Case-study on Cafe Coffee Day ( CCD)
Added on 2022-03-17
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Café Coffee Day
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SIMSR
PROJECT REPORT ON
EMPIRICAL STUDY ON CAFÉ COFFEE DAY, VIDYAVIHAR STATION
FROM CONSUMER AND RETAIL PERSPECTIVE
CARRIED OUT AT CAFÉ COFFEE DAY VIDYAVIHAR, MUMBAI
SUBMITTED BY
PALLAVI SRIVASTAVA
ROLL NO 55
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR
MASTER IN MANAGEMENT STUDIES
2011-2013
UNDER THE MENTORSHIP OF
PROF. RAMKISHEN
AND GUIDANCE OF
PROF. BRAJESH BOLIA
UNIVERSITY OF MUMBAI
K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
VIDYANAGAR, VIDYAVIHAR (E), MUMBAI - 400077
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SIMSR
PROJECT REPORT ON
EMPIRICAL STUDY ON CAFÉ COFFEE DAY, VIDYAVIHAR STATION
FROM CONSUMER AND RETAIL PERSPECTIVE
CARRIED OUT AT CAFÉ COFFEE DAY VIDYAVIHAR, MUMBAI
SUBMITTED BY
PALLAVI SRIVASTAVA
ROLL NO 55
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR
MASTER IN MANAGEMENT STUDIES
2011-2013
UNDER THE MENTORSHIP OF
PROF. RAMKISHEN
AND GUIDANCE OF
PROF. BRAJESH BOLIA
UNIVERSITY OF MUMBAI
K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
VIDYANAGAR, VIDYAVIHAR (E), MUMBAI - 400077
Café Coffee Day
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SIMSR
DECLARATION
Pallavi Srivastava, a student of MMS- Marketing, semester IV of University of Mumbai of 2011-
2013 batch at SIMSR do hereby declare that this report entitled “Empirical Study On Café
Coffee Day, Vidyavihar Station From Consumer And Retail Perspective” has been carried out
by me during this semester under the mentorship of Prof.Ramkishen and under the guidance of
Prof. Brajesh Bolia as per the norms prescribed by the University of Mumbai, and the same work
has not been copied from any source directly without acknowledging for the part/ section that
has been adopted from published/ non-published works.
I further declare that the information presented in this project is true and original to the best of
my knowledge.
Date:
Place: Mumbai
PALLAVI SRIVASTAVA
2 | P a g e
SIMSR
DECLARATION
Pallavi Srivastava, a student of MMS- Marketing, semester IV of University of Mumbai of 2011-
2013 batch at SIMSR do hereby declare that this report entitled “Empirical Study On Café
Coffee Day, Vidyavihar Station From Consumer And Retail Perspective” has been carried out
by me during this semester under the mentorship of Prof.Ramkishen and under the guidance of
Prof. Brajesh Bolia as per the norms prescribed by the University of Mumbai, and the same work
has not been copied from any source directly without acknowledging for the part/ section that
has been adopted from published/ non-published works.
I further declare that the information presented in this project is true and original to the best of
my knowledge.
Date:
Place: Mumbai
PALLAVI SRIVASTAVA
Café Coffee Day
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SIMSR
CERTIFICATE
I PROF. RAMKISHEN, hereby certify that Miss. Pallavi srivastava studying in second year
MMS- Marketing, batch 2011-2013 at SIMSR has completed the project “Empirical Study On
Café Coffee Day, Vidyavihar Station From Consumer And Retail Perspective” under my
guidance, as per the norms prescribed by the University of Mumbai, in the academic year 2011-
2013.
I further certify that the information presented in this project is true and original to the best of my
knowledge and belief.
Date:
Place: Mumbai
PROF. RAMKISHEN
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SIMSR
CERTIFICATE
I PROF. RAMKISHEN, hereby certify that Miss. Pallavi srivastava studying in second year
MMS- Marketing, batch 2011-2013 at SIMSR has completed the project “Empirical Study On
Café Coffee Day, Vidyavihar Station From Consumer And Retail Perspective” under my
guidance, as per the norms prescribed by the University of Mumbai, in the academic year 2011-
2013.
I further certify that the information presented in this project is true and original to the best of my
knowledge and belief.
Date:
Place: Mumbai
PROF. RAMKISHEN
Café Coffee Day
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SIMSR
CERTIFICATE
I PROF. BRAJESH BOLIA, hereby certify that Miss. Pallavi srivastava studying in second year
MMS- Marketing, batch 2011-2013 at SIMSR has completed the project “Empirical Study On
Café Coffee Day, Vidyavihar Station From Consumer And Retail Perspective” under my
guidance, as per the norms prescribed by the University of Mumbai, in the academic year 2011-
2013.
I further certify that the information presented in this project is true and original to the best of my
knowledge and belief.
Date:
Place: Mumbai
PROF. BRAJESH BOLIA
4 | P a g e
SIMSR
CERTIFICATE
I PROF. BRAJESH BOLIA, hereby certify that Miss. Pallavi srivastava studying in second year
MMS- Marketing, batch 2011-2013 at SIMSR has completed the project “Empirical Study On
Café Coffee Day, Vidyavihar Station From Consumer And Retail Perspective” under my
guidance, as per the norms prescribed by the University of Mumbai, in the academic year 2011-
2013.
I further certify that the information presented in this project is true and original to the best of my
knowledge and belief.
Date:
Place: Mumbai
PROF. BRAJESH BOLIA
Café Coffee Day
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SIMSR
ACKNOWLEDGEMENT
It is with a sense of gratitude, I acknowledge the efforts of entire hosts of well
wishers who have in some way or other contributed in their own special ways to
the success and completion of this project.
I would like to thank my Project Mentor at SIMSR Prof. Ramkishen who has been
very helpful in the completion of this project.
I sincerely express my thanks to my Project Guide Prof. Brajesh Bolia for his
valuable guidance, intellectual suggestions and constant help in a lot of various
ways during project course.
Also, I express my sincere thanks Prof. Ralston for sharing his experience with
Café Coffee Day as an employee.
5 | P a g e
SIMSR
ACKNOWLEDGEMENT
It is with a sense of gratitude, I acknowledge the efforts of entire hosts of well
wishers who have in some way or other contributed in their own special ways to
the success and completion of this project.
I would like to thank my Project Mentor at SIMSR Prof. Ramkishen who has been
very helpful in the completion of this project.
I sincerely express my thanks to my Project Guide Prof. Brajesh Bolia for his
valuable guidance, intellectual suggestions and constant help in a lot of various
ways during project course.
Also, I express my sincere thanks Prof. Ralston for sharing his experience with
Café Coffee Day as an employee.
Café Coffee Day
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SIMSR
Table of Contents
History ................................................................................................................... 7
Positioning ............................................................................................................. 7
Advertising, Sales Promotion and Segmentation Strategy ..................................... 8
Generic Competition ............................................................................................ 10
Introduction ......................................................................................................... 11
Types of Location ................................................................................................. 11
Catchment area ................................................................................................... 13
Pricing .................................................................................................................. 13
Café moment ....................................................................................................... 14
Structure .............................................................................................................. 15
Expansion Strategy .............................................................................................. 16
Vidyavihar, CCD (Meeting Point) .......................................................................... 19
Store Layout......................................................................................................... 19
BCG matrix ........................................................................................................... 20
Customer Survey.................................................................................................. 21
Detail Analysis of the Customer Survey ................................................................ 22
Recommendations to improve the Vidyavihar, CCD ............................................ 32
References ........................................................................................................... 34
Appendix.............................................................................................................. 35
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SIMSR
Table of Contents
History ................................................................................................................... 7
Positioning ............................................................................................................. 7
Advertising, Sales Promotion and Segmentation Strategy ..................................... 8
Generic Competition ............................................................................................ 10
Introduction ......................................................................................................... 11
Types of Location ................................................................................................. 11
Catchment area ................................................................................................... 13
Pricing .................................................................................................................. 13
Café moment ....................................................................................................... 14
Structure .............................................................................................................. 15
Expansion Strategy .............................................................................................. 16
Vidyavihar, CCD (Meeting Point) .......................................................................... 19
Store Layout......................................................................................................... 19
BCG matrix ........................................................................................................... 20
Customer Survey.................................................................................................. 21
Detail Analysis of the Customer Survey ................................................................ 22
Recommendations to improve the Vidyavihar, CCD ............................................ 32
References ........................................................................................................... 34
Appendix.............................................................................................................. 35
Café Coffee Day
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SIMSR
History
About Café Coffee Day
Café Coffee Day is a division of India‟s largest coffee conglomerate, Amalgamated Bean Coffee
Trading Company Ltd. (ABCTCL), popularly known as Coffee Day. This is a Rs. 300 crore ISO
9002 certified company. Its chief customers are in USA, Europe & Japan. Based in Chickmaglur,
home of some of the best Indian Coffees, Coffee Day has its business spanning the entire gamut
of coffee consumption in India. Its different divisions include:
Coffee Day Fresh n Ground (354 Coffee bean and powder retail outlets)
Coffee Day Xpress (341 Coffee Day Kiosk)
Coffee Day Take away (7000 Vending Machines)
Coffee Day Exports
Café Coffee Day
Coffee Day Perfect (FMCG Packaged Coffee) division
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at
Brigade Road in Bangalore. Till about late 1990‟s coffee drinking in India was restricted to the
intellectual, the South Indian traditionalist and the five start coffee shop visitor. As the pure (as
opposed to instant coffee) coffee café culture in neighboring international markets grew, the need
for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen.
Recognizing the potential that lay ahead on the horizon, Café Coffee Day embarked on a
dynamic journey to become a large organized retail café chain with a distinct brand identity of its
own.
Positioning
Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India. At a time
when the country was growing well economically and young India enjoyed higher spending
power, CCD as it‟s 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.
7 | P a g e
SIMSR
History
About Café Coffee Day
Café Coffee Day is a division of India‟s largest coffee conglomerate, Amalgamated Bean Coffee
Trading Company Ltd. (ABCTCL), popularly known as Coffee Day. This is a Rs. 300 crore ISO
9002 certified company. Its chief customers are in USA, Europe & Japan. Based in Chickmaglur,
home of some of the best Indian Coffees, Coffee Day has its business spanning the entire gamut
of coffee consumption in India. Its different divisions include:
Coffee Day Fresh n Ground (354 Coffee bean and powder retail outlets)
Coffee Day Xpress (341 Coffee Day Kiosk)
Coffee Day Take away (7000 Vending Machines)
Coffee Day Exports
Café Coffee Day
Coffee Day Perfect (FMCG Packaged Coffee) division
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at
Brigade Road in Bangalore. Till about late 1990‟s coffee drinking in India was restricted to the
intellectual, the South Indian traditionalist and the five start coffee shop visitor. As the pure (as
opposed to instant coffee) coffee café culture in neighboring international markets grew, the need
for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen.
Recognizing the potential that lay ahead on the horizon, Café Coffee Day embarked on a
dynamic journey to become a large organized retail café chain with a distinct brand identity of its
own.
Positioning
Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India. At a time
when the country was growing well economically and young India enjoyed higher spending
power, CCD as it‟s 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.
Café Coffee Day
8 | P a g e
SIMSR
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, Café Coffee Day underwent a rebranding exercise through a change in its logo. The
earlier logo was a simple red square with 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 sub-
brands to represent the various activities. The logo then incorporated red, white and green colors,
a larger font emphasis on the word „Café‟. 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 color
green endorsed the long heritage of CCD in growing coffee.
Advertising, Sales Promotion and Segmentation Strategy
Café 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:
2003- Levi‟s launched a new range of Low Rise jeans through a campaign called „6”
below‟. CCD displayed POPs of Levi‟s in all its outlets during the campaign
2004- The launch of Liril Orange soap by HLL was conducted in Café Coffee Day
2004- TVS Scooty tied up with CCD for events in the coffee bars and at malls on
Valentine‟s Day in February
2004- CCD was the official ground partner for the Channel V Get Gorgeous contest
IN-FILM ADVERTISEMENTS:
Some Telugu and Tamil films with prominent brand placement
8 | P a g e
SIMSR
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, Café Coffee Day underwent a rebranding exercise through a change in its logo. The
earlier logo was a simple red square with 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 sub-
brands to represent the various activities. The logo then incorporated red, white and green colors,
a larger font emphasis on the word „Café‟. 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 color
green endorsed the long heritage of CCD in growing coffee.
Advertising, Sales Promotion and Segmentation Strategy
Café 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:
2003- Levi‟s launched a new range of Low Rise jeans through a campaign called „6”
below‟. CCD displayed POPs of Levi‟s in all its outlets during the campaign
2004- The launch of Liril Orange soap by HLL was conducted in Café Coffee Day
2004- TVS Scooty tied up with CCD for events in the coffee bars and at malls on
Valentine‟s Day in February
2004- CCD was the official ground partner for the Channel V Get Gorgeous contest
IN-FILM ADVERTISEMENTS:
Some Telugu and Tamil films with prominent brand placement
End of preview
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