Marketing of Services Project Caf Coffee Day

A lot can happen over a cup of Coffee

Presented By:

Purnima Jindal Nikita Khanna Nikita Khurana Neeraj Naman

A-03 A-10 A-23 A-37

Introduction Role of Technology Major Competitors Customer Expectations Ways firm determines consumer expectations and perceptions Bundle of Benefits Service Quality dimensions Customers involvement in Service Delivery Service Blueprint Service Encounters/Moment of truth Physical Evidence Role of Servicescape Aspects of Service Delivery in Service Delivery Marketing Strategies (Pricing, Advertising etc) Service Delivery through Intermediaries Service Leadership SWOT Analysis Managing Promises Future Plans Conclusion Recommendations

Introduction
Caf Coffee Day is a part of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), the first to roll out the coffee bar concept in India with its first caf in Bangalore Coffee Day has a rich and abundant source of coffee. This coffee goes all over the world to clients across the USA, Europe and Japan, making it one of the top coffee exporters in the country Caf Coffee Day is one of the most popular hangout places. The coffee joint is very famous among youngsters. Coffee is one of the favorite beverages and has become more appealing because of its

variety.

 Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf at Brigade Road in Bangalore

Caf Coffee Day today has cafes in Vienna, Austria and Karachi. Whats
more, new cafes are planned across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future. In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the concept of Power of Dialogue. In accordance with this new brand identity, CCD planned to give all its existing outlets a new look by the end of 2009 This Caf was opened as a Cyber Caf (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency Coffee !!

Role of Technology
Technology plays a major role in Caf Coffee Day because all the work like billing, stock maintenance, inventory control, etc is done with the help of computers.

For making the coffee and tea they require machines, which give an edge to the service provider over local players like the small tea stall or coffee stall.

Major Competitors
Barista Lavazza

Costa Coffee
Caf Mocha

Retail players like Reliance Retail and Shoppers Stop are

also retailing coffee with their multi-products offering outlets like Reliance Timeout and Desi Caf respectively Local Coffee Shops

Customer Expectations
When a customer visits a coffee shop they expect a good experience. They want the service provider to provide them with the best services they have
42% people consider the quality of services offered by the coffee shop !!

Customers grade Caf Coffee Day good when it comes to ambience. Customers grade Caf Coffee Day good when it comes to pricing. Customers grade Caf Coffee Day very good when it comes to service offered. Customers grade Caf Coffee Day very good when it comes to quality of product. Customers grade Caf Coffee Day very good when it comes to Location.

Which simply proves that Caf Coffee Day is one of the best hangout place for the youth who consider the factors mentioned above while selecting a Coffee Shop !!

Ways the firm determines and measures customer perceptions and expectations CCD determines and measures customer expectations and perceptions with the help of: Online surveys Questionnaires On the spot feedback from customers. Usually all the CCD outlets have a wall dedicated to the customers wherein they can write their experiences and service quality.

Bundle of Benefits
Benefits through pricing of products
Cafe Coffee Day is trying to target a market whose age range is between 15 and 60 years The pricing is low and act as a deterrent to some customers who might regard it as an indicator of quality, while very high prices cannot be afforded by most of the youth Prices are mostly inexpensive, and at par with their competitor

Benefits through People

The people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite and Positive.

Benefits through product line

Typical Service Performance of Firms

From the above chart one can easily make out that the major competitor to Caf Coffee Day is Barista. Caf Coffee Day is facing huge competition from Barista as both of the service providers are targeting the youth segement

Service Quality Dimensions

Reliability
It is the ability to perform the promised service dependably and accurately. Each and every coffee shop (local one or International brand) promises best taste in terms of Coffee. These promises should me met accordingly in each and every aspect like quality & quantity.

Assurance
Assurance positioning would have to be backed up by evidence of the knowledge and thoughtfulness of administrators, faculty and staff and their ability to inspire trust
and confidence

Tangibility
It talks about the furniture, menus, the interiors etc i.e. Physical facilities, equipment & appearance of personnel

 Empathy Caring, individualized attention the firm provides to their customers. The mission of Caf Coffee Day is To be the best Cafe chain by offering a world class coffee experience at affordable prices

Customers Involvement in Service Delivery

In Caf Coffee Day service Customer involvement in the service delivery does not exist as everything is done by the staff. From taking the order till delivery of the order, whole process is taken care by the staff.

Service Blueprint

Service Encounters/Moments of Truth

When the customer first enters the restaurant he can find AD posters on the front glass of the Cafe Coffee Day After entering into Cafe Coffee Day, customer is guided by an employee, where he is provided with a menu card for the order. Here customer can feel the ambience and the dcor of the restaurant. After giving an order to the employee, employee passes the order to the front section of the kitchen. The employees in the front section would pass the order to backend kitchen where the order is prepaid. Parallely, employee would update the billing machine. The prepaid order is then served to the customer After availing the services and the products of Cafe Coffee Day, customer would ask for Bill. Employee would then give the updated bill to the customer. Customer will pay the bill either through cash or through credit/debit card. After payment is done the database of Cafe Coffee Day gets updated. After payment of the bill the customer leaves the restaurant

Value of Blueprinting
Following are the uses or advantages of having a blueprint for a service: Providing a Platform for Innovation
service blueprinting provides a common platform for everyone customers, employees, and managers to participate in the service innovation process. Blueprinting provides a common point of discussion for new service development or service improvement .

Recognizing Roles and Interdependencies The process of blueprinting and the document itself generate insights into various role and relational interdependencies throughout the entire organization. The customers actions and interactions are highlighted, revealing points at which he or she experiences quality

 Designing the Moments of Truth

Blueprinting promotes a conscious decision on what consumers see and which employees should be in contact at each moment of truth.

Transferring and Storing Innovation Knowledge

Service blueprints can be printed out or be stored electronically and made available to everyone involved. Blueprints being developed can be posted on a collaborative website, providing all participating parties with access to an editable form of the document

Clarifying Competitive Positioning

Service blueprinting allows firms to clarify competitive positioning by facilitating the comparison of the desired service and actual service, or company and competitor processes

Physical Evidence
1. Dcor & Architecture- Caf Coffee Day had gone in for
image change and revamping of interiors in the last quarter of 2001. Caf interiors have been given a whole, new look.

2. Literature-The literature provided by Caf Coffee Day is indicative of

its youthful image. The menus, posters, pamphlets are all designed to attract young and young at heart.

3. Dress Code- The dress code is black dress with the logo of Caf
Coffee Day on one side. This is also is one of the evidences.

Roles Of Servicescape Play in this Industry

The environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of the service

- Servicescape

Therefore it clearly proves that better services backed up by good servicescape is one of the most important aspect in terms of attracting customers, when it comes to Coffee Retail Industry or any fast food retailing business.

Aspects of Servicescape Influencing the Service Delivery

From customer Point of view:Exterior and Interior Design Ambience Food(quality, quantity & variety )

From the service providers point of view: Logo, Colors, Images

Dcor & Architecture

Marketing Strategies
Pricing
Considering that Caf Coffee Day knows its major customer lies in the bracket of 15- 29, it has tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from Rs.20 to Rs.200.

Promotion
Through television Ticket sales Association with movies Sales Promotion

Place
Caf Coffee Day looks to cater to their target market with strategically located outlets. Their outlets are generally located in High Street/ Family Entertainment Centers.

People
People at Caf Coffee Day believe that People are hired for what they know but fired for how they behave. Motivation and personal skill are laid emphasize upon.

Process
The order process at Caf Coffee Day is based on services, where the customer can read the menu and order. Whereas they have a flexible delivery process, where the customer can go directly and take what they have ordered for or the order is delivered on his table.

Positioning
Customers describe Caf Coffee Day as the place they frequently visit most after home and workplace/college. It is a place where they meet friends and colleagues, in groups of 3 or more. The prices here are perceived to be reasonable and it is a place where customers come to rejuvenate themselves and be themselves rather than a place to be seen at vis a vis other cafes.

Service Delivery through Intermediaries

Service Leadership
Combo Meals CCD Credit Cards Interactive Websites

SWOT Analysis
STRENTGHS
Products of extremely good quality and taste. Its a youth oriented brand , hence huge potential since 40 % population is below 20 It produces/grows the coffee it serves hence reducing the cost. USP of brand is its considered a highly affordable brand.

India's largest retail chain of cafes

WEAKNESS
Poor ambience and decor. Caf Coffee Day outlet served prime space for advertising and promotions. Many of the Caf Coffee Day stores are incurring loses due to wrong site selection.

 THREATS Competition with other coffee cafes like Barista, Mochas. International Brands like Gloria Jeans, Coffee Bean & Tea Leaf OPPORTUNITIES Coffee cafe industry is one of the fastest growing industries in Asia. More people like to visit Caf Coffee Day for informal meetings. Caf Coffee Day has gone international, and is planning to attract many new international markets, hence gaining international recognition

Managing Promises
Highly rated Taste & Best Quality products. Value for money proposition. To provide a comfortable atmosphere and soothing ambience. To provide better services in terms of order processing and delivery time.

Future Plans
To expand its international operations by opening
cafes in rapidly growing coffee markets such as Central Europe, Asia Pacific and Africa.
It has also embarked upon a Rs 400-crore domestic expansion plan and will open around 300 new cafes. It will have 2000 cafes by the end of 2014.

Conclusions
That Caf Coffee day is planning to go international.

The other major things regarding service marketing is that customers give top priority to the quality of the services / products and ambience.
The major competitor of Caf Coffee Day is undoubtedly Barista as both of the service providers cater to same market segment India as they find India new target market

Recommendations
To improve the interiors and dcor. To have more and more tie-ups. Only 50 % or less than 50 % people find Caf Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Caf Coffee Day need to do lot of homework in order to satisfy its customers. It should introduce a feedback form system in order to know about the customers satisfaction level.

T H A N K
Y O U