Professional Documents
Culture Documents
Cafe Coffee Day Marketing Report
Cafe Coffee Day Marketing Report
- A Marketing Report
EXECUTIVE SUMMARY
CCD aims to be the best coffee chain in the country by offering world class
experience at affordable prices. For this, it closely upgrades and
customizes its offerings to meet consumer needs. CCD induces a sense of
belonging in the minds of the consumer. Students and employed
professionals perceive CCD as a hangout place, a place for meeting
friends and conversation. Ambience and interiors appeal to their visual
senses and smell of coffee to their olfactory senses. People feel young at
heart and relaxed being at CCD. CCD serves as a promoter of social
networking and going to CCD is also considered as a status symbol.
We have analyzed the marketing mix, to help understand the gap in
offerings. E-commerce websites on web space, English newspapers and
business and technology magazines in print media emerge as key focal
media to reach consumers. TVCs should be distributed across all
entertainment, news and music channels.
Based on survey response and analyses we have come up with
recommendations enhance consumer experience which translates into
greater consumer satisfaction and consumer loyalty.
Contents
EXECUTIVE SUMMARY............................................................................................ 2
BRIEF OF THE COMPANY........................................................................................ 4
OBJECTIVE.............................................................................................................. 5
SCOPE.................................................................................................................... 5
METHODOLOGY...................................................................................................... 5
MARKETING MIX (7 P ANALYSIS)............................................................................. 6
CONSUMER BEHAVIOR........................................................................................... 8
MASLOW'S THEORY............................................................................................. 8
CUSTOMER MIND MAPPING................................................................................. 9
BRAND ASSET VALUATOR MODEL.......................................................................9
DIMENSIONS OF BRAND EXPERIENCE...............................................................10
IMPLICATIONS FOR MARKETEER...........................................................................12
RECOMMENDATIONS............................................................................................ 14
Appendix.............................................................................................................. 16
Survey.............................................................................................................. 16
REFERENCES..................................................................................................... 20
Cafe Coffee Day is currently one the biggest and fastest growing
company in the branded coffee business. It is a division of Amalgamated
Bean Company Trading Company Limited. The first CCD outlet was
set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka. Since
then, CCD has opened 1481 cafs across 28 states of India. It has also
started international operations by opening cafe shops at cities like
Karachi, Vienna, Dubai and Prague. CCD is unique in the sense that it
manufactures the coffee that it serves over an estate of over 6,000 acres.
The various brands in which CCD reaches to its million consumers are
following:
Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and
powder retail outlets.
Coffee Day Square, a high level coffee bar in Bangalore.
Coffee Day Xpress, which runs 900 plus Coffee Day kiosks.
Coffee Day Beverages, which runs over 14,000 vending machines.
Coffee Day Exports, its exporting wing.
Coffee Day Perfect, its fast-moving consumer goods packaged coffee
division.
Coffee Day B2C Plant, Coffee vending machine manufacturing in India
CCD is credited with creating the cafe culture wave that swept across the
country and as an exclusive store with excellent service aims to enhance
the consumers Coffee Experience. The target population of the cafe is
majorly the young population in the urban cities with disposable income.
CCD's claim to fame is its youth centric image, making it one of the most
widely discussed brands on the web. CCD is emerging as the ideal
hangout centre or 'adda' for the Indian youth riding on the emerging cafe
market in India. This market although small from a global perspective, is
booming from an Indian perspective. Coffee consumption in India has
increased tremendously doubling from 55,000 tonnes in 1990 to 102,000
tonnes in 2012.
Cafe Coffee day has won several awards and recognitions. It was named
"most popular hangout joint amongst youth" at the 3rd Global Youth
Marketing Forum in 2011. The Indian Hospitality Excellence Awards also
named it "India's most popular coffee joint" in 2011.
OBJECTIVE
Understand why do people spend INR 75 for a coffee at CCD
Understand consumer behaviour with relation to CCD
Implications for the marketers.
SCOPE
People in the age group of 18 35 years in the metro cities who are
regular CCD visitors or would like to have a CCD coffee.
METHODOLOGY
Profession
Numb
er
109
Partic
41
ulars
71
Numb
26
er
Student
83
IT
34
Professional
Non
- IT % 33
Numb
Professional
er
141
72
54
28
%
55
23
22
5 People
The staff is trained to be courteous, polite and importance is given
to personal grooming and hygiene. Service is like a hygiene factor
which is going to be noticed when it is absent. Good experience
might not be in memory, but bad experiences have a lasting effect
and can end customer association. High level of formalization must
hence be maintained across all the outlets.
6 Process
Earlier, CCD had a convenience model of service, but along with
growth and expansion, CCD has moved to a self-service model for
ordering and payment. This might be perceived as inconvenient by
some of the customers, as it affects the continuity and flow of the
experience.
7 Publicity
The brand has gained credibility for filling a much needed gap,
which is a location for spending quality time in the fast moving
urban lifestyle. The communication from the company in the form of
taglines - A lot can happen over Coffee, Sit Down reinforce the
offerings. There is a major network effect which has helped CCD
retain customers as CCD has become synonymous with having
coffee outside.
CONSUMER BEHAVIOR
We have analyzed the consumer behavior with respect to the Cafe Coffee
Day by applying the following models: 1. Maslow's Theory
2. Consumer Mind Map
3. Brand Asset Valuator Model
4. Dimensions of Brand Experience
MASLOW'S THEORY
Inference: According to Maslow theory, Caf Coffee Day will fall in the category
of psychological needs inducing in people a sense of belonging to the
community. It also overlaps with the Esteem needs to a fair extent playing on the
consumers needs for recognition, status and self-esteem.
Inference: This mental map depicts the knowledge of CCD in the minds of
consumers in terms of the key associations likely to be triggered in a marketing
setting and their relative strength, favourability and uniqueness to consumers.
Relevance: Majority of the 76% respondents who said they think of CCD,
belonged to the age group of 18-35 and consisted of students and working
professional. This suggests that these people visit CCD generally after
their classes or office hours and choose CCD as meeting place, hangout
place, etc.
Esteem: 92% of the respondents had a positive perception of CCD.
Consumers perceived CCD as the place for conversation, as a hangout
place for meeting friends and a place for discussions with no interruptions
from the staff. Convenient location, ambience and variety of food, snacks,
desserts and coolers were main factors that drive consumers to the store.
Knowledge: Since, 76% of customer think of CCD when asked to name a
coffee chain, we infer that consumers are aware of CCD as a brand.
Conversation is the main product offering of CCD which is in sync with
consumer perception as the highest rating as 80% of the customers
considered CCD as a meeting place.
Strength
CC
D
Stature
Esteem and Knowledge
12
CCD emerges as the leader in the retail coffee chain space and has
become irresistible, combining high brand strength with high brand
stature. They hence, have greatest potential to create future value. If we
look at the value proposition to the consumers from another angle, CCD
offers space for conversations on rent. The consumer is perceiving value
from the experience rather than just the consumption of the product
Studen
t
IT
Professio
nal
Non -IT
Professio
nal
62%
Age
Group
(2535)
63%
60%
65%
63%
34%
9%
19%
84%
39%
15%
17%
90%
32%
8%
16%
86%
50%
21%
21%
85%
27%
6%
24%
84%
%
Particular
Followe
s
rs
Age
Group
(18-25)
Newspape
r
Television
Radio
Magazines
Internet
60%
35%
10%
17%
85%
Newspaper
Studen
t
IT
Professio
nal
Non -IT
Professio
nal
80%
Age
Group
(2535)
77%
78%
95%
67%
2%
18%
0%
23%
2%
80%
0%
5%
0%
33%
%
Particular
Followe
s
rs
Age
Group
(18-25)
English
( ToI,
Hindu, HT)
Hindi
Business
(ET, Mint)
80%
2%
18%
13
Radio
Inference: Our analysis revealed that only 10% of the respondents follow
radio, but we observed that the level of acceptance of radio was higher
amongst working professionals compared to students. This could be due
to use of radio while commute.
Television
Particular
s
Entertainm
ent
Sports
Music
News
Movie
55%
59%
Age
Group
(2535)
43%
55%
56%
49%
58%
43%
68%
40%
54%
81%
38%
69%
69%
%
Followe
rs
Age
Group
(18-25)
Studen
t
IT
Professio
nal
Non -IT
Professio
nal
52%
58%
56%
48%
48%
52%
51%
47%
71%
53%
71%
89%
56%
33%
56%
Magazines
Particula
rs
Health
%
Followe
rs
Age
Group
(18-25)
11%
15%
Age
Group
(2535)
0%
Studen
t
IT
Professio
nal
Non -IT
Professio
nal
8%
29%
0%
14
Fashion
Sports
Business
Travel
Technolog
y
28%
21%
60%
18%
50%
33%
23%
48%
24%
48%
14%
15%
100%
0%
57%
38%
31%
54%
8%
39%
15%
29%
71%
29%
85%
25%
0%
63%
25%
38%
Internet
Particulars
%
Followe
rs
Age
Group
(2535)
Studen
t
IT
Professio
nal
Non -IT
Professio
nal
89%
Age
Grou
p
(1825)
90%
Social
Networking
E-Commerce
Sports
Search
Engines
Gaming
News
Songs &
Videos
86%
88%
96%
85%
31%
38%
66%
30%
35%
66%
32%
46%
65%
27%
36%
65%
38%
45%
62%
36%
36%
71%
7%
49%
42%
8%
42%
39%
2%
68%
51%
5%
40%
37%
14%
58%
65%
4%
64%
32%
15
RECOMMENDATIONS
Discounts : Special offers such as discounts on special occasions are
preferred by approximately 60% of the consumers surveyed. Special
discounts can be given to students on show of identity cards.
Combo Deals : Combo meals were given a positive response by about
45% of the consumers.
Seating Arrangement : 40% consumers felt the need for better seating
arrangement keeping in mind the concept of a personal segregated space.
Also 95% consumers come in groups of 5 or less. Hence the seating
arrangement should be revamped keeping in mind these two aspects.
Smaller personalized seating areas in lounges and smaller tables must be
introduced keeping in mind the trend of visitor pattern.
Menu : 30% people prefer more variety in menu would hence a
dynamically changing menu be an attraction to visit CCD.
Board Games : 25% people prefer to play board games. Survey analysis
reveals an equal stress on this aspect across all segments of consumers
surveyed students and professionals alike. Introduction of board games
would help create a more interactive, friendly, fun-filled experience for its
consumers. Apart from Board games, comics and tablets in premium
stores.
Special Occasion Celebrations : Students prefer to celebrate special
occasions like Valentines Day, Rose Day, Friendship Day, etc at CCD.
Other working professionals and self-employed individuals were not much
enthusiastic about this concept.
New Stores: Over 80 % consumers spend less than INR 500 at CCD.
Keeping this in mind, we can increase the cafe outlets in the school and
college areas. Lounges must be restricted to affluent localities.
Latte Art
Periodic changes to latte art according to location, occasion, season and
customer can be incorporated to bring in a fresh and unique experience
for the customer on every visit. This would lead to indirect publicity by
word of mouth with customers looking forward to every new cup of coffee.
Changes to Loyalty Card
The existing Loyalty Card can be altered to incorporate points to the
customer based on number of visitors, number of referred enrolments,
revolving discounts for future visits, customized merchandize on reaching
landmarks.
Customer Delight
26% of the customers had a positive attitude towards freebies. Customer
delight can be achieved by positively surprising customers without
substantial costs to CCD. Some examples are complimentary cookies,
desserts, birthday cards on order of cakes, or any merchandize.
16
17
APPENDIX
SURVEY
Coffee Chains in India
Q1 Which coffee chain comes to your mind when you hear the words "coffee
shop" ?
Q2 How would you describe CCD in one sentence?
Q3 You like going to CCD because:
Q4 How often do you visit CCD
Q10 How do the following factors impact your decision to visit CCD ?Rate the
following on a scale of 1-5 (1 being the lowest and 5 the highest),
Value for
money (1)
Interior (2)
Ease of
access (3)
Quality of
Service (4)
Variety
(Menu) (5)
Quality of
food (6)
Quick
Service (7)
1 (Very low)
(1)
2 (Low) (2)
3 (Average)
(3)
4 (High) (4)
5 (Very
High) (5)
19
Q11 What can be a factor for you to visit CCD more often?
Discounts (1)
Freebies (2)
Combo Deals (3)
More Menu Variety (4)
Better Quality of food (5)
Better Interiors (6)
Personalized space (7)
Better Quality of service (8)
Occasion celebration (9)
Board Games (10)
Q13 On the following parameters, select how satisfied you are with CCD on a
scale of 1-5, 1 - Being highly dissatisfied and 5 Highly Satisfied ?
Interior
design (1)
Good crowd
(2)
Outside view
(3)
Layout/
Seating (4)
Smells nice
(5)
Newspapers/
WiFi (6)
Comfortable
(7)
Upbeat Music
(8)
Very
Dissatisfied
(1)
Somewhat
Dissatisfied
(2)
Neutral (3)
Somewhat
Satisfied (4)
Very
Satisfied (5)
Young (1)
Status Symbol (2)
Connected (3)
Fun (4)
Relaxed (5)
Nostalgic (6)
20
Below 18 (1)
18 25 (2)
25 35 (3)
More than 35 (4)
Q16 Gender
Male (1)
Female (2)
Q17 Profession
Student (1)
IT professional (2)
Non IT professional (3)
Self-employed (4)
Unemployed (5)
If Others, please specify (6) ____________________
Newspapers (1)
Television (2)
Radio (3)
Magazines (4)
Internet (5)
21
Entertainment (1)
Sports Channel (2)
Music Channel (3)
News Channel (4)
Movies Channel (5)
Health (1)
Fashion and Bollywood (2)
Sports (3)
Business (4)
Travel (5)
Technology (6)
REFERENCES
References
Marketing Management A South Asian Perspective,14e, P. Kotler, K. Keller, A.
Koshy, M. Jha
Questionnaire and Form Design Chapter in Marketing Research: An Applied
Orientation by Naresh K. Malhotra and Satyabhushan Dash
Brand Experience: What is it? How is it measured? Does it affect Loyalty? J.
Brakus, B. Schmitt, L. Zarantonello, Journal of Marketing 73 (May 2009), pp 52
-68
22
23
http://bear.warrington.ufl.edu/weitz/mar7786/Articles/brakus%20ettal
%202009%20brand%20experience.pdf
24