CAFÉ COFFEE DAY

By, Nikhil Cherian (FT11139) Ashish Shetty (FT11311) Rahul Choudhury (FT11150) Raghav Arora (FT11249) Rahul Raj (FT11445)

The Brand Chosen
Café Coffee Day has the largest café retail chain in India ² 1001 outlets as of 24-10-2010 CCD pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power.

The Brand Chosen
´CCD today has become the largest youth aggregator, and from a marketing stand point, the success has come by focusing on the 3As: Accessibility, Affordability and Acceptability.µ - Bidisha Nagaraj, The Marketing president of Cafe Coffee Day

CCD·s Mission statement: ´To be the best Cafe chain by offering a world class coffee experience at affordable pricesµ

Why was this brand chosen?
To study innovative formats to woo new customers How they achieved their stated goal of ´Value for moneyµ ² price of their offerings are relatively cheaper than the others for the same quality What are the benefits/obstacles of being present in many locations ² to be more accessible than their competitors How has their system of no franchises worked for them ² all outlets are owned by the ABC group

Why was this brand chosen?
A brand which continually updates its look.
†

Spring cleaning in terms of logo, design/feel of their outlets lest ´fatigueµ sets in on the brand image.

New logo to symbolize ´dialogueµ. A place of interaction for it·s customers

Why was this brand chosen?
Café Coffee Day·s tagline: ´A Lot can happen over Coffeeµ

Insights Gained
In Terms of Advertising to create Brand Awareness: CCD does not advertise itself via traditional media ads Growth has been Organic.
†

Physical presence is sufficient to create brand awareness

CCD advertises ABC·s other offerings such as The Serai Resorts.

Insights Gained
CCD as a meeting place: ´CCD is not just in the business of coffee, It·s in the business of enabling businesses/people to meet each otherµ Given CCD·s presence in every major city and most major towns, the simplest and most convenient meeting point that everybody knows is a CCD (it·s an easily identifiable landmark), unlike Barista/Lavazza While others are building coffee business, CCD is building real estate/meeting-point business where coffee is just a by-product. They wish to have a café in any location where some business can be generated

Insights Gained
CCD·s growth story closely resembles Starbucks. Expansion to the Rural market?
† Not

at the moment. As of now, Non-essential goods won·t do well, penetrating the tier 2 & 3 towns though

Recommendations
Focus needs to be on product innovation and experience ² to meet rising customer expectations. With time, the rural market will be ready for CCD·s entry. It will have to create the same café culture craze it managed to do so well in the cities to a people unaccustomed to it.

Recommendations
CCD·s strength lies in it being able to provide quality matching it·s competitors for relatively cheaper prices. This is due to:
† The

ABC group has complete control from production of Coffee in it·s fields of Chikmagalur, Karnataka to it·s 1001 outlets around the world. † It cannot afford to let that advantage slip

Recommendations
CCD has expanded out of India. They now have Cafés in: Pakistan, Austria and Germany CCD·s expansion into the International market will be fraught with more difficulties as:
They will face stiff(er) competition † Customers have higher expectations † CCD will have to raise the bar even higher in terms of product innovation and service offerings.
†

Recommendations
CCD·s No-alcohol policy will have to change to be successful in the European and American markets.
† As

is evinced by the Starbucks Liqueurs range ² which has been enormously successful.

Thank You
µA lot can happen over coffee¶

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