Caf Coffee Day

a Lot can happen over coffee !!!

GROUP 8
Anjan Dash Pavan Rangudu Shalini Narasipur Shamik Bhattacharya Sreenhija Cheemalapati

Introduction
Started in 1996 in Bangalore by V.G. Siddhartha, chairman Amalgamated Bean Coffee Trading Co. on Brigade Road as a cyber caf. Lack of clear positioning leading to its loosing ground to its competitor Barista in 2002. CCD had 35 cafes as against 85 from Barista. Being the "third place" away from the home and college or workplace for the young and the young at heart brought CCD back on track in the race. Today by ranking of number of Cafs it occupies position 1 in India, 3 in Asia and 5 in the world. 1270 is the number of stores in India today indicated by a meter on its website. Sources of its competitive advantage Number of stores own plantations Business to supply furniture to cafes Hospitality college to provide trained staff

Segmentation & Targeting

The parameters used by CCD to segment its potential customer base is : Geographic Targets Tier I and Tier II cities Demographic Age is the feature chosen with target from 15- 30 mainly Behavioral socially active youth preferring to hang out make consumption related decisions in company of friends their main influencers are the peer group and workmates

AGE
9% 28% 29% 13% 21%

less than 16 16-19 20-24 25-30 More than 30

Marital Status
7% 27% 66% Single Married Others

Positioning
Caf Coffee Day
A beverage and snack joint Clean environment Good product Range Affordable Prices Place to initiate conversation Warm Friendly Non inhibiting

Loyal Cool Buddy

Secure, Loyal Habitual

Modern, Young, Social networking Initiate Conversations Progressive

Youth Hangout Joint

Young Reasonably Affluent Socially active global lifestyle

Young Reasonably Affluent Socially active Global lifestyle

Youth (Age 15-30) Spending power Rs 7k-40k p.m Typically in a metro 4

Value Proposition Great Caf experience

Accessibility

Core strategy by CCD- Differentiate through Sheer Presence 1270 outlets as of data with presence in most of Tier-1 and Tier-2 cities

Affordability

Brand Considered Affordable- Average spending 150-200 Multiple formats for customers to choose based on affordability(Caf coffee day, Caf Lounge, Caf Square)

Acceptability
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Accepted as a place most time spent in next to home/college, Social Hub. Newer formats offer a complete experience of a caf, business center with conferencing facilities Products offerings customized/enhanced to suit customers better(Ex: Continental Menus, Mixology etc)

Customer value hierarchy

Potential Product Augmented Product

Potential Product: caf, Retail, Business center under one roof Selling coffee in dine ins, coffee pubs Augmented Product: Varied formats caf such as Music Caf, Highway Cafes, garden caf Occasion & season specific Specialty coffees, exotics deserts Expected Product: Well maintained Cafes, Caf lounge, Coffee day square. Merchandise such as coffee powders, coffee makers, coffee mugs etc Basic Product: A cool place to hang out with coffee , food & beverages, merchandise Core Benefit: A Place to Initiate Conversation

Expected Product

Basic Product

Core Benefit
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Product Differentiation
By sheer presence. CCD aspire to open caf in all locations where a people need a place to hang out. World class coffee experience in affordable price. CCD provides good coffee in lower prices

Alternate Brewing technique & Mixology. Brew masters blend flavours as per customers inputs and create a magical brew.
Caf Square. In this type of stores customers get conferencing options, continental dishes, eatables The Lounge. Ability to Create what you would like to have 24x7 Highway Cafes. Caf coffee day differentiates from high way dhabas by providing neat and clean ambience, quality food etc at a premium price
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Product System & Mixes

Primary Product. A place to initiate conversation

Different Verticals.

Highway Cafes

High Street

Premium Institutions

Store in Store

Transport Hubs

Hotels

Hospitals

24x7 cafes with good eatery and hygienic washrooms

Enhance brand image of CCD. Cater to hip & young customers

Regular adda for students to hangout in premium institutions

Crossword , Shopper Stop generally have a big number of foot falls. CCD capture this market by tie ups

Airports, Metro stations etc

CCD partnered with Ginger hotels

Tied up with hospital giants like Apollo

Product System & Mixes

Products Offered in CCD

Product Line Analysis

Beverages
Coffee, Tea, Cold beverages

10%

Eatables
30% 60%

Sandwiches, Samosa etc Ice creams, cakes

Merchandise
24x7 cafes Bevarages with good eatery and hygienic washrooms

Eatables

Merchandise

Airports, Metro stations etc

T shirts, Caps Tied up with CCD Coffee beans, powder hospital etc partnered
with Ginger hotels giants like Apollo

Competitors

Caf Coffee Day Stores: 1270 Bangalore: 170 International Presence: Yes Market Share: 60%

Barista Lavazza Stores: 300 Bangalore: 32 International Partner: Lavazza Market Share: 30%

Costa Coffee Stores: 48 Bangalore:6 International: UK based. 21 countries

Starbucks India Entry with alliance partner TATA Group. International: More than 17000 outlets Target: 50 outlets by 2012

Caf Pascussi Stores: 7 Bangalore: 5 Franchisee: Madhura Beverages International: Italian 12 countries

Pizza Hut Stores: 140 Cities: 34 Bangalore: 30 International: American Restaurant chain. 91 countries 12500 stores worldwide

Mc Donalds Stores: 200+ Cities: 12 International: American Restaurant chain. Worldwide: 33000+ stores 119 countries

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