MARKETING

PLAN OF

Presented by:-

Shahbaaz Ahmed (PGFB1345)

Shravan Kumar (PGFB1347)
Sundram Sinha (PGFB1352)
Saloni Mishra (PGFB1343)
Swati Sharma (PGFB1353)
Rajni Vasisht (PGFB1336)
 •India's largest coffee
conglomerate, Amalgamated Bean
Coffee Trading Company Ltd.

• Pioneer of the café culture and

the first to launch the ‘coffee bar’
concept in India.
Executive Summary • Network strength: Over 1400
cafés in 200 cities/towns across
India and growing.

• Average Footfalls: 200 per café

per day.
 Mission

“To be the best cafe chain by

offering a world class coffee
experience at affordable
prices.”
 Current Market Situation

• Coffee – a sunrise industry

• Growing young population and

promotion of coffee culture

• Coffee Segmentation:

Filter coffee and instant coffee

43% share of filter coffee

Pure and blended coffee

Cheaper products like chicory, vanilla, mocha

Robusta and Arabica Beans

Different growth culture
 Café Coffee Day Network
of 1450 cafes across India

185 cafes

64 cafes

172 cafes

191 cafes
 • Major chunk of CCD customers falls within the age
group of 20 to 30 which accounts for 57% of the
overall percentage.
Target • The group comprises of mainly college going
Audience students and young working professionals
 • There is a definite skew towards singles: 66%
singles, 27% married & 7% others.

Target
Audience 7%

27%

66%

Married Single others

 S-T-P-D
SEGMENTATION TARGETING
Café Coffee Day has its main •Middle class and upper middle class
youth
consumer base in the age group
•CCD seeks to target not just the
of 16-30 years. youth but anyone who is “young at
heart”.
•Medium Price Brand

POSITIONING
•“Third Place" away from the
home and college or workplace
for the young and the young at
heart.
•Fun Place
DIFFERENTIATION
•1481 outlets in 200 cities
•Cafe in locations where some
business can be generated.
•Educational institutions and
Corporate Campuses.
 DISTRIBUTION STARATEGY

• Network strength of over 1450 cafes in 200 cities

and towns with average footfalls of 200 per café per
day Growth Target
Tier I Tier II Tier III
• Distribution Strategy:
• Single unit at Chikmagalur with capacity of
70,000 tonnes per annum 10%
50
• Packaging industry:
• Serving hot coffee 210ml and cold coffee 350ml 30%
• CCD merchandises 150 60%
300
• Regional Distribution:
• Targeting expansion in smaller towns
• New café formats in metros –
• Lounge
• Square
 STRENGTHS WEAKNESS

• First-mover advantage
• Excellent brand name and visibility
• Lack of individual attention to loyal customers
• ISO 9002 certified company
• Unavailability of fresh food
• Quality, service and taste
• Market penetration of coffee bars is 5%
• Youth oriented brand
• Reduction in cost

SWOT
OPPORTUNITY
• Fastest growing industries in Asia
• Merchandising
• Tie ups with other companies for promotion
• Tapping smaller market
• Cheaper varieties of coffee
THREAT
• Competition with Barista, Mochas, Gloria
Jeans, Costa Coffee & Starbucks
• Presence of other ‘Hangout’ locations
• Unorganized market
• Dependent on government commodity rates
 Objectives & Issues:-

Threat of new entrants - Medium

• Presence of several established brands/hangout places/fast food joints

• High Investments for Expansion.

• Government policies promoting FDI .

Buyer’s Power - High

• Low switching cost

• Variety of products

• Variety of services

Profitability - High
• Increase Market Size and Brand Awareness by Vending Machines and Kiosks
in public places.

• To Increase the use of Technology Portfolio.

 Competitor Analysis

Market Share Share of mind

others
6% Gloria
Jeans
Barista
costa coffee 3%
14% 17%
CCD Starbucks
Barista 54%
12%
26% CCD
68%

Sample size – 150+

 Marketing Strategy: Marketing Mix

Product Price Place Promotion

• Wide range • Range from Rs45 to • All locations • Channel [V]’s “Get
Rs100 Gorgeous” Contest
• Frappe – Summer • Strategically located
• Over the years only outlets • Tie up with youth
• Cappuccino - Winter minor changes in brands
• Merchandizing pricing policy • Coffee machines in
college canteens • Khakee and Main Hun
Na
• Kiosks in offices
• Sales Promotion
 • As a reaction to the launch of
Starbucks in India, CCD debuted
with TV Ad – Sit down-ism

Action • Gives customer a purpose for

hanging out
Programs:-
• Word of mouth
Advertising
• Subtle advertising in movies and TV
serials

• Print and social media

• Sponsoring college events and giving

out discount coupons

• Tie up with different corporates

• Presence of outlets in all areas

 Alternate Advertising Mediums…

Media Partner Advertising Medium Pan India presence

Teli Brahma Wi-Fi / Bluetooth Downloads 405

Café Chronicle Café Newspaper 721

DSN screens Television Screens 168

Radiowalla Café Radio 334

Coffee Day Xpress branding options

Leaflets

Counter top Tent Card

Danglers

Standee

Cup Branding

Vouchers / Scratch Cards / Discount Coupons

 BUDGET
• Organised Coffee Market is around 67$ Million ( Rs. 300 crore)
• Or
growing at a rate of 40%.

• CCD Contributes a third of the Group’s Combined Revenue of

nearly 2,000 crore.

• Revenue Model is measured by Market Potential for Business

(Price *Volume).

• Cost Structure includes Allocation of Costs in Key Assets, Direct

Costs, Indirect Costs etc.

• Owns Plantation, Cold chain, Logistics for Economy of Scale and

Effective Supply chain.

• Satisfactory Margins and Inventory Turnover for the Growth.

• 3 % of Company’s Revenue Spent on Training the Staff in Major

cities.
CONTROLS
Treat customer. fairly

Cultivate Relationship with Customer

Learn from Recovery Experience

Fail-safe the service

Track complains
 References

http://www.casestudyinc.com/coffee-day-
brand-strategy-india
http://www.pr-inside.com/india-food-and-
drink-report-q-r2164244.htm
http://en.wikipedia.org/wiki/Marketing
http://www.cafecoffeeday.com/
http://www.barista.co.in/users/index.aspx