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cafe coffee day by john

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john etc etc

on 3 December 2014

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Transcript of cafe coffee day by john

Founded in 1996 by Mr. V.G. SIDDHARTHA.
India's largest coffee conglomerate,the ABCTCL.
Headquarter in Bangalore & ISO 9002 certified company.
Pioneer of the café culture and the first to launch the ‘coffee bar’ concept in India.
Network strength: Over 1400 cafés in 200 cities/towns across India and growing.
Average Footfalls: 200 per café per day.
Recently expanded their outlets in Karachi, Vienna, Dubai and Prague.

SWOT Analysis
Cafe Coffee Day
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.
A Lot Can Happen Over A Coffee

“To be the best cafe chain by offering a world class coffee experience at affordable prices.”
To be the only office for dialogue over a cup of coffee.
Interesting facts about coffee & cafes
Coffee was first known in Europe as Arabian Wine.
Coffee is presently the second most traded commodity in the world. It is second only to oil.
Nescafe was invented by Nestle because it had to assist the Brazilian government to solve its coffee surplus problem.
USP of the brand
Affordable Price
Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the India Barista Championship 2002

Differentiation strategies
1481 outlets in 200 cities
Right Locations
Place a cafe in every possible location where some business can be generated.
To be present in educational institutions and corporate campuses
Variety and wide choice
Good hospitality
Consistent service at all outlets
Cafe Format
CCD had ventured into multiple formats like-
Music cafés
Book cafés
Highway cafés
Cyber cafés
Garden cafés

And now they are planning to launch
Sports Café and Fashion Café

Excellent brand name and visibility.
ISO 9002 certified company.
Quality, service and taste
Youth oriented brand.
Reduction in cost.

High competition in this segment.
Difficult to maintain brand loyalty.
CCD stores are incurring loses due to wrong site selection.

Fastest growing industries in Asia.
Tie ups with other companies for promotion.
Tapping smaller market.
Cheaper varieties of coffee.
Global expansion.

Large unorganized market.
Competition with Barista, Mochas etc.
Entry of foreign players like star bucks.
Dependent on Govt commodity rates.
Inflation rate.


Café Coffee Day has its main consumer base in the age group of 15-29 years.

Middle class and upper middle class youth.
Students, House wives and youngsters.
People who value a great cup of coffee.
Seeks to target not just the youth but anyone who is "young at heart”.

“Third Place" away from the home and college or workplace for the young and the young at heart.

Key target audience
48% male
52% female
Who hangs out at CCD?

Different divisions
Coffee Day Fresh 'n' Ground.
Coffee Day Xpress.
Coffee Day Take away.
Coffee Day Exports.
Coffee Day Perfect.

Marketing mix
Porters five forces model
Porter's five forces model
Competitor analysis
Direct Competitors:
Barista, Cafe Mocha and Java green
Indirect Competitors:
McDonald, Haldiram
Global Competitors:
Star Bucks, Costa coffee

Some of the important campaigns
Sugar free campaign.
Levis campaigns.
TVS scooty valentine campaign.
The channel V get gorgeous hunt.
The Himalaya honey campaign.


People at C.C.D. believe that “People are hired for what they know but fired for how they behave”.
Reward scheme like “people of the month”.
Reward was always based on attainable goals (SMART).

Physical Evidence
Logo, Colours, Images.
Décor & Architecture.
Dress Code.

Order process - Based on services (Customer read menu and order).
Flexible delivery process (Customer can go directly, take the order placed or order delivered on his table.

As a reaction to the launch of Starbucks in India, CCD debuted with TV Ad – Sit down-ism.
Gives customer a purpose for hanging out.
Word of mouth.
Subtle advertising in movies and TV serials.
Print and social media.
Sponsoring college events and giving out discount coupons.
Tie up with different corporates.
Presence of outlets in all areas.

Product mix
Threat of new entrants

Industry Rivalry
Buyer’s Power

Threat of Substitutes

Supplier’s Power

Pestal analysis
Easy sourcing of coffee beans
Cost control because of Govt regulations

Heavy coffee drinkers in South India
Cheaper sourcing maintain quality

Targets youth and middle class
Affordable for a meeting place

Marketing strategy based around technology
Provide entertainment over Bluetooth &Wi-Fi

Limited production/Less pollution
Use biodegradable plastics

Ethical and based on customer delight
Less consumer complaints and quick
customer service

Thank you for your attention
compiled by JOHN
Consumer behaviour in Indian cafe
Changing Lifestyle
Purchasing Power
Spending on Beverages
Rising Middle Class
Young population

Coffee industry in India
Sixth largest producer of coffee in the world.
Contribute 4% of the entire world coffees production.
As per the survey (Indian coffee board) increase rate in the domestic coffee consumption from 5 to 6%.
Coffee consumption in India had increased to 94,400 tons in 2008.
India leading coffee exporters with clients across USA, Europe and Japan.
Exports comprised 80% of India's coffee production while only 20% was utilized for the domestic purpose.

Key factors that determines sucess in future
Product and Service Innovation in the Future.
Education About Coffee.
Quality Control, Consistency.
Meeting Demand.
Role of Regulations.

More variety in food.
Healthier options in food.
Train staff to strike a personal cord of regular customers.
Availability of all items on menu all the time.
Screening of key sports events – IPL, ISL etc.

Interesting facts
Differentiation strategy
Cafe format
Different divisions
Marketing mix
Porters five model
Pestal analysis
Competitor analysis
Important campaigne
Product mix
People,Physical evidence,Process
Consumer behaviour
Coffee industry in India
Key factors of success

Key Partners
Key Activities
Raw material suppliers.
Technology partners.
Legal advisors.
Transport company.
Security agencies.

Distribution to different retailers.

Value proposition
Good price.
Quality and variety of food.
International café experience in India.

College going students.
Young working professionals.
Middle class and upper middle class youth.

Customer Relaionship
Customer Segment
Social networking.
Greetings on birthdays, anniversary etc.
Good response in service to the customers.

Key Resources
Raw material


Revenue Stream
Sales of coffee & beverages
Government incentives
Export of coffee beans
Market share

Cost structure
Fees and wages
Day to day expenses

Critical sucess factors
Less competition
Variety in the product chain
Great team
High focus on quality and price
Experimenting with new marketing strategies

Labor laws Applicable
Factory’s Act 1948 (10 or more employees with power)
Payment of Wages Act 1936 (applicable to all)
Minimum Wages Act 1948 (to all scheduled employees)
Employee State Insurance Act 1948(10 or more employees with power)
Payment Of Gratuity Act 1972 (10 or more employees with power)
Industrial Employment Act 1936 in Steel Organizations (over 30 employees)
Payment Of Bonus Act 1965 (applicable to all)
Maternity Benefit Act 1965 (applicable to all)
Contract Labor Act 1972 (20 or more employees)
Workmen’s ship Act 1928

Environmental Laws
DG Set System (Diesel Generating Set)
ETP (Efficient treatment plant)
Personal & professional qualities
Ability to take risk at a higher level
Thinks of long-term survival
Started to create brand and to create barriers for his outlets
Focused, confident and hard working
Very compassionate personality
To make change with his own effort.
Aim is to go beyond challenges
Full transcript