Shah And Anchor Kutchhi Engineering College,

Department Of Management Studies.

CONSUMER BUYING BEHAVIOUR

A COMPARTIVE STUDY ON CCD AND BARISTA

BY

ANKUR VIVEK SHAH

Under The Guidance Of

Jatin M Shah

WINTER MMS PROJECT

Submitted In Partial Fulfillment Of The

Requirements For The
Master Of Management Studies (M.M.S)
Mumbai University

BACKGROUND OF THE STUDY

Consumer behavior is the study of

individuals, groups, or organizations and the processes they use to
select, secure, and dispose of products, services, experiences, or ideas
to satisfy needs and the impacts that these processes have on the
consumer and society. It blends elements from psychology, sociology,
social anthropology and economics. It attempts to understand the
decision-making processes of buyers, both individually and in groups.
It studies characteristics of individual consumers such as
demographics and behavioral variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society in
general.
Customer behavior study is based on consumer buying behaviour,
with the customer playing the three distinct roles of user, payer and
buyer. Research has shown that consumer behavior is difficult to
predict, even for experts in the field Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen
interest in the re-discovery of the true meaning of marketing through
the re-affirmation of the importance of the customer or buyer. A
greater importance is also placed on consumer retention, customer
relationship management, personalization, customization and one-toone marketing. Social functions can be categorized into social choice
and welfare functions.
Each method for vote counting is assumed as social function but if
Arrows possibility theorem is used for a social function, social

welfare function is achieved. Some specifications of the social

functions are decisiveness, neutrality, anonymity, monotonicity,
unanimity, homogeneity and weak and strong Pareto optimality. No
social choice function meets these requirements in an ordinal scale
simultaneously. The most important characteristic of a social function
is identification of the interactive effect of alternatives and creating a
logical relation with the ranks. Marketing provides services in order
to satisfy customers. With that in mind the productive system is
considered from its beginning at the production level, to the end of the
cycle, the consumer.

THE COFFEE CAF INDUSTRY

1.1: Evolution of a Coffee Caf
The beginning:
It all began around 1000 A.D. when Arab traders began to cultivate coffee
beans in large plantations. They began to boil the beans creating a drink they
called qahwa which translates to that which prevents sleep.The drink became
widely popular, and the need for coffee beans grew.
1600
Coffee enters Europe through the port of Venice. The first Italian coffeehouse
opens in Italy in 1683.Pope Clemente VIII was requested by some of his monks
to outlaw the Muslim brew. He declined and said, "This beverage is so good it
would be a sin to let only pagans drink it!" His subsequent "baptism" of coffee
propelled its spread across Europe.

1905
1901 - Luigi Bezzera files a patent for the first espresso machine. In 1905 the
first commercial espresso machine was manufactured in
Italy.

1906
The English chemist George Constant Washington,
invented the instant coffee while living in Guatemala.

2010
Coffee is the worlds most popular beverage. More than 500 billion cups are
consumed each year. It is one of the worlds most traded commodities, second
in value only to crude oil.
Interesting facts about Coffee & Cafs:
Coffee was first known in Europe as Arabian Wine.
Coffee is presently the second most traded commodity in the world. It is
second only to oil.
Nescafe was invented by Nestle because it had to assist the Brazilian
government to solve its coffee surplus problem

1.2The Coffee Caf Industry:

The Coffee Caf industry is currently one of the biggest and fastest growing
sectors in business. The industry consists of a mix of individual cafs, hotel
cafs and retail caf chains.

RATIONALE FOR CHOOSING THE TOPIC

The objective of the project is

To compare and study Barista & Caf

Coffee Day
The aim of the project is to successfully compare two prominent service

sector companies on a common platform, analyze their working and

performance
To study how these brands differentiate themselves from each other, and

attempt to improve brand loyalty amongst their customers

Identify areas of excellence and areas needing improvement; and provide

suggestions for such improvement.

To study the consumption of above mentioned brands

SIGNIFICANCE OF THE TOPIC

Indian consumer is a very interesting entity. The consumer in

India is as heterogeneous as the country itself is. The urban consumer contracts
with the rural and the so the Indian consumer with the north Indian. Future still
the consumer in the metro militates with his usage and habit patterns. The
Indian consumer, is therefore very difficult to understand and very difficult to
predict. Tea and coffee are the favorite drink in India especially tea. A quiet
caf renovation is sweeping urban India with the explosion of coffee bars. That
is bad news for tea still the favorite brew for a majority of Indian are tea. But tea
is been losing the majority to coffee in recent year.
However it is coffee drinking which is increasingly becoming a habit for
youngsters. Moreover coffee bars was unheard concept until a couple of year
ago, are suddenly becoming a big business. Coffee is slowly but surely
substituting tea. There is also rise in consumption of coffee. The specialty
coffee movement has gained much of its momentum caf coffee day and Barista
are the most popular and well know cafes
The college crowd rates them as one of the coolest hangouts. These through the
efforts of companies like Barista, caf coffee day and Starbucks. In India
companies sell similar product but their positing and target audience are very
different from each other. These players not only sell coffee and tea but also
food and other merchandise items.
Despite of serving to different audience these players complete with themselves.
Each player fight for its own share of market. They try to differentiate
themselves by the way of product or price or promotion. However they are also
facing the competition from the foreign player like Georgia, Starbucks etc. It

would be interesting to see how the competition differentiate and maintain their
share in the market
The most organized sector in the coffee caf industry, is the retail caf chain.
Off late, these chains have become extremely popular and are growing at an
ever-increasing pace. These retail chains have work with an organized structure
of man, material and money. The work on developing a recognized brand
consistent to all their outlets, which customers can easily relate to, wherever
they go. They provide customers
with a standardized level of service and quality at each of their outlets.
The vast popularity of these retail chains is shown in the rapid international
growth of brands like Starbucks. Customers can do to any Starbucks across the
world and know exactly what to expect. The main focus of my project is on two
nationally recognized retail caf chains: Barista & Caf Coffee Day.

WHAT QUESTIONS YOUR PROJECT CHOOSES TO

ANSWER

1. What is the first customer preference for coffee between CCD

and BARISTA ?
2. It gives the comparison of how the 2 brands differentiate
themselves from each other ?
3. It provides the areas of strengths of the coffee giants CCD and
BARISTA ?
4. The study gives the suggestions and recommendations for the
improvement ?
5. It gives the comparative consumption of the mentioned brands ?

METHODOLOGY FOR THE CBB

For the purpose of this study, I will prepare two research tools, both
questionnaire, to find out the relevant primary data pertaining to the
functioning and working of both Barista and Caf Coffee Day.
The data will be collected based on information provided by:
1. The management of the organization.
2. Customers visiting Barista and Caf Coffee Day outlets.
Besides the primary data will be collected with the help of the questionnaire,
I will also collect the relevant secondary data from various sources like
magazines, books and internet and newspapers.
Based on the relevant primary and secondary data, a comparative analysis
will be done so as to find out the areas of excellence and areas of
improvement of both organizations.
The areas of excellence and improvement will be identified based on factual
information, in light of which recommendations and suggestions will be
provided for the overall improvement of the organizations in the future.