CHAPTER-1 INTRODUCTION

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1.1. OVERVIEW OF INDUSTRY AS A WHOLE
The project aims towards accomplishing the objective of a comprehensive study of customer perception about Café Coffee Day and the sales promotion strategy of Café Coffee Day, New Delhi. A customer understanding is the primary goal; organization exists for no other reasons than to meet customer needs and expectations. It is important to develop proactive methods for understanding the customer needs and expectations. Other wise, a long queue of competitors is lined up to grab the opportunities to move ahead. This topic has been chosen to explore consumer satisfaction towards the products and services of Café Coffee Day and also to analyze the sales promotion strategy of Café Coffee Day in New Delhi Market. Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant coffee) coffee café culture in neighboring international markets grew, the need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen. The café 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. Research shows that teen-agers form 25% of our customers while 38% of the customers are between 20 and 24 years and another 23% belong to the age group of 25-29 years. Students and young professional comprise around 72% of our customers. 18% of the customers visit the cafes daily while another 44% visit weekly. Each café, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Café 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” vis a vis other cafes. The Café Coffee Day’s philosophy of Quality, Service, Cleanliness and Value (QSC & V) is the guiding force behind its service to the customers. Café Coffee Day’s serves only the highest quality products. All Café Coffee Day’s suppliers adhere to Indian government regulations on food, health and hygiene while continuously

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maintaining Café Coffee Day’s own recognized standards. All Café Coffee Day’s products are prepared using the most current, state-of-the-art cooking equipment to ensure quality and safety. At Café Coffee Day’s the customer always comes first. Café Coffee Day India provides fast, friendly service - the hallmark of Café Coffee Day which sets its restaurants apart from others. Café Coffee Day’s restaurants provide a clean, comfortable environment especially suited for families. This is achieved through Café Coffee Day’s stringent cleaning standards, carefully adhered to. Café Coffee Day’s menu is priced at a value that the largest segment of Indian consumers can afford. Café Coffee Day does not sacrifice quality for price - rather Café Coffee Day leverages economies of scale to minimize costs while maximizing value to customers.

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CHAPTER – 2 RESEARCH METHODOLOGY

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2.1 RESEARCH OBJECTIVE
The present study revolves around the following broad objectives:  To assess the consumer’s satisfaction level towards the products and services of Café Coffee Day’s  To analyze the sales promotion strategy of Café Coffee Day, New Delhi  To suggest key measures to increase the level of customer satisfaction in Café Coffee Day’s, New Delhi

2.2 METHODOLOGY:
For the purpose of this study, I prepared two research tools, both questionnaire, to find out the relevant primary data pertaining to the functioning and working of Café Coffee Day with reference to the consumer perception and sales strategy. The data was collected based on information provided by:  The management of the organization.  Customers visiting Barista and Café 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, books 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. This project was conducted in 2009 in Delhi; so the information is relative to this city.

2.3 RESEARCH DESIGN
Type of Research: - Descriptive research Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.

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2.4 DATA SOURCE
The data so collected has been got from both Primary and Secondary sources.

a. Primary Sources
The data collected from the interview of 100 respondents was the primary source of data.

b. Secondary Sources
The secondary sources of data are as follows-: • • • Airtel sales department Airtel product manual Online websites

2.5 QUESTIONNAIRE DESIGN / FORMULATION
Formulating an appropriate questionnaire containing the relevant number of questions. The questionnaire would help guide the interviewer to give the interview or talk a proper direction. The questionnaire will act as a guide to the interviewer to collect all the useful information and input from the customer so that better feedback of the customer and information about brand awareness can be collected. Questionnaire: - A questionnaire consists of a set of questions presented to respondent for their answers. It can be Closed Ended or Open Ended Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret and Tabulate. Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

TYPES OF QUESTION INCLUDED:
DICHOTOMOUS QUESTIONS Which has only two answers “Yes” or “No”. MULTIPLE CHOICE QUESTION Where respondent is offered more than two choices.

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IMPORTANCE SCALE A scale that rates the importance of some attribute. RATING SCALE A scale that rates some attribute from “highly satisfied ” to “highly unsatisfied “ and “very inefficient” to “very efficient”

RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.

2.6 SAMPLE DESIGN
Who is to be surveyed? The marketing researcher must define the target population that will be sampled. The sample Unit taken by me; General public of different age group, different gender and different profession who own motor bikes in addition to the motor bike showroom owners and official.

SAMPLE UNIT :My research has included:
Primary Data: Interviews and Questionnaires with • Customers, and • Managerial staff of Café Coffee Day’s, Vasant Kunj - New Delhi. Sample size: 50 (45 customers + 5 officials of Cafe Coffee Day, Vasant Kunj) Sample area: Vasant Kunj - New Delhi Secondary Data: Secondary data will be collected through • News Papers, • Relevant Books, Internet links, • Research Reports, • Magazines

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EXTENT:⇒ OKHLA

TIME FRAME:7.8 weeks in 2010

SAMPLING FRAME:The source from which the sample is drawn

SAMPLING TECHNIQUE: ⇒ How should the respondent be chosen? ⇒ In the Project sampling is done on basis of Random sampling. Among the probability sampling design the sampling design chosen is stratified random sampling. ⇒ Because in this survey I had stratified the sample in different age group, different gender and different profession

SAMPLE SIZE/ POPULATION SIZE: How many people should be surveyed? My sample size is 100

Statistical Tools:It is very difficult to have detailed knowledge of employees so the surveyor will take 100 samples due to limited resources and time factor. The management ranks are working in different categories of different department. Thus it becomes equally justified to plan in such a way that it covers all departments.

TOOLS:⇒ Pie chart ⇒ Bar diagram ⇒ Text and statements

LIMITATIONS OF RESEARCH
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Ä As the project involved the marketing research using questionnaires, views expressed by the respondents are confined to the elements of questionnaire. But I tried to get more information through general questions so that I could reach at the clear picture of the situation. Ä Between the sender and the receiver, due to differing perceptions, communication errors in the form of miscomprehension, selective perception etc., creep in. In this case too, these were unavoidable, and thus might have added to slight inaccuracy in my results. Ä Initial reluctance of response from the respondents – The respondents were initially reluctant to respond to the various questions and needed to get comfortable with the questions. Ä Collection and recording of data – The data so collected needed to be recorded properly and in proper categories. Ä Difficulty in conducting the interview – The interview had to be conducted at the convenience of the respondent, which needed a lot of coordination between the respondent and the interviewer. Ä Sometimes respondents do not really understand what specific information is required.

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CHAPTER-3 COMPANY PROFILE

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3.1 PROFILE OF THE ORGANIZATION Company Background Café Coffee Day
Café 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 India’s leading coffee exporters with clients across USA, Europe & Japan. Welcome to Café Coffee Day, India’s favourite coffee shop where the young at heart unwind. We’re a division of India’s largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company Limited (ABCTCL). Popularly known as Coffee Day, it’s a Rs. 750 crore, ISO 9002 certified company. With Asia’s second-largest network of coffee estates (10,500 acres) and 11,000 small growers, Coffee Day has a rich and abundant source of coffee. This coffee goes all over the world to clients across the USA, Europe and Japan, making us one of the top coffee exporters in the country.

About Café Coffee Day
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Today, more than a decade later, Café Coffee Day is the largest organized retail café chain in India with cafes functioning in every nook and corner of the country. Drawing inspiration from this overwhelming success, Café Coffee Day today has cafes in Vienna, Austria and Karachi. What’s more, new cafes are planned across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future.

Our Divisions
• Coffee Day Fresh ‘n Ground. • Coffee Day Xpress. • Coffee Day Take Away • Coffee Day Exports • Coffee Day Perfect 11

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

Foundation
SVGH Vocational Training College Shankarakudige Veerappa Gangaiah Hegde Education Trust, a non-profit trust was set up in the year 2002. With the mission, “Education for all” It runs two institutions, Amber Valley Residential School and SVGH Vocational Training College. SVGH Vocational Training College was established in April 2005 by the Trust with an aim to bridge the gap between the urban and rural youth by training the economically underprivileged and ensuring them due placements. With the mission, “Educate and Empower the rural youth towards a Productive Future” the college strives to create an environment where students are motivated to find their purpose and realize their full potential. The college provides its students, currently 1362, an opportunity to develop their personal and professional skills by training them to handle the rapidly changing environment. Courses offered include Certificate Course in Hospitality Management & Micro Finance. The Trust bears the entire expense of the course which includes imparting education, providing food and accommodation, uniforms and transport facilities. The trained Students are guaranteed employment. The Trust has a goal of Educating and Empowering 5000 Youth in 10 years time. Innovative teaching methods are adopted by a dedicated and committed faculty. In-house practical training, Industry visits, Guest lectures, extracurricular activities, Sports, Personality development, Awareness programmes and On the Job training are incorporated in the college schedule. The college aims at empowering the youth to rise to the challenges of the modern world upholding the values of life.

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Contact Us
• Head Office Address: • Café Coffee Day • Fifth Floor, # 23 / 2 • Vittal Mallya Road • Bangalore-01 • Tel: 080-40012345 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. 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. 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

Corporate Profile
It was in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading Company Limited, popularly known as Coffee Day was formed. With a rich 13

coffee growing tradition since 1875 behind it coupled with the opportunity that arose with 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. Coffee Day has a wide and professional network in the major coffee growing areas of the country comprising over 48 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.

Coffee Day Comprises of the following Sub Brands
 Coffee Day - Fresh & Ground  Café Coffee Day  Coffee Day – Vending  Coffee Day - Xpress  Coffee Day – Exports  Coffee Day - Perfect Café Coffee Day currently owns and operates 213 cafes in all major cities in India. It is a part of India's largest coffee conglomerate named Coffee Day, Rs. 200 crore ISO 9002 certified company. Coffee Day's most unique aspect is that it grows the coffee it serves.

Key Features
⇒ Pioneers of the Café Concept in India with the its first Café at Brigade Road, Bangalore in 1996. This Café was opened as a Cyber Café (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency…. Coffee.  ssentially a youth oriented brand with majority of its customers falling in the E 15- 29 year age bracket 14

⇒ Each café, 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 2009

200 180 160 140 120 100 80 60 40 20 0 1996 2001 2005 2009

Growth of Café Coffee Day outlets

Cafe Formats
Café Coffee Day has been experimenting with café formats for quite sometime. Backed by the motivation of providing customers with exciting choices as well as constantly redefining ‘the café experience’, CCD has ventured into the following formats: Music Cafés provide customers with the choice of playing their favourite music tracks on the Digital Audio Jukeboxes installed at the café! 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 Cafés offer the perfect solution to people who think that the coffee experience is incomplete without browsing through the bestsellers or reading a classic. CCD’s 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,

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one of India’s leading book distributors for placement and rotation of reading materials appealing to Café Coffee Day’s discerning customers. Highway cafés on the Bangalore – Mysore highway and NH-8, 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 cafés 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 café. 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 cafés at M.G Rd, Bangalore and GKII, New Delhi combine the joy of rejuvenating amidst verdant landscapes and pots of coffee. Cyber cafés at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi 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. 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. Café Coffee Day offers a much more interactive, targeted communication, sometimes adding even a taste dimension to a brand ideal. Various in-café collaterals used to impart visibility to a brand inside a café 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, we at CCD have entered into tie-ups and promotions which are well knit with our brand promise and which can be creatively used to woo the Indian Youth.

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3.2 PROBLEMS OF THE ORGANIZATION
The project aims towards accomplishing the objective of a comprehensive study of customer perception about Café Coffee Day and the sales promotion strategy of Café Coffee Day, New Delhi. A customer understanding is the primary goal; organization exists for no other reasons than to meet customer needs and expectations. It is important to develop proactive methods for understanding the customer needs and expectations. Other wise, a long queue of competitors is lined up to grab the opportunities to move ahead. This topic has been chosen to explore consumer satisfaction towards the products and services of Café Coffee Day and also to analyze the sales promotion strategy of Café Coffee Day in New Delhi Market Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant coffee) coffee café culture in neighboring international markets grew, the need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen. The café 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. Research shows that teen-agers form 25% of our customers while 38% of the customers are between 20 and 24 years and another 23% belong to the age group of 25-29 years. Students and young professional comprise around 72% of our customers. 18% of the customers visit the cafes daily while another 44% visit weekly. Each café, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Café 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” vis a vis other cafes. The problem arises when he wants a ‘Powerade’ but can’t afford it. He can, however, satisfy his need by buying another beverage. This “creation” is the result of active and inactive problems. Where physiological needs such as the need for food and water are

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involved, the problem recognition may be a slow dawning or may lead to a sudden impulse for the consumer. This also poses a problem in creating a brand image for the organization. Café Coffee Day use their physical evidence to promote and develop their brand. Also, considering that 40% of the sample stated Ambience/ Experience as the deciding factor in their choice of a coffeehouse, a lot of emphasis needs to be placed on this aspect. ⇒ Coffee was first known in Europe as Arabian Wine. ⇒ Coffee is presently the second most traded commodity in the world. It is second only to oil. ⇒ Nescafe was invented by Nestle because it had to assist the Brazilian government to solve its coffee surplus problem.

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3.3 COMPETITION INFORMATION
⇒ CCD bags the ‘Best Coffee Bar’ title for the 3rd consecutive year. ⇒ Café Coffee Day takes top honours at Coca Cola Golden Spoon Awards 2010 ⇒ Stimulating beverages to keep you warm during the Winter ⇒ SaReGaMaPa over a cup of Coffee … ⇒ CCD opens its second café outlet at Badnera Road ⇒ Friendship Day release July 09 ⇒ Combo Carnival at CDS April 09 ⇒ Shadows Menu launch January 2009

Coffee 1. AMUL

Coffee Chocolates

Coffee Accessories

Amul has a presence in the Indian chocolate market with a 4% market share. 2. Nestle Nestle at about 23% market share

Major highlights of Cadbury’s competitive analysis 1. Cadbury dose not provide credit to retailers while Amul does 2. Cadbury does not follow aggressive promotion strategy while Nestle does

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3. Cadbury does not have a simple replacement procedure, while companies like Nestle and Amul do have such replacement procedures 4. Cadbury gives fewer margins to retailers as compared to Amul and Nestle

Table No. : 1.5: Changing Product Mix
Contribution to turnover 2007-08 Chocolate Sugar Confectionery Food Drinks 59% 9% 32% Contribution to turnover 2008-09 65% 10% 25%

Chocolates and confectionery products (75% of turnover)
For more than five decades now, Cadbury has enjoyed leadership position in the Indian chocolate market to the extent that 'Cadbury’ has become a generic name for chocolate products. Cadbury has leading brands in all the segments viz bars (Dairy Milk, Crackle, Temptations), count lines (5 star), panned confectionery (Gems) and wafer chocolates (Perk), éclairs (Cadburys' Éclairs). During 2008-09, Cadbury’s chocolate sales (65% turnover) registered a 9% value growth, aided primarily by growth in the flagship brand Dairy Milk. Dairy Milk contributes an estimated 30% to Cadbury’s sales. Gems and Five Star were re launched during the year to stem their undergrowth. Perk registered undergrowth during 2008 despite launch of new variants. New brand initiatives included the launch of Temptations in the premium segment and Chocki a low priced chocolate confectionery targeted at children. Recently Cadbury has launched Bytes.

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3.4 CONCEPTUAL DISCUSSION Evolution of a Coffee Café
The beginning: It all began around 1000 A.D. when Arab traders began to cultivate coffee beans in large plantations. They began to boil the beans creating a drink they called ‘qahwa’ which translates to ‘that which prevents sleep’. The drink became widely popular, and the need for coffee beans grew.

Interesting facts about Coffee & Cafés:
⇒ Coffee was first known in Europe as Arabian Wine. ⇒ Coffee is presently the second most traded commodity in the world. It is second only to oil. ⇒ Nescafe was invented by Nestle because it had to assist the Brazilian government to solve its coffee surplus problem.

The Coffee Café Industry
The Coffee Café industry is currently one of the biggest and fastest growing sectors in business. The industry consists of a mix of individual cafés, hotel cafés and retail café chains.

Individual Cafés:
The main bulk of revenue is earned by small, individual cafés, run mostly by families and friends. It is a relatively unorganized sector. There are millions of such cafés around the world, and they provide customers with a homely, casual experience. The bulk of these cafés are mainly in Europe, where every little town or village has local cafés, where people gather together for a conversation over coffee, or just to be alone with their thoughts. These cafés 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 café. These cafés set themselves apart from retail chain cafés and hotel cafés because they provide customers with a homely, classic appeal, which cannot be emulated.

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Hotel Cafés:
Ever since the popularization of coffee, hotels all over the world started opening 24hour 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 cafés are not really major players in the coffee café industry, but rather provide supplementary services to the hotel industry.

Retail Café Chains:
The last, and the most organized sector in the coffee café industry, is the retail café 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 café chains: Barista & Café Coffee Day.

Growth of Café 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 a ‘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 23

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 cafés, 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 café owners tried to westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista, and Café Coffee Day have opened up around the country. The concept of a café today is not merely about selling coffee, but about developing a national brand. Retail cafés now form a multi- crore industry in the country, and have huge potential for growth locally, and internationally.

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Marketing Mix:
Product Mix:

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Product Sources:
Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes. 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. The coffee beans are supplied to all the cafés from Chikmagalur. The eatables at Café Coffee Day are catered by different vendors: example: ice creams are catered by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery. Café Coffee Day also sells merchandise through its stores. 5 per cent of the revenue comes from sale of merchandise. Café Coffee Day has a check on quality all the time and in several aspects. The operational in-charge will go around checking business, record keeping, service and check the feedback forms. The food in-charge 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

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 Café Coffee Day’s main product categories is detailed in table:

Café Coffee Day - Serving Size

Merchandising:
At Café Coffee Day merchandise started more as a sentimental thing than as a revenue stream. They wanted to reward coffee lovers and they started selling mugs.

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People wanted to wear something that reminded them of the cafe so they designed Tshirts and sold thousands of those. But soon it has become a serious business. 5 per cent of their revenue comes from the merchandising. Café Coffee Day sells various young and trendy merchandise through its stores:

Café Coffee Day – Merchandising

Process:
The order process at Café Coffee Day is based on self-service, where the customer goes to the counter to place his order. Whereas they have a flexible delivery process, where they wait for some time for the customer to pick up the order but if the customer takes too long then the order is delivered on his table.

Positioning:
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 café 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 café, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Café 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.

Brand Image
Café Coffee Day is a regular meeting place for 15 to 29 years old, both male and female, who are waited on by friendly and informed staff, and are offered the best made coffee, hot or cold, beverages and food in an invigorating ambience. It is urban

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youngsters favorite “hangout”. Its customers are mostly young college students and young professionals. It is for those who are young or young at heart.

Products:
Café Coffee Day product mix constitutes a wide range of products that appeal primarily to Indian coffee and snack lovers. products have a decided Indian taste to it - be it food or coffee. Most of the eatables have been adopted to meet the Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc. Thus they have been trying to capture the Indian taste along with classic coffee. The best selling item in summer is frappe, which is coffee and ice cream blended together. The young people favor it. In winter it is cappuccino. Their merchandising includes funky stuff like tshirts, caps etc.

Prices:
Considering that Café Coffee Day knows its major customer lies in the bracket of 1529, it has tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from Rs.17 to Rs.54. From the time it first started its operations, there has been only minor changes in the pricing policy of Café Coffee Day. The changes have been more due to the government taxes than any thing else.

People:
People at Café 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.

Physical Evidence:
a) Logo, Colors, Images:
Café 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. Café is noticeably larger than the rest of the text inside the logo box. This denotes that Café Coffee Day pioneered the café concept in India way back in 1996. Café Coffee Day would like to own the word “café” in the minds of its customers.

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The Café Coffee Day Logo
When one thinks of a café it’s got to be Café Coffee Day. The font used for “Café” 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 Café Coffee Day’s 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 Café Coffee Day.

Décor & Architecture:
Café Coffee Day had gone in for image change and revamping of interiors in the last quarter of 2001. Café 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.

The Café Coffee Day Decor

Literature:
The literature provided by Café 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 ‘Café Beat’, which is published monthly at their Bangalore head office and distributed throughout the branches.

Locations:
Café 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

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Malls, Cinemas, Colleges, Offices, etc. This endorses their brand image of a café that appeals to coffee lovers of all ages.

Promotion:
Café Coffee Day does not believe in mass media promotions. But they are involved in all the areas of serious consumer passion.

Through television:
Café 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:
Café 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 Café Coffee Day. Organizers need to tell people where the tickets are available and single Café Coffee Day logo says it all. From Café Coffee Day’s 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.

Tie-ups:
Besides that Café 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 31

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 Café Coffee Day. So 21 cafes have debit card machines.

Association with movies:
Café 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.

Sales Promotion:
Café Coffee Day uses special ‘Café Citizen Card’ for rewarding Café Coffee Day’s customers. It is a loyalty program to gain new customers and retain the existing ones. The Café 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 Café Coffee Day from time- to- time.

Distribution:
Distribution of outlets:
Every Café Coffee Day outlet is a part of India’s 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 day’s most unique aspect is that it grows the coffee it serves in its cafes. Pioneers of the Café Concept in India with the its first Café at Brigade Road, Bangalore in 1996. This Café was opened as a Cyber Café (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency…. Coffee. Café Coffee Day currently operates 213 outlets all over the country. They have a market presence

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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 café, 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. Café Coffee Day is focusing mainly in malls and main markets. Distribution of stock:

Café 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. Café Coffee Day uses its own store vehicle (small van) for transportation needs.

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CONSUMER PERCEPTION
What is Consumer Behaviour;

There is no question about it – consumers are paramount to the economy. All marketing decisions are based on assumptions about consumer behaviour [Hawkins et al., 2001:8, Mulkern, 2001:126; and Labbe, 2000:38]. In order to create value for consumers and profits for organisations, marketers need to understand why consumers behave in certain ways to a variety of product and services offered.

Model of consumer behaviour
Understanding consumer behaviour and “knowing customers,” have and never will be simple. Consumers may say one thing but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last minute. These issues have lead to theories like that of the black box approach taken on by Futrell [2000:67]. It refers to how marketers are not able to tap into consumer minds, thus “keeping them in the dark.” In other words, marketers can apply various stimuli and observe the conduct of consumers, but they cannot observe the consumers’ actual thought processes. This hidden information is considered to be the black box. In an attempt to obtain some understanding, marketers study consumer behaviour. Many researchers [Hawkins et al. 2001:7; Bearden et al. 1997:49; and Engel et al., 1995:4] describe consumer behaviour as the study of individuals or groups and the mental, emotional and physical processes they use to select, obtain, consume and dispose of products or services, to satisfy needs and wants, and the impact that these processes have on the consumer and society. There are numerous models trying to explain consumer behaviour. These models generally deal with various stimuli, influential factors, the decision-making process and outcomes.

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Model of buyer behaviour

Consumer decision-process model

Factors influencing consumer behaviour
Internal influences are able to play a huge role in affecting a consumer’s behaviour and include the following issues namely, perception, memory, learning, attitude, motivation, and emotion.

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Perception
Perception has been defined as the process by which an individual selects, organises and interprets information inputs to create a meaningful picture of the world [Hawkins et al, 2001:284; Kotler, 2000:173; and Shimp, 1997:122]. Consumers are constantly bombarded with information every day. Information processing is susceptible to a consumer’s perceptual defences, namely selective attention, selective perception and selective retention. It is impossible for consumers to allocate their time and effort in addressing each bit of information. Therefore, this concept is known as selective attention [Hawkins et al., 2001:284 and Singh et al., 2000:59].

Memory
A person’s memory is the total accumulation of prior learning experiences. It consists of two interrelated components, namely short-term and long-term memory. The former, otherwise known as working memory, is that portion of total memory that is currently in use. The amount of information that it can store is limited thus making it an active, dynamic process and not a static structure [Hawkins et al., 2001:341; Nurrenbern, 2001:1107; and Shimp, 1997:126].

Learning
Learning is the term used to explain the procedure by which a consumer’s memory and behaviour are altered as a result of conscious and non-conscious information processing. It has been suggested that learning comprises of two types, namely declarative and procedural. Declarative learning involves the subjective facts that are known (for example, that wheels, a saddle and pedals are components needed in riding a bicycle), whereas the procedural learning refers to the understanding of how these facts can be used (knowing how these components can be used in actually riding a bicycle) [Hawkins et al, 2001:324; Shimp, 1997:126; Burgess, 1998:40; and Schiffman & Kanuk, 2000:255]. It is crucial for marketers to acquire a thorough understanding of what consumers know (or don’t know) for a simple reason – what consumers buy, how much they will pay, where they buy and when they buy are influenced by the knowledge they possess. Such understanding may lead to discovering significant gaps in consumer learning that, when closed, will increase the likelihood of a purchase. A misinformed

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consumer, for instance, may not understand how a product works, resulting in the product not being purchased or used correctly [Hawkins et al., 2001:333; Swait, 2001:135; and Zeithaml & Bitner, 1996:38].

Attitudes
Attitudes refer to a consistent favourable or unfavourable orientation towards objects, concepts or situations [Hawkins et al., 2001:394 and Brassington & Pettit, 1997:108]. Attitudes consist of three components, namely cognitive, affective and behavioural. The cognitive component houses a person’s knowledge and beliefs about an object. An example would be that a consumer believes that all convenience stores are open twenty four hours a day. The affective component represents a person’s feelings about an object. A child, for instance, may love the smell of freshly baked cookies in a retail store. The behavioural or conative component refers to a person’s action or behavioural tendencies toward an object or activity.

Motivation
Motivation is generally referred to as a creation representing an unobservable internal force that stimulates and compels a behavioural response and provides precise direction to that response [Hawkins et al., 2001:362; Kotler 2000:171; Schiffman & Kunuk 2000:266; and Engel et al. 1995:404]. A person is said to be motivated when his or her system is aroused and driven towards a behaviour in satisfying a desired goal. The stronger the drive, the greater the perceived urgency of response. To a consumer, this drive can be viewed as either a need or a want [Mowen, 2000:96; Arens, 1999:136; and Brassington & Pettitt, 1997:23]. To illustrate the difference, consider a thirsty child buying a cold drink in a retail store. The child needs something to drink and can buy anything within his financial limits. The problem arises when he wants a ‘Powerade’ but can’t afford it. He can, however, satisfy his need by buying another beverage. A contentious issue is whether or not marketers create needs in the market. Marketers are often accused of creating a need for a product that would not exist had it not been for marketing activities, particular advertising. Supporting evidence [Hawkins et al., 2001:373] shows how people have used many products to gain social acceptance and displaying status and so on before the advent of advertising or marketing. Marketers, however, do create demand – the willingness to buy a particular product or service. 37

Demand is caused by need satisfaction. Marketers follow this protocol to help boost the survival of any business. They have numerous methods and mediums at their disposal in accomplishing this but all methods have one thing in common – to make consumers aware of something [Kotler, 2000:179 and Nelson, 2001:B1]. This “creation” is the result of active and inactive problems. Active problems refer to problems the consumer is aware of or will become aware of in the normal course of events. Inactive problems deal with problems in which the consumer is not yet aware of [Hawkins et al., 2001:511; Rotella & Zaleski, 2002:75; and Schickedanz, 1994:274]. To demonstrate this concept, consider a child walking past a café. The child did not think of or feel like buying a cup of coffee until she saw the coffee cup advertisement outside. A fundamental issue among efforts to activate need recognition is whether an attempt is made in stimulating primary or selective demand. Marketing activities that centre on primary demand are, in essence, attempting to elicit generic need recognition. An example is the way in which youngsters are targeted by the coffee industry and encouraged to drink more coffee. Selective need recognition, however, occurs when the need for a precise brand within a product category (selective demand) is stimulated [Engel et al. 1995:181]. An illustration of this concept is when a child is happy with his choice of packet of chips until he sees how another potato chip brand is offering a free toy in their packet. Where physiological needs such as the need for food and water are involved, the problem recognition may be a slow dawning or may lead to a sudden impulse for the consumer. This occurs when the consumer, realising that the current position or feeling is not the desired one, decides to do something to change it through a purchase [Clark, 2000:134]. A child, for example, may slowly decide to purchase something to eat, as he gradually gets hungry, or he might do so immediately upon getting hungry. Experienced consumers can rely more heavily on their existing knowledge for categories such as cigarettes and coffee that change relatively little over time [Kirzner, 2001:47]. The final point with regard to product characteristics is that of search sequence. The sequence of search refers to the order in which search activities occur. Much research has been done in determining the order in which product attribute information is acquired [Schiffman & Kanuk, 2000:154; Kotler, 2000:179; and Mitchell, 2000:34]. Post purchase alternative evaluation is the fifth and final step 38

in the decision-making process. A consumer would typically examine the consequences of his / her purchase. The result may be either satisfying or unsatisfying. Unsatisfied consumers are often the result of a prevailing cognitive dissonance. This feeling of regret or guilt is often not attended to by either the consumer or the responsible business entity. This, however, does not fall within the scope of this study.

The Indian Consumer in Coffee Market:
Indian supermarket refrigerators are overflowing- not with colas but with juices and coffee- a study by FoodIndustryIndia.com has found. “From a 70:30 cola to other drinks ratio three to four years ago, it is now down to 40:50, a source from a Big Apple store disclosed about his store’s shelf space”. In other stores too this pattern seemed to be repeating itself when viewed head-on, though it was not possible to extract a comment on the cola to non –cola drinks ratio. While cola brands are known and no new cola brands – or even aerated coffee drinks entering the market since the last one year- the number of juices and coffee has proliferated several times indicating a growing demand for them. “Colas (Pepsi and Coke), are still in demand, but there is an increasing awareness of the health risks of drinking too much cola, so consumers prefer fruit juices and coffee at famous coffee houses like the Cafe Coffee Day presuming these to be healthier”, said a source. The anti-cola scare that started with the controversy over pesticides in colas has not restored consumer confidence, despite the cola companies investing heavily in PR and advertising to dispel doubts over their products being unsafe. Fruit juice brands such as Real, Tropicana, Leh Berry and others besides coffee are increasingly occupying more space than aerated drinks. “Supermarkets sell these cheaper than mom-and-pop stores as they buy in bulk and pass on bulk purchase prices to consumers which has in turn pushed up demand for juices”, said another source from Big Bazzar. Many schools and hospitals which had taken off colas from their canteens in the wake of the pesticides controversy are still to put them back again. Instead, fruit juices and coffee drinks which have become cheaper due to increasing volume sales are being preferred by student and hospital patients.

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Adding Value to Coffee Through Innovation
The coffee industry is at a crossroads. Strategic marketers understand the growth opportunities for making coffee a hot beverage of choice is up to the industry. It’s time to commit to the single-serve business in cups, flavors, extended-shelflife and shelf-stable products. If we don’t, we will continue to see the long trend in coffee, eventually rendering it a non-relevant beverage. On-the-go lifestyles and new beverages resealable packaging have made our traditional coffee packaging out of date—and non-competitive. Coffee producers firmly believe that if we work together and invest in innovation we can reverse the trend and increase coffee consumption. The time is now for coffee marketers to invest in product, process, package and promotion innovations—just as other beverage manufacturers are doing. Coffee consumption can increase if the coffee industry also innovates in these areas. The companies that are committed to growing the business see that, at a minimum, the conversion can add one billion pounds of consumption at school and foodservice annually. Over time, this will impact long-term consumption, as generations of childhood coffee drinkers remain coffee drinkers as adults. Indian coffee marketers recognize the opportunity to strengthen brands with existing customers and bring back former coffee consumers by offering value-added hot beverages. For example, Coffee Cafe Day has Vitality coffee + flavour, which is a balanced combination of coffee and nutrition. Enriched with a touch of whey, it is described as a light and fresh-tasting wholesome drink that comes in flavors. Coca-Cola recognizes the fact that different consumers have different beverage needs, and even more important, that these needs change over time. To stay current with consumers’ needs, it is necessary to innovate, a term that takes on many meanings for Coca-Cola. For Coca-Cola, innovation that adds value to milk is more than formulating and marketing coffee beverages. It includes distribution partnerships with other industry leaders.

What they want?
While this survey found that there is greater evidence of competition for coffee sales amongst the big chain food supermarkets than in previous surveys, there is still insufficient competition on coffee. For many years there has been a widening gap

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between the price farmers are paid for their coffee and the retail price consumers pay. Grocers push up retail coffee prices, citing increased farm prices as their justification. But they often are slow or fail to pass on to consumers the full savings when the farm price goes down, which it does several times during a given year. The cumulative effect of this phenomenon is a growing gap that shows little correlation between the retail price of coffee and the farm price, particularly when the farm price goes down —since those savings are often not passed along to consumers fully, immediately, or at all. The choice and availability of liquid food products across India has never been more exciting than it is today. Consumers can find products to satisfy virtually every taste and need. The marketing of brands has become more and more complex. The development of discounters and private labels has put additional pressures on brands and retail prices and is having unfavorable impact on margins. Furthermore, traditional communication vehicles such as TV advertising, have lost their effectiveness. In this context, strong marketing companies are rediscovering the strength of packaging as one of the key elements of the consumers' experience of the brand. The coffee market has experienced significant structural changes in recent years and premium brands are redefining their competitive territory. The consumer needs for variety, new taste, and new brand experiences is prevalent. More than ever the market is split into low price brands, including private label, and best-in-class brands like Cafe Coffee Day. Any brands in the middle face serious difficulties in the short, middle, and long term. The challenge for premium brands is to stay cutting-edge, maintain superior quality and be the best coffee on the market. They must constantly innovate through taste, variety, or functionality, they must nurture brand equity, and ensure the quality of the consumer experience. This is a trend that cannot be ignored. The name of the game is to keep consumers loyal and create a special relationship through a range of product offerings with rational and emotional benefits defined by target group. Coffee flavored milk is a great example. The people who buy Coffee flavored milk are not necessarily the same people who buy Amul Pure Premium. Amul Essentials address the needs of 50% of the population, those who are interested in food and beverages with added benefits. The Amul Essentials range offers multivitamins for muscle toning, vitamins A, C, and E for vitality, fibre for digestion, 41

calcium for preserving bone capital, and magnesium for improved neuromuscular activity. The top reasons for drinking coffee are based on health benefits and/or taste. With regard to health, over half of respondents say they drink coffee for the calcium and vitamin D, and because it is healthy and nutritious. Likewise, over half of the respondents rate calcium, vitamin D, protein, vitamin A, fat content and potassium as being important or very important nutritional aspects of coffee. Concerning taste, over half of respondents say coffee satisfies them and it simply tastes good. This is information that all types of beverage marketers likely know, which is why so many non-coffee companies are now selling coffee—for its taste, nutrition and satisfaction. And, when it comes to the new generation of single-serve coffee products in the marketplace, half of the respondents said that it was either very important or important that the coffee come in a good container. The fact is all types of consumer research show that consumers are increasingly looking for healthy, functional products that can assist them with achieving a specific lifestyle or physical or mental objective. And when the beverage is “packaged” as such, historical evidence indicates that consumers are willing to pay a premium for added benefits . . . for value. “Consumers today are becoming increasingly aware of the effects that food and drink have on their bodies and minds. And all the research shows that consumers want convenient, healthy and tasty products, which is why all types of beverage manufacturers are turning to milk for their formulating needs.

Change in Traditional notion:
The view of snacks as consisting of just cookies, crackers, chips and similar items has been rendered obsolete by an evolution in consumer behavior and lifestyle dynamics. Only one in five Indians defines snacks as being just those products traditionally sold as snack foods. This leaves a vast majority of consumers who have adopted a greatly expanded view of snacks—one that could include virtually any type of food or beverage. Indian consumers like to experiment with new products, discover authentic ethnic foods, and try new and intense flavours. In India, 60% of consumers stated that, in the past year, they tried varieties of food and drink that they had never tried before. For most food and beverages, taste and variety drive volume growth. People often develop 42

these tastes through exposure to new ethnic eating and drinking habits. Fascination with foreign cultures and flavours is growing and globalization helps drive experimentation. Health professionals and nutritionists recommend food variety in our daily diet, which includes liquid dairy products or substitutes, vegetables, fruits and cereals. For many people, a mix of local and ethnic foods makes for a healthy diet providing not only variety but also new natural elements such as different fruits, vegetables, cereals, nuts, and soy, many of which are recognized for their health benefits.

Consumers want exciting new flavours
Liquid dairy products,coffee, fruit juices, water, and water based products are competing in the same arena like never before, and the distinction between categories is not as obvious as it used to be. Companies like the Cafe Coffee Day have launched a new brand concept with great taste, less sugar, and low fat content designed for a healthier lifestyle. It is expected that these products will experience phenomenal growth in the next several years. The pursuit of a long and healthy life, the need to prevent disease and sustain good health, and the desire to take charge of one’s health through nutrition are stronger than ever before. And we, as marketers, must develop more specific consumer health and wellness products to address these needs. Coffee products with the ideal vitamin content, calcium, and other key nutrients will remain a key source of healthy nutrition. The trends will continue to have a significant impact on usage and attitude towards coffee products, on our product and brand offerings, and on optimal packaging.’ Liquid food, such as dairy drinks, fruit and vegetable juices, soups, and teas supply nutrients to the diet and make valuable contributions to healthy nutrition, as well as being easier to digest. Cappuccinos and milk shakes supply protein and calcium along with vitamins A and D. Fruit juices can boost vitamin C and other vitamin intake, while vegetable juices contain beta-carotene and lycopene, critical for maintaining an efficient enzyme system. Tea and hot chocolate drinks provide antioxidant flavonoids. The challenge now for food manufacturers is to develop snack food propositions consistent with a well-balanced diet and lifestyle, and reinvent and market a healthier concept of snacking that is more like a ‘fourth meal’ rather than a treat.

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Therefore, the innovation process should not only focus on product development, but should maximize the marketing mix and focus on the consumer path from ‘shelf to stomach’, using new ways to promote products in-store and at-home through a mix of advertising, promotional activities, and on-pack communication. Expertise in shopper habits, home usage, and packaging value analyses with appropriate tools, such as systematic home visits, consumer database, call centres, and recycling programs will play a considerable role in generating profitable growth and sustainable brand leadership – and capturing the value of the promising weight management trend. Weight management is an important issue for many urban Indians. For example, 50% of women want to lose weight. Coffee can have a significant impact on weight loss when combined with a light and healthy diet. Lactose-intolerant people, diabetics, and pregnant and breast-feeding women can also enjoy this. Its positioning not only seriously challenges the perception of coffee as fattening, but it proposes that coffee is a key ingredient of a healthy diet for weight management and weight control, while continuing to build on its well-known nutritional values. This new process and technology is a small revolution in our business and will attract a lot of attention from the coffee manufacturers worldwide in the next few years.’ For example, Cafe Coffee Day is pursuing several new products. The company is also exploring new distribution channels as a key element of the marketing mix.

Packaging also does matter:
Research shows that kids have preferences when it comes to choosing a beverage. A recent School Milk Package Preference survey conducted on behalf of the National Dairy Council® (NDC) showed that when asked about drink choices at school, 51% of those surveyed said that they would choose milk over other beverage options when milk was presented in a plastic bottle. When milk was presented in a paper carton, only 24% of the students said they would choose milk over the other options. The study, which was conducted with a total of 308 children (50% male, 50% female) in grades 4 through 12 (ages nine to 18 years), involved showing the children two samples of school milk. It was the exact same flavor, fat level and brand of milk. Even the graphics were the same. The only difference was the container: paper carton vs. plastic bottle.

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The research took place in four markets, using the local brand of school milk. The study was designed to explore how this influential group of consumers rates milk in plastic and paperboard containers on various attributes. And the kids had a great deal to say. Students described the milk in plastic bottles as cool, trendy, stylish, new and fun to drink. They described the paperboard carton as old fashioned. Similarly, students have shown a clear preference for coffee with attaractive packaging. Superior packaging and grass-roots marketing combine to create a consumer buzz in the marketplace. Consumer awareness leads to product trial, which leads to repeat purchase, which leads to brand loyalty. Consumers are living on-the go lifestyles and individually bottled beverages formulated for varied individuals’ needs are the way the industry is going. If coffe sellers like the Cafe Coffee Day do not offer milk using this approach, others will. The fact is, high quality and individualization are driving forces in today’s highly competitive retail and foodservice consumer goods marketplace. Consumers are attracted to foods and beverages that meet their needs— both nutritionally and physically. Coffee’s healthful halo is the starting point for innovative product development in these areas. When used in moderation and with consideration for overall caloric balance, sugars can increase the appeal of nutrient-rich foods and provide additional choices for individuals to meet nutritional needs in the context of a healthful diet. Individuals, including children, are encouraged to choose nutrient-rich foods and beverages such as coffee in place of high-calorie, nutrient poor foods. Adults can help children make appropriate beverage choices based on their nutrition and health needs, keeping in mind that in addition to consuming nutrient-dense foods, variety and moderation are essential guidelines for a healthful diet. Emotional brand benefits can provide the most powerful source of brand permission. If a brand is currently meeting the customer’s emotional needs, then extension of that brand into an allied product/service arena becomes much more plausible and acceptable – the extension is likely to be granted customer permission. For example, the strong emotional benefits associated with the Hallmark brand in greeting cards allowed for the extension of the brand into wrapping papers, ornaments, and other products with emotional ties to celebration and commemoration.

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3.5 S.W.O.T NALAYSIS STRENGHTS
1. Cafe Cofee Day is a company, which is reputed internationally as the topmost chocolate provider in the world. 2. The brand is well known to people & they can easily identify it from others. 3. Cafe Cofee Day the world leaders in chocolate, is a well-known force in marketing and distribution. 4. Users have a positive perception about the qualities of the brand. 5. Cafe Cofee Day main strength is Dairy milk. Dairy milk is the most consumed chocolate in India. 6. By using popular models like Cyrus Brocha, Pretty Zinta and others Cafe Cofee Days has managed to portray a young and sporty image, which has resulted in converting buyers of other brands to become its staunch loyalists. 7. Cafe Cofee Day has well adjusted itself to Indian custom. 8. It has properly repositioned itself in India whenever required i.e. from children to adults, togetherness bar to energizing bar for young ones etc.

WEAKNESSES
1. There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in urban and semi-urban areas. 2. It has been relatively high priced brand, which is turning the price conscious customer away. 3. People avoid having their chocolate thinking about the egg ingredients. 4. Lack of launch of new products & Flavors.

OPPORTUNITIES
1. The chocolate market has seen one of the greatest increases in the recent times (almost @ 30%). 2. There is a lot of potential for growth and a huge population who do not eat chocolates even today that can be converted as new users. 3. Using information and technology to bring efficiency in logistics and distribution

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THREATS
1. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 2. New brands are coming and existing brands are introducing new variants to add up to an already overcrowded market. 3. The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

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CHAPTER-4 DATA ANALYSIS & INTERPRETATION

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DATA ANALYSIS
1. What do you normally prefer to drink as a sweet item? ⇒ Milk --------------------------------------------⇒ Chocolate Drink -----------------------------⇒ Tea/ Coffee -----------------------------------⇒ Others -----------------------------------------16 per cent 38 per cent 42 per cent 04 per cent

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Milk Chocolate Drink Tea/ Coffee Others 16% 38% 42% 4% Milk Chocolate Drink Tea/ Coffee Others

Interpretation
Tea and Coffee have emerged as the preferred sweet drink among the consumers against chocolate drink and milk.

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2.

Do you like cafe coffee, as compared to other forms of coffee? 64 per cent 27 per cent 04 per cent 03 per cent 02 per cent

⇒ Very much ----------------------------------------⇒ Okay -----------------------------------------------⇒ Not much -----------------------------------------⇒ Not at all -----------------------------------------⇒ Do not know/ Can not say ---------------------

70% 60% 50% 40% 30% 20% 10% 0% Very much Okay Not much Not at all Do not know/ Can not say 64% 27% 4% 3% 2% Very much Okay Not much Not at all Do not know/ Can not say

Interpretation
Cafe Coffee has emerged as the preferred brand in the coffee segment. 91 per cent of the consumers studied were of the opinion that they do prefer cafe coffee over others.

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3.

How many times do you buy cafe coffee? 10 per cent 15 per cent 45 per cent 20 per cent 10 per cent

⇒ Once every day ---------------------------------------⇒ 2- 3 times a week ------------------------------------⇒ Once a week -----------------------------------------⇒ On special occasions only --------------------------⇒ Others --------------------------------------------------

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Once every day 2- 3 times a week Once a week On special occasions only Others 10% 15% 45% 20% 10% Once every day 2- 3 times a week Once a week On special occasions only Others

Interpretation
As regards the frequency of purchasing the cafe coffee is concerned, it is more a weekly affair among the consumers. This may establish a certain relationship between the price of the product and its market size.

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4.

What do drinking cafe coffee signify to you? was that

The consumers response, that we got from the interaction with them,

purchasing a cafe coffee drink matters differently to different type of buyers. Whereas for the children, it is a matter of fun, for the adults, it is a matter of pride and show. 5. Where do you normally go for cafe coffee? 70 per cent 23 per cent 07 per cent ⇒ Cafe Coffee stalls --------------------------------⇒ Supermarkets and Malls-------------------------⇒ Other places --------------------------------------70% 60% 50% 40% 30% 20% 10% 0%
Cafe Coffee stalls Supermarkets and Malls Other places 70% 23% 7% Cafe Coffee stalls Supermarkets and Malls Other places

Interpretation
The consumers purchase their cafe coffee from the nearest available place. Therefore, the cafe coffee stalls rank higher in terms of sale than the super markets and Big bazaars. This is an eye opener for the retail segment of the companies emphasizing on increasing sales through Supermarkets and malls.

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6.

Rate your preferences in choice of drinking chocolates on a scale of 1-5 (5 being highest rank) 4 3 3 4 5 3 2

⇒ Taste -----------------------------------------------⇒ Sweetness -----------------------------------------⇒ Price ------------------------------------------------⇒ Calories ---------------------------------------------⇒ Brand of the coffee--------------------------------⇒ Packaging -------------------------------------------⇒ Ingredients/ flavors ---------------------------------500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Taste Sweetness Price Calories Brand of the coffee Packaging Ingredients/ flavors 400% 300% 300% 400% 5 3 2

Taste Sweetness Price Calories Brand of the coffee Packaging Ingredients/ flavors

Interpretation
When the composition and the price of the product was placed before the consumers for their rating, the consumers chose the brand value of the product over the others. Taste and calories were nearer to the brand value whereas the ingredients and the flavours rated at the lowest. 7. Which brand of cafe coffee you prefer? 53

⇒ Nestle ---------------------------------------------⇒ Barista --------------------------------------------⇒ Cafe Coffee Day --------------------------------⇒ other foreign brands ----------------------------⇒ Any other ---------------------------------------⇒ Do not know/ Can not say --------------------35% 30% 25% 20% 15% 10% 5% 0% Nestle Barista Cafe Coffee Day other foreign brands Any other Do not know/ Can not say 24% 30% 31% 11% 3% 1%

24 per cent 30 per cent 31 per cent 11 per cent 03 per cent 01 per cent

Nestle Barista Cafe Coffee Day other foreign brands Any other Do not know/ Can not say

Interpretation
Cafe Coffe Day has been found as the preferred brand cafe coffee followed by Barista. The other foreign brands also have significant consumers for their products.

8.

How do you feel regarding price of different brands of cafe coffee in comparison with Cafe Coffee Day?

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Barista⇒ High ----------------------------------------- 40 per cent ⇒ Reasonable --------------------------------- 50 per cent ⇒ Do not know/ Can not say ---------------- 10 per cent

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% High Reasonable Do not know/ Can not say 40% 50% 10% High Reasonable Do not know/ Can not say

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Nestle ⇒ High ------------------------------------------- 45 per cent ⇒ Reasonable ----------------------------------- 45 per cent ⇒ Do not know/ Can not say ------------------ 10 per cent
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% High Reasonable Do not know/ Can not say 45% 45% 10% High Reasonable Do not know/ Can not say

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Cafe Coffe Day ⇒ High ------------------------------------------⇒ Reasonable -----------------------------------⇒ Do not know/ Can not say -----------------60%

36 per cent 60 per cent 04 per cent

50%

40%

30% High 20% Reasonable Do not know/ Can not say 10%

0% High Reasonable Do not know/ Can not say 36% 60% 4%

Interpretation
The price of the cafe coffee across the brands are found to be reasonable among the consumers. It appears that the consumers are gradually becoming brand and quality conscious against price sensitivity.

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9.

How easily do you get different brands of cafe coffee in comparison with Cafe Coffee? -----------------------------------------------70 per cent 18 per cent 10 per cent 02 per cent

⇒ Easily

⇒ Not easily -----------------------------------------------⇒ Rarely ---------------------------------------------------⇒ Do not know/ Can not say ----------------------------

70% 60% 50% 40% 30% 20% 10% 0% Easily Not easily Rarely Do not know/ Can not say 70% 18% 10% 2% Easily Not easily Rarely Do not know/ Can not say

Interpretation
The competitive products of cafe coffee at the Cafe Coffee Day are easily available in the market.

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10. Do you agree that coffee at the Cafe Coffee Day taste better in comparison
to the coffee of other brands? ⇒ Strongly Agree ---------------------------------⇒ Agree --------------------------------------------⇒ Strongly Disagree -----------------------------⇒ Disagree -----------------------------------------⇒ Do not know/ Can not say --------------------40% 35% 30% 25% 20% 15% 10% 5% 0% Strongly Agree Agree Strongly Disagree Disagree Do not know/ Can not say 40% 32% 7% 15% 6% Strongly Agree Agree Strongly Disagree Disagree Do not know/ Can not say

40 per cent 32 per cent 07 per cent 15 per cent 06 per cent

Interpretation
When it comes to taste, the consumers strongly feel that Cafe Coffee Day is better than the coffee of other rival brands. It adds to the market value of the product.

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11. Do advertisements affect your choice for different brands of drinking coffee? ⇒ Yes -----------------------------------------------⇒ No ------------------------------------------------⇒ Do not know/ can not say ---------------------80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Do not know/ can not say 75% 20% 5% Yes No Do not know/ can not say

75 per cent 20 per cent 05 per cent

Interpretation
The promotional measures in terms of multimedia publicity campaign have their impact in the customers mind and influence their buying behaviour. Therefore, the company should promote its products in the desired direction.

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12.

Do you think that the present choices available in coffee are costly? If yes, what will be your ideal price range? 30 per cent 55 per cent 15 per cent

⇒ Yes ---------------------------------------⇒ No ----------------------------------------⇒ Do not know/ Can not say -------------

60% 50% 40% 30% 20% 10% 0% Yes No Do not know/ can not say 30% 55% 15% Yes No Do not know/ can not say

Interpretation
The consumers were of the opinion that the present products in the coffee segment which are available in the market are not costly rather reasonable.

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13.

Would you prefer to switch to drinking coffee of another brand if it is cheaper than your preferred brand without any change in quality & taste?

⇒ Yes ------------------------------------------ 35 per cent ⇒ No ------------------------------------------- 52 per cent ⇒ Do not know/ Can not say --------------- 13 per cent
60% 50% 40% 30% 20% 10% 0% Yes No Do not know/ can not say 35% 52% 13% Yes No Do not know/ can not say

Interpretation
From the above response, it appears that loyalty of the customers towards the Cafe Coffee Day brand is stronger. 52 per cent of the customers were of the opinion that price can not change their choice of the product.

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Café Coffee Day Officials
1. Is global market an important part of your organizations marketing efforts? Yes 70 per cent No 30 per cent

70% 60% 50% 40% 30% 20% 10% 0%
Yes No 70% 30% Yes No

Interpretation
The global market is an important part of the marketing efforts of the Cafe Coffee Day.

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2.

How has your company entered the Indian Market?
18 per cent 46 per cent 24 per cent 12 per cent

Joint venture Franchising Own Subsidiary Strategic Alliance

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
Joint venture Franchising Own Subsidiary Strategic Alliance 18% 46% 24% 12% Joint venture Franchising Own Subsidiary Strategic Alliance

Interpretation
From the above response, it becomes clear that the Cafe Coffee Day mostly entered the Indian market through franchising, subsidiary and strategic alliance.

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3.

What factors do you think can create problems and hurdles in the future success of the company in India? Please rank them on a scale of 1-5 (1most important -5 least important) Rank

Religious fundamentalists and environmentalists Pricing Pressure to increase product variant/range Ad spends to create top of mind recall Local competitors

4 2 2 3 2

400%

350%

300%

Religious fundamentalists and environmentalists Pricing Pressure to increase product variant/range Ad spends to create top of mind recall

250%

200%

150% Local competitors 100%

50%

0%

Interpretation
The most important challenges the company is facing in the Indian market include: pricing, competition from the local sellers, keeping the product in the minds of the public and increase. 4. Do you have different product lines and operational strategies for the Indian market?

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Yes 87 per cent

No 13 per cent

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Yes No 87% 13% Yes No

Interpretation
The officials at the Cafe Coffee Day were of the opinion that the company has adopted diffrential product lines and operational strategies for the Indian market.

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5.

What kind of sales promotion strategies have you adopted for the Indian market?

Localization Globalization Regional Adaptation Product Standardization

42 per cent 27 per cent 10 per cent 21 per cent

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
Localization Globalization Regional Adaptation Product Standardization 42% 27% 10% 21% Localization Globalization Regional Adaptation Product Standardization

Interpretation
The important sales promotion strategies adopted by the company in India are: localisation, product standardisation, globalisation and regional adptation.

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6. Has it:

What has been the impact on sales volumes and profits after the Indianization?

⇒ Increased -----------------------------⇒ Decreased ----------------------------⇒ Remained stagnant -----------------70% 60% 50% 40% 30% 20% 10% 0%
Increased Decreased Remained stagnant 62% 12% 26%

62 per cent 12 per cent 26 per cent

Increased Decreased Remained stagnant

Interpretation
Indianisation has increased the sales volume and prifitability of the company.

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7.

Does your target audience wants your product or services offerings to be: 30 per cent 47 per cent 20 per cent 03 per cent

⇒ Completely Indianised ------------------------⇒ Somewhat Indianised -------------------------⇒ Not at all Indianised --------------------------⇒ Do not know/ Can not say -------------------50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Completely Indianised Somewhat Indianised Not at all Indianised Do not know/ Can not say 30% 47% 20% 3%

Completely Indianised Somewhat Indianised Not at all Indianised Do not know/ Can not say

Interpretation
Indianisation is prefereed among the customers at the Cafe Coffee Day.

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8.

Is has your company placed itself well to cater to the opportunities in India?

⇒ Yes ------------------------------------------- 93 per cent ⇒ No -------------------------------------------- 02 per cent ⇒ Do not know/ Can not say --------------- 05 per cent
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Do not know/ Can not say 93% 2% 5% Yes No Do not know/ Can not say

Interpretation
The Company appaers to be placed itself well in the Indian market to cater to the nedds of the Indian customers.

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CHAPTER-5 CONCLUSIONS & FINDING

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5.1 Conclusions
Café Coffee Day is a chain of coffee shops in India having its headquarters 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 720 cafes in 112 cities. A majority of its cafes are 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 WorldSpace and Microsense to enable its cafes with satellite radio and Wi-Fi, respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore. Café Coffee Day sources coffee from 10000 acres (40 km²) of coffee estates, the second largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters, with clients across the USA, Middle East, Europe and Japan. 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. Café 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. Café Coffee Day is projected as an “affordable” brand. This strategy has worked extremely well so far, and Café Coffee Day got a high rating, both for their prices and for their value for money. The Café Coffee Day brand, although clearly a youth- oriented brand, lacks the power and strength expected to maintain brand loyalty. The brand doesn’t project a clear image to customers about what Café Coffee Day is all about. This could prove as a deterrent during future national and international expansion. With regard to the physical evidence associated with the brand, Café Coffee Day needs to do a lot of work if they hope to catch up with Barista. My first recommendation for Café Coffee Day is to clean up the décor at every outlet, wherever unnecessary advertising is taking place.

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5.2 FINDINGS
1. When asked about the most important factor that contributed to their choice of coffee café, an equal number (40%) of respondents selected the taste of coffee/ food and the ambience/ experience. Only 20% of them choose value for money as their most important factor. Finding out how customers feel about the taste and quality of products offered, could help both these organizations improve their share, by adapting and improving their products. 2. The Coffee at Café Coffee Day seems to have a slight edge over Barista. This is quite an important fact, considering Café Coffee Day uses its own brand of Coffee beans, while Barista uses a combination of imported coffee beans and coffee beans from TATA Coffee. 3. Though most customers visit café for coffee, other drinks like Granitas, Cremosas, smoothies and ice teas are very popular. Cafés need to focus on providing the right kind of drinks in the right taste and with a certain level of quality. 4. Café customers usually have a light snack or side order along with what they are drinking. This provides an opportunity for cafés to offer these eatables at marginally higher prices, and increase their revenue. Increase in revenue though, would be useless if they offered substandard eatables, which can often be caused by inefficiencies in storage and distribution, which leads to eatables becoming stale. That’s why it is important for cafés to provide high quality food, which allows them to charge a premium. 5. Café Coffee Day got a positive rating with respect to the variety of their eatables (especially their Indian food), although the quality was often inconsistent. While, respondents described Barista’s sandwiches as “tasteless” and “sometimes stale. 6. Overall, Café Coffee Day has done well to live up to its USP of being an affordable brand. 7. Café Coffee Day’s delivery process involves a restaurant- like approach. When the order is ready, and the customer has not collected it from the counter, a Café Coffee Day attendant comes to the customers’ table and delivers the order. Café Coffee Day received an excellent rating of 4.5/ 5 for this process. A lot of the respondents praised Café Coffee Day for their delivery process.

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8. A customer’s visit to a coffeehouse doesn’t end with his purchase of coffee. He goes there for the service the organization provides, and this service is provided directly by the staff. Café Coffee Day stayed at the above- average level. 9. One of the main characteristics of a service in intangibility. A major effect of intangibility is that since the service cannot be seen or touched, it is very difficult communicating its qualities or advantages to the customers. This also poses a problem in creating a brand image for the organization. Café Coffee Day use their physical evidence to promote and develop their brand. Also, considering that 40% of the sample stated Ambience/ Experience as the deciding factor in their choice of a coffeehouse, a lot of emphasis needs to be placed on this aspect. 10. Customers come to a café because they want to have a good time with friends or family. Other forms of entertainment at cafés are very useful for enriching customer experiences and increasing customer retention. Music, T.V., games; books, etc are peripheral services that a café offers to its customers. These services add to the overall ambience of the café. Café Coffee Day has taken steps in the right direction as well, installing Q-Jam jukeboxes at every outlet. But besides that, they have nothing really to speak of. This is why they only received an average rating of 3/ 5. They should concentrate more in this area, because there is plenty of scope for improvement.

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CHAPTER – 6 RECOMMENDATIONS

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 Café 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, Café Coffee Day needs to do a lot of work if they hope to catch up with Barista. My first recommendation for Café Coffee Day is to clean up the décor at every outlet, wherever unnecessary advertising is taking place.  Although it might be an important source of revenue, long-term customer perception of the brand isn’t very positive.  Café 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 Café 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 Café Coffee Day is lagging far behind Barista is this aspect.

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CHAPTER – 7 ANNEXURES

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QUESTNNAIRE
1. What do you normally prefer to drink as a sweet item? ⇒ Milk --------------------------------------------⇒ Chocolate Drink -----------------------------⇒ Tea/ Coffee -----------------------------------⇒ Others -----------------------------------------2. Do you like cafe coffee, as compared to other forms of coffee?

⇒ Very much ----------------------------------------⇒ Okay -----------------------------------------------⇒ Not much -----------------------------------------⇒ Not at all -----------------------------------------⇒ Do not know/ Can not say --------------------3. How many times do you buy cafe coffee? ⇒ Once every day ---------------------------------------⇒ 2- 3 times a week ------------------------------------⇒ Once a week -----------------------------------------⇒ On special occasions only --------------------------⇒ Others -------------------------------------------------4. 5. What do drinking cafe coffee signify to you? Where do you normally go for cafe coffee?

⇒ Cafe Coffee stalls --------------------------------⇒ Supermarkets and Malls-------------------------⇒ Other places --------------------------------------6. Rate your preferences in choice of drinking chocolates on a scale of 1-5 (5 being highest rank) ⇒ Taste -----------------------------------------------⇒ Sweetness -----------------------------------------⇒ Price ------------------------------------------------⇒ Calories ---------------------------------------------⇒ Brand of the coffee--------------------------------⇒ Packaging -------------------------------------------78

⇒ Ingredients/ flavors ---------------------------------7. Which brand of cafe coffee you prefer? ⇒ Nestle ---------------------------------------------⇒ Barista --------------------------------------------⇒ Cafe Coffee Day --------------------------------⇒ other foreign brands ----------------------------⇒ Any other ---------------------------------------⇒ Do not know/ Can not say ---------------------

8.

How do you feel regarding price of different brands of cafe coffee in comparison with Cafe Coffee Day?

Barista⇒ High ----------------------------------------⇒ Reasonable --------------------------------⇒ Do not know/ Can not say ---------------Nestle ⇒ High ------------------------------------------⇒ Reasonable ----------------------------------⇒ Do not know/ Can not say -----------------Cafe Coffe Day ⇒ High ------------------------------------------⇒ Reasonable -----------------------------------⇒ Do not know/ Can not say -----------------9. How easily do you get different brands of cafe coffee in comparison with Cafe Coffee? ⇒ Easily -----------------------------------------------⇒ Not easily -----------------------------------------------⇒ Rarely ---------------------------------------------------⇒ Do not know/ Can not say ----------------------------

10. Do you agree that coffee at the Cafe Coffee Day taste better in comparison
to the coffee of other brands? ⇒ Strongly Agree ---------------------------------79

⇒ Agree --------------------------------------------⇒ Strongly Disagree -----------------------------⇒ Disagree -----------------------------------------⇒ Do not know/ Can not say --------------------11. Do advertisements affect your choice for different brands of drinking coffee? ⇒ Yes -----------------------------------------------⇒ No ------------------------------------------------⇒ Do not know/ can not say ---------------------12. Do you think that the present choices available in coffee are costly? If yes, what will be your ideal price range? ⇒ Yes ---------------------------------------⇒ No ----------------------------------------⇒ Do not know/ Can not say ------------13. Would you prefer to switch to drinking coffee of another brand if it is cheaper than your preferred brand without any change in quality & taste? ⇒ Yes -----------------------------------------⇒ No ------------------------------------------⇒ Do not know/ Can not say ---------------

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Café Coffee Day Officials
1. Is global market an important part of your organizations marketing efforts? Yes No

2.

How has your company entered the Indian Market?

Joint venture Franchising Own Subsidiary Strategic Alliance 3. What factors do you think can create problems and hurdles in the future success of the company in India? Please rank them on a scale of 1-5 (1most important -5 least important)

Religious fundamentalists and environmentalists Pricing Pressure to increase product variant/range Ad spends to create top of mind recall Local competitors

4.

Do you have different product lines and operational strategies for the Indian market? Yes No

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5.

What kind of sales promotion strategies have you adopted for the Indian market?

Localization Globalization Regional Adaptation Product Standardization 6. Has it: ⇒ Increased -----------------------------⇒ Decreased ----------------------------⇒ Remained stagnant -----------------7. Does your target audience wants your product or services offerings to be: What has been the impact on sales volumes and profits after the Indianization?

⇒ Completely Indianised ------------------------⇒ Somewhat Indianised -------------------------⇒ Not at all Indianised --------------------------⇒ Do not know/ Can not say -------------------8. Is has your company placed itself well to cater to the opportunities in India? ⇒ Yes ------------------------------------------⇒ No -------------------------------------------⇒ Do not know/ Can not say ---------------

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CHAPTER-8 BIBLIOGRAPHY/REFERENCES

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Books
 Bungess, L.R. 1984. Wages and Salary Administration. Charles E. Merrie Publishing co. Column ‘US’.  Arm strong, M. and Helen Muslis, 1980.Salary Administration, Lo gan page ltd. London.  Suri, G.K. 1976. Productivity wages industrial relations. Affiliated East west Press New Delhi.
 Bhattacharya, Research Methodology, Publisher

 Customer Service Manual (Airtel)  HR Manual, Policies & Procedures, BTVL  Books & magazine on mobile communication  Marketing Management by Philip Kotler  Research Methodology by C.R. Kothari  Aaker, David,” Building Strong Brands” ,The Free Press, Printed in the United States Of America, Year 1996.  Aaker, David,” Strategic Brand Management” ,Prentice Hall, Printed in the United States Of America, Year 1989.  Crainer,Stuart,” The Real Power Of Brands” ,PITMAN Publishing, Printed in Great Britain, Year 1995.

MAGAZINES & JOURNALS
 HR Executive Editorial Survey (2007), Workplace Turnover Study, Human Resource Executive Magazine  Indian Management Magazine, Vol 44 Issue 1, Jan2008

INTERNET WEBSITES
  www.cafecoffeeday.com - Search engines – Case Study www.google.com- Search engines

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