Café COFFEE DAY
By: Anchal Goel
Introduction •
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Café Coffee Day (CCD) pioneered the café concept in India in 1996 Initially known as Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) Is a Rs. 750 crore, ISO 9002 certified company It is one of India’s leading coffee exporters with clients across USA, Europe & Japan.
• Various divisions
are:
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Coffee Day Fresh n Ground (which owns 400 Coffee bean and powder retail outlets)
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Coffee Day Xpress (which owns 895 Coffee Day Kiosk),
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Coffee Day Take away (which owns 12000 Vending Machines)
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Coffee Day Exports
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Coffee Day Perfect (FMCG Packaged Coffee) division.
Key features •
First Café was opened at Brigade Road , Bangalore as a Cyber Café (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency…. Coffee.
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Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket
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Each café, depending upon its size attracts between 100 to 300 customers daily.
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It is a place where customers come to rejuvenate themselves and be themselves. Therefore, is a relaxed and fun “hangout” for the emerging urban youth
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The company operates its cafes in various formats, such as music, book, highway, lounge, garden, and cyber cafes.
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USP of the Brand: Affordable Price
Products •
Product Mix constitutes a • wide range of products that appeal primarily to Indian coffee and snack lovers.
Best selling item in summer is frappe, which is coffee and ice cream blended together. And in winter its Cappuccino.
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To capture the Indian taste• along with classic coffee, most of the eatables have been adopted to meet the Indian taste buds like samosa, biryani, masala sandwich, tikka sandwich etc.
Their Merchandising includes Caps, T-Shirts, Bags, mugs, coffee filters, Coffee Powders, Coffee Mints, Pens etc.
Product Mix
Serving Size • The serving size of a product is a measure, not only of quantity, but also of value for money. The average serving size for Café Coffee Day’s main product categories are:
Price •
Café Coffee Day major customer lies in the bracket of 15- 29, So it has tried to derive a policy whereby it can satisfy all its customers.
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The price for a cup of coffee ranges from Rs.17 to Rs.54.
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The price of the deserts ranges from Rs.25 to Rs. 500.
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Plac e Café Coffee Day is focusing High Street/ Family Entertainment Centers like malls, main markets. Also in Hospitals(AIMS, Apollo), near corporate offices(TDI center), complexes, institutes etc.
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This endorses their brand image of a café that appeals to coffee lovers of all ages.
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Tied up with Channel [V]'s Get Gorgeous contest. The reason being that a lot of their young consumers are interested in careers
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The 6” Below the Naval Jeans campaign, the Sykes Reversibles (Ulta Pulta) campaign, the Levi’s 501 campaign, the TLTT (The Levi’s Torture Test), the ‘Hello Gorgeous’ campaign et all are some of the successful in café activations designed and executed for Levi’s.
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Movie Tie-ups like mughal-e-azam, mujhse shadi karogi , Lucky, Kyu ho gaya na, etc..
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Provide various merchandisers, promotion done also through posters, t-shirts, offers on magazines, pamphlets, radio, SMS etc.
Promotion
Sales Promotion •
Café Coffee Day uses special ‘Café Citizen Card’ for rewarding Café Coffee Day’s customers. It is a loyalty program to gain new customers and retain the existing ones.
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The Café Citizens Card entitles members to a 10% discount on all food and beverage bills. The members also receive surprise gifts, along with special offers and invitations from Café Coffee Day from time- to- time.
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Café have owned a magazine called as ‘Café Beat’, which is published monthly at their Bangalore head office and distributed throughout the branches.
Process • The order process at Café Coffee Day is based on self-service, where the customer goes to the counter to place his order. • Whereas they have a flexible delivery process, where they wait for some time for the customer to pick up the order but if the customer takes too long then the order is delivered on his table. • Service Recovery: Jay customers, irate customers, unsatisfied customers
Distribution of stock
• The distribution of coffee beans start from their roasting plant at chikmagalur. • The coffee beans are sent to the main offices of north and south India on monthly basis. • The outlets contact the Head Distributors on weekly basis. • As far as other eatables are concerned, the inventory is checked on daily basis and orders are placed according to the requirement. • Café Coffee Day uses its own store vehicle (small van) for transportation needs. • Various deserts and products like samosa, pizza, sandwiches etc are being bought from the different caterers like Nirula’s.
Physical Evidence • Largely wood and granite based interiors, there is more of steel and lots more colour now. • The young colours of today, lime green, yellow, orange, and purple predominate. • Air-conditioned environment , Non smoking zone, Good seating space, Availability of Fire Extinguishers, First Aid
Logo •
LOGO colors embody:
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Red Square= Leadership, passion
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White Swirl = Purity of purpose, invigorating properties of coffee
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Green Stroke = 125 years of coffee growing heritage of this vertically integrated Group
Website • Information on the recent updates can be archived • Store locator facility on the CCD website • Information regarding the offers and campaigns. www.cafecoffeeday.c
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Mostly youngsters of age 15-29 yrs visit Most of them are the students and the professionals Approximately 200-250 customers visit the café between 2 pm to 8 pm. Daily visits of the customers are less then the weekend visits. Customers describe Café Coffee Day as the place they frequently visit most after “home and workplace/college”.
Positioning Brand Image •
A place of well trained and informed staff.
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Offers the best made coffee, hot or cold, beverages and food in an invigorating ambience at affordable prices.
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It is for those who are young or young at heart.
Future developments •
• Launch 25 café a month – Never be more than 5 minutes away from a CCD
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CCD's future plans include e-commerce • initiatives through which CCD will deliver nonperishable merchandise such as coffee brewing equipment and coffee in bean/powder against • orders placed online
In Lounge format, CCD will serve foods and beverages including meals & in highway format will add breakfast menu. Company expects to tie up with more airlines over the next few months. Its products are currently sold on Indigo, Go-Air and Jetlite flights in India. It is expanding its presence in Poland,