Brewing the brand- A case on Café

Coffee Day

Introduction
From scruffy roadside chai (tea) shops and government-run coffeehouses to swanky, air-
conditioned, branded coffee bars and lounges, Indians, are catching on to the worldwide
passion for coffee. The first wave in coffee retail dates back to 1936, when the first India
Coffee House opened in Bombay, as part of a strategy to promote domestic coffee
consumption. At the height of its glory, the India Coffee House chain numbered 72 outlets,
extending to Lahore in pre-partition India, and till the 1960s and 70s, was quite the
rendezvous for the coffee house revolutionary. But those days of too much of standardization
and a bit too static are gone. The cafe is not a ration shop! It needs to be different and local.
And it needs to stay relevant to the needs of the local populace as well. The fate of the India
Coffee House, operated by the Coffee Board of India, is down to around 11 units around the
country but still for few it is still “the best and the cheapest” place to sip a coffee.
However looking at the Sub-continental scale and population base of a billion plus where
coffee drinking has increasingly becoming a statement of the young and upwardly mobile
Indians, it makes the café industry in India extremely diverse. Traditional darshinis, the
Indian version of fast food joints, co-exist alongside the new western-style cafes. Yet for
retail opportunists, it’s evident that the emerging café scene holds great promise.
The following case deals with the business strategy of Café Coffee Day with special thrust on
their three A approach- Affordability, Acceptability and Accessibility, to become India’s most
trusted brand.
Objectives CCD
“To be the best café chain in the world by offering a world class coffee experience at
affordable prices.”
Is the coffee cup half-full or half-empty? Is the retail coffee revolution in India for real, or
calling it a coffee retail revolution at this stage may be an exaggeration, but the more than US
$150 million organized coffee retail business in India is coming into its own and is growing
at 10 to 12 per cent a year with branded coffee accounting for 53 per cent of sales, unbranded
40 per cent and cafes 7 per cent. Coffee consumption in India is on the rise and has increased
from 55,000 tonnes to 80,000 tonnes in the last three years after decades of stagnation. With
the fast food segment growing at 40 per cent a year, coffee consumption is set to grow
further. Currently estimated at INR 2.5 billion, with about 500 retail outlets in the organized
sector, the potential exists for at least 2,000 outlets, according to retail consultancy KSA
Technopak. Retail brands say it is between 3,000 and 5,000. “There is a huge demand, and
India needs a higher penetration,” says Munri Suri, Manager for Southern India operations at
KSA Technopak. To take advantage of this ever-growing sector, many national and
international cafes have forayed into Indian market
Executive Summary –
Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean
Coffee Trading Company Ltd. (ABCTCL), a Rs. 750 crore ISO 9002 certified company.
ABCTCL popularly known as the Coffee Day group grows coffee in its own estates of 7400
acres and another 2500 acres managed by it. Apart from this, the group also sources coffee
from 11,000 small growers. Coffee Day is one of India’s leading coffee exporters with clients
across USA, Europe and Japan. The group has its business growing and spanning the entire
value chain of coffee consumption in India.
With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees
and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning
the entire value chain of coffee consumption in India. Its different divisions include: Coffee
Day Fresh n Ground (which owns more than 400 Coffee bean and powder retail outlets),
Coffee Day Xpress (which owns more than 800 Coffee Day Kiosk), Coffee Day Take away
(which owns 7000 Vending Machines), Coffee Day Exports and Coffee Day Perfect (FMCG
Packaged Coffee) division
Research Methodology of the study
It is a way to systematically solve the research problem. This
comprises of two words : Research and Methodology.
Research is define as human activity based on intellectual
application in the investigation of matter. The primary purpose
for applied research is discovering, interpreting and the
development of methods and system for the advancement of
human knowledge on a wide variety of scientific matters of our
world and the universe.
Research may be define as the careful investigation or inquiry
specially through search of new facts in any branch of
knowledge. In sort it comprises defining a refined problem
formulating hypothesis for suggested solution: Collecting,
Organizing, Evaluating data making decisions and research
conclusion and lastly carefully testing the conclusion to
determine whether the fit the hypothesis.
Methodology can be define as the analysis of the principle of
methods, rules and postulates employed by a discipline a
particular procedure or set of procedures.

Research Design :
Research design can be thought of as the structure of the
research- it is the glue that holds all the elements in a research
project together. We often describes a design using a concise
notation that enables us to summarize a complex design
structure efficiently.
Considering the objective of the study, simple survey was
conducted and accordingly analysis of information was made.
Exploratory design is used in present study.

Sources of Data :
For my research paper I have collected primary and secondary
data-
 Primary sources - I have collected primary data by dealing
with the clients and employees of MIPL. I have made a
questionnaire for the customers of MIPL. Thus, I have
collected the primary data by survey method.
 Secondary sources – the secondary data of my research
paper has been collected from –
- Annual report of MIPL
- Website of the company
- Journal, magazines , manuals etc.

Sample Size :
Sample size refers to the total number of respondents targeted
for collecting the data for research. The sampling size of my
study is 100 respondents.
Survey Method :
The related data or information was obtained by personal
administration through questionnaire that is personal survey.

Sample Unit :
Non- probability.

Tools and Techniques of data collection :

Questionnaire.

Tools of Data analysis and presentation :