Presentation Ingredients Introduction About CCD Mission Owner History Group Companies Marketing Mix Consumer Profile Distribution Channel Influence on Mind Financial Affairs Objects of an IPO Issue Issue Detail Competitors SWOT Analysis Interesting Facts Awards
Introduction of coffee market The coffee market in India has been growing due to the demand for Ready to Drink coffee and has become a part of an individual’s daily consumption basket. Well-established coffee shop chains, such as Cafe Coffee Day (CCD) and Barista, enhanced their pan in India. Indian Coffee Chains market is quite mature which is evident from the fact that Café Coffee Day alone maintains more than 1556 Café’s in 209 cities in India. “Running café is a hospitality business and one needs to create the right ambiance and experience and back it up with strong logistics”
Introduction Shop for the young & young at heart First opened at – Brigade road, Bangalore in 1996 Over 1556 cafes spread across 209 cities in India Shares strong relationship with its target audience
About CCD Parent Company : Coffee Day Global Ltd. Category : Coffee Joints. Sector : Food Products. Slogan : A lot can happen over Coffee…. Target Group : Youth in the Middle and Higher Income Groups. Positioning : India’s Favorite Coffee Shop for the Young and Young at Heart.
CCD- A lot can happen over coffee Wider range of Food & Beverages addressing meal needs as well. Targeting a more mature and affluent group of customers. An expressive, explorative conducive space to network with 42 outlets spread across seven cities.
Mission of CCD “To be the best café chain in the country by offering world class coffee experience at affordable prices”.
Mission for Coffee day export
Owner Amalgamated Bean Coffee Trading Company (ABCTCL) now known as Coffee Day Global Ltd. V.G.Siddhartha (Chairman)
History Coffee day Global Ltd. is a Chikmagalur based company which grows coffee in its own estates of 1, 200 acres. It is the largest producer of Arabica beans in Asia exporting to various countries including USA, Europe and Japan.
Café Coffee Day was started as a retail restaurant arm of CGL 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.
In 2010, it was announced that a conglomerate led by Kohlberg Kravis Roberts would invest 1,000 crore (USD 200 million) in Coffee Day Resorts, owned by the company. The same year, the logo was changed to the current logo, which the company stated was to showcase the chain as a place to talk. This was done with major changes in the layout of the stores, including the addition of lounges and a total change of the interiors.
Group companies Company's retail outlet includes: 1. Coffee day beverages 2. Coffee day exports 3. Coffee day hotels & Resorts 4. Fresh & Ground outlet - 424 outlets 5. Coffee Day Xpress kiosks - 590 kiosks Vending Machines - 28,777
7 P’s of Marketing
Product Offers wide range of products for Indian coffee & snacks lovers Café Coffee Day Offers products like Coffee, Tea, Pastries, Frappuccino Beverages, Smoothies. The best selling item in summer is frappe – Coffee & ice cream blended together In winter it is cappuccino.
Price Considering 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.45 to Rs 80. From the time it first started its operations, there has been only minor changes in the pricing policy of Café Coffee Day.
Place The strategy CCD has adapted is to place a cafe in every possible location where some business can be generated. This is a prime factor in determining the success of a retail chain. Café Coffee Day looks to cater to their target market with strategically located outlets. Their outlets are generally located in High Street/ Family Entertainment Centers, gas stations, near Colleges etc.
Promotion Television: Café Coffee Day held a contest around a very popular programme on Zee English called Friends. They have tied up with Channel [V]‘s Get Gorgeous contest. Sales Promotion: CCD uses special ‘Café Citizen Card’ for rewarding Café Coffee Day’s customers. Association with movies: CCD can be seen in movies like “ Khakhee ” and “Mai Hoon Na”
Process The ordering and delivery process in CCD was earlier based on self- service. But now in most its coffee shops the waiter comes and takes away the order and delivers the order on table.
People People 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. Their employees are like friend to the customer but at the same time they know about the international standards of hygiene and cleanliness and personal grooming.
Physical Evidence Logo , image, brand: CCD has used bright red and green colors in its logo. RED stands for leadership , vitality, passion for coffee. The GREEN stroke harks back the coffee plantations that they own. Café is noticeably larger in the logo to denote that Café Coffee Day pioneered the café concept in India way back in 1996.The font looks as though the letters have congealed out of a liquid. Architecture and Decor: Largely wood and granite based interior with young color of today, like lime green, yellow, orange, and purple predominate.
Consumer Profile 52% 48% 21% 24% 35%
Distribution Channel
Influence on Mind
Financial Affairs Recently, CCD Launched its Initial Public Offering (IPO) of Rs.1150 crores Price band was Rs.316-328. V.G. Siddhartha is the Promoter of the company. Promoter currently hold 63,945,904 Equity Shares, equivalent to 54.78% of the pre-Issue issued. Promoter will continue to hold a majority of the post-Issue paid-up share capital of the Company.
Contd …. The operator of Cafe Coffee Day outlets plans to use Rs 632 crore to repay loans and the rest to open stores, manufacture vending machines and set up roasting facilities, according to the document. "The company plans to open over 215 Cafe Coffee Day outlets and 105 kiosks in the next two financial years," it said.
Objects of the Issue Company proposes to utilise the net proceeds towards funding the following objects: A. Financing our coffee businesses 1. Setting-up of new Cafe Network outlets and Coffee Day Xpress kiosks; 2. Manufacturing and assembling of vending machines; 3. Refurbishment of existing Cafe Network outlets and vending machines; and 4. Setting-up of a new coffee roasting plant facility, along with integrated coffee packing facility and tea packing facility.
Contd … B. Repayment or prepayment of loans of the Company and Subsidiaries; and C. General corporate purposes
Issue Detail »» Issue Open : Oct 14, 2015 - Oct 16, 2015 »» Issue Type : 100% Book Built Issue IPO »» Issue Size : Rs. 1,150.00 Crore »» Face Value : Rs. 10 Per Equity Share »» Issue Price : Rs. 316 - Rs. 328 Per Equity Share »» Market Lot : 45 Shares »» Minimum Order Quantity : 45 Shares »» Listing At : BSE, NSE
Competitors
SWOT Analysis
Some Interesting Facts All-Day Refresher, most selling product of CCD whose selling cost is Rs.100 has a prime cost of just Rs.20 & rest all is profit to CCD. CCD does not use sugar as raw material in any of its preparations but uses milk cream & Sugar free as raw materials. Ice Creams & others eatables are out-sourced from Amul & local vendors of reputed brands. It is unique in its distribution way where coffee beans are cultivated in its farms at Chikmagalur .
Contd … The company is known for being vertical integrated to cut costs: from owning the plantations, growing the coffee, making the coffee machines to making the furniture for the outlets. CCD recognized as a role model co at a prestigious shell- Hellen Keller Award 2013 Ref:- hellen keller file word
Awards Cafe Coffee day was named "most popular hangout joint amongst youth" at the 3rd Global Youth Marketing Forum in 2011. The Indian Hospitality Excellence Awards also named it "India's most popular coffee joint" in 2011 According to the Brand Trust Report 2012, Cafe Coffee Day was ranked 125th among India's most trusted brands and subsequently, according to the Brand Trust Report 2013, Cafe Coffee Day was ranked 210th among India's most trusted brands.