colg cooffee

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A PROJECT REPORT ON

Study the Impact on Retail

Indian Coffee Industry with the Advent of Coffee Shops.

(With Emphasis on Cafe Coffee Day)

BY

Divya sharma

UNDER THE GUIDANCE OF

PROF. Parul gupta

SUBMITTED TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

THROUGH

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY

GREATER NOIDA-201306

(2008-2010)


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Acknowledgement

The project is the result of the efforts of many people. I would like to place on record

my sincere thanks to the various people for their assistance, guidance and co-operation

for the successful completion of this project.

First and Foremost, we owe our sincere thanks to army Institute of Management & technology

for all the support provided.

I also thankProf. PARUL GUPTA, faculty guide, AIMT, GREATER NOIDA who has

sincerely supported me with the valuable insights into the completion of this project.

My overriding debts continue to the respondents without the time and sincere efforts of

whom the project would not have got its current shape. And last but not the least friends

and family members who have given us enough support, encouragement and blessings

without which the completion of this project was not possible.


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DECLARATION

I, Ms. DIVYA SHARMA do hereby declare that the project report titled Studythe Impact on

Retail Indian Coffee Industry withthe Advent of CoffeeShops.(With Emphasis on Cafe

Coffee Day) is a genuine research work undertaken by me and it has notbeen published

anywhere earlier.

Date:

Place

:

DIVYA SHARMA

AIMT, GREATER NOIDA


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EXECUTIVE SUMMARY

India has always been predominantly a Chai (Tea) drinking nation. However, there has

been a sudden change in this trend with coffee becoming more and more popular in

recent times especially among the younger population. The roadside Chai (Tea) thelas

(shops) outside colleges and offices have been replaced by hip coffee joints like Barista

and Caf Coffee Day. The Chai (tea) that used to cost couple of rupees (5 cents) is

replaced by coffee costing something like Rs. 100.

India has now becoming one of the fastest growing coffee markets in the world.

According to Technopak Advisors, a global retail consultancy firm, the organized coffee

retail business in India is over Rs.8 billion ($17 million), and the potential for coffee

retail outlets are nearly 3,000

With the Indian middle class consumer ready to spend more and be a part of global

lifestyle and culture, coffee parlors in the country are on an expansion spree. From

small-sized coffee parlors to classy coffee lounges leading coffee retailers such as Caf

Coffee Day, Barista, Costa Coffee and Coffee World have all been fighting hard to lure

Indias growing middle class.

Cafe culture is the latest trend to take the nation by storm. It joined the race

simultaneous with the satellite culture. Although not as big, the culture has nonetheless

caught on the consumer fancy and has spawned quite a few coffee chains. Amongst the

big guns is Amalgamated Bean Coffee Trading Companys Cafe Coffee Day.

This study cannot be complete without looking at the ever changing habits and

preferences of consumers

The consumer profile in India especially is one with varied cultural and traditional

influences. In terms of coffee, southern India is supposed to be one of the major

consumers of same as compared to the Northern and other parts of India.


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Filter coffee is the preferred drink in south while instant coffee in north. Price also plays

a major significant role in their purchase decision.

In this study i have looked at the consumer from the following aspects:

Their Monthly disposable incomeServices offered to the consumerQuality of the ProductDemographic segmentation of consumersPriceConsumer Perception towards such upcoming retail services in India is another

consideration.

Index


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S. No. TOPIC PAGE

Objective of the study 8

Section 1.LITERATURE RIVIEWIndian coffee industry 10

About caf coffee day 12

Positioning 14

Product analysis 17

Generic competition 18

Distribution strategy 19

Competitive strategy 20Market expansion 21

Section 2.RESEARCH MEATHODLOGY

Sampling technique 22

Data collection 23

Sample size 25

Participants profile 26

Instrument 26

Statement validation 27

Section 3

Result and analysis 28

Section 4

Suggestions 40

Section 5

Conclusions 43

Section 6

References 45


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Section 7

Appendix 47


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OBJECTIVE OF THE STUDY

The reason for selecting the brand Cafe Coffee Day as the subject for research study

Was to understand how the various attributes present or absent, with respect to a

product affects the buying behavior of the consumers

The study was important to gain valuable insights into the behavioral patterns of the

consumers when it comes to buying a product which has a premium attached to it.

1. Is Price is the sole deciding factor while buying Coffee at Cafe Coffee Day.

2. Who are the loyal customers of Cafe Coffee Day.

It was also necessary to understand how people react to a product which has a snob

value attached to it and to understand the level of acceptability of a product when

certain attributes are available and when certain attributes are absent

The study was also undertaken to analyze whether there was any scope for

improvement for the subject under consideration and what can be done to improve its

standing vis a vis its competitors.


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Section 1

Literature review


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INDIAN COFFEE INDUSTRY

India ranks 5th among the top 10 countries of the world, accounting for 3 % of the total

world coffee production and exporting 80 % of the total produce.

It is also the 5th largest coffee producer. Being a traditional tea consuming country, the

average coffee consumption in India was quite low at 10 cups per person annually.

People in the Northern region preferred instant coffee in contrast to the people in the

south, who preferred traditional filter coffee.

Coffee, a household beverage confined to South India became quite popular in the late

1990s. The late 1990s saw the emergence of coffee chains. Moreover, there was a

transition from the conventional and out dated coffee house to a more sophisticated and

trendy coffee bars. In the late 1990s, non-traditional coffee retailing outlets like coffee

bar chains, coffee vending machines, and specialty coffee powder shops offered

exciting growth opportunities. They constituted 50 % of sales in the Indian Coffee

Industry. The growth of these specialty and gourmet coffee shops was a result of the

economic and demographic changes, higher disposable incomes, increasing number of

working women, and increasing awareness and exposure to global trends

Today's Coffee Drinker

Today's coffee drinker who visits the cafs is mainly the youth between the ages of 15

and 35. Students form a majority of the customer base for the cafs. Caf Coffee Day

estimates that about 60% of the footfalls in its 300 plus outlets are those of students.

Barista estimates the same to be 40% in its outlets. Many of these youngsters consider

a caf as a meeting place for discussing their projects or just interacting with other

students rather than as a place that just serves coffee. Many of these outlets have juke

box music, wi-fi connections, and even a cell phone charging station. It's a place where

one can sit, talk, relax and incidentally drink a cup of gourmet coffee with added flavors

such as chocolate, caramel, and hazelnut. Hence, many outlets serve more than just

the various varieties of gourmet coffee. Since students and youngsters in general prefer


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snacks rather than meals, cafs serve both Indian and continental snacks. Costa Coffee

as part of their menu is planning on introducing wraps and actually adding an Indian

flavor to suit the local palate.

Barista and Caf Coffee Day have entrenched themselves into the minds of the

consumer. They have outlets at almost every street corner and concentrating more on

areas, which are likely to be visited by youngsters. It would be rather difficult to steal

customers from the two leading chains even though they might claim to offer a

`smoother' blend. Pricing will be a major factor in this regard. Starbucks and Barnie's

might invite traffic into their outlets initially for the novelty aspect but might not lead to a

loyal customer base as consumers might realize that they are paying a huge price for

the `un-perceived' value of a `smoother' blend. Whether these foreign players will really

make inroads and what slice of the pie they will take is yet to be seen. It's certainly

worth the wait to see them make a mark in the mind of the consumer.


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ABOUT CAFE COFFEE DAY

LOGO

Caf Coffee Day is a chain of coffee shops in India. A division of Amalgamated Bean

Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Caf Coffee Day. It

opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest

caf retail chain in India - with 450 cafes across 69 cities in India.

The cafe chain has had much success riding, and to some extent creating, the cafeculture wave that swept across metropolitan India following the BPO boom and the

resultant increase in youth spending power. With a hip, trendy image, the chain attracts

a lot of young folk who work in BPO businesses.

Its different divisions include: Coffee Day Fresh 'n' Ground (which owns 350 coffee bean

and powder retail outlets), Coffee Day Xpress (which owns 341 Coffee Day kiosks),

Coffee Day Takeaway (which owns 7000 vending machines), Coffee Day Exports and

Coffee Day Perfect (FMCG Packaged Coffee) division. It is now entering the European

market as well, making forays into Pakistan, Austria and Germany to set up cafes

abroad.

One unique aspect of Caf Coffee Day is that it grows the coffee it serves. The coffee

beans are produced in the golden soil of Chikmagalur.

Caf Coffee Day has created its own identity. When one thinks of a caf its got to be

Caf Coffee Day. The font used for Caf is called SLURRY. The upward swirl in the

logo depicts the freshness and the aroma it provides with every sip. It has emphasizedgreat attention in choosing the colours, which is young and vibrant.

The Tag line - A LOT CAN HAPPEN is aptly chosen for the brand whose major


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objective is to cater the youth in the 1529 year age bracket. The location chosen by

Caf Coffee Day also ensures that people can rejuvenate and be themselves. It has a

well equipped roasting unit catering to the specific requirement of the consumers. There

are Self service counters/outlets, but table service is also provided.

Cafe Coffee Days after sales service team are well trained and certified to service a

wide range of manual, semi-auto to fully-auto Coffee machines and related equipments.

The vast knowledge and experience of Cafe Coffee Day Coffee team will enable them

to serve customers well. They have been able to secure a strong foothold in the

marketplace by ensuring customers are happy and need not look anywhere else for the

best service and product range. Customers have attested to the consistent flavors and

aroma of premium quality Coffee and comprehensive range of other products, made

even better by prompt and friendly service.

Cafe Coffee Day Coffee Team is confident that being part of a global network which

will give them strength and diversity as they strive to improve to service customers

better.Caf Coffee Day believes that - People are hired for what they know but fired

for how they behave.


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POSITIONING

Caf Coffee Day, at its inception in 1996 was the vanguard of a caf culture in India.

At a time when the country was growing well economically and young India enjoyed

higher spending power, CCD as it is popularly known, started to set up the first retail

chain of coffee bars. It broke new ground in 1999 when the entire market grew

phenomenally with the entry of new players.

From the beginning, it positioned itself as being a coffee bar and has maintained that

positioning for a long time now. For a consumer, CCD represents a fun place where

one can go with a whole bunch of friends at any time of the day and have a good time,

over coffee.

In 2002, Caf Coffee Day underwent a rebranding exercise through a change in its logo.

The earlier logo was a simple red square with a white streak running across, and

Coffee Day written at the bottom. At this stage, CCD was still perceived as a

South Indian coffee joint similar to the Coffee House in Kolkata, a place where

intellectuals meet and spend their time discussing issues. CCD saw a latent market in

youngsters, who were increasingly looking for a place to spend time with friends and

have fun. It then created an umbrella mother brand, Coffee Day and four subbrands to

represent the various activities. The logo then incorporated red, white and greencolours, a larger font and emphasis on the word Caf. According to the company, red

signifies leadership and passion and the white swirl stands for purity of purpose and the

feel of coffee. The new colour green endorsed the long heritage of CCD in growing

coffee.


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ADVERTISING, SALES PROMOTION AND SEGMENTATIONSTRATEGY

Caf Coffee Day does not look at mass media as a viable area of advertising or

marketing spend. CCD is advertised through barter deals with other brands for ground

events

BELOW-THE-LINE ACTIVITIES

y2003- Levis launched a new range of Low Rise jeans through a campaign called 6

below. CCD displayed POPs of Levis in all its outlets during the campaign.

y2004- The launch of Liril Orange soap by HLL was conducted in Caf Coffee Day.

y2004- TVSScooty tied up with CCD for events in the coffee bars and at malls on

Valentines Day in February.

y2004- CCD was the official ground partner for the Channel V Get Gorgeous contest

SALES PROMOTIONS

yMerchandising- Every CCD stocks merchandise ranging from coffee mugs, T-shirts,

caps, bags, coffee filters, mints, different flavours of coffee powders, tea and cream,

wafers and biscottis. It also merchandises promotional materials for other brands it

associates with. When some brands are conducting events for which passes are

distributed or movie premiere tickets are given out, CCD is an important hub for these

activities as most of the target market.

yCCDs Guide to Active Holidays- It is a travel guide focusing on adventure sports and

is available in the CCD outlets, for people seeking escapade from monotonous life.

yCaf Beat- An in-house magazine which gives the entire low-down on whats

happening in CCD outlets across the world. It describes experiences of customers,

celebrations in CCDs, and covers youth-centric topics like movies, music, travel,

lifestyle, e-dating, books and careers. Around 38% of CCD


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goers read Caf Beat and some carry it back with them.

yCCD has now tied up with WorldSpace and Microsense to provide satellite

connectivity in its outlets.

SEGMENTATION STRATEGY

Caf Coffee Day has its main consumer base in the age group of 15-29 years. Its

customers are mainly middle class and upper middle class youth who are upwardly

mobile. From the market, CCD seeks to target not just the youth but anyone who isyoung at heart. More than 10% of their customers are above 35 years of age. The

evidence of the connect CCD has been able to make, particularly among the youth,

comes from the findings of Brand Equity's Most Trusted Brands 2008 survey. In the food

services category, CCD ranks No 2, while McDonalds stands at No. 3 and

Barista lags at No 5.


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PRODUCT ANALYSIS

Caf Coffee Day has different caf formats across different cites. They can be

categorized into Music Cafs, Book Cafs, Highway cafs, Lounge cafs, Garden

cafs, and Cyber cafs. Every format has a different feel to it.

Also, Caf Coffee Day changes or makes fresh additions to its menu from time to time.

This includes having specialty coffees from different countries, exotic desserts and pina

coladas. Since the target consumer is of an age where one constantly seeks change,

this makes sure that the consumer does not get bored with a repetitive style and seeks

new places to go to.

Caf Coffee Day has changed its interiors twice since inception. First, during its

rebranding in 2002, where it brought in big photographic wall mounts of coffeeexperiences, and yellow chairs and marble tables. In 2006, it again changed its dcor to

cane chairs to give the outlets a more causal feel. Caf Coffee Day has hence

constantly reinvented its look to keep up with the ever-changing wants of its consumers.

Coffee Day Comprises ofthe following Sub Brands

Coffee Day - Fresh & Ground

Caf Coffee Day

Coffee Day Vending

Coffee Day - Xpress

Coffee Day Exports

Coffee Day Perfect


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GENERIC COMPETITION

DIRECT COMPETITORS:

yBarista- This is the closest competitor to Caf Coffee Day in the Indian market. They target the

same class of upwardly mobile youth and young professionals. But Barista is often viewed as a

place to unwind after a hard days work or an ideal setting for some business meetings.

yCaf Mocha- This aims at providing a level of experience to the consumer which is hard to

imitate. Inspired by Morocco and Turkey, Mocha offers not just coffee but also sheeshasfrom

Egypt and gourmet desserts. Mocha calls itself a coffee shop for the soul.

yQwicky- Based mainly in Bangalore, Qwicky has a strong local hold in South

India.

INDIRECT COMPETITORS:

yEateries like McDonalds and Haldirams pose competition to CCD as they are likely

attractions for a consumer to be drawn to. A consumer can well contemplate why he should

spend around Rs. 45 on a coffee when he can get a burger and a coffee for the same price at

McDonalds.

yLocal tea joints and coffee shops like Caf Nescafe- They are smaller places but nevertheless

target the same set of consumers. Hence, CCD has to consider the threat a shop like this could

pose to it.

GLOBAL COMPETITORS:

yStarbucks is planning to enter India shortly and would be stiff competition for

even an established brand like CCD.

yCoffee bars in the market of the other country that Caf Coffee Day is

entering is also be a factor CCD will have to plan for before entering a market


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DISTRIBUTION STRATEGY

Today CCD has the largest network of cafes in India, with over 607 Company Owned Company

Operated cafes across 98 cities. But they do not follow a franchising strategy. The channel

partner has no involvement in the daily operational activities of the Caf in the retail space.

Neither would he have to invest in operational capital equipment or branding or marketing and

promotion of Caf Coffee Day.


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COMPETITIVE STRATEGIES OF CAF COFFEE DAY

Caf Coffee Day which follows a backward integration of the value chain procures coffee beans from its

base in Bangalore. This gives it a high sense of quality assurance and guaranteed supply across its outlets

as the same raw material is used in all outlets. But Barista is a combination of imported coffee beans and

beans from Tata coffee. This is a relative disadvantage because if there is a discrepancy in the quality or

supply, Barista would have to consider alternatives and probably look for another supplier.

Similarly, the food items available in Caf Coffee Day are obtained from local suppliers whereas

Baristas food is catered by the Taj caterers. Caf Coffee Day would hence, have a lower-cost advantage.

The brand strength ofCaf Coffee Day in comparison to Qwickys and Caf Nescafe is far greater and

its reach is on a countrywide scale

Caf Coffee Day has an advantage of top-of-mind recall for coffee-shop-goers in India, especially

because it set the caf ball rolling in the country.

It is a place where a lot of young people can meet, chat, have fun and let

their hair down, rather than sit and sip a cup of coffee in prim and proper serenity.

This is one of the main factors for why it is chosen over places like Barista or Mocha.

Caf Coffee Day uses special Caf Citizen Card for rewarding Caf Coffee Days

customers. It is a loyalty program to gain new customers and retain the existing ones.

The Caf Citizens Card entitles members to a 10% discount

on all food and beverage bills. The members also receive

surprise gifts, along with special offers and invitations from

Caf Coffee Day from time- to- time


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Section 2

Research methodology


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SAMPLING TECHNIQUE

The sampling technique applied was the stratified sampling technique. Target

population was first identified as students and working executives under the

assumption that these segments were among the most frequent users of the said

product

Thus two mutually exclusive strata were formed. Next from each strata at random,

respondents were identified and questionnaires were distributed so that data can be

collected. Also age group was one of the factors that would be considered for deciding

the basis of collection of information. Within stratified sampling, simple random sampling

was used as questionnaires were distributed at random to students and the workingexecutives.

One of the shortfalls of the above technique would be that other consumers such as

those constituting a family have been completely ignored as only students and working

people have been considered. Had the above segment been included, my study would

have been more comprehensive and could have given us another dimension to look

into.


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DATA COLLECTION

Data was collected in the form of personal interview i.e. using the concept of mall

intercept. This method was selected, as it was the fastest way to collect data. If more

time was available then the respondents could have been targeted directly in the Coffee

shop at the appropriate time. Thus the primary data was collected through Surveys,

whereas the source for secondary data was the various websites.

SURVEY AREA

Since focus was only those Respondents who have visited Cafe Coffee Day, survey

area would be concentrated near Cafe Coffee Day outlets.

Chandigarh

Sector 11

Sector 35

Sector 28

Sector 10

DATA PROCESSING AND ANALYSIS

The statistical tools which will be used are as follows:

a) Graph and Frequencies

b) Any other tool based on the type of data collected

The questionnaire consisted of both open ended and close ended questions. Somesample questions that were asked were:

a) Have you ever visited Cafe Coffee Day? (Y / N)

b) What do you like most about Cafe Coffee Day?


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1) Ambience 2) Service 3) Coffee 4) Any other


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SAMPLE SIZE

Took a pilot survey of 20 candidates and asked them, What is the deciding factor while

buying Coffee at a Coffee Bar. It was found that 75% of the sampled respondents in

the pilot test were affected by the price. Thus we took price as the parameter for

evaluating perception of Coffee bars.

P (estimated proportion of success) = 0.75

Q (estimated proportion of failure) = 0.25

The formula for estimating sample size in case of proportion is

N = (Z/E) 2 P *Q

Z (95% confidence level in standard error units) = 1.96

E (maximum allowance of error between true proportion and sample proportion)

= 0.10

N = (1.96/0.10)2 * .75 * .25 =72.03=72 (app.)

Therefore N = 72 (approx)

Thus ourSample Size will be 72 respondents


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PARTICIPANTS PROFILE

The consumer profile in India especially is one with varied cultural and traditional

influences. In terms of coffee, southern India is supposed to be one of the majorconsumers of same as compared to the Northern and other parts of India.

Filter coffee is the preferred drink in south while instant coffee in north. Price also plays

a major significant role in their purchase decision.

In this study we have looked at the consumer from the following aspects:

Their Monthly disposable incomeServices offered to the consumerQuality of the ProductDemographic segmentation of consumersPriceConsumer Perception towards such upcoming retail services in India is another

consideration.

INSTRUMENT

The instrument used here is questionnaire. A questionnaire is a research instrument

consisting of a series of questions and other prompts for the purpose of gathering

information from respondents. Although they are often designed for statistical analysis

of the responses, this is not always the case. The questionnaire was invented by SirFrancis Galton.

To check the validity of statement


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STATEMENT 1

To test which attribute plays the major role in drinking Coffee at Cafe Coffee Day

1. Price is the sole deciding factor while buying Coffee at Cafe Coffee Day

2. Price is not the sole deciding factor while buying Coffee at Cafe Coffee Day

STATEMENT 2

Testing the brand loyalty of the customers.

1. Students are not brand loyal to CAFE COFFEE DAY.

2.Students are brand loyal to CAFE COFFEE DAY.

Time spent at CAFE COFFEE DAY is directly related with amount spent


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Section 3

Results and analysis


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ANALYSIS

I. WHICH COFFEE BARS DO YOU VISIT V/S CATEGORY


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yFrom the table it was observed that 28% of the working respondents (i.e. 10 out of

36 working respondents) only visited Cafe Coffee Day.

yOn the other hand only 16% student respondents (6 out of 36 student respondents)

went only to Cafe Coffee Day.

yThis table also highlighted a very important characteristic of student respondents,

i.e., student population are more prone to switching Brands as compared to,

Working class who tend to be more Brand Loyal

I. HOW DID YOU COME TO KNOW ABOUT CAFE COFFEE DAY


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yMost of the respondents (31%) came to know about Cafe Coffee Day through

their peer group or word of mouth (13.8%), or because the Cafe was located in

their area i.e. their vicinity (16.6%)

yThis shows that the circle of friends plays an important role in influencing the

decision of an individual to visit a Coffee Bar.

yAt the same time it also helps if the bar is located in your area of residence or

work place

II. DOES COFFEE REMIND YOU OF CAFE COFFEE DAY


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III. HOW FREQUENTLY DO THEY VISIT CAFE COFFEE DAY V/S

CATEGORY

yThrough this question an attempt was made to analyse who are the frequent

visitors to the Bar and accordingly a strategy could be devised to target the

audience.

yThe statistics revealed that students visit the bar more often than the working

executives while the execs visit the bar only once a while.


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IV. HOW MUCH TIME DO YOU SPEND AT CAFE COFFEE DAY V/S ONE

TIME SPENDINGS AT CAFE COFFEE DAY

yThe objective of this question was to study whether the spending increased with

time.

y

It was observed that as the time spent at the bar increased, the tendency to spendincreased and this peaked for the category of people who spent around 1 2 hrs.

After this peak point the spending dropped.

yThus highlighting that people sitting for 1-2 hrs spend the most and after this

point their consumption level falls.

yThis proves our Hypothesis (Time spent at CAFE COFFEE DAY is directly

related with spending) false.

yThe maximum order that was booked was for the price range of Rs. 50 Rs. 150.


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V. CATEGORY V/S ONE TIME SPENDINGS AT CAFE COFFEE DAY

yThrough the table it was found that one time spending of students was more in the

range of Rs.0- Rs.150.

yWhereas working group are the ones who spent the most, their one time spending

ranged from Rs. 50 to Above Rs.250.

yThis also proves that working group is better source of income than student group,

one of the reasons being that working group has better purchasing power than

students.


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VI. PERCEPTION ABOUT CAFE COFFEE DAY AS A PERFECT COFFEE

BAR

yMajority of the respondents surveyed (about 62.5% ) felt that Cafe Coffee Day

was the perfect place to have Coffee.

yThis shows that Cafe Coffee Day has been successful to a considerable amount in

the minds of people. But they would need to work upon new strategies to keep

their position.

VII. RATINGS OF CAFE COFFEE DAY ON VARIOUS PARAMETERS

0

10

20

30

40

50

60

70

no yes

Series 1

Column1

Series 3


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yFrom the below fig, it can be seen that ambience is highly valued at Cafe Coffee

Day by the consumers.

yThis also proves our hypothesis 1 that price is not the deciding factor to visit

CAFE COFFEE DAY.

VIII. CATEGORY WISE RANKING OF CAFE COFFEE DAY


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yIt can be said after looking at fig below that working class ranked CAFE COFFEE

DAY as a no1 Coffee shop

yOn the other hand the students have ranked caf Coffee day as the no 1 brand and

Barista 2nd

yIt can also be verified from the above responses that working class are brand loyal

than the student class.

yThis also proves the hypothesis 2 Students are not brand loyal


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Section 4

SUGGESTIONS

SUGGESTIONS


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As per the results obtained during the course of the project I came across the following

set of recommendations:-

yThe most obvious fact that came out from the project was price was one of the factors

that served as a hindrance not only to the students, but also to the working executives.

Thus the most likely solution to this problem would be nothing but decreasing the price

but at the same time the profitability of the joint should not be affected.

yThe next possible step that the Coffee bar should take is to increase its awareness

among its target audience. This it can achieve by various means of advertising and that

too keeping in mind the specific categories of its consumers.

For e.g. it can target the students by sponsoring the cultural events that are organized in

various colleges.

yKeeping in mind that a student cannot spend as much as a working executive does,

special rates can be introduced for the students.

yFurther more the joint can also toy with the idea of floating special membership cards

for its patrons so that they would get certain rebates and this would result into increase

in the frequency of their visits as this policy will encourage them to visit the joint.

yNew varieties of product should be introduced on an experimental basis.

y Also to increase the reach of the consumers more and more outlets should be

established.

yThe Coffee bar can go in for competitive analysis to understand the competition and

realize its current standings.


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Section 5

CONCLUSION


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CONCLUSION

Coffee is a major commodity in developing country like India and liberalization of coffee market

has given rise to competition and to survive in this competitive market newer and newer

strategies are need to be formed to take the advantage of opportunities arising in this market.Simultaneously financing also plays an important role in developing coffee market and coffee

export. More awareness among people is needed. Marketing needs to be done among all classes

of society. These coffeehouses are extremely important, because they provide international

visitors to the hotel with a universal drink- coffee.

The last, and the most organized sector in the coffee caf industry, is the retail caf chain. Off

late, these chains have become extremely popular and are growing at an ever-increasing pace.

These retail chains have work with an organized structure of man, material and money. The work

on developing a recognized brand consistent to all their outlets, which customers can easily

relate to, wherever they go. They provide customers with a standardized level of service and

quality at each of their outlets.


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Chapter 6

REFERENCES


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Section 7

APPENDIX


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QUESTIONNAIRE

[Information provided by the respondent will be kept fully confidential and will be usedonly for the academic purpose.]


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