PROJECT ON

MARKETING
MARKETING ANAYSIS OF CAF COFFEE DAY SUBMITTED BY :Geetika Agarwalla

INTRODUCTION
Caf Coffee Day is the countrys first fine coffee-chain which is engaged in every phase of Indian coffee from cultivation to consumption.Its entrepreneur, VG Siddhartha is known as Mr Indian Coffee. The cuppa we drink at Cafe Coffee Day are made from berries that grow on the 5,000 acres, his family owns in the coffee-growing heartland of Karnataka and they have been processed in the familys own curing works. In 1995, he started retailing coffee through 30 outlets where beans were roasted and ground before the consumer. Today, there are 350.His family has been growing coffee for 120 years. His philosophy: value-add at every stage.

MARKETING MIX
The marketing mix is composed of 4 Ps of marketing : product ,price ,place ,promotion

PRODUCT : Coffee
At Coffee Cafe Day,they grow their own coffee and serve it in its cafes. They have three varieties of coffee to choose from: Cold coffee :Silver Medal Prize winning coffeeKaapi Nirvana at World Barista Championship, 2002 Hot coffee International coffee

PRICE
Coffees here are very reasonably priced compared to other caf joints.The reason for this is that they grow their ow coffee and serve it.The prices for an average coffee ranges between Rs 20 & Rs.35. Among the hot coffes,Expresso is Rs.15 and among the cold coffes,Tropical Iceberg is just Rs.25 which is quite affordable. Caf Day in association with Net Carrot Loyalty Services has launched a loyalty programme to reward the regular customers of Caf Day which entitles the members of Caf Day to a 10% discount on all coffees.

PLACE
Caf Coffee Day are the pioneers of the caf concept in India with its first caf at Brigade Road,Banglore in 1996.At present it owns and operates 136 cafes across India which includes 33 cafes in Delhi,Banglore,Hyderabad,Chennai,Pune,Manglore, Chikmagalur and Kolkata.

Caf Day also plans to tap smaller cities such as Agra,Mussourie,Dehradun,Nagpur,Jaipur,Bhubneshw ar,Jamshedpur and even Hubli.It plans to open 200 cafes by 2004 Banglore-based coffee chain,Caf Day and BPC have announced an allinace to open Caf Day outlets in select In & Out BPCL petrol pumps.

PROMOTION
Caf Day has carried out extensive marketing and sales promotion activities to make its brand popular and known among the youth of India. Its promotions include : Making Caf Day an avenue for promoting local talent by feauring live musical performances by upcoming musicians to offer a cosmic mix of music to customers. Retail tie-up with B4U Music, the music and lifestyle television channel for youth. Regionalising the menu and upgrading it to look at the customer preferences. conducting brewing workshops to help customers on preparation of a good cup of coffee in terms of cuppage, costing, brewing methods. cont

CURRENT PROMOTIONS
Khadder promotion Oyzterbay promotion Bohemia promotion Other discounts

4%
DISCOUNT

SEGMENTATION
Segmentation involves dividing the heterogeneous market into homogeneous sub-parts.Market segments can be identified by examining the the geographic,demographic,psychographic and behavioral differences among buyers. Coffee Day has also done their segmentation based on these factors :-

GEOGRAPHIC SEGMENTATION

The location becomes a very important issue.Earlier Caf Day was just concentrating on metros and big cities like Banglore,Delhi,Chennai,Hyderabad,Pune,Kolkata, Manglore but now Caf Coffee Day plans to tap smaller cities like Agra, Mussourie, Dehradun, Nagpur, Jaipur, Bhubaneshwar, Jamshedpur, and even a Hubli to popularise its brand everywhere.

DEMOGRAPHIC SEGMENTATION
AGE: It is Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket. INCOME :People with moderate to high income are the target customers of Caf Day. OCCUPATION : They aim students,young professionals and entreprenuers . EDUCATION :Semi-literate to literate people are generally Their prospective customers. MARITAL STATUS:Since Caf Day targets the youth,generally single people are more regular here.

BEHAVIOURAL SEGMENTATION
USER-STATUS :Caf Day targets the people who are heavy drinkers of coffee and have a brand loyalty towards its joint.

POSITIONING
Positioning is the act of designing the companys offering in the minds of the consumer. Caf Day has positioned itself as A lot can happen over a cup of coffee!. It has positioned itself as a youthful,lively joint where great coffee and good music come together.Customers can have a rich ambience & unique coffee- buying experience.People come here to fight their fatique with coffee and rejuvenate themselves. Sudipta Mukherjee, Head of Marketing at Cafe Coffee Day says It's all about positioning oneself in the right slot. It is regionalising its beverage offering.

SWOT ANAYSIS
STRENGTH

It most unique aspect is that it grows the

coffee and serves in its cafs .

Provoides quality product at affordable price People working here are very young and Coffee point outlets are within the reach of
customers.

energetic provoiding customore-friendly service round the clock.

Coffee improves mental performance, boosts

physical energy & improves and elevates the mood.

Provoides world-class coffee experience.

WEAKNESS
Limited to India only.
Menu is not open to change.Not much variety in snacks.It is becoming streotyped for customers.

THREAT
Stiff competiton from other big coffee giants Barista and Qwiky. Indian consumption value of tea is much more than coffee.Preference for tea to coffee

OPPORTUNITY
Spread of cafe culture making a
major impact in the near future. It can translate the preference from tea to coffee.
It can Create the necessary awareness, stoke that desire to buy, push the consumer into that potent action of actual trial and satisfy him eventually, cup after cup. Offering it with such a consistency that the brew in the cup becomes addictive as well. Explore new markets and target abroad.