Case 3

Café
Coffee
Day : Case
Study

Anurag Sharma
819004
Cafe coffee day(CCD) was
the first-ever coffee
chain opened in India.VG
Siddhartha was the man
behind making coffee
popular in a nation of
tea-lovers.
Also, CCD owned Asia’s
single largest coffee
estate and India’s best
coffee brand.
It was the one with the tag line ‘A lot can
happen over coffee’, Café Coffee Day was
the one who touched the hearts of
millions of Indian youth, assuring them
that all they need is a cup of coffee and a
peaceful place to talk it all out!
India was strictly a
tea-loving country.

Let us discuss
everything from pin to
plane about the brand
who successfully made
coffee popular in a
country full of tea
lovers.
HOW CAFE COFFEE DAY STARTED

V G Siddhartha from
Chikmangaluru district of Karnataka
was the man behind changing the
beverages culture of India with a
variety of drinks and side dishes
hard to resist.
Coffee Day Global which is the
parent of the Cafe Coffee Day chain
was incorporated in 1993.
The first CCD outlet was set up on
July 11, 1996, at Brigade Road,
Bangalore, Karnataka. V.G.
Siddhartha opened the first CCD
outlet with an initial investment of
₹ 1.5 crores.
https://www.youtube.com/watch?time_continue=67
&v=qoUSKvI1ce8

Siddhartha happened come across a German business owner,

who was interested in buying coffee beans from him for his
“leading coffee brand in Germany – Tchibo”.
During that brief discussion with the German businessman, he
told his story of how his brand had started in a small 10 ft. shop
Idea behind ccd in Hamburg. This inspiring tale of the Tchibo gave Siddhartha an
outlook of a different world altogether & opened his eyes and it
also gave him a wonderful idea.
 Challenges Faced By CCD
Having done with the initial foundation,
the major challenge faced by the cafe
coffee chain was to make a
revolutionary change in the Indian
culture where the majority of the
population prefer drinking tea rather
than coffee.
After the initial struggle, the homegrown cafe chain
came a long way, credited with the start of coffee shop
culture in India but then it finds itself facing tough
competition not just from the international chains such
as Costa Coffee, Starbucks or Barista but also from
various domestic players and concept cafés.
How Ccd Overcome Challenges
To stand up against the competition, CCD has built its
retail strategy and named it 3As strategy :

Affordability
Accessibility
Acceptability
What worked best for the Indian cafe coffee chain
was its combination of aspiration and affordability.

Even as it gave coffee an attractive makeover,

CCD’s prices stayed well below its rivals.

Ensuring that it remained the favorite hangout

choice for school and college students or young
adults on meager paychecks from their first jobs.
 Accessibility

It wasn’t just restricted to the metro cities. If there’s one singular claim
that Coffee Day can makeover all of its rivals, it is that it took coffee to
cities and towns across the country, and offered the same experience
everywhere.

They always believe in serving an experience along with the coffee.

They have ensured that the cafes are at an arm’s reach.

 Acceptability
Today, coffee is not just seen as a beverage but a
social glue that brings people together to relax and
unwind.

“Let’s catch up at CCD,” is probably one line most

Indians have said or heard at one point or the other
over the last two decades.
Marketing and advertising strategies of CCD

As we have discussed above, CCD’s strategic approach was based on

the 3 A’s i.e. Affordability, Accessibility, and Acceptability. 3A’s are the
significant factors contributing to the growth of the brand.

Secondly, Digital Marketing has become an integral part of Café Coffee

Day’s marketing plan.
CCD’s fan base is overwhelmed with over 5 million fans on its social
media pages and consistently engaging customers on Facebook,
Instagram, Twitter, Youtube, etc.
 The youth was the key target and early adopters of trends, they also
evolved their strategy and became more digital-centric as they engaged
with the new age world.

CCD marketing also constantly ensures the continuous active

engagements of the consumers, like they conducted the ‘Latte Art
Festival’ – where customers were served coffee topped with creative
latte art designs.

As CCD goes digital, it is also looking at innovation in user experiences

by adopting new technologies to enhance customer service.

https://www.youtube.com/watch?v=MnAqhVdngTE

https://www.youtube.com/watch?v=G6BF4KLl2hQ
 STRENGTHS

WEAKNESSES
THREATS

SWOT ANALYSIS OF OPPORTUNITIES

CAFE COFFEE DAY
 STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• Products of • High pricing • Coffee cafe • Growing

extremely good • Wrong-site industry is one competition
quality and taste selection of the fastest- from global and
• Highest no. Of • Lacks strength to growing industry local coffee
stores maintain the in Asia chains
• High brand brand • Enter and attract • Growing
equity among international attrition rate
the youth markets
• Vertical • Rising income of
integration people