CAFÉ COFFEE DAY By,Nikhil Cherian (FT11139)Ashish Shetty (FT11311)Rahul Choudhury (FT11150)Raghav Arora (FT11249)Rahul Raj (FT11445)

The Brand ChosenCafé Coffee Day has the largest café retail chain in India – 1001 outlets as of 24-10-2010

CCD pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore

The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power.

The Brand Chosen“CCD today has become the largest youth aggregator,

and from a marketing stand point, the success has come by focusing on the 3As: Accessibility,

Affordability and Acceptability.”- Bidisha Nagaraj,

The Marketing president of Cafe Coffee Day

CCD’s Mission statement: “To be the best Cafe chain by offering a world class coffee experience at affordable

prices”

Why was this brand chosen? To study innovative formats to woo new customers

How they achieved their stated goal of “Value for money” – price of their offerings are relatively cheaper than the others for the same quality

What are the benefits/obstacles of being present in many locations – to be more accessible than their competitors

How has their system of no franchises worked for them – all outlets are owned by the ABC group

Why was this brand chosen? A brand which continually updates its look.

Spring cleaning in terms of logo, design/feel of their outlets lest “fatigue” sets in on the brand image.

New logo to symbolize “dialogue”. A place of interaction for it’s customers

Why was this brand chosen?

Café Coffee Day’s tagline:

“A Lot can happen over Coffee”

Insights GainedIn Terms of Advertising to create Brand Awareness:

CCD does not advertise itself via traditional media ads

Growth has been Organic. Physical presence is sufficient to create brand awareness

CCD advertises ABC’s other offerings such as The Serai Resorts.

Insights GainedCCD as a meeting place: “CCD is not just in the business of coffee, It’s in the business of

enabling businesses/people to meet each other”

Given CCD’s presence in every major city and most major towns, the simplest and most convenient meeting point that everybody knows is a CCD (it’s an easily identifiable landmark), unlike Barista/Lavazza

While others are building coffee business, CCD is building real estate/meeting-point business where coffee is just a by-product. They wish to have a café in any location where some business can be generated

Insights Gained

CCD’s growth story closely resembles Starbucks.

Expansion to the Rural market? Not at the moment. As of now, Non-

essential goods won’t do well, penetrating the tier 2 & 3 towns though

Recommendations Focus needs to be on product innovation and

experience – to meet rising customer expectations.

With time, the rural market will be ready for CCD’s entry. It will have to create the same café culture craze it managed to do so well in the cities to a people unaccustomed to it.

Recommendations CCD’s strength lies in it being able to

provide quality matching it’s competitors for relatively cheaper prices. This is due to: The ABC group has complete control from

production of Coffee in it’s fields of Chikmagalur, Karnataka to it’s 1001 outlets around the world.

It cannot afford to let that advantage slip

Recommendations CCD has expanded out of India. They now have

Cafés in: Pakistan, Austria and Germany

CCD’s expansion into the International market will be fraught with more difficulties as: They will face stiff(er) competition Customers have higher expectations CCD will have to raise the bar even higher in terms

of product innovation and service offerings.

Recommendations

CCD’s No-alcohol policy will have to change to be successful in the European and American markets. As is evinced by the Starbucks Liqueurs

range – which has been enormously successful.

‘A lot can happen over coffee’

Thank You