interiors The logo is a combination of Brown, Orange and Light Yellow; with the word Barista written in an upward curve, and the word Coffee underneath. A simple logo that perfectly expresses Baristas brand image: A traditional caf for coffee lovers. b) Dcor and Architecture: Baristas internal dcor and architecture expresses the simplicity you would normally associate with traditional cafs. The furniture is made of light shades of wood, and there are comfortable sofas in bigger cafs. The walls are shades of orange, with various photographs of the love for coffee spread around each outlet.

c) Literature: The literature provided by Barista is indicative of its brand image. The menus, posters, pamphlets are all traditionally designed, with a classic and simple look. One aspect of particular note is their magazine, which is privately circulated in the cafs. The magazine encourages customers write, draw, make etc anything creative; and this is then published in the magazine. The magazine not only provides an avenue for advertising, but also an opportunity for Barista to express its brand image. Place: Barista looks to cater to their target market with strategically located outlets. Their outlets are generally located at High Street/ Family Entertainment Centers. Considering their generic appeal, there are Barista outlets in and around Malls, Cinemas, Colleges, and Offices etc. this endorses their brand image of a caf that appeals to coffee lovers of all ages. Promotions: Barista currently carries out mass promotion campaigns. This is mainly in the form of promotions in the Press, TV and Radio Medias. At present, they do not rely heavily on advertising, but rely more on sponsorships and strategic alliances with other corporations. Barista also takes part in various sales promotion activities to help increase sales at their outlets. a) Sponsorships: Barista sponsors various events and festivals, which provides them valuable promotion directed at strategic markets. The sponsorships are mainly in kind, although major events are sponsored in cash also. Collaborations: Barista has entered into special collaborations and alliances with various partners for co- marketing brands. For example, Barista entered into a deal with Leo Mattel toys to provide the popular board game Scrabble at every Barista outlet across the country. This is an ideal alliance for both the organizations, because it provides Leo Mattel with an important avenue for promoting their product, and it provides Baristas customers an added attraction for spending more time at Barista outlets.

Barista has also entered into partnerships with various movies, for promotions through Barista, and recently, they tied up with Star World for its Everybody campaign.

Diagram The Barista Collaborations Sales Promotion: Barista uses a special Barista Coffee Card for its sales promotion activities. The Barista Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven. It is available to all Barista coffee regulars. No membership fees, no references required. Fill out the card and you are a member. As a Coffee Card holder, you earn one stamp on the card every time you purchase a beverage. Simply present the card to the cashier when you place your order at any of their outlets. Once you have collected seven stamps, you can hand over the card to receive your complimentary hot beverage. Barista hopes this card can help drive sales growth, and increase customer retention.

B) Barista Marketing Mix

Barista continued to maintain its focus on quality by sourcing only Arabica beans and using the best international espresso machines, supplied by the Italy-based LaCimbali. Barista was, working towards becoming the number one in terms of parameters likes brand-imagery, brand-dominance, customer-loyalty and turnover. The strategy for fulfilling its mission over the next decade would be by leveraging its strong position in the Indian market to grow further in an Asian context.

I) Product
Barista cafes also have a good number of product mixes. The menu ranges from variety of coffees and pastries. Barista also sells other items like mugs, Coffee beans, T-Shirts, Coffee Kettles. Core Product: Coffees Cakes and Pastries Coffee Beans Supporting Products: Coffee Mugs in Orange and Blue which cost Rs 55 and Rs 99 T-Shirts which cost Rs 150

Coffee and Coffee beans are also considered as the core product for Barista. The company has also tested marketed coffee beans through its outlets in Mumbai and Delhi. Barista claims that they sell a best coffee bean. Barista has started with a new concept by the name Barista Merchandise. Barista Merchandise is available at selected Barista espresso bars in Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore. The Barista merchandise are the different types of beans that customer can take home and have the coffee of his own taste. Some of the Barista Merchandise includes

The French Press Barista House Blend

Barista is also diversifying its hot beverages menu and introducing several specialty teas. The reasoning undoubtedly is based on the fact that apart from South India, all other parts of the country are mainly tea-consuming areas, and this step is expected to help the company expand its client base in the smaller towns of these regions.

II) Price
Barista holds the perception of being an expensive cafe. However, Barista was the first organization to start the concept of the organized cafes in India. Initially Barista started with Skimmed pricing policy. Barista segmented the market according to the income and age. Due to the entrance of new players, Barista was finding difficult to maintain the market share. First and foremost, Barista re-defined the

target market customer. They even planned to change their tagline. "Where the world meets And so when company looked at this positioning and they looked at the pricing - the strategy being that if we lower the pricing. Apart from this, Barista has also introduced new low-priced beverages. The officials say these price cuts have resulted in 15-per cent walk-ins at Barista's outlets during the last few months. Barista decided to alter their strategy in order to retain their market. After studying the market, Barista found that competitors were fighting against them against the pricing. They decided to reduce their pricing. It was not done from a perspective of acquisition. With reduction in the prices, there had been a 47 per cent increase in footfalls over the subsequent three months. December 2003 had, seen Barista experiencing a 21 per cent per-store increase in footfalls over the previous December, with the number of footfalls for the year totalling 14 million.

III) Place
Barista started its first outlet at Bangalore and from there it has started spreading its wings especially after price reduction. Now they are even planning to focus on raising the bar of coffee experience. Barista already has presence in all the metros and has a presence in all the highly populated regions like Mumbai, Delhi, Bangalore and many more places. Barista is seeking to expand through the franchisee route model and plans to

enter B-class towns in the country and middle-class localities in the metros such as North and East Delhi. By 2005-06, Barista plans to have over 300 outlets across the country up from 153.

IV) Promotion
Barista did not initially believed in any kind of promotion but in order to keep their customers interested they started building the brand by communication both within the store as well as outside the store through mass media. It under takes various promotion activities during the festival or during occasions like Valentines Day. Barista has done advertising in almost all national newspapers. Barista has launched summer campaign through summer chillers, and was advertised through different channels.

C) Ambience And Surrounding

The colour shades that they have used are terracotta; it is warm - it is orange. The background has a dark Orange colour. Orange colour signifies of a style and friendly ambience of its own. In order to match the colour

combination of the surrounding even the uniform of employees are orange in colour. The place invites the customers to spend time. However, the focus would, continue to be to recreate the ambience of the typical Italian neighbourhood espresso bars in India so as to provide a comfortable place for people to relax and experience the joy of coffee. The ambience of the location and the quality of coffee would, continue to be the key factors while growing the chain. It has lots of board games for any one to indulge in, like chess, word scramblers, and a guitar to pluck some chords.

Music: The music is not too loud and encourages conversation, and the person behind the counter is non-intrusive and friendly. Barista is also planning to organize live music. Listening to live music, while sipping a warm cup of coffee, next to your beloved can make an evening a perfect memory to cherish. In order to gift its customers with this tranquilizing experience, Barista is buzzing with live music this winter spate. Barista presents 'Oceans', the music band that will perform live at various Barista outlets. Sitting Arrangement: Barista is a place for relaxes. Even in a crowded espresso bar, at Barista, one will have his share of privacy. The seats are arranged at a certain distance to have a privacy of talks as their major customers come there to discuss the business or to relax and chat.

D) International Presence
The company operates over 130 coffee joints including four in Dubai and Colombo. Barista had chalked out aggressive strategies for expansions into Europe and West Asia. Barista has already started its operation in both Sri Lanka and Dubai and doing very well. They are talking terms with a few potential partners in Kuwait. Barista owns and manages all its outlets in India but operates through franchisees in other countries.

Future Strategy
The management at the Barista outlets thinks that their positioning is very different from that of CCD. They think that the people going to CCD are young college students. The target audience for the Barista are young managers and middle level mangers and also family. However there is a treat to them in terms of the share of the young college going crowd, which forms a main target audience for the CCD and comparatively small part for Barista. In order to maintain the share the managers of Barista thinks that they would need to increase their presence and also have to tap the other untapped market. The company is also planning to tie-up with other companies in order to increase the promotion activities that would keep the crowd interesting. They also are planning to organize the festivals of the college or sponsor prizes in the festival. Increase in outlet: As part of its marketing strategy, the company is planning to promote international coffee blends first through 40 Barista stores in Mumbai, Delhi and Bangalore. With the move, the company also hopes to expand the number of Barista Espresso Bars on an average rate of two to three per month as well. International expansion: Barista is also looking for the international expansion. They are planning to expand in the Kuwait market. Barista is also planning to expand its presence in the other Asian countries like Sri Lanka, Dubai.

Promotional Activity: As part of its marketing strategy, Barista Coffee Company Ltd is planning to launch a host of consumer promotions at its outlets in 2004. For the purpose, the company is currently in talks with many entertainment, consumer goods and music companies, which include the US-based Bose Corporation, Swatch and International Travel House. Improvement in the Services: Initially Barista had a system of self-serving. Indian consumers are not comfortable with this concept. However in some of the outlets they have started serving the customers. Informative Staff: The staff should be qualified as they will be dealing with intelligent people. The staff should be friendly but should not try to educate the customer who is already aware of the things.

F) Its All In The Mind

Barista is a place where the world meets. People come to Barista to have a meet or to relax. A lot of them actually come alone as well. This is actually one of those places with people coming in alone because they are comfortable with themselves. It is a place where people are meeting each other in an environment, which is fulfilling social and intellectual needs. The employees at the Barista are also energetic. They help the customer

in making decisions for their purchase. Some of the customers at the Barista think that they should be personally served rather than selfserving. When the person wants to orders for some thing customer has to go to the counter order the requirements, pay bill and the employee takes the name of the customer. When ever the order gets ready the employee shouts on the top of the voice calling for the customer to take the order. This actually unpleased the customer as the customer gets disturbed every time the employee calls for some person. Product: During the time of discussion I found two types of customers, one who visits regularly and other who visits rarely. The customers who come rarely are not actually the coffee lovers. They just come there to do some time pass. They have no complains about the product. But the customers who are coffee lovers are not satisfied by the product they serve. There are some customers who actually complain about the quality of the product. Coffees are not really that good. The bread is dry; the amount of filling has reduced in quantity etc. Their desserts fortunately have not suffered and are still pretty good. Customers not only come there to have a coffee or have a sandwich. They actually come there to have an experience. They find prestigious when they visit to the Barista. As major target audience are youths, young managers and middle level management people who come to discuss their business.

The young students visit there as they feel the sense of maturity . The people who are status oriented would prefer visiting Barista rather than CCD. Their targets are youth, young executives and nucleus families. Barista also claims that intelligent people come here Someone who is intelligent and appreciates the good things in life. claim by Barista. There are many customers who come there, as they perceive themselves as intelligent people. For business people toting Laptops they can hook up to the net free of cost or catch up on the news business magazines and newspapers are available at every outlet. They also come to Barista, as its a good relaxing place where they can discuss about their clients. There are people who also come alone. They find Barista is the place where they can just have a coffee and think deep, as there is no one to disturb them.

G) SWOT Analysis
Strength: Claim to sell the best coffee Large Number of outlet In house sourcing of coffee beans Espresso-Highest selling coffee Weakness: Expensive coffee

 Self service for the customers Quality of food- Stale breads Opportunity: Large Untapped Market Tie-ups with other companies for promotion Threat: Entry of Foreign players like Georgia, Starbucks etc Large unorganized market

Ties up with companies

Barista with Taj Group: Barista Coffee, a leading coffee bar chain, has tied up with Taj group of Hotels for setting up exclusive Barista expresso bars at the Taj hotels in metro cities. The first such bar would be at the Emperor Lounge at the Taj Mahal hotel in New Delhi followed by a Barista Bar at the Sea Lounge at the Taj Mahal Hotel in Mumbai. This would be followed by similar bars at Taj Mahal hotels in Calcutta, Chennai and Bangalore. Barista also will be housed at the coffee shops of all major Taj Hotels in the country. Barista with Tata Teleservice: Barista has also tied up with Tata Teleservice. This tie-up was primarily done in order to provide consumers' access to the Internet. The objective being, today if you look at Barista consumers, a fair number of them come to Barista to discuss business over a cup of coffee. Moreover, it is easier for them to meet at Barista, discuss business and send the information across. It is going to be focused primarily on work, towards the busy executive who is traveling and has dropped by for coffee or the small office segment who might just want to work out of Barista.

Lacoste with Barista: Lacoste India has decided to tie-up with coffee outlet chain Barista in all the major metros and some mini-metros. The strategy is to target younger audiences, which have a penchant for the "finer things in life". The customer segment of Barista is very different from the ones who visit a regular coffee shop. Elle-18: Barista is jointly tied up with Elle 18 to promote their product. Elle-18 is launching a collection of coffee colored lipsticks and has named it after Baristas beverages! Therefore, they are working with Elle 18, which is a youthful brand. Moreover, they both will grow with this association. For Elle 18, the objective is to build a platform for their range of coffee colored lipsticks and for them, the objective is to associate with the brand and have their consumers coming in to Barista. CBC Book shop: Barista has tie-up with CBC bookshop, which has book corner at eight Barista outlets in six cities. Baristas bookshops are right inside the caf. Barista prefers best sellers and classic, besides books on management, lifestyle, sports, health, religion, children and even cookery. Some of the outlets also stock activity books, comics, CD-ROMs and crayons.

Sony: Barista Coffee has tied up with Sony Music. Under this association, Sony Music would endorse CDs and music cassettes of their recent acts, which will be used as the lucky draw prizes for the participants. Consumers buying food, beverage and merchandise for Rs 110/-and above during specified hours of the performance, will be entitled to participate in the lucky draw. The prizes will be given away in a couple of draws during the performance.

BARISTA
During the time of discussion I found two types of customers, one who visits regularly and other who visits rarely. The customers who come rarely are not actually the coffee lovers. They just come there to do some time pass. They have no complains about the product. But the customers who are coffee lovers are not satisfied by the product they serve. There are some customers who actually complain about the quality of the product. Coffees are not really that good. The bread is dry; the amount of filling has reduced in quantity etc. Their desserts fortunately have not suffered and are still pretty good. Customers not only come there to have a coffee or have a sandwich. They actually come there to have an experience. They find prestigious when they visit to the Barista. As major target audience are youths, young managers and middle level management people who come to discuss their business.

The young students visit there as they feel the sense of maturity. The people who are status oriented would prefer visiting Barista rather than CCD. Their targets are youth, young executives and nucleus families. Barista also claims that intelligent people come here Someone who is intelligent and appreciates the good things in life. claim by Barista. There are many customers who come there, as they perceive themselves as intelligent people. For business people toting Laptops they can hook up to the net free of cost or catch up on the news business magazines and newspapers are available at every outlet. They also come to Barista, as its a good relaxing place where they can discuss about their clients. There are people who also come alone. They find Barista is the place where they can just have a coffee and think deep, as there is no one to disturb them.

Sales: 40 % spend on food stuff / 60 % on beverages Sales revenues approx. Rs 7000 / day

Consumer Profile: Research shows that 37% of the customers are between 20 and 24years. 27% of the customers are between the age group of 25-29 years. 60% of the customers who visit the caf are male and 40% are female. 52% of customers who visit the cafes are students. 18% of the customers visit the cafes daily while another 44% visit weekly. Each caf, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Caf 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. The prices here are perceived to be reasonable and it is a place where customers come to rejuvenate themselves and be themselves rather than a place to be seen at vis a vis other cafes.

About the Visit

I) Barista at Bandra The outlet at Bandra has a capacity of 48 with 16 circular tables and 2 side tables. The approximately area of the store is 800 sq.ft. The outlet is very big as the other outlet of the Barista. This outlet being at a very busy area, there is no ambience for the customers to sit outside. Even the parking space is not sufficient. As the outlet is located at one of the busier area of Bandra, the working time for this outlet is from 9 in the morning to 1.30 in the night. However the outlet is located just opposite the National College, the peak time is during the afternoon dominated by students who are small spenders, shoppers & young executives in the evening and families in the night who are more than average spenders frequent in evenings & night.They come to Barista to relax and discuss about their business. The outlet has the staff capacity of 9 out of which 2 people stay from morning to evening. Footfall

varies form 250-300 per day; however it varies widely during the festival time. The average spend per customer is Rs.120 per customer. Customer Profile:

Customer Profile Students

Timing

Average Money Spend Rs. 0 - 50

Average Time Spend 0.5 - 2 hrs

10 am-9pm

Executives

7 pm-12pm

Rs. 180

30 - 45 min

Sales:

Only 35 % sales revenue is from foodstuff Balance from coffee and other beverages

II) Barista at Santacruz

The Santacruz outlet has the capacity of 48 people with 14 circular tables and 2 side tables. The size is 1000 sq. ft.appox. The outlet is located at the residential place. Majority of the customers are corporate and families. The working hours are from 9 am to 12.30 am, however the peak timings are

from 6 to 11. The total staff strength is 7 during the week days and 8 during weekends. The outlet is not the biggest contributor as it is located at a residential area and even the footfall is very less compared to that of the other stores (100 customers). The average spent per customer is also low i.e. 60-70 Rs a visit. The machine used by them are One M31 Dosatron by La Cimbali (operates from 9 am to 1:30 am) and one slush machine Hugoleni by Hugo Leni. The outlet has Guitar (not properly maintained) and chess & scrabble boards for entertainment. Customer Profile:

Customer Profile Students Executives / Families

Timing
10 am-9pm

Average Money Spend Rs. 0 - 50

Average Time Spend 0.5 1.5 hrs

7 pm-12pm

Rs. 140

30 - 45 min

Sales: 40 % spend on food stuff / 60 % on beverages Sales revenues approx. Rs 7000 / day

He was my MILK, and I was his POWDER And when you poured us together, it was COFFEE.

CONCLUSION
The best known cup of coffee in town comes from here. You can't miss Cafe Coffee Day; if there isn't one in your neighborhood, there's one near your college/office, You might as well give in, they're taking over. The college crowd is big, because the rates are more or less affordable, officegoers hang out here at lunch breaks to take in the laid-back air of the place, first-dates meet here because it's neutral ground, and couples because they're not likely to bump into their parents. You're left alone to play your favorites on the jukebox and nurse your mug of coffee for however long you want. All at a price, of course - Rs. 5 per favourite song and around Rs. 25 for the drink. The range of coffees here, both cold and hot, is impressive. The latte (with cinnamon, if you like it that way), Irish Coffee, Cappuccino and its chocolate-y version, the Mochaccino are the most requested hot coffees. While the Frappe, with chocolate ice-cream blended in, the Tropical Iceberg, which is the classic cold coffee, and the awardwinning Kaapi Nirvana is the chilled favorites. Order cookies to go with it and, suddenly, none of your problems in life will seem like such a big deal. CCD also does a decent job of the teas, of which it has only three, but the Masala Chai is good. The eats here are also very popular; in fact, many people skip coffee altogether and just come here for the grub. For the most part, though, the food here is nothing spectacular. Their ever-changing menus haven't really improved matters, either.

CCD also sells its own range of t-shirts, coffee mugs and bags. Their line of pre-packed coffee powders is steeply priced, but there is no dearth of takers, and the filter-coffee has some dedicated drinkers Its hard to miss: It sports a youthful look. Plush, pleasing interiors, plus colours such as lime green, yellow, purple and orange predominate make Caf Coffee Day a soft-low decibel spot for the trendy youth. Caf Coffee Day, a division of Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), has become a hot brand with the youth. Truly, if excitement has an address, it would be Caf Coffee Day. Its just the place to be

Areas of Excellence
Both cafs have certain areas where they have been consistently performing well. These are essentially the strengths of the brand, and Barista & Caf Coffee Day need to capitalize on these strengths to increase their market share and brand loyalty. The main areas of excellence, based on the Case Studies & Market Survey, have been identified as follows:

Barista
1. Strong Brand Image: Barista has a strong and clear brand image. Their customers can easily identify and relate to the Barista brand. This helps increase and maintain brand loyalty. 2. Excellent Human Resource: According to the survey, Barista received an excellent rating for the service and behavior of their staff. This is a huge advantage, especially in a service organization. Barista must strive to keep this advantage. 3. Ambience & Dcor: Another significant area of excellence is the kind of ambience and dcor Barista cafs have. Respondents to the survey, including whose who chose Caf Coffee Day as their choice of caf, gave Barista a near perfect rating for their Ambience & Dcor. 4. Strong base for expansion & growth: Barista have worked hard on heir brand image and human resources, and have a strong base for future expansion and growth- whether nationally or internationally.

Caf Coffee Day

1. Highly rated Taste & Quality of products: Caf Coffee Day got a high rating in the market survey, for the Taste & Quality of their products. If they work on this aspect, there is huge potential for them to attract customers, just based on the taste and quality of products. This is also helped by the fact that they grow their own coffee beans, and this provides an important base for future expansion and growth. Caf Coffee Day even won the Barista Coffee- Making Championship for the Best Coffee. 2. Value for money proposition: Caf Coffee Day is projected as an affordable brand. This strategy has worked extremely well so far, and Caf Coffee Day got a high rating, both for their prices and for their value for money, in the market survey. 3. Strong youth orientation: The Caf Coffee Day brand is, and always has been, extremely youthoriented. In a country where over 40% of the population is under the age of 20, there is huge potential for Caf Coffee Day to become one of the countrys largest youth brands. The untapped market share and potential for growth is enormous.

Areas Needing Improvement

Both Barista and Caf Coffee Day have under performed or not lived up to potential in certain areas. The areas are weaknesses, which need to be improved upon, as that both can eliminate any disadvantage that may have, and improve customer satisfaction. The mail areas needing improvement, based on the Case Studies & Market Survey, have been identified as follows:

Barista
1. Average taste & quality of products: According to the market survey, other than their Dessert, Barista got only an average rating for the taste & quality of their products. Considering their

strong brand image of being the coffee- lovers traditional caf, they have not performed up to expectations in this area. 2. Perceived as an expensive brand: Customer perceptions of Baristas prices and value for money are quite negative. Even though the prices of Barista and Caf Coffee Day are almost identical, Barista is still perceived as the more expensive brand. 3. Inconvenient delivery process: On a smaller note, Baristas self- service delivery process received almost unanimous complaints from respondents of the market survey. They found it inconvenient to go back to the counter just to receive their order.

Caf Coffee Day

1. Weak brand image: The Caf Coffee Day brand, although clearly a youth- oriented brand, lacks the power and strength expected to maintain brand loyalty. The brand doesnt project a clear image to customers about what Caf Coffee Day is all about. This could prove as a deterrent during future national and international expansion. 2. Inefficient human resources: According to the market survey, Caf Coffee Days staff received only an average rating for their behavior and service. Caf Coffee Day needs to work hard at this aspect, especially considering they are a service sector organization that is looking at large expansion. 3. Ambience & Dcor: The Ambience & Dcor of Caf Coffee Day outlets received a belowaverage rating from respondents of the market survey. A lot of respondents did not like the fact that Caf Coffee Day outlets and literature served as prime space for a lot of advertising and promotions. They felt as if the cafs had been hijacked just for advertising.

RECOMMENDATION & SUGGESTIONS

Barista has an extremely strong brand image, but they need to work hard on improving their customer perception of being and expensive brand. Barista and Caf Coffee Day have almost identical pricing, but Barista is still perceived as the more expensive brand. Thats why my first recommendation for Barista is, to carry out a promotion campaign to ensure that their target market is well aware of their current low prices. This would help change customer perception and turn Barista into an affordable brand. Another backlash of having such a strong traditional caf brand image is that customers have very high expectations of the taste & quality of products. Barista needs to work hard at this aspect, especially for coffee and eatables products. My second recommendation is for Barista to look at its coffee beans suppliers and coffee brewing process to ensure that it is the best it can be. This is especially important considering the international expansion Barista is undertaking. Barista should also look at the Taj, their national suppliers for eatables and desserts, and either improve the taste & quality of eatable, or look at another supplier- because as of now, they are not living up to expectations, and losing customers to Caf Coffee Day. On a smaller note: the Barista delivery process should change, so that a caf attendant delivers the coffee to the table. This may seem insignificant, but it can go a long way in improving customer satisfaction.

Barista

Caf Coffee Day has done extremely well so far to project itself as an affordable youth- oriented brand. But there are still certain areas where their brand needs to be much stronger. With regard to the physical evidence associated with the brand, Caf Coffee Day needs to do a lot of work if they hope to catch up with Barista. My first recommendation for Caf Coffee Day is to clean up the dcor at every outlet, wherever unnecessary advertising is taking place.

Caf Coffee Day

Although it might be an important source of revenue, long-term customer perception of the brand isnt very positive. Caf Coffee Day would do better to provide promotional space for its partners with the use of clever collaborations, and not printed advertisements and posters everywhere. My second recommendation is that Caf Coffee Day looks at its current recruitment, selection and most importantly, its current training policies. Customers are not happy with the behavior and service of the staff, and Caf Coffee Day is lagging far behind Barista is this aspect.

BIBLIOGRAPHY
WWW.YAHOO.COM WWW.GOOGLE.COM
www.barista.co.in- Search engines Case Study www.google.com- Search engines The data was collected based on information provided by: 1. The management of the organization. 2. Customers visiting Barista and Caf Coffee Day outlets. Besides the primary data collected with the help of the questionnaire, I have also collected the relevant secondary data from various sources like magazines, and Internet and newspapers. Based on the relevant primary and secondary data, a comparative analysis has been done so as to find out the areas of excellence and areas of improvement of both organizations. The areas of excellence and improvement have been identified based on factual information, in light of which recommendations and suggestions have been provided for the overall improvement of the organizations in the future.

Coffee has two virtues: it is wet and warm.