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Table of Contents

Executive Summary:.................................................................................................................... 3
Objectives of this project: ........................................................................................................... 3
Mission ....................................................................................................................................... 3
Reason for this project: ............................................................................................................... 3
History ........................................................................................................................................ 3
History Café Coffee Day: .................................................................................................................. 3
History of coffee................................................................................................................................. 3
Why Café Coffee Day? ................................................................................................................ 4
Experience in Café Coffee Day .................................................................................................... 6
Quality standards ............................................................................................................................... 7
Order taking system ........................................................................................................................... 7
Café Coffee Day – Recruitment: .................................................................................................. 7
Training ............................................................................................................................................. 7
Employee working hours ................................................................................................................... 7
Organizational goals.......................................................................................................................... 8
Employee Turnover & Retention ...................................................................................................... 8
SWOT Analysis ............................................................................................................................ 8
Strategies .................................................................................................................................... 8
Distribution channel strategy ............................................................................................................ 8
Business Level Strategy ..................................................................................................................... 9
Operational Strategy .......................................................................................................................... 9
Vertical Integration of Café Coffee Day ....................................................................................... 9
Major Competitors.................................................................................................................... 10
Recommendations .................................................................................................................... 10
Conclusion ................................................................................................................................ 10
References: ............................................................................................................................... 11
Executive Summary:
The project helps in understanding the different Strategies implemented by Café Coffee Day,
India. To develop this project, I collected data from Web, visited couple of Coffee day stores
in Hyderabad and interviewed their employees to understand how they run their day-to-day
operations, how is the ambience maintained, and how do they maintain their customer base.

Objectives of this project:


 To identify the Corporate strategies
 To critique the strategies adopted with the help of concept and data collected

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

Reason for this project:


Coffee is largely traded commodity and is important foreign exchange commodity. The
coffee chain market is more than Rs 1,000 crore and is growing at almost 30% each year.
This market is dominated by brands like CCD, which has huge turnover and good number of
outlets in India, followed by Barista – a distant second. So, I want to touch base on this to
explain how businesses like CCD can emerge in Indian market providing almost premium
services for a middle class citizen.

History
History Café Coffee Day:
Café Coffee Day was started in 1996 by it’s founder Mr. V.G. Siddhartha. It grows coffee in
its own estates. It is also a largest producer of Arabica beans in Asia, which it also exports to
various countries like ISA, Europe and Japan. They setup their first outlet in 1996 in
Bengaluru and then expanded to around 1000 cafés across the nation by 2011. As of now,
there are around 1500+ outlets in India and it has outlets outside India too in Austria, Czech
Republic, Malaysia, Egypt and Nepal. Café Coffee Day pioneered the café concept in India.
As the café culture in international markets grew, the need for a relaxed and fun “hangout”
for the emerging urban youth in the country was clearly seen.
The company owns the plantations, grows coffee, makes coffee machines, etc.

History of coffee
Coffee, a brewed drink prepared from roasted coffee beans, which are the seeds of Coffea
plant berries. Coffee plant was initially exported from Africa to lot of countries around the
world and now cultivated in over 70 countries. The common varities of coffee are Arabica
and robusta. Once ripe, coffee berries are picked, processed and dried. Dried seeds are
roasted to varying degrees, depending on the desired flavour. Roasted beans are ground and
brewed with near-boiling water to produce coffee as a beverage.
Café business in India
India is densely populated with a median age of around 27 years. 65% of the population is
below 35 years. The proportion of working population (25-59) is around 40%. And, it is
expected that around 35% of total population will be residing in Urban cities. People
spending on discretionary products will increase to about 64% of total spending by 2020.

Current size of the café market is $70 billion and is expected to grow to $151 billion by 2020.

Why Café Coffee Day?


 Average Footfalls: 300 per café per day
 Average time spent at café: 45 minutes
 Meeting place for 15-45 year olds
 A place where:
o Students frequently visit after “home and workplace/college”
o Friends and colleagues meet in groups
 The café is also the venue for business, meetings, celebrating special occasions or just
plain chit chat
Major chunk of customers fall within the age group of 20-30 which accounts for around 57%
of the overall visitors. This group mainly comprises of college going students and young
working professionals.

Below graphs gives a detailed info on age profiles, frequency of visits and Gender %
Age Profile:

Frequency of visits:

Male Vs Female %:
Experience in Café Coffee Day
CCD offers in three formats:
 Café Coffee Day, mostly for:
o Coffee lovers
o Youth
o A place for hangout
 The Lounge
o Premium Café
 The Square
o Exclusive for Coffee lover

In addition to this, the company has 900 CCD Express (kiosks for take-away) and 16,000
vending machines in corporate offices.
The outlets ambience reveals that they are not just coffee-drinking places but a good place to
hangout both for formal and informal meetings. The brand has a beautiful tag link ‘A lot can
happen over coffee’.

Key Features
A youth oriented brand with majority of its customers falling in the 15-29 year age bracket.
On an average, there would be around 400 to 800 customers visiting daily depending on the
outlet type.
Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the India Barista
Championship

Coffees & Teas Refreshing Alternatives Eatables


Hot coffee Granitas Melting Moments
Espresso Blood Orange Banana n’ Walnut Cake
Espresso Americano Cool Blue Banana Chocolate Mousse
Macchiato Pineapple Crush Banana Caramel pie
Cappuchino Emerald Ice Chocolate Doughnut
Café Latte Ruby Surprise Cookies
Chococinno Marble Cake
Café Mocha Pineapple Getaux
Irish Coffee Chocolate Cake
International Coffee Smoothies Ice Creams
Colombian Juan Valdez Mango Colada Vanilla
Ethiopian Qahwah Strawberry Colada Chocolate
Kenyan Safari Seasons Best
Cold Coffee Cremosas Quick Bites
Sweet Mint Litchi Samosa, Puff, Pizza,
Cold Sparkle Ginger Spice Sandwiches, Masala
Brandied Banana Pina Colada Sandwich & Burger
Tropical Iceberg Croissant, French Fries
Iced Eskimo Kathi Roll & Wraps
Pasta

Coffee Add Ons Cool Refreshers


Honey, Flavoured Syrups Fruit Juices
Red Eye, Whipped Cream Mineral Water
Scoope pf Ice cream
Chocolate Sauce
Teas
Assam Tea
Masala Chai
Lemon ‘n Ice Tea
Kashmiri Qahwah
Apple n Cranberry ice tea

Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes.

Quality standards
Café Coffee Day constants does quality check on all aspects. The operational in-charge will
keep checking database, bills & customer feedback. The food in-charge checks the food
storage containers, Vending machine, time taken for making a coffee, etc. Marketing in-
charge checks for the kiosks, posters, other branding materials in the store.

Café Coffee Day sells various young and trendy merchandise through its stores:
 Caps
 T-Shirts
 Bags
 Mugs
 Coffee Filters
 Coffee Powders
 Coffee Mints
 Pens

Order taking system


All CCD outlets are self-service based where the customer goes to the counter to place
his/her order. At times, the order will have to be picked up from the counter of will be
delivered to the table.

Café Coffee Day – Recruitment:


The rate at which CCD is expanding, it has a huge need to recruit right people. CCDs sources
or Job applications is through posters at it’s outlets and through Referrals and Walk-Ins.

Training
Being such a huge player in Coffee chain market, it is quite important for CCD to maintain
the consistency in their employees performance and CCD does invest in their employees
training as they being a customer oriented service sector organization.
All the new team members will have 3 days training at their zonal head office.

Employee working hours


Employee Working hours are split into shifts spread over 8:30 am to 10:30 pm.
Organizational goals
To enhance overall employee effectiveness and productivity, their supervisor carries out the
performance appraisal at Café Coffee Day every 6 months.

Employee Turnover & Retention


Café Coffee Day’s current rate of Employee Turnover is about 9%. The reason behind this is
the people between the age group of 19-24 who do not see their job as permanent means
of income. They are not committed & loyal towards the organization.

SWOT Analysis
Strengths Weakness
 Largest retail chain of Cafés  Weak brand image and lacks
 ISO 9002 certified company strength to maintain brand loyalty
 Quality and taste  Not seen as a premium brand
 High brand equity among youth  Ordinary ambience and décor when
 Reduction in cost due to own compared to other premium Coffee
production Cafés
 Vertical Integration  Not so great Customer service

Opportunities Threats
 Growing lounge coffee culture in  Growing competition from global
India and local coffee chains
 Income rise among people  Rising attrition rate
 High potential in Tier 2 & Tier 3
cities
 Enter foreign markets
 Introduce new varieties of snacks
and beverages

Strategies
 To increase shareholder value, managers must pursue strategies that increase the
profitability of the company and grow the profits
 CCD had gone for IPO – Rs, 1,150 crore for its growth and expansion purpose,
ultimately helping the shareholders to make profit.
 Also, CCD tied up with Swiggy to provide home deliveries.

Distribution channel strategy


 Easy accessibility
o There is a Café Coffee Day outlet in every major city in India and are easily
accessible
 Rural area locations
o Customers in the smaller communities also enjoy good quality coffee and
snacks at affordable costs because the Café has set up outlets in rural areas in
India
 Distributors:
o The coffee produced on the Café’s farms are distributed through wholesalers
and retailers to customers who wish to use the coffee at home

Business Level Strategy

Offers Products to only one Offers products to many


group of customers kinds of customers
Offers low-priced products to Focused cost-leadership Cost-leadership strategy
customers strategy
Offers Unique or distinctive Focused differentiation Differentiation strategy
products to customers strategy

Business Level strategy used by CCD is “Focused cost-leadership strategy” (green colour)

Operational Strategy
 People Processing Services
 Minimum Response Time
 Complaints and Feedback
 Assisted by the attendee or the brew master in Lounge and Square
 Self service counter for Café Coffee Day outlets in Offices/few malls

Vertical Integration of Café Coffee Day

Coffee Plantations

Conversion in to Coffee
beans

Selling Coffee through retail


chains
Major Competitors
 Starbucks
 Costa Coffee
 Barista
 Gloria’s
 Coffee Bean & Teal Leaf

Quite recently, McDonalds and Dunkin Donuts have also started selling coffee. Many
substitutes in the form of Iced Tea, Fruit punch, flavoured juices etc are available.

Out of these, the major competitors could be Starbucks and Barista. Starbucks being a global
player has huge reach and it tied up with Tata group which pose major threat to CCD.
Starbucks is the premier roaster and retailer of speciality coffee in the world. However,
Starbucks concentrates on niche customer’s and pricing is a little on higher side when
compared to CCD. So, potentially Starbucks cannot be a direct competitor as customer base
of Starbucks is relatively different from that of CCD.

However, Barista on the other side is also a pioneer in Indian Café culture. To experience
authentic Italian coffee, Barista is a good place to hangout. Barista is a definite close
competitor to CCD as it’s pricing is almost same as that of CCD.

Recommendations
1. To improve the interiors and décor
2. To have more tie-ups
3. Only 50% or less than 50% people find Café Coffee Day quality of service, ambience,
pricing and location to be very good which proves that still CCD need to do lot of
homework in order to satisfy its customers.
4. It should introduce a feedback form system in order to know about the customers
satisfaction level

Conclusion
1. CCD is the fastest growing Café in the country.
2. The major competitor is Barista
3. The Café Coffee day is planning to go international
4. The other major things regarding service marketing is that customers give top priority
to the quality of the services/products and ambience
5. It is providing tough competition by satisfying its customers with great café
experience
6. “A lot can happen over coffee” message has reached quite a good number of
audience, majority of them being the youth
References:
https://en.wikipedia.org/wiki/Caf%C3%A9_Coffee_Day
http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-04/Coffee-House.html
https://en.wikipedia.org/wiki/Coffee
http://www.thehindubusinessline.com/news/education/how-can-caf-coffee-day-meet-the-starbucks-
challenge/article5397467.ece
https://www.slideshare.net/SanjayGupta91/cafe-coffee-day-seiscoms
https://www.scribd.com/document/51535675/CCD-Final-Report
https://www.scribd.com/document/192329964/MM-Assignment-Cafe-Coffee-Day