Café Coffee Day

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Cafe Coffee Day pioneered the cafe culture in India and is now the largest cafe chain in the country.

Cafe Coffee Day opened its first cafe in 1996 in Bangalore and has since expanded to over 1000 cafes across India.

Cafe Coffee Day has divisions like Coffee Day Fresh 'n' Ground, Coffee Day Square, Coffee Day Xpress, Coffee Day Takeaway, and Coffee Day Exports.

Brand Management of

CCD
Branding, Awareness & Positioning of Café Coffee
Day
CCD
CAFÉ COFFEE DAY
1. INTRODUCTION

Café Coffee Day is a chain of coffee shops in India having its headquarters


in Chikkamagaluru, Karnataka. A division of Amalgamated Bean Coffee Trading Company Ltd.
(ABCTCL), it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996
on Brigade Road in Bangalore, and today has the largest cafe retail chain in India – with 1000
cafes in 141 cities.

Large number of coffee day cafes is located 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. It has even tied
up with WorldSpace and Microsense to enable its cafes
with satellite radio and Wi-Fi, respectively.

“TO BE THE BEST CAFÉ CHAIN IN THE COUNTRY BY


OFFERING A WORLD CLASS COFFEE EXPERIECNE AT AFFORDABLE PRICES”

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by
opening its first café at Brigade Road in Bangalore. Till about the late 1990’s coffee
drinking in India was restricted to the intellectual, the South Indian traditionalist and the
five star coffee shop visitors. As the pure (as opposed to instant coffee)
Coffee café culture in neighbouring international markets grew the need for a
relaxed and fun “hangout” for the emerging urban youth the country was clearly seen.

Brand Management Project on CCD Page 2


Identity of its own from a handful of cafés in six cities in the First 5 years, CCD
has become India’s largest and premier Retail chain of cafes with 251 cafes in 58 Cities
around the country.
Cafe Coffee Day introduced the cafe culture in India with its first cafe at Brigade
Road in Bangalore in 1996.There has been no looking back for their company from then
till now; in fact they have grown from strength to strength.
Cafe Coffee day is the regular meeting place for 18 to 35 Years old, both male and
female, who are waited on by friendly and informed staff, and are offered the best made
Hot or cold, in an invigorating ambience.
They provide invigorating ambience and excellent customer service clubbed with
excellent coffee to their customers. Each cafe depending upon its size attracts between
400 to 800 customers daily.

Café Coffee Day is the second largest in Asia, that is owned by a sister concern and from
11,000 small growers. It is one of India’s leading coffee exporters, with clients across the USA,
Middle East, Europe and Japan.

With its roots in Chikmagalur, the home to some of the best Indian coffees, Coffee Day has
its business spanning the entire value chain of coffee consumption in India. Its different divisions
include:

 Coffee Day Fresh 'n' Ground (which owns 450 coffee bean and powder retail outlets).
 Coffee Day Square (high level coffee bar. one in Bangalore.).
 Coffee Day Xpress (which owns 730 Coffee Day kiosks).
 Coffee Day Takeaway (which owns 9000 vending machines).
 Coffee Day Exports.
 Coffee Day Perfect (FMCG Packaged Coffee) division.
Brand Image
Companies address needs by putting forth a value proposition, a set of benefits that
they offer to customers to satisfy their needs. The intangible value proposition is made
physical by an offering, which can be a combination of products, services information
and experiences.

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A brand is an offering from a known source. A brand name such as cafe coffee day
and Star Bucks carry many associations in people’s minds that make up the brand
image.

• Starting from its first café in blare brigade rd in 1996, CCD now spans 107 cities
with a network of 806 cafes out-pacing nearest rival not only in terms of its width of
n/w but also in the constant innovations that the chain has institutionalized in every
aspects of business.
• Customer Service, Logistics and SCM service and various formats it has
experimented with depending on the target audience, mostly on youth.
• In 2008 most trusted brand.
CCD has become largest youth aggregator N has market stand point 3 A’s
(Accessibility, Affordability & Acceptability)

BRAND EQUITY:
Brand Awareness:
The CCD is one of the top recognized restaurants of coffee for a evening hang outs by the
people especially the youngsters. CCD is recognized as the south Indian Brand because of the
customer preference of the coffee is huge in the south India.
• Highly rated Taste & Quality of products:
Café Coffee Day got a high rating in the market survey, for the Taste & Quality of their
products. If they work on this aspect, there is huge potential for them to attract customers, just
based on the taste and quality of products. This is also helped by the fact that they grow their
own coffee beans, and this provides an important base for future expansion and growth. Café
Coffee Day even won the "Barista Coffee- Making Championship" for the Best Coffee.

 Value for money proposition:

Café Coffee Day is projected as an "affordable" brand. This strategy has worked extremely
well so far, and Café Coffee Day got a high rating, both for their prices and for their value for
money, in the market survey.

 Strong youth orientation:

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The Café Coffee Day brand is, and always has been, extremely youth- oriented. In a
country where over 40% of the population is under the age of 20, there is huge potential for
Café Coffee Day to become one of the country's largest youth brands. The untapped market
share and potential for growth is enormous.

Brand Value:
 CCD’s wide network - the anytime, anywhere café
 CCD has made a connection with the Indian consumers, predominantly among the youth
 Collective fun over coffee
 Hangout place
 Social hub
Brand Recall:
The logo colors signify:
 Red – Leadership, passion
 White Swirl – Purity of purpose, invigorating properties of coffee
 Green Stroke – 125 years of coffee growing heritage of this vertically
integrated group

The font used for “Café” is called SLURRY. The font looks as though the letters have
congealed (coagulated) out of a liquid.

It is Ranks No 2 in the Brand Equity’s Most Trusted Brands 2008 survey (food services
category). CCD - Best Exclusive Brand Retailer of the Year & Best Food Services Retailer of the
Year at the ICICI Bank retail excellence award in 2005.
CCD’s new brand identity: In October 2009, CCD unveiled a new brand logo, a Dialogue
Box, to weave the concept of ‘Power of Dialogue’. In accordance with this new brand identity,
CCD planned to give all its existing outlets a new look by the end of 2009. Cafés would be
redesigned to suit different environments such as book, music garden and cyber cafes suitable for
corporate offices, university campus or neighborhood. The change plan included new smart
menu, furniture design, among others.

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Need Want and Delight Of Café Coffee Day
 Timings: 9 AM TO 11 PM
 A popular hangout zone among youngsters,
 Cafe Coffee Day is a nice place to relax while sipping coffee.
 It is a place full of life and energy.
 It has an outlet in almost all the major areas of the city.
 Cafe Frappe and Iced Eskimo are quite popular among youngsters.

 For all lovers of chocolate pastry, choca VLoc sundae is a delight! Also try their
Coleslaw Cheese Submarine.
 Cafe Coffee Day is a neat and trendy place you'd love to be seen at. It has added
to the cafe culture of the city.
 Youngsters don't seem to
mind spending hours together
sipping a cup of coffee here!
Critiques on Ads & Web
Site:

CCD

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 Interactive alternative media
 Communicate message ‘ young at heart’
 Electronic, print and outdoor visual `and audio modes to a large section of the populace
 Promo Archive.
 Concentrates much on brand than products.

Point Of Difference
PODs are attributes or benefits consumer strongly associates with brand, positively
evaluates and believes they couldn’t find to the same extent with competitive brand. Associations
that make up pod may be based on virtually any type of attribute or benefit.
Ex: Cafe Coffee Day
Creating strong, favorable and unique associations is a real challenge, but essential
in terms of competitive brand positioning.

Unmatched quality and taste Aura of international modernity

CCD
“Y” generation trend
In colleges and corporate
campuses

To spread out coffee everywhere

• Aura of international modernity.


• Based upon the “Y” generation.
• To spread out coffee everywhere.
• Unmatched quality and taste.
• Coming up in colleges and corporate campuses.

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Points of Parity:
POPs are associations that are not necessarily unique to the brand but may infact be shared
with other brand these types of associations come in two basic forms category and competitive.
Category POP is association consumers’ view as essential to a legitimate and credible offering
within a certain product or service category. They represent necessary but not sufficient
conditions for brand choice. Consumers might not consider travel agency truly a travel agency
unless it is able to make air and hotel reservations, provide advice about leisure packages, and
offer various ticket payments and delivery options. Category pop may change over time due to
technological advances, legal developments, or consumer trends, but they are the “greens fees”
to play the marketing game.
Areas of Improvement:
1. Weak brand image:

The Café Coffee Day brand, although clearly a youth- oriented brand, lacks the power and
strength expected to maintain brand loyalty. The brand doesn't project a clear image to
customers about what Café Coffee Day is all about. This could prove as a deterrent during
future national and international expansion.

2. Inefficient human resources:

According to the market survey, Café Coffee Day's staff received only an average rating for
their behavior and service. Café Coffee Day needs to work hard at this aspect, especially
considering they are a service sector organization that is looking at large expansion.

3. Ambience & Décor:

The Ambience & Décor of Café Coffee Day outlets received a below- average rating from
respondents of the market survey. A lot of respondents did not like the fact that Café Coffee
Day outlets and literature served as prime space for a lot of advertising and promotions. They
felt as if the café's had been hijacked just for advertising.

Recommendations:
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Café Coffee Day has done extremely well so far to project itself as an affordable youth-
oriented brand. But there are still certain areas where their brand needs to be much stronger.
With regard to the physical evidence associated with the brand, Café Coffee Day needs to do a
lot of work. My first recommendation for Café Coffee Day is to clean up the décor at every
outlet, wherever unnecessary advertising is taking place. - Café Coffee Day would do better to
provide promotional space for its partners with the use of clever collaborations, and not printed
advertisements and posters everywhere. – The second recommendation is that Café Coffee Day
looks at its current recruitment, selection and most importantly, its current training policies. -
Customers are not happy with the behavior and service of the staff, and Café Coffee Day is
lagging far behind Barista is this aspect.

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