case analysis of coffee cafe day

1. Café
Coffee
Day : Case
Study
Case 2
Anurag Sharma
819004

2. Cafe coffee day(CCD) was
the first-ever coffee
chain opened in India.VG
Siddhartha was the man
behind making coffee
popular in a nation of
tea-lovers.
Also, CCD owned Asia’s
single largest coffee
estate and India’s best
coffee brand.

4. It was the one with the tag line ‘A lot can
happen over coffee’, Café Coffee Day was
the one who touched the hearts of
millions of Indian youth, assuring them
that all they need is a cup of coffee and a
peaceful place to talk it all out!

5. India was strictly a
tea-loving country.
Let us discuss
everything from pin to
plane about the brand
who successfully made
coffee popular in a
country full of tea
lovers.

6. HOW CAFE COFFEE DAY STARTED
V G Siddhartha from
Chikmangaluru district of Karnataka
was the man behind changing the
beverages culture of India with a
variety of drinks and side dishes
hard to resist.
Coffee Day Global which is the
parent of the Cafe Coffee Day chain
was incorporated in 1993.
The first CCD outlet was set up on
July 11, 1996, at Brigade Road,
Bangalore, Karnataka. V.G.
Siddhartha opened the first CCD
outlet with an initial investment of
₹ 1.5 crores.

7. https://www.youtube.com/watch?time_continue=67
&v=qoUSKvI1ce8
Siddhartha happened come across a German business owner,
who was interested in buying coffee beans from him for his
“leading coffee brand in Germany – Tchibo”.
During that brief discussion with the German businessman, he
told his story of how his brand had started in a small 10 ft. shop
in Hamburg. This inspiring tale of the Tchibo gave Siddhartha an
outlook of a different world altogether & opened his eyes and it
also gave him a wonderful idea.
Idea behind ccd

8. Challenges Faced By CCD
Having done with the initial foundation,
the major challenge faced by the cafe
coffee chain was to make a
revolutionary change in the Indian
culture where the majority of the
population prefer drinking tea rather
than coffee.
After the initial struggle, the homegrown cafe chain
came a long way, credited with the start of coffee shop
culture in India but then it finds itself facing tough
competition not just from the international chains such
as Costa Coffee, Starbucks or Barista but also from
various domestic players and concept cafés.

10. How Ccd Overcome Challenges
To stand up against the competition, CCD has built its
retail strategy and named it 3As strategy :
Affordability
Accessibility
Acceptability

11. What worked best for the Indian cafe coffee chain
was its combination of aspiration and affordability.
Even as it gave coffee an attractive makeover,
CCD’s prices stayed well below its rivals.
Ensuring that it remained the favorite hangout
choice for school and college students or young
adults on meager paychecks from their first jobs.

12. Accessibility
It wasn’t just restricted to the metro cities. If there’s one singular claim
that Coffee Day can makeover all of its rivals, it is that it took coffee to
cities and towns across the country, and offered the same experience
everywhere.
They always believe in serving an experience along with the coffee.
They have ensured that the cafes are at an arm’s reach.

13. Acceptability
Today, coffee is not just seen as a beverage but a
social glue that brings people together to relax and
unwind.
“Let’s catch up at CCD,” is probably one line most
Indians have said or heard at one point or the other
over the last two decades.

14. Marketing and advertising strategies of CCD
As we have discussed above, CCD’s strategic approach was based on
the 3 A’s i.e. Affordability, Accessibility, and Acceptability. 3A’s are the
significant factors contributing to the growth of the brand.
Secondly, Digital Marketing has become an integral part of Café Coffee
Day’s marketing plan.
CCD’s fan base is overwhelmed with over 5 million fans on its social
media pages and consistently engaging customers on Facebook,
Instagram, Twitter, Youtube, etc.

15. The youth was the key target and early adopters of trends, they also
evolved their strategy and became more digital-centric as they engaged
with the new age world.
CCD marketing also constantly ensures the continuous active
engagements of the consumers, like they conducted the ‘Latte Art
Festival’ – where customers were served coffee topped with creative
latte art designs.
As CCD goes digital, it is also looking at innovation in user experiences
by adopting new technologies to enhance customer service.
https://www.youtube.com/watch?v=G6BF4KLl2hQ
https://www.youtube.com/watch?v=MnAqhVdngTE

16. STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
SWOT ANALYSIS OF
CAFE COFFEE DAY

17. STRENGTHS
• Products of
extremely good
quality and taste
• Highest no. Of
stores
• High brand
equity among
the youth
• Vertical
integration
WEAKNESSES
• High pricing
• Wrong-site
selection
• Lacks strength to
maintain the
brand
OPPORTUNITIES
• Coffee cafe
industry is one
of the fastest-
growing industry
in Asia
• Enter and attract
international
markets
• Rising income of
people
THREATS
• Growing
competition
from global and
local coffee
chains
• Growing
attrition rate

18. BUSINESS EXPANSION AND GROWTH
CCD founder V.G. Siddhartha who feared of achieving a target of 500 tones, ends up
selling 6,500-7,000 tones of branded coffee, exports about 28,000 tones of coffee
and sells another 2,000 tones locally each year and has a curing capacity of 75,000
tones (largest in the country). Additionally, his cafes attract at least 40,000 to
50,000 visitors per week.
The company, opened its first store in 1996 in Bengaluru, is presently operating
1,740 CCD stores in around 250 cities.
As of 2015; CCD makes revenues worth $450 Million approx.,
employees 5000+ people, and has 1530 outlets across India, Austria, Czech
Republic, Dubai & Karachi.

19. Other Businesses of CCD
COFFEE DAY EXPORTS
Coffee Day Exports is all about growing, trading, retailing and exporting world-
class coffee. It has a heritage of over 130 years.
One of the largest exporters of green coffee in India, since 1999. We also
export to the Middle East, Europe and Japan.
Coffee Day Exports has invested in research and development and applied the
learning successfully to improve the promotion of various coffee blends and
augment its exports.

20. Visit www.coffeedayexpo
rt.com for more details.

21. COFFEE DAY HOTELS & RESORTS
2008 was a landmark
year for Coffee Day
Global Limited.
Coffee Day Hotels &
Resorts was formed as
a subsidiary of Coffee
Day Global Limited, the
Chikmagalur resort of
The Serai was declared
open.
Visit www.theserai.info
r more details.

22. MILESTONES AND AWARDS ACHIEVED
1. Café Coffee Day won the “Times Food Award” under the category of “Best Coffee Bar” in 2007
2. Café Coffee Day won the Burrper’s Choice Award by users of burrp.com in 2008.
3. Coffee Day Global won an award for “Retailer of the Year” by Asia Retail Congress 2009
4. Café Coffee Day won the Indian Hospitality Excellence Award in 2010”
5. Café Coffee Day was ranked as 26th Most Trusted Service Brand in India and by Brand Equity
(Economic Times) in 2012
6. Café Coffee Day won the Best Coffee Bar Award in 2012
7. Café Coffee Day was awarded “The NCPEDP – Shell Helen Keller Award 2013” by National
Centre for Promotion of Employment for Disabled People.
8. Coffee Day Global got awarded for “Best Customer Service in Café Restaurant” by Star Retailer
Awards 2013

23. 9. Café Coffee Day won the Brand Excellence Award in the retail sector in 2013
10. Coffee Day Global was awarded the bronze prize by the Coffee Board of India for being
the third-best exporter of green coffee in 2012
11. Coffee Day Global was awarded as “Retailer of the Year” for the retail excellence by
ABP News in 2014
12. Café Coffee Day was ranked as 22nd Most Trusted Service Brand in India, as 27th Most
Exciting Brand in India under the category of “Food Services” in Indian 2014
13. The Promoter, Mr. V G Siddhartha was awarded ‘ET Retail Hall of Fame’ for his
contribution to the growth in the retail sector in 2014

24. Downfall of Cafe Coffee Day
I personally like the business model of CCD, but it has a lot of drawbacks.
Lets discuss about major reasons of the DOWNFALL of CCD
BSR associates was their main auditor who used to audit their outlets.
The auditor wrote a letter to the shareholders of CCD that they have not audited 40 subsidiaries of
Cafe coffe day.
This was the reason the share holders backed off, and denied to provide further funds.
Meanwhile, the Income Tax (IT) department raided on Cafe Coffee Day (CCD) retail chains and found
about Rs 362 crore concealed income.
VG Sidhartha in his letter mentioned that Income tax department was attaching their shares on two
separate occasions to block their Mindtree deal and then taking the position of their Coffee Day
shares, although the revised returns have been filed by them.
Because they were in such a heavy debt, they started taking short term loans in form of debentures
with high interest rates to pay off their long term debt.
This resulted in more heavy debt burden.

25. SEO report :-
https://www.cafecoffeyday.com