Cafe Cofee Day- Swot + Competitive Swot Analysis (Barista).
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2. CONTENTS
INTRODUCTION
MISSION AND VISION
ANNUAL REPORT KEY TAKEAWAYS
- 2019-2020
- 2020 ( Q1, Q2 )
MARKETING MIX
SWOT ANALYSIS
COMPETITIVE SWOT ANALYSIS -
BARISTA
STRATEGY GAPS AND A WAY TO FILL IN
- INDIVIDUAL UNDERSTANDING
HAVE A NICE DAY!
3. IN LAST 22 YEARS, CCD HAS BREWED
ITS WAY TO SUCCESS, IN
POPULARITY AND LOVE IT HAS
STORED.
REVOLUTIONARY CAFE COFFEE
DAY CHAIN STARTED BY VG
SIDDHARTHA IN A TEA LOVING
COUNTRY
4. V. G. Siddhartha started the café chain
in 1996 when he incorporated Coffee
Day Global, which is the parent of the
Coffee Day chain.
The first CCD outlet was set up on July
11, 1996, at Brigade Road, Bangalore,
Karnataka.
VISION
“To be the best café chain in the
country by offering world class coffee
experience at affordable prices”.
5. 100%
NUMEROUS DIVISIONS
SUBSIDARIES
COFFEE DAY
'FRESH; AND
GROUND
COFFEE DAY
SQUARE
COFFEE DAY
XPRESS
COFFEE DAY
BEVERAGES VENDING
MACHINES
COFFEE DAY
EXPORTS
COFFEE DAY
PLANTS
COFFEE DAY B2C
PLANT
354
900
40
10%
15%
5%
7000
7. PEOPLE
THE LOUNGE
LITERATE WORKFORCE
WITH POLITE AND
FRIENDLY BEHAVIOR
PREMIUM PRICING
VALUE BASED PRICING
PRICE PLACE PROMOTION
PSYCHOLOGY PRICING
LOCATION PRICING
COMBO PRICING
CAFE COFFEE DAY
THE SQUARE
SOCIAL MEDIA
CAMPAIGNS
EDITORIAL COVERAGE
TIE UPS WITH ENTERTAINMENT
JOINTS - PVR, DOMINOES
CUSTOMER
ENAGEGEMENT AS CCD
CATERS MOSTLY TO
YOUNG AUDIENCE
AGED BETWEEN 18-40
MARKETING MIX
8. HIGHLIGHTS
ANNUAL-2019
Menu innovations were the priority which led to a toally worth menu to look at. Each quarter
saw a eye-catching modification of the menu. The highlight remained the change through
"Season Treating Menu" change in Q3 which offered special winter beverages to warm
yourself with while in Q4 introduced "Fruitilicous Fiesta Menu" with fruit based beverage
palette charmed everyone.
Agreement with Uber Eats in Q1 of 2019 to upveil Uber Eats App with them offering Home
Cravings, especially for millenials proved to benefit both ends.
Digital Presence was given major importance through "Cafe' Coffee Day Mobile App" and their
beans theory.
Cafe' Coffee Day turned 22 and with that it had a kick start to the year. Some of
the major highlights of the year remained:
1.
2.
3.
STAY INFORMED
STAY UPDATED
9. HIGHLIGHTS ANNUAL-
2020 ( Q1, Q2 )
A
LOT
HAPPENNED :(
Things disrupted after getting globally hit by COVID-19.
Cafe' Coffee Day alongwith many companies faced major setback. Some of the
major highlights stays at:
1. Cafe' Coffee Day owing to fall in average sales per day shut down 65% active
outlets (around 280 outlets).
2. In response to COVID, food industry expect to see major mergers which
included CCD rival WOW Momo to collaborate with them for a widening reach
post lockdown.
10. STRENGTHS WEAKNESS
STRENGTHS
STRONG BRAND IMAGE
A VERY STRONG BRAND IMAGE AND VISIBILITY
NOT ONLY WITH ITS MARKETING STRATEGIES
EXACTLY BUT ALSO THEIR QUALITY OF SERVICE.
HUGE TARGET GROUP
SERVING A HUGE YOUNG CROWD AS TARGET
GROUP IN THE TIMES WHEN INDIA TOPS THE LIST
WITH AROUND 365 MILLION YOUNG PEOPLE.
REDUCED COSTS
COST BENEFIT AS IT USES THE COFFEE BEANS
THAT IS GROWN AND PROCESSED BY CAFE'
COFFEE DAY ITSELF.
WEAKNESSES
WRONG SITE SELECTION FOR THEIR OUTLETS
FOR EXAMPLE : NOT TARGETING PLACES THAT ARE
UNAWARE OF COFFEE CULTURE OR MAINSTREAM
MARKETS. THIS AREA NEEDS RESEARCH.
NO AMBIENCE SERENITY
EACH HAVING A DIFFERENT THEME- CONVEYING
NO AMBIENCE IMAGE SUCH AS THAT OF
STARBUCKS.
ALSO, OPENING TOO MANY OUTLETS IN ONE
PLACE GETS CLUSTERED LOWERING THEIR SALES.
CROWD MANAGEMENT ISSUES
LACKS IN CROWD MANAGEMENT AND SOMETIMES
DUE TO THIS THEY HAVE TO FOREGO A
CUSTOMER.
S W
11. OPPORTUNITIES
INCREASING MARKET SHARE
COFFEE INDUSTRY IS THE FASTEST GROWING
INDUSTRY IN ASIA.BUT BEFORE UNDERSTANDING
GLOBAL MARKET, IT CAN FULLY EXHAUST INDIAN
MARKET BY TAPPING INTO AREAS UNAWARE ABOUT
COFFEE CULTURE WITH SOME PRICING STRATEGIES.
COLLABORATIONS
TIE UP WITH COMPANIES FOR THEIR PROMOTIONAL
EVENTS.
POWER OF SOCIAL MEDIA
MAKE VIVID USE OF SOCIAL MEDIA STRATEGIES
ALONGWITH PERSONALISED EXPERIENCE TO EACH
CUSTOMER.
BOOK STORES/ MUSIC LOUNGE
ACTUALLY MAKING A LOT HAPPEN BY CONVERTING
THIER ONLY COFFEE ZONES WITH A LITTLE SURPRISE.
FOR EXAMPLE- INTRODUCING BOOKS/ SOFT MUSIC
ZONES THAT HELP PEOPLE STAY IN THE CAFE FOR
MORE TIME.
OPPORTUNITIES THREATS
THREATS
COMPETITION
DIRECT COMPETITON- BARISTA IS THE CLOSEST
COMPETITOR OF CCD STARTING ALMOST AT THE SAME
TIME. ALONGWITH IT GOES- CAFE MOCHA.
ENTRY OF FOREIGN COMPETITIOR LIKE STARBUCKS WAS
A GREAT SETBACK DUE TO IT SETTING HIGH STANDARD
OF LIVING IDEA.
INDIRECT COMPETITION- Mc Donald's COFFEE FRAPPE
IS QUITE FAMOUS.
JOINTS LIKE NESCAFE AND PLACES LIKE CHAYOS ALSO
PROVE TO COMEPETE AS INDIA IS STILL A TEA MARKET.
GOVERNMENT REGULATIONS
DEPENDENCY ON GOVERNMENT CORPORATED RATES
AS FOR THEIR MENU IS A BIG SETBACK.
DEBT STANDING RATIO AND PANDEMIC
DEBT STANDING RESULTING IN FOUNDER COMMITING
SUICIDE WITH COVID SITUATIONS PREVAILING IN
CURRENT SCENARIO.
O T
12. STRENGTHS
Taste & Quality of their products.
Grow their own coffee beans
Projected as an “affordable” brand
STRENGTHS
Excellent Human Resource
Ambience and Décor
Strong base for expansion and growth
WEAKNESS
Lacks the power and strength expected to maintain brand
loyalty.
Average rating for their behavior and service
No tie ups with big international brands
WEAKNESS
Average taste and quality of products
Perceived as an expensive brand
Inconvenient Delivery Process
OPPORTUNITIES
Over 40% of the population is under the age of 20, hence
untapped market share and
potential for growth
The use of clever collaborations (bookstore,etc)
OPPORTUNITIES
Strong Brand recall
Presence of large number of outlets
Large number of untapped market
THREATS
The brand doesn’t project a clear image to
customers about what Barista is all about!
THREATS
Coffee substitute
Rise in the cost of coffee products and substitute
Competition from national and international products
CAFE' COFFEE DAY BARISTACOMPETITIVE SWOT ANALYSIS BARISTA
13. WHERE'S
THE GAP?
Limited target audience
The companies sole focus is on youth aged 17-25
wherein people aged 28-45 are reported to
choose coffee lounges for corporate meetings
more.
Entering into new products bringing more competition
They have a wide variety of operations working
together which diversifies their focus and makes them
juggle in options between service/product.
Home delivery service is unavailable
People staying at far off places cant avail the service.
Many times, personally I wanted to order their
brownie but it was not avaiable in my area which
leaves a psychology of never going to ccd for online
delivery ever again.
Weak brand image
The Cafe Coffee Day brand, although clearly a
youth oriented brand, lacks the power
and strength expected to maintain brand loyalty.
Ambience & Decor
The Ambience & Decor of Cafe Coffee Day outlets
received a below average rating
from respondents of the market survey. A lot of
respondents did not like the fact that
Café Coffee Day outlets and literature served as
prime space for a lot of advertising and
promotions.
14. ANALYSIS FOR WAY FORWARD ( as per problems identified )
PRICING
Price was one of the factors that served as a hindrance not only to the students, but also to the working executives. Hence, price an
be reduced a little bit or the cost can take a step back.
Special rate card can be introduced for students alongwith some membership apart from coffee beans collection.
Their online app can provide some advantages to customers like their competitor Chayos does - on first order online the tea is free
while after every 5 cups, 1 cup stands free.
Outsource their furniture and crockery. Can resort to recycled comfortable furniture as sold by pepperfry in collaboration.
Nescafe' provides free coffee (5ml quantity) in colleges to get a taste developed for them with review taking. CCD can try too not only at
colleges but malls.
Tying up with online dating and professional sites- for example (Tinder, Metvy) so that people can book their seat through apps itself.
Advertising strategies- Tying up with cinema halls and adventure and corporate parks than having sole outlets.
It can also have many social media events and surprises owing to the COVID situation.
MARKETING
PROMOTIONAL
15. Opening 100% veg outlet and introducing Indian snacks.
Wi-fi service to have an edge over Starbucks in which it plays monopoly in right now.
Can start selling coffee groceries and machines on its site in times of COVID-19.
Coffee and books go together. So introducing a book corner.
Discover unexplored market segment as in the streets of Pushkar, Kerala,Varanasi, etc.
Reducing transportation cost by having bulk transporation for their beans processing and final coffee-powder supply
chain which will even help in reducing the cost of logistics.
Online inventory tracking process not only for B2C online structure but also B2B business.
Follow a continuous replenishment policy by integrating vendor upstream so that a proper stock remain maintained.
COMPETITIVE
ANALYSIS FOR WAY FORWARD ( as per problems identified )
DISTRIBUTION
COMPETITIVE EDGE
16. Cafe Coffee Day is going through lot of restrained time after the demise of its
CEO, but all is not lost for the company with more challenges coming up in
the coffee space.There will be lot of stringent measures for debt
restructuring and more customer friendly offers will be rolled in to win back
the customers confidence with the new board. It has built up a brand name
and is the oldest desi brand in the market. With a bit of smart management
and improvement in visibility its market share can soar. After the liabilities
are settled, a bit of hard-nosed management with an improved logo will
make sure of it. Though COVID has added to the misery CCD's USP-
afforadable and quaity service will go a long way for it to resurface and reach
the top. Indian served coffee is going to rock the world!
17. THIS REPORT ONLY CATERS
TO THE COFFEE SEGMENT OF
THE CAFE COFFEE DAY
CHAIN IN INDIAN MARKET
SUBMITTED BY:
VANDITA GOYAL
B.COM (HONORS)- II YEAR
ROLL NUMBER- 191146
REFERENCES:
COVID REPORT ON COFFEE MARKET
CAFE COFFEE DAY ANNUAL REPORT 2020
THE WHOLE ANALYSIS OF SWOT AND THE WAY FORWARD IS AN INDVIDUAL THINKING IN REGARDS
WITH THE SITUATION OF CORONAVIRUS