SERVICE MARKETING PROJECT ON
CAFÉ COFFEE DAY By Archana, Hardik, Sanjay, Tirthankar (SIESCOMS)
CAFÉ COFFEE DAY – Table of Index 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 12. 13. 13. 14. 14. 15. 15.
CCD Introduction 02 STPD STPD (Segme (Segmenta ntatio tion, n, Targeti argeting, ng, Positi Positioni oning, ng, Differ Different entiat iation ion)) 07 Perception Mapping 10 SWOT Analysis 11 Compe ompeti tito tors rs Anal Analy ysis sis 12 PESTEL PESTEL (Polit (Politica ical, l, Econo Economic mic,, Socia Social, l, Tech Technol nologi ogical cal,, Legal, Environmental) 14 7 PCs P’s Service Marketing 15 Strate Strategie gies s (Distr (Distribu ibutio tion, n, Positi Positioni oning ng and Focus Focus 43 Porters Five Forces 45 SPANCO SPANCO (Tangibl (Tangible e / Intangible) Intangible) 46 Recomm Recommend endati ations ons 47 Part Partne ners rs 48 Concl Conclus usio ion n 49 Q&A Q&A 50 Refe Refere renc nces es 51
CAFÉ COFFEE DAY - Introduction
Founded in 1996
India's largest coffee conglomerate, conglome rate, Amalgamated Bean Company Ltd Strives to provide the best experience to their guests
Coffee Trading
Pioneer of the café culture and the first to launch the ‗coffee ‗ coffee bar‘ concept in India Network strength: 1450+ cafés in 172 cities/towns across India and growing First to roll out the ‗coffee bar‘ concept in India with its first café 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 cafés CCD is present in every nook and corner of the country which includes Vienna, Austria and Karachi Karachi and plans plans to open across Middle Middle East, Eastern Europe, Europe, Eurasia, Egypt and South East Asia in the near future
CAFÉ 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 Ltd —the —the private equity arm of Franklin Templeton Investments, International Finance Corporation and Deutsche Bank Group hold stakes in Amalgamated Bean Coffee Trading Trading Co. Ltd
CCD’s SBU
– Coffee Day Fresh 'n' Ground – Coffee Day Xpress – Coffee Day Take away – Coffee Day Exports – Coffee Day Perfect – (FMCG Packaged Coffee) division
WHY CAFÉ COFFEE DAY
Average Footfalls: Footfalls: 300 per café per day
Average Average dwell time at café: café: 45 minutes
Meeting place for 15-45 15 -45 year olds
A place where :
Students frequently frequently visit most after ―home and workplace/college‖ 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 café is also the venue for business business meetings (23% ), celebrating special special occasions (20%) (20%) or just plain ―Time Pass‖ 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‖.
Café 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
Café 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 Café 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
Fastest growing industries in Asia. Preferred for informal meetings. Gone international
THREAT
Competition with established and International other coffee cafes like Barista, Starbucks, Costa Coffee, Coffee Mochas, Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café. Hukka Parlours.
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
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
Technological
Wifi
Environmental
Use
facility at every outlets and music Digital Marketing for promotions
Bio degradable products
Ethical
Legal
and based on customer delight Less consumer complaints and quick customer service
7 P’s 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 Enhancing Services
Consultation - Assistance
Hospitality - Food & Beverage - Music - Wi-Fi - Washrooms
Safekeeping - Credit Card Security - Parking
Expectations - Happy Hours - Privilege Cards
Consultation
Hospitality
Expectations Safekeeping
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 CAFÉ 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
• Café • 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 CAFÉ 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
Café Coffee Day
The Lounge
The Square
Café Coffee Day Store Coffee parlors where people can enjoy the coffee have eatables and hangout with friends
Café Coffee Day Lounge Premium café from Café coffee day target selected group
Café Coffee Day Square A unique Café where variety of single origin coffee brews from coffeegrowing countries are available
SERVICE MARKETING MIX OF CAFÉ 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 CAFÉ 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 Café coffee day shops – Sea green for Lounge – Brown for Square
SERVICE MARKETING MIX OF CAFÉ 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 CAFÉ 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 Café 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
PROCESS AT CCD L E A C C N I S E Y D I H V P E
R E M O T S U C
CCD exteriors
Customer Arrives at CCD
CCD interiors Ambience Interior design
Customer walks -in
) e g a t S N n O O ( S R E P T C A ) T N e O g t C a S k c a B (
Line of interaction
S S E C O R P T R O P P
Line of internal interaction
Furniture
Menu
CCD boy/girl
Goes to the table
Views Menu card
Places order
Greeted by CCD boy/girl
Takes order
Delivery Tray Food & drinks
Sits Chats Waits
Order received Eats
Delivers the order
CCD boy/girl
Requests for bill
Accepts request
Exit way CCD exteriors
Makes the payment Leaves
Hands over the bill to the customer
Line of visibility Informs about the order placed
Prepares Food / Drinks
Receives Food/Drink Data entry
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 Cafe’s farms, are distributed through wholesalers and retailers to customers who wish to use the coffee at home.
FOCUS STRATEGY ANALYSIS Service Offerings
Narrow Service focused d e v r e S t e k r a M f o . o N
Many
Unfocused
Café Coffee Day Premium CCD cafe outlets Cafes (Lounges)
Fully focused Few
Wide
Market focused
Café Coffee Day Square – CCD Xpress (Kiosk) an exclusive coffee bar
Porters Five Forces Threat of new entrants (LOW)
Buyer‘s Power (HIGH)
Industry Rivalry (HIGH)
Supplier's Power (LOW)
Threat of Substitutes (HIGH)
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
N
- 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
C
- Closing / Core need – Offer good services and quality product. Clear cut differentiated product Existing network of distribution
Recommendations 1.
To improve the interiors and décor.
2.
To have more and more tie-ups.
3.
Only 50 % or less than 50 % people find Café Coffee Day quality of service, ambience, pricing and location to be very good which proves that still Café 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 Café in the country.
2.
The major competitor undoubtedly Barista.
3.
That Café 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 café 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
