TABLE OF CONTENT

S.NO. TOPIC PAGE

NO.
1. Declaration 1
2. Certificate 2
3. Acknowledgement 3
4. Executive Summery 5
5. History 6
6. Objectives 10
7. Features 12
8. Current trends in Industry 13
9. Market size in US 15
10. Major players in the Industry 16
11. Customer Expectations 19
12. Promotion 21
13. Mission Statement 25
14. Logo 26
15. Product at INDIAN COFFEE HOUSE 27
16. Rewards 32
17. Awards 33
18. Café Formats 34
19. Benefits 36
20. Sales Promotions 38
21. Segmentations Strategy 39
22. Seven steps of Great Services 40
23. Research & Methodology 44
24. Recommendations & Conclusions 47
25. Bibliography 48
 INDIAN COFFEE HOUSE

EXECUTIVE SUMMERY
The research project deals with INDIAN COFFEE HOUSE. The research project
addresses the issues and facts that are critical to success of chain of INDIAN
COFFEE HOUSE in India. Along with this, the project has also covered
management skills, services provided and trends & opportunities. The report also
discusses about the competitors of the INDIAN COFFEE HOUSE in India. It also
covers various promotional techniques adopted by INDIAN COFFEE HOUSE in
order to attract customers. It also shows its comparison with its competitors. There
is an intense competition among these players which makes them come out with
various offers time to time. Surveys were also conducted with customers during
this project which gave insights about these outlets and the factors that are
motivating them to visit INDIAN COFFEE HOUSE. The result of these surveys
gives very interesting facts. Finally, the report also covers strength and weaknesses
along with opportunities and threats involved for INDIAN COFFEE HOUSE in
Indian market. This study is primarily intended to oversee and evaluate the history
of INDIAN COFFEE HOUSE as a brand of new generation Coffee item and
Beverages viz. “Coffee” in Delhi. Culture and cuisine are two highlights of the city
of Delhi. The objective of our project is to explore the marketing techniques
adopted by INDIAN COFFEE HOUSE in India. And to know the recent trends in
the market with respect to promotion of INDIAN COFFEE HOUSE and the
opportunities and challenges in India. INDIAN COFFEE HOUSE is a complete
family Coffee Restaurant. People are highly satisfied with the services and quality
of the Coffee served at INDIAN COFFEE HOUSE. People give overall 7/10 marks
to INDIAN COFFEE HOUSE. Most of the people visiting INDIAN COFFEE
HOUSE are between 19 to 25 years of age. People feel that prices of INDIAN
COFFEE HOUSE are high.

History

INDIAN COFFEE HOUSE is a division of India's largest coffee conglomerate,

Amalgamated

Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day.
This

is a Rs. 300 crore ISO 9002 certified company. Its chief customers are in USA,
Europe & Japan. Based in Chickmaglur, the home of some of the best Indian

Coffees, Coffee Day has its business spanning the entire gamut of coffee

Consumption in India. Its different divisions include:

· Coffee Day Fresh n Ground (354 Coffee bean and powder retail outlets)

· Coffee Day Xpress (341 Coffee Day Kiosk)

· Coffee Day Take away (7000 Vending Machines)

· Coffee Day Exports

· INDIAN COFFEE HOUSE

· Coffee Day Perfect (FMCG Packaged Coffee) division

INDIAN COFFEE HOUSE (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.

Recognizing the potential that lay ahead on the horizon, INDIAN COFFEE
HOUSE embarked on a dynamic journey to become a large organized retail café
chain with a distinct brand identity of its own.

India’s favorite coffee shop, where the young at heart unwind.

INDIAN COFFEE HOUSE is a part of India's largest coffee conglomerate,

Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), the first to roll out
the „coffee bar‟ concept in India with its first café in Bangalore. 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, making its holder the largest
individual coffee plantation owner in Asia, this in addition to being India's only
vertically integrated coffee company. 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. We all know
that INDIAN COFFEE HOUSE is one of the most popular hangout places. The
coffee joint is very famous among youngsters. Coffee is one of the favorite
beverages and has become more appealing because of its variety.

ABCTCL 6 divisions:
Exports - India's largest coffee exporters. Currently export over 30000 tonnes of
green coffee per annum, i.e 15% of India's coffee exports. They have also ventured
into specialty coffee exports.

Coffee Day Fresh and Ground- Maior player in the roast & ground filter coffee
segment. It provides a unique assortment of blends at affordable prices. The coffee
is freshly ground in front of the customer and sold to him.

Cafe Coffee Day - It is a place where customers come and rejuvenate themselves.
It is a meeting place for the young and the young at heart. In the café Hot and Cold
coffee as well as merchandise are sold to the customers.

Coffee Day Vending – To serve the man on the move who though hurry does not
have to compromise on quality of coffe he drinks. Coffee Day has its vending
machine placed in vendor outlets in major cities.

Coffee Day Express – Bridges the need gap between the leisurely cuppa and the
bite at the café and a quick drink at the vending point. In this segment you would
notice kiosks strategically positioned where a customer can not only drink coffee
but also grab a quick bite on the move.

Coffee Day 'Perfect'- For mass-in-home consumption section where filter coffee is
consumed every day. The filter coffee is sold in packaged form to the customers.

Coffee has been around in India since the 17th century. However, coffee drinking
has traditionally been largely restricted to domestic consumption, and mostly in the
South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee
has been around in India since the 17th century. However, coffee drinking has
traditionally been largely restricted to domestic consumption, and mostly in the
South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh.

India ranks sixth as a producer of coffee in the world accounting for 4.5% of the
global coffee production. India has about 170,000 coffee farms cultivating around
900,000 acres of coffee trees. India is the largest producer and consumer of milk

in the world with 98% of milk being produced in rural India. Coffee consumption
in India is growing at 6% per annum compared to the global 2% plus.

INDIAN COFFEE HOUSE‟s menu ranges from signature hot and cold coffees to
several exotic international coffees, tea, food, desserts and pastries. In addition,
exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is
available at the cafés.
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 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. 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.

INDIAN COFFEE HOUSE (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, INDIAN COFFEE HOUSE 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, INDIAN COFFEE HOUSE 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.

In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the
concept of „Power of Dialogue‟. In accordance with this new brand identity, CCD
planned to give all its existing outlets a new look by the end of 2009. Cafés would
be redesigned to suit different environments such as book, music garden and cyber
cafes suitable for corporate offices, university campus or neighborhood. The
change plan included new smart menu, furniture design, among others.

INDIAN COFFEE HOUSE IN THE PAST 12 YEARS:

1996

1st café in

2001

14 cafés in 6 cities

2008

607 cafés across 98

Cities, and in
MAP OF INDIA SHOWING THE VARIOUS

REGIONS OF COFFEE PRODUCTION

 OBJECTIVE
“To be the best Cafe chain by offering a world class coffee experience at affordable
prices.”

The offerings are designed in such a manner that one cannot be spelt without the
other; there are the hot coffee or cold coffee combinations with delectable desserts
and special coffee and eats combinations for even a group of four friends.

Coffee Day Comprises of the following Sub Brands

1. Coffee Day - Fresh & Ground

 2. INDIAN COFFEE HOUSE
3. Coffee Day – Vending
4. Coffee Day - Xpress
5. Coffee Day – Exports
6. Coffee Day - Perfect
Pioneers of the Café Concept in India with 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 i.e.; Coffee. Essentially a
youth oriented brand with majority of its customers falling in the 15-29 year age
bracket .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.

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.
 Essentially a youth oriented brand with majority of its customers falling in the
15- 29 year age bracket
 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:

1 . Affordable Price
2 . Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the India
Barista Championship 2002

CURRENT TREND IN INDUSTRY

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. In order to spread the drink, coffee houses emerged at various places
in the country, which also served as the opposite places for lawyers and the educated
class to hold discussions ranging from politics to cinema. It is also believed that
many scripts and ideas for films evolved here.

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 INDIAN COFFEE HOUSE 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.

The more than US $150 million organized coffee retail business in India is coming
into its own, fed by rising incomes and a fast-food sector that is growing at 40 per
cent annually. Coffee consumption has increased from 55,000 tons to 80,000 tons
after decades of stagnation. Industry sources say the niche coffee retail format is
growing at 10-12 per cent a year, with branded coffee accounting for 53 per cent of
sales, unbranded 40 per cent and cafes 7 per cent.
MARKET SIZE IN US

Snapshot: Coffee Shop

Retail Sales Estimates Year End 2009 Coffee Cafes: (beverage retailers with seating)
1,250 locations averaging $550,000 in annual sales = $ 6.12 billion or adults who
have visited a coffeehouse in the past week:

 Average weekly spending $5 or under: 41%

 Rarely or never purchase food: 49%
 Consume the beverage off-premises: 52%
Demographics
Seventy-seven percent of U.S. adults drink coffee daily, and gourmet coffee
consumption has risen in the past five years. According to Scarborough Research, a
market research firm that studies media, lifestyle, and shopping patterns in the
United States, in October 2008, 12 percent of adults have been to a coffee shop in the
past month. Although popularity of coffee shops has recently spread across the
nation, the West coast has the most coffee shop patrons. The ideal ratio of coffee
shops to residents in a particular area is 1:10,000

MAJOR PLAYERS IN THE INDUSTRY

Following are the major players in coffee shop industry:

A. Barista Lavazza
One of India's largest franchised chains of coffee bars, the Barista
Lavazza coffee company operates around 205 outlets across India – 15
crème lounges and the rest espresso coffee bars.
It plans to open 300 new stores over the next three years and has begun
aggressively marketing its products outside Indian borders into neighboring
countries. Considered the Starbucks of the East, Barista offers many of the
same menu items like espresso, lattes, cappuccino and various pastries, in
addition to basic coffee. Despite being Indian, Barista sticks closely to its
Italian roots by serving Italian coffees exclusively.

B. Costa Coffee
British coffee retail chain Costa Coffee launched its outlet in New
Delhi, becoming the first international coffee chain to start operations in
India in September 2005.

The chain is currently operational with 36 outlets and expanding

aggressively to tap this potential market.
 C. Café Mocha
It was started by a Mumbai based entrepreneur Riyaz Amlani,
who has a long experience in the hotels and restaurants business. This
store is strikingly different from others, they love being over-the-top
and thus it‟s a place that either you love it too much or find it ‟Over the
top‟. Studying the marketing Mix adopted by café mocha. Owned by
Impresario Entertainment & Hospitality Pvt. Ltd.
Mocha opened its doors at Churchgate (Mumbai) in December
2001
15 operational outlets across the country and its own central
kitchen
Future plans for Singapore, Dubai and New York and Chicago.

Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with
their multi-products offering outlets like Reliance Timeout and Desi Café
respectively.

Competitors Analysis

8% 0% Barista
8% 32% Minerva Coffee Shop
Café Coffee Day
Gloria Jeans
Beyond Coffee
4%
Café Mocha
48%
Costa Coffee
 CUSTOMER’S EXPECTATIONS

When a customer visits a coffee shop they expect a good experience. They want the
service provider to provide them with the best services they have. From the chart
given below we can easily make out that the customers gives high preference to the
quality of services and they give least preference to the pricing. The major reason
behind customer giving least preference to the price is because they want a good
experience which is beyond price.
 Factors considered while selecting a coffee
shop
Quality of Services Items in the menu Pricing Location Ambience

23%

42%

11%

11%
13%

 From the above chart one can easily make out that 42% people consider the
quality of services offered by the coffe shop before going to it.
 The next important factor considered by customer before choosing a coffee
shop is the ambience. They want the coffee shop to be a cool hangout place
where they can hangout with friends and do some combined studies

RATING TO INDIAN COFFEE HOUSE BY THE CUSTOMER ARE

SHOWN IN THE CHART BELOW
 Rating to Cafe Coffee Day given by customers on
the factors listed below
Ambience Location Quality of Product Pricing Service Offered

52 52
48
44
40

28 28
24 24
20 20
16 16 16 16
12 12
8
4 4 4 4 4 4
0

Not Satisfied Satisfactory Good Very Good Excellent

From the chart above one can easily make out the following things regarding to
INDIAN COFFEE HOUSE:-

1. Customers grade INDIAN COFFEE HOUSE very good when it comes to

ambience.
2. Customers grade INDIAN COFFEE HOUSE good when it comes to pricing.
3. Customers grade INDIAN COFFEE HOUSE very good when it comes to
service offered.
4. Customers grade INDIAN COFFEE HOUSE very good when it comes to
quality of product.
5. Customers grade INDIAN COFFEE HOUSE very good when it comes to
Location.

Which simply proves that INDIAN COFFEE HOUSE is one of the best hangout
place for the youth who consider the factors mentioned above while selecting a
Coffee Shop.

Promotion
INDIAN COFFEE HOUSE does not believe in mass media promotions. But they are
involved in all the areas of serious consumer passion.
Through television

INDIAN COFFEE HOUSE held a contest around a very popular programmed 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

INDIAN COFFEE HOUSE 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 INDIAN COFFEE HOUSE. Organizers need to tell people
where the tickets are available and single INDIAN COFFEE HOUSE logo says it all.
From INDIAN COFFEE HOUSE‟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.

Association with movies

INDIAN COFFEE HOUSE has been associated with a pool of movies to broadcast it
self .Its main intention is to increase the visibility rate within the crowd who are a
part of the audiences. They have been a part of movies like:

 Bas Yun Hi
  Khakee
 Main Hoon Na
 Kyun Ho Gaya Na
 Mujhse Shaadi Karoge
 Lucky
 Socha Na Tha
 And a lot of Telegu & Tamil movies

Sales Promotion
INDIAN COFFEE HOUSE has been a very promising initiator than compared to its
competitors for sales promotion like:

 Giving away Gifts during occasions e.g. valentine day

 Offering Coupons
 Café Citizen card which allows regular members to avail discounts upto 20%
and become a member after a purchase amount of upto 2000 Rs.
 Sugar free campaign which was mainly done to spread awareness of staying
healthy and fit by using the sugar free sachets
 Discounts during festive times to members
Place

INDIAN COFFEE HOUSE looks to cater to their target market with strategically
located outlets. Their outlets are generally located in High Street/ Family
Entertainment Centers. Considering their generic appeal, there are Barista outlets
located in and around Malls, Cinemas, Colleges, Offices, etc. This endorses their
brand image of a café that appeals to coffee lovers of all ages.

People

People at INDIAN COFFEE HOUSE believe that “People are hired for what they
know but fired for how they behave”. Motivation and personal skill are laid
emphasize upon.
Process

The order process at INDIAN COFFEE HOUSE is based on services, where the
customer can read the menu and order. Whereas they have a flexible delivery
process, where the customer can go directly and take what they have ordered for or
the order is delivered on his table.

Positioning

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 INDIAN COFFEE HOUSE 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.
INDIAN COFFEE HOUSE, at its inception in 1996 was the vanguard of a café
culture in India. At a time when the country was growing well economically and
young India enjoyed higher spending power, CCD as it is popularly known, started
to set up the first retail chain of coffee bars. It broke new ground in 1999 when the
entire market grew phenomenally with the entry of new players.

From the beginning, it positioned itself as being a coffee bar and has maintained that
positioning for a long time now. For a consumer, CCD represents a “fun place”
where one can go with a whole bunch of friends at any time of the day and have a
good time, over coffee.

In 2002, INDIAN COFFEE HOUSE underwent a rebranding exercise through a

change in its logo. The earlier logo was a simple red square with a white streak
running across, and „Coffee Day‟ written at the bottom. At this stage, CCD was still
perceived as a South Indian coffee joint similar to the Coffee House in Kolkata, a
place where intellectuals meet and spend their time discussing issues. CCD saw a
latent market in youngsters, who were increasingly looking for a place to spend time
with friends and have fun. It then created an umbrella mother brand, Coffee Day and
four subbrands to represent the various activities. The logo then incorporated red,
white and green colours, a larger font and emphasis on the word „Café‟. According to
the company, red signifies leadership and passion and the white swirl stands for
purity of purpose and the feel of coffee. The new colour green endorsed the long
heritage of CCD in growing coffee.

MISSION STATEMENT
 LOGO
For a brand to stand out and be successful there has to be a personal commitment
from staff at all levels. The target customers must identify with it. It should be
vibrant and have a “life” of its own. Liveliness, growth, fun and passion depicts our
brand, our customers, our staff and our future – this is embodied in our design and
colour.

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

Now, the Logo has been changed;

 PRODUCTS AT CAFÉ COFFE DAY
Description of various Food and Beverages:

Hot Coffees
One Line Descriptions:

Espresso : Strong black coffee extracted at high pressure and optimum

temperature.

Espresso Americano : A shot of lightened Espresso diluted

with hot water.

Macchiato : A shot of Espresso topped up with milk foam.

Cappuccino : Strong milk based coffee with a shot of

Espresso, milk and milk foam. It is one of the most
popular hot coffees at Cafe Coffee Day.

Café Latte : Milkier hot coffee, mild and goes best with coffee flavoring syrups. It
has a very thin layer of milk foam.

Chocochino : A blend of Chocolate ice cream and Espresso garnished with a dollop
of milk foam. It is neither a hot coffee nor a cold coffee. It is a warm coffee.

Cafe Mocha: Chocolate flavored Cappuccino. Goes best when served with whipped
cream. Garnish it with a dash of cocoa powder.
Irish coffee: A light Espresso flavored with a choice of Irish Cream/
Hazelnut/ Caramel and topped with Whipped Cream.

Caffeine Kick: Double shot of espresso diluted with hot water.

Black Velvet: A'ristretto'strong coffee served around 5-20 ml.

Kenyan Safari : An international coffee with the hidden flavor of Blueberry.

Colombian Juan Valdez: Rich, mild international hot coffee with fruity flavour.

Ethiopian Qahwah : International hot coffee with a hidden mocha flavour.

Hot chocolate : Lots and lots and lots of chocolate.

Cold Coffees
Tropical Iceberg : Ice blended cold coffee with notes of chocolate. It is the most
popular cold coffee across the country.

Tropical Temptation : A Tropical Iceberg topped with

whipped cream and a shot of chocolate sauce.

Cold Sparkle: Ice blended cold coffee with a sparkling taste

of coconut, it is among the earliest cold coffees
introduced in their menu.

Iced Eskimo : Ice blended cold coffee with notes of coffee

and cream

balanced in right proportions.

Arabian Heights : Ice blended cold coffee with a distinct flavour of cardamom.

Vegan Shake : It is made of 100 % pure vegetable fat and does not contain any
animal fat & dairy product. It is unique and is being launched for the first time in the
country by CCD.

Cappachillo : Coffee with sweetened creamy milk served on the

rocks.

Mochachillo : Chocolate flavored coffee with sweetened creamy

milk
served on the rocks.

Cafe Frappe : A judicious blend of ice cream and coffee that gives a smooth and
creamy effect.

Almond frappe : Almond flavored rich, creamy cold coffee with whipped cream,
garnished with almond flakes.

Choco Frappe: A Cafe Frappe with an extra scoop of Vanilla ice cream and a shot
of chocolate sauce, garnished with cocoa powder.

Devils Own : A smooth blend of cream and coffee drenched with chocolate
sauce and topped up with a shot of whipped cream.

Kaapi Nirvana : It is their ultimate signature blend, very Indian with hidden
Caribbean taste, won the silver medal in the in the world barista championship held
in Oslo 2002. Rich coffee taste, heavy body with creamy texture and does not require
any additional flavors.

Fruit Frappe : A judicious blend of ice cream and fruits having different fruity
flavors and thick cool texture. (Mango Frappe, Strawberry Frappe, Pineapple Frappe,
Lichi Frappe, Cold Chocolate).

Teas
Assam Tea : A strong Tea grown in the best tea estates of Assam.

Masala Chai : High grade Assam tea in combination with a

Masala bag which is meticulously prepared with
pepper, cardamom and cinnamon to give an ethnic feel.

Ice Tea : A flavoured cold tea served with lemon juice on the
rocks,

garnished with a slice of lime.

Granitas / Cremosas
Granitas : A cool slush drink in different flavour variants

Pineapple Crush : Pineapple flavour.

Cool Blue : Orange & hidden flavour of mint.

Blood Orange : Orange flavour.

Smoothies : Ice-drinks blended with ice cream to give it a creamy

texture, which gives a smooth creamy after taste

Strawberry/Mango Colada : A smoothie, flavoured with strawberry/mango

garnished with whipped cream.

Cremosa : A fizz drink served with fruit concentrate, soda and Ice

Cubes Served on the Rocks. (Flavor options: Litchi, Ginger Spice and Pina Colada)

Desserts
Mousse Au chocolate : A double layered Chocolate mousse with a combination of
milk a dark chocolate & subtle coffee flavor for all the chocolate lovers.

Mocha Pastry : A fresh coffee sponge cake flavored with Coffee

cream and syrup.

Chocolate Fantasy Cake : Rich Chocolate Pastry

pampered with a rich garnish with chocolate truffle swirl.

Pineapple Gateaux : Delicious cream and pineapple-

flavoured cake, very light and refreshing.

Chocolate Mousse : Creamy, Fluffy, Smooth, chocolate flavored dessert, ideal with
coffee.

Black forest Cake : The all time favorite Choco pastry with cherries suited to our
Indian palate.

Sugar/chocolate Doughnut : A deep-fried dumpling doused with cinnamon

flavoured top dipped in sugar or chocolate truffle.

Date & Walnut cake : Rich butter base Cake made of delicious combination Dates
& Walnut.
Chocolate Brownie : A rich dessert made with the combination of
chocolate, butter, walnuts best with coffee. [TIP: Tastes best with a
scoop of Vanilla Ice Cream.]

Banana walnut cake : Delicious teacake flavored with bananas and

walnuts

Marble cake : A delicious combination of chocolate and vanilla butter sponge best
with tea or coffee, topped with pure chocolate. Try with a scoop of choc ice cream,
vanilla ice cream, nuts & chocolate sauce.

Cookies : A crisp sweet snack accompanying all coffee and teas with choco chips,
chocolate ginger, peanut butter and coconut macaroon flavour options.

REWARDS
The management believes that rewards offered by the company should be
meaningful and valuable to the employees. The rewards are always based on
attainable goals, they believe in SMART goal stetting { S- specific, M- measurable,
A- attainable, R- realistic and T- time bound}. The rewards are clear, understandable
and open to all. The main focus of the rewards is to recognize performance and
motivate the high performers.

TYPES OF REWARDS:

 An employee is chosen based on criteria such as excellent customer comments,

and maintenance of quality product standards that will be publicized well in
advance.
 The “employee of the month” will feature in the café magazine “café beat”.
 Select “café of the month” that will be featured in the café beat.
 Select “employee of the month” that will be displayed at the café.
 Certificate of appreciation from the regional head.
 Participation in city/ regional/ national café managers context.
 Consistent and loyal employees with a good performance will be rewarded with
employee stock options.

AWARDS
 Cafe Coffee Day was named Food Services Retailer of the Year and
Exclusive Brand Retailer of the Year at the 1st ICICI Bank Retail Excellence
Awards function in 2005.
  Cafe Coffee Day was rated the No. 3 food services brand in Business World
and Brand Equity surveys in 2004.

 Cafe Coffee Day was ranked as the 3rd best" Retail F 6t B" chain in India in
the Brand Equity survey in 2004.

 Mr. V.G. Siddhartha, Chairman (Amalgamated Bean Coffee Trading

Company Limited) received the " Economic Times - Entrepreneur of the
year 2003 "award.

 Cafe Coffee Day has had a hat trick victory in the India Barista
Championship. For 3 years in a row, 2002, 2003, 2004 CCD has won all the
top awards and its representative has gone on to represent India at World
Barista Championships, winning silver medal in 2002 and 5th place in 2004
for the country.

CAFÉ FORMATS
INDIAN COFFEE HOUSE 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,
one of India‟s leading book distributors for placement and rotation of reading
materials appealing to INDIAN COFFEE HOUSE‟s discerning customers.

Highway cafés 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 combine the joy of rejuvenating amidst verdant landscapes and pots of
coffee.

Cyber cafés combine the urge to surf, & not to mention get connected through the
internet while enjoying perfectly brewed cups of coffees, both domestic as well as
International blends! These are of course just milestones. CCD is about to launch
Sports Café, Fashion Café & Singles Café……..
 BENEFITS
Following are the benefits that a customer can get from INDIAN COFFEE HOUSE:

1. Benefits through pricing of products

Considering that Cafe Coffee Day is trying to target a market whose age range
is between 15 and 60 years, a pricing policy appealing to this segment is
difficult. The pricing is extremely low and act as a deterrent to some
customers who might regard it as an indicator or quality, while very high
prices cannot be afforded by most of the youth. But since Cafe Coffee Day‟s
current consumer profile is quite young, their prices are mostly inexpensive,
and at par with their competitors.

2. Benefits through different product line

They are 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 INDIAN COFFEE
HOUSE are catered by different vendors: example: ice creams are catered by Cream
Bell, Milk by Amul and samosa‟s by Patsiers Gallery. INDIAN COFFEE HOUSE
also sells merchandise through its stores. 5 per cent of the revenue comes from sale
of merchandise. INDIAN COFFEE HOUSE 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 t-shirts, caps etc.

3. Benefits through Location

Cafe Coffee Day looks to cater to their target market with strategically located
outlets. Their outlets are generally located at High Street/ Family Entertainment
Centers. Considering their generic appeal, there are Cafe Coffee Day outlets in and
around Malls, Cinemas, Colleges, and Offices etc. This endorses their brand image
of a café that appeals to coffee lovers of all ages.

4. Benefits through People

The people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite
and Positive.
 SALES PROMOTIONS
· Merchandising- Every CCD stocks merchandise ranging from coffee mugs, Tshirts,

caps, bags, coffee filters, mints, different flavours of coffee powders,

tea and cream, wafers and biscottis. It also merchandises promotional

materials for other brands it associates with. When some brands are

conducting events for which passes are distributed or movie premiere tickets

are given out, CCD is an important hub for these activities as most of the

target market.

· CCD‟s Guide to Active Holidays- It is a travel guide focusing on adventure

sports and is available in the CCD outlets, for people seeking escapade from

monotonous life.

· Café Beat- An in-house magazine which gives the entire low-down on what‟s

happening in CCD outlets across the world. It describes experiences of

customers, celebrations in CCDs, and covers youth-centric topics like movies,

music, travel, lifestyle, e-dating, books and careers. Around 38% of CCD

goers read Café Beat and some carry it back with them.

· CCD has now tied up with WorldSpace and Microsense to provide satellite

connectivity in its outlets.

 SEGMENTATION STRATEGY
INDIAN COFFEE HOUSE has its main consumer base in the age group of 15-29
years. Its

customers are mainly middle class and upper middle class youth who are upwardly

mobile. From the market, CCD seeks to target not just the youth but anyone who is

“young at heart”. More than 10% of their customers are above 35 years of age. The

evidence of the connect CCD has been able to make, particularly among the youth,

comes from the findings of Brand Equity's Most Trusted Brands 2008 survey. In the

food services category, CCD ranks No 2, while McDonald‟s stands at No. 3 and

Barista lags at No 5.

The graph below indicates official figures for the type of consumers of CCD. We can

clearly see that its most profitable segment is the 20-24 age brackets. These

customers can afford to visit CCD on a regular basis and have a habit-forming

attitude towards CCD.

 SEVEN STEPS OF GREAT SERVICE

1. WELCOME THE CUSTOMER

Acknowledge customers presence at the café. A smile goes a long way. That is
guaranteed.

 Open the door to receive a customer & greet him courteously with a smile
 Meeting greeting & seating the customer in a warm & friendly manner sets the
ball rolling for the service that follows .It will reflect in voice
 Check whether the customer wants a takeaway or will be seated at the café
 Take his preference if possible & direct him to available vacant tables. Request
the customers to be seated & introduce self.

2. TAKE THE ORDER & PRESENT THE BILL

A confident demeanor & good menu knowledge will help you to assist the
customer to his satisfaction

 Hand over the menu to the customer & if not ready return to take the order in a
few minutes
 Help the customer choose the right coffee or food by explaining in detail the
attributes of the product. It is important that you recommend special product &
add – ons & combos of food & beverages to the customers. Suggestive selling
will help you offer customers a better choice of their products.
 When the customer is ready to give the order, use handheld terminal. Choose
“SELL” amongst user functions. Enter the table number & the number of people.
Take the order.
 Check if the customer is the café citizen ,if not, enroll the customer in the café
citizen program
 Inform customers at what time they should expect order to be served. For eg. ”
order will be served in 10 minutes. Sir”
 Print the order confirmation cum bill & place it in the folder on the table.

TIP: use one liner terminology to describe product & its benefits to the customer.
3 .SALVER SERVICE

Serve the customer at the promised time & know the products that you are about to
serve .Pride in products will enhance the customers confidence in their brand.

 Arranged the readied products on a salver

 Serve the food first & serve the cold coffee, hot coffee or other beverages later.
However check the customer‟s preference. For eg. “Can I serve the food items
first, Sir or would you like everything to be served together?”
 In case of no specific customer preference serve food first followed by coffee/
beverages
 Announce the name of the product while you serve the product
 Remember who ordered which coffee / food in case of a group & serve the items
accordingly
 If there are four people gathered at a table, then bring the coffee two at a time.
Else, if you wait to bring all four together, the first two will not retain their
temperatures.
 In case there are any delays after announcing the time of service, please keep the
customer informed of delay.

TIP: Ensure that you have served all the mandatory accompaniments with the food &
beverages like sauces, cutlery, napkins etc...

4. VERBAL FEEDBACK & REPEAT ORDER

A feedback on existing service would help you improve performance in future

.Also; the customer will feel more valued & important.

 Keep an eye on the tables in allocated section

 Check with the customer if they would like some more coffee , snacks or
desserts
 Interact with as many as customers as possible & get their feedback on the
service & product. For eg. Hope you liked the coffee Sir! I hope you found the
service friendly & prompt. Is there any way we can improve our quality of
coffee, food or service

TIP: If you ask for feedback, you are sure to receive comments from customers

5 .CLEARANCE
 Prompt clearance of the tables ensures that customers find the café seating area
clean, hygienic & presentable when they are seated at the tables

 Clearance should be very prompt

 Clear empty plates, cups & soiled napkins from the table using a salver
 Ensure that the surface & edges of the table is wiped with assigned scrubber
.Use a spray gun to dampen the table with a cleaning agent prior to wiping the
table.

6. BILL SETTLEMENT & CUSTOMER FEEDBACK

MAKE THE POST SERVICE WAITING PERIOD EASY & FAST FOR
THE CUSTOMER

 When the customer is ready to leave check the amount of the bill from
handheld & tell him the overall amount payable
 Once the customer places the cash, remove the bill folder from the table & clear
the transaction promptly
 Request the customer to fill up the comment card. ”I would be delighted if you
could kindly fill up our customer comment/ feedback form while I return with
the change, Sir!”
 Present exact change to the customer & collect the comment card.” Change,
Sir!”
 In case of any negative comment, tackle the situation before the customer leaves
the café .Acknowledge good comments too.

7. PARTING REMARKS

Show customers that we value them & want them to return. A pleasant parting
remark would ensure that customer comes back to café

 Thank the customer for choosing CAFÉ COFFE DAY. And how delighted you
are to be of service to him. “Thank you for choosing INDIAN COFFEE
HOUSE, Sir! It has been a pleasure having you over.”
TIP: It is not what you say, but how you say it!

RESEARCH METHODOLOGY

Research Design

The controlling plan for a marketing research study in which the methods and
procedures for collecting and analyzing the information is to be collected is
known as Research Design or a framework or plan for a study that guides the
collection and analysis of the data.

RESEARCH METHOD/ DATA SOURCES

Descriptive Research-

A research design in which the major emphasis is on determining the frequency with
which something occurs. For example, how often users access internet in a given
month. The focus of descriptive research is to provide an accurate description for
something that is occurring.

Data Source:

In this project both primary data as well as secondary data are used.

PRIMARY DATA

Primary data used in this project is collected through three sources:

 Questionnaire Method
 Direct Personal Interview Method
 Observation Method

SECONDARY DATA
It is not possible to collect first hand information for each & everything so,
secondary data from various sources like Internet, A. C Neilson‟s report on Jan,
2007, Information from television channels like CNBC, Z Business, NDTV Profit
etc. and Indian Infoline Website.

Sampling

A fine subset of the population, selected from it with the objectives of investigating
its properties is called a sample and the number of unit in the sample is known as
sample size. Sampling is a tool which enables us to draw conclusion about the
characteristics of the population after studying only those subjects or items that are
included in the sample. In sampling method only few units of the population is
considered. The choice of an appropriate sampling design is of keeping in view the
objectives and scope of the enquiry and the type of the universe to be sampled.

Sampling techniques:

 Random sampling
 Non random sampling

Random sampling:

A random sampling is done in such a way that each member of the universe has a
change of being selected, which enables statistics procedures to be used under the
result to estimate sampling.

Non random sampling:

In the non-random sampling the chance of any particular unit in the population being
selected is unknown. The judgments sampling method under non-random sampling
method was adopted for the study with a sample size of 100 respondents, which are
chosen in a judgment manner from the customer. In this method a designed number
of sample unit is selected deliberately or purposely depending upon the objectives of
the enquirer so that only the important items representing the true characteristics of
the population are included in the sample.

Area of sampling-

In this study primary data plays a vital role. The process of choosing the correct
number of respondents is nothing but sampling procedure.

Sampling area: Bangalore city

Sampling Size-

100 is the number of items to be selected from the universe to constitute the sample.
The method used here is random sampling and on- the spot sampling, where the
samples are selected without considering any particular quality.

Sample Method-

Random Sampling

RECOMMENDATIONS &
CONCLUSIONS
From the project we can conclude the following:-

 That INDIAN COFFEE HOUSE is planning to go

international.
 The other major things regarding service marketing is that customers give top
priority to the quality of the services / products and ambience.
 The major competitor of INDIAN COFFEE HOUSE is undoubtedly Barista as
both of the service providers cater to same market segment India as they find
India new target market.

Recommendations:-

1. To improve the interiors and décor.

2. To have more and more tie-ups.
3. Only 50 % or less than 50 % people find INDIAN COFFEE HOUSE quality of
service, ambience, pricing and location to be very good which proves that still
 INDIAN COFFEE HOUSE 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.

BIBLIOGRAPH
Y
Observation
Individual pre and post
program feedback forms
through questionnaires.
Interviewing and mailing
Text book-
Consumer behavior- Appahnahiah, Reddy & Ramnath
Websites
 www.google.com
 www.cafecoffeeday.co.in
 www.wikipedia.in
 www.answers.com
 CONCLUSION

Coffee is a major export commodity in developing country like India

and liberalization of coffee market has given rise to competition and to
survive in this competitive market newer and newer strategies are need to
be formed to take the advantage of opportunities arising in this market.
Simultaneously financing also plays an important role in developing coffee
market and coffee export.
 BIBLIOGRAPHY
International business – P. K. Bandgar

WEBLIOGRAPHY
www.google.com

www.yahoo.com

www.ico.com

www.coffeeboard.com