Mission

“To be the best café chain by offering a world

class coffee experience at affordable prices.”
 Country Analysis
• Median Age – 27 years

• 65% of the population is below the age of 35 years

• The proportion of working population (25-59) is expected to increase from

40% in 2000 to 46% in 2020

• By 2020, 35% of the total population will be residing in Urban cities

• By 2020, there will be 109 miilion people in India earning between 3 lacs
to 6lacs per annum and 100 million people earning between 6 lacs to 30
lacs

• Spending on discretionary products will increase to about 64% of total

spending by 2020
 Industry Analysis

• Current size of the café market in $70 billion and is expected

to grow to $151 billion by 2020
 Competitor Analysis
Biggest competitors are:
• Starbucks
• Costa Coffee
• Barista
• Gloria’s
• Coffee Bean & Tea Leaf

• Many stand-alone coffee shops are coming up.

• McDonalds and Dunkin Donuts have started selling coffee.

• Many substitutes in the form of Slush, Iced Tea, Flavored Juices, Fruit Punch etc are
available.

• Revenues are rising but losses are also on the rise.

 About Café Coffee Day

• Café Coffee Day, owned by Coffee Day Global is the largest coffee chain in
India.

• It was founded by Mr. V.G Siddhartha.

• With 1538 outlets across India, it is 3 times bigger than its major
competitors such as Starbucks, Barista and Costa Coffee.

• It also has a presence in Austria, Czech Republic, Dubai, Malaysia and

Egypt.

• It is also the largest producer of “Arabica” beans in Asia exporting to

various countries including USA, Europe and Japan.
in India, we operate a highly optimized and vertically integrated coffee business which ranges from procuring,
processing and roasting of coffee beans to retailing of coffee products across various formats.
Café Coffee Day as on December 31, 2014
We set out below a description of the formats of coffee businesses we operated as of December 31, 2014:

Format Branding Offerings Target segment Footprint

C Café Coffee Café Coffee a mix of coffees, value-conscious youth 1,423 outlets across 209
a Day outlet Day teas and other segment cities in India and 16
f beverages and food international outlets
é options across Austria, Czech
Republic and Malaysia
N Café Coffee The Lounge a mix of exotic trendy and affluent 42 outlets across seven
e Day coffees, teas, customers with a cities in India
t The Lounge cocktails and higher disposable
w outlet international income
o cuisines options
r Café Coffee The Square specialty coffees coffee connoisseurs seven outlets across four
k1 Day The Square and teas and fine who seek the theatre of cities in India
outlet dining options coffee
I Vending Coffee Day a variety of coffees corporate and 28,777 vending
n business Beverages and teas; coffee is institutional clients machines across India
freshly brewed
H Fresh & Ground Coffee Day 22 exclusive residential households 424 outlets across seven
o outlet Fresh & varieties of freshly consumption and a states in India
m Ground brewed coffee large number of
e powder restaurants and eateries
across South India
O Coffee Day Coffee Day basic offerings of caters to ‘Coffee on- 590 kiosks across 12
u Xpress kiosks Xpress coffees and teas the-go’ consumers cities in India
t and light snack
options
o Production, Coffee Day green coffee beans large roaster and coffee one of the largest
f Processing & Exports traders exporters of Indian
Exports coffee beans, primarily
H to Europe, Japan and the
o Middle East
m
e
Competitive Advantage

First Mover

Lowest Vertical
Price Integration

Residential Loyal
College Customers
 Strengths Weaknesses

1. Highest number of stores 1. Not seen as a premium brand

2. High brand equity among the youth 2. Ordinary ambience and décor
3. Low prices 3. Complaints about customer service
4. Vertical Integration

SWOT
Opportunities Threats

1. Growing coffee culture in India 1. Growing competition from global and local
2. Rising income of people coffee chains
3. High potential in Tier-II and Tier-III cities 2. Rising attrition rate
4. Enter foreign markets
5. Introduce new varieties of snacks and
beverages
 Porter’s Five Forces
Threat of
new entrants
(HIGH)

Buyer’s Supplier’s
Industry
bargaining bargaining
rivalry
power power
(HIGH)
(LOW) (LOW)

Threat of
substitutes
(HIGH)
 Abell’s Framework

Customer Group Customer Need

(18-30 years) Informal place to

relax and have fun

Distinctive Competencies

Low cost, Larger reach, Better

connect with the people
Determinants of Shareholder Value

To increase shareholder value,

managers must pursue
strategies that increase the
profitability of the company
and grow the profits

CCD has used certain strategies, like going for IPO - Rs 1,150-crore
for its growth and expansion purpose, ultimately helping the
shareholders to make profit
 Current Information on CCD
Coffee Day has ties up with Swiggy and will start the service in Bengaluru where it
has mapped 50 cafés to deliver orders within a 3-4km radius.

Rs 1,150-crore IPO in October 2015 .

Cafe Coffee Day to invest Rs 450 crore to add 400 stores in 3 years.

•
 Industry Life Cycle

Organized Café
chain Industry
currently is in
the Growth
Phase
 Strategic Groups

Starbucks

Coffee Bean &

Tea Leaf

Barista

Costa Coffee
Café Coffee Day

Independent
Café chains
Quality Map

CCD
Starbucks

Costa Coffee
Coffee Bean &
Tea Leaf

Barista
 Functional Level Strategies
Efficiency Customer Responsiveness

1. Highest number of stores 1. Not seen as a premium brand

2. High brand equity among the youth 2. Ordinary ambience and décor
3. Low prices 3. Complaints about customer service
4. Vertical Integration
Competitive Advantage

LOW COST Quality

Innovation

1. Growing coffee culture in India
2. Rising income of people
3. High potential in Tier-II and Tier-III cities
4. Enter foreign markets
5. Introduce new varieties of snacks and
1. Growing competition from global and local
coffee chains
2. Rising attrition rate
Customer Groups and Market Segment

Café Chain
Market

CCD stores and CCD Lounge and

Kiosks CCD Square
Middle Income Premium

College Students Corporates

Value Creation Frontier

Starbucks

Costa
Coffee

Coffee
Bean &
Tea
Leaf CCD

Barista
 Business Level Strategy

Business Level
Strategy used by
Café Coffee Day
 Crossing “The Chasm”
CCD successfully
Gloria Jean’s crossed the Chasm
Coffee had to as it understood
shut shop in the needs of
India as it majority of Indian
couldn’t pass consumers
the Chasm
CCD’s current
strategy
Vertical Integration of Café Coffee Day

Coffee
Plantations

Conversion in to
coffee beans

Selling coffee
through retail
chains
 MARKET DEVELOPMENT DIVERSIFICATION

New
Opening of Café chains in
internationally
MARKET

Vending machines

MARKET PENETRATION PRODUCT

DEVELOPMENT
Existing

1. Coffee exports
2. Premium cafes such as
Café Chains Lounge and Square
3. Home Delivery Service

Existing PRODUCTS New