Table of Contents

1.1. Introduction to Café Coffee Day.......................................................................................3

Anwer to the que no: 2 TOWS analysis........................................................................................3
2.1. Strengths of CCD India:....................................................................................................3
i) Products of extremely good quality and taste –................................................................3
ii) Its USP is affordability with comfort–..........................................................................3
2.2. Indian CCD weaknesses:..................................................................................................3
i) Losing the charm –............................................................................................................3
ii) Weak environment and decor........................................................................................3
iii) Many CCD stores lose due to incorrect selection of sites –..........................................4
2.3. Opportunities of CCD India:.............................................................................................4
i) Introducing more options and healthier menu items-.......................................................4
ii) Better indoor spaces –...................................................................................................4
iii) Coffee cafe market is Asia's fastest rising market –......................................................4
2.4. Threads of CCD India:......................................................................................................4
i) Competition –....................................................................................................................4
ii) Concourse indirect –......................................................................................................4
2.5. TOWS matrix (Aslan, Çinar and Kumpikaitė-Valiūnienė, 2012).....................................4
Anwer to the que no: 3 PESTEL and Porter 5 forces analysis of CCD India...............................5
3.1. PESTEL analysis...............................................................................................................5
i) Political Factors Impacting Coffee Wars in India.............................................................6
ii) Economic Factors that Impact Coffee Wars in India.....................................................6
iii) Impacting social factors.................................................................................................6
iv) Technological forces impacting India's Coffee Wars:...................................................7
v) Environmental factors impacting India's Coffee Wars..................................................7
vi) Legal factors impacting coffee wars in India................................................................8
3.2. Porters five forces analysis of Coffee retail industry in India...........................................8
i) Bargaining power of purchasers (Baburaj and Narayanan, 2016):...................................8
ii) Bargaining power of Supplier:......................................................................................8
iii) New entrant's threat:......................................................................................................8
iv) Substitute Hazard (French, 2016):.................................................................................9
v) Competition industry:....................................................................................................9
Anwer to the que no: 4 Strategy Formation Process.....................................................................9
4.1. Establishing organizational objective.............................................................................10

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 4.2. Organizational climate study...........................................................................................10
4.3. Forming quantitative targets...........................................................................................10
4.4. Objectives related to divisional plans.............................................................................10
4.5. Analyzing results.............................................................................................................11
4.6. Strategy collection...........................................................................................................11
Anwer to the que no: 5 Strategy Implementation.......................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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 1.1. Introduction to Café Coffee Day
Cafe Coffee Day is a brand that brought coffee beans from Chikkamangaluru 's tiny farms to all
India's major cities. In 2017-18, the company generated whopping revenue of some 4,331 crores
but had to shut down 280 outlets in the second quarter of 2019 alone. CCD is India's biggest
coffee chain, owned by Coffee Day Global, a Coffee Day Enterprises subsidiary. CCD today has
over 1,700 cafes, 48,000 selling computers, 532 kiosks, and 403 ground coffee outlets.

Anwer to the que no: 2 TOWS analysis

2.1. Strengths of CCD India:
i) Products of extremely good quality and taste –
The Cafe Coffee Day's espresso menu is famous and people simply love its shakes. In addition to
this, Coffee Day began some sandwiches and titbits that are also a huge success with people
(SWOT Review – Capabilities, shortcomings, opportunities and risks, no date) .

ii) Its USP is affordability with comfort–

You can stay in bistro espresso day for a whole day, and nobody would ask you to quit. This
solace is Cafe Coffee Day 's big USP. Around the same period, the menu is mild enough that
individuals occasionally have their period in CCD (Cafe Coffee Day SWOT Analysis Top Cafe
Coffee Day Rivals, STP & USP Products Comprehensive SWOT Analysis MBA Skool-Study.
Learn. Share, no date).

2.2. Indian CCD weaknesses:

i) Losing the charm –
The company lost its initial appeal mostly because it did not invest money into advances and the
Starbucks segment just as various community rivalries affected the brand image (Aslan, Çinar,
and Kumpikaitė-Valiūnienė, 2012).

ii) Weak environment and decor.

Many Cafe Coffee Day outlets have rather poor temperatures and stylistic themes. The leader
stores are superbly held up, guiding the brand image. Additionally, there are shops opened with
bad insides, though. Everything the brand can comply with since it is an proven model (TOWS
Analysis: A Step by Step Tutorial-Oxford College of Marketing Site, no date).

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 iii) Many CCD stores lose due to incorrect selection of sites –
This has affected CCD after the same amount of shops of the CCD brand name have been
opened at an unacceptable location for some period, not on main streets.

2.3. Opportunities of CCD India:

i) Introducing more options and healthier menu items-
Starbucks is adoring and it has certain benefits over Cafe Coffee Day. One of the benefits is a
superior menu of food alongside the espresso.

ii) Better indoor spaces –

Cafe Coffee Day has to uphold standards inside all channels it has. As you head out of town,
you'll see the inside as gradually pitiful. It strongly considers the brand's standard and continuity.

iii) Coffee cafe market is Asia's fastest rising market –

This is, in fact, apparent and the recognition is expanding with players rapidly joining the
business worldwide.

2.4. Threads of CCD India:

i) Competition –
Cafe Coffee Day has much rivalry, particularly with other espresso bistros including Barista,
Mochas, Starbucks, Costa espresso and others.

ii) Concourse indirect –

Other Hukka parlours like Sheshas, Peshawar, Koylas, U-Turn are also picking up a parcel of
consideration and favored by the youthful age to stay nearby, thus drawing CCD's spellbound
market (Proctor 2000).

2.5. TOWS matrix (Aslan, Çinar and Kumpikaitė-Valiūnienė, 2012)

Table 1: TOWS matrix of CCD

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Anwer to the que no: 3 PESTEL and Porter 5 forces analysis of CCD India

3.1. PESTEL analysis

Political considerations play a major role not just in transnational corporations' investment
judgment, but also in companies like – CCD Coffee. Political environment and other factors
affect not only business costs, but also long-term sustainability. Any of the political
considerations are: government structure, democracy & institutions, military coup chances, risk
of violent struggle, business law and order, etc. (Kanesan, Ismail and Krishnan, 2018).

5
 i) Political Factors Impacting Coffee Wars in India
1.1.i.1. -- Regulatory processes
Regulatory activities are simplified by global standards that have enabled the nation boost its
business-friendly rating (Aslan, Çinar, and Kumpikaitė-Valiūnienė, 2012).

1.1.i.2. -- The probability of an violent war

From the information in India's Coffee Wars: Cafe Coffee Day Takes on the Global Brands case
study, I don't think there's a likelihood of country entering an armed conflict with a neighboring
country.

1.1.i.3. -- Positions of NGOs, Civic Society and Opposition Organizations

The country has a thriving culture of civil society, and Ccd Coffee can create bridges with them
and explore areas of cooperation. Civil society organisations have an impact not only on
policymaking, but also on creating a wide-ranging narrative society (PESTEL review of the
growth of the waste-to - energy incineration industry in China-ScienceDirect, no date).

ii) Economic Factors that Impact Coffee Wars in India

1.1.i.4. – Budget spending
As reported in political considerations, the country's government operates deficit budgets. The
implication for Ccd Coffee is that it can boost its product sales in the short term, but also expose
Ccd Coffee to medium-term forex and currency depreciation risks (PESTEL analysis of the
development of the Chinese waste-to - energy incineration industry-ScienceDirect, no date).

1.1.i.5. -- The pace of inflation

Inflation rate will affect Ccd Coffee products demand. Higher inflation may require Ccd Coffee
to gradually raise inflation rates, which could contribute to lower brand loyalty levels and
persistent cost control attempts. Cost-based pricing can be poor under those circumstances.

iii) Impacting social factors

1.1.i.6. -- Social consciousness degree of culture
Society's higher degree of social issues also manifest in higher customer advocacy and demand
from NGOs, & demand organizations.

6
 1.1.i.7. -- Migration and views against immigrants
Despite the new events such as Brexit and U.S. Southern Border Immigration Detention. Attitude
towards immigrants has concentrated sharply. -- Refugee regulations and refugee standards

1.1.i.8. -- Health and safety mindset

Health and safety mindset is also mirrored in the quality of production processes' goods and cost
structures.

iv) Technological forces impacting India's Coffee Wars:

1.1.i.9. -- Allowing Supply Chain Collaborators
Ccd Coffee could discuss places where technologies could enable supply chain partners. This
will help Ccd Coffee render the supply chain more open and versatile.

1.1.i.10. -- Knowledge transition and licensing Ccd Coffee

The rules and culture of IPR licenses and other digital properties should be closely studied to
prevent shakedowns and IPR robberies.

1.1.i.11. -- Telephone and Internet Coverage

Ccd Coffee can determine the country's level of internet and cell phone penetration as it develops
a necessary business model focused on local requirements and realities.

v) Environmental factors impacting India's Coffee Wars

1.1.i.12. -- Per Capita and National Emissions
What's the country's per capita carbon pollution and what's the country's total carbon emissions
amount. This would help to forecast the country's climate strategy.

1.1.i.13. -- Climate change effect

How climate change will impact business model and supply chain Ccd Coffee. For instance, if
the supply chain isn't flexible, it may lead to bottlenecks if imports from one region of the world
are disrupted due to unexpected climate change.

1.1.i.14. -- Impact and effectiveness of environmental agencies

Environmental quality regulatory organizations have a vital position in safeguarding norms.
Although, sometimes in developing markets, these organizations postpone the procedure as a
bribe extraction strategy. Ccd Coffee should know about such activities in a region.

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 1.1.i.15. -- Consumer advocacy degree on environmental issues
Ccd Coffee must realize the extent of market activism of environmental matters. It will help Ccd
Coffee grow environmentally sustainable goods and thwart PR stumbling blocks (Pan, Chen and
Zhan, 2019).

vi) Legal factors impacting coffee wars in India

1.1.i.16. -- Health and Welfare Regulations
What are the country's health and safety laws, and what Ccd Coffee needs to do to meet them.
Different countries have different health and safety habits, so it is best for Ccd Coffee to perform
extensive study before joining the sector.

1.1.i.17. -- Transparency in the judicial structure.

Transparency is key to equal and clear decision-making. If the procedure is clear and
straightforward, Ccd Coffee can prepare with greater confidence.

1.1.i.18. -- Law on Securities

What are the country's securities laws and conditions for listing the company on national or
regional stock exchanges.

3.2. Porters five forces analysis of Coffee retail industry in India

i) Bargaining power of purchasers (Baburaj and Narayanan, 2016):
Buyers' haggling intensity is bearably high given that espresso's trading cost is not incredibly
high in India as there are various neighborhoods and general espresso indicates that they are
open at the entrance step.

ii) Bargaining power of Supplier:

Exchanging suppliers' intensity is bit to be poor provided that cartelization is not near. The
organization and other regulatory bodies have already completed two or three standards and
preconditions on the cost of espresso and milk (French 2016).

iii) New entrant's threat:

The danger of new individuals is used as a medium given how the Indian espresso business
center now settled neighborhood and usually brands are. Likewise, the cost of considering an
espresso company calms high and necessitates monumental enthusiasm for the gear and other

8
strategy needed (Porter's Five Powers of Coffee Wars In India: Cafe Coffee Day 2013 Case Aid,
no date).

iv) Substitute Hazard (French, 2016):

Replacement risks are extremely large for different causes. First reason is that India is striking
for tea country and consequently tea will replace espresso instantly. Moreover, various rewards
such as presses and better milk may be laudable espresso alternatives.

v) Competition industry:
Competition in the company is seen on a higher hand, given the way some family and large
espresso brands are differentiated. Nevertheless, there's a ground-breaking help to take off
general players like Starbucks and Gloria Jean from around the globe.

Anwer to the que no: 4 Strategy Formation Process

Strategy Formulation is an analytical process of selecting the best course of action to meet
organizational goals and vision (What is Strategy Formulation? Definition, Process, Level-
Business Jargons, No Date). It is one of strategic management phase measures. The strategic plan
helps a company to analyze its finances, include a financial plan, and develop the most suitable
action plan to maximize income (Steps in Strategy Formulation Phase, no date). Relating CCD
India company theories as follows:

9
 Figure 5-1:Steps of Strategy Formulation

4.1. Establishing organizational objective

This involves an organization's long-term goals. Strategic choices may be made after corporate
priorities are set (De Brouwer, 2009). To be the best café chain by delivering a world-class coffee
experience at an reasonable price (Best Cafeteria Restaurant Regarding Café Coffee Day, no
date), and the mission statement: To be the only workplace for dialog around a cup of coffee
(Best Cafeteria Restaurant, no date).

4.2. Organizational climate study

This includes SWOT analysis, which implies recognizing the strengths and vulnerabilities of the
business and tracking the behavior of rivals to consider possibilities and risks. Strengths and
disadvantages are internal variables the organization regulates. Opportunities and risks are
external variables about which the organization has little influence.

In CCD case, SWOT review is performed in the earlier part of the task.

4.3. Forming quantitative targets

Defining expectations to achieve the company's short-term and long-term priorities. Example, a
company's 30% growth in sales this year.

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As for the company in question, the latest quantitative targets will be to make up the losses they
currently face, they had to close 280 stores throughout India (Cafe Coffee Day shuts 280 more
outlets in April-June quarter-market news-Hindustan Times, no date).

4.4. Objectives related to divisional plans

This includes establishing goals for each department to function in coherence with the entire
company. In this phase, the contributions made within the company by each department or
section or product group are defined, and strategic preparation is performed by each sub-unit.
This includes careful macroeconomic dynamics research.

CCD seeks to avoid capital bleeding by shutting stores, but this is a short-term remedy. To get
back to the picture, they need to split their target into operational divisions, such as marketing
department, to concentrate on marketing activities to encourage more buyers.

4.5. Analyzing results

This is used to measure the discrepancy between an organization's real and standard results.
Analyzing results involves finding and analyzing the difference between expected or desired
output. The company must render a crucial assessment of historical success, current state, and
desired potential circumstances. This important assessment describes the difference between the
present experience and the organization's long-term aspirations. The company aims to predict its
possible future situation if existing patterns continue.

The factors behind CCD 's condition are massive balance sheet debt, one of the easiest
approaches to assess performance is to decree debt worth.

4.6. Strategy collection

This is the final strategy formulation phase. It includes assessing options and choosing the right
approach to be the organization 's strategy.

CCD India 's strongest approach would picture makeover owing to VG Siddharth 's suicide and
the income tax department fiasco. CCD's best approach could be picture makeover.

Anwer to the que no: 5 Strategy Implementation

According to Anna Jordan, five elements of picture makeover tactics may be used to address the
CCD crisis (Does the company image require a makeover? Marketing Donut, no date).

11
  Clearing the air: CCD India, income tax conflict and the spokesperson VG Siddhartha 's
death generated doubt (Agarwal et al . 2012). The organization must state its stance with
its stakeholders on the issue.
 Recover consumer trust: controversy linked to VG Siddhartha and income tax department
has caused the consumer to lose faith on the company, which is disastrous for any
corporation. The second step to picture makeover for CCD is to cater to consumers and
shorten the situation for both income tax department and debtors(Khan, 2017).
 Boost constructive awareness: a company's entrepreneur 's suicide has a lot of detrimental
effects on consumers ' minds. So raising constructive visibility is a part of the body
makeover plan. Getting back the company's good tales (Chimanikire et al. 2007)and
employing in Corporate Social Responsibility ( CSR) is the only way to come back from
this CCD crisis.
 Switch to specialists: Taking specialists' recommendation to speed up the method is the
fourth step in picture makeover. For CCD India, naming a friendly face with expertise as
a spokesman is quite important as VG Siddhartha 's suicide the entrepreneur and the
business face created this crisis for them first (Agarwal et al . , 2012).
 Future planning: when coping with the situation, future planning arrives. Many
companies would prefer to rebrand their organization from scratch. Connecting the team
to consolidate potential goals while exchanging thoughts is also the right approach.

Conclusion
Café Coffee Day or parent diversified its food offering. It presently operates in shopping, leisure,
distribution, financial and technology parks. CCD 's goal is predominantly school and college-
going and upper to middle-income youth. Considering the changes in its target segment's tastes
and preferences, its menu list misses the new offerings. The menu list should be revised with
new snacks and offerings, such as? Holding the price plan as existing pricing. To target premium
clients, does it concentrate on enhancing customer support, which can be achieved by targeted
recruiting procedures, and should not the business formally train its staff in-house? It can spend
more in its lounges and open up a larger number of those lounges so that it can put itself above
foreign brands like Starbucks, this argument needed to be made and thoroughly analyzed in the

12
study earlier. Given the financials of the business, it should spend more in building a positive
brand picture. TV platforms of social media advertisement campaigns / promotions.

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