Cafe coffee day

Cafe coffee day

1. Presented by : Manohara H M PALB 4090 Dept. of Agricultural Economics

2. What is Café Coffee Day? ?

3. India's largest coffee conglomerate, owned by Amalgamated Bean Coffee Trading Company Ltd Pioneer of the café culture and the first to launch the ‘coffee bar’ concept in India Network strength: Over 1530 cafés in 200 cities/towns across India and growing Average Footfalls: 200 per café per day

4. Founder & Director : V. Siddhartha Headquarters : Vittal Mallya Road, Bengaluru Area served : India, Austria, Czech Republic, Dubai & Karachi . Revenue : US$ 450 million

5. Asia's second-largest network of coffee estates (10,500 acres) and 11,000 small growers, 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 one of the top coffee exporters in the country.

6. Café Coffee Day Network of 1530 cafes across India 185 cafes 64 cafes 172 cafes 191 cafes

7. Average dwell time at café: 45 minutes Meeting place for 15-35 year olds The place they frequent most after “home and workplace/college” A place where they meet friends and colleagues , in groups of 3 or more

8. Who hangs out at Coffee Day? Research shows that while a part of customers come to cafe for products, a substantial amount of customers come to “hang out” with friends. The café is also the venue for “ business meetings” (23%), “ celebrating special occasions” (20%) or just plain “hang out” (57%).

9. Key Target Audience Major CCD customers falls within the age group of 20 to 30 which accounts for 57% of the overall percentage. The group comprises of mainly college going students and young working professionals

10. To be the best Cafe chain by offering a world class coffee experience at affordable prices. MISSION

11. Café Coffee Day was started as a retail restaurant arm of ABCTC in 1996 .  The first CCD outlet was set up on July 11, 1996, at Brigade Road, Bangalore, Karnataka. It rapidly expanded across various cities in India adding more stores with more than 1000 cafés open across the nation by 2011.

12. Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets Coffee Day Square, a high level coffee bar in Bangalore Coffee Day Xpress, which runs 900 plus Coffee Day kiosks Coffee Day Beverages, which runs over 14,000 vending machines Coffee Day Exports, its exporting wing Coffee Day Perfect, its fast-moving consumer goods packaged coffee division Coffee Day B2C Plant, Coffee vending machine manufacturing division SUBSIDIARIES

13. FOOD COOKIES SANDWICHES BURGERS PUFFS SAMOSA DOUGHNUTS PASTRIES CAKES BEVERAGES HOT COFFEE LEMONADES COLD COFFEE CHOCOHOLICAS HOT TEAS COLD TEAS FRAPPE PRODUCTS

14. Café Coffee Day’s Expansion Strategies ABCTCL identified China, Middle East, Far East Asia as the initial markets for its international foray. Domestically CCD had 147 cafes in 37 cities in 2003. As part of its expansion plan the company took major initiatives in setting up vending machines, kiosks, branded filter coffee and marketing tie ups. Also it planned to increase smaller format cafes – café Xpress

15. Beginning Only 14% of coffee produced annually was consumed within the country, while the remainder was exported . The first wave was set in motion mainly due to the efforts of coffee cess committee in 1936. coffee board managed a chain of 72 coffee houses and attempted to introduce the coffee habit in the predominantly tea drinking north of the country . The second wave began when ABCTCL launched its first coffee day outlet in November 1996 in Bangalore.

16. In mid 1990s, when internet started picking up in India, coffee shops were part of either five star hotels or darshani variety. Having found a business opportunity in cyber craze, ABCTCL started experimenting with selling coffee in internet parlors . Since 1996, with increase in household internet connections, revenue from cyber cafes were decreased. ABCTCL owned coffee estates In Karnataka and was already selling a filter coffee brand “Coffee Day”.

17. Coffee day designed its outlets to appeal to young and painting the store with vibrant colours. Coffee day’s most distinct aspect was its exclusive relationship with the plantation division of its parent company, ABCTCL. Its coffee products were about 10 to 20% cheaper than similar products of other coffee chains in the country.

18. COMPETITION Barista, which was started in 2000, opened 72 outlets within two years. It took CCD five years to open 18 outlets with 10 in Bangalore alone. For slow expansion strategy, CCD director Naresh Malhotra stated, “ we are a conservative south Indian form and believe in growing cautiously ”.

19. REJUVENATION Under Siddhartha’s leadership, coffee chain started to expand its business into new regions, company undertook a rejuvenation process , through a new look and logo to give a contemporary look. Also base line was changed from ‘The place to be’ to ‘A lot can happen over a coffee’.

20. RESEARCH FINDING According to the research conducted by the company, 700 coffee day customers participated in the nationwide, it was observed that hot coffee and snacks were the popular products amongst the respondents. Research showed that 16% of respondents visited the café daily and 62% visited in the evenings.

21. BRANDING STRATEGIES Café day launched a customer loyalty programme called ‘café citizen programme’ at all its cafes across the country. Every customer who billed a minimum of Rs.100 on a single bill who would be eligible for a membership and would given a 10% discount on all the food and beverages for a year. Customers whose billing amount reched Rs. 2000, Rs.5000 were entitled to receive surprise gifts.

22. To attract young customers, coffee day introduced touch screen digital jukebox in January 2002. According to the company, the jukebox allowed customers to listen to songs of their choice.

23. By the end of 2002, coffee day grow to 50 outlets and had a turnover of RS.10 crores . Further coffee day planned to expand the chain to 200 outlets by march 2004 and allocated Rs.90 crore for expansion. According to the company, all the outlets would be company owned and financing would be provided by the parent company.

24. To further increase its reach, ABCTCL started new ventures like coffee day Xpress, coffee day take away, coffee day fresh n ground. The customers included were people who visited shopping malls, movie theatres, offices. The Xpress retail food kiosks were located at the premises of corporates like Ericsson, Airtel, IBM and petrol pumps run by HPCL, BPCL, IOC.

25. For the expansion of coffee day Xpress, company chose to expand through franchising. As per company’s franchising model, a franchise was required to invest Rs.2.5 lakh to Rs.3.5 lakhs refundable deposit which would earn him 4% interest . Break even - Rs.1200 per day

26. SWOT ANALYSIS STRENGTHS Excellent brand name and brand visibility Huge young crowd as target group Excellent ambience and service It grows the coffee it serve THREATS Entry of foreign players like Starbucks Dependent on Govt. commodity rates Large unorganized market. WEAKNESSES Crowd management Lacks strength to maintain brand loyalty. Follow the competitor strategy OPPORTUNITIES Introduce cheaper versions of coffee Tap the smaller towns/cities Tie ups with other companies for promotion

27. SUCCESSFUL INNOVATIVE BRANDING STRATEGIES

28. Successful Brand Associations Tupperware Campaign Objectives To promote their water bottles and to create a platform for their distributors to talk about Tupperware products Elements A creative Tupperware branded stand with a water bottle holder and leaflets for communication were kept on the tables & counters

29. Nokia Campaign Objective To demonstrate the newly launched Nokia 800 series. Elements Creating a demo zone inside the cafe. Promoter access in the cafe to interact with customers - giving demo.

30. Samsung Campaign Objective To create an experience oriented campaign for Samsung Tab-II. Elements Creating a demo zone inside the cafe. Promoter access in the cafe to interact with customers- giving demo-collecting leads.

31. Vodafone Campaign Objective To promote Vodafone Happy Hours & give 20% discount to all the Vodafone customers visiting the café between 2pm to 4pm. Elements Poster, Tent Card and Bill Counter Display

32. Oh My God Campaign Objective Promotion of OMG Movie across cafes in India Elements Standee, Side Menu Card & Poster on the notice board

33. A lot can happen over coffee… Thank You..!!