café coffee day
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A Brand Analysis of Cafe Coffee DayTRANSCRIPT
CAFÉ COFFEE DAY By,Nikhil Cherian (FT11139)Ashish Shetty (FT11311)Rahul Choudhury (FT11150)Raghav Arora (FT11249)Rahul Raj (FT11445)
The Brand ChosenCafé Coffee Day has the largest café retail chain in India – 1001 outlets as of 24-10-2010
CCD pioneered the café concept in India in 1996 by opening its first café at Brigade Road in 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.
The Brand Chosen“CCD today has become the largest youth aggregator,
and from a marketing stand point, the success has come by focusing on the 3As: Accessibility,
Affordability and Acceptability.”- Bidisha Nagaraj,
The Marketing president of Cafe Coffee Day
CCD’s Mission statement: “To be the best Cafe chain by offering a world class coffee experience at affordable
prices”
Why was this brand chosen? To study innovative formats to woo new customers
How they achieved their stated goal of “Value for money” – price of their offerings are relatively cheaper than the others for the same quality
What are the benefits/obstacles of being present in many locations – to be more accessible than their competitors
How has their system of no franchises worked for them – all outlets are owned by the ABC group
Why was this brand chosen? A brand which continually updates its look.
Spring cleaning in terms of logo, design/feel of their outlets lest “fatigue” sets in on the brand image.
New logo to symbolize “dialogue”. A place of interaction for it’s customers
Why was this brand chosen?
Café Coffee Day’s tagline:
“A Lot can happen over Coffee”
Insights GainedIn Terms of Advertising to create Brand Awareness:
CCD does not advertise itself via traditional media ads
Growth has been Organic. Physical presence is sufficient to create brand awareness
CCD advertises ABC’s other offerings such as The Serai Resorts.
Insights GainedCCD as a meeting place: “CCD is not just in the business of coffee, It’s in the business of
enabling businesses/people to meet each other”
Given CCD’s presence in every major city and most major towns, the simplest and most convenient meeting point that everybody knows is a CCD (it’s an easily identifiable landmark), unlike Barista/Lavazza
While others are building coffee business, CCD is building real estate/meeting-point business where coffee is just a by-product. They wish to have a café in any location where some business can be generated
Insights Gained
CCD’s growth story closely resembles Starbucks.
Expansion to the Rural market? Not at the moment. As of now, Non-
essential goods won’t do well, penetrating the tier 2 & 3 towns though
Recommendations Focus needs to be on product innovation and
experience – to meet rising customer expectations.
With time, the rural market will be ready for CCD’s entry. It will have to create the same café culture craze it managed to do so well in the cities to a people unaccustomed to it.
Recommendations CCD’s strength lies in it being able to
provide quality matching it’s competitors for relatively cheaper prices. This is due to: The ABC group has complete control from
production of Coffee in it’s fields of Chikmagalur, Karnataka to it’s 1001 outlets around the world.
It cannot afford to let that advantage slip
Recommendations CCD has expanded out of India. They now have
Cafés in: Pakistan, Austria and Germany
CCD’s expansion into the International market will be fraught with more difficulties as: They will face stiff(er) competition Customers have higher expectations CCD will have to raise the bar even higher in terms
of product innovation and service offerings.
Recommendations
CCD’s No-alcohol policy will have to change to be successful in the European and American markets. As is evinced by the Starbucks Liqueurs
range – which has been enormously successful.
‘A lot can happen over coffee’
Thank You