marketing plan of cafe coffee day!
DESCRIPTION
Marketing Plan of Cafe Coffee Day! A Marketing Concept.TRANSCRIPT
MARKETING PLAN OF
Presented by:- Shahbaaz Ahmed (PGFB1345)Shravan Kumar (PGFB1347)Sundram Sinha (PGFB1352)Saloni Mishra (PGFB1343)Swati Sharma (PGFB1353)Rajni Vasisht (PGFB1336)
Executive Summary
•India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd.
• Pioneer of the café culture and the first to launch the ‘coffee bar’ concept in India.
• Network strength: Over 1400 cafés in 200 cities/towns across India and growing.
• Average Footfalls: 200 per café per day.
Mission
“To be the best cafe chain by offering a world class coffee experience at affordable prices.”
Current Market Situation
• Coffee – a sunrise industry
• Growing young population and promotion of coffee culture
• Coffee Segmentation:
Robusta and Arabica BeansDifferent growth culture
Pure and blended coffeeCheaper products like chicory, vanilla, mocha
Filter coffee and instant coffee43% share of filter coffee
Café Coffee Day Networkof 1450 cafes across India
185 cafes
64 cafes
172 cafes
191 cafes
• 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
Target Audience
Target Audience
• There is a definite skew towards singles: 66% singles, 27% married & 7% others.
27%
66%
7%
Married Single others
•Middle class and upper middle class youth•CCD seeks to target not just the youth but anyone who is “young at heart”.•Medium Price Brand
•1481 outlets in 200 cities•Cafe in locations where some
business can be generated.•Educational institutions and
Corporate Campuses.
•“Third Place" away from the home and college or workplace for the young and the young at heart. •Fun Place
Café Coffee Day has its main
consumer base in the age group
of 16-30 years.
TARGETING
POSITIONING DIFFERENTIATION
SEGMENTATION
S-T-P-D
DISTRIBUTION STARATEGY
60%30%
10%
Growth Target
Tier I Tier II Tier III
• Network strength of over 1450 cafes in 200 cities and towns with average footfalls of 200 per café per day
• Distribution Strategy:• Single unit at Chikmagalur with capacity of
70,000 tonnes per annum
• Packaging industry:• Serving hot coffee 210ml and cold coffee 350ml• CCD merchandises
• Regional Distribution:• Targeting expansion in smaller towns• New café formats in metros –
• Lounge• Square
300150
50
STRENGTHS
• First-mover advantage• Excellent brand name and visibility• ISO 9002 certified company• Quality, service and taste• Youth oriented brand• Reduction in cost
WEAKNESS
• Lack of individual attention to loyal customers• Unavailability of fresh food• Market penetration of coffee bars is 5%
OPPORTUNITY• Fastest growing industries in Asia• Merchandising• Tie ups with other companies for promotion• Tapping smaller market• Cheaper varieties of coffee
THREAT• Competition with Barista, Mochas, Gloria
Jeans, Costa Coffee & Starbucks• Presence of other ‘Hangout’ locations• Unorganized market• Dependent on government commodity rates
SWOT
Objectives & Issues:-
Threat of new entrants - Medium• Presence of several established brands/hangout places/fast food joints
• High Investments for Expansion.
• Government policies promoting FDI .
Buyer’s Power - High• Low switching cost
• Variety of products
• Variety of services
Profitability - High• Increase Market Size and Brand Awareness by Vending Machines and Kiosks
in public places.
• To Increase the use of Technology Portfolio.
Competitor Analysis
CCD54%Barista
26%
costa coffee14%
others6%
Market Share
CCD68%
Starbucks12%
Gloria Jeans3%
Barista17%
Share of mind
Sample size – 150+
Product• Wide range
• Frappe – Summer
• Cappuccino - Winter• Merchandizing
Price• Range from Rs45 to
Rs100
• Over the years only minor changes in pricing policy
Place• All locations
• Strategically located outlets
• Coffee machines in college canteens
• Kiosks in offices
Promotion• Channel [V]’s “Get
Gorgeous” Contest
• Tie up with youth brands
• Khakee and Main Hun Na
• Sales Promotion
Marketing Strategy: Marketing Mix
Action Programs:-Advertising
• As a reaction to the launch of Starbucks in India, CCD debuted with TV Ad – Sit down-ism
• Gives customer a purpose for hanging out
• Word of mouth
• Subtle advertising in movies and TV serials
• Print and social media
• Sponsoring college events and giving out discount coupons
• Tie up with different corporates
• Presence of outlets in all areas
Alternate Advertising Mediums…
Media Partner Advertising Medium
Teli Brahma
Café Chronicle
DSN screens
Radiowalla
405
721
168
334
Wi-Fi / Bluetooth Downloads
Café Newspaper
Television Screens
Café Radio
Pan India presence
Leaflets
Counter top Tent Card
Danglers
Standee
Cup Branding
Vouchers / Scratch Cards / Discount Coupons
Coffee Day Xpress branding options
BUDGET
• Or• Organised Coffee Market is around 67$ Million ( Rs. 300 crore)
growing at a rate of 40%.
• CCD Contributes a third of the Group’s Combined Revenue of nearly 2,000 crore.
• Revenue Model is measured by Market Potential for Business (Price *Volume).
• Cost Structure includes Allocation of Costs in Key Assets, Direct Costs, Indirect Costs etc.
• Owns Plantation, Cold chain, Logistics for Economy of Scale and Effective Supply chain.
• Satisfactory Margins and Inventory Turnover for the Growth.
• 3 % of Company’s Revenue Spent on Training the Staff in Major cities.
Treat customer. fairly
Cultivate Relationship with Customer
Learn from Recovery Experience
Fail-safe the service
Track complains
CONTROLS
References
http://www.casestudyinc.com/coffee-day-brand-strategy-india
http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm
http://en.wikipedia.org/wiki/Marketinghttp://www.cafecoffeeday.com/http://www.barista.co.in/users/index.aspx