SERVICE MARKETING

PROJECT
ON

CAFÉ COFFEE DAY

By

Archana, Hardik, Sanjay, Tirthankar

(SIESCOMS)
 CAFÉ COFFEE DAY – Table of Index
1. CCD Introduction 02
2. STPD (Segmentation, Targeting, Positioning, Differentiation) 07
3. Perception Mapping 10
4. SWOT Analysis 11
5. Competitors Analysis 12
6. PESTEL (Political, Economic, Social, Technological,
Legal, Environmental) 14
7. 7 PCs P’s Service Marketing 15
8. Strategies (Distribution, Positioning and Focus 43
9. Porters Five Forces 45
10. SPANCO (Tangible / Intangible) 46
11. Recommendations 47
12. Partners 48
13. Conclusion 49
14. Q&A 50
15. References 51
 CAFÉ COFFEE DAY - Introduction

 Founded in 1996
 India's largest coffee conglomerate, Amalgamated Bean Coffee Trading
Company Ltd
 Strives to provide the best experience to their guests
 Pioneer of the café culture and the first to launch the ‗coffee bar‘ concept in
India
 Network strength: 1450+ cafés in 172 cities/towns across India and growing
 First to roll out the ‗coffee bar‘ concept in India with its first café in Bangalore.
 Outlets set up are based on the three formats -- cafe, lounge and square.
 Menu ranges from signature hot and cold coffees to several exotic
international coffees, tea, food, desserts and pastries and exciting
merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is
available at the cafés
 CCD is present in every nook and corner of the country which includes Vienna,
Austria and Karachi and plans to open across Middle East, Eastern Europe,
Eurasia, Egypt and South East Asia in the near future
 CAFÉ COFFEE DAY – Introduction Continue…

 In 2010, they clubbed all his businesses (except agriculture) under Coffee
Day Resorts Holdings.
 Existing investors include global PE firms KKR and Co. LP, New Silk Route
Partners LLC and Standard Chartered Private Equity have 25% stake
 Darby Overseas Investments Ltd—the private equity arm of Franklin
Templeton Investments, International Finance Corporation and Deutsche
Bank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd
 CCD’s SBU
– Coffee Day Fresh 'n' Ground
– Coffee Day Xpress
– Coffee Day Take away
– Coffee Day Exports
– Coffee Day Perfect
– (FMCG Packaged Coffee) division
 WHY CAFÉ COFFEE DAY
 Average Footfalls: 300 per café per day
 Average dwell time at café: 45 minutes

 Meeting place for 15-45 year olds

 A place where :
 Students frequently visit most after ―home and workplace/college‖
 Friends and colleagues meet n groups of 3 or more
 One rejuvenates and are free to be themselves rather than a place to
be ―seen at‖

 The café is also the venue for business meetings (23% ), celebrating special
occasions (20%) or just plain ―Time Pass‖ (57%).
Key Target Audience

 Major chunk of CCD customers falls within the

age group of 20 to 30 which accounts for
57% of the overall percentage.

 The group comprises of mainly college going

students and young working professionals

7%
27%

66% Professionals
Students
 S-T-P-D
SEGMENTATION TARGETING

 Middle class and upper middle class

youth
 Students, House wives, executives and
Café Coffee Day has its main consumer youngsters

base in the age group of 16-30 years.  People who value a great cup of coffee
 CCD seeks to target not just the youth
but anyone who is ―young at heart‖.

POSITIONING DIFFERENTIATION

 ―Third Place" away from the home  1481 outlets in 200 cities
and college or workplace for the  Strong and Stable Parentage
young and the young at heart.  Right Locations
 Coffee Bar  Place a cafe in every possible location

where some business can be generated.

Fun Place

To be present in educational institutions
Home and Workplace and corporate campuses
 Medium Price Brand
 POSITIONING STRATEGY

POSITIONING OF DIFFERENT OUTLET

Café Coffee
The Lounge The Square
Day
• Coffee lovers • Premium • Exclusive for
• Youth Cafe Coffee lover
• A place for
Hang out
REPOSITIONING CCD

– Changing the logo to a ‗Dialogue Box‘ - with the words Café Coffee
Day, symbolizes a perfect place to ‗relax and dialogue‘

New Logo

– Tagline : a lot does happen over coffee!!

 Perception Mapping
Quality of service (High Involvement)

High Price Low Price

Quality of service (Low Involvement)

 SWOT Analysis

STRENGTHS WEAKNESS

 Largest retail chain of cafes  Weak brand image and lacks

 ISO 9002 certified company strength to maintain brand loyalty
 Quality and taste  Poor ambience and decor. (Prime
 Youth oriented brand space - advertising and
 Reduction in cost (Own Production) promotions)
 USP of brand - Highly affordable brand  Wrong site selection – Losses

SWOT
OPPORTUNITY THREAT

 Fastest growing industries in Asia.  Competition with established and

 Preferred for informal meetings.
International other coffee cafes like
 Gone international
Barista, Starbucks, Costa Coffee,
Coffee Mochas, Gloria Jeans, Coffee
Bean & Tea Leaf and Illy Café.
 Hukka Parlours.
 Competitor Analysis

Share of mind others Market Share

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

Direct Competitors:
 Barista
 Cafe Mocha
 Costa Coffee
 Beyond Coffee
 Gloria Jeans
 Minerva Coffee Shop
Indirect Competitors:
 McDonald
 Haldirams
Global Competitors:
 Star Bucks
 Political Easy sourcing of coffee beans
Cost control because of Govt regulations

Economic Heavy coffee drinks in South India

Cheaper sourcing maintain quality

Targets youth and middle class

Affordable for a meeting place
Social
PESTAL

Technological Wifi facility at every outlets and music

Digital Marketing for promotions

Environmental Use Bio degradable products

Ethical and based on customer delight

Less consumer complaints and quick
Legal customer service
 7 P’s of SERVICE MARKETING

PRODUCT PRICE PLACE PROMOTION

PHYSICAL
PEOPLE PROCESS
EVIDE
SERVICE PRODUCT

Core Product
 Experience

Supplementary services
 Wide range
 Merchandising
 Ambience

Delivery
 Hospitality (Lounge & Square)
 Price of the product
 SERVICE FLOWER
Information Facilitating Services


Payment
Information
- Menu
- Website

 Payment
Billing Order –taking
- Credit Card
- Cash
- Privilege Card

 Billing - at the counter

 Order Taking
- Assisted by the
attendee
 SERVICE FLOWER
Enhancing Services
 Consultation
Consultation - Assistance

 Hospitality
- Food & Beverage
- Music
- Wi-Fi
- Washrooms

 Safekeeping
- Credit Card Security
- Parking

 Expectations
Expectations Hospitality - Happy Hours
- Privilege Cards
Safekeeping
 PRODUCT PORTFOLIO
Product Mix Width
Food and Beverage Non Food Items B2B
Food Beverage
Coffee Powder Bulk/ Corporate
Deserts Coffee Orders
Coffee Machine Catering
Snacks Tea Services
Product
Cups & Mugs Coffee Vending
Line Length
Cakes Chocolate Shakes Machines
Chocolate and Advertising
Sundaes Frappe cookies Space
Apparel &
Heavy Foods Fruit Shakes &
Accessories
(in Lounges) Lemonades
Gift Cards &
Vouchers
 SERVICE MARKETING MIX OF
CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL
PEOPLE PROCESS
EVIDE
PRICING STRATEGY
 PSYCHOLOGY PRICING
– Pricing the product as Rs 69, 79, 59 etc. rather
than in the multiples of ten to give a feel that
the product less priced

 LOCATION PRICING: On the basis of outlets, prices

have been positioned
• Café
• Lounge
• Square

 COMBO PRICING
– Clubbing up two or more products on special
occasions
 PRICING STRATEGY

 PREMIUMS PRICING
– Adding things like cream, chocolate sauce
and positioning as a premium coffees

 VALUE BASED PRICING

– Providing different variants in terms of
prices by altering the quantity to give a
sense of affordability
 SERVICE MARKETING MIX OF
CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL
PEOPLE PROCESS
EVIDE
 PLACE
 Strategically located outlets
 Kiosks in offices
 Coffee machines in college canteens
Types of Stores

Café Coffee Day The Lounge The Square

 Café Coffee Day Store
Coffee parlors where people can
enjoy the coffee have eatables and
hangout with friends

Café Coffee Day Lounge

Premium café from Café coffee
day target selected group

Café Coffee Day Square

A unique Café where variety of single
origin coffee brews from coffee-
growing countries are available
 SERVICE MARKETING MIX OF
CAFÉ COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL
PEOPLE PROCESS
EVIDE
 PROMOTION

 Started TVC and Print campaign at the end of 2012

 Co Branding in Movie and TV serials
 Sales Promotion Activities
– Combo Deal
– Happy Hours
– Privilege cards
– Redeemable coupons
 Through Interactive Media
 Held Contest around a Very Popular Programme
 Tie up lot of youth brands
WITH THE FOOD: SIDE MENU CARD
 CONTESTS @ CAFES

 Contests have been activated through leaflets/contest forms

given out with the menu-card /bill folders
 Drop boxes, which also add to prominent visibility, are used to
collect all entries to the contest
 ON THE WALL

The most imposing branding option within a cafe for visual communication
with minimal amount of text
ON THE TABLE: STICKERS & TENT CARDS

Tent Cards are the chosen element in the cafes

si e they are all a out I a here, you a t
iss e
EDITORIAL COVERAGE
 SERVICE MARKETING MIX OF CAFÉ
COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL
PEOPLE PROCESS
EVIDENCE
 PHYSICAL EVIDENCE
 Ambience
– Different ambience the look and feel
for different outlets

 Shop Colour
– Violet for Café coffee day shops
– Sea green for Lounge
– Brown for Square
 SERVICE MARKETING MIX OF CAFÉ
COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL
PEOPLE PROCESS
EVIDE
 PEOPLE
 Dressed in a particular uniform
 Soft spoken, friendly behaviour
 Customer Engagement Activities
– Special Offers on Occasions
(Birthday, Valentine day, Friendship day
etc.)
– Online Contests
– Happy Hours
 SERVICE MARKETING MIX OF CAFÉ
COFFEE DAY

PRODUCT PRICE PLACE PROMOTION

PHYSICAL
PEOPLE PROCESS
EVIDE
 PROCESS
 People Processing Services
 Minimum Response Time
 Complaints and feedback
 Assisted by the attendee or the brew master in Lounge and Square
 Self Service Counter for Café Coffee Day outlets in Offices / few Malls.
 Ordering and delivery earlier was self service and now most of the
coffee shops have waiters to take order and deliver at the table
BLUEPRINT FOR SERVICE
DELIVERY
EVIDENCE
PROCESS AT CCD
PHYSICAL

CCD interiors Menu

CCD Furniture CCD boy/girl Delivery CCD boy/girl Exit way
Ambience
exteriors Tray CCD exteriors
Interior design
Food & drinks

Customer Customer
CUSTOMER

Goes to the Views Places Sits Order Requests Makes the

Arrives at walks -in table Menu card order Chats received for bill payment
CCD Waits Eats Leaves

Line of interaction
(On Stage)

Takes order Delivers

Greeted by Hands over
the order Accepts
CONTACT PERSON

CCD boy/girl the bill to

request
the customer

Line of visibility
(Back Stage)

Receives Food/Drink
Informs about the
order placed Data entry Bill
generated

Line of internal interaction

SUPPORT PROCESS

Prepares
Food / Drinks Billing system
Processes bill
 CHARACTERISTICS OF SERVICES
 Intangibility
– Experience
– Taste of Coffee

 Inseparability
– Service provided

 Perishability
– Availability of tables

 Heterogeneity
– Ambience of different outlets
 DISTRIBUTION CHANNEL STRATEGY

 Easy accessibility
There is a Cafe Coffee Day outlet in every major city in India and are
easily accessible.

 Rural area locations

Customers in the smaller communities also enjoy good quality
coffee and snacks at affordable costs because the Cafe has set up
outlets in the rural areas in India.

 Distributors
The offee produ ed o the Cafe’s far s, are distri uted through
wholesalers and retailers to customers who wish to use the coffee
at home.
 FOCUS STRATEGY ANALYSIS
Service Offerings
Narrow Wide
Service focused Unfocused
Café Coffee Day Premium CCD cafe outlets
No. of Market Served

Many Cafes (Lounges)

Fully focused Market focused

Café Coffee Day Square – CCD Xpress (Kiosk)
Few an exclusive coffee bar
Porters Five Forces

Threat of
new entrants
(LOW)

Buyer‘s Industry Threat of

Power Rivalry Substitutes
(HIGH) (HIGH) (HIGH)

Supplier's
Power
(LOW)
 SPANCO - Tangible / Intangible (CCD)
S - Suspect / Security – All Customer who wants to eat snacks Or have a peaceful
Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy food
and drinks.
P - Prospect / Profit – All college /school going Students, Kitty goings groups and
business customers. Same price as other notable brand Better taste and crispness
Value for Money
A - Approach / Analysis -Analysis Research and customer focused studies on what
Indian customers looking for hot and cold drinks in peaceful good environment.
Wished to taste new & innovative products Unique freshness flavour
N - Negotiation / Number Strategy - Change the product Unique Selling
Proposition Offer reasonably good prices quality product and services. Coffee /
tea variants High price & high volume Other Varieties (cold drinks and snacks) Low
price & high volume
C - Closing / Core need– Offer good services and quality product. Clear cut
differentiated product Existing network of distribution
 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 Café Coffee Day

quality of service, ambience, pricing and location to be very
good which proves that still Café Coffee Day 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.
PARTNERS
 Conclusion

1. C.C.D. is the fastest growing Café in the country.

2. The major competitor undoubtedly Barista.

3. That Café Coffee day is planning to go international.

4. The other major things regarding service marketing is that customers give
top priority to the quality of the services / products and ambience.

5. It is providing tough competition to its competitors by satisfying its

customers with great café experience.

6. ―A lot can happen over coffee‖ message has touched the hearts of
youngsters who are the largest consumers of C.C.D.
 ?
ANY QUESTIONS
 References

 Personal experiences

 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

 www.slideshare.com