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TABLE OF CONTENTS
• EXECUTIVE SUMMARY 3
• CONSUMER PROFILE 4
• ACKNOWLEDGEMENT 6
• SAMPLING TECHNIQUE 16
• DATA COLLECTION 17
• SAMPLE SIZE 18
• HYPOTHESIS 19
• ANALYSIS 20
• RECOMMENDATIONS 29
• QUESTIONNAIRE 31
EXECUTIVE SUMMARY:
CONSUMING NATION.
India has always been predominantly a Chai (Tea) drinking nation. However, there has
been a sudden change in this trend with coffee becoming more and more popular in
recent times especially among the younger population. The roadside Chai (Tea) thelas
(shops) outside colleges and offices have been replaced by hip coffee joints like Barista
and Café Coffee Day. The Chai (tea) that used to cost couple of rupees (5 cents) is
India has now becoming one of the fastest growing coffee markets in the world.
According to Technopak Advisors, a global retail consultancy firm, the organized coffee
retail business in India is over Rs.8 billion ($17 million), and the potential for coffee
With the Indian middle class consumer ready to spend more and be a part of global
lifestyle and culture, coffee parlours in the country are on an expansion spree. From
small-sized coffee parlours to classy coffee lounges leading coffee retailers such as Café
Coffee Day, Barista, Costa Coffee and Coffee World have all been fighting hard to lure
Cafe culture is the latest trend to take the nation by storm. It joined the race simultaneous
with the satellite culture. Although not as big, the culture has nonetheless caught on the
consumer fancy and has spawned quite a few coffee chains. Amongst the big guns is
CONSUMER PROFILE:
This study cannot be complete without looking at the ever changing habits and
preferences of consumers.
The consumer profile in India especially is one with varied cultural and traditional
Filter coffee is the preferred drink in south while instant coffee in north. Price also plays
In this study we have looked at the consumer from the following aspects:
Price
ACKNOWLEDGEMENT
6
The project is the result of the efforts of many people. We would like to place on record
our sincere thanks to the various people for their assistance, guidance and co-operation
First and Foremost, we owe our sincere thanks to Institute of Management & Computer
Studies for all the support provided in terms of the library for providing us with timely
requirements of books and also the computer lab for giving an access to the computers
Our overriding debts continue to the respondents without the time and sincere efforts of
whom the project would not have got its current shape. And last but not the least friends
and family members who have given us enough support, encouragement and blessings
India ranks 5th among the top 10 countries of the world, accounting for 3 % of the total
It is also the 5th largest coffee producer. Being a traditional tea consuming country, the
average coffee consumption in India was quite low at 10 cups per person annually.
People in the Northern region preferred instant coffee in contrast to the people in the
Coffee, a household beverage confined to South India became quite popular in the late
1990s. The late 1990s saw the emergence of coffee chains. Moreover, there was a
transition from the conventional and out dated coffee house to a more sophisticated and
trendy coffee bars. In the late 1990s, non-traditional coffee retailing outlets like coffee
bar chains, coffee vending machines, and specialty coffee powder shops offered exciting
growth opportunities. They constituted 50 % of sales in the Indian Coffee Industry. The
growth of these specialty and gourmet coffee shops was a result of the economic and
Today's coffee drinker who visits the cafés is mainly the youth between the ages of 15
and 35. Students form a majority of the customer base for the cafés. Café Coffee Day
estimates that about 60% of the footfalls in its 300 plus outlets are those of students.
Barista estimates the same to be 40% in its outlets. Many of these youngsters consider a
café as a meeting place for discussing their projects or just interacting with other students
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rather than as a place that just serves coffee. Many of these outlets have juke box music,
wi-fi connections, and even a cell phone charging station. It's a place where one can sit,
talk, relax and incidentally drink a cup of gourmet coffee with added flavors such as
chocolate, caramel, and hazelnut. Hence, many outlets serve more than just the various
varieties of gourmet coffee. Since students and youngsters in general prefer snacks rather
than meals, cafés serve both Indian and continental snacks. Costa Coffee as part of their
menu is planning on introducing wraps and actually adding an Indian flavor to suit the
local palate.
Barista and Café Coffee Day have entrenched themselves into the minds of the consumer.
They have outlets at almost every street corner and concentrating more on areas, which
are likely to be visited by youngsters. It would be rather difficult to steal customers from
the two leading chains even though they might claim to offer a `smoother' blend. Pricing
will be a major factor in this regard. Starbucks and Barnie's might invite traffic into their
outlets initially for the novelty aspect but might not lead to a loyal customer base as
consumers might realize that they are paying a huge price for the `un-perceived' value of
a `smoother' blend. Whether these foreign players will really make inroads and what slice
of the pie they will take is yet to be seen. It's certainly worth the wait to see them make a
LOGO:
Café Coffee Day is a chain of coffee shops in India. A division of Amalgamated Bean
Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Café Coffee Day. It
opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe
The cafe chain has had much success riding, and to some extent creating, the cafe culture
wave that swept across metropolitan India following the BPO boom and the resultant
increase in youth spending power. With a hip, trendy image, the chain attracts a lot of
Its different divisions include: Coffee Day Fresh 'n' Ground (which owns 350 coffee bean
and powder retail outlets), Coffee Day Xpress (which owns 341 Coffee Day kiosks),
Coffee Day Takeaway (which owns 7000 vending machines), Coffee Day Exports and
Coffee Day Perfect (FMCG Packaged Coffee) division. It is now entering the European
market as well, making forays into Pakistan, Austria and Germany to set up cafes abroad.
One unique aspect of Café Coffee Day is that it grows the coffee it serves. The coffee
Café Coffee Day has created its own identity. When one thinks of a café it’s got to be
Café Coffee Day. The font used for “Café” is called SLURRY. The upward swirl in the
logo depicts the freshness and the aroma it provides with every sip. It has emphasized
The Tag line - “A LOT CAN HAPPEN” is aptly chosen for the brand whose major
objective is to cater the youth in the 15–29 year age bracket. The location chosen by Café
Coffee Day also ensures that people can rejuvenate and be themselves. It has a well
equipped roasting unit catering to the specific requirement of the consumers. There are
Cafe Coffee Days after sales service team are well trained and certified to service a
wide range of manual, semi-auto to fully-auto Coffee machines and related equipments.
The vast knowledge and experience of Cafe Coffee Day Coffee team will enable them to
serve customers well. They have been able to secure a strong foothold in the marketplace
by ensuring customers are happy and need not look anywhere else for the best service
and product range. Customers have attested to the consistent flavors and aroma of
premium quality Coffee and comprehensive range of other products, made even better by
Cafe Coffee Day Coffee Team is confident that being part of a global network which
will give them strength and diversity as they strive to improve to service customers
better.Café Coffee Day believes that - “People are hired for what they know but fired
• Barista
• Cafe Mocha
• Qwikys
• Costa
• Mocha
• Qwikys
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2. Prices of products. 4 3
5. Ambience. 3.5 4
6. Availability of products. 4 4
Café Coffee Day is the clear winner as it exceeds Barista on the key
parameters
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Weakness
Strengths Lacks the power and strength
Taste & Quality of their expected to maintain brand
products. loyalty.
Grow their own coffee beans Average rating for their behavior
Projected as an “affordable” and service.
brand.
Opportunities
Over 40% of the population
Threats is under the age of 20,
The brand doesn’t project a hence untapped market
clear image to customers share and potential for
about what Café Coffee growth.
Day is all about. The use of clever
Brand Loyalty is not so strong collaborations (bookstore,
etc)
14
Cafe Coffee Day Coffee Company is changing its positioning from a premium retail
officials say this is because the nature of Cafe Coffee Day's clientele ranges from young
important issue."
Given below is the kind of Product Mix, Café Coffee Day has on their menu. It clearly
reflects the kind of marketing strategy it would like to undertake - Keep the Indian taste
alive.
The reason for selecting the brand ‘Cafe Coffee Day’ as the subject for research study
was to understand how the various attributes present or absent, with respect to a product
The study was also undertaken to analyze whether there was any scope for improvement
for the subject under consideration and what can be done to improve its standing vis a vis
its competitors. The study was important for us to gain valuable insights into the
behavioral patterns of the consumers when it comes to buying a product which has a
It was also necessary to understand how people react to a product which has a snob value
SAMPLING TECHNIQUE
The sampling technique applied was the stratified sampling technique. Target population
was first identified as students and working executives under the assumption that these
segments were among the most frequent users of the said product.
Thus two mutually exclusive strata were formed. Next from each strata at random,
respondents were identified and questionnaires were distributed so that data can be
collected. Also age – group was one of the factors that would be considered for deciding
sampling was used as questionnaires were distributed at random to students and the
working executives.
One of the shortfalls of the above technique would be that other consumers such as those
constituting a family have been completely ignored as only students and working people
have been considered. Had the above segment been included, our study would have been
more comprehensive and could have given us another dimension to look into.
17
DATA COLLECTION
Data was collected in the form of personal interview i.e. using the concept of mall
intercept. This method was selected, as it was the fastest way to collect data. If more
time was available then the respondents could have been targeted directly in the Coffee
shop at the appropriate time. Thus the primary data was collected through Surveys,
whereas the source for secondary data was the various websites.
SURVEY AREA
Since focus was only those Respondents who have visited Cafe Coffee Day, survey area
• Andheri (West)
• Dadar (East)
The questionnaire consisted of both open ended and close ended questions. Some sample
SAMPLE SIZE
Took a pilot survey of 20 candidates and asked them, “What is the deciding factor while
buying Coffee at a Coffee Bar”. It was found that 75% of the sampled respondents in the
pilot test were affected by the price. Thus we took price as the parameter for evaluating
N = (Z/E) 2 P * Q
= 0.10
Therefore N = 72 (approx)
HYPOTHESIS
HYPOTHESIS STATEMENT 1
To test which attribute plays the major role in drinking Coffee at Cafe Coffee Day
H0 = Price is the sole deciding factor while buying Coffee at Cafe Coffee Day
H1= Price is not the sole deciding factor while buying Coffee at Cafe Coffee Day
HYPOTHESIS STATEMENT 2
Time spent at CAFE COFFEE DAY is directly related with amount spent
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ANALYSIS
CATEGORY
Coffee Bars Total
Executives Students
Café Coffee Day 10 6 16
Barista 7 4 11
Café Coffee Day,
13 16 29
Barista
Café Coffee Day,
Costa Coffee, 2 4 6
Barista,Others
Café Coffee Day,
1 2 3
Costa Coffee, Barista
• From the table it was observed that 28% of the working respondents (i.e. 10 out of
• On the other hand only 16% student respondents (6 out of 36 student respondents)
i.e., student population are more prone to switching Brands as compared to,
Frequency Percent
Friends 23 31
Word of Mouth 8 11.1
Hoardings 1 1.3
Vicinity 12 16.6
Friends & Word of Mouth 10 13.8
Friends & Vicinity 9 12.5
Friends, Vicinity & Word of Mouth 6 8.3
Friends, Hoardings & Word of Mouth 1 1.3
Hoardings & Vicinity 2 2.7
Total 72 100.0
• Most of the respondents (31%) came to know about Cafe Coffee Day through
their peer group or word of mouth (13.8%), or because the Cafe was located in
• This shows that the circle of friends plays an important role in influencing the
• At the same time it also helps if the bar is located in your area of residence or
work – place.
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• The above question was specifically put so that the brand recall value of the brand
• Majority of the respondents (67.3%) did not associate Cafe Coffee Day with
Coffee.
• This was identified as one of the problem areas. Possible solutions are suggested
YES,
32.7%
NO,
67.3%
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CATEGORY
Category Total
Executives Students
Once in a week 4 10 14
How frequently do
Once a month 14 16 30
they Visit CCD
Once in Six Months 18 10 28
Total 36 36 72
• Through this question an attempt was made to analyse who are the frequent
visitors to the Bar and accordingly a strategy could be devised to target the
audience.
• The statistics revealed that students visit the bar more often than the working
executives while the execs visit the bar only once a while.
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16
14
12
10 Once in a week
Once a month
8
Once in Six Months
6
4
2
0
Executives Students
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IV. HOW MUCH TIME DO YOU SPEND AT CAFE COFFEE DAY V/S ONE
• The objective of this question was to study whether the spending increased with
time.
• It was observed that as the time spent at the bar increased, the tendency to spend
increased and this peaked for the category of people who spent around 1 – 2 hrs.
• Thus highlighting that people sitting for 1-2 hrs spend the most and after this
• This proves our Hypothesis (“Time spent at CAFE COFFEE DAY is directly
• The maximum order that was booked was for the price range of Rs. 50 – Rs. 150.
• Through the table it was found that one time spending of students was more in the
• Whereas working group are the ones who spent the most, their one time spending
• This also proves that working group is better source of income than student group,
one of the reasons being that working group has better purchasing power than
students.
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BAR
• Majority of the respondents surveyed (about 62.5% ) felt that Cafe Coffee Day
• This shows that Cafe Coffee Day has been successful to a considerable amount in
the minds of people. But they would need to work upon new strategies to keep
their position.
Yes
62.5%
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• From the below fig, it can be seen that ambience is highly valued at Cafe Coffee
80%
29.03
30.65
50.00
54.84
60%
POOR
61.29
40% AVERAGE
46.77
40.32
GOOD
19.35
16.13 11.29
9.68 11.29
1.61
0%
PRODUCTS QUALITY HYGIENE AMBIENCE SERVICE PROXIMITY PRICE
• This also proves our hypothesis 1 that price is not the deciding factor to visit
• It can be said after looking at fig below that working class ranked CAFE COFFEE
• On the other hand the students have ranked café Coffee day as the no 1 brand and
Barista 2nd
25
20
15 CCD
Barista
10 Others
0
Execuitve Students
• It can also be verified from the above responses that working class are brand loyal
• This also proves the hypothesis 2 “Students are not brand loyal”
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CONCLUSION/RECOMMENDATIONS
As per the results obtained during the course of the project we have come across the
• The most obvious fact that came out from the project was price was one of the
factors that served as a hindrance not only to the students, but also to the working
executives. Thus the most likely solution to this problem would be nothing but
decreasing the price but at the same time the profitability of the joint should not
be affected.
• The next possible step that the Coffee – bar should take is to increase its
awareness among its target audience. This it can achieve by various means of
advertising and that too keeping in mind the specific categories of its consumers.
For e.g. it can target the students by sponsoring the cultural events that are
• Further more the joint can also toy with the idea of floating special membership
cards for its patrons so that they would get certain rebates and this would result
into increase in the frequency of their visits as this policy will encourage them to
• Also to increase the reach of the consumers more and more outlets should be
established.
• The Coffee – bar can go in for competitive analysis to understand the competition
QUESTIONNAIRE
[Information provided by the respondent will be kept fully confidential and will be used
only for the academic purpose.]
Q7 Describe in one sentence what comes to your mind first, when you hear about
Cafe Coffee Day?
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____________________________________________________________________
_
Q8 Do you perceive Cafe Coffee Day as a perfect Coffee bar?
Yes No
Q10 What difference do you find between drinking Coffee at Cafe Coffee Day and at
other Coffee Bars
_______________________________________________________________________
_______________________________________________________________________
__
Q11 What is your average one time spending at Cafe Coffee Day?
A) Less than Rs.50 B) Rs.50 – Rs.150
C) Rs.150 – Rs.250 D) Above Rs.250
_______________________________________________________________________
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