CAFE COFFEE DAY

Siddhartha started the café chain in 1996 when he incorporated Coffee Day Global, which is the parent
of the Coffee Day chain. The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore,
Karnataka.

Cafe Coffee Day debt had shot up 64% to Rs 6,500 crore in 2018-19; profits had
improved:
VG Siddhartha founded Cafe Coffee Day (CCD)-India's largest coffee chain-had total borrowings of Rs
6,547.38 crore as of March 2019, up 64 per cent, according to consolidated un-audited results for fiscal
2018-19. Siddhartha went missing on Monday evening under suspicious circumstances. A letter, allegedly
written by him, claims he was under pressure over his failure to create a profitable business. However,
that's questionable. For the quarter ended December 2018, Coffee Day's consolidated revenue stood at
Rs 996.51 crore, while its net profit had also jumped to Rs 73.15 crore from Rs 27.99 crore during the
corresponding quarter a year ago.

He also had cash in hand after selling his shares in IT firm Mindtree for Rs 3,269 crore, raking in a profit
of Rs 2,858 crore. This was intended to pare his overall debt. CMIE data says his gross debt stood at Rs
6,547.38 crore as of March 2019. The gross debt had spiked 63.54 per cent from Rs 4,003.47 crore in
March 2019, the data adds. For the quarter ending December 2018, Coffee Day's consolidated revenue
stood at Rs 996.51 crore, while its net profit had also jumped to Rs 73.15 crore from Rs 27.99 crore
during the corresponding quarter a year ago.

It is important to note that the annual results of the company for 2017-2018 released last year pegged
the gross debt at Rs 5,049 crore. The company is yet to release the figures for 2018-19.

Segmentation, targeting, positioning in the Marketing Strategy of Cafe Coffee

Day-
Cafe Coffee Day segments its offerings across different conceptual outlets based on
demographic factors and psychographics factors due to the fact that demographically the needs
& wants to change to which available resources also plays a major role.

It targets youth in the middle and higher income namely students & working professionals.

CCD has positioned itself based on a combination of positioning strategies i.e. product attribute
& quality /value basis.
Competitive advantage in the Marketing Strategy of Cafe Coffee Day –

The vast range of food & beverages, strategically located outlets, reduction in prices, venturing
out into tier-2 cities of India & foreign lands is some of the winning strategies which helped CCD
to be ahead of its competitors. Its various subsidiaries like Coffee Day Fresh ‘n’ Ground, Coffee
Day Square, Coffee Day Beverages etc. has helped the company to cater to customer growing
needs and be competitively ahead at the same time.

BCG Matrix in the Marketing Strategy of Cafe Coffee Day –

Café Coffee Day flagship outlets are the question mark due to the fact that competitors like
Starbucks, Barista, and Costa-Coffee are playing hard to capture the market. Also, relatively
other player offerings are economical then CCD and due to its wrongly located outlets in some
of the metros Cities Company is suffering from heavy loss.

Its other concept outlets like Coffee Day Fresh ‘n’ Ground, Coffee Day Square, Coffee Day
Beverages etc. are also the question mark as these outlets are not able to attract targeted
customers.