Empirical Study: CCD Vidyavihar Consumer & Retail Project Report

This project report presents an empirical study on Café Coffee Day (CCD) at Vidyavihar Station in Mumbai, conducted by a student as part of their Master in Management Studies (MMS) program at K.J. Somaiya Institute of Management Studies & Research, University of Mumbai. The report examines CCD from both consumer and retail perspectives. It includes an overview of CCD's history, positioning, advertising strategies, and competitive landscape. The study analyzes the Vidyavihar outlet's structure, layout, and expansion strategies, incorporating a BCG matrix analysis. A significant portion of the report is dedicated to a customer survey, providing detailed analysis and recommendations for improving the Vidyavihar CCD. The project aims to understand the outlet's current model, assess its feasibility, and suggest promotional strategies based on consumer feedback. The report also includes acknowledgements, a table of contents, and references.

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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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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

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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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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

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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.

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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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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.

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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

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Hindi films- It started with Bas Yun Hi and then conscious advertisement decisions were
made for Khakee, Main Hoon Na, Kyun Ho Gaya Na and Mujhse Shaadi Karoge
Youtube ads- Sit down for love song
All these movies were targeted at young movie-goers, teenagers and people looking for light-
hearted entertainment. These are much the same kind of people who are likely to visit Café
Coffee Day .
SALES PROMOTIONS:
Merchandising – Every CCD stocks merchandise ranging from coffee mugs, T-shirts,
caps, bags, coffee filters, mints, different flavors of coffee powders, tea and cream,
wafers and biscuits. It also merchandises promotional materials for other brands it
associates with
Café Beat – An in-house magazine which gives the entire low-down on what‟s 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% CCD goers read Café Beat and some carry it back with
them
CCD has now tied up with WorldSpace and Microsense to provide satellite connectivity
in its outlets
SEGMENTATION STRATEGY:
Café 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 is “young 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 survey. The most reputed media house in the country (The Economic Times) has brought
the voice of the people! They say Cafe coffee day leads as far as „trust‟ is concerned. Cafe
Coffee Day is much loved and trusted. Cafe Coffee Day has been ranked No.2 in Brand Equity,

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India's most trusted list of food services brands. Cafe Coffee is at position 29 in so far as service
brands in general. Cafe Coffee Day is up four positions since 2010.
Generic Competition
Direct Competitors:
Barista – This is the closest competitor to Café 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 day‟s work or an ideal setting for some
business meetings.
Café 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
sheeshas from Egypt and gourmet desserts. Mocha calls itself „a coffee shop for the soul‟
Indirect Competitors:
Eateries like McDonald‟s 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
McDonald‟s
Local tea joints and coffee shops like Café 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:
Starbucks would pose a stiff competition for even an established brand like CCD

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Introduction
This project is to study the feasibility of CCD, Vidyavihar from both consumer and retail
perspective. There are total all 3 CCDs in the vicinity which includes – 2 CCDs in Ghatkopar
East and one Shop-in-Shop CCD in Shoppers Stop, Chembur West. The study includes
comparison of the Vidyavihar CCD with that of the other 3 CCDs.
The objectives of the project are:
i. To understand the current model used by CCD at Vidyavihar Station
ii. Understand the customer and retail perspective of the outlet
iii. Feasibility of the outlet in terms of location based on consumer survey
iv. Suggest promotional strategies to improve the footfall based on consumer survey
Types of Location
The CCDs can be divided into 6 formats depending upon the area, place and types of customer it
will serve.
These 6 formats are as follows:
1. Stand Alone:
This type of location is basically any stand-alone building that can be tucked away in a
neighborhood location or right off a busy street. Depending on the landlord, there are
generally no restrictions on how a retailer should operate his business. It will probably
have an ample parking and the cost per square foot will be reasonable.
Unlike the attached retail locations where customers may wander in because they were
shopping nearby, the retailer of a free standing location has to work at marketing to get
the customer inside.
2. Shop-in-Shop

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The “shop in shop” retail concept is where a brand owner or retailer takes space in
another retailer‟s store and fits it out to provide selling space dedicated to that secondary
company‟s products.
Similarly, CCD has shop in shop format in Crossword to give the experience of a book
café. This makes it a place where book lovers can go and have a sip of coffee in a
peaceful and cozy ambience while reading their favorite genre of books.
CCD is also there inside few Shopper‟s stop to change the shopping experience
altogether. While the girls shop, guys can chill inside CCD and read Café Chronicle.
3. Corporate Format
In this format CCDs are open inside a corporate campus or corporate offices. This is a
very popular format as the corporate people can have small coffee meetings in CCD. This
type of format is quite popular in metro cities and gaining popularity in tier 2 and tier 3
cities as well.
4. Travel Hubs
The CCDs are open in travel hubs to make it convenient place for travelers to hang out
while they wait for their transportation. These types of formats are usually seen on
Airports, Petrol Pumps, Bus stands etc.
The target group is travelers and tourists. And thus takeaway format also works here.
5. Highway Café
Here the CCDs are placed on highway to attract the traffic on highway and people going
through highways.
Here the logo and the coffee fragrance plays the major role of attracting the customer.
People halt to take a sip of coffee to remain awake while driving through a long route.
6. Airport Café