marketing strategy of cafe coffee day

1. Marketing
strategy of café
coffee day

2. INTRODUCTION
• Founded in 1996
• India's largest coffee conglomerate, Amalgamated Bean Coffee Trading
Company Ltd
• Strives to provide the best experience to their guests
• Pioneer of the café culture and the first to launch the “coffee bar” concept in
India
• Network strength: 1450+ cafés in 172 cities/towns across India and growing
• First to roll out the ‗coffee bar‘ concept in India with its first café in
Bangalore.
• Outlets set up are based on the three formats -- cafe, lounge and square.
• Menu ranges from signature hot and cold coffees to several exotic international
coffees, tea, food, desserts and pastries and exciting
• merchandise such as coffee powders, cookies, mugs, coffee filters, etc. Is
available at the cafés

3. INTRODUCTION CONTD…
• CCD’s SBU
• – Coffee Day Fresh 'n' Ground
• – Coffee Day Xpress
• – Coffee Day Take away
• – Coffee Day Exports
• – Coffee Day Perfect
• – (FMCG Packaged Coffee) division

4. WHY CAFÉ COFFEE DAY
• Average Footfalls: 300 per café per day
• Average dwell time at café: 45 minutes
• Meeting place for 15-45 year olds
• A place where :Students frequently visit most after ―home
and workplace/college Friends and colleagues meet n groups
of 3 or more.
• One rejuvenates and are free to be themselves rather than a
place to be ―seen at‖
• The café is also the venue for business meetings (23% ),
celebrating special occasions (20%) or just plain ―Time Pass‖
(57%).

5. KEY TARGET AUDIENCE
• Major chunk of CCD customers falls within the age group of
20 to 30 which accounts for 59% of the overall percentage.
• The group comprises of mainly college going students and
young working professionals
Above 30
Above 19
16-19
20-24
25-30

6. SALES

8. COMPETITORS
• Barista
• Costa Coffee
• Beyond Coffee
• Gloria Jeans
• Minerva Coffee Shop

9. COMPETITORS
• Indirect Competitors:
 McDonald
 Haldirams
• Global Competitors:
 Star Bucks

10. SWOT ANALYSIS

11. COMPETITOR ANALYSIS

12. FACTORS
• Political
Easy sourcing of coffee beans
Cost control because of Govt regulations
• Economic
Heavy coffee drinks in South India
Cheaper sourcing maintain quality
• Social
Targets youth and middle class
Affordable for a meeting place

13. FACTORS
• Technological
Wi-Fi facility at every outlets and music
Digital Marketing for promotions
• Environmental
 Use Bio degradable products
• Legal
Ethical and based on customer delight
Less consumer complaints and quick customer service

14. THE MARKETING MIX
• PRODUCT
Consumer needs
• PLACE
Availability
• PRICE
Representing good value
• PROMOTION
Advertising

15. 4P’S OF MARKETING

16. PRODUCT
• Core Product
Experience
• Supplementary services
 Wide range
 Merchandising
 Ambience
• Delivery
Hospitality (Lounge & Square)

17. PRICING STRATEGY
• PSYCHOLOGY PRICING
Pricing the product as Rs 69, 79, 59 etc. rather than in the
multiples of ten to give a feel that the product less priced.
• LOCATION PRICING:
On the basis of outlets, prices have been positioned
• Café
• Lounge
• Square
• COMBO PRICING
Clubbing up two or more products on special occasions.

18. PRICING STRATEGY
• PREMIUMS PRICING
– Adding things like cream, chocolate sauce and
positioning as a premium coffees
• VALUE BASED PRICING
– Providing different variants in terms of prices by
altering the quantity to give a sense of affordability

19. PLACE
• Strategically located outlets
• Kiosks in offices
• Coffee machines in college canteens

20. Café Coffee Day Store Coffee parlors
where people can enjoy the coffee have
eatables and hangout with friends
Café Coffee Day Lounge Premium café
from Café coffee day target selected group
Café Coffee Day Square A unique Café
where variety of single origin coffee brews
from coffeegrowing countries are available

21. PROMOTION
• Started TVC and Print campaign at the end of 2012
• Co Branding in Movie and TV serials
• Sales Promotion Activities
– Combo Deal
– Happy Hours
– Privilege cards
– Redeemable coupons
• Through Interactive Media
• Held Contest around a Very Popular Programme
• Tie up lot of youth brands

22. DISTRIBUTION STRATEGY
• Easy accessibility
There is a Cafe Coffee Day outlet in every major city in
India and are easily accessible.
• Town locations
Customers in the smaller communities also enjoy good
quality coffee and snacks at affordable costs because the Cafe
has set up outlets in the towns of India.
• Distributors
The coffee produced on the Cafe’s farms, are distributed
through wholesalers and retailers to customers who wish to
use the coffee at home.

23. RECOMMENDATIONS
1. To improve the interiors and décor.
2. To have more and more tie-ups.
3. Only 50 % or less than 50 % people find Café Coffee
Day quality of service, ambience, pricing and location
to be very good which proves that still Café Coffee
Day need to do lot of homework in order to satisfy its
customers.
4. It should introduce a feedback form system in order to
know about the customers satisfaction level.

24. CONCLUSION
• 1. C.C.D. is the fastest growing Café in the country.
• 2. The major competitor undoubtedly Barista.
• 3. That Café Coffee day is planning to go international.
• 4. The other major things regarding service marketing is that
customers give top priority to the quality of the services /
products and ambience.
• 5. It is providing tough competition to its competitors by
satisfying its customers with great café experience.
• 6. “A lot can happen over coffee” message has touched the
hearts of youngsters who are the largest consumers of C.C.D.

25. REFERENCES
• Personal experience.
• http://www.casestudyinc.com/coffee-day-brand-strategy-
india
• http://www.pr-inside.com/india-food-and-drink-report-
qr2164244.htm
• http://en.wikipedia.org/wiki/Marketing
• http://www.cafecoffeeday.com/
• http://www.barista.co.in/users/index.aspx