A study on CCD

1. Chetana’s Bachelor of Management
Studies
Subject :Strategic Management
Topic : Café Coffee Day
Group no. 3
Submitted to: Prof. PrasannaSant

2. GROUP MEMBERS
Names Roll no.
Gaurav Babel 2103
Prince Pandey 2143
VaibhavGoregaonkar 2118
KarthikNadar 2138
GirijaHirve 2123
AkshayaSurve 2158

3. Introduction:
Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee
Trading Company Ltd. (ABCTCL). ABCTCL grows coffee in its own estates of 10,000 acres (4047
ha). The land value of the plantations is US$250–300 million. It is the largest producer of
Arabica beans in Asia. Apart from this, the group also sources coffee from 11,000 small
growers. ABCTCL is one of India’s leading coffee exporters with clients across USA, Europe and
Japan.
A 750 crore ISO 9002 certified company.
First to launch the ‘coffee bar’ concept in India.
1319 outlets all over India and still counting..
History :
It was in the golden soil of Chikmagalur that a traditional family owned a few acres of
coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading
Company Limited, popularly known as Coffee Day was formed. With a rich coffee
growing tradition since 1875 behind it coupled with the opportunity that arose with the
deregulation of the coffee board in the early nineties, Coffee Day began exporting coffee
to the connoisseurs across USA, Europe & Japan. In the calendar year 2000, Coffee Day
exported more than 27000 tonnes of coffee valued at US$ 60 m to these countries and,
for the second time in its short career of 7 years retained the position as the largest coffee
exporter of India.
Coffee Day has a wide and professional network in the major coffee growing areas of the
country comprising over 48 agents and 50 collecting depots. Coffee Day's two curing
works at Chikmagalur and Hassan cure over 70,000 tons of coffee per annum, the
largest in the country.
Coffee Dayhas a well-equipped roasting unit catering to the specific requirement of the

4. consumers. The process is carried out under the control of experienced personnel to meet
highest quality standards. The most modern technology available is used to maintain
consistency and roast the coffee beans to the demanding specifications of the discerning
coffee consumers.
The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka.It was
founded by V.G. Siddhartha.
Mission statement :
To be the best Café chain by offering a world class coffee experience at affordable
price.
Vision statement :
To be the only office for dialogue over a cup of coffee.
Important events :

5. Competitors :
Barista: Originally known as Barista, this coffeehouse chain in India was taken over by
Lavazza in 2007 and since then is known as Barista Lavazza. Barista was the fastest brand
to make it to the list of Super brands and is ranked among the top 50 phenomena that
changed India. With a menu that ranges over Mojitos, frappes, Lemonades, Ice teas, cold
and hot coffee, sandwiches and wraps, salads, breakfast items, pastas, pizzas, soups,
indulgent cakes, muffins, juices and snacks; one does have a tough time categorizing it as
just another coffee shop.
Costa Coffee: The second largest after Starbucks, Costa Coffee has about 1700 stores
across 28 countries. Though it doesn't come as close to Starbucks in terms of numbers, it
does better than other competitors. Opened in 1971 in UK by Italian brothers Sergio and
Bruno Costa, it specializes in Italian coffee. Their biggest branch is in Dubai and can house
about 320 people at one time.
Starbucks: With over 19,555 stores in 58 countries, no one serves “bigger”! The second
largest coffee house has about 1700 stores! Almost a household name for coffee lovers all
over, Starbucks is all determined to have your eyes opened. Based in Seattle, Washington,
Starbucks began with selling high quality coffee beans and equipments but now serves a
wide range of products which include brewed coffee, espresso based hot drinks, hot and
cold drinks, coffee beans, snacks, pastries, sandwiches and items that include mugs and
tumblers. To know the impact, it is estimated that Starbucks sells close to 4 billion cups of
coffee every year.

6. Market share:
Café Coffee Day have a market share of 60%, while its biggest competitor Barista has a market
share of 25%. Remaining 15% share is of other competitors.
In-house research:
Research shows that while the customers go to them for products, a substantial
amount of their customers go there to “hang out” with friends
The café is also venue for business meetings (13%), celebrating special occassions
(10%) or just plain timepass (17%).
Sex ratio and marital status:
Among the customers who visit Café coffee day 52% are females and 48% are males.
They are further classified into three categories. They are married, singles and others. There is
a definite skew towards singles ,i.e., 69%. Married people are 28% and others are 3%.
Group sizes:
Maximum foot-falls are in group size varying from 3 to 5 people followed by people
coming in groups of 2, a major part of which are couples. Group of 2 to 5 people have
great share of 54% followed by group of twos- 21%, followed by singles- 18% and more than
five- 7%.
Products:
Grows the coffee it serves in its cafes.
Well-equipped roasting unit.
The eatablescatered by different vendors.
a) Ice creams – Cream Bell.

7. b) Milk – Amul.
c) Snacks from local vendors.
Sells merchandisetrough its stores.
Enjoys trust for quality, hygiene and consistency of food.
Products:
Price:
Affordable prices.
Price range starts from Rs. 52 onwards.
Only minor changes in the pricing policy due to changes in Government taxes.
Physical evidence:
Logo :
- Large font- Emphasis on the word Café

8. - Red signifies Leadership and Passion
- Swirl for purity of purpose and the feel of coffee
Architecture and Décor uses bright colours and interiors according to the youth.
Designing of pamphlets posters and menu to attract the youth.
Process:
Ordering and delivery earlier was self service and now most of the coffee shops have
waiters to take order and deliver at the table.
People:
Emphasis on motivation and personal skills of the people.
Friendly waiters and services.
Employees follow international standards of hygiene, cleanliness and personal
grooming.
Reward schemes like employee of the month.
Places:
Prime factor for success- Located at every possible location where business can be
generated. Caters to target market with strategically placed outlet.
Positioning and brandimage
India leading coffee chain Café Coffee Day has unveiled its strategy to strengthen its leadership
position with an all new brand identity that syncs with its vision to be the friendly and stylish
social hub
Created by Landor Associates, a global brand consulting firm and developed from in-depth
dialogue with customers, coffee lovers and stakeholders, the new change entails an all new
'smart' menu, changes in furniture design and placement, new uniforms, new cutlery and total
café rebranding, the company said

9. The company, which posted a turnover of around Rs 750 crore this year, is working towards
revenues of $1 billion by 2015. The company has witnessed a 25 per cent year-on-year growth,
Gupta added
POSITIONING AND BRAND IMAGE Brought café culture to India For the youth: Young (AT
HEART) customers, young and friendly staff Highest distribution network Targetmiddle and
upper middle class Age group 15-29
Companies address needs by putting forth a value proposition, a set of benefits thatthey offer
to customers to satisfy their needs. The intangible value proposition is made physical by an
offering, which can be a combination of products, services informationand experiences.
Original logo
The First Café Coffee Day logo was a bright red cube with a green stroke above 'e' in 'Café
Coffee Day'. The word 'Café' was made to appear dominant to indicate Café Coffee Day's
introduction of 'Café culture' in India. The font used for 'Café' is called SLURRY - the font looks
as though the letters have congealed or coagulated out of liquid. The current logo includes a
dialogue box which highlights the connection between 'coffee' and 'conversations.' This logo
also reflects their current tag line, "A lot can happen over coffee."
Cafe formats:
CAFÉ FORMATS Different café formats: Music cafes, Books cafes, Highway cafes,Garden cafes.
Cyber cafes Latest addition: Lounge cafes
The company's lounge is a more premium format compared to its cafes. In the lounges, the
beverage is paired over gourmet cuisine and not just over fast food. The cuisine in the lounge
will be European-styled and enable consumers to customise their food items like bread, pizza,
etc. High streets, premium malls and airports are the type of locations the company is
identifying to set up the new lounge outlets.
Promotion :
Through SMS Valentine day promotion, &quote “Café Coffee Day Luv Zone" Through
Television Held a contest around a very popular program on Zee English called Friends. They
have tied up with Channel [V]& Get Gorgeous contest. Ticket sales: They were involved in
WWE, Elton John, and Bryan Adams ticket sales

10. PROMOTION Tie-ups Liril, AirtelFriends. HDFC wanted to promote their debit card and they
choose Café Coffee Day. So 21 cafes have debit card machines. Association with movies Bas
YunHiKhakee Main HoonNaaSocha Na ThaMujhseShaadiKarogi
Sales Promotion: Special 'Café Citizen Card' PROMOTION
1) 2003- Levis launched a new range of low Rise Jeans through a campaign called '6' below'
CCD displayed pop of levis in all its outlets during the campaign
2) 2004- they launched of Liril orange soap by HLL was conducted in cafe coffee day
3) 2004- TVS scooty tied up with CCD for events in the coffee bars and malls on valentines day
in february
4) 2004- CCD was the official ground partners for the channel v get gorgeous contest.
RE-BRANDING:
Earlier perceived as a place where intellectual meet Positioned itself as a coffee bar and has
maintained that position for a long time now. CCD saw a latent market in youngsters For
youngsters- CCD a fun place where one can go anytime of the day and have fun with friends. In
2002 CCD underwent a rebranding exercise. CCDspent INR 1.5 billion to redesign existing cafes
(2009). RE-BRANDING OLD LOGO NEW LOGO
Café Coffee Day, the leading coffee chain has recently enhanced the customer-café
relationship with new brand initiatives. The changes includes an all new menu for in-house and
take away dining, changes in ultra comfort furniture design and seating, new uniforms, cutlery,
and total café rebranding.
RE-BRANDING OLD LOGO NEW LOGO:
The First Café Coffee Day logo was a bright red cube with a green stroke above ‘e’ in ‘Café
Coffee Day’. The word ‘Café’ was made to appear dominant to indicate Café Coffee Day’s
introduction of ‘Café culture’ in India. The font used for ‘Café’ is called SLURRY – the font looks
as though the letters have congealed or coagulated out of liquid. The current logo includes a

11. dialogue box which highlights the connection between 'coffee' and 'conversations.' This logo
also reflects their current tag line, "A lot can happen over coffee."
SWOT Analysis:
Strengths:
Products are of extremely good quality and taste.
It’s youth oriented brand, hence huge potential since 40% of the population is
below 20.
It produces the coffee it serves hence reducing the cost.
USP of brand is its considered a highly affordable brand.
Weakness:
The store ownership of the company might hinder in their expansion policies.
Price of the products is relatively higher than Java Green and McDonalds.
CCD cafes are small in size.
Many of the CCD stores are incurring losses due to wrong site selection (National
Highways).
Opportunities:
Coffee café industry is one of the fastest growing industries in Asia.
Many people like to visit CCD for informal meetings.
CCD has gone international, and is planning to attract many new international
markets, hence gaining international recognition.
Changing lifestyle of youth, they like to spend time lounging.
New products.
Threats:
Competition with other coffee cafes like Costa Coffee, Barista and Mochas.
Customer trends towards more healthy ways and away from caffeine.
International players like Starbucks.
New entrants and costs.

12. Competitive strategies:
CAFE Coffee Day (CCD) wants to become a global brand after its success in India. By 2012-13,
CCD plans to be a big global chain both with organic growth and acquisitions. By the end of this
year it will have 900 cafes and 2,500 by 2012-13. CCD already has its cafes in Austria and
Pakistan and wants to set up cafes in Poland, Russia, Hungary, Dubai, Kuwait, China and Saudi
Arabia. The company has received investment from Darby Templeton and Deutsche Bank to
the tune of $100 million for expanding its network. In August 2008, CCD announced that
leading international brand consultant Landor will help it to reinvigorate its brand and take it
to the next level. Only the brand name and logo saying 'A lot can happen over coffee' will
remain the same. CCD will now focus more on projecting a feeling of togetherness (friendship,
romance or office meeting in an informal environment) and celebration which are critical core
values. Accordingly the cafe ambience, the look and feel inside will be changed.
Values of Café Coffee Day:
PRIDE- I take pride in my work and in my organization.
RESPECT- I respect my customers, my subordinates, my peer and my superiors.
INTEGRITY- I will show the highest level of integrity towards my work and my company under
all circumstances.
SELF-DISCIPLINE- I will imbibe and practice self-discipline in all my daily activities.
MOTIVATION- I will always be motivated to give the best for my organization, my team and my
customers.