An Analysis on Consumer Preference towards ´Café Coffee Dayµ
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MBA PROGRAM OF DEPARTMENT OF MANAGEMENT STUDIES
PREFACE Market
provides a key to gain actual success only to those brands which match best to the current environment i.e." imperative" which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality
products and excellent taste and services which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year. This survey report introduces study of consumer·s preferences for Café Coffee Day. After going through a detail analysis of market behavior and future prospect, t may also provide an opportunity to Café Coffee Day to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of Bangalore, city in particular and throughout the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers. This study report also provides the various factors affecting the services. Marketing Division of Café Coffee Day has to keep in mind various factors specially while preparing a plan for marketing its product or services. Detail description along with analysis of surveyed data is being presented in this report
CONTENTS Chapter 1.
Introduction.
Chapter 2.
1.1 Café Coffee Day. 1.2 Objectives. 1.3 Limitation. 1.4 Research Methodology. Review of Literature.
Chapter 3.
Data Analysis and Interpretation.
Chapter 4.
Findings and Suggestions.
Chapter 5.
Conclusions.
Chapter 6.
Annexure.
Chapter 7.
Questionnaire.
Chapter 8.
Bibliography.
INTRODUCTION: Consumer preference depends on the product·s perceived performance or service relative to a buyer·s expectations. If the products performance falls short of expectations, the customers are dissatisfied. If performances match the
expectations, the customers are satisfied. If the performance exceeds expectations, the customers are highly satisfied. Outstanding marketing companies go out of their way to keep their customer satisfied. Satisfied customers make repeat purchases and tell others about their good experience with the product. The key is to Match Customers Expectations with the company performance. Smart companies aim to delight customers by promising only what they can deliver, then delivering more than they promise.
About Café Coffee Day: Simply put, Cafe Coffee Day is India's favourite coffee shop, for the young and the young at heart. We're part of India's largest coffee
conglomerate,
the
Amalgamated
Bean
Coffee
Trading
Company.
You should see our estates, there's over 10,000 acres of rolling hills with the coffee shrubs making for lovely walks. There's 11,000 small growers who make us who we are and we're glad to be a part of their lives. And we're not alone, there's folks in the USA, Europe and Japan that buy coffee from us, making us the top coffee exporter from India! To put in plainly we brought in the concept of cafes in India (this is where you thank us!). The first one opened in 1996 on Brigade Road in Bangalore. It's been an exciting journey since then, becoming the largest organized retail cafe chain in the country. Oh, and if your travels take you to Vienna or Karachi Prague, do stop by our CCDs there for taste of the brew from home. Café Coffee Day is a chain of coffee shops in India with its headquarters in Chikkamagaluru, Karnataka. It is a division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) and is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore and today is the largest cafe retail chain in India, with 1000 cafes in 141 cities and many in its base, Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It offers satellite radio and Wi-Fi at some stores via its tie-ins with World Space and Microsense, respectively. It has recently opened cafes in Pakistan, Germany, and Austria, as well. It offers wi-fi in collaboration with Aircel in India.
Café Coffee Day sources coffee from 10,500 acres (4,249 ha) of coffee estates, the second largest in Asia, that is owned by a sister concern and from 11,000 small growers. Cafe Coffee Day's divisions include:
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Coffee Day Fresh 'n' Ground, which owns 450 coffee bean and powder retail outlets. Coffee Day Square, a high level coffee coff ee bar in Bangalore. Coffee Day Xpress, which runs 730 Coffee Day kiosks. Coffee Day Takeaway, which runs 9000 vending machines. Coffee Day Exports, its exporting wing. Coffee Day Perfect, its (FMCG Packaged Coffee) division.
Partner With CCD: How would you like your brand to join conversations of over 300000 young people who spend over 45 minutes at our 900+ cafes every day? At Cafe Coffee Day we're all about making the circle bigger, so get in touch with us to see how you can get in touch tou ch with those who matter to you! CCD has successfully executed a number of campaigns for various brands across a wide spectrum like FMCG, white goods, telecom, education and many more categories to meet their brand objectives and thus has proved to be a strong alternative to conventional media properties. The opportunity to get your brand message across to our customers in a very subtle yet effective method is limitless. From large wall spaces which can attract the customer with eye catching brand messages to 3D table stickers, to branded tissue papers, the list is endless. We are also trying to continuously innovate and offer the best possible options to create a successful campaign.
OBJECTIVE OF THE STUDY: y
To study the consumers preferences for Café Coffee Day.
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To know the percentage of males and females that is aware about Café Coffee Day.
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To know which brand·s advertisement mostly people have seen.
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To know the reason to go Café C afé Coffee Day.
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To know why was the advertisement being noticed by the consumer.
LIMITATIONS OF THE STUDY: y
Some of the respondents re spondents refused to fill the questionnaires.
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The responses may vary as some people did not want to come up with real answers. Limitation of time. The survey is conducted only in a particular area; hence the results may vary in other parts of the cities. The sample size was small. The findings are based on the survey conducted in summer; the results may vary in other months.
RESEARCH METHODOLOGY:
DATA COLLECTION:
Research approach : Survey. Research instrument : Structured questionnaire. S AMPLING
PLAN:
Sample unit:
People at age group: [Below 20] [21-30] [31-40] [Above 40] Years. Bangalore. Sample size : 100.
Sample process: Random. Duration
: 3 months.
ANALY SIS:
Analysis have been done through ²
Regression. Bar Charts. Pie Charts.
Review of Literature: A study of factors responsible for brand preference: preference:
The purpose of this paper is the study of factors responsible for brand preference in drinking items, increasing competition, more due to globalization, is motivating many companies to base their strategies almost entirely on building brands. Brand preference means to compare the different brands and opt for the most preferred pre ferred brand. This brand
Preference Preference is influenced by various factors. According to this study many factors were find out for preferring a brand like Brand persona Brand constancy Brand loftiness Brand value. In the identification of factors affecting the brand preference, it was concluded that brand persona is the most effective factor that affects the brand preference. This brand persona deals with the personality pe rsonality aspects or the external attributes of brand, thus it can be said that consumer prefer any brand by looking at the external exte rnal attributes of a brand.
Color, Variant and Fragrance rule consumer preferences: The intensity of color and the variant are the key drivers behind consumer acceptance of a particular brand, but packaging and labeling are not as important for winning over consumers; the study involved consumers at different stages of development and highlights the importance of adopting a ´sensory marketing approach. Companies need to continuously innovate to maintain market leadership. When the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumers. The study also demonstrates the importance of variants and color selection for f or new products.
Data analyses and Interpretation
Regression Variables Entered/Removed
Model 1
Variables
Variables
Entered
Removed
a
Taste
b
Method . Enter
a. All requested variables entered. b. Dependent Variable: CCD
Model Summary
Model
R
Std. Error of the
Square
Estimate
R Square a
1
Adjusted R
.101
.010
-.004
.441
a. Predictors: (Constant), Taste
b
ANOVA
Model 1
Sum of Squares Regression
df
Mean Square
.138
1
.138
Residual
13.234
68
.195
Total
13.371
69
F
Sig. .707
.403
a
a. Predictors: (Constant), Taste b. Dependent Variable: CCD
Coefficients
a
Standardized Unstandardized Coefficients Model 1
B
Std. Error
(Constant)
1.345
.117
Taste
-.053
.064
a. Dependent Variable: CCD
Coefficients Beta
t
-.101
Sig.
11.488
.000
-.841
.403
T-Test
One-Sample
N
Mean
Statistics Std. Deviation
Std. Error Mean
Visit
70
2.46
1.163
.139
Time
70
3.24
1.268
.152
Factor
70
3.73
1.522
.182
People
70
2.77
.837
.100
CCD
70
1.26
.440
.053
One-Sample Test
Test Value = 0 95% Confidence Interval of the Difference t
df
Sig. (2-tailed)
Mean Difference
Lower
Upper
Visit
17.672
69
.000
2.457
2.18
2.73
Time
21.404
69
.000
3.243
2.94
3.55
Factor
20.496
69
.000
3.729
3.37
4.09
People
27.702
69
.000
2.771
2.57
2.97
CCD
23.893
69
.000
1. 257
1.15
1.36
Oneway
ANOVA
Money Sum of Squares Between Groups
Df
Mean Square
F
7.598
4
1.899
Within Groups
49.045
65
.755
Total
56.643
69
Sig.
2.517
.050
Oneway
ANOVA
Money Sum of Squares Between Groups
Df
Mean Square
F
7.404
3
2.468
Within Groups
49.239
66
.746
Total
56.643
69
Sig.
3.308
.025
CCD
Cumulative Frequency Valid
Missing Total
Percent
Valid Percent
Percent
cafe coffy day
52
67.5
74.3
74.3
Barista
18
23.4
25.7
100.0
Total
70
90.9
100.0
7
9.1
77
100.0
System
Visit
Cumulative Frequency Valid
Valid Percent
Percent
once in a week
18
23.4
25.7
25.7
once in a month
19
24.7
27.1
52.9
twice in a month
19
24.7
27.1
80.0
once in six months
11
14.3
15.7
95.7
3
3.9
4.3
100.0
70
90.9
100.0
7
9.1
77
100.0
once in a year Total Missing
Percent
System
Total
Money
Cumulative Frequency Valid
Valid Percent
Percent
<200
19
24.7
27.1
27.1
200-400
32
41.6
45.7
72.9
401-700
16
20.8
22.9
95.7
701-1000
1
1.3
1.4
97.1
>1000
2
2.6
2.9
100.0
70
90.9
100.0
7
9.1
Total Missing
Percent
System
Money
Cumulative Frequency Valid
Valid Percent
Percent
<200
19
24.7
27.1
27.1
200-400
32
41.6
45.7
72.9
401-700
16
20.8
22.9
95.7
701-1000
1
1.3
1.4
97.1
>1000
2
2.6
2.9
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Total
Time Cumulative Frequency Valid
Missing Total
Percent
Valid Percent
Percent
<1/2 hour
5
6.5
7.1
7.1
1/2-1 hour
18
23.4
25.7
32.9
1-2 hours
18
23.4
25.7
58.6
2-3 hours
13
16.9
18.6
77.1
>3 hours
16
20.8
22.9
100.0
Total
70
90.9
100.0
7
9.1
77
100.0
System
people Cumulative Frequency Valid
alone
Valid Percent
Percent
2
2.6
2.9
2.9
with 1 person
27
35.1
38.6
41.4
2-3 people
27
35.1
38.6
80.0
3-4 people
13
16.9
18.6
98.6
>4 people
1
1.3
1.4
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Total
Factor Cumulative Frequency Valid
taste of coffee service
Missing Total
Percent
13
Ambience
Valid Percent
16.9 2
18.6 2.6
Percent 18.6 2.9
8
10.4
11.4
32.9
Brand value
15
19.5
21.4
54.3
Passion
32
41.6
45.7
100.0
Total
70
90.9
100.0
7
9.1
77
100.0
System
21.4
Taste Cumulative Frequency Valid
Valid Percent
Percent
1
38
49.4
54.3
54.3
2
22
28.6
31.4
85.7
3
7
9.1
10.0
95.7
4
3
3.9
4.3
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Total
Price Cumulative Frequency Valid
Total
Valid Percent
Percent
1
21
27.3
30.0
30.0
2
28
36.4
40.0
70.0
3
12
15.6
17.1
87.1
4
4
5.2
5.7
92.9
5
5
6.5
7.1
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Brand Cumulative Frequency Valid
Valid Percent
Percent
1
36
46.8
51.4
51.4
2
19
24.7
27.1
78.6
3
12
15.6
17.1
95.7
4
2
2.6
2.9
98.6
5
1
1.3
1.4
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Total
Behavior Cumulative Frequency Valid
Total
Valid Percent
Percent
1
12
15.6
17.1
17.1
2
34
44.2
48.6
65.7
3
19
24.7
27.1
92.9
4
4
5.2
5.7
98.6
5
1
1.3
1.4
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Ambience
Cumulative Frequency Valid
Valid Percent
Percent
1
23
29.9
32.9
32.9
2
31
40.3
44.3
77.1
3
14
18.2
20.0
97.1
4
2
2.6
2.9
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Total
Availability
Cumulative Frequency Valid
Total
Valid Percent
Percent
1
37
48.1
52.9
52.9
2
13
16.9
18.6
71.4
3
7
9.1
10.0
81.4
4
10
13.0
14.3
95.7
5
3
3.9
4.3
100.0
70
90.9
100.0
7
9.1
77
100.0
Total Missing
Percent
System
Age
Cumulative Frequency Valid
Missing
Percent
Valid Percent
Percent
15-20
4
5.2
5.7
5.7
20-25
42
54.5
60.0
65.7
25-30
23
29.9
32.9
98.6
>30
1
1.3
1.4
100.0
Total
70
90.9
100.0
7
9.1
77
100.0
System
Total
Age
Cumulative Frequency Valid
Missing
Percent
Valid Percent
Percent
15-20
4
5.2
5.7
5.7
20-25
42
54.5
60.0
65.7
25-30
23
29.9
32.9
98.6
>30
1
1.3
1.4
100.0
Total
70
90.9
100.0
7
9.1
77
100.0
System
Total
Sex Cumulative Frequency Valid
Missing Total
Percent
Valid Percent
Percent
Male
49
63.6
70.0
70.0
Female
21
27.3
30.0
100.0
Total
70
90.9
100.0
7
9.1
77
100.0
System
Income
Cumulative Frequency Valid
Missing
<20000
Percent
Valid Percent
Percent
9
11.7
12.9
12.9
20000-25000
22
28.6
31.4
44.3
25001-30000
11
14.3
15.7
60.0
30001-40000
17
22.1
24.3
84.3
>40000
11
14.3
15.7
100.0
Total
70
90.9
100.0
7
9.1
77
100.0
System
Total
Crosstabs
Case
Processing Summary Cases
Valid N CCD * Taste
Missing
Percent 70
N
Percent
90.9%
CCD
Total
7
N
Percent
9.1%
77
100.0%
* Taste Crosstabulation
Count Taste 1 CCD
Total
2
3
4
Total
cafe coffy day
27
17
5
3
52
Barista
11
5
2
0
18
38
22
7
3
70
Crosstabs
Case
Processing Summary Cases
Valid N people * Price
Missing
Percent 70
N
Total
Percent
90.9%
7
N
9.1%
Percent 77
100.0%
Crosstabulation
people * Price Count
Price 1 People
2
3
4
5
Total
alone
0
2
0
0
0
2
with 1 person
7
10
4
3
3
27
2-3 people
8
11
5
1
2
27
3-4 people
6
5
2
0
0
13
>4 people
0
0
1
0
0
1
21
28
12
4
5
70
Total
Crosstabs
Case
Processing Summary Cases
Valid N CCD * Income
Missing
Percent 70
N
90.9%
CCD
Total
Percent 7
N
9.1%
* Income Crosstabulation
Percent 77
100.0%
Count Income <20000 CCD
20000-25000
25001-30000
30001-40000
>40000
Total
cafe coffy day
6
14
9
14
9
52
Barista
3
8
2
3
2
18
9
22
11
17
11
70
Total
Crosstabs
Case
Processing Summary Cases
Valid N Visit * Time
Missing
Percent 70
N
90.9%
Total
Percent 7
Visit * Time
N
9.1%
Percent 77
100.0%
Crosstabulation
Count Time <1/2 hour Visit
Total
1/2-1 hour
1-2 hours
2-3 hours
>3 hours
Total
once in a week
1
4
5
2
6
18
once in a month
1
4
4
6
4
19
twice in a month
1
5
6
5
2
19
once in six months
2
3
3
0
3
11
once in a year
0
2
0
0
1
3
5
18
18
13
16
70
Crosstabs
Case
Processing Summary Cases
Valid N CCD * Money
Missing
Percent 70
N
Percent
90.9%
CCD
Total
7
N
Percent
9.1%
77
100.0%
* Money Crosstabulation
Count Money <200 CCD
cafe coffy day Barista
Total
200-400
401-700
701-1000
27
9
1
2
52
6
5
7
0
0
18
19
32
16
1
2
70
CCD Pearson Correlation
Age 1
-.022
Sig. (2-tailed) N
Age
.856 70
Pearson Correlation
Sig. (2-tailed) N
70 -.022
1
.856 70
Correlations
Total
13
Correlations
CCD
>1000
70
The above bar diagram shows how often people go to coffee shop and how much money they spend there.
The above Graph shows how many people prefer prefe r cafe coffee day and Barista.
SUGGESTIONS: On the basis of above study following suggestions can be given: y
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Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer. The company should focus to bring some more different variants. The company must be aware of and keep at least the latest knowledge of its primary competitors in market. The company should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole. The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers. The visibility of any product plays an important role in making the customer, aware about it and is vital for the growth and development of any product. For their advertisement they can also introduce a brand ambassador, because most of the consumers remember advertisement because of their brand ambassador.
Questionnaire 1. What coffee shop do you usually go to? A. Café coffee day
B. Barista
2. How often do you visit a coffee shop? A. once in a week
B. once in a month
D. Once in six months
C. Twice in a month
E. Once in a year
3. How much money do you usually spend at a coffee shop? A. <200
B.200-400
D. 701-1000
C. 401- 700
E. >1000
4. How much time do you usually spend at a coffee shop? A. Less than ½ hour D. 2-3 hour
B. 1/2-1 hour
C. 1-2 hour
E. >3 hour
5. How many people do you usually go with? A. Alone
B. With 1 person
D. 3-4 people
C. 2-3 people
E. More than 4 people
6. What is the single most important factor for you to choose a coffee shop? A. Taste of coffee D. Brand value
B. Ambience E. Passion
C. Service
7. Please rank the following:
A. Taste and quality of the products
B .Prices of the products
C. Brand value
D. Staff Behavior
E. Ambience
F. Availability of products
8. Age: A. <15
B.15-20
D. 26-30
9. Sex: A. Male
C. 21-25
E. >30
B. Female
10. Profession: ________________
11. Income: A. <20000
D. 30001-40000
B. 20000-25000
E. >40000
C. 25001-30000
BIBLIOGRAPHY:
REFERENCE BOOKS:
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Kotler Armstrong, (2004) Principles of Marketing , New Delhi, Prentice Hall of India, 10TH edition.
Rajendra Nargundkar, (2011), Marketing Research Method , India, Tata rd McGraw-Hill, 3 edition.
WEBSITES: y
www.cafecoffeeday.com/our-cafe.php?mnid=1&pcid= www.cafecoffeeday.com/our-cafe.php?mnid=1&pcid =
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www.en.wikipedia.org/wiki/Café_Coffee_Day