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SERVICE MARKETING

PROJECT
ON

CAF COFFEE DAY


By
Archana, Hardik, Sanjay, Tirthankar
(SIESCOMS)

CAF COFFEE DAY Table of Index


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

CCD Introduction
STPD (Segmentation, Targeting, Positioning, Differentiation)
Perception Mapping
SWOT Analysis
Competitors Analysis
PESTEL (Political, Economic, Social, Technological,
Legal, Environmental)
7 PCs Ps Service Marketing
Strategies (Distribution, Positioning and Focus
Porters Five Forces
SPANCO (Tangible / Intangible)
Recommendations
Partners
Conclusion
Q&A
References

02
07
10
11
12
14
15
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45
46
47
48
49
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CAF COFFEE DAY - Introduction

Founded in 1996

India's largest coffee conglomerate, Amalgamated Bean


Company Ltd

Strives to provide the best experience to their guests

Pioneer of the caf culture and the first to launch the coffee bar concept in
India

Network strength: 1450+ cafs in 172 cities/towns across India and growing

First to roll out the coffee bar concept in India with its first caf in Bangalore.

Outlets set up are based on the three formats -- cafe, lounge and square.

Menu ranges from signature hot and cold coffees to several exotic
international coffees, tea, food, desserts and pastries and exciting
merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is
available at the cafs

CCD is present in every nook and corner of the country which includes Vienna,
Austria and Karachi and plans to open across Middle East, Eastern Europe,
Eurasia, Egypt and South East Asia in the near future

Coffee Trading

CAF COFFEE DAY Introduction Continue


In 2010, they clubbed all his businesses (except agriculture) under Coffee
Day Resorts Holdings.
Existing investors include global PE firms KKR and Co. LP, New Silk Route
Partners LLC and Standard Chartered Private Equity have 25% stake
Darby Overseas Investments Ltdthe private equity arm of Franklin
Templeton Investments, International Finance Corporation and Deutsche
Bank Group hold stakes in Amalgamated Bean Coffee Trading Co. Ltd
CCDs SBU
Coffee Day Fresh 'n' Ground
Coffee Day Xpress
Coffee Day Take away
Coffee Day Exports
Coffee Day Perfect
(FMCG Packaged Coffee) division

WHY CAF COFFEE DAY

Average Footfalls: 300 per caf per day

Average dwell time at caf: 45 minutes

Meeting place for 15-45 year olds

A place where :
Students frequently visit most after home and workplace/college
Friends and colleagues meet n groups of 3 or more
One rejuvenates and are free to be themselves rather than a place to
be seen at

The caf is also the venue for business meetings (23% ), celebrating special
occasions (20%) or just plain Time Pass (57%).

Key Target Audience

Major chunk of 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

7%
27%

66%

Professionals
Students

S-T-P-D
SEGMENTATION

TARGETING

Middle class and upper middle class


youth

Students, House wives, executives and


youngsters

People who value a great cup of coffee

CCD seeks to target not just the youth


but anyone who is young at heart.

Caf Coffee Day has its main consumer


base in the age group of 16-30 years.

POSITIONING

Third Place" away from the home


and college or workplace for the
young and the young at heart.

Coffee Bar

Fun Place

Home and Workplace

Medium Price Brand

DIFFERENTIATION

1481 outlets in 200 cities


Strong and Stable Parentage
Right Locations
Place a cafe in every possible location
where some business can be generated.
To be present in educational institutions
and corporate campuses

POSITIONING STRATEGY
POSITIONING OF DIFFERENT OUTLET
Caf Coffee
Day
Coffee lovers
Youth
A place for
Hang out

The Lounge
Premium
Cafe

The Square
Exclusive for
Coffee lover

REPOSITIONING CCD
Changing the logo to a Dialogue Box - with the words Caf Coffee
Day, symbolizes a perfect place to relax and dialogue

New Logo

Tagline : a lot does happen over coffee!!

Perception Mapping
Quality of service (High Involvement)

High Price

Low Price

Quality of service (Low Involvement)

SWOT Analysis
STRENGTHS

WEAKNESS

Largest retail chain of cafes


ISO 9002 certified company
Quality and taste
Youth oriented brand
Reduction in cost (Own Production)
USP of brand - Highly affordable brand

Weak brand image and lacks


strength to maintain brand loyalty
Poor ambience and decor. (Prime
space
advertising
and
promotions)
Wrong site selection Losses

SWOT
OPPORTUNITY

THREAT

Fastest growing industries in Asia.

Competition with established and


International other coffee cafes like
Barista, Starbucks, Costa Coffee,
Coffee Mochas, Gloria Jeans, Coffee
Bean & Tea Leaf and Illy Caf.
Hukka Parlours.

Preferred for informal meetings.


Gone international

Competitor Analysis

Share of mind
Gloria
Jeans
3%
Starbucks
12%

Barista
17%

CCD
68%

others
6%
costa
coffee
14%

Market Share

Barista
26%

CCD
54%

Competitors
Direct Competitors:

Barista
Cafe Mocha
Costa Coffee
Beyond Coffee
Gloria Jeans
Minerva Coffee Shop

Indirect Competitors:
McDonald
Haldirams

Global Competitors:
Star Bucks

Political

Economic

PESTAL

Social

Technological

Environmental

Legal

Easy sourcing of coffee beans


Cost control because of Govt regulations

Heavy coffee drinks in South India


Cheaper sourcing maintain quality

Targets youth and middle class


Affordable for a meeting place

Wifi facility at every outlets and music


Digital Marketing for promotions

Use Bio degradable products

Ethical and based on customer delight


Less consumer complaints and quick
customer service

7 Ps of SERVICE MARKETING

PRODUCT

PRICE

PHYSICAL
EVIDE

PLACE

PEOPLE

PROMOTION

PROCESS

SERVICE PRODUCT
Core Product
Experience

Supplementary services

Wide range
Merchandising
Ambience

Delivery

Hospitality (Lounge & Square)


Price of the product

SERVICE FLOWER
Facilitating Services

Information
Payment

Billing

Order taking

Information
Menu
Website

Payment
Credit Card
Cash
Privilege Card

Billing - at the counter

Order Taking
Assisted by the
attendee

SERVICE FLOWER
Consultation

Enhancing Services
Consultation
- Assistance
Hospitality
- Food & Beverage
- Music
- Wi-Fi
- Washrooms

Safekeeping
- Credit Card Security
- Parking

Hospitality

Expectations
Safekeeping

Expectations
- Happy Hours
- Privilege Cards

PRODUCT PORTFOLIO
Product Mix Width

Food and Beverage


Food
Deserts
Snacks
Product
Line Length

Cakes

Non Food Items

B2B

Coffee Powder

Bulk/ Corporate
Orders

Coffee Machine

Catering
Services

Cups & Mugs

Coffee Vending
Machines

Chocolate and
cookies

Advertising
Space

Beverage
Coffee
Tea
Chocolate Shakes

Sundaes

Frappe

Heavy Foods
(in Lounges)

Fruit Shakes &


Lemonades

Apparel &
Accessories
Gift Cards &
Vouchers

SERVICE MARKETING MIX OF


CAF COFFEE DAY

PRODUCT

PRICE

PHYSICAL
EVIDE

PLACE

PEOPLE

PROMOTION

PROCESS

PRICING STRATEGY
PSYCHOLOGY PRICING
Pricing the product as Rs 69, 79, 59 etc. rather
than in the multiples of ten to give a feel that
the product less priced
LOCATION PRICING: On the basis of outlets, prices
have been positioned
Caf
Lounge
Square

COMBO PRICING
Clubbing up two or more products on special
occasions

PRICING STRATEGY
PREMIUMS PRICING
Adding things like cream, chocolate sauce
and positioning as a premium coffees

VALUE BASED PRICING


Providing different variants in terms of
prices by altering the quantity to give a
sense of affordability

SERVICE MARKETING MIX OF


CAF COFFEE DAY

PRODUCT

PRICE

PHYSICAL
EVIDE

PLACE

PEOPLE

PROMOTION

PROCESS

PLACE
Strategically located outlets
Kiosks in offices
Coffee machines in college canteens
Types of Stores

Caf Coffee Day

The Lounge

The Square

Caf Coffee Day Store


Coffee parlors where people can
enjoy the coffee have eatables and
hangout with friends
Caf Coffee Day Lounge
Premium caf from Caf coffee
day target selected group
Caf Coffee Day Square
A unique Caf where variety of single
origin coffee brews from coffeegrowing countries are available

SERVICE MARKETING MIX OF


CAF COFFEE DAY

PRODUCT

PRICE

PHYSICAL
EVIDE

PLACE

PEOPLE

PROMOTION

PROCESS

PROMOTION
Started TVC and Print campaign at the end of 2012
Co Branding in Movie and TV serials
Sales Promotion Activities
Combo Deal
Happy Hours
Privilege cards
Redeemable coupons
Through Interactive Media
Held Contest around a Very Popular Programme
Tie up lot of youth brands

WITH THE FOOD: SIDE MENU CARD

CONTESTS @ CAFES
Contests have been activated through leaflets/contest forms
given out with the menu-card /bill folders
Drop boxes, which also add to prominent visibility, are used to
collect all entries to the contest

ON THE WALL
The most imposing branding option within a cafe for visual communication
with minimal amount of text

ON THE TABLE: STICKERS & TENT CARDS

Tent Cards are the chosen element in the cafes


since they are all about I am here, you cant
miss me

EDITORIAL COVERAGE

SERVICE MARKETING MIX OF CAF


COFFEE DAY
PRODUCT

PRICE

PHYSICAL
EVIDENCE

PLACE

PEOPLE

PROMOTION

PROCESS

PHYSICAL EVIDENCE
Ambience
Different ambience the look and feel
for different outlets
Shop Colour
Violet for Caf coffee day shops
Sea green for Lounge
Brown for Square

SERVICE MARKETING MIX OF CAF


COFFEE DAY
PRODUCT

PRICE

PHYSICAL
EVIDE

PLACE

PEOPLE

PROMOTION

PROCESS

PEOPLE
Dressed in a particular uniform
Soft spoken, friendly behaviour
Customer Engagement Activities
Special Offers on Occasions
(Birthday, Valentine day, Friendship day
etc.)
Online Contests
Happy Hours

SERVICE MARKETING MIX OF CAF


COFFEE DAY

PRODUCT

PRICE

PHYSICAL
EVIDE

PLACE

PEOPLE

PROMOTION

PROCESS

PROCESS

People Processing Services


Minimum Response Time
Complaints and feedback
Assisted by the attendee or the brew master in Lounge and Square
Self Service Counter for Caf Coffee Day outlets in Offices / few Malls.
Ordering and delivery earlier was self service and now most of the
coffee shops have waiters to take order and deliver at the table

BLUEPRINT FOR SERVICE


DELIVERY

PHYSICAL
EVIDENCE

PROCESS AT CCD
CCD
exteriors

SUPPORT PROCESS

(On Stage)
(Back Stage)

CONTACT PERSON

CUSTOMER

Customer
Arrives at
CCD

CCD interiors
Ambience
Interior design

Customer
walks -in

Furniture

Menu

CCD boy/girl

Goes to the
table

Views
Menu card

Places
order

Delivery
CCD boy/girl
Tray
Food & drinks

Sits
Chats
Waits

Order
received
Eats

Requests
for bill

Exit way
CCD exteriors

Makes the
payment
Leaves

Line of interaction
Greeted by
CCD boy/girl

Takes order

Delivers
the order

Accepts
request

Hands over
the bill to
the customer

Line of visibility
Informs about the
order placed

Receives Food/Drink
Data entry

Line of internal interaction


Prepares
Food / Drinks

Billing system
Processes bill

Bill
generated

CHARACTERISTICS OF SERVICES
Intangibility
Experience
Taste of Coffee

Inseparability
Service provided
Perishability
Availability of tables
Heterogeneity
Ambience of different outlets

DISTRIBUTION CHANNEL STRATEGY


Easy accessibility
There is a Cafe Coffee Day outlet in every major city in India and are
easily accessible.

Rural area locations


Customers in the smaller communities also enjoy good quality
coffee and snacks at affordable costs because the Cafe has set up
outlets in the rural areas in India.
Distributors
The coffee produced on the Cafes farms, are distributed through
wholesalers and retailers to customers who wish to use the coffee
at home.

FOCUS STRATEGY ANALYSIS


Service Offerings

No. of Market Served

Narrow

Many

Few

Wide

Service focused
Unfocused
Caf Coffee Day Premium CCD cafe outlets
Cafes (Lounges)

Fully focused
Market focused
Caf Coffee Day Square CCD Xpress (Kiosk)
an exclusive coffee bar

Porters Five Forces


Threat of
new entrants
(LOW)

Buyers
Power
(HIGH)

Industry
Rivalry

Threat of
Substitutes

(HIGH)

(HIGH)

Supplier's
Power
(LOW)

SPANCO - Tangible / Intangible (CCD)


S - Suspect / Security All Customer who wants to eat snacks Or have a peaceful
Coffee tea or cold drinks. Quality products, Packaged Fresh & quality healthy food
and drinks.

P - Prospect / Profit All college /school going Students, Kitty goings groups and
business customers. Same price as other notable brand Better taste and crispness
Value for Money

A - Approach / Analysis -Analysis Research and customer focused studies on what


Indian customers looking for hot and cold drinks in peaceful good environment.
Wished to taste new & innovative products Unique freshness flavour

- Negotiation / Number Strategy - Change the product Unique Selling


Proposition Offer reasonably good prices quality product and services. Coffee /
tea variants High price & high volume Other Varieties (cold drinks and snacks) Low
price & high volume

- Closing / Core need Offer good services and quality product. Clear cut
differentiated product Existing network of distribution

Recommendations
1.

To improve the interiors and dcor.

2.

To have more and more tie-ups.

3.

Only 50 % or less than 50 % people find Caf Coffee Day


quality of service, ambience, pricing and location to be very
good which proves that still Caf Coffee Day need to do lot of
homework in order to satisfy its customers.

4.

It should introduce a feedback form system in order to know


about the customers satisfaction level.

PARTNERS

Conclusion
1.

C.C.D. is the fastest growing Caf in the country.

2.

The major competitor undoubtedly Barista.

3.

That Caf Coffee day is planning to go international.

4.

The other major things regarding service marketing is that customers give
top priority to the quality of the services / products and ambience.

5.

It is providing tough competition to its competitors by satisfying its


customers with great caf experience.

6.

A lot can happen over coffee message has touched the hearts of
youngsters who are the largest consumers of C.C.D.

?
ANY QUESTIONS

References
Personal experiences
http://www.casestudyinc.com/coffee-day-brand-strategy-india
http://www.pr-inside.com/india-food-and-drink-report-qr2164244.htm

http://en.wikipedia.org/wiki/Marketing
http://www.cafecoffeeday.com/
http://www.barista.co.in/users/index.aspx
www.slideshare.com

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