RETAIL MIX ANALYSIS

OF CAFÉ COFFEE DAY AND COSTA

COFFEE

SUBMITTED TO: SUBMITTED BY:

PROF. ASHWIN BHATIA SHUBHADIP BISWAS

FT-10-948

SEC-A

PGDM 10-12

IILM GSM

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 WorldSpace and Microsense respectively.

Costa Coffee is a coffeehouse company based in the United Kingdom founded in 1971 by Italian brothers Sergio and Bruno Costa, as a wholesale operation

supplying roasted coffee to caterers and specialist Italian coffee shops. Since 1995 it has been a subsidiary of Whitbread, since when the company has grown to over

1700 stores in the UK and abroad.

RETAIL MIX OF CAFÉ COFFEE DAY:

PRODUCT AND PRICE:

Café coffee day is offering various types of food items and beverages.

Products offered:

Hot coffees:

1. Expresso- The original Italian-strong and dark small but packs a punch. The

Godfather of coffee—44 /- 2. Macchiato- Espresso's punch smoothened and mellowed by a dollop of

foamed milk—57/- 3. Café mocha- Espresso with hot milk and sinful chocolate sauce. Just the right

mix for indulgence—76

4. Irish coffee- Coffee, sugar, cream and the smooth flavour of non-alcoholic whiskey--76

5. Cappuccino- A belly of Italian Espresso smoothened with steamed and foamed milk—53/-;61/-;66/-

6. cafe latte- A light milky coffee and a shot of espresso with steamed milk - the

recipe for happiness—57/-;67/-;78/- 7. black coffee- Ebony and Ivory served hot. A double shot of espresso with hot

water, served with milk on the side—57/- 8. Chococinno- Special King Size Cappuccnio, doused in chocolate. Disturbingly

delicious—78/-

Cold coffes:

1. Café frappe- ice blend cold coffee on ice. Tastes smooth and creamy, without milk—78/-

2. devils own- Get wicked with the café frappe loaded with chocolate and whipped cream. Ah, so sinful!—106/-

3. Mochachillo- delicious combination of coffee and chocolate and chocolate poured over ice. Bye bye summer—70/-

4. iced Eskimo- Finally a coffee that can wire you up and cool you down at the same time. Very rich, very cool with a strong coffee edge—66/-

5. kappi nirvana- A silver prize -winner at the WBC 2002 in Norway! A chilled-

out Espresso with subtle Caribbean flavours topped with whipped cream and chocolate vermcelli.—106/-

6. tropical iceberg- Chocolate? Coffee? Simple, get them both in this cocoa flavoured chiller.—66/-

7. chill-o-coffee- Savour rich and delightful coffee tones iced to perfection—76/-

8. choco frappe- More chocolate and more ice cream. Now if only the world was more like this—106/-

fruiteazers:

1. strawberry shake- Sweet, fruity and irresistibly good—75/-

2. strawberry soda- Strawbrrry sweetness, fizz of soda keeps you bubbling with excitement—66/-

3. lynchee chill- Delight in the lusciousness of lychee in a smooth creamy

potion—75/- 4. black currant blast- Sit back, relax, and enjoy the sweet ride—88/-

5. green apple soda-- The freshness of green apples and fizz of soda - a perfect drink to beat the heat—66/-

6. cool blue- Bright blue and tangy ice slush. A favourite with children below 18 years. And above 18 years—70/-

7. mango shake- Indugle in a rich cremay mango shake. Pefect potion for all seasons.—88/-

8. strawberry blush-blush of strawberry—75/-

hot teas:

1. lemon tea- Refreshing black tea, with a wicked twisr of lemon—58/- 2. Darjeeling tea- A light and flavourful cup of tea enjoyed best without

milk Blissful—58/-

3. Assam tea- Heavy-bodied Assam tea: a strong pick-me -up. No reservation required—58/-

4. Garam masala tea- A strong cup. Tea with Indian spices for that special 'kick'. Served garma garam—58/-

Frosteas:

1. Lemon iced tea- Save on air-conditioning bills. Ice-cold lemon

flavoured tea - the ultimate refresher.—76/- 2. Strawberry iced tea- Ice cold; Strawberry flavoured tea,

mmmmmmmmmmmm…. fruitlicious.—76/- 3. Peach iced tea- Enjoy the radiant burst of gold playing. Vivaciously in

peach tea with ice.—78/- 4. Lynchee frost tea- A lychee flaovered iced tea. Subtle and unsual.—

76/-

Coffee top ups:

1. Flavoured syrups- You can call it the infatuation before love, the spark before fire, the lead music before harmony. Or you could call it the

start to a perfect finish.—22/- 2. Chocolate sauce- You can call it the infatuation before love, the spark

before fire, the lead music before harmony. Or you could call it the start to a perfect finish.—26/-

3. Ice cream scoop- You can call it the infatuation before love, the spark

before fire, the lead music before harmony. Or you could call it the start to a perfect finish.—31/-

4. Whipped cream- You can call it the infatuation before love, the spark before fire, the lead music before harmony. Or you could call it the

start to a perfect finish.—29/-

International coffee:

1. Ethiopian- Coffee straight from the land of its inception - a connoisseur 's delight—84/-

2. Aztec- A south American brew fit for the gods or as we like to call them - our guests.—84/-

Big eats:

1. Veg burger- Take a bite of soft veg tikki on mayo harmonized with

coleslaw in sesame bun. Yum to your palate—57/-

2. Murg Chole Sandwich-Bite into the juicy chicken salad in protein enriched millet bread. The only thing it is rich in, is taste. –79/-

3. Chicken Burger-Dig into the succulent chicken lapped with mayo cruncy coleslaw. Fun in a sesame bun!—66/-

4. Paneer Tikka Sandwich-Classic mozzarella topped, tomato concasse

pizza remixed Indian style with capsicum, onion and cottage cheese flavoured with tikka masala. A slice of heaven! –79/-

5. Channa Sandwich-Enjoy crunchy Garden Salad served in protein enriched millet bread. A nutritious retreat—71/-

6. Chatpata lassons murgh—76/- 7. Spinach Corn Sandwich-A delectable balance of creamy spinach cheese

and juicy corn, satiates you with a homely touch. Best served grilled.—66/-

8. Chicken Tikka Sandwich-Tender tandoori chicken tossed in zero trans-fat mayo, sandwiched in white bread.—84/-

9. Extra cheese add-on—13/-

Small eats: 1. Spicy Chicken Calzone-Chicken sausage wrapped in a puff pastry with

juicy onion & mustard—57/-

2. Choco Doughnut -Bite into soft , sweet doughnut embraced with chocolate that takes you on a delicious roller coaster ride.—40/-

3. Veggie samosa- Enjoy potatoes cooked and flavoured with Indian herbs, served with imli sauce. A perfect, any time snack.—40/-

4. Choco Brownie-The world's favourite dessert-choco cake with walnut. Chewy, gooey and wowie!—53/-

5. All American muffin—strawberry--40/-;chocolate--40/-;expresso--44/- 6. Keema matter puff—44/-

7. Corn tadka munch—44/- 8. Cookies—12/-

Chocoholicas:

1. Choco rocks- Plunge into the bottomless layers of sinful chocolate on the rocks—75/-

2. Hot Choco-latte-Dark, rich cocoa with hot milk is a guaranteed 'feel

good'. The perfect substitiute for a tight hug.—70/- 3. Cold Choco-latte-Smooth, creamy and cool chocolate milk shake goes

down well, anytime—75/-

Quenchers:

1. XXX energy drink-Energy bottled in two delicious flavours—75/- 2. Snapple-Available in Raspberry Cranberry, Mango madness & Kiwi

Strawberry flavors—135/-

Sweet eats:

1. . Choco Black Forest-Taste the familiar black forest crammed with

chocolate mousse and cherries; and yet lighter and creamier.—57/-

2. Sizzle Dazzle Brownie--Sizzling hot gooey choco brownie served with vanilla ice cream and chocolate sauce. Fire and ice melt as one.—110/-

3. Chocolate Fantasy-A signature dessert….sinfully rich chocolate cake. Try it with ice cream. Just make sure your friends are engrossed in a

conversation.—62/- 4. Yoghurt Jelly Muesli- comes in three tiers. At the base there is

chocolate sponge cake, then a thick layer of white yoghurt and on top, jelly sprinkled with crunchy muesli. ―This can be a quick breakfast

supplement if one is running late,‖—62/- Top-ups:

1. Chocolate sauce—26/- 2. Icecream scoop—31/-

Sundaes: 1. Fruity Bliss-Vanilla Ice Cream cuddled in mango, blackcurrant and

strawberry sauces, topped with almonds. A sundae to cheer up your week.—110/-

2. Mocha Choco Delight-Warm mocha muffin with twin layers of vanilla and a scoop of chocolate drowned with espresso. A truly delightful

bite.—110/- 3. Blue Crumble-A fine medley of blue curacao, vanilla and chocolate ice

cream sandwiched amidst an oatmeal cookie. A suprising taste you can't wait to dig into—128/-

4. Choc-hole-Rich chocolate cake with scoops of vanilla ice cream, chocolate sauce and dlamond flakes. Filling beyond expectations. –

106/- 5. Dark Passion-Delicious brownie topped with a scoop of chocolate ice

cream dipping in chocolate sauce. Ataste that has swept taste buds

across continents.—101/- 6. Vanille ice cream-Double scoops. Double delight –53/-

7. Chocolate Ice Cream-Luscious and tempting chocolate ice cream. Okay, let's make it two scoops –57/-

PERSONAL-

the efficient staff and good service not to be forgotten. Over all for coffee,

ccd provides a satisfying experience, always worth the visit again and

again.

All the staffs were in uniform[black pant & white shirt].six staffs were

present at the time of my last visit.

Warm greeting was 1st thing to notice and when I was leaving one of the

staff remarked ―I hope everything was all right sir‖. It was a perfect example

of customer service and relation building.

The ambiance is pretty decent & so is the service.

People at Café Coffee Day believe that “People are hired for what they know but fired

for how they behave”. Motivation and personal skill are laid emphasize

upon.

Place-

Location-Alpha commercial belt;alpha-1

Greater noida Opening Hours-10.30 a.m to 9 p.m

Café Coffee Day looks to cater to their target market with strategically located outlets.

Their outlets are generally located in High Street/ Family Entertainment Centers e.g-

Alpha commercial belt-important shopping complex of greater noida, ansal plaza-entertainment centre & shopping complex.

Considering their generic appeal, they located outlet in Malls-what is the visiting place of all age groups.This endorses their brand image of a café

that appeals to coffee lovers of all ages.

Distribution of stock: The distribution of coffee beans start from their roasting plant at

chikmagalur. The coffee

beans are sent to the main offices of north and south India on monthly basis. The outlets

contact the Head Distributors on weekly basis. As far as other eatables are concerned, the inventory is checked on daily

basis and orders are placed according to the requirement. Café Coffee Day uses its own store

vehicle (small van) for transportation needs.

Promotion and advertisement: Buy a Café Coffee Day voucher worth R 100 and sip a FREE Cappuccino---

online promotion in taggle.com by ccd. This voucher can be redeemed at all the Café Coffee Day outlets except Café

Coffee Day Lounge & Café Coffee Day Square If the purchase is lower than the voucher value, Café Coffee Day will not be

liable to return the balance If the bill amount exceed the voucher value, customer is requested to settle

the remaining amount Kindly mail your feedback to customercare@cafecoffeeday.com

Offer is valid until 31st May 2011

Besides that Café Coffee Day also tie up lot of the youth brands. Their

promise to the customer is that a lot can happen over a coffee. So every

time they try to ensure something good happens to their customer. Ccd has

advertised through barter deals with other brands for ground events.- Scooty, Liril, latest one with Airtel Friends.

They are using banner/poster[chat,drink and merry] in their outlets to attract customers.

Another placement area they have is with HDFC. HDFC wanted to promote their debit card and they choose Café Coffee Day. So many cafes have debit

card machines. Café coffe day as their advertising strategy, started shooting a few scenes in

the cafe. So they had a Hindi movie Bas Yun Hi and a couple of Telugu and Tamil films with prominent Cafe Coffee Day brand placement.Later they took

a conscious decision of being seen in certain movies like Khakee and Main Hoon Na.As part of this effort, the brand was placed smartly in two

Bollywood ventures, the Amitabh Bachchan, Aishwarya Rai, Vivek Oberoi starrer Kyun Ho Gaya Na, Sajid Nadiadwala's Salman Khan, Priyanka Chopra

starrer Mujhse Shaadi Karoge, Salman Khan starrer Lucky and Socha Na

Tha. A lot of serials are shot in Cafe Coffee Day.Kahaani Ghar Ghar Kii was shot in CCD outlet.

Sales promotion-

Every ccd stocks merchandise ranging from coffee mugs, Tshirts, caps, bags, coffee filters, mints, different flavor of coffee powders, tea, cream, wafers

and biscotti. It also merchandises promotional materials for other brands it associates with.

When some brands are conducting events for which passes are distributed or movie premier ticket are given out,ccd is an important hub for these

activities. Café beat-an in house magazine which gives the entire low down on what’s

happening in ccd outlets across the world.

Presentation: Café Coffee Day has used bright red and green colors in its logo. RED stands for leadership and vitality. It also stands for passion (… for coffee). The

GREEN stroke harks back to their coffee growing heritage and the coffee plantations that they own.

Café is noticeably larger than the rest of the text inside the logo box. This denotes that Café Coffee Day pioneered the café concept in India way back

in 1996. Café Coffee Day would like to own the word ―café‖ in the minds of its customers.

Café interiors have been given a decent look by using wood and glass based interiors of color light yellow, orange, and red.

there are two comfortable sofas in two corners. The walls are shades of pale yellow, with various posters used for promotion.

There is a LCD TV on the left wall of the outlet,which was mainly playing 9X music channel.

Outlet was well lighted. The day light integration and display lighting was superb.

That outlet used ambient[General, uniform lighting using light fixtures that distribute the light widely] and accent[Spotlighting used to provide higher

levels of light in a focused pattern] lighting technique.

For shelf lighting they used one bright,wide light source and many small light sources located very cose to the objects.

Coffee machine is kept in the extreme left corner of the counter and computer used for billing is in right corner of the counter.

The showcase containing various offering is placed in front of main entrance of the outlet.

Color of all the chairs are of chocolate color and one table is surrounded by

4 chairs. There are 5 tables excluding sofa set. Space of outlet is approximately 150-200 sq.feet.

RETAIL MIX OF COSTA COFFEE:

PRODUCT AND PRICE:

They are also selling other brands’ products like

lays,mint,red bulls health drink, haldiram’s snacks etc.

PERSONAL: The people at COSTA are characteristically trained to be Pleasant, Polite and

Positive. They ensure you have a quiet, uninterrupted visit and provide an better place for casual business meeting. Their uniforms are deep black, and

which contribute to the overall feeling of the café.

PLACE: Location-ansal plaza,greater noida

Opening hours: 10 a.m to 9 p.m

Costa has a thumb rule for selecting cities and locations for the distribution of outlets. this is a prime factor in determining the success of a retail chain.

However, Costa Coffee has adopted a top down approach, wherein they first identify the cities and then decide on precise locations within its limits.

The selection of the cities was based on the following criteria.

1. Sizeable population of executives, students and families in SEC A & Costa category;

2. High disposable income with people looking for new vistas in leisure and lifestyle oriented concepts

3. High level or organized retail activity; 4. Rapid socio- economic development;

5. Level of commercial importance (Industrial cities, state capitals etc.)

PROMOTION AND ADVERTISEMENT: The promotional strategy in India has been mostly low key. Though it is a coffee house and the coffee house culture is building up as an upcoming

trend in India, a lot of advertising is unnecessary. This is so because costa’s brand name is enough for them to muster the required target market. Most

of the awareness will be through the word of mouth of people amongst the masses. Hence the reputation is more that counts.

In outlets costa coffee is promoting their products by using wall pictures,

posters etc. they had made collaboration with other brands from promotional activities.

Red bull’s health drinks were being served free to costa’s customers to promote products.

When there is launch of any new products,costa serves free to customer as a sample with other products.

PRESENTATION:

interiors have been given a decent look by using wood and glass based

interiors of color brown, chocolate, and red.

The lighting is not very bright, which creates a calm environment. various

photographs of the love for coffee spread around each outlet.

There is a large picture where a group of women are chatting with each

other is facing the door of entrance of the outlet.

It has music system [playing pop music],wifi connectivity ,LCD TV

display[showing live media channel but it was muted].

All the customers who were present at that time, were of the executive class

The show case and counter is place on the left hand of door of the entrance.

There was a costa branded cma machine kept in the extreme left corner of

counter.

Daily Newspapers[times of india, Hindustan times, mint etc] are available in

costa coffee outlet.