CHAPTER I

BACKGROUND

Today Coffee has become a lifestyle. Also, it has caught the fancy of today's generation -

youth. These were not the typical coffee drinking target customers. But now they are a big

part of the target base for coffeehouses. And it is fashionable to be seen at the Coffee Pubs. It

is in a way, a lifestyle statement. That is bad news for tea - still the favourite brew for a

majority of Indians, which has been losing out to coffee in recent years. India is one of the

world's largest exporters of tea and also one of its biggest consumers. But it is coffee drinking

which is increasingly becoming a statement of young and upwardly mobile Indians. And

coffee bars, an unheard of concept till a couple of years ago, are suddenly big business.

Corner bars like these are offering more than just coffee and snacks to their customers. For

many of their regular patrons, a visit to these bars is also a part of the western lifestyle they so

much want to identify with. The Coffee retailing sector in India is booming today, with

several companies active in the market. Some are local entities, some have come from abroad

and have tied up with local companies, and some seem to prepare themselves for an entry

sooner or later. The market growth is expected to be 20 to 30% annually in the next couple of

years.

The first Indian Coffee House started on 7 August 1958 in Thalasserry.

Coffee had been grown in India by native Indians since the 16th century. However, the

concept of coffee houses began to gain a little popularity in the 18th century in Chennai

(Madras state) and Calcutta. However, as part of the racial discrimination policy of the

English rulers, native Indians were not allowed into these coffee houses, which were mainly

During the late 1890s, the idea of an "India coffee house" chain was formed.

The India Coffee House chain was started by the Coffee Committee in 1936, when the first

outlet was opened in Bombay. In the course of the 1940s there were nearly 50 Coffee Houses
all over British India. Due to a change in the policy in the mid 1950s, the Board decided to

close down the Coffee Houses. Encouraged by the communist leader A. K. Gopalan(AKG),

the workers of the Coffee Board began a movement and compelled the Coffee Board to agree

to handover the outlets to the workers who then formed Indian Coffee Workers' Co-

operatives and renamed the network as Indian Coffee House. A co-operative began

in Bangalore on 19 August 1957, and one was established in Delhi on 27 December

1957. Later Bellary and Madras (Chennai).

The coffee market in India has been growing due to the demand for Ready to Drink

Coffee and has become a part of an individual’s daily consumption basket. Due to

Changing cultures, consumers are becoming aware of domestic and foreign brands, which are

boosting the consumption levels.

The export promotion schemes and other subsidies by the GOI, and increasing trend of

eating out coupled with the rising share of young population has driven the market. Well-

established coffee shop chains, such as Cafe Coffee Day (CCD) and Barista, enhanced their

pan-India presence in the latter part of the review period. In 2010, Cafe Coffee Day and

Barista had 970 and 200 stores, respectively, and they aim to continue expanding in the next

few years. Meanwhile, several relatively new players, such as Costa Coffee, Coffee Bean,

Gloria Jean’s and Java Coffee, are trying to establish a footing in Indian coffee retailing. Both

these factors drove on-trade consumption of fresh coffee beans in 2010, with volumes

growing by 12%. On-trade sales have emerged as the primary sales channel for fresh coffee

beans, in the absence of any appreciable off-trade consumption.

In 2010, the average bill amount at coffee outlet was between rupees 135 and 150. This is

expected to rise to rupees 245 by 2016. With customers paying significant amount for their

coffees, they are also expecting a lot from an outlet. Factors such as menu, ambience, service

and brand name are playing an important role while choosing a coffee outlet.
Indian Coffee Chains market is quite mature which is evident from the fact that Café Coffee

Day alone maintains more than 1000 Café’s in 141 cities in India. This forms the main focus

of this project.

RESEARCH METHODOLOGY:

Research methodology refers to the approach by which data is extracted to be clearly

understood. The development of strategy for conducting research is the step after identifying

a problem and completion of the literature review. This chapter will therefore discuss the

following:

Research Methodology of the proposed research study

The research methodology mainly includes the following points:

Sources of information:

The research makes the use of both Primary Data as well as Secondary data sources as the

case may be.

Primary Data:

The primary Data is collected from the consumers of Café Coffee day and Starbucks.

Secondary Data:

The secondary data is collected from publishing by search engine, newspapers, books,

Magazine, journals, websites and other relevant information.

Research instrument:

The researcher is put to us structured questionnaire to get the responses from the consumers.

Sampling decisions:

Sample Frame:

The representative sampling unit in appropriate and justified size is conveniently drawn from

youth of Baroda city.

Sample Size:
In the present study, sample size is the regular consumer of Starbucks and Café coffee day

based in Vadodara.

The sample size of the study is 102.

Sample Design and Methods:

Non Probability sampling design and Judgment sampling method is used for the proposed

research study.

RESEARCH DESIGN:

Descriptive and explorative type of research design of the proposed project work considers its

objectives, scope and coverage will be explored.

TARGET POPULATION:

The target population refers to the specific group relevant to a particular study. In other words

it can be explain that a population is a group of individual or objects that have the same form

of characteristics. The target population for this study mainly includes regular consumers and

workers.

DATA COLLECTION TOOLS AND PROCEDURS:

There are numerous ways of collecting data and these depend on the purpose and aims of the

research. In this study data is collected by means of questionnaires. Data collection involves

contacting the members of the population that will be sampled in order to collect the required

information about the study.

DATA ANLYSIS AND INTERPRETATION:

Data analysis and interpretation that involves editing, coding, classification and tabulating of

collected data.

Qualitative and quantitative was used to analyze questionnaire method.

This study uses frequencies and percentage because they easily communicate the research

finding to majority of readers. Frequencies easily show number of subjects in a given

category.

Data analysis and interpretations would be done with the help of diagrams and tabular graphs

and various statistical techniques or tools which are suitable.

VALIDITY OF THE STUDY

The validity of research instrument is the extent to which such an instrument is able to

measure what it is supposed to measure, which is based on the research results. Hence,

validity refers to the degree to which results obtained from the analysis of the data actually

represent the variables under study. In this research, the instruments used will be validated in

terms of content validity. The content related technique will measure the degree to which the

question items reflect the specific area covered.

SCOPE OF THE SYUDY:

The scope of this research is to make a study which will be helpful to the marketers to

understand the consumer offer services mix of the respective nature.

This study will try to cover the aspects of the SERVQUAL model and test the consumer

preferences, Perceptions and attitudes towards Café Coffee Day and Starbucks.

LIMITATIONS OF THE STUDY:

Every research has limitations and every researcher faces the limitations and the limitations

that I had face are:

 The size of the sample of present study is small in nature.

 The time factor in collecting the responses is a limiting factor.

 As the data is collected through the questionnaire there are possibility of

respondent’s bias.
  It is difficult to know whether the willing respondents are truly the

representative or not.

OBJECTIVE OF THE STUDY

 To study about the customer preference towards Cafe Coffee Day

 To study the various factors influencing the customer to visitCafe Coffee

Day

 To study about the attitude of the customer towards the Cafe Coffee Day.
 CHAPTER II
Introduction: Coffee Basics

Coffee is one of the world's most popular beverages. Some claim it is the most widely

consumed liquid in the world aside from water. Coffee is more than a beverage, however. It

is a memory, an anticipation, a lifetime of consoling moments of modest pleasure woven into

our lives. Coffee's success as a beverage undoubtedly owes both to the caffeine it harbors

and to its sensory pleasure. Coffee lovers come to associate the energizing lift of the caffeine

with the richness and aroma of the beverage that delivers it. Coffee is produced from the

seeds of a small red fruit that grows on plants halfway in size between shrub and tree. The

process that turns these seeds into beverage is a long and complex process, perhaps the most

complex process associated with any major beverage.

How Coffee is produced

Specialty coffee is a multicultural and culinary work-in-progress. By the time coffee is

consumed, it has been subject to at least seven momentous processes carried out by seven

potentially unrelated parties resident in anywhere from two to four parts of the world. Unlike

fine wines, which are often bottled by the same people who grow the grapes and produce the

wine, coffee is not bottled and is not just purchased, opened, and enjoyed by the consumer.

The process of bringing coffee from the crop to the cup is kicked off by someone who grows

and picks the coffee fruit. A second party (usually) buys the fruit and removes the soft, fruity

parts from the seeds, then dries the seeds (now called beans), two steps together known as

processing and both crucial to the ultimate quality and character of the coffee. The processor

usually sells the dried beans to a third party, the exporter. The exporter may blend beans from

different processing mills before bagging and shipping them. A fourth party imports the

coffee into the consuming country, though in most cases he spares it any further

manipulation, confining himself to passing judgment on it and selling it to a roaster. At this

point the coffee is subjected to perhaps the single most influential act of all: roasting. The

roaster also may blend beans from a variety of crops and regions. The retailer performs a

simple but very significant service: handling the coffee sensibly and selling it before it gets

stale. Finally, the consumer buys the coffee, grinds it (usually), and finally produces an actual

beverage. But we're not even finished here. The consumer, before enjoying this meticulously

grown, processed, roasted, blended, and brewed coffee, may any number of dairy products,

sweeteners, or flavorings, all with differing effects on the final beverage.

WORLD OVERVIEW

The coffee industry worldwide is still being haunted by uncertainties. The coffee price crisis

could not be defused. It's a long drawn process. As such no legal and political basis are

inexistence for direct market intervention. According to the International Coffee Organization

(ICO) market report for May 2004, world exports by exporting countries stood at 85.70

million bags during the 12-month period (June 2003 to May, 2004) signifying 3.81 percent

decline compared with 89.10 mn bags. Exports in the first 8 months of coffee year 2003/04

(October,2003 to May 2004) were down 3.17 percent to total at 57.33 mn bags compared

with 59.21 mn bags in the previous year. Exports during calendar year 2003 stood at 85.22

mn bags signifying a decline of 2.67 percent compared with the same period in last coffee

year which recorded exports of 87.56 mn bags.The coffee culture has caught up in Indian

cities today. The hip and happening, the young and old alike, students, professionals throng

the coffee parlors that have become a rage. The outlets of Barista, Café Coffee Day in the

various metros have added a new dimension to coffee. Many may even advocate the fact that

‘chai’ is out, and ‘kapi’ is in today!Coffee so long was the prerogative of the South Indian

homes. Having a steaming cup of filter coffee along with the morning newspaper was a

regular feature for an archetypal South Indian – be it a Tamilian, a Keralite, an Andhraite or

even a Kanandiga. Coffee was not a regularly favored beverage in a majority of Indian
homes, till a few years back. Coffee was kept for the most privileged guests! Also the

intellectual had a strong relationship with coffee, with the Coffee Houses being a seat for

intellectual exchanges, debates, literary forums.

Thanks to the coffee chains, today coffee has occupied a place in the common man’s menu.

Coffee is hip and for the hep!

The Coffee Board

The Coffee Board statutorily consists of a Chairman and 33 members appointed by the

Central Government. These members represent various interests - growers, traders, curers,

labour, consumers and the Government.

Until 1992-93 coffee marketing was wholly administered and regulated by the Board.

Reflecting government policy and responding to the views of the growers, a process of

liberalization was initiated by the Board during 1992-93. An Internal Sale Quota (ISQ) was

introduced. This allowed growers to sell 30 percent of their output directly to the domestic

market. The ISQ was replaced by a Free Sale Quota (FSQ) in 1993-94 which allowed

growers to sell 50 percent to the domestic market or export directly. The FSQ was increased

to 100 percent to small growers and 70 percent for large growers in 1994-95. In the

subsequent season large growers were also given 100 percent FSQ. Now all restrictions have

been abolished. As a consequence, the Coffee Board is actively devising new roles for the

changed free market situation. Most small growers prefer to sell coffee in the form of dry

cherry and parchment. Many private buyers who are active in the coffee-growing zones buy

coffee directly from growers. Larger growers and estates sell coffee in green and graded form

either directly to exporters or by private auction. The coffee is processed to the quality

specification of the Board before it is exported or auctioned. Domestic distribution of coffee

takes place through wholesale and retail roasters.

India's Domestic Coffee Market

India accounts for about 4.5 percent of world coffee production and the industry provides

employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for

70 percent of country's total coffee production followed by Kerala (22 percent) and Tamil

Nadu (7 percent). Europe accounts for about 70 percent of India's total coffee exports.

Major Indian coffee importing countries include Italy, Germany, Russian federation,

Spain, Belgium, Slovenia, US, Japan, Greece, Netherlands and France.

Despite being the traditional exporter of coffee, India does not rank even among top 11

exporting countries to Germany, where India exports maximum amount of its coffee. Further,

a report by World Trade Organisation indicates that in the post-WTO regime, coffee prices

have fluctuated widely from year to year. In last few years Indian coffee industry is

witnessing flat export performance. In fact, it dropped further, during 2002-03 fiscal year by

little over 13 percent- from 2.14 lakh tones in 2001-02 to 1.86 lakh tones in 2002-03. India's

domestic coffee market is estimated at around 55,000 tones to 60,000 tones. Besides the per

capita consumption has declined from 80 grams in 1960-61 to 55 grams in 2001-02. On the

other hand, the consumption of tea, a close substitute for coffee has increased from 296

grams to 657 grams during the above time periods (GOI, 97-98). With the market size of

about Rs.1600 crore, the domestic coffee market is very important and has a potential for

growth in the beverage market. A stable and growing domestic market assumes a great

importance to the Indian Coffee growers, distributors and coffee processing companies.

Promotional campaigns to increase the demand must be through generic marketing and

advertising. In this context it becomes essential to understand the nature of demand function

for coffee in the domestic market. If the price sensitivity of coffee demand is low then it

justifies the use of non-price factors such as advertising and generic marketing campaigns to
promote coffee demand. The two main reasons for the slow increase in demand for coffee in

India can stated as follows:

1. Coffee is considered as a gourmet drink confined to middle class literate segment.

It has still not penetrated the low-income groups as tea did.

2. Coffee is an acquired taste and habit formation is an influencing factor in

consumption. Coffee is considered as more expensive than tea, and needs more

sugar and milk for preparation than tea.

A study conducted by IIM (Ahmd) on coffee demand, by applying the Error Correction

Model to quarterly time-series data, estimated the short-run and long-run price elasticity

of demand and the influence of other variables on the demand for coffee. The results

showed that although price elasticity of demand for coffee is low, it is much lower in the

short-run than in the long-run. This suggests that temporary price incentives will not

achieve any significant demand increase. Moreover, coffee demand is characterised by

habit formation. Therefore, demand for coffee can be increased by non-price factors like

improving quality standards and communicating the same to the consumers via generic

promotion campaigns and/or brand advertising.

Why are coffee bars getting popular ?

While any diner can offer someone a cup of coffee or tea, people are getting tired of the

ordinary. They are willing to pay much more for gourmet coffee or teas. It is an inexpensive

way for them to pamper themselves. Coffee and tea put a smile on people’s faces. People are

creatures of habit. If they find an environment and a good cup of coffee they will keep

coming back for more.

Why do people visit coffee shops?

Coffee shops is a place where the world meets. It boggles the mind to see the kind of people

sitting there, what they're doing there, etc. A lot of them actually come alone as well. This is

actually one of those places with people coming in alone because they are comfortable with

themselves. It is a place where people are meeting each other in an environment, which is

fulfilling social and intellectual needs. The music is not too loud and encourages

conversation, and the person behind the counter is non-intrusive and friendly. Any consumer

knows that even in a crowded espresso bar, you will have your share of privacy. This is

because the other consumer is not listening in; he is too involved in himself.

What are the competitors doing to get the customers or what new innovative techniques

they are adopting to attract more customers.

Barista

They have strategic tie-ups. We had a strategic tie-up with the Star Group, which was a

powerful platform to work with. We're also doing something with Elle 18. They're launching

a collection of coffee colored lipsticks and have named it after our beverages! So we're

working with Elle 18, which is a youthful brand. And we'll both grow with this association.

For Elle 18, the objective is to build a platform for their range of coffee colored lipsticks and

for us, the objective is to associate with the brand and have their consumers coming in to us.

Café coffee day

They want to add to the excitement of our customer by offering exciting and adventurous

associations. Last year in 2003 they launched the ‘Treasure Hunt’. It was a stupendous

success. Then, they had some activities, exciting and adventurous in spirit, with Levi’s and

Airtel. These are all youngster-related activities since they have loyal and regular customers,

and so we keep doing these in-house activities. Then, they have a Café Coffee Day Citizen

Card, by which we send invites and other interesting information to the customer.
WHAT NEW IS THE CUSTOMER LOOKING FOR WITH REGARDS TO USP ?

First and foremost thing what I would be doing is that the rate of the products will be less

compared to other coffee shops.

Concessions will be given to college students.

Birthday celebrations at a nominal rate.

Menu card will be in the form of cup and saucers and all the products related to our product

will be displayed in our shops.

The colour of the outlet will be very attractive to the customer.

Café life will be a whole lot of fun with local comedians, artists and fun makers organizing

events And as usual compared to the other coffee shops the first preference will be for the

quality of the product, service provided etc.

 CHAPTER III

STAR BUCKS

Starbucks started operations in 1971 at the Pike Place Market in Seattle. Original owners

were Jerry Baldwin and Gordon Bowker, where their initial aim is to set up a store and bring

high quality whole-bean coffee to Seattle instead of offering coffee by the cup. In year 1982,

the company changed its direction after the recruitment of Howard Schultz as director of

retail operations and marketing of Starbucks. Schultz utilized the ability of Starbucks and

opened a new coffeehouse in Seattle; adapt the Italy espresso bar concept with varieties of

brewed coffee for Seattle coffee lovers. The test was a great success, but the owner decided

not to expand the concept, and this disagreement caused Schultz to leave the company in

1985 and start his own coffee-bar company, II Giornale by year 1986 with his partner Dave

Olsen. The next year, 1987, II Giornale decided take over Starbucks with total

USD3.8million cost. Schultz had great plans for expansion, with the based of 11 stores in

1987, Starbucks opened 15 new stores in 1988 and 20 in 1989, total of 165 stores in year

1992. The same year, Starbucks listed on NASDAQ and the IPO raised USD29million for

Starbucks and by the closing bell the company’s market capitalization stood at

USD273million. The growth was estimated 200% per year increasing after 5 years after

Schultz and company bought over. In order to go further steps of expansion, Starbucks

formed more strategic partnerships to gain from their targeted customer, such as United

Airlines flight, Host Marriot, Aramark group, Kraft, tobacco giant Philip Moris, and many

others. In 1996, Starbucks opened its first store outside US and Canada in Tokyo, this was

achieved through joint venture with Sazabu Inc. Starbucks now operates about 1,200

international outlets, there are 850 Starbucks located in Fourteen Asian and Pacific, which

are:- Japan, Singapore, Philippines, Thailand, Malaysia, South Korea, Beijing, Shanghai,
Hong Kong, Macau, Australia, New Zealand, Taiwan, and Indonesia. Starbucks’ vision

is to establish the company as most recognized and respected brand in the world. The core

value of Starbuck is actually “relationship”, it creates a great working environment and treat

each other with respect and dignity. Schultz and company strongly believe “relationship” is

essential to motivate the whole company to build a trustful, and long terms relationship with

customer and business partners.

Situational Analysis

 General Environmental Analysis

 Economic view

China market recovered rapidly after Asian financial crisis in 1997, considered the fastest

growing market in the world in terms of gigantic population and the overall rising economic

growth. Foreign investment increase drastically after China entering the World Trade

Organization, which occurred because of cheap labour rates and manufacturing costs, the fast

developing economy attracted investors from various industries in worldwide. And these

factors had created a good Starbucks’ supplier network in China and generate more high-

income potential customers for Starbucks. The demand of China domestic market is

inestimable during that period, and the stable economic environment promises investor like

Starbucks a bright future.

 Social view

Globalization on China’s economic development affect the young generation of Chinese

customers have been the most susceptible to the western trend. Because of the rigid

government legislation, which allowed Chinese people to have only one child, and it caused

the purchasing power increased for those young married couples and willing to spend more

money on recreational issue. The change of culture influences many aspect of people’s life.
Nowadays, more Chinese is pursuing high quality of living environment; the increasingly

wealthy Chinese people are willing to pay more for new experiences and better products of

service. These social facts created a good potential market for Starbucks.

 Political view

China market was slowly opened to foreign trade and investment after year 1978, Deng

XiaoPing controlled the country. Under his rein, China abandoned the old planning and

slowly moving towards globally. In 2001, China started to share the same rules as global

market after entering the World Trade Organization (WTO), it also makes the internal policy

more transparent in order to protect the interest of foreign investors. It also helps in reducing

government intervention in privately owned business and attracting more foreign investment

to the country. All these development supplied great opportunities for foreign investors.

Industry Analysis

 Economic view

Tea, consist more than 40 percent of total market value, leading the China beverage market.

The competition of both tea and coffee is fierce as both can be substitute to each other. It

faces competition from mainland and also foreign investor, many direct foreign competitors

looking the opportunity and penetrates into China market, such as Seattle Coffee Chain, Ding

Haom and even McDonald’s is entering coffee business, the amount is increasing from year

to year. Compare to year 1999, there is a increased of 73 percent in China Food and Beverage

industry in 2002, estimated 20 percent growth average from year 1999 to 2002.

 Social view

Tea is a tradition beverage in China. Some conservative groups in China believe that it will

be difficult to develop Coffee market and replace Tea. But, the change of culture have made

the difference, an expanding group of wealthy and young people who an enthusiastic about

chasing “taste” and “fashion”. This Petty

Bourgeoisie group not only drink coffee but require high–quality coffee. They are the typical

consumers of foreign brands and it is also the target customer of Starbucks. To them, coffee

means only Starbucks and equal quality assurance.

 Political view

Although government function strained by law frame of the WTO, foreign investors is still

facing the unexpected difficulties to apply special government investment license, in some

small cities, bribery is necessary to get the license. The Sixteenth Communist Conference

further ensured that the opening policy will continue to protect the interest of foreign

investor. In terms of leadership changes and province leaders, who normally held their

position until age seventy, were replaced earlier than usual to maintain the competitiveness

and make sure the decision made is matched with the global requirements.

Market Analysis

After reviewed the findings above, potential customers were classified into two groups,

which were “wealthy and young people group” and “bourgeois group”. “Wealthy and young

people group” – Age (18~28), who are enthusiastic about chasing “taste” and fashion”, and

with high purchasing power.

“Bourgeois group” – Age (25~40), whom required a comfortable space with relaxed

atmosphere beyond home and office, for business discussion or chitchat. With such

requirement, high quality products and store environment is the keys to remain customers’

loyalty.

China market covers a wide geographical area, the unbalanced distribution of income define

the potential market, as the sixty percent civilian wealth in the cities is owned by nine percent

of the population, the social unbalance issue become a criteria when select the store location.

In choosing locations, Starbucks chose the most expensive locations to maximize brand

share, one of the promotion strategies to attract the bourgeois group customers. To make
Starbucks coffee convenience goods in China, Starbucks applied the same strategy as in US,

the coexistence of several Starbucks branches in the same area, which stimulates

consumption.

SWOT Analysis

 Strengths

The main strengths of Starbucks come from the company’s brand image as well as the high

visibility that the company has in various markets. Additionally, Starbucks also has

experienced and competent workforce that ensures that quality services are offered to the

customers. The existing relationship with supplies of coffee beans also means that

Starbucks is able to get quality coffee all year round.

 Weakness

Even though there are a few weaknesses, the main weakness can be argued to come from the

company’s overreliance on its CEO since its inception implying that the company might

struggle if the CEO was to leave Starbucks.

 Opportunities

One of the major opportunities for the company is that there exist various high potential

markets that the company can expand its operations into.

 Threats

The ever increasing number of the competitors in what can be described as an already

overcrowded market can be argued to be one of the major threats to Starbucks.

Marketing Assessment Plan

From the PESTLE as well as Porter’s five forces analysis, it is evident that Starbucks has to

develop effective marketing strategies in order for the company to be successful in the

various markets that it operates in. The following are the proposed marketing strategies that
should be adopted by the Starbucks during the next three years;

 Segmenting the market

Starbucks needs to segment the market into various markets in order to ensure that the needs

of each segment are met. It is only after the company has segmented the market that it can

be able to developed different products that can appeal to different segments.

 Product Differentiation

The production differentiation strategy that has been adopted by Starbucks as discussed by

Thompson, Shah and Tomas (2006) should be further developed in order for the company

to ensure that different products are available fro different types of customers. In addition,

may be Starbucks could consider developing new products that could be retailed by major

retailers. For example, Starbucks could enter into agreements with major retailers like Wal-

Mart to retail Starbucks sandwiches.

 Customer Service

In order for Starbucks to be successful, the company has ensure that the customer service is

friendly at all times in order to ensure that the customers are always satisfied which will in

the long run result to repeat purchase as well as loyal customers. In order to ensure that that

the customers are satisfied, Starbucks should establish feedback collection mechanism that

would

 Three Year Strategic Proposal

Provide customers with the chance to explain their views about the company’s offering as

well as what could be done in order to ensure that what the company offers appeals to the

customers.

 Promotion Strategy

Promotion can be defined as an activity that is aimed at raising the awareness of a particular

product or brand. As discussed by Thompson, Shah and Tomas (2006), Starbucks has
adopted various promotion strategies throughout the years in order to ensure that potential

customers are aware of the company’s service offering. From that perspective, Starbucks

has to keep on implementing various promotion strategies in order to ensure that the

company’s brand image is enhanced. In addition, the various promotion strategies adapted

by Starbucks ensures that the company manages to position its coffee as the ultimate coffee

in the market.In conclusion, during the next three years, Starbucks should implement

marketing strategies that would help enhance the Starbucks brand in markets where the

company has already established presence while in new the new markets, the marketing

strategies should aim at positioning Starbucks as the ultimate place where one can enjoy a

cup of coffee.

Financial Plan

From the figures given by Thompson & Shah (unknown), with the exception of year 2009,

the net revenue of Starbucks has been consistently on the increase since year 2005.

Furthermore, financial figures posted by Starbucks (2012) indicated that the company’s net

revenues increased in the fiscal year 2010 with an 8.4% increase. Moreover, the income from

the various international markets has also been on the increase over the years with the

exception of year 2009 implying that the company is on the right path. On a wider

perspective, the increased revenues means that the company has also been increasing its

market share something that will help the company retain its market leadership position in

the sector.

Three Year Strategic Proposal

From that perspective, Starbucks financial objectives for the next three financial years should

aim at continuing the trend of increasing sales revenues with a target of 20% increase per

year while at the same time; the company should also aim at increasing gross profit with 15%

increase every year for the next three years

 CHAPTER IV

CAFÉ COFFEE DAY

 Origin

A traditional family owned a few acres of coffee estates, which yielded the rich coffee beans

in the soil of Chikmagalur, However they soon amalgamated with Bean Coffee Trading

Company Limited, now popularly known as Coffee Day. The coffee growing tradition was

since 1875, but the opportunity after the deregulation of the coffee board in the early nineties.

Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan. In the

calendar year 2000, Coffee Day exported more than 27000 tonnes of coffee valued at US$ 60

m to these countries and, for the second time in its short career of 7 years retained the

position as the largest coffee exporter of India.

 About Coffee Day

Coffee Day has a wide and professional network in the major coffee growing areas of the

country comprising over 50 agents and 50 collecting depots. Coffee Day's two curing works

at Chikmagalur and Hassan cure over 70,000 tonnes of coffee per annum, the largest in the

country. Coffee Day has a well-equipped roasting unit catering to the specific requirement of

the consumers. The process is carried out under the control of experienced personnel to meet

highest quality standards. The most modern technology available is used to maintain

consistency and roast the coffee beans to the demanding specifications of the discerning

coffee consumers.

 Key Features:

 125 years of coffee growing history

 A fully equipped ISO certified roasting plant with a 70000 tonnes per annum capacity at

Hassan
 5000 acres of self owned Coffee Plantations

 A ready and enviable base of more than 10000 suppliers

 Among the top exporters of coffee in India (Coffee Day Exports)

 Coffee Day Comprises of the following Sub Brands

 Coffee Day - Fresh & Ground

 Café Coffee Day

 Coffee Day – Vending

 Coffee Day – Xpress

 Coffee Day – Exports

 Coffee Day – Perfect

Café Coffee Day currently owns and operates 169 cafes in all major cities in

India. It is a part of India's largest coffee company named Coffee Day, ISO

9002 certified company. Coffee Day's most unique aspect is that it grows the

coffee it serves in its cafes. Cafe Coffee Day's vending machines have a special

niche in the market compared to competitors because Cafe Coffee Day

machines offer filter coffee unlike the instant coffee offered by competitors'

brands. Growing from a coffee exporter to a coffee parlour, café coffee day has

certainly come a long way in this segment.

Cyber cafés

at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhicombine the urge to surf, not

to mention get connected through the internet whileenjoying perfectly brewed cups of

coffees, both domestic as well as International blends. Other media, such as electronic, print
and outdoor, offer brand communicationthrough visual and audio modes to a large section of

the populace, both relevant andirrelevant. Café Coffee Day offers a much more interactive,

targeted communication,sometimes adding even a taste dimension to a brand ideal. Various

in-café collateralsused to impart visibility to a brand inside a café or to add the element of

interactivityto a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures, Coasters,

Drop boxes, Contest Forms, Stirrers, Standees etc. Over the years, CCD has successfully

promoted a number of brands/products/events through various innovative tactics and promo

ideas. Cashing in on its mass captive audience, we at CCD have entered intotie-ups and

promotions which are well knit with our brand promise and which can becreatively used to

woo the Indian Youth.

Organizational Policies:-

Cafe coffee day only gathers personal information, such as, first and last names, addresses

and email addresses, when voluntarily submitted by you. For example, personal information

may be collected from you in order to get your feedback on our Online Services and our

products or to enter you in one of our contests or sweepstakes. You may choose not to

provide the requested information, but in that event the Site or Mobile App may not function

correctly or certain functions may not be available. In addition, when you visit our Web Sites

or Mobile Apps, we may collect certain information by automated means. The information

we collect may include your Internet Protocol (IP) address, computer/mobile device

operating system and browser type, type of mobile device, the unique device identifier

(UDID) or mobile equipment identifier (MEID) for your mobile device, the address of a

referring web site (if any), and the pages you visit on our Web Sites. We may use this

information to operate, maintain, and manage our Online Services and to provide services

such as technical support. We provide additional information regarding our use of "cookies"

in this Privacy Policy below.

Mobile Device and Location Information.

Mobile Apps and mobile versions of our Sites may collect precise information about the

location of your mobile device using location awareness technologies such as GPS, Wi- Fi,

and Bluetooth or cell tower proximity. Cafe coffee day uses this information for location-

based services that you request such as locating nearby Cafe coffee day restaurants or

identifying special offers that may be of interest to you, or personalizing your interactions

with McDonalds. For most mobile devices, you are able to withdraw your permission for

Cafe coffee day to acquire this information on your location through the device settings. If

you have questions about how to disable your mobile device's location services, we

recommend you contact your mobile device service provider or the device manufacturer. If

you would like us to delete location information we have collected, please contact us at the

email or postal address listed below. Please note that the applications may not function

properly following deletion, and that we may be required by law to retain certain information.

Sharing of Personal Information

Cafe coffee day may share personal information within the Cafe coffee day Family. The

Cafe coffee day Family includes Cafe coffee day Corporation, our franchisees, our

subsidiaries and our affiliates. Of course, any use of this information by the Cafe coffee day

Family will comply with this policy. Occasionally, with your permission, we will send

marketing information to you, such as discount coupons, information about new product

offerings, etc. If you do not elect to receive such materials, we will not send them to you.

Companies may be engaged by Cafe coffee day to perform a variety of functions, such as,

fulfilling orders, assisting with promotions, providing technical services for our Sites or

Mobile Apps. These companies may have access to personal information if needed to

perform such functions. However, these companies may only use such personal information

for the purpose of performing that function and may not use it for any other purpose.Cafe
coffee day does not sell, transfer or disclose personal information to third parties outside the

Cafe coffee day Family. However, with your permission, we will, on occasion send

marketing information on behalf of one of our business partners about products or services

they provide that may be of interest to you. You may be asked if you wish to receive

marketing materials from Cafe coffee day business partners. If you elect to receive such

materials, Cafe coffee day will not share your personal information with such partners but

rather will send a mailing or e-mail on behalf of the partners.Cafe coffee day reserves the

right to use or disclose any information as needed to satisfy any law, regulation or legal

request, to protect the integrity of the Online Service, to fulfill your requests, or to

cooperate in any law enforcement investigation or an investigation on a matter of public

safety.

Children's Privacy Notice

Cafe coffee day understands the importance of privacy to visitors to and users of our Online

Services. We are especially committed to protecting the privacy of children who visit or use

our Online Services. This Children's Privacy Notice is designed to answer your questions

regarding our practices with respect to personal information we collect through our Online

Services from children under the age of 13.

Access

You are in control of any personal information you provide to us through our Online

Services. If at any time, you would like to correct the personal information we have about

you or if you would like to change your preferences for contacts from us or on behalf of our

business partners, you can let us know by contacting us at the email or postal address listed

below.
Industrial Overview:-

The tertiary sector of the economy (also known as the service sector or the service industry)

is one of the three economic sectors, the others being the secondary sector(approximately

the same as manufacturing) and the primary sector (agriculture, fishing, and

extraction such as mining).The service sector consists of the "soft" parts of the economy, i.e.

activities where people offer their knowledge and time to improve productivity, performance,

potential, and sustainability. The basic characteristic of this sector is the production of

services instead of end products. Services (also known as "intangible goods") include

attention, advice, experience, and discussion. The production of information is generally also

regarded as a service, but some economists now attribute it to a fourth sector, the quaternary

sector.The tertiary sector of industry involves the provision of services to other businesses as

well as final consumers. Services may involve the transport, distribution and sale of goods

from producer to a consumer, as may happen in wholesaling and retailing, or may involve

the provision of a service, such as in pest control or entertainment. The goods may be

transformed in the process of providing the service, as happens in the restaurant

industry. However, the focus is on people interacting with people and serving the customer

rather than transforming physical goods.

Contribution of service sector in the economy

The advance estimates (AE) of the Economic Survey 2010-11 put the growth rate of the

services sector at 9.6%. This is despite global deceleration in the sector. The sector had

registered 10.1% growth in 2009-10.The Survey presented by the Union Finance Minister,

Pranab Mukherjee in the Parliament today states that the Indian economy remains the

second fastest growing in the services growth with 8.9% rate, behind China (10.5%). An

international comparison of the services sector shows that India compares well even with

the developed countries in the top 12 countries with highest overall GDP.The two broad

services categories, namely trade, hotels, transport, and communication; and financing,

insurance, real estate, and business services have performed well with growth of 11% and

10.6% respectively in 2010-11 (AE).Only community, social and personal services have

registered a low growth of 5.7% due to base effect of fiscal stimulus in the previous two

years, thus contributing to the slight deceleration in growth of the sector. The construction

sector, a borderline service inclusion, grew at a moderate 8%. Among the four broad

categories of services, in terms of shares, financing, insurance, real estate, and business

services; and trade, hotels, and restaurants are the largest groups accounting for 16.7% and

16.3% respectively of the national GDP in 2009-10.The Survey says that in terms of exports,

India is also moving towards a services led export growth. In the first half of 2010-1, services

exports growth was 27.4% despite a dip due to the global crisis, which was more due to fall

in the share of merchandise trade to GDP. The growth rate in 2010-11 is expected to be 19.5

per cent for IT - BPO services, 18.5 % for exports and 22.8% for domestic IT related

services. The contribution of the services sector to the Indian economy has been 55.2% in

GDP and has been growing by 10% annually. In terms of employment, although the

primarysector is the dominant employer followed by the services sector, the share of the

services sector has been increasing over the years. The global economic and financial crisis

had a dampening effect on the cross border FDI floors. The Survey says that in order to
maintain the level of FDI into the sector, the major challenge is to retain India's

competitiveness in this sector.Making inroads into some traditional areas such as tourism and

shipping and making forays into globally traded services such as financial services, health

care, education and accountancy etc. are the other challenges that need to be overcome.

Current Issues

Cafe Coffee Day raids: Income tax dept finds Rs 650 cr concealed income;

violations of other statutes

Bengaluru: The Income Tax Department raids on Cafe Coffee Day (CCD) retail chain since

Thursday found Rs 650 crore concealed income from the documents seized, said an official

on Sunday."Documents seized from the search operations at 25 places of Cafe Coffee Day

and its group companies in Karnataka, Mumbai and Chennai have revealed concealed income

of over Rs 650 crore," a senior tax official said. The search and seize operations, which began

on 21 September, concluded on Sunday evening in the offices of the group involved in coffee,

tourism, IT and other areas. "The searches concluded with the group's officials admitting to

concealed income exceeding Rs 650 crore and the detection of undisclosed income, which is

expected to be a much higher figure," said another tax official in an e-mail to IANS.

Income tax raids on VG Siddhartha, Cafe Coffee Day owner; shares fall 7% on BSE

The income tax department is conducting raids on the premises of VG Siddhartha, owner of

Cafe Coffee Day chain of restaurants. According to a report by ANI, over 20 locations in

Bengaluru, Mumbai, Chennai and Chikmagalur have been being raided.Reacting to the

news, shares of Cafe Coffee Day fell 4.5 percent to Rs 230.40 on the Bombay Stock

Exchange.Siddhartha is the son-in-law of former Karnataka chief minister SM Krishna. The

84- year-old leader had quit the Congress after nearly 50 years in January expressing his

unhappiness for being sidelined and joined the BJP in March this year.Siddhartha hails from

a family which has been in the coffee business for over 140 years. He inherited 500 acres of
coffee plantation from his father.After finishing his M.Sc in Economics from Bangalore, he

headed to Mumbai where he worked briefly as an intern at J M Financial Services.

Two years later he went back to join the family business and opened the first

Café Coffee Day outlet in Bangalore on 11 July, 1994. Share of software

firm Mind tree also fell more than 2 percent as Siddhartha and Cafe Coffee

Day hold stakes in the company.

Cafe Coffee Day staff slaps customer: Chain initiates probe after video goes viral on

social media

Jaipur: A video of a customer being slapped by a lady worker at an outlet of a leading coffee

chain went viral prompting the company to say that it would investigate the matter thoroughly

and then take appropriate action. Representational image. Reuters According to social media

posts, the customer, who is a law student was trying to film a video showing a cockroach

inside a refrigerator when he was slapped.However, the lady has told her company that she

was objecting to her video being taken. In the video, that has gone viral on Twitter, the

woman employee is seen walking towards the customer and then suddenly slapping him. Cafe

Coffee Day (CCD), the chain in question, took notice of the incident and tweeted that

required action will be taken. "We have escalated the recent issue at ourMumbai outlet and

are in talks with the consumers and the internal team to ascertain facts," CCD tweeted.

Later in a statement, the company said that the incident is currently under "thorough

investigation"."The team member referred here hails from rural Odisha and is part of a

programme run by an NGO to uplift weaker sections of society especially the girl child,"

CCD said in a statement. "As per lady team member, she had objected to her video being

taken by the customer and her repeated requests were also not heard, thus invading her

privacy. Till the time thorough investigation is being done, lady team member has been kept

off duty," it said in its statement.CCD said that it is also engaging with the Arpan Verma, the
customer, on the same. The incident did not happen in a regular cafe; it took place in a limited

period makeshift temporary setup running for tourist season, CCD said. It also said that the

lady team member underwent rigorous training before she was posted inMumbai. Local

police said that no complaint was lodged in this connection so far.

: Key-Competitors

Direct Competitors:

 Barista

 Cafe Mocha

 Costa Coffee

 Beyond Coffee

 Gloria Jeans

 Minerva Coffee Shop

 Indirect Competitors:

 McDonald

 Haldirams

 Global Competitors:

 Star Bucks

Following are the major players in coffee shop industry:

Barista Lavazza

One of India's largest franchised chains of coffee bars, the Barista Lavazza coffee company

operates around 205 outlets across India – 15 crème lounges and the rest espresso coffee bars.

It plans to open 300 new stores over the next three years and has begun aggressively

marketing its products outside Indian borders into neighboring countries. Considered the Cafe

coffee day of the East, Barista offers many of the same menu items like espresso, lattes,
cappuccino and various pastries, in addition to basic coffee. Despite being Indian, Barista

sticks closely to its Italian roots by serving Italian coffees exclusively.

Costa Coffee

British coffee retail chain Costa Coffee launched its outlet in New Delhi, becoming the first

international coffee chain to start operations in India in September 2005.

The chain is currently operational with 36 outlets and expanding aggressively to

tap this potential market.

Café Mocha

It was started by a Mumbai based entrepreneur RiyazAmlani, who has a long experience in

the hotels and restaurants business. This store is strikingly different from others, they love

being over-the-top and thus it’s a place that either you love it too much or find it ’Over the

top’. Studying the marketing Mix adopted by café mocha. Owned by Impresario

Entertainment & Hospitality Pvt. Ltd.

 Mocha opened its doors at Churchgate (Mumbai) in December 2001

 15 operational outlets across the country and its own central kitchen

 Future plans for Singapore, Dubai and New York and Chicago.

Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with

their multi-products offering outlets like Reliance Timeout and Desi Café respectively.
COMPETITION Barista is the major competitor

Barista coffee was establishes in 1999 with the aim of identifying growth opportunities in the

coffee business. Increasing disposable incomes and global trends in coffee indicate immense

growth potential in one particular segment. More significantly, they believe they have been

quick to spot a latent need waiting to be trapped: Coffee lovers seek a complete experience.

One that combines intelligent positioning with the right product Mix and carefully designed

cafés. In other words, customers seek an “experiential lifestyle brand”. As of today, Barista

exists in over 22 cities, and operates over 140 outlets nationally.

In the last 2 years, Barista has opened over 100 outlets in the country and with a new outlet

opening nationally every 14 dates; Barista is currently experiencing phenomenal growth.

With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth

opportunities in Asia, making it highly competitive international brand.

 CHAPTER V

Marketing Mix

Every company goes through different phases in the business. The phase is very similar to

that of the product lifecycle. In order to sustain in the market and to maintain its market share

it is essential for the company to have a right marketing mix. The company has to have a mix

of proper product that is relevant to the target audience, proper price, proper reach i.e. the

place and relevant promotion that keeps the target audience interested in the company.

Product

Café Coffee Day’s menu ranges from hot and cold coffees to several other items. However,

the core product is the coffee. The management believes that trend is changing towards

coffee. So taking this opportunity, the company also sells coffee powder. Café Coffee Day

also believes in selling other merchandised products.

Core Product:

 Exotic international coffees e.g. Capachinos

 Food items e.g. Sandwich, Samosas

 Desserts and pastries

Supportive Products:

 Funky Caps @ Rs 60 onwards

 Cool T-Shirts @ Rs 175 onwards

 Bags @ Rs 160 onwards

 Mugs @ Rs 60 onwards

 Coffee Filters @ Rs 95

Coffee Powders:

 Arabica @ Rs 43
 Perfect @ Rs 35

 Charge @ Rs 28

 Dark Forest 200gm @ Rs 80

Product Mix

Coffees & Teas Refreshing Eatables

Alternatives

Coffee with Milk Smoothies Sandwiches

Cappuccino Guava Paneer Tikka

Caffe Mocha Mango Cheese & Tomato

Caffe Latte Grape Chicken Tikka

Smoked Chicken

Black Coffee Granitas Rolls

Espresso Italiano Blue Curacao Kadhai Paneer Roll

EsperanoTM Lime Ice Chicken Masala Roll

Americano Mixed Fruit Tango

Guava Crush

Dessert Coffees Milk Based Pastas

Latte Bianco Strawberry Freeze Tangy Tomato Pasta

Caffe Borgia Mocha Freeze Creamy Chicken Pastas

Icepresso

Cold Coffees Iced Tea HOT TEA

Brrrista Lemon Assam

Brrrista Frappe Peach English Breakfast

Brrrista Blast Darjeeling

 Iced Caffe Mocha Earl Grey

Coffee Add-ons Other Drinks Desserts

Various Flavours Ginger Fizz Walnut Brownie

Chocolate Fudge Kinley Water Mocha Excess

Whipped Cream Chocolate Excess

Espresso Shot Dark Temptation

Ice Cream Scoop Chocolate Mousse

Chocolate Chip Muffin

Almond Raisin Muffin

Apple Cake

People Mix

The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They

ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of

life. Their uniforms are in sober shades of brown and orange, and contribute to the overall

laid-back feeling of the café.

Promotion Mix

According to research, over 65% of Barista’s customers are in the 15- 30 age- group. The

majority of these are students and young urban professionals. Barista positions itself as a

brand for anyone who loves coffee. Their products, services

and outlets are more like the traditional European cafés, where people would meet for the

love of coffee, and for an intellectual appealing time. They position their outlets as a place

“where the world meets”, and they look to appeal to anyone in the 14- 60 age group that

loves good coffee and looks for a nice quiet time.

a) Logo, Colors, Images:

Barista, since the beginning has looked to use colors in its café interiors, logos and images; to

project a “warm, earth glow, synonymous with coffee”. Barista uses shades of Orange &

Brown to good effect to promote its “laid- back” atmosphere. The logo is a combination of

Brown, Orange and Light Yellow; with the word “Barista” written in an upward curve, and

the word “Coffee” underneath. A simple logo that perfectly expresses Barista’s brand image:

A traditional café for coffee lovers.

b) Décor and Architecture:

Barista’s internal décor and architecture expresses the simplicity you would normally

associate with traditional cafés. The furniture is made of light shades of wood, and there are

comfortable sofas in bigger cafés. The walls are shades of orange, with various photographs

of the love for coffee spread around each outlet.

c) Literature:

The literature provided by Barista is indicative of its brand image. The menus, posters,

pamphlets are all traditionally designed, with a classic and simple look. One aspect of

particular note is their magazine, which is privately circulated in the cafés. The magazine

encourages customers write, draw, make etc anything creative; and this is then published in

the magazine. The magazine not only provides an avenue for advertising, but also an

opportunity for Barista to express its brand image Barista currently carries out mass

promotion campaigns. This is mainly in the form of promotions in the Press, TV and Radio

Medias. At present, they do not rely heavily on advertising, but rely more on sponsorships

and strategic alliances with other corporations. Barista also takes part in various sales

promotion activities to help increase sales at their outlets.

d) Sponsorships:
Barista sponsors various events and festivals, which provides them valuable promotion

directed at strategic markets. The sponsorships are mainly in kind, although major events are

sponsored in cash also.

e) Sales Promotion:

Barista uses a special “Barista Coffee Card” for its sales promotion activities. The Barista

Coffee Card entitles you to one complimentary hot beverage when you are done sipping

seven. It is available to all Barista coffee regulars. No membership fees, no references

required. Fill out the card and you are a member. As a Coffee Card holder, you earn one

stamp on the card every time you purchase a beverage. Simply present the card to the cashier

when you place your order at any of their outlets. Once you have collected seven stamps, you

can hand over the card to receive your complimentary hot beverage. Barista hopes this card

can help drive sales growth, and increase customer retention

f) Collaborations:

Barista has entered into special collaborations and alliances with various partners for co -

marketing brands. For example, Barista entered into a deal with Leo Mattel toys to provide

the popular board game Scrabble at every Barista outlet across the country .This is an ideal

alliance for both the organizations, because it provides Leo Mattel with an important avenue

for promoting their product, and it provides Barista’s customers an added attraction for spend

more time at Barista outlets .Barista has also entered into partnerships with various movies,

for promotions through Barista, and recently, they tied up with Star World for its “Absolutely

Everybody” campaign.

Place

This is a prime factor in determining the success of a retail chain. However, Barista Coffee

has adopted a top down approach, wherein they first identify the cities and then decide on
precise locations within its limits .While selecting a city Barista has devoted substantial

management time and effort in zeroing in on the cities where they are now situated. The

selection of the cities was based on the following criteria.

 Sizeable population of executives, students and families in SEC A & Barista category.

 High disposable income with people looking for new vistas in leisure and lifestyle

oriented concepts.

 High level or organized retail activity.

 Rapid socio- economic development.

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

 Number of educational establishments and opportunities available for employment.

On the basis of the above criteria, they had initially targeted cities like Delhi, Mumbai,

Bangalore, Chennai and Hyderabad. Chandigarh and Ludhiana were later added due to tie-

ups with ‘Planet M’ and ‘Ebony’ to set up store-in- stores at their outlets. They are also

pursuing an equally aggressive international business expansion strategy. They have over 50

overseas locations presently under their consideration .They have already done their

groundwork in terms of getting brand and name registrations in over 30 of these locations.

To facilitate their global expansion, they plan to work with strategic partners, who share the

same vision of expanding and promoting the brand worldwide. Currently they have opened

new outlets in Sri Lanka and Dubai as a part of their international strategy.

New Introductions:

 Reglon Sleeves T-Shirts @ Rs 249

 Marquis pens @ Rs 315 Onwards.

 Shoulder Bags @ Rs 209

 Coffee Mints @ Rs 40
 Price

Café Coffee Day has positioned as “Value for Money”. The major target customers are the

youngsters. Pricing is a very sensitive issue for the Indian consumers.

Café Coffee Day believes in mass marketing. The average spent by the customer is 100-125.

Their coffee starts from as long as 15 Rs. However there are some outlets where the students

are given special discounts. CCD even set up their outlets in the college campus. For e.g.

Café Coffee Day has opened an outlet at the NMIMS campus where they are providing

additional 10% discount to the students.

CCD is looking for expansion to more interior places. Here prices become more complex as

the consumer are very conservative in spend. A cup of coffee at Rs. 35 is accepted in metro

cities but not in small towns. The decor, ambience and the experience will play a major role

in pulling the crowds in small cities.

The price of the product has to be kept uniform in order to maintain the uniformity in all the

outlets.

CCD target audience is youngsters. Majority of them are dependent on their family for their

expense. This is one of the most important reasons for low pricing compared to other cafes.

They believe it in making their product at an affordable price. Pricing is one of the important

weapons for them to fight against their competitor.

Place

Café Coffee Day outlets are spread across India. However, there are more number of outlets

in the metros and towns. For e.g. In Mumbai CCD have 37 outlets. In the past 12 months,

Café Coffee Day has also been on an aggressive drive to expand the number of cafés in the

smaller towns across the country based on research and invitations received from these places

to open more such cafes there. The company expects to cross the figure of 200 cafés in 60

cities by December 2004. There will be an increased focus in cities having populations from
as low as Five Lakh upwards. However, the focus has not been on just opening more cafés

wherever there has been an opportunity. Café Coffee Day is already the largest and most

wide spread retail chain of cafes in India with a current count of 169 cafés in 43 cites.

CCD plans to reach cities like Kolhapur and Nagpur in the west, Hubli, Belgaum and Vizag

in the South, Allahabad, Varanasi, Ambala and Patiala, in the North, Jodhpur and Mount Abu

in Rajasthan and Bhubaneswar, Ranchi, Cuttack, Darjeeling, Guwahati and Jamshedpur in

the East.

Promotion

In order to stay with the competition and to keep the audience interested, they undertake lot

of promotion activities. CCD jointly organizes large number of promotions with the other

companies serving the similar target audience. These cafes have emerged as a new media

vehicle for reaching the right type of the customer. CCD gets in physical touch with

audiences, target loyalty club members, or advertises in their newsletters. CCD has also

undertaken a promo jointly with TVS scooty. The promo was done at all the outlets across 43

cities. In this promo a package of 2 ices blended cold coffee and 1 choc fantasy for just

selling for Rs 82.

Lokhandwala CCD:

The Store at Lokhandwala is also a good revenue earner for the company. The store is

located just outside the Lokhandwala and situated just opposite to Star Bucks. This store is

also an important store due to the location and also the target customers. Lokhandwala is on

of the most famous place for shopping. This store is not as big as that of the outlet at

Carter Road. It has a sitting capacity of 95 people. This store also has indoor as well as the

outdoor space but has more of the outdoor spacing.

The working hours at Lokhandwala outlet is 9 am to 12 pm.

The peak timings are

  7-9p.m.(Working Crowd)

 10:30 p.m.- 11.30 p.m. (Families)

The USP of this store is its large parking space. Customers come to the outlet after shopping

from Lokhandwala to have a coffee. The music is not appropriate which makes some of the

customers annoyed. The Machine used in this outlet is Asttoria, which cost around 3.5 lac.

The store sells lot of other products like T-Shirts and cups, which also do good business.

However, the goods are not properly displayed. The staff at the outlet was efficient courteous

and very helpful. There is a good customer service from the staff and helps the customer in

making the decisions. The staff strength is 11 and is divided into 3 shifts that include 1 store

manager.

Customer Profile:

 Foot fall- around 115 per day

 The average spend: Rs.125-150/customer–1-3 p.m. Comprises primarily of youth from

the 18-30 yrs age group

Future Strategy

The management at the Star Bucks outlets thinks that their positioning is very different from

that of CCD. They think that the people going to CCD are young college students. The target

audience for the Star Bucks are young managers and middle level mangers and also family.

However there is a treat to them in terms of the share of the young college going crowd,

which forms a main target audience for the CCD and comparatively small part for Star

Bucks. In order to maintain the share the managers of Star Bucks thinks that they would need

to increase their presence and also have to tap the other untapped market. The company is

also planning to tie-up with other companies in order to increase the promotion activities that

would keep the crowd interesting. They also are planning to organize the festivals of the

college or sponsor prizes in the festival.

Increase in outlet:

As part of its marketing strategy, the company is planning to promote international coffee

blends first through 40 Star Bucks stores in Mumbai, Delhi and Bangalore. With the move,

the company also hopes to expand the number of Star Bucks Espresso Bars on an average

rate of two to three per month as well.

International expansion:

Star Bucks is also looking for the international expansion. They are planning to expand in the

Kuwait market. Star Bucks is also planning to expand its presence in the other Asian

countries like Sri Lanka, Dubai.

Promotional Activity:

As part of its marketing strategy, Star Bucks Coffee Company Ltd is planning to launch a

host of consumer promotions at its outlets in 2004. For the purpose, the company is currently

in talks with many entertainment, consumer goods and music companies, which include the

US-based Bose Corporation, Swatch and International Travel House.

Improvement in the Services:

Initially Star Bucks had a system of self-serving. Indian consumers are not comfortable with

this concept. However in some of the outlets they have started serving the customers.

Informative Staff:

The staff should be qualified as they will be dealing with intelligent people. The staff should

be friendly but should not try to educate the customer who is already aware of the things.

 Its All In The Mind

Star Bucks is a place where the world meets. People come to Star Bucks to have a meet or to

relax. A lot of them actually come alone as well. This is actually one of those places with

people coming in alone because they are comfortable with themselves. It is a place where

people are meeting each other in an environment, which is fulfilling social and intellectual

needs.

The employees at the Star Bucks are also energetic. They help the customer in making

decisions for their purchase. Some of the customers at the Star Bucks think that they should

be personally served rather than self-serving. When the person wants to orders for some

thing customer has to go to the counter order the requirements, pay bill and the employee

takes the name of the customer. When ever the order gets ready the employee shouts on the

top of the voice calling for the customer to take the order. This actually unpleased the

customer as the customer gets disturbed every time the employee calls for some person.

Product:

During the time of discussion I found two types of customers, one who visits regularly and

other who visits rarely. The customers who come rarely are not actually the coffee lovers.

They just come there to do some time pass. They have no complains about the product. But

the customers who are coffee lovers are not satisfied by the product they serve. There are

some customers who actually complain about the quality of the product. Coffees are not

really that good. The bread is dry; the amount of filling has reduced in quantity etc. Their

desserts fortunately have not suffered and are still pretty good. Customers not only come

there to have a coffee or have a sandwich. They actually come there to have an experience.

They find prestigious when they visit to the Star Bucks. As major target audience are youths,

young managers and middle level management people who come to discuss their business.

The young students visit there as they feel the sense of maturity. The people who are status

oriented would prefer visiting Star Bucks rather than CCD. Their targets are youth, young
executives and nucleus families. Star Bucks also claims that intelligent people come here

“Someone who is intelligent and appreciates the good things in life.” claim by Star Bucks.

There are many customers who come there, as they perceive themselves as intelligent people.

For business people toting Laptops they can hook up to the net free of cost or catch up on the

news business magazines and newspapers are available at every outlet. They also come to

Star Bucks, as it’s a good relaxing place where they can discuss about their clients.

There are people who also come alone. They find Star Bucks is the place where they can just

have a coffee and think deep, as there is no one to disturb them.

INDUSTRY ANALYSIS

In hospitality industry there is much kind of outlets like hotels and resorts, restaurants, bar,

coffee shop these are the place is serving food and beverage here I am going to give my

research about coffee shops which providing like hot and warm coffees and quick bites to the

customers. I did my research work on Indian coffee shop company who having more than

900 café in 91 major cities in India and outside India.

The world coffee production in the coffee year 2009-10 is estimated to be 123.6 million bags

signifying a decline of over 4.5 million bags in the CY 2008-09 when production totaled at

128.2 million bags. This is revealed in a report of International Coffee Organization market

report for January 2010 excluding additional information that has to come from Colombia

and Vietnam. The ICO report also states of a significant fall in coffee production in Brazil -

by about 14 percent besides production shortfall apprehended in countries like Cote d'Ivoire;

Tanzania, Uganda, Papua New Guinea, Vietnam, Mexico, El Salvador, Equador and Peru.

The Colombian production is unlikely to register worth mentioning increase. The over all

world supply of coffee is likely to be tight in 2010 due to low level of opening stocks as well.

Total world exports of coffee (2008 & 2009)

2008 2009 % Change

 Colombian Milds 12219 9278 -24.07

Other Milds 22524 20861 -7.38

Brazilian Naturals 28724 30033 4.56

Robustas 34199 34518 0.93

Total 97666 94690 -3.05

Source: International Coffee Organization, Coffee Market report, January , 2010

In the export front calendar 2009 closed with a decline of 3 percent at 94.7 million bags from

97.7 million bags in 2008. World consumption however is provisionally estimated at 130

million bags in 2008 from 128 million bags in 2007. Domestic consumption in exporting

countries was up at 36.7 million bags compared with 35.4 million bags in calendar 2007.

The Brazilian Coffee Industry Association expects 4.15 percent increase in world

consumption of coffee.

Indian Coffee Board puts country's coffee production at 2.90 tonne (Post monsoon

estimation) and 3.06 tonne (Post Blossom Estimation) respectively. For the present crop

year beginning October, the board has estimated an output of Arabica at 101,525 tonnes

and Robusta 204,755 tonnes. Karnataka leads the country with 2.05 tonne (Post monsoon

estimation) and 2.21 tonne (Post Blossom Estimation) production followed by Kerala and

Tamil Nadu. According to ICO estimate, India produced over 3.1 million bags of 60 kgs

each in 2009 compared with 3.3 million bags in 2007.Country's coffee exports during fiscal

2008-09 stood at 1.96 lakh tonne signifying marked decline from 2.18 lakh tonne in 2007-

08.

India's Coffee Production (In tonne)

State 2006-07 2007-08 2008-09 2009-10

Karnataka 206025 191575 183860 205700

Kerala 59475 49000 57200 59250

Tamilnadu 18225 18100 16255 19350

Non-traditional areas
4085 3175 4870 5185
(Andhra Pradesh & Orissa)

North Eastern region 190 150 115 115

Total 288000 262000 262300 289600*

Post Monsoon estimates *

Source: Federal Ministry of Commerce, Government of India

India accounts for about 4.5 percent of world coffee production and the industry provides

employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70

percent of country's total coffee production followed by Kerala (22 percent) and Tamil

Nadu (7 percent). Europe accounts for about 70 percent of India's total coffee exports. Of

this again, 70 percent is shipped via Suez Canal. Major Indian coffee importing countries

include Italy, Germany, Russian federation, Spain, Belgium, Slovenia, US, Japan, Greece,

Netherlands and France.

India's Exports of Coffee

Year Quantity (In tonne) Value ( In Rs crore)

2006-07 249029 2007.90

2007-08 218998 2046.29

2008-09 197171 2242.64

2009-10 (Upto March 8, 2010 181225 1944.98

Source: Federal Ministry of Commerce, Government of India

With a view to expand coffee cultivation, Coffee Board has been implementing

developmental programmes for coffee development in North Eastern Region and Non

Traditional areas. During 11th Five Year Plan, Coffee Board has proposed to support coffee

expansion programme taken up by the Integrated Tribal Development Agency on 24000 ha.

area in Andhra Pradesh and on 850 ha. area in North Eastern Region, which will facilitate

export of coffee. As a part of export promotion, the Coffees from different regions with their

logos are promoted including the coffee from the areas under Integrated Tribal Development

Agency, as ‘Araku’ Coffee. Constant endeavour is being made by the Government to help the

coffee growers to ease their bank debts

 CHAPTER VII

TYPICAL SERVICE OFFERING

CUSTOMER’S EXPECTATIONS

When a customer visits a coffee shop they expect a good experience. They want the service

provider to provide them with the best services they have. From the chart given below we can

easily make out that the customers gives high preference to the quality of services and they

give least preference to the pricing. The major reason behind customer giving least preference

to the price is because they want a good experience which is beyond price.

 From the above chart one can easily make out that 42% people consider the quality of

services offered by the coffe shop before going to it.

 The next important factor considered by customer before choosing a coffee shop is

the ambience. They want the coffee shop to be a cool hangout place where they can

hangout with friends and do some combined studies

BUNDLE OF BENEFITS

Following are the benefits that a customer can get from Café Coffee Day:

1. Benefits through pricing of products

Considering that Cafe Coffee Day is trying to target a market whose age range is between 15

and 60 years, a pricing policy appealing to this segment is difficult. The pricing is extremely

low and act as a deterrent to some customers who might regard it as an indicator or quality,

while very high prices cannot be afforded by most of the youth. But since Cafe Coffee Day’s

current consumer profile is quite young, their prices are mostly inexpensive, and at par with

their competitors.

2. Benefits through different product line

They are Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes.

Coffee Day has a well-equipped roasting unit catering to the specific requirement of the
consumers. The process is carried out under the control of experienced personnel to meet

highest quality standards. The most modern technology available is used to maintain

consistency and roast the coffee beans to the demanding specifications of the discerning

coffee consumers. The coffee beans are supplied to all the cafés from Chikmagalur. The

eatables at Café Coffee Day are catered by different vendors: example: ice creams are catered

by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery. Café Coffee Day also sells

merchandise through its stores. 5 per cent of the revenue comes from sale of merchandise.

Café Coffee Day product Mix constitutes a wide range of products that appeal primarily to

Indian coffee and snack lovers. Products have a decided Indian taste to it - be it food or

coffee. Most of the eatables have been adopted to meet the Indian taste buds like samosa,

biryani, masala sandwich, tikka sandwich etc. Thus they have been trying to capture the

Indian taste along with classic coffee. The best selling item in summer is frappe, which is

coffee and ice cream blended together. The young people favor it. In winter it is cappuccino.

Their merchandising includes funky stuff like t-shirts, caps etc.

3. Benefits through Location

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

outlets are generally located at High Street/ Family Entertainment Centers. Considering their

generic appeal, there are Cafe Coffee Day outlets in and around Malls, Cinemas, Colleges,

and Offices etc. This endorses their brand image of a café that appeals to coffee lovers of all

ages.

Benefits through People

The people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite and

Positive. Cafe Coffee Day is India's favorite coffee shop for the young and the young at heart.

We're part of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading

Company Limited (ABCTCL). In Asia, ABCTCL is the second largest in terms of coffee
estate ownership which means it has a rich and abundant source of coffee. There are also

11,000 small growers whom we source from and who make us who we are and we're glad to

be a part of their lives. Popularly known as CCD, we strive to provide the best experience to

our guests. To put it plainly, we brought in the concept of cafes to India (this is where you

thank us!). The first one opened in 1996 on Brigade Road in Bangalore and continues to be

one of the most happening places in the city. The young and the young at heart immediately

took to the place. A smart, simple space that they could call their own for a while… sit down,

talk and listen to conversations, hold short meetings or even have a lot of good fun…all over

steaming cups of coffee. CCD today is totally in tune with its target audience. It’s a strong

relationship the brand shares. It's been an exciting journey since then, becoming the largest

organized retail cafe chain in the country. What's more if your travels take you to Vienna,

Austria or the Czech Republic, do stop by our CCDs there for the taste of a blend from home.

Range of outlets!

Café Coffee Day – A lot can happen over coffee

 Launched in 1996 in Bangalore, India.

 Over 1500+ cafes spread across 200 cities/towns across India.

 Single largest aggregator of youth in the retail space in India.

 Over 300,000 guests walking into the café on a daily basis across the country.

 Vertical domination and presence.

 First consolidated and pure coffee outlet to find its footprint across the globe.

The Lounge

 Wider range of Food & Beverages addressing meal needs as well.

 Targeting a more mature and affluent group of customers.

 An expressive, explorative space (owing to the alternate coffee drinking experiences

and world cuisine options) conducive to network and ofcourse to unwind.

  50 outlets spread across key cities.

The Square

 Premium range of cafes serving Single Origin Coffees from around the world.

 Perfect variety of food that complements the wide range of coffees.

 Showcasing a boutique of brewing systems and coffee beans from around the world.

 Catering to the absolute connoisseur and the well-traveled.

 5 outlets 1 in Bangalore, 1 in Chennai, 1 in Mumbai and 2 in Delhi.

XPRESS Outlets

The stand up, walk away, take away Xpress café…It's coffee anytime and anywhere!

Hot, piping coffee is most welcome anytime, anywhere. It's something that lets you perk up,

when you need a 'zing' to life

 Caters to the mobile population of a city – always on the move, always in a hurry.

Packaged in an area of just 60 square feet.

 Believes in 'keeping it short and sweet'!

 Present in all the key city spots. 'Wherever you go, I am there'…that's the motto.

 No elaborate decorations, just fresh, delicious snacks and steaming beverages that

come in convenient sizes.

 Just buy, sip, bite or munch…a smarter and more efficient way of staying ahead of

times!

 Total outlets : 687+.

 Find us in Shopping malls, Supermarkets, Multiplexes, Corporates, Airports, Railway

stations, Depots, Petrol pumps, Parks, Educational Institutions etc.

CCD this year was bestowed with the prestigious ISO 22000:2005 certification by the

internationally acclaimed DNV Business Assurance Food Safety System for its Food Safety

management systems in cafes. This certificate covers the mandate of handling, preparing and
serving food and beverages in the Café Coffee Day (CCD) cafes, Coffee Day Lounge cafes

(CDL), Coffee Day Square cafes and Fresh Assembly Centers (FACs wherein café food is

assembled before sending them out to cafes across).The Company is one of the first large

scale food and beverage retailers to have received such an honor with respect to so many key

business units.

Group companies

1) Coffee Day Beverages

Coffee Day Beverages deals with dispensing machines that provide, at the touch of a button,

hot coffee and tea, flavored milk and even soups through its machines called Celesta. Just

like heavenly music that flows to soothe tired nerves and perk up withered souls, Celesta

dispenses beverages the way you need them.

 ISO 9001:2008 certified for Design, Development and production of coffee and

beverage vending machines compliance to CE.

2) Coffee Day Fresh & Ground

Freshly ground coffee in mix and match flavors and ratios is the specialty of Fresh & Ground.

Fresh & Ground stores in markets and shopping points cater to coffee lovers who love to

make their own filtered coffee at home. This traditional-thinking, quality conscious shopper

is a royal customer. They look out for freshness and quality, but want to throw in a bit of their

own character too. The freshly procured coffee from plantations are packaged in the most

hygienic way to ensure consistency in freshness. Fresh & Ground specializes in authentic

filter coffee with region specific blends of coffee and tea customized to demand. Besides an

affordable array of coffee powders, we also retail tea to the tea-maker too. Visit

www.coffeedayfng.com for more details.

3) Coffee Day Exports

Coffee Day Exports is truly the leader in growing, trading, retailing and exporting world-

class coffee. Asia's largest integrated coffee company with the second largest network of

coffee estates has a rich heritage of over 140 years. Coffee Day Exports is one of the largest

exporters of green coffee in India, since 1999. We also export to United States, Europe and

Japan. It has invested in research and development and applied the learning successfully to

improve the promotion of various coffee blends and augment its exports.

 First company in India to receive UTZ certification.

Coffee Day Exports strongly believes that their responsibility begins with the origins of the

coffee bean - right from ensuring ethical growing practices to packaging and retailing the

product for their customers. Coffee Day Exports is well versed with the experience and

technological proficiencies to provide its customers with a wide assortment of well-

positioned products. With regular feedbacks from customers and advisors, and backed by

research, Coffee Day Exports continues to enhance their products. Visit

www.coffeedayexport.com for more details.

4) Coffee Day Hotels & Resorts

2008 was a landmark year for ABCTCL. The café chain was soaring ahead, and our

reputation for customer service and innovativeness was second to none. At this point of time,

we decided to invite our friends and extended family to the coffee estates themselves to

experience, first-hand, the serene slopes on which their cherished coffee grew.

Coffee Day Hotels & Resorts was formed as a subsidiary of ABCTCL, the iconic

Chikmagalur resort of The Serai was declared open. The philosophy was single-minded - to

open exclusive retreats in the quietest corners of the country and to offer an experience

drenched in luxury and understated elegance. It is a place where one would come to be

pampered like nowhere else. The Serai, Chikmagalur, as the first such resort did this job
brilliantly, nestled as it was in the greens of the lush coffee plantations around. The concept

was so appreciated that we took these resorts to other reclusive niches – to Bandipur and

Kabini – and will be opening more of the finest resorts in the country – in the near future.

Visit www.theserai.in for more details

Ulhasnagar a small town somewhere in thane district. A PLACE which is nowhere left

behind. A Place full of crowd with mostly SINDHI COMMUNITY and other communities

too. A Place where doing business is in the Blood of people living here. Ulhasnagar being

called as Business Hub, divided in five camps , nearby ambernath and kalyan.

Ulhasnagar, which is once a military camp area for Sindhi refugees migrated from Pakistan,

is now heavily populated with this community people. The city is also known as Sindhunagar

and it is very famous from economic aspect. Ulhasnagar is a very good business centre not

only in Thane district, but also in Maharashtra State. It is a city located on the coast of West

India, which is nearly 60 kilometers northeast of the city of Mumbai.

Birla temple, furniture market, gajanand market, jeans market, Century rayon factory, shiv

mandir etc are the important places in Ulhasnagar.

Brief description:

Ulhasnagar-1 (W): It is also known as Ulhasnagar camp-1 and it is located on the west side of

railway stations. The main center here is a market with famous landmarks like Goal maindan

where many people visit from nearby areas like kalyan, ambernath, badalpur, dombivili,

thane, titvala etc for shopping.

Ulhasnagar-2 (W): The other name of this place is Ulhasnagar Camp-2. It is a market with

popular landmarks like Gajanand market and it is famous for clothing, electrical and

electronics etc. Nehru Chowk is the main centre here.

Ulhasnagar-3 (W): it has another name as Ulhasnagar Camp-3. It is mainly a market and it is

located on the west side of railway stations. The famous landmarks here are furniture bazaar,
RKT College, Sapna theatre, Ashok-Anil Multiplex etc. it is mainly a furniture and

electronics market.

Ulhasnagar 5 (E): This locality, which is also known as Ulhasnagar Camp-5, is located on the

eastern side of railway stations and it is mainly a residential area. You can see several jean

making small scale industries here. Jhulelal Mandir, Swami Sarvanand School, Swami

Shantiprakash Chowk, Nethaji Garden, etc are the famous landmarks here. This locality is

heavily populated with Sindhi community people. Originally, known as Kalyan Military

transit camp (or Kalyan Camp), Ulhasnagar was set up especially to accommodate 6,000

soldiers and 30,000 others during World War II. Sindhi’s, in particular, began life anew in

the new land. The area was converted into a township in 1949, and named Ulhasnagar by the

then Governor-general of India, C. Rajagopalachari (literally 'city of joy'; ulhas = joy; nagar

= city). On August 8, 1949 the first and last Governor-General of India, C. Rajagopalachari,

laid the foundation stone.

As said earlier, Ulhasnagar is a place which is nowhere left behind because each and

everything is available here, as it is good in providing services like – EDUCATION,

HOSPITALITY, BANKING AND INSURANCE SECTOR, TOURS AND TRAVELS,

BEING IMPROVED IN INFRASTUCTURE ALSO , ETC.

Education:

The city has colleges and an industrial-training institute like institute of technology, Holy

family Convent High School, New English (at camp no.5), SST College of Arts and

Commerce etc. Smt. Chandibai Himatmal Mansukhani college and R. K. Talreja are two

major colleges.

Growth:

Ulhasnagar, one of the busiest business centers in Maharashtra, has several jewellery

showrooms. Some of the popular jewellery showrooms in the city are listed here.
We can watch the gradual development of Ulhasnagar to a shopping hub and business centre

from a military camp area in the pre-independence era only with wonder. Sindhis, who

migrated to this land from Pakistan, has significant role in the growth of Ulhasnagar in the

business field. Even though they came to the city with minimal resources, now most of the

small and big shops in Ulhasnagar are under owned by them. It is nothing else but their hard

work and talent that made them able to develop this city to a ‘mini-Japan’ during the last five

decades.

Specialities:

Ulhasnagar, which is the most popular industrial and commercial township of Thane district,

is famous for shops of wedding costumes, jeans and other readymade garments. Sindhi

people, who live other parts of India such as Gujarat, Goa and Madhya Pradesh, visit

Ulhasnagar to do their wedding purchase. There are many shops, which are exclusively

aimed for wedding costumes

The city is also famous for jeans manufacturing. Jeans and ready made garments

manufactures at Ulhasnagar 5 are sold in all markets of the country. Many popular jeans

brand have factories in Ulhasnagar.

The most busy commercial and shopping center here are Ulhasnagar 2 & 3.

Tourist Attractions in Ulhasnagar:

There are several tourist attractions in Ulhasnagar including beautiful locations, religious

places and historical monuments etc. Some of the famous temples in Ulhasnagar including

Chaliho Sahib, Birla Mandir, haji Malang, Jhulelal Temple, Saint Satram Dham and Swami

Shanti Prakash Temple etc