CCD-BRAND ASSOCIATION
ANKUR KHANNA, PRABHJOT, PREETI
Key points This case attempts to explore the dominant brand associations that CCD (Café Coffee Day) can establish for itself and could use them with the advantage of being a pioneering brand in bringing the concept of cafes to India. CCD’s brand strategy was to build a differentiation to distinct itself from its competitors. The challenge was to develop the unique associations and communicate these to its consumers. Key summary points CCD’s vision: To be the only office for dialogue over a cup of coffee CCD’s Expansion Strategy: Cafe Coffee Day has around 821 outlets in 115 cities in India. CCD plans to take the total number of cafes to 1,000 by March 2010 and double it to 2,000 by 2014. (Update: By Jan 2012, CCD had approx 1,200 cafes and 900 Express outlets) In October 2009, CCD announced that it will increase its international presence from the current six outlets in Vienna and Pakistan to a total of 50 stores ac ross Europe and Middle East in two years’ time. International coffee chains in India: Recent entrants in the Indian market include Gloria Jeans, Coffee Bean & Tea Leaf and Illy Café. Operating Formats: Café Coffee Day operates in both regular (Coffee Day Square) and premium formats (Lounge). CCD’s new brand identity: 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 e nd 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 other s. New Entrants in Indian Coffee Cafe market: In early 2011, Hindustan Unilever, the FMCG giant planned to open a cafe outlet in Mumbai named ‘Bru World Café‘to popularize its in-house coffee brand Bru (HUL’s only coffee brand sold only in India). Lavazza – Espression store in India: In 2011, Lavazza, the Italian coffee brand opened its first signature coffee shop ‘Lavazza Espression’ in New Delhi, India. Question1. How would you analyse the various kind of associations that are associated with the three categories of respondents provided in Exhibit 1, 2 and 3? Answer1. The coffee brands have created a significant amount of awareness among the youth which is depicted by their responses in the survey. There are different parameters like the quality of the product, ambience, price, place, the overall user experience etc rated by the respondents. Respondents from all the three exhibits agree that the brands are high in terms o f associating it with the following:High Response:
Place for the young and highly inspirational customers
Hangout with their formal and informal friends
It has the lasting effect on customer
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Quality Product
The three kinds of associations spell out their different results which is evident from the kind of responses they have recorded. However, there is a high association with the quality and ambience of the coffee place but still brands as a product are not able to associate themselves with consumer. Medium Association:
Brand makes one feel proud
Consuming these brands of coffee makes one feel refreshed and energized
One feels westernized while drinking the coffee associated with this brand of coffee
Brands guarantee satisfaction
Medium to Lower Association
Customers not loyal to the brand agrees with the quality and ambience but they think the product is overrated.
Also they have rated the price parameter low whereas price in CCD is comparatively lower than others.
Other Observations
The authenticity of the color has been given an average rating by the set of respondents where as a high rating has been given by the loyal customers of CCD.
People loyal to CCD find it as an ideal place to hang out with their friends and have given them a high rating. The coffee lovers loyal to Barista Lavassa have given the same an average rating.
Inference from the exhibits: When we look at the non-loyal segment of the customers one who probably visited the café once in a while. They all have a tendency to feel that it’s an expensive affaire to go out and spend on coffee along with they agree to the fact with very high average that it’s for young and highly aspirational customers. The market environment is every changing and with increase in the dynamic demographics of tech savvy people who like to sit in places with good ambience where they can sit and spend time with their friends. On the other hand we have people who are loyal CCD customers they don’t feel that it’s expensive or overpriced. They are ready to shell out money for the experience which CCD is providing the aroma of the coffee which lingers in the ambience is something they associate with feeling proud. The most important association which the loyal CCD customers have is that of “Memories” which they have spent with their friends and family while having a sip of coffee. A sense of professionalism & being sophisticated in associated with people who are loyal to CCD. Lastly, when we talk about the customers who are loyal to Barista we see some stark difference in terms of associations as they feel the quality of ingredient with which they make their coffee is very high which makes them proud and adds to their snob value of having coffee at a café.
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Associative network memory model CCD
Sophisticate d Image
Refreshed & Energised
Menories of time spent
CCD
Not expensive
Quality time spent
Associative network memory model Barista
Quality Ingredient
Aroma & Ambience
Solitude
Barrista
Reasonable & Affordable
High & More Elite
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Question 2. What kind of consensus map would you construct from the analysis of the data that you performed as part of your response to Q1? Answer 2. Since all dimensions were te sted across three different segments of consumers, it showed different results leading to different kind of associations to the brand. Segments of consumers itself means having formed categories based on the c ommon needs and priorities that can be a result of different traits or demographics. CCD being a pioneering brand have an advantage in terms of brand associations that it can strengthen. Also, out of four Ps of marketing mix, apart from product aspect, it is strong in terms of other elements. In fact, it came out with its first advertisement only after a decade or so. It has developed itself a loyal customer base who are price insensitive and ready to pay for having a sensorial experience because they feel that it’s worth it. The aroma of the coffee which lingers in the ambience is something they associate with feeling proud. The most important association which the loyal CCD customers have is ‘memories’ which they have spent with their friends and family while having spending a good time at the place. Another thing to be noted here is that a sense of professionalism and being sophisticated is associated with people who are loyal to CCD. Non-loyal segment of consumers are price sensitive and as t hey have not yet established the association with the brand and does not have the brand knowledge. Also they feel that the place is meant for young and highly inspirational customers which is very generic. Customers who are loyal to Barista are different in terms of associations as they feel the quality of ingredient with which they make their coffee is very high which makes them proud and adds to their prestige value or status symbol of having coffee at a café that is having an excellent setting . Also they are trying to have authentic flavors and tastes of coffee which they feel that the brand provides. The brand image is very strong in terms of sophistication and global lifestyle. Again loyal customers are price sensitive which is seen in the responses. In order to build the brand equity, the work should be done on positive associations by the respective brands. This can further build the brand image which can be differentiated from its competitors and must always be distinctive. Both, brand awareness and brand image has to be there for brand knowledge. Also it is very important to work not only on the brand associations but also on the strength of that association i.e. how strong it is to t he customers. All these factors will lead to the brand equity and differentiation which is the sum total of customer responses.
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Q- What are inferences that you would draw from the consensus maps? How you approach the objectives of strengthening Café Coffee Day’s positioning using consensus maps? Ans: The inferences drawn by comparing Exhibit 2 and Exhibit 3 i.e. loyal consumers of Café Coffee day and loyal consumers of Barista are: Café Coffee Day associations
Barista Lavazza’s association
An average of 3.66 consumers felt the aroma
An average of 3.86 consumers felt its aroma
pleasant
more pleasant
An average of 4.20 consumers felt that this
Whereas an average of 4.26 consumers felt
brand projects a sophisticated image.
Barista brand projects a sophisticated image
Only an average of 3.23 consumers feel proud
Whereas an average of 4.00 consumers feel
about drinking coffee in CCD
proud about drinking coffee
An average of 3.6 respondents felt its price
An average of 3.74 respondents felt its price
affordable and reasonable
affordable and reasonable
On an average 3.71 respondents felt the brand
Whereas an average of 4.17 respondents felt the
to have authentic colour of coffee
brand to have authentic colour of coffee
Only an average of 3.69 respondents felt
Whereas an average of 4.03 fell respondents felt
refreshed and energized after consuming it
refreshed and energized after consuming it
An average of 4.03 respondents fell that it uses
Whereas an average of 4.23 respondents fell
quality ingredients
that it uses quality ingredients
Only 3.91 respondents on an average fell that
Whereas 4.17 respondents on an average fell
the strength of this brand is appropriate and had
that the strength of this brand is appropriate and
long lasting effect.
had long lasting effect.
Only 3.89 respondents on an average felt it as a
4.11 respondents on an average felt it as a
quality
quality
coffee
which
guarantees
them
coffee
which
guarantees
them
satisfaction
satisfaction
Only 3.89 respondents on an average felt the
Whereas 4.03 respondents on an average felt
ambience super exciting.
the ambience super exciting.
So these difference in the responses clearly indicates that on some associations such as price, aroma, coffee colour, ambience, long lasting fresh feelings etc. Bar ista scores higher compared to C afé Coffee Day i.e. Barista is preferred over CC D based on these associations. Now when we compare the association with three kinds of respondents such as Non- loyal respondents of Café Coffee Day, loyal consumers of Café Coffee Day and loyal consumers of Barista Lavazza we infer the following common associations.
Place for the young and highly inspirational customers
Hangout with their formal and informal friends
New life style: place to hangout, reminds them time they spend with their friends, good ambienceinteriors, lighting, décor, etc. creates excitement
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Quality Product
Lasting effect
We can say that brands are able to create an awareness, new life style and unique ambience but when it comes to brand association there is still a lot of work to be done.
The consumers in general visit a coffee shop to hang-out with their friends and unwind themselves to have a nice overall experience.
The coffee which is served well by the companies gives an up market feeling to the consumers. Some even feel westernized by the whole experience.
The ambience and the rest of the surroundings at a coffee shop also forms a crucial part of the customer's decision making process to visit or not to visit the same place again.
Office-goers and students go to a cafe to relax and spend hours on coffee and snacks. This explains the changing lifestyles, growing disposable incomes, increasing urbanization and a high frequency of get-togethers becoming a part of the lifestyle of country’s youth.
APPROACHES TO STRENGTHEN CCD’s POSITION
Reposition CCD Lounges and CCD Squares and differentiate them as places for more mature, intellectual conversations meant for professionals and elite crowds. To position them as premium cafés, drop ‘CCD’ from CCD Lounge and CCD Square to just ‘The Lounge’ or ‘The Square’ to differentiate them from the usual CCDs. Other name suggestions can be Mugs Cafe and Brown Chocs.
Offer more variety in the menu, especially with food items like Eggs Benedict, salads, Panini’s etc. to add to the sophisticated and intellectual image of the café. Also, food offers higher margins in profit and improves the bottom line.
The target segment of these cafés should be entertained properly. These are achievers who want to assert their position by going to better cafes, professionals, and artists who want a more sophisticated environment for intellectual conversations. Also, enhance the ambience by choice of music, or with professional guitar players to add to t he elite and sophisticated touch.
Maintain the customer experience across all chains of CCD as other coffee brands take great care for consistency. One idea can be to get ‘My Café Coffee Day Moment’ framed photos with friends at CCD. Also, CCD can combine coffee with youth and music to reach out to colleges and emphasize the friendship theme as the ambience touch point.
From coupons to Loyalty cards for increasing consumption and footfalls, give more points and more discounts as the customer swipes his card more. Also, leverage social media, which is a hit among youngsters coming to CCD. Social me dia apps can help form a community of coffee lovers.
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