SERVICE MARKETING PROJECT ON CAFÉ COFFEE DAY PDF

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SERVICE MARKETING PROJECT ON CAFÉ COFFEE DAY By Archana, Hardik, Sanjay, Tirthankar (SIESCOMS) CAFÉ COFFEE DAY – Table of Index 1. CCD Introduction 02 2. STPD (Segmentation, Targeting, Positioning, Differentiation) 07 3. Perception Mapping 10 4. SWOT Analysis 11 5. Competitors Analysis 12 6. PESTEL ...

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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. 13. 14. 15.

CCD Introduction STPD (Segmentation, Targeting, Positioning, Differentiation) Perception Mapping SWOT Analysis Competitors Analysis PESTEL (Political, Economic, Social, Technological, Legal, Environmental) 7 PCs P’s Service Marketing Strategies (Distribution, Positioning and Focus Porters Five Forces SPANCO (Tangible / Intangible) Recommendations Partners Conclusion Q&A References

02 07 10 11 12 14 15 43 45 46 47 48 49 50 51

CAFÉ COFFEE DAY - Introduction 

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Founded in 1996 India's largest coffee conglomerate, Amalgamated Bean Company Ltd

Coffee Trading

Strives to provide the best experience to their guests Pioneer of the café culture and the first to launch the ‗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 and plans to open across Middle East, Eastern 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 private equity arm of Franklin Templeton Investments, International Finance Corporation and Deutsche Bank Group hold stakes in Amalgamated Bean Coffee 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: 300 per café per day Average dwell time at café: 45 minutes Meeting place for 15-45 year olds

A place where :

 Students frequently visit most after ―home and 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 meetings (23% ), celebrating special occasions (20%) or just plain ―Time Pass‖ (57%).

Key Target Audience 

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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  

Café Coffee Day has its main consumer

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base in the age group of 16-30 years.

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POSITIONING   

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―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

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‖.

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

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 Weak brand image and lacks strength to maintain brand loyalty  Poor ambience and decor. (Prime space advertising and promotions)  Wrong site selection – Losses

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

SWOT OPPORTUNITY

THREAT

 Fastest growing industries in Asia.

 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.

 Preferred for informal meetings.  Gone international

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

Technological

Environmental

Legal

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

Wifi facility at every outlets and music Digital Marketing for promotions

Use Bio degradable products

Ethical 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

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Payment

Billing

Order –taking

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Information Menu Website Payment Credit Card Cash Privilege Card Billing - at the counter Order Taking Assisted by the attendee

SERVICE FLOWER Consultation

Enhancing Services  Consultation - Assistance  Hospitality - Food & Beverage - Music - Wi-Fi - Washrooms

 Safekeeping - Credit Card Security - Parking

Hospitality

Expectations Safekeeping

 Expectations - Happy Hours - Privilege Cards

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 si e they are all a out I a here, you a t iss e

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

PHYSICAL EVIDENCE

PROCESS AT CCD CCD exteriors

SUPPORT PROCESS

(On Stage) (Back Stage)

CONTACT PERSON

CUSTOMER

Customer Arrives at CCD

CCD interiors Ambience Interior design

Customer walks -in

Furniture

Menu

CCD boy/girl

Goes to the table

Views Menu card

Places order

Delivery CCD boy/girl Tray Food & drinks

Sits Chats Waits

Order received Eats

Requests for bill

Exit way CCD exteriors

Makes the payment Leaves

Line of interaction Greeted by CCD boy/girl

Takes order

Delivers the order

Accepts request

Hands over the bill to the customer

Line of visibility Informs about the order placed

Receives Food/Drink Data entry

Line of internal interaction Prepares Food / Drinks

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 offee produ ed o the Cafe’s far s, are distri uted through wholesalers and retailers to customers who wish to use the coffee at home.

FOCUS STRATEGY ANALYSIS Service Offerings

No. of Market Served

Narrow

Many

Few

Wide

Service focused Unfocused Café Coffee Day Premium CCD cafe outlets Cafes (Lounges)

Fully focused 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

Threat of Substitutes

(HIGH)

(HIGH)

Supplier's Power (LOW)

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...