CCD-Presentation Group 7

8/12/2019 CCD-Presentation Group 7

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Introduction

THE COFFEE CAF INDUSTRY

History

Individual Cafes

Hotel

Retail Caf Stores

Caf Industry in India


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Caf Coffee Day

Division of Indias largest coffee conglomerate;

Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL)

also called Coffee Day

Coffee Day has a wide and professional network comprising over 48

Agents and 50 collecting depots.

Its works at Chikmagalur and Hassan for over 70,000 tonnes of coffee per annum,the largest in the country.


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OPPORTUNITIES IN COFFEE CAF INDUSTRY

0

20000

40000

60000

80000

100000

120000

2003 2004 2005 2006 2007 2008 2009

Coffee Consumption(MT)

Coffee Consumption(MT)

MARKET GROWTH OPPORTUNITY


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Consumption : City Type

Tier 1

Tier 2

Tier 3

Village

No. of CCD outlets

Tier 1

Tier 2

Tier 3

Village

OPPORTUNITIES IN COFFEE CAF INDUSTRY


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Demographic Segmentation

Occupation

Students,40%

WorkingProfessionals

, 51%

Retired +Non-

working, 9%


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Demographic Segmentation

Age- Based

Under 181834

years

Under18

21%

18

3467%

35-5410%

55+2%


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Psychographic Segmentation


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Lifestyle

Music Caf

Book Caf

Lounge Caf

Cyber Caf


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Lifestyle

43.80%

28%

37.70%

29.80%

12.30%

28%

12.30%

13.20%

Format Cafes

Music cafes

Book cafes

Lounge cafes

Garden cafes

Cyber cafes

Sports cafes

Singles cafes

Fashion cafes


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Personality

Expresso: The original Italian - strong and dark. Small but packs apunch. According to the Italians, its The Godfather of coffee.


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Personality

Exthiopian: Coffee straight from the land of its inception; aconnoisseurs delight.


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Personality

Devils Own: Get wicked with this cafe frappe loaded withchocolate and whipped cream. Ah, so sinful.


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Personality

Expresso: The original Italian - strong and dark. Small but packs apunch. According to the Italians, its The Godfather of coffee.


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Behavioral Segmentation


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Occasions


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Benefits


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Benefits

Ambience /

Experience, 72.81%

People /Service,15.79%

Taste of coffee /food, 57.89%

Value forMoney, 20.18%

Customer's Preference


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User Status

Loyalty Status


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Targeting

Potential segments targeted by CCD

Geographic: Tier 1 and 2 cities with an increasing focus on the latter

Income: No clear target group

Occupation: Students and young working professionals

Age: 18-35 years

Personality:

1) Enthusiastic, outgoing and impulsive youngsters who seek a place where theycan socialize

2) Trendy and fun-loving people who are a bit resource-constrained

Lifestyle: Selective target groups like Money for value buyers (through its loungecafs), Book-lovers (Book cafs) etc.


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Positioning Strategy

Had to take a differentiated positionwith respect to Barista

in face of stiff competition

CCD decided to position it as a brand focused solely on the youth

The following are a few attributes which exemplify this positioning of CCD.

PricingKey to building good market share and brand loyalty

ProductsIndianness in the menu

Store locationsTo positioning itself as a preferred hangout place for youth

Store ambience and dcorInformal, lively and youthful ambience; brightand eye-catching interiors. Positions it as an experiential Brand

Logo and Colours - Recently changed to a new logo

PromotionsUse of mass media; Tie-up with youth brands and promotion

using youth icons


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SWOT Analysis

StrengthsLargest organized retail coffee chainStrong Brand Equity

Highly affordablepriced 20-30% lowerthan competitors

Huge potential market as it a youth-orientedbrand

Strong Positioning Strategymalls,corporate campuses, educational institutions

Self-producer of coffee

Region specific localization of offeringsstill in its initial stages

Poor dcor compared to its competitors

Opportunities

Growing coffee market in India

Rising income levels and growing exposureof middle class to western market

Increasing no. of students enteringhospitality industryhighly skilled humanresource

High scope of expansion in Tier-3 cities

CCD can enter into alliances

Diversifying into herbal drinks category

Threats

Competition with other coffee cafes-Barista,Mochas

Competition from tea, aerated drinks andother beverages

Hukka parlours likeSheeshas,Peshawar,Koylas capturing youthattention

Entry of international players like StarBucksin India

Weakness


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Competition

Weakness

Direct

Barista Caf Mochas

Qwiky

Costa Coffee

Indian Coffee House

Indirect

Eateries likeMcDonalds andHaldirams

Local tea joints , coffeeshops like Caf Nescafe

Global

Starbucks planning toenter India

Coffee Bars in countrieswhere it is operating orplans to operate


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Recommendations

Targeting more than youth Beyond just coffee and hangout International Business Expansion Establish Competitive Point of Parity Online Sales of Coffee and Merchandise Promotion Strategies

Collaborations Postal CCD Coffee Cards Coffee Vending Machines in Corporate Offices

Ensure Brand Loyalty Caf Citizen Cards Special offers, surprise gifts and complimentary hot

beverages to regular customers


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THANK YOU

CCD-Presentation Group 7

Documents

Transcript of CCD-Presentation Group 7