Marketing Management Project: "A Lot Can Happen Over Coffee"
Marketing Management Project: "A Lot Can Happen Over Coffee"
Marketing Management Project: "A Lot Can Happen Over Coffee"
Submitted by Group 9
The mission of Cafe Coffee Day - The mission of CCD is simple. To be the best Cafe chain by
offering a world-class coffee experience at affordable prices.
The vision of Cafe Coffee Day - Showing the world where coffee can take them
EXECUTIVE SUMMARY
Cafe Coffee Day is an Indian Multinational rm which established a chain of coffee houses in
India as well as overseas. The company’s mission is to establish the best cafe chain by offering a
world-class coffee experience at affordable prices. As it was the start of the Internet era, the
majority of business people and working professionals started visiting CCD for of cial meetings,
and professional hangout places and youngsters also started visiting CCD to spend time with
their friends, family and loved ones.
Thus from 1 outlet in 1996 CCD, CCD established 1752 outlets by 2019 and following the death
of the founder V G Siddhartha, increased debt and nancial crisis CCD’s outlets reduced to 900
outlets in 2022
Problem Statement
The coffee chain giant lost the charm of its appearance and the meaning of its tagline which
stated that of cial meetings and informal meetings can be positive with coffee has lost its
meaning because nowadays CCD became a spot of hangouts for youths during leisure time and
working professionals started visiting CCD just to spend their free time with family members or
friends. And the other issue for the above-stated problem is that Cafe Coffee Day failed to
choose the appropriate location for its outlets based on its targeted customers like business/
working professionals and youngsters
Primary objective: To Revive Cafe Coffee Day’s tagline - “A lot can happen over coffee” by
bringing back meaning to the tagline and amplifying its charm
Secondary objective: To complement the three types of CCD outlets (Cafe, Square and Lounge)
appropriate to the locations and the target customers in that speci c area or region
fi
fi
fi
fi
fi
A roasted bean from a tropical shrub called a coffee bean is roasted, powdered and consumed
with milk and water as a beverage. Thus the revolution of coffee started in the 15th century in
Arabia and spread to the continents by the 17th century. And then coffee becomes the second
most-consumed beverage after Tea in the world. A rm based on a Hill-station Chikmagalur
named Cafe Coffee Day is a global limited rm growing coffee beans in its estates of 20,000
acres. This rm has the largest production of Arabica beans in Asia, exporting to various
countries like the USA, Europe and Japan.
V G Siddhartha the founder of Cafe Coffee Day initiated the coffee chain’s rst outlet in 1996 in
Bangalore where 1 cup of coffee costs Rs. 25 with 1 hour of free Internet. During the Internet
boom era, the footfall at Cafe Coffee Day started increasing daily, with most of the people being
working professionals and Business people. By 2011 there were about 1000 cafes across India.
On July 2019, the founder V G Siddhartha was found dead and a letter written by him was found
stating that he failed to create a pro table business, as the company was neither able to clear its
debt nor earn pro ts, post his death his wife Malavika Hegde took over the company and cleared
the 80% of its debts by selling the company’s assets at the outskirts of Bangalore.
fi
fi
fi
fi
fi
fi
MARKET ANALYSIS
The current consumption of coffee in India is about 72 Mn kgs of coffee referred to data from
statista.com. The market growth of Coffee shop enterprises is expected to increase to Rs. 4540
cr. in 2023 with a compounded annual growth rate of 6.93%. The current market size of Cafe
Coffee Day is Rs. 1083 Cr. India which is 21.6% of the total coffee shop market in India including
independent and chain shops. The Coffee chain outlet is a fragmented market currently due to
an increase in more Coffee chain brands. Analysing the coffee consumption statistics in India
Urban Area has a consumption of 73% where Rural areas have a consumption of 27%, and 60%
of the coffee consumers are in Southern India in states like Tamil Nadu, Karnataka, Kerala and
Andhra Pradesh.
Competitive Analysis
There are major rising coffee chain brands in India as well as overseas invaders. The major
competitors of Cafe Coffee Day are Starbucks, Costa Coffee, Barista Lavazza etc.
Starbucks
Strengths Weakness
Strong brand correlation and public image Supply costs are high and volatile
Well maintained coffee Aroma, ambience and interior High product prices
Global Supply chain and Acquisitions Unhealthy foods with High sugars and calories
Costa Coffee
Strengths Weakness
It has a strong Brand recognition Limited number of store and market presence
Pleasant and peaceful atmosphere Unhealthy foods with High sugars and calories
Strong parent brand - Coca Cola Highly concentrated in UK markets than India
Barista Lavazza
Strengths Weakness
Strong brand name and brand visibility Customers perceive as an Expensive brand
Youngsters oriented marketing strategy Lack of Innovation and Creativity with technology
Excellence in Ambience decors and Human Resource Less variety of food items
From the competitor analysis, customer interviews, primary research and visit to the Cafe Coffee
day outlets it was found that the competitors have a good Ambience, Aroma and excellent
service when compared to Cafe Coffee Day. The CCD has a competitive advantage of a better
taste of coffee which was hand-made traditionally and most people support the design in which
the coffee is provided. And the major competitive advantage of CCD over the other brands is
pricing, as CCD makes their coffee beans from their estates the price of coffee is 30% lesser
when compared to other coffee chain brands. CCD is lagging in their Ambience and setting up
the right outlets at the right places to revive its tagline and increase its market size.
fi
fi
fi
fi
fi
fi
Product Strategy
Cafe Coffee Day Square and Cafe Coffee Day Lounge are premium coffee outlets
that Coffee Day Global ltd opened in 2009 and 2010 respectively with a menu
that’s expanded to offer more niche methods of coffee brewing, exotic teas,
elements of mixology (like coffee tins), and international cuisine to satisfy any kind of craving.
• Beverages include different types of coffees, shakes, tea and lemonades.
• Snacks at CCD include different types of sandwiches, Buns, Croissants and Garlic bread
• Desserts include Cheesecakes, brownies, cakes, sundaes and ice creams.
• Cafe Coffee Day Square menu includes Indian breakfast items such as Upma, Poha, and Masala Vada
and Starters like veg & non-veg Tarts, Nachos, Pani puri twister, Pizzas & Pastas, Noodles etc.
• Cafe Coffee Day Lounge menu includes bread, new cakes and pastries, veg and non-veg rice bowls,
wraps, salads and Biryanis.
• CCD also mentions calories in the menu and provides a list of the nutritional value of each of its items
from the menu on its of cial website. (https://www.cafecoffeeday.com/cafe-menu/nutritional-info)
• The Cafe Coffee Day outlets also sell coffee powder, coffee capsules, tea bags, mugs and sippers,
chocolate and cookies,
• CCD is also into business-to-business services like catering services and corporate orders. It also sells
vending machines, and coffee kiosks https://shop.cafecoffeeday.com/hotels
The main product that CCD sells is Experience. Experience that the target audience wants through its
foods, beverages, ambience and its other services. This gives an overview of the marketing mix product
strategy of Café Coffee Day.
Pricing Strategy:
• Based on its divisions, Cafe Coffee Day charges premium fees for its square and lounge areas while
keeping its prices low overall.
• For CCD retail outlets – the menu prices are between 100-500 INR (excluding add-ons that range from
19to45 INR)
• For CCD Square – The menu prices start from 205 INR to 705 INR
• For CCD Lounge- The
• Café Coffee Day follows value-based pricing in its marketing mix and offers its products in small,
medium, and large serving sizes.
• Also, by offering extra ingredients like chocolate toppings or extra cream as add-ons CCD prices
beverages at a premium range.
• In a nutshell, the pricing strategy is exible and through its reasonable and different prices, it caters to
customers in different market segments such as students and corporate personnel.
• The other sources of CCD’s revenue are selling vending machines and coffee kiosks to its business
clients.
fi
fl
• Earlier there used to be an app of CCD but they disabled it to improve some functionalities but have
not enabled it yet. They have an online ordering platform www.ccdonline.in
fi
fi
• CCD markets itself as a simple place where customers can call their own for a while, sit down, hang
out, and hold short meetings all over steaming cups of coffee and delicious meals.
• CCD position itself differently with its types of outlets. CCD square is positioned as a premium outlet
that sells single-origin exotic coffee.
• CCD Lounge positioned itself somewhere midway between regular cafes and CCD square, a more
comfortable place with various cuisines on the menu.
• When CCD rst came into the Indian market, it was so successful in making a revolutionary change by
developing a love for coffee in the hearts of the tea-drinking Indian population.
• But after the arrival of competitors like Starbucks, CCD is facing dif culty to maintain its positioning as
now it’s not the only premium Coffee Café in India.
Political (P)
• International Trade Agreements- CCD is the largest Arabica Beans producer in India and exports the
same to countries such as Europe, USA and Japan. Therefore, they have to follow International Trade
Agreements made with such countries which also helps in the success of CCD.
• Quality Standards- Since the brand is in the food industry it has to maintain quality standards and
related regulations.
• GST- The GST on coffee is nil which helps in the economic development of the brand.
Economic (E)
• Post-Pandemic- After coming out of the worst situations of the Covid Pandemic, the Indian economy is
recovering with increasing incomes of the consumers. This means consumers have more money to
spend. With this CCD is also growing. After being shut down during the pandemic it was able to
recover its earlier debts as its competitors were also not operating during that time.
• Consumer Expenditure Index- Consumer Expenditure Index is growing which is directly related to the
increased demand for premium coffee. Hence, CCD has to accordingly change its pricing and
promotion strategies to grab this opportunity to grow.
fi
fi
Social (S)
• Popularity among Millennials- Coffee is popular among millennials and Gen-X. This provides CCD
with an opportunity to target this new generation and accordingly compete with its competitors. The
brand should pay more attention to offering discounts to working professionals, students, and young
people to make them loyal customers.
• Changing Trends- CCD to cope with such hard competition, have to pay more attention to changing
trends. Trends are changing in lifestyles, growing urban population and working conditions. For
example, nowadays, middle-class people, old age people and working professionals want a place
where they can spend time and do their work. CCD should accordingly change its offerings to meet
such trends.
Technological (T)
• High Demand for Kiosk Ordering system- With brands like McDonald’s introducing a Kiosk Ordering
system in some of its outlets in India, the demand for such self-service technology is rising. CCD
doesn’t offer self-service, which is also a kind of service that people want but also faces a challenge if
people nd the Kiosk more convenient.
• No App- In a world where people prefer ordering food from mobile apps, CCD disabling its app post
a challenge for them but CCD does have a website for online orders.
Environmental (E)
• Offering Coffee in Ceramic cups- Unlike Starbucks which serves coffee in biodegradable paper cups,
CCD offers coffee in ceramic cups which ensures zero waste in the environment.
• Environmental norms- As CCD manufactures its coffee beans, it has to comply with various
environmental norms and standards.
• Carbon Foot Print- CCD focuses on carbon footprint in their value chain system. It should also
encourage its partners to follow rules regarding environmental protection and make them a part of
reducing climate change which will eventually help in the production of coffee.
Legal (L)
• Compliance with labour laws – In Coffee beans production, CCD employs various labours and
therefore has to comply with various labour laws.
• Programs and policies – CCD introduce a whistle-blower policy and several employee management
programs which encourages Employees and Directors to follow ethical behaviour and a code of
conduct.
• Consumer and Employee grievances- CCD guarantees that consumer and employee complaints are
addressed timely and correctly. Workplace harassment is not tolerated at CCD.
Point of Differentiation - Cafe Coffee Day
fi
• Hangout places for youngsters and Meeting points for Business/Working professionals
• The cafe can be used to organise events, client meetings and small celebrations
• Present in multiple locations in three types of outlets based on the different target customers
A lot can happen over coffee” which assures that all they need is a cup of
coffee and a lively environment to discuss it all struck the hearts of the
Indian youth. And that is what happened.
Identi cation of Gaps and ndings through Primary and Secondary research
• CCD’s unique and attractive tagline is “A Lot can happen over coffee”, the company came up with this
tagline because of the business meetings and of cial client meetings which used to happen in their
outlets. We can also see in Movies where business meetings and friend gatherings happening in
CCDs
• But nowadays CCD outlets are lled by friends and loved ones to spend their leisure time, this is also
a positive happening where CCD has a good reputation among youngsters as a favourite destination
• But it is felt that CCD lost the meaning of its tagline where they concentrated more on of cial
meetings which created a positive corporate feel today it is called a normal hangout corner
fi
fi
fi
fi
fi
fi
• Through our research we found that Cafe Coffee Day did not place their speci c outlet for a speci c
target audience at the desired locations, they did not improve their ambience and they did not do
any promotions where people are not aware of which Cafe Coffee Day outlet is for what purpose
• Thus we conducted primary research where we used a strati ed sampling method, in which working
professionals are our target samples, to revive the meaning of the Tagline and to structure a
marketing plan to establish the right outlet at the right location
• Based on the interview conducted with the CCD customers it's known that the service was not good
at some outlets, the location was a problem and CCD lacks the coffee Aroma that Starbucks has at
their outlets
fi
fl
fi
fi
fi
• Students and Working professionals in Urban cities opted for The Lounge and Value express cafe
Objectives:
Primary objective: To Revive Cafe Coffee Day’s tagline - “A lot can happen over coffee” by bringing back
meaning to the tagline and amplifying its charm
Secondary objective: To complement the three types of CCD outlets (Cafe, Square and Lounge)
appropriate to the locations and the target customers in that speci c area or region
fi
Market
Penetration
Based on the primary and secondary research done on CCD the existing market situation and CCD
outlets are suitable and have a good reputation in the market. CCD has to establish their presence by
penetrating through the right market location with the right type of outlet.
Market Development
Based on the project objective, the perceptual mapping of the outlets is done based on the
perceptions of the potential customers concerning the locations of Cafe Coffee Day outlets.
Metropolitan cities
Urban cities
Positioning refers to the process that involves creating or placing an identity or image of
the brand/product in the minds of the target customers.
Promotional Strategy
• With an increase in demand for places/cafés to hold unof cial or of cial meetings by working
professionals, CCD is successful in changing its market offering by introducing Huddle Rooms (Private
cabins) in its Square outlets. But they need to revive its tagline by bringing back the old charm in it.
They have to keep in mind not only young people but also working professionals.
• They have to advertise more and change their promotional strategies to attract working professionals.
• CCD has to pay more focus to the trends and how it can make itself different from its competitors.
fi
fi
• To increase customer engagement with CCD, they can introduce social media competitions offering
rewards and discounts for the winners of the campaign. For example, Making creative reels with CCD
coffee cups with the Hashtag #coffeewithccd where the best reel would be shared on the of cial CCD
page
• To revive its tagline and to cover Business people, CCD can introduce Television Ads. Where a
Business meeting gets succeeded while having a meeting at the CCD - The Square Huddle rooms
Features
•Free Wi-Fi
•Presentation Screen
•Single Origin Coffees
•Gourmet Cuisine
•Valet parking
fi
References