How to Troubleshoot Apps for the Modern Connected Worker
Ccd
1.
2. • India's largest coffee conglomerate,
Amalgamated Bean Coffee Trading
Company Ltd
• Pioneer of the café culture and the first
to launch the ‘coffee bar’ concept in
India
• Network strength: Over 1400 cafés in
200 cities/towns across India and growing
• Average Footfalls: 200 per café per day
What is Café Coffee Day?
3. Mission
“To be the best cafe chain by
offering a world class coffee
experience at affordable
prices.”
4. SBU (Different
Divisions)
•Coffee Day Fresh 'n' Ground.
•Coffee Day Xpress.
•Coffee Day Take away.
•Coffee Day Exports.
•Coffee Day Perfect.
•(FMCG Packaged Coffee)
division.
5. Market Analysis
• Coffee – a sunrise industry
• Growing young population and
promotion of coffee culture
• Coffee Segmentation:
Filter coffee and instant coffee
43% share of filter coffee
Pure and blended coffee
Cheaper products like chicory, vanilla, mocha
Robusta and Arabica Beans
Different growth culture
6. Café Coffee Day Network
of 1450 cafes across India
185 cafes
64 cafes
172 cafes
191 cafes
7. Market Analysis
• Network strength of over 1450 cafes in 200 cities
and towns with average footfalls of 200 per café per
day
• Distribution Strategy:
Growth Target
Tier I
• Single unit at Chikmagalur with capacity of
70,000 tonnes per annum
Tier II
Tier III
10%
50
• Packaging industry:
• Serving hot coffee 210ml and cold coffee 350ml
• CCD merchandises
• Regional Distribution:
• Targeting expansion in smaller towns
• New café formats in metros –
• Lounge
• Square
30%
150
60%
300
8. Profiling the CCD’ian
Hangs out at
cafes/malls
Socially Active
Seeks 'feel-good factor' and
expression of identity
through choice of brands
consumed. But is also value
conscious
Strong voice in
household purchases
Looking for a good
lifestyle
Likes to be seen at
the right place
Looking for a multiplicity of
experiences
Consumption areas: Personal
clothing &
accessories, food, entertainment,
consumer durables
Tech Savvy
Make consumption
related decisions in
company of friends
Influencers: Peer
group, workmates
9. • Average dwell time at café: 45 minutes
• Meeting place for 15-35 year olds
• The place they frequent most after “home and
workplace/college”
• A place where they meet friends and colleagues,
in groups of 3 or more
• A place where they rejuvenate and are free to be
themselves rather than a place to be “seen at”
10. • Major chunk of CCD customers falls within the age
group of 20 to 30 which accounts for 57% of the
overall percentage.
Segment
Target
Positioning
• The group comprises of mainly college going
students and young working professionals
11. • There is a definite skew towards singles: 66%
singles, 27% married & 7% others.
Segment
Target
Positioning
7%
27%
66%
Married
Single
others
14. STRENGTHS
•
•
•
•
•
•
WEAKNESS
First-mover advantage
Excellent brand name and visibility
ISO 9002 certified company
Quality, service and taste
Youth oriented brand
Reduction in cost
• Lack of individual attention to loyal customers
• Unavailability of fresh food
• Market penetration of coffee bars is 5%
SWOT
OPPORTUNITY
•
•
•
•
•
THREAT
Fastest growing industries in Asia
Merchandising
Tie ups with other companies for promotion
Tapping smaller market
Cheaper varieties of coffee
• Competition with Barista, Mochas, Gloria
Jeans, Costa Coffee & Starbucks
• Presence of other ‘Hangout’ locations
• Unorganized market
• Dependent on government commodity rates
15. Marketing Mix
Price
Place
Promotion
• Range from Rs45 to
Rs100
• Over the years only
minor changes in
pricing policy
• All locations
• Strategically
located outlets
• Coffee machines in
college canteens
• Kiosks in offices
• Channel [V]’s “Get
Gorgeous” Contest
• Tie up with youth
brands
• Khakee and Main
Hun Na
• Sales Promotion
Product
• Wide range
• Frappe – Summer
• Cappuccino Winter
• Merchandizing
Process
• Self service to table
service
• Complaints and
feedback
• Response time
People
• “People are hired for
what they know but
fired for how they
behave”
• Motivation and
personal skills
Physical
Evidence
• Logo in “Dialogue
Box”
• Architecture and
décor
• Coffee table books
• Tag line : “A lot can
happen over coffee”
16.
17. Porter’s Five Forces Model
Threat of
new
entrants
(LOW)
Buyer’s
Power
(HIGH)
Industry
Rivalry
(HIGH)
Supplier’s
Power
(LOW)
Threat of
Substitutes
(HIGH)
18. Porter’s Five Forces Model
Threat of new entrants - Medium
• Presence of several established brands/hangout places/fast food joints
• High costs for starting a coffee shop chain
• Government policies promoting FDI
Buyer’s Power - High
• Low switching cost
• Variety of products
• Variety of services
Supplier’s Power - Low
• Government regulations on prices of milk and coffee
• Backward integration
Threat of substitutes - High
• Aerated drinks, milk beverages, juice centres and tea shops
• Fast food joints like Pizza Hut, Mcdonalds etc
• Hangout places like Hukka parlours
Industry Rivalry - High
• Local Coffee chains like Barista, Mochas
• Entry of international coffee chains such as Starbucks, Costa Coffee, Gloria Jeans
19. Political
Economic
PESTEL
Analysis
• Less bureaucratic hurdles
• Easy sourcing of coffee beans
• Cost control because of Govt regulations
• Heavy coffee drinkers in South India
• Cheaper sourcing maintain quality
Social
• Targets youth and middle class
• Affordable for a meeting place
Technological
• Marketing strategy based around technology
• Provide entertainment over Bluetooth &Wi-Fi
Environmental
• Limited production/Less pollution
• Use biodegradable plastics
Legal
• Ethical and based on customer delight
• Less consumer complaints and quick
customer service
21. STRENGTHS
WEAKNESSES
• Excellent brand name and brand visibility
• Excellent human resource – ambience and
décor
• Strong brand recall and popularity
• Has over 200 stores across India
• Creating of Moment of Truths for couples
• Perceived as expensive brand
• Dependent on TATA suppliers for coffee beans
• Competition
from
other
coffee
chains, restaurants and fast food joints
• More known for coffee, less known for its food
products
SWOT
OPPORTUNITIES
• Introduce cheaper & unique versions of coffee
• Tap smaller towns/cities
• Increase promotion to change the perception
of being an expensive brand
THREATS
• Threat from existing coffee chains and fast
food outlets
• Dependent on government commodity rates
22. STRENGTHS
WEAKNESS
• Global brand name coupled with the
trustworthiness of TATA
• Experience of expanding into emerging
markets
• Perception of Higher quality products
• Youth oriented brand
• Excellent brand and service
• Reduction in cost
•
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Starbucks is recognized for its high prices
Considered a place for elite class to hangout
Lack of presence in non-metro cities
Relatively small product breadth
SWOT
OPPORTUNITY
• Interest in Western Brands in Indian minds
• Targeting rapidly growing Indian urban youth
• Well defined plan to expand in the next 5
years
THREAT
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Global Policy Conflicts
Presence of other ‘Hangout’ locations
Largely unorganized market
Established competitions
23. • As a reaction to the launch of
Starbucks in India, CCD debuted
with TV Ad – Sit down-ism
Advertising
• Gives customer a purpose for
hanging out
• Word of mouth
• Subtle advertising in movies and TV
serials
• Print and social media
• Sponsoring college events and giving
out discount coupons
• Tie up with different corporates
• Presence of outlets in all areas
24. Suggestions
• Cultivating a cult following for coffee aficionados
• Custom made orders
• More variety in food
• Healthier options in food
• Train staff to strike a personal cord of regular
customers
• Availability of all items on menu all the time
• Screening of key sports events – IPL, EPL etc
