Post on 21-Jan-2015
description
Presented by : Group 2
B008 IndrajitB009 VipulB015 TanmayB021 DhruvB051 PratikB056 Gaurav
Brand Analysi
s
What is Café Coffee Day?
• 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
Market Analysis
• Coffee – a sunrise industry
• Growing young population and promotion of coffee culture
• Coffee Segmentation:
Robusta and Arabica BeansDifferent growth culture
Pure and blended coffeeCheaper products like chicory, vanilla, mocha
Filter coffee and instant coffee43% share of filter coffee
Café Coffee Day Networkof 1450 cafes across India
185 cafes
64 cafes
172 cafes
191 cafes
Market Analysis
60%30%
10%
Growth Target
Tier I Tier II Tier III
• Network strength of over 1450 cafes in 200 cities and towns with average footfalls of 200 per café per day
• Distribution Strategy:• Single unit at Chikmagalur with capacity of
70,000 tonnes per annum
• 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
300150
50
Hangs out at cafes/malls
Looking for a good lifestyle
Looking for a multiplicity of experiences
Seeks 'feel-good factor' and expression of identity
through choice of brands consumed. But is also value
conscious
Likes to be seen at the right place Socially Active
Profiling the CCD’ian
Strong voice in household purchases
Consumption areas: Personal clothing & accessories, food,
entertainment, consumer durables
Make consumption related decisions in company of friends
Tech Savvy
Influencers: Peer group, workmates
• 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”
• Major chunk of CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage.
• The group comprises of mainly college going students and young working professionals
SegmentTarget
Positioning
SegmentTarget
Positioning
• There is a definite skew towards singles: 66% singles, 27% married & 7% others.
27%
66%
7%
Married Single others
Business Professionals : 23%
Special occasions : 20%
Hangout for youth: 57%
Segmentation Target Positioning
Who hangs out at CCD?
Ansoff’s Matrix
Entered with basic products
Winning customers of competitors
Was used as promotion and cost cutting techniques
Come out with new and different
products Eg. Pasta in food and
new flavor in beverages
Existing customers New Products
New customers Old Products
Eg. increased sales in Western India due to
new products launched
Launch Café Coffee Day in a new market Eg. In Africa where
coffee has never been launched
before
Pres
ent
New
Present NewM
arke
tProducts
STRENGTHS
• First-mover advantage
• Excellent brand name and visibility
• ISO 9002 certified company
• Quality, service and taste
• Youth oriented brand
• Reduction in cost
WEAKNESS
• Lack of individual attention to loyal customers
• Unavailability of fresh food
• Market penetration of coffee bars is 5%
OPPORTUNITY• F
astest growing industries in Asia
• Merchandising
• Tie ups with other companies for promotion
• Tapping smaller market
• Cheaper varieties of coffee
THREAT• C
ompetition with Barista, Mochas, Gloria Jeans, Costa Coffee & Starbucks
• Presence of other ‘Hangout’ locations
• Unorganized market
• Dependent on government commodity rates
SWOT
Product
• Wide range• Frappe – Summer• Cappuccino -
Winter• Merchandizing
Price
• Range from Rs45 to Rs100
• Over the years only minor changes in pricing policy
Place
• All locations• Strategically
located outlets• Coffee machines
in college canteens
• Kiosks in offices
Promotion
• Channel [V]’s “Get Gorgeous” Contest
• Tie up with youth brands
• Khakee and Main Hun Na
• Sales Promotion
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”
Marketing Mix
Porter’s Five Forces Model
Threat of new
entrants (LOW)
Buyer’s Power(HIGH)
Supplier’s Power(LOW)
Threat of Substitutes
(HIGH)
Industry Rivalry(HIGH)
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 (Starbucks)
Buyer’s Power - High• Low switching cost• Variety of products• Variety of services
Supplier’s Power - Low• Absence of cartelization• 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 and Bistro
Industry Rivalry - High• Local Coffee chains like Barista, Mochas• Entry of international coffee chains such as Starbucks, Costa Coffee, Gloria Jeans
Economic
Social
Technological
Environmental
• Less bureaucratic hurdles• Easy sourcing of coffee beans• Cost control because of Govt regulations
• Heavy coffee drinkers in South India• Cheaper sourcing maintain quality
• Targets youth and middle class• Affordable for a meeting place
• Marketing strategy based around technology• Provide entertainment over Bluetooth &Wi-Fi
Political
PESTEL Analysis
• Limited production/Less pollution• Use biodegradable plastics
Legal• Ethical and based on customer delight• Less consumer complaints and quick customer service
Competitor Analysis
CCD54%Barista
26%
costa coffee14%
others6%
Market Share
CCD68%
Starbucks12%
Gloria Jeans3%
Barista17%
Share of mind
CCD33%
Chandu Chaiwala
67%
Unorganised sector
Sample size – 150+
STRENGTHS
• 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
WEAKNESSES
• 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
OPPORTUNITIES• I
ntroduce cheaper & unique versions of coffee
• Tap smaller towns/cities
• Increase promotion to change the perception of being an expensive brand
THREATS• T
hreat from existing coffee chains and fast food outlets
• Dependent on government commodity rates
SWOT
Product
• Wide range but not as CCD
• Traditional product with traditional names
Price
• Skim pricing policy
• Prices are lower, but still higher when compared to CCD
Place
• Strategically located outlets
• Malls, cinemas, office areas, high streets
Promotion
• Promotion through Press, TV and Radio medias
Process
• Self service• Complaints and
feedback
People
• Pleasant, polite and positive
• Uniforms in sober shades of brown and orange
• Personal skills
Physical Evidence
• Colors in logo, interiors and posters
• Uses shades of brown and orange to promote its laid back atmosphere
Marketing Mix
STRENGTHS
• 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
WEAKNESS
• 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
OPPORTUNITY• I
nterest in Western Brands in Indian minds
• Targeting rapidly growing Indian urban youth
• Well defined plan to expand in the next 5 years
THREAT• G
lobal Policy Conflicts
• Presence of other ‘Hangout’ locations
• Largely unorganized market
• Established competitions
SWOT
Advertising
• As a reaction to the launch of Starbucks in India, CCD debuted with TV Ad – Sit down-ism
• 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
Suggestions
• Cultivating a cult following for coffee afficionados
• 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