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Case Analysis: Assignment 3
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Exploring Brand Association in the
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Indian Context: Cafe Coffee Day
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Submitted by,
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Amit Pathak
Navin Koirala
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Submitted to,
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Asst. Professor Rupesh Shrestha
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Synopsis:
The case was published on Feb 1, 2013 and it is written by S Ramesh Kumar and Eric Minj. This
case is about Caf coffee day as a brand and the leader in the coffee chain in the past and how it
is facing the challenges of CCD chains of sales. Caf Coffee day is the first leading coffee chain
in India market which change the whole perception of customer who prefers coffee the most. It is
the pioneer of the caf culture and the first to launch the coffee bar concept in India. . And it was
poised to cater to the younger segment of the customers to become an Indian mass value brand.

Case Facts:
It highlights on differentiation of CCD from the other specially coffee retail chains and to
strengthen its brand association among its loyal consumers, especially while the category of
cafes was new in the Indian market. The case also encloses few data surveyed from the loyal and
non loyal consumers of Caf Coffee Day. Besides this, the case carries out the various facts and
primary data about the brand association which are mentioned below:

The case study emphasizes the importance of brand associations and exploring in a
dynamic environment that is affected by competitive brands and changing lifestyles of

consumers.
It explains on how brand association contributes to brand equity.
It interprets the associations involving consensus maps; and learns how creating and

nurturing brand associations provide a competitive edge to a brand over other brands.
It enlighten about the brand difference of Caf Coffee Day from other coffee brands.
It focuses on loyal consumer brand perceive the brand.
It highlights about the communication between the customers and brand and the way
brand develop the unique association.


Issues

It emphasize on the brand association impact on the brands strategy on association.

How does loyal and non loyal customer perceive the brand Cafe Coffee Day?
What is the dominant association of the brand and how could it use these association?
How could the brand Cafe Coffee Day develop unique association in order to stay ahead
of competition?
How could Cafe Coffee Day communicate its unique association to the customer?

Analysis
Non-loyal customer find Cafe Coffee Day brand very expensive and they also perceive that the
price of the product is not competitively placed. Since, customer doesn't feel the difference in
pricing between Cafe Coffee Day and Barista Lavazza. Hence, these non-loyal customers must
have been comparing Cafe Coffee Day with some other local coffee outlet brands. And they
believe that the price at Cafe Coffee Day is not affordable and reasonable.
Similarly, non-loyal customer of Cafe Coffee Day doesnt find Cafe Coffee Day a peaceful place.
and it can be because of the target group being very wide ranging from 15 years to 29 years. 15
years student could be 9th, 10th, or 11th grade student and 29 year man can be a middle level
manager of a company. Hence, non-loyal customers complain of Cafe Coffee Day not being a
solitude place can be justified.
The loyal customer perceive Cafe Coffee Day as not expensive coffee brand. They perceive it as
a place where young and inspirational people come to meet friends and to have handout with
their friends. They do perceive Cafe Coffee Day in not having good coffee aroma, color and
good ingredients in comparison to Barista Lavazza rather a place for friends to hang out and
spend time among friends.

Now going through the average data from the case of various list of association, it can be
analysed that how customer perceives the Caf Coffee Day as a brand, whether they are loyal or
non loyal and comparing the average of Barista and CCD in terms of different list of association,
it can be known how both caf have positioned themselves in the Indian market. From the
perspective of loyal customer of Caf Coffee Day, it can be evaluated that how they perceive
CCD as a brand. According to the average, CCD loyal customers perceive themselves as highly
aspirational and those loyal customers come belongs to youth population from urban. The loyal
CCD customer also perceive themselves as fashion especially the youth who belongs from
college and age group 16-29 as well as those professionals who are very sophisticated who loves
to carry their work with their laptops and tabs and to have a formal meeting in a good and
peaceful environment and luxury dcor. For the loyal customer of CCD, CCD as brand is more
of a place to hangout, meet new peoples, spend times with the gatherings. These constituents
clearly hint CCD as a premium brand for customers which can be analyzed from Exhibit 2.
Things are very different as brand image of CCD when non loyal customers perceive CCD. From
Exhibit 1, it can be analyzed that non loyal customers who dont visit CCD more often perceive
CCD as expensive. Non loyal customer also denies with the fact that CCD is the place to enjoy
the privacy which CCD hasnt positioned themselves. CCD as clearly target to those who loves
to hangout and enjoy with friends. So Non loyal customer who feels to have privacy is not suited
for CCD.

Now evaluate CCD with its competitor Barista Lavazzas, there are certain aspects of association
in which the loyal customers of both brands feel and perceive quite similar. Loyal customers of
both the brand feel the it is affordable. And the brand carries a very luxurious image because of

the interior dcor and a place to relax for the loyal customers of both brands which is approached
under the point of parity. Whereas CCD as perceived more into fun part, a place to hangout with
friends, Barista Lavazzas has more focused on its quality of coffee like the ingredient, authentic
color of the coffee, energizing drink which have a lasting effect. And consuming coffee of
Barista brand highlights as a status and proud to have the coffee.
Customers of CCD have different perception toward the brand and there is a different perception
of loyal and non loyal customers. Loyal customer feels the brand suitable enough in terms of
ambience, and a fun oriented place to enjoy with friends whereas non loyal customer feels to be
more westernized and expensive.
Integrated Marketing Communication has to used to communicate the association with Cafe
Coffee Day. There are various option to communicate like, Advertising, Promotion, Event
Marketing and Sponsorship, public relation and publicity, Personal Selling, and internet
marketing. But Integrated marketing communication takes the approach of integrating all related
communication channel as per the communication objective, strategies and most importantly the
budget allocated for the communication activities.
As the target customer are from age group 15-29 and having a high average score on
sophistication and people being techno savvy, we think that social media marketing is very
crucial for the communication of the association. Similarly, TV channels targeted to the youth
and youth focused program could be used to broadcast the advertisement in the television. Since,
the youth population of the urban area are unlikely to listen to the radio. Hence, advertisement in
the radio is not justifiable. Furthermore, Print media like national daily and more particularly
magazine focusing youth, social issues, along with electronic gadgets is recommended.

Billboards can also be used to communicate its positioning as per the association made my
customer. Promotion and sponsorship of the event like concert can be justified as per the
association of Cafe Coffee Day by customer. And how much promotion and which media
depends upon the budget allocated.
In spite of all other media of communication, the most important media looking at the
association customer has made is social media. Social media especially facebook has high
penetration among Indian Urban Youth. Hence, communicating through social media is very
effective and Cafe Coffee Day should have interactive program using gadgets and social
conversation always being the theme of advertisement. Similarly, Twitter and YouTube can be
used to communicate the change in the positioning and association of Cafe Coffee Day.
Sposoring TV program like Coffee with Karan and Uploading that in Youtube can be very
significant. Similarly, shooting some chat program in Cafe Coffee Day and Uploading it in
Facebook, YouTube can be very significant.
Recommendation
We recommend the following things to Cafe Coffee Day:

We recommend them to use Digital Media more than any other media. And sponsoring
TV program showing some chat like Coffee with Karan and shooting chat program with
celebrity in the Cafe itself and uploading it in facebook and YouTube is highly

recommended.
CCD should more focus on non loyal customer by providing them according to their
needs. They feel it as consumption of CCD coffee is more expensive. The first

component is the affordability of the brand in which CCD has to focus on. Company has

to position themselves to non loyal customer that CCD is not an expensive brand.
CCD has target the youth population as more than 50% of Indian population are under the
age of 25 which means those group of population are into education. So from the insight,
CCD have to increase subsidized stores at educational institutions in India to ensure
effective communication of that affordability element and also to secure a strong

customer base since competitions are high.

CCD should also focus more offering to the loyal customer. Those customers who visit
more often should be provided with loyalty cards which gives its customer the concept

that being the premium brand of coffee, they can afford it.
CCD should focus more on its Point of differentiation focusing more on youth and the it
has a largest chain in India compared to its competitors which they can take benefit of by

having the high market share.

CCD should also focus on the quality of the product offereing as Barista is doing. They
have focus more on the ingredients and the color of the coffee. So that those customer
who only loves to have a good coffee can be attract toward CCD