CAFÉ COFFEE DAY

BRAND STRATEGY

GROUP 8
Debjani Dutta | Madhumita Kumari |Meemoh Shrivastava
Parul Mehrotra | Rupali Jain
ABOUT THE COMPANY…

• Café Coffee Day (abbreviated as CCD) is an Indian café chain owned by Coffee Day
Global Limited, a subsidiary of Coffee Day Enterprises Limited. Coffee Day serves 1.8
billion cups of coffee, annually, in six countries

• Logo: the logo of brand CCD is a symbol of dialogue box and uses a specially
created font and promotes the idea of “power of dialogue” which completely
resonates with the idea of chatting over coffee

• Tagline: the tagline “A lot can happen over coffee” attracts youth population
and promotes the idea of friendship and getting to know each other well over
coffee conversations

• Ambience: CCD cafes are designed and positioned mainly in areas

inside the university campus or office spaces for light conversations
promoting feeling of romance and friendship
BRAND EQUITY

High Loyalty,
Strong Connection,
Repeat Visits

Quality, Warm,
Affordable, Social Hub,
Hangout Place Relaxation

Lively atmosphere, Accessible,

Reasonable prices Casual and homely

Salience: Anytime, anywhere coffee

POP/POD FRAMEWORK

1. No offerings for 1. Affordable coffee and quick meal

segments apart 2. Largest youth aggregator
from youth
2. Global offerings POD (US)
availability CUSTOMER COMPANY’s 1. Coffee and snacks
UNMET OFFERINGS 2. Localized offerings
NEEDS
POP

1. Coffee
POD (THEM) 2. Place to relax
and have fun

1. Better quality of
COMPETITION’s
service
OFFERINGS
2. Premium coffee
3. Feedback system 1. Ambience
2. Premium coffee café
3. Global brand
 CORE STRATEGY

CCD’s retail strategy is based on Affordability (to cater to the age segment 15-29 years), Accessibility (ensures
café’s are available at an arm’s reach and thereby get a high footfall) and Acceptability (to project themselves as a
place where people can meet, and hang out for hours to talk).

Product, Promotion, Price & Place

• CCD offers a wide range of PRODUCTS such as coffee and snacks. CCD has evolved it’s snack range to cater
to the Indian taste buds and includes things like samosa, biryani, masala sandwich, tikka sandwich etc
• CCD hasn’t indulged in TV commercials or advertisements for their PROMOTION. They initially launched a
TVC in 2012, but after that they have primarily relied on the promotion by word of mouth, and by opening
new stores and making the people know about the opening ceremony of the outlet
• As of march end 2016, CCD had 1607 cafes (PLACES) in 231 cities and 579 CCD Value Express kiosks.
There are 35,441 Vending machines that dispense coffee at corporates and hotels.
• As CCDs target audience lies in the age bracket of 15- 29, they have PRICE their coffees from INR 100 to
300, to be able to satisfy their customers.
TARGET CUSTOMERS & COMPETITORS

• Youth in middle and income

group
• Office goers

• Barista
• Café Mocha
• Costa Coffee
• Starbucks
ANALYSIS
Parameter Value & Comments

Type of experiment Online Based survey

No. of participants 29

Targeted segment Young mid-20s, educated, affluent

As the survey was done from ISB and most of the participants were
from ISB, some of the data might have biases of the local conditions

Type of questions Brand recall, Brand loyalty, Rating of attributes for specific brand,
individual preference
ANALYSIS – QUANT MODELS USED

Quant model Details

Brand recall Check the brand recall, its tag line recall

Brand Asset valuation Range of question to gauge the differentiation, relevance , esteem
(BAV)model and knowledge in order to deduce Brand strength and Brand stature

MDS – Multi dimensional Map the response for a number of features and attributes recall and
scaling reduce the number of features in the data so as to visualize which
observations are similar,

Conjoint To check which attributes are more important to the targeted

consumers
ANALYSIS – BRAND RECALL
ANALYSIS – MDS AND CONJOINT ANALYSIS

• In terms price utility, CCD did extremely bad, Barista was considered cheap, whereas Starbucks was rated as
just in the price utility
• In terms of quality and variety Starbucks performed way ahead of the other brands
• For customers the conjoint results showcased that quality of coffee is the most important aspect of a café
followed by price and location
ANALYSIS – BAV MODEL
ANALYSIS – BAV MODEL
BRAND LOYALTY AND STRENGTH

Observations:
• Starbucks has very high customer loyalty and consumer fell comfortable referring their friends to Starbucks,
an indicator of high net promoter score (NPS)
• CCD is playing catch up in all respects.
BUT ITS all DOOM and GLOOM for CCD….

Observations:
• Higher number of people are actually going to CCD (but there could be a sample bias)
• Higher people believe that CCD has a higher potential to do better.
• Most important the number of memories associated with CCD is much higher.
SWOT ANALYSIS

Strength Weakness
1. Cafe Coffee Day has an excellent brand name and brand visibility 1. High competition in this segment means limited market share
for Cafe Coffee Day
2. Huge young crowd as target group comes at Cafe Coffee Day
2. High brand switching due to many options available to
3. Excellent ambience and service customers
4. Cafe Coffee Day has over 1000 outlets and 300,000 visitors per day
5. It produces/grows the coffee it serves hence reducing the cost
6. More than 5000+ employees in the Cafe Coffee Day organization

SWOT
Opportunities Threats

1. Competition from foreign players like Starbucks can adversely

1. Cafe Coffee Day can tap the smaller towns/cities effect Cafe Coffee Day's market share
2. Merchandising can benefit Cafe Coffee Day even more 2. Dependent on Govt commodity rates
3. Tie ups with other companies for promotion 3. Large unorganized market can cause business losses
RECOMMENDATIONS AND STRATEGY

Weakness
Improve brand recall
Spend more on online channels such as Youtube, Facebook, Twitter etc

Associate CCD with old memories

Create online story around old school or college stories of youths to show emotional connect

Differentiate the 3 offerings

Differentiate ambience and offerings of café, lounge and kiosks
THANK YOU!