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Homework Title / No.

: _____3___________________________Course Code : _479_____

Course Instructor : ______M r. Nitin sir. ___ Course Tutor (if applicable) : ____________

Date of Allotment : _____________________ Date of submission : ___________________

Student’s Roll No.___A05_________________ Section No. : RS1905________________

Declaration:
I declare that this assignment is my individual work. I have not copied from any other student’s
work or from any other source except where due acknowledgment is made explicitly in the text,
nor has any part been written for me by another person.

Student’s Signature : Manaswini


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Evaluator’s comments:
_____________________________________________________________________

Marks obtained : ___________ out of ______________________

Content of Homework should start from this page only:

Introduction
Indian consumer is a very interesting entity. The consumer in India is as
heterogeneous as the country itself is. The urban consumer contrasts with the rural
and the South Indian consumer with the North Indian. Further still, the consumer in
the metros militates with his usage and habit patterns. The Indian consumer, is
therefore very difficult to understand and very difficult to predict.

Tea and Coffee are the favourite drink in India especially tea. A quiet cafe
revolution is sweeping urban India with the explosion of coffee bars. That is bad
news for tea - still the favourite brew for a majority of Indians -, which has been
losing out to coffee in recent years.
Category wise major retailers:
I choose two retail store i.e. barista lavaza and café coffee day for comparing on
the category of food and beverage.

Food & Beverages Market In India


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

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

In India CAFÉ COFFEE DAY and BARISTA are the most popular and well-
known cafés. The college crowd rates them as one of the coolest hangouts. These
companies sell similar product but their positioning and target audience are very
different from each other. These players not only sell coffee and tea but also food
and other merchandise items.
Café coffy day

Key Features:

• 125 years of coffee growing history


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

Coffee Day Comprises of the following Sub Brands

• Coffee Day - Fresh & Ground


• Café Coffee Day
• Coffee Day – Vending
• Coffee Day – Xpress
• Coffee Day – Exports
• Coffee Day – Perfect
Café Coffee Day:-

 3000 cr company.
 Subsidiary of “Amalgamated
 Bean Coffee Trading Co. LTD”
 Launched in India in year
 1996
 ISO 9002 Certified Company
 552 outlets owned by
 company in 90 cities.

Barista:-

 “Lavazza” has taken over Barista.


 ITALY’s NO.1 Espresso Brand.
 Launched in India in year 1996
 ISO 9002 Certified Company552 outlets owned bycompany in 90 cities.
 Now in coming days we will see Barista in BLUE colure instead of
ORANGE due to takeover by Lavazza.
 130 outlets owned by company in 3 countries.
Product Mix:
Barista :-
 Hot Coffee
 Cold Coffee
 Steamers
 Iced Teas
 Cold Non coffee
 Sundaes and Shakes
 Desserts

Café Coffee Day:-

 Hot Coffee
 International Coffee
 Cold Coffee
 Hot Chocolate
 Tea
 Power Coffee
 Cold Drinks
 Cremosas (soda)
 Melting moment
 Ice Cream
 Cool refereshments

Unique Selling Proposition:-

Café Coffee Day:-

 Use ROBUSTA and CHICORY Beans in their coffee.

Barista:-

 Use 100% ARABICA Beans in their coffee and CREMA for decorating.
 CREMA shown in two cups in video…

Privacy Policy
 Barista Lavazza's use of any personal data you submit to the Site is governed
by the Site’s Privacy Policy.

Positioning:-

The place the product occupies in consumers’ minds relative to competing


products, and their Unique Selling Proposition

Café Coffee Day:-

They said that they are the place for students and colleagues social gathering.
 Good place to hangout with friends.
 Enjoy the environment with Music, Book store, Cyber café etc…

Barista:-

 They said that they are the place for professionals and colleagues social
gathering.
 Good place to hangout with friends.
 Enjoy the environment with Music, Book store, Cyber café etc…
businessman discussions place.
 Environment to take healthy decission…

Comparison
Barista

 Barista has positioned itself as an expert coffee maker with rich Italian
experience.
 A little more expensive than its competitors due to its unique product quality
and Italian touch.
 The main aim is to passionately deliver the highest levels of experiental
services.

 maintain consistency in sering the highest quality products and become a


globally compititive organization.

Café coffee Day

 Café coffee Day has positioned it self as Café Coffee Day: the best Indian
Food Services Brand .
 A little economical in comparison with its competitors.
 Consumer Profile (Consumer they targets)

Target consumer

Café Coffee Day:-

 Targeting 15-29 year old Male & Female’s


 Consumer visits as:-
a) 25% teen-ages
b) 38% age between 20-24
c) 23% age group belongs to 25-29 year old persons
d) Students and young Professionals comprises around 72% customers.
Barista:-

 Targeting 20 above Male & Female’s


 Consumer Visits as:-
a) 20% Students
b) 80% Professionals and Businessman

Café coffy day

Employee:-
Very soft nature, well trained, Good in behavior.

Consumer Service:-
Empathizing on value addition service, and customer satisfaction.

Barista lavaza

Employee:-
Soft spoken, fun loving, well trained.

Culture:-
Hand picked by Indians. Blended by Italians.

Consumer Service:-
Offering high quality beverages and food accompaniments. Pioneers in establishing
the concept of "organized coffee retailing as an experience for the customer" at a
national level in India Strong brand equity - connoting "premium" experience at
reasonable cost.
Physical Environment:-

Café Coffee Day:-


 Services are provided by waiters.
 Their AMBIENCE that is of RED Colour.
 CCD provides their Consumer a Facility of:
a) Music Café
b) Book Café
c) Garden café
d) Cyber Café

Barista:-

 Services are provided by waiters.


 Their AMBIENCE that is of ORANGE Colour, but in coming days it will
change to BLUE.
 Barista provide their consumer a Facility to Play Guitar and Music.

Process:-

Café Coffee Day:-


 Average waiting time is 15 min.
 Orders are made to waiters.
Barista:-
 Average waiting time is 10 min.
 Order are made at Counter.

Strength of café coffee day :-


 Large Number of outlet.

 In house sourcing of coffee beans.


 Tie Ups with good companies.

Strength of barista:-

 Claim to sell the best coffee

 Large Number of outlet

 In house sourcing of coffee beans

 Espresso-Highest selling coffee

Marketing strategy of barista

 Reach customers where they work, travel, shop, and dine


 Use less of traditional advertising; relying on image
 advertising, movie and television placement
 Quality and experience, rather than price.
 Plenty of comfortable seating.
 Environmental Friendly

 Loyalty Scheme by introducing the Costa Card


 Affiliate marketing: Strong retail presence, Less advertising
currently looking to expand into affiliate marketing
 New contact strategy: Encouraging the customers to register
their details or opt for e-mail marketing
 Costa book awards
 Social Marketing through Costa Foundation

Market strategy of café coffee day


 Differentiate themselves from the rest.
 Tie up with existing established brands
 Use word of mouth and advertisements on radio.
 Run in-store promotions.
 Use of opinion-leading cities.

 In-film advertising

Indian consumer Perspective


 India has yet to get the taste of Starbucks coffee
 The reason - Their proposal to enter India was rejected
earlier by the Foreign Investment Promotion Board on the
ground that the equity structure was ambiguous.
 Starbucks bullish on India has decided to file a new
proposal
Quality standards of café coffee day:-

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.

Quality Sources of barista:-

Barista has a check on the quality of its products every 14 days. Barista also
incorporates TQM at its headquarters in Delhi. Since Delhi is the base for all its
distribution, quality control measures are adopted there to avoid any poor quality
products being distributed.

Product Sources of café coffee day :-

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 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.
Product Sources of barista:–
Barista sources its coffee beans from around the world, but a major supplier is
TATA Coffee, part of the TATA Group that owns a large stake- holding in Barista.
These coffee beans are then sent to Venice, Italy where they are roasted into a
blend exclusively for Barista. The food and desserts at Barista is exclusively
catered to by the Taj, who ensures a high standard of quality with all its products.
Barista also sells merchandise through its store, all of which is imported. The
merchandise accounts for nearly 1/6th of Barista‟s overall sales.

Positioning In The Mind of the Customers


:-barista

Barista is a place where the world meets. People come to Barista to have
a meet or to relax. A lot of them actually come alone as well. This is
actually one of those places with people coming in alone because they
are comfortable with themselves. It is a place where people are meeting
each other in an environment, which is fulfilling social and intellectual
needs.
The employees at the Barista are also energetic. They help the customer
in making decisions for their purchase.
:-café coffee day
CCD holds a distinct position in the minds of the target customer. Most
of the customers are loyal and visit the same outlet. CCD is very
aggressive in terms of the marketing activity in order to maintain the
market share. Major customers are youths. Focusing on the target group,
tie-ups are done with other companies in order to keep the audience
interested. They are planning to tie-ups with the cinema theaters,
shopping malls.

Price of café coffee day:-

Café Coffee Day has positioned as “Value for Money”. The major target customers
are the youngsters. Pricing is a very sensitive issue for the Indian consumers.

Price of barista:-

Barista holds the perception of being an expensive cafe. However, Barista was the
first organization to start the concept of the organized cafes in India. Initially
Barista started with Skimmed pricing policy. Barista segmented the market
according to the income and age.

Sitting Arrangement of barista:-

Barista is a place for relaxes. Even in a crowded espresso bar, at Barista, one will
have his share of privacy. The seats are arranged at a certain distance to have a
privacy of talks as their major customers come there to discuss the business or to
relax and chat.

Customer Preference of café coffee day:-


 Foot fall- around 115 per day
 The average spend: Rs.125-150/customer–1-3 p.m.

 Comprises primarily of youth from the 18-30 yrs age group


 Attracts a lot of people from the film industry

Customer preference of barista:-


Barista is a place for relaxes. Even in a crowded espresso bar, at Barista, one
will have his share of privacy. The seats are arranged at a certain distance to
have a privacy of talks as their major customers come there to discuss the
business or to relax and chat.