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JAIPURIA INSTITUTE OF MANAGEMENT, INDORE

Assignment of Marketing Management On Critiques of Marketing Strategies of Caf Coffee Day.

PRESENTED BY: Niraj Sharma.

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Acknowledgement
Excellent ideas for improving our interpersonal skills & knowledge from learning & listening to faculties, colleague, mentors with the discussion in our group. We have benefitted from many valuable ideas for improvement. We would like to convey our huge thanks to Dr.

Director of Jaipuria Institute of Management, Indore (PGDM) for providing us great environment in the college, making all the facilities available to us and giving his precious time.

J P Upadhaya,

thanks to Prof. Romi Sany, for her support and dedication. She shared enough knowledge with us which helped us a lot in completion of our project.

We would also like to convey our special

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TABLE OF CONTENT
EXECUTIVE SUMMARY .......................................................................................... 4 METHODOLOGY ....................................................................................................... 5 COMPANY PROFILE ................................................................................................ 7 HISTORY OF COFFEE ............................................................................................ 8 Coffee Reinvented ..................................................................................................9 Caf Coffee Days Mission ..................................................................................10 Logo of Caf Coffee Day ....................................................................................11 Cafe Formats ........................................................................................................12 Business Association ............................................................................................14 CUSTOMER PROFILE ............................................................................................ 15 PRODUCT PROFILE ............................................................................................... 18 PROMOTION STRATEGIES ................................................................................... 20 The Levi's Campaign ...........................................................................................20 TVS Scooty Valentine Campion.23 Movie Tie-Ups.......................................................................................................23 Caf beat :

Caf Coffee Days Own Promotional Magazine ..........................23

DATA ANALYSIS AND INTERPRETATION ......................................................... 24 SUMMARY OF FINDINGS ...................................................................................... 26 STATEMENT OF THE PROBLEM (Critiques): ...................................................... 27 RECOMMENDATIONS AND SUGGESTIONS ....................................................... 27 CONCLUSION .......................................................................................................... 29

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Executive Summary
The presented project is a brief study on the Critique of marketing strategy at Caf Coffee Day, Indore.

After the commencement of Caf Coffee Day in the year 1996, the daily turnover of CCD has tremendously increased over the years due to the effective promotional activities carried out by the same.

The basic objectives of this study are as follows:


To clearly identify the marketing strategies. To critique the strategies adopted by the help of concept, empirical research & data. To determine whether these brand associations are really effective.

This study has used several tactics and techniques to determine the same. Few of the techniques used are as follows: Interview Method: The respondents were asked a variety of questions which they had to answer orally and their response was noted down and an inference was made.

From the various techniques used, it was conclusively determined that the effectiveness of the promotional activities employed by Caf Coffee Day has over the years become tremendously efficient in achieving the consumers attention towards them, especially in todays highly competitive market.

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Methodology
Secondary data is either internal or external to the company considering their uses. Internal data are typified by summaries of sales representatives reports, invoices, shipment records and operating statements. A research manager must necessarily become familiar with all material of this type that is available within the company. Company records must be constantly explored so as not to overlook information needed for current marketing research projects.

The collection of internal data is largely a matter of knowing the companys operating procedures and establishing systematic methods for

recording the desired information. Collection of external data is more difficult because the data have much greater variety and the sources are more numerous.

External data can be divided into four classes: 1. Census and registration data. 2. Individual project report publicly circulated in encyclopedias, books,

monographs, bulletins and periodicals. 3. Data collected for sale on a commercial basis. 4. Miscellaneous data.

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The study aims at providing the promotional activities at Caf Coffee Day. The outcome of this dissertation is that the company will get the relevant information about the market on the basis of this information the company can adopt the best promotional activities for other brand ads to grab the market and consumer. In order to know the customer perception for promotional activity towards advertisement of other brands, It should study the end consumer. Data is collected in the form of Primary data Secondary data Primary data is collected from personal interviews. Secondary data is collected from website, journals, magazines and previous project. The data collected from both the sources is useful to understand the company background market situation if the companies, customer perception and competitors strength and weaknesses. The data is very useful to analyze the present market and give the relevant information to the company.

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COMPANY PROFILE
Caf Coffee Day is a division of Indias largest coffee conglomerate, Amalgamated Bean Coffee Trading company Ltd (ABCTCL), popularly known as Coffee Day, a Rs. 500 crore, ISO 9002 certified company, making its mark across the coffee value chain. The offshoots include over 1000 Caf Coffee Day joints, around 400 Fresh & Ground stores, over 1000 Coffee Day kiosks, and a sizeable 10,000 vending machines from Coffee Day Beverages. Coffee Day sources coffee from 5000 acres of coffee estates, the 2 nd largest in Asia. That is owned by a sister concern and from 11,000 small growers. It is one of Indias leading coffee exporters with clients across the world. With its roots in

the golden soil of Chickmagalur, the home of some of the best Indian Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning the entire value chain of coffee consumption in India. Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf at Vijay Nagar in Indore. Till about the late 1990s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant coffee) coffee caf culture in neighboring international markets grew, the need for a relaxed and fun hangout for the emerging urban youth in the country was clearly seen. 7|Page

Recognizing the potential that lay ahead on the horizon, Caf Coffee Day embarked on a dynamic journey to become a large organized retail caf chain with a distinct brand identity of its own. From a handful of cafs in six cites in the first 5 years, CCD has become Indias largest and premier retail chain of cafes with 220 cafes in 53 cities around the country. Enthused by the success of offering a world-class coffee experience, CCD also plans to open a chain of 50 cafes overseas in 10 cities of Middle East, Eastern Europe, Eurasia, Egypt and South East Asia by the end of 2005.

HISTORY OF COFFEE
Coffee discovered: The discovery of coffee has a very interesting story attached to it. A long time ago in Arabia there live a goatherd named Khalid. One day his goats did not 8|Page

return and he went looking for them. He found them frisking around acting unnaturally gleeful around a plant which had shiny green leaves and red berries. Khalid was curious and so he tried a couple of the berries himself. He felt energized almost immediately. A wise man from a local town nearby was passing that way. He was hungry, tired and very sleepy. He saw the happy goatherd and the coffee plant. Because he was hungry he tried the berries. He became wide-awake and was instantly ready to keep traveling. He took some berries back to his town and boiled them to get a bitter beverage, rich in strength, and capable of dispersing sleep and weariness. This brew helped the people in his monastery to stay awake during prayer. It then spread to other town and monasteries. The wise man became very rich. No one knows what happened to Khalid. Coffee Reinvented When Arabs discovered how to boil water, they made coffee initially by boiling the green beans do not give up the coffee oils because the chemical change caused by roasting has not taken place. Therefore, the taste is very different. Records indicate the actual roasting and grinding of coffee goes back to about 500AD. In the case of coffee, the taste needs to be acquired. Coffee is naturally bitter and one must learn to drink it. Anyway, coffee didnt become popular over a

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large area until the Ottoman Sultan in Istanbul outlawed it in 1543 because it started to gat more recognition than he wanted. Then coffee becomes very fashionable!

How coffee came to India? The Arabs in the 1600s were very protective of their coffee bean. They allowed export of coffee bean only after the beans were processed. Legend has it that a man called Baba Budan bound seven coffee seeds to his belly and smuggled them out of Arabia and into India. When he reached his home, he found a cave in the hills near Chickmagalur in South India where he planted the coffee seedlings. Later he planted coffee in the jungles near Chickmagalur. Today, offspring of these original coffee trees are officially known as Old Chick. All of the coffee produced by Amalgamated Bean Company Trading Ltd (ABC) is grown in Chickmagalur belt and comprises 15% of Indias coffee export making ABC also Indias largest export of coffee. The coffee we export is the coffee you are drinking right now!

Caf Coffee Days Mission

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To be the best Cafe chain by offering a world class coffee experience at affordable prices.

Logo of Caf Coffee Day

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For a brand to stand out and be, the target customers must identify with it. It should be vibrant and have a life of its own. Liveliness, growth, fun and passion depict this brand, its customers, its staff and its future this is embodied in its design and color. The LOGO colors embody: Red Square= Leadership, passion White Swirl = Purity of purpose, invigorating properties of coffee Green Stroke = 125 years of coffee growing heritage of this vertically integrated Group.

Cafe Formats
Caf Coffee Day has been experimenting with caf formats for quite some time. Backed by the motivation of providing customers with exciting choices as well as constantly redefining the caf experience, CCD has ventured into the following formats: Music Cafs provide customers with the choice of playing their favorite music tracks on the Digital Audio Jukeboxes installed at the caf! There

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are around 85 cafes with such jukeboxes. 32 cafes also provide customers with the visual treat of watching their favorite music videos by means of Video Jukeboxes. Book Cafs offer the perfect solution to people who think that the coffee experience is incomplete without browsing through the bestsellers or reading a classic. CCDs book corners accentuate the age -old

combination of coffee and books. This exciting concept has been successfully tested at 15 cafes in 12 cities across India and the numbers are set to grow exponentially. CCD has tied up with English Book Depot, one of Indias leading book distributors for placement and rotati on of reading materials appealing to Caf Coffee Days discerning customers. Highway cafs on the Bangalore Mysore highway and NH-8, presents the traveler en route not only with good coffee and scrumptious snacks amidst great ambience but also with clean restrooms to get rid of that weariness from the road! Lounge cafs at Lavelle Road, Bangalore, Hauz Khas, Delhi and

Southern Avenue, Kolkata(Southern Avenue) and Hyderabad (Jubilee Hills) combines the style and luxury of a lounge with the lively ambience and comfort of a caf. With exquisite interiors, exotic menu and thematic music CCD Lounge offers a whole new experience to the connoisseur

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while assisting the latter through its team of hostesses who are poise and style incarnate and are looked upon as fashion icons. Garden cafs GKII, New Delhi combine the joy of rejuvenating amidst verdant landscapes and pots of coffee. Cyber cafs Kolkata Airport, Delhi combine the urge to surf, not to mention get connected through the internet while enjoying perfectly brewed cups of coffees, both domestic as well as International blends!

Business Association
CCD has emerged as with an interactive the alternative young media for at brands to

communicated

heart.

Other media, such as electronic, print and outdoor, offer brand communication through visual and audio modes to a large section of the populace, both relevant and irrelevant. Caf Coffee Day offers a much more interactive, targeted communication, sometimes adding even a taste dimension to a brand 14 | P a g e

idea!

Various in-caf collaterals used to impart visibility to a brand inside a caf or to add the element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures, Coasters, Drop boxes, Contest Forms, Stirrers, Standees. Over the years, CCD has successfully promoted a number of

brands/products/events through various innovative tactics and promo ideas. Cashing in on its mass captive audience, we at CCD have entered into tie-ups and promotions which are well knit with our brand promise and which can be creatively used to woo the Indian Youth.

Customer Profile

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The caf is a meeting place for 15-29 year olds, both male and female who are served the best coffee by friendly and informed staff, in an uplifting and invigorating ambience. Research shows that teen-agers from 25% of our

customers while 38% of the customers are between 20 and 24years and another 23% belong to the age group of 25-29 years. Students and young professional comprise around 72% of our customers. 18% of the customers visit the cafes daily while another 44% visit weekly. Each caf, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Caf Coffee Day as the place they frequent most after home and workplace/college. It is 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 vis a vis other cafes.

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Product Profile

Coffee Day customers have a variety of products to choose from. Following are the product categories:

HOT COFFEE

COLD COFFEE

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HOT TEA

FROSTEAS

FRUITEAZERS

SUNDAES

DESERTS

SNACKS

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CAKES

COOKIES

Promotion Strategies:
The Levi's Campaign

The 6 Below the Naval Jeans campaign, the Sykes Reversible (Ulta Pulta) campaign, the Levis 501 campaign, the TLTT (The Levis Torture Test), the Hello Gorgeous campaign et all are some of the successful in caf activations designed and executed for Levis. Every season CCD becomes an important media for Levis to launch its new range of apparels. Along with providing tremendous on ground visibility in terms of wall visuals, tent cards, danglers,

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posters etc., a contest (wherein customers could win Levi s GVs) is designed to inject customer interactivity and to add excitement to the entire campaign. The cohesiveness of the entire campaign is accentuated by creating a new drink and christening it as the Levis drink for the promo period!

The TVS Scooty Valentine Campaign

The Valentine month in 2004 witnessed an innovative campaign for TVS Scooty. CCD promoted TVS Scooty by means of a creative promotion which besides adding visibility and customer interactivity also conveyed the brand attitude to the end customer and helped them relate to the same. Through the TVS Scooty Valentine Singles Campaign, customers were asked to enter the contest of why they would rather be single and make TVS Scooty their Valentine that year. The slogans/answers served as a feedback forum for the brand managers to analyze the brand connectivity of Scooty with its TG, not to mention the collection of database of the potential buyers. CCD created 2 21 | P a g e

special combos called the TVS Valentine Combos Hot & Cold (2 ice blended Cold coffees/2 Caf Mochas with a Chocolate Fantasy). The contest was of course made attractive by the no. of freebies like Sony Discmans & MP3 players etc. which customers stood to win. Not to mention the Mega prize of a 4 stroke TVS Scooty for 2 lucky winners!

The Sugar Free campaign

In order to promote Sugar Free, CCD launched a Low calorie menu in association with the former for the calorie conscious. The new menu consisted of a wide range of Low calorie Hot coffees, International coffees, Tea, Tropical Iceberg & a range of veg. and non-veg. food as well as deserts like Lemon Souffl to name a few. This menu was communicated to the customer by means of Sugar Free branded menu boards, menu cards etc. Also, a few

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bottles of Sugar Free were displayed at the counter to serve as a pointer to the on-going activity.

Movie Tie-Ups
CCD has become an important national on ground partner for Production Houses to promote movies better among the masses by means of colorful collaterals like posters, tent cards, danglers et al. Interactivity is ensured by conducting exciting contests around the movie wherein customers with the correct answers stand to win movie cassettes, CDs, movie tickets as prizes and also through a Lucky draw get a chance to win a Coffee date with their favorite movie stars . Hence, the touch & feel experience to the movie.

Caf beat :

Caf Coffee Days Own Promotional Magazine

Caf Beat reaches more than a million smart, receptive and upwardly mobile youth of India every month. It is one of the most widely read youth magazines in the country and is apart of one of the largest Indian retail youth brands Caf Coffee Day.

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DATA ANALYSIS AND INTERPRETATION


Table 1 Table showing the Age Group of the respondents

Age Group 15 20 21 25 25 30 31 40 40 50 60 + Total

No. of. Respondents 4 76 16 4 0 0 100

Percentage 4% 76% 16% 4% 0% 0% 100%

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Source: Primary data

Table showing the Age Group of the respondents Analysis: From the above table we can perceive different age groups of the respondents. Out of the 100 respondents an age category of 15-20 were 4, 21-25 were 76, 25-30 were 16, 31-40 were 4, 40-50 and 60 above were Nil. Inference: From the above age group we can interpreter that the age group of 21-25 is more no. of respondents as much as 75 %. Table 2 Table showing the gender of the respondents

Gender Male Female Total

No of Respondents 54 46 100

Percentage 54 % 46 % 100%

Source: Primary data

Analysis: From the above table we can perceive that genders out of 100 respondents 54 were male and 46 were female.

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Inference: From the above graph we can interpret that half of the respondents were male and half of female.

SUMMARY OF FINDINGS
Majority of customers were in the age group of 21-25 years and most of them are students. Majority of customers were attracted towards the particular brand by these ads, ten-cards, posters and wall visuals. Half of the respondents attract with ads, ten-cards, posters, wall visuals etc, in the Caf Coffee Day and were willing to go for particular brand. Most of the customers are happy with the service and quality offered by Caf Coffee Day. Most of the customers would want Caf Coffee Day to get associated with Levis and Channel V. Most of the customers wish to get inform about other brands in Caf Coffee Day.

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STATEMENT OF THE PROBLEM (Critiques):


The coffee market is a competitive market just as we find today in the case of any other consumer product. In the view of stiff competition, the company has to brace itself and face the challenges with all resources and effort it can summon. There is a need for frequent brand research and proper analysis of the market of the competitors, and where they stand in the market for the purpose of brand building and what impact the promotion strategy has on brand building. Coffee Day believes in innovation and creativity. As far as promotional activity is concerned, Coffee Day always strives for new ideas and does unique activities unlike their competitors. This promotional activity is also a part of innovation. Steps are being taken to formulate new promotion activities. One such step is marketing research, which will give the company relevant information about the various promotional activities in use.

RECOMMENDATIONS AND SUGGESTIONS


Recommendation or suggestions are the outcome of interpretation of collected data. In other words, procedure of converting raw data collected in to 27 | P a g e

useful information is called as recommendation or suggestion. Usually this step serves the company to understand the problem existing and to design the solution. Recommendation and suggestion are very important for a research or a study. So with the help of my study, I can give the following recommendation and suggestion;

For the promotional activity offered by Caf Coffee to become more effective, they should distribute more samples to customers. Sales promotion activities like discounts, premium offers and a reward program should be carried out. The advertisements of Caf Coffee Day in various media such as local cable channel, radio, through Internet should be increased. Caf Coffee Day should also have the option of their product to be exhibited in other companys outlets.

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CONCLUSION
The recommendation provided is strictly based on the information

gathered by market survey. The details or information were collected the customer samples of Indores Caf only. From the above detail we can easily conclude that Caf Coffee Day has various effective promotional activities, which are very different than others. Caf Coffee Day should also have the option of their product to be exhibited in other companys outlets for making their promotional activity more effective. This can also be done by investing more on advertising in magazine, newspaper, radio city, internet, banners etc. We can also conclude that the advertisement concept will definitely prove as an effective tool to attract new customers and enhance the customer satisfaction level.

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