Brand Management - Cafe Coffee Day

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Coffee Industry - Overview



India - India - 66thth position producing approx 3 lakh tons / p.a.position producing approx 3 lakh tons / p.a.



Coffee Consumption in India is growing at 6% p.a. Coffee Consumption in India is growing at 6% p.a. compared to globalcompared to global

2% plus p.a. 2% plus p.a.



In India, the per capita cIn India, the per capita consumption of coffee is around 85 grams whileonsumption of coffee is around 85 grams while

it is six kgs in the US. it is six kgs in the US.

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India has about 170,000 coffee farms cultivating around 900,000 acresIndia has about 170,000 coffee farms cultivating around 900,000 acres

of coffee trees. of coffee trees.

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Consumption, has been increased exponentially. It has almost doubledConsumption, has been increased exponentially. It has almost doubled

to 108,000 tonnes from 55,000 tonnes in 2000. to 108,000 tonnes from 55,000 tonnes in 2000.

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History



Café Coffee Day is a division of India's largest coffee conglomerate,Café Coffee Day is a division of India's largest coffee conglomerate,

Amalgamated Bean Coffee T

Amalgamated Bean Coffee Trading Company rading Company Ltd. (ABCTCL)Ltd. (ABCTCL)

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 ABCTCL grows coffee in its own estates of 10,000 acresABCTCL grows coffee in its own estates of 10,000 acres

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 largest producer of Arabica beans in Asialargest producer of Arabica beans in Asia

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 ABCTCL is one of India‟s leading coffee exporters with clients acrossABCTCL is one of India‟s leading coffee exporters with clients across

USA, Europe and Japan. USA, Europe and Japan.

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UNDERSTANDING CAFÉ COFFEE DAY



 India's largest coffee conglomerate, Amalgamated Bean India's largest coffee conglomerate, Amalgamated Bean Coffee TCoffee Tradingrading Company Ltd

Company Ltd promoted promoted by by V G Siddhartha V G Siddhartha (Founder & Dire(Founder & Director)ctor) 

Headquarters based in Bangalore, KarnatakaHeadquarters based in Bangalore, Karnataka 

 First Café coffee day outlet was started in Bangalore (First Café coffee day outlet was started in Bangalore (1996) on Brigade road1996) on Brigade road 

 A Rs. 750 crore ISO 9002 certified companyA Rs. 750 crore ISO 9002 certified company 

 PionPioneer of the café eer of the café culture and the first culture and the first to launch the “coffee barto launch the “coffee bar‟‟ conceptconcept

in India. in India. 

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Cont..

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 AAverage Footfalls: 400 per café per verage Footfalls: 400 per café per dayday 

 Average dwell time at café: 45 minutesAverage dwell time at café: 45 minutes 

 Meeting Meeting place place for Yfor Young or Young or Young at oung at Heart Heart peoplepeople 

 The place they frequent most after “home and workplace/college”.The place they frequent most after “home and workplace/college”. 

 A place where they meet friends and A place where they meet friends and colleagues,colleagues, 

 In groups of 3 or moreIn groups of 3 or more 

A place where they rejuvenate and are free to be themselves ratherA place where they rejuvenate and are free to be themselves rather

than a place to be “seen at” than a place to be “seen at”

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Br

and Identity &

Image



Coffee & ConversationCoffee & Conversation 

For young & young at heartFor young & young at heart 

Friendly & Stylish Social hubFriendly & Stylish Social hub 

The Logo : Power of DialogueThe Logo : Power of Dialogue 

 Tag line –– A lot can happen over coffeeTag line A lot can happen over coffee 

 A perfect place to „relax and dialogue‟A perfect place to „relax and dialogue‟

Identity:

Image:



Indian, YoungIndian, Young 

Place Place to to hangout hangout & & have have conversationsconversations 

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KEY T

ARG

ET

AUD

IENC

E



 Major chunk of CCD customersMajor chunk of CCD customers

falls within the age group of 20 to falls within the age group of 20 to 3030 which accounts for 57% of the overall which accounts for 57% of the overall percentage.

percentage.

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 The group comprises of mainlyThe group comprises of mainly

College going students and young College going students and young working professionals.

working professionals.

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Apart from the café‟Apart from the café‟s product & s product & a place to Hangout a place to Hangout with friends the caféwith friends the café

is the venue for the Business Meeting(13%) , Celebrating Special Occasion is the venue for the Business Meeting(13%) , Celebrating Special Occasion (10%) & Just Time Pass (17%)

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YOUTH

–

The

T

arget

Audien

ce



 Strong Voice in household purchasesStrong Voice in household purchases 

 Make consumption related decisions in company of friendsMake consumption related decisions in company of friends 

 Influencers: Peer group, workmatesInfluencers: Peer group, workmates 

 Access to large amount of money to spendAccess to large amount of money to spend 

 Likes to seen at the right plaLikes to seen at the right placece 

 Socially Active: Hangs out Socially Active: Hangs out at cafes/mallsat cafes/malls 

 Looking for a good lifestyleLooking for a good lifestyle 

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Value Proposition

Functional



Largest Largest chain of chain of Café Café in India in India with 1100+ with 1100+ OutletsOutlets –– AccessibilityAccessibility

Economic

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 Good and affordable coffee and food Good and affordable coffee and food compared to the other Cafescompared to the other Cafes

–– AffordabilityAffordability

Emotional



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Café Coffee Day

–

SWOT Analysis

Strength: Strength:

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 Large Number of outletsLarge Number of outlets 

 In house sourcingIn house sourcing 

 Tie up with CorporatesTie up with Corporates 

 Excellent AmExcellent Ambience & bience & ServiceService

Weakness: Weakness:



 Limited target audienceLimited target audience 

 Limited Offering on FoodLimited Offering on Food

Opportunity: Opportunity:



 Large untapped marketLarge untapped market 

 Tie up with other companies forTie up with other companies for promotion

promotion

Threat: Threat:



 Foreign players Georgia Jeans,Foreign players Georgia Jeans, Costa Coffee ,Star bucks, etc Costa Coffee ,Star bucks, etc



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Coffee Day

–

Branded House

Coffee Day Coffee Day (Branded House) (Branded House) Perfect Perfect Fresh 'n' Fresh 'n' Ground

Ground Square LoungeSquare Lounge

X’press

X’press BeverageBeverage

s

s ExportsExports

Coffee Day

Coffee

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Café Coffee Day

–

POP / POD

POP:

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Good Hospitality & AmbienceGood Hospitality & Ambience 

Variety & wide choice of beveragesVariety & wide choice of beverages 

 Friendly and stylish hang-out jointFriendly and stylish hang-out joint 

 Strong Tie-ups with corporateStrong Tie-ups with corporate

POD

::

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 Affordable price as compared to Affordable price as compared to competitorscompetitors 

 Wide network of cafes at strategic locationsWide network of cafes at strategic locations 

 In-house sourcing of coffee beansIn-house sourcing of coffee beans 

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High Price

Low Price

Quality

Quality QualityQuality

Perceptual Map

(Rich)

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Br

Brand Identity

and Identity Prism (Kapferer)

Prism (Kapferer)

E E x x t t e e r r n n a a l l i i z z a a t t i i o o

n n _t_tI I nn e e r r n n a a l l _i_i z z a a t t i i o o n n Relationship

Relationship CultureCulture

Reflection

Reflection Self Self - - ImageImage Physique

Physique PersonalityPersonality Sender Sender Receiver Receiver Young Young Sophisticated Sophisticated Casual Casual Friendly Friendly Non- Intrusive Non- Intrusive

For the upward class For the upward class wanting to have a wanting to have a casual environment to casual environment to chat chat Sophisticated Sophisticated Friendly Environment Friendly Environment Music Lovers Music Lovers Hangout Place Hangout Place Indian Indian Vibrant Vibrant

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Keller’

s CBBE

Model

•

•Rich taste, Coffee & Snacks , AmbienceRich taste, Coffee & Snacks , Ambience

Salience Salience Performance Imagery Performance Imagery Judgment Feelings Judgment Feelings Resonance Resonance • •FriendlyFriendly •

•Stylish hang-out jointStylish hang-out joint •

•Wide choice of Wide choice of

beverages beverages

•

•Affordable priceAffordable price

•

•Relaxed environmentRelaxed environment •

•Efficient ServiceEfficient Service •

•Wide network of café‟sWide network of café‟s •

•PioneersPioneers •

•Good taste at affordable priceGood taste at affordable price

Frequent revisits (A place where you can

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Learning's

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Classic learning of how a commodity can

be branded

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Vertical integration to get the

competitive edge

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Bringing in the Local taste for the product

success

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