Marketing of Services Project

Café Coffee Day – A lot can happen over a cup of Coffee

Presented By:

Purnima Jindal A-03Nikita Khanna A-10Nikita Khurana A-23Neeraj Naman A-37

IntroductionRole of TechnologyMajor CompetitorsCustomer ExpectationsWays firm determines consumer expectations and perceptionsBundle of BenefitsService Quality dimensionsCustomer’s involvement in Service DeliveryService BlueprintService Encounters/Moment of truthPhysical EvidenceRole of ServicescapeAspects of Service Delivery in Service DeliveryMarketing Strategies (Pricing, Advertising etc)Service Delivery through IntermediariesService LeadershipSWOT AnalysisManaging PromisesFuture PlansConclusionRecommendations

Introduction

• Café Coffee Day is a part of India's largest coffee conglomerate,

Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), the first to

roll out the ‘coffee bar’ concept in India with its first café in Bangalore

• Coffee Day has a rich and abundant source of coffee. This coffee goes

all over the world to clients across the USA, Europe and Japan, making

it one of the top coffee exporters in the country

• Café Coffee Day is one of the most popular hangout places. The coffee

joint is very famous among youngsters. Coffee is one of the favorite

beverages and has become more appealing because of its variety.

• Café Coffee Day (CCD) pioneered the café concept in India in 1996 by

opening its first café at Brigade Road in Bangalore

• Café Coffee Day today has cafes in Vienna, Austria and Karachi. What’s more,

new cafes are planned across Middle East, Eastern Europe, Eurasia, Egypt

and South East Asia in the near future.

• In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave

the concept of ‘Power of Dialogue’. In accordance with this new brand

identity, CCD planned to give all its existing outlets a new look by the end of

2009

• This Café was opened as a Cyber Café (first of its kind) but later, with the

burst of cyber cafes it reverted to its core competency – Coffee !!

Role of Technology

• Technology plays a major role in Café Coffee Day because all

the work like billing, stock maintenance, inventory control, etc

is done with the help of computers.

• For making the coffee and tea they require machines, which

give an edge to the service provider over local players like the

small tea stall or coffee stall.

Major Competitors

• Barista Lavazza

• Costa Coffee

• Café Mocha

• Retail players like Reliance Retail and Shoppers Stop are

also retailing coffee with their multi-products offering

outlets like Reliance Timeout and Desi Café respectively

• Local Coffee Shops

Customer Expectations

• When a customer visits a coffee shop they expect a good experience.

• They want the service provider to provide them with the best services they have

42% people consider the quality of services offered by the coffee shop !!

• Customers grade Café Coffee Day good when it comes to ambience.• Customers grade Café Coffee Day good when it comes to pricing.• Customers grade Café Coffee Day very good when it comes to service offered.• Customers grade Café Coffee Day very good when it comes to quality of product.• Customers grade Café Coffee Day very good when it comes to Location.

Which simply proves that Café Coffee Day is one of the best hangout place for the youth who consider the factors mentioned above while selecting a Coffee Shop !!

Ways the firm determines and measures customer perceptions and expectations

CCD determines and measures customer expectations and perceptions with the help of:

•Online surveys•Questionnaires •On the spot feedback from customers.

Usually all the CCD outlets have a wall dedicated to the customers wherein they can write their experiences and service quality.

Bundle of BenefitsBenefits through pricing of products •Cafe Coffee Day is trying to target a market whose age range is between 15 and 60 years•The pricing is low and act as a deterrent to some customers who might regard it as an indicator of quality, while very high prices cannot be afforded by most of the youth•Prices are mostly inexpensive, and at par with their competitor

Benefits through PeopleThe people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite and Positive.

Benefits through product line

Typical Service Performance of Firms

From the above chart one can easily make out that the major competitor to Café Coffee Day is Barista. Café Coffee Day is facing huge competition from Barista as both of the service providers are targeting the youth segement

Service Quality Dimensions

• ReliabilityIt is the ability to perform the promised service dependably and accurately. Each and

every coffee shop (local one or International brand) promises best taste in terms of Coffee. These promises should me met accordingly in each and every aspect like quality & quantity.

• Assurance Assurance positioning would have to be backed up by evidence of the knowledge and

thoughtfulness of administrators, faculty and staff and their ability to inspire trust

and confidence • TangibilityIt talks about the furniture, menus, the interiors etc i.e. Physical facilities, equipment &

appearance of personnel

• Empathy Caring, individualized attention the firm provides to their

customers. The mission of Café Coffee Day is “To be the best Cafe chain by offering a world class coffee experience at affordable prices

Customer’s Involvement in Service Delivery

In Café Coffee Day service Customer involvement in the service delivery does not exist as everything is done by the staff. From taking the order till delivery of the order, whole process is taken care by the staff.

Service Blueprint

Service Encounters/Moments of Truth

• When the customer first enters the restaurant he can find AD posters on the front glass of the Cafe Coffee Day

• After entering into Cafe Coffee Day, customer is guided by an employee, where he is provided with a menu card for the order. Here customer can feel the ambience and the décor of the restaurant. After giving an order to the employee, employee passes the order to the front section of the kitchen. The employees in the front section would pass the order to back-end kitchen where the order is prepaid. Parallely, employee would update the billing machine. The prepaid order is then served to the customer

• After availing the services and the products of Cafe Coffee Day, customer would ask for Bill. Employee would then give the updated bill to the customer.

• Customer will pay the bill either through cash or through credit/debit card. After payment is done the database of Cafe Coffee Day gets updated.

• After payment of the bill the customer leaves the restaurant

Value of Blueprinting

Following are the uses or advantages of having a blueprint for a service:

• Providing a Platform for Innovationservice blueprinting provides a common platform for everyone – customers,

employees, and managers – to participate in the service innovation process. Blueprinting provides a common point of discussion for new service development or service improvement .

• Recognizing Roles and InterdependenciesThe process of blueprinting and the document itself generate insights into

various role and relational interdependencies throughout the entire organization. The customer’s actions and interactions are highlighted, revealing points at which he or she experiences quality

• Designing the Moments of TruthBlueprinting promotes a conscious decision on what consumers see and

which employees should be in contact at each moment of truth.

• Transferring and Storing Innovation KnowledgeService blueprints can be printed out or be stored electronically and made

available to everyone involved. Blueprints being developed can be posted on a collaborative website, providing all participating parties with access to an editable form of the document

• Clarifying Competitive PositioningService blueprinting allows firms to clarify competitive positioning by

facilitating the comparison of the desired service and actual service, or company and competitor processes

Physical Evidence

1. Décor & Architecture- Café Coffee Day had gone in for image change and revamping of interiors in the last quarter of 2001. Café interiors have been given a whole, new look.

2. Literature-The literature provided by Café Coffee Day is indicative of its youthful image. The menus, posters, pamphlets are all designed to attract young and young at heart.

3. Dress Code- The dress code is black dress with the logo of Café Coffee Day on one side. This is also is one of the evidences.

Roles Of Servicescape Play in this Industry

“The environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of

the service”

- Servicescape

Therefore it clearly proves that better services backed up by good servicescape is one of the most important aspect in terms of attracting customers, when it comes to Coffee Retail Industry or any fast food retailing business.

Aspects of Servicescape Influencing the Service

Delivery

From customer Point of view:-•Exterior and Interior Design•Ambience •Food(quality, quantity & variety )

From the service providers point of view:-• Logo, Colors, Images• Décor & Architecture

Marketing StrategiesPricingConsidering that Café Coffee Day knows its major customer lies in the bracket of 15- 29, it has tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from Rs.20 to Rs.200.

Promotion•Through television•Ticket sales•Association with movies•Sales Promotion

PlaceCafé Coffee Day looks to cater to their target market with strategically located outlets. Their outlets are generally located in High Street/ Family Entertainment Centers.

PeoplePeople at Café Coffee Day believe that “People are hired for what they know but fired for how they behave”. Motivation and personal skill are laid emphasize upon.

ProcessThe order process at Café Coffee Day is based on services, where the customer can read the menu and order. Whereas they have a flexible delivery process, where the customer can go directly and take what they have ordered for or the order is delivered on his table.

PositioningCustomers describe Café Coffee Day as the place they frequently visit most after “home and workplace/college”. It is a place where they meet friends and colleagues, in groups of 3 or more. The prices here are perceived to be reasonable and it is a place where customers come to rejuvenate themselves and be themselves rather than a place to be “seen at” vis a vis other cafes.

Service Delivery through Intermediaries

Service Leadership

• Combo Meals

• CCD Credit Cards

• Interactive Websites

SWOT Analysis

• STRENTGHS Products of extremely good quality and taste. Its a youth oriented brand , hence huge potential since 40 %

population is below 20 It produces/grows the coffee it serves hence reducing the cost. USP of brand is its considered a highly affordable brand. India's largest retail chain of cafes

• WEAKNESS Poor ambience and decor. Café Coffee Day outlet served prime space

for advertising and promotions. Many of the Café Coffee Day stores are incurring loses due to wrong

site selection.

• THREATS

Competition with other coffee cafes like Barista, Mochas. International Brands like Gloria Jeans, Coffee Bean & Tea Leaf

• OPPORTUNITIES

Coffee cafe industry is one of the fastest growing industries in Asia.

More people like to visit Café Coffee Day for informal meetings. Café Coffee Day has gone international, and is planning to

attract many new international markets, hence gaining international recognition

Managing Promises

• Highly rated Taste & Best Quality products.

• Value for money proposition.

• To provide a comfortable atmosphere and soothing ambience.

• To provide better services in terms of order processing and delivery time.

Future Plans

• To expand its international operations by opening cafes in rapidly growing coffee markets such as Central Europe, Asia Pacific and Africa.

• It has also embarked upon a Rs 400-crore domestic expansion plan and will open around 300 new cafes.

• It will have 2000 cafes by the end of 2014.

Conclusions• That Café Coffee day is planning to go international.

• The other major things regarding service marketing is that customers give top priority to the quality of the services / products and ambience.

• The major competitor of Café Coffee Day is undoubtedly Barista as both of the service providers cater to same market segment India as they find India new target market

Recommendations

• To improve the interiors and décor.

• To have more and more tie-ups.

• Only 50 % or less than 50 % people find Café Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Café Coffee Day need to do lot of homework in order to satisfy its customers.

• It should introduce a feedback form system in order to know about the customers satisfaction level.

THANK

YOU