CHAPTER 1 INTRODUCTION BACKGROUND Evolution of a Coffee Café The beginning: It all began around 1000 A.D. when when Arab traders began to cultivate coffee beans in large plantations. They began to boil the beans beans creating a drink they called ‘qahwa’ which ‘qahwa’ which translates to ‘that which prevents sleep’. The drink became widely popular, and the need for coffee beans grew. Interesting facts about Coffee & Cafés:
Coffee was first known in Europe as Arabian Wine. Coffee is presently the second most traded commodit y 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.
Growth of Café Industry in India Hot beverages have always been a part of the tr adition of India, especially South India. Coffee took the first seat in South India when the traditional Brahmin classes brought down the beverage from the ruling British around the 1930s. During the early years the drink was confined only to traditional rich Brahmin families who served filte r coffee in a ‘davra‘davra- tumbler’. Coffee is no more confined to the rich Brahmin class now, though the tradition of serving filter coffee in the ‘davra‘davra - tumbler’ continues to this day. In day. In order to spread the drink, coffee houses emerged at various places in the country, which also served as the opposite places for lawyers law yers and the educated class to hold discussions ranging from politics to cinema. It is also believed beli eved that many scripts and ideas for films evolved here. One of the oldest coffee houses in South India is the Raayars mess, Chennai, which serves first class filter coffee even today. The mess was established in the 1940s and continues the tradition of coffee but supplements it with tiffin also. The vintage location of the mess attracts huge cr owds even today early in the mornings, Coffee however was not the only item on the menu. These places also ser ved food and other drinks to their customers. The drink also became famous and as a result even five star hotels began cashing in on it. Several hotels all over the country started opening coffee- shops that catered to high- end customers. This showed the popularization of coffee cafés, to all sections of society.
The drink has now become more of a concept than merely a drink itself. The last decade witnesses the growth of numerous coffee pubs in the country. A number of coffee café owners tried to westernize the taste in contrast to the filter coffee. Now, large retail chains like Qwikys, Barista, and Café Coffee Day have opened up around the country. The concept of a café today is not merely about selli ng coffee, but about developing a national brand. Retail cafés now form a multi- crore industry in the country, and have huge potential for growth locally, and internationally.
NEED/JUSTIFICATION CAFÉ COFFEE DAY India’s favourite coffee shop, where the young at heart unwind.
Café Coffee Day is a part of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), the first to roll out the ‘coffee bar’ concept in India with its first café in Bangalore. It’s a Rs. 750 crore, ISO 9002 certified company. With Asia’s second-largest network of coffee estates (10,500 acres) and 11,000 small growers, making its holder the largest individual coffee plantation owner in Asia, this in addition to being India's only vertically integrated coffee company. Coffee Day has a rich and abundant source of coffee. This coffee goes all over the world to cli ents across the USA, Europe and Japan, making us one of the top coffee exporters in the country.
We all know that Café Coffee Day is one of the most popular hangout places. The coffee joint is very famous among youngsters. Coffee is one of the favorite beverages and has become more appealing because of its variety.
Coffee has been around in India since the 17th century. However, coffee drinking has traditionally been largely restricted to domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee has been around in India since the 17th century. However, coffee drinking has traditionally been largely restricted to domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh.
India ranks sixth as a producer of coffee in the world accounting for 4.5% of the global coffee production. India has about 170,000 coffee farms cultivating around 900,000 acres of coffee trees. India is the largest producer and consumer of milk in the world with 98% of milk being produced in rural India. Coffee consumption in India is growing at 6% per annum compared to the global 2% plus.
Café Coffee Day’s menu ranges from signature hot and cold coffees to several exotic international coffees, tea, food, desserts and pastr ies. In addition, exciting merchandise such as coffee powders, cookies, mugs, coffee filters, etc. is available at the cafés. It was in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading Company Limited, popularly known as Coffee Day was formed. With a rich coffee growing tradition since 1875 behind it coupled with the opportunity that arose with the deregulation of the coffee board in the early nineties, Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan. Coffee Day's two curing works at Chikmagalur and Hassan cure over 70,000 tonnes of coffee per annum, the largest in the country. Coffee Day has a well-equipped roasting unit catering to the specific requirement of the consumers. The process is carr ied out under the control of experienced personnel to meet highest quality standards. The most modern technology available is used to maintain consistency and roast the coffee be ans to the demanding specifications of the discerning coffee consumers.
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Today, more than a decade later, Café Coffee Day is the largest organized retail café chain in India with cafes functioning in every nook and corner of the country. Drawing inspiration from this overwhelming success, Café Coffee Day today has cafes in Vienna, Austria and Karachi. W hat’s more, new cafes are planned across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future.
In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the concept of ‘Power of Dialogue’. In accordance with this new brand identity, CCD planned to give all its existing outlets a new look by the end of 2009. Cafés would be redesigned to suit different environments such as book, music garden and cyber cafes suitable for corporate offices, university campus or neighborhood. The change plan included new smart menu, furniture design, among others.
OBJECTIVES The following are the objectives of the project:1. The Coffee Café Day Industry. Section one of the Thesis is a peek at the coffee café industry. It takes a look at how the industry has evolved through time, from its early beginnings in Europe, to its current form of a highly organized sector. It also details the structure of the industry, with its various components, in its current form. It f inally deals with how this industry has grown in India, and what its current st atus is. 2. Case study on Café Coffee Day. This section deals with the overall operations of Café Coffee Day, and like the previous section, the functioning and aspects of its Marketing and Human Resource. 3. Defining Marketing Mix. The 7P’s of marketing mix is explained with reference to Café Coffee Day. 4. Market Survey. The survey analyses how the company is performing in the areas of Taste and Quality of Products, Value for Money, Delivery, People, Décor & Architecture, etc. 5. To Know the Recommendations. The last section of the Thesis identifies areas where the organization is performing excellently, and areas where they need to improve. It also provides recommendations based on the finding of the market survey, and the case studies of the firm. This section will provide an overall perspective on the comparative study of the firm.
LITERATURE REVIEW CCD – An
establi shed brand i mage in I ndia
Mr.V.G Siddhartha, Chairman CCD initiated his business interests in coffee by incorporating Amalgamated Bean Coffee Trading Company Limited (ABCTCL) in the year 1994. From Exports to commodity trading and building a bran d, Coffee Day entered with ‘Fresh n Ground’ and subsequently went up the value chain thereby revolutionizing the metropolis with Cafes under the brand Café Coffee Day.
Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Da y, a Rs. 300 crore ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters with clients across USA, Europe & Japan. Cafe Coffee Day (CCD) has an established brand image in India and ranks No 2 in the Brand Equity’s Most Trusted Brands 2008 survey – in the food services category. Rival Barista is at No 5. CCD has been able to make a connection with the Indian consumers, predominantly a mong the youth. CCD is the market leader in India and was awarded the ‘Exclusive Brand Retailer of the Year’ by ICICI Bank in its Retail Excellence Awards 2005 for the organize d retail sector.
“CCD today has become the largest youth aggregator and from a marketing standpoint the success has come by focusing on the three A’s Accessibility, Affordability and Acceptability.”
Bidisha Nagraj, The Marketing President of Café Coffee Day .
“Although demographically, a typical consumer would be male or female between 15-29 years of age, belonging to middle to upper class, we call our consumers young or young at heart. We are about juke boxes, good and affordable coffee and food. The brand fit is with the youth or young at heart. So we of ten look out for brands that are aspirational in nature”
Sudipta Sen Gupta, Marketing Head, Café Coffee Day. I nn ovative formats to woo new customer s .
“During our college days we use to be satisfied with drinking coffee in the canteen or the roadside dhaba, but young people today want a posh environment to chill out. ”
Sudipta Sen Gupta, Marketing Head, Café Coffee Day.
“The three formats- movie, sports and books will att ract all kinds of customers. The average age of visitors to CCD ranges from 18-30. With the new formats the company will cater to a varied customer base.”
Café Coffee Day, Marketing President, Bidisha Nagraj.
Ever since its entry in India, CCD created an entry barrier for competition with as many as four CCD café’s dotting a single street. The cluster/blanket strategy aimed at getting the
customers habituated to the brand. Within the Mumbai suburbs of Bandra, CCD has si x outlets. At another location it has six café’s within a span of half a kilometer. This leads to an increased footfall for the company.
LIMITATIONS The following are the limitations:-
1.
A study is restricted only for selected CCD outlets
2.
Time duration was 60 days
3.
The respondents may give biased opinion.
RESEARCH METHODOLOGY Primary Data: 1. Survey through questionnaires 2. Face – to-Face interview
Sample size: 100 Sample unit: Customers of Café Coffee Day Sampling method : Convenience Sampling Secondary Data: The major source of secondary data is through internet .The information on coffee industry and company profile of Café coffee Day is collected through internet.
