Amity Business School: Coffee Bars in India

AMITY BUSINESS SCHOOL
Marketing Research
On
Coffee Bars in India
Submitted to: Submitted by:

Prof. S K Laroiya Rajeev Chaturvedi F-36
Mridul Sharma F-41
Aalok Awasthi F-42
Aashish Bhagat F-45
Alok Tripathi F-52
MBA class of 2012

Dated: 07th March 2011
1
Letter of Authorization
To,
Group 12 -section F
Rajeev Chaturvedi, Mridul Sharma, Aashish Bhagat, Aalok Awasthi, Alok Tripathi
I, hereby authorize the above students to conduct a research on “Effectiveness of

Coffee Bars in India” based on the disclaimer that the research information
collected by students shall be strictly for the purpose of Amity Business School’s
subject project of “Marketing Research” and no information will be further
disclosed to any other person.
Sincerely
(Dr. S.K. Laroiya)

Professor
Amity Business School
Amity University
Noida
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Letter of Transmittal
Dr. S.K. Laroiya

Professor
Amity Business School
Amity University
Noida.
March 07, 2011

Dear Sir,
We, the students of group 12 of section F (MBA Class of 2012) have completed
the project on March 07, 2011, which has been authorized by you. We are
thankful to you for providing the assistance and guidance at every step of the
research and compilation of the report.
The complete methodology is described in the report. Standard marketing
research practices were used in the conduct of the study, and we believe the
results to be valid and reliable within the constraints as defined in the report.
We consider that you will find the results to be interesting and certainly of use to
you in making your recommendations for coffee bars.
Sincerely
Group 12 -section F
Rajeev Chaturvedi
Mridul Sharma
Aashish Bhagat
Aalok Awasthi
Alok Tripathi
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ACKNOWLEDGEMENT
First and foremost we would like to express deep gratitude to and our heartfelt
thanks to our respected mentor Prof. S.K. Laroiya sir for his vital guidance and
unending support. His constant feedbacks on every step made the project a
great learning experience.
We would also like to take the opportunity to thank our batch mates and friends
who enriched us with their valuable inputs.
Also, we thank all those respondents for sparing their valuable time and filling up
our questionnaire which ultimately formed the base of our project.
The untiring support and valuable suggestions of all these people has led to the
project completion in time and with efficiency.
Group 12 Section F
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EXECUTIVE SUMMARY:-
In today’s world Coffee has become an indispensible part of our life.

Coffee Bars in India has recently increase their customers. Due to the
economical rates and skimming of the lots of brands available in the
scenario, it is nearly present in all the sections of the society. Coffee bars
industry provides immense potential for the growth and expansion due
to immense increase in the customer base with the passage of time.
Hence to make the most out of the growing coffee bars customer base, it
is important for the coffee bars industries to understand the consumer
behavior by understand the motivating factors influencing the buying
decision of the consumers.
Our project deals with understanding the motivational factors

underlying the buying decision in the coffee bars in India. In India due to
diverse attitudes and preferences, a number of motivational factors
influence the purchase decisions.
In our project we have taken a sample of respondents from almost all

locations of NCR.
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TABLE OF CONTENTS
Page
Chapter 1
INTRODUCTION……………………………………………………………………....07
 CAFÉ COFFEE DAY……………………………………………………………......09
 COSTA COFFEE…………………………………………………………………….10
 BARISTA…….……………………………………………………………………………………11
Chapter 2
PROJECT DETAILS AND OBJECTIVES ……………………………………....12
Chapter 3
RESEARCH METHODOLOGY…………………………………………………….14
Chapter 4
ANALYSIS AND INTERPRETATION…………………………………………..19
Chapter 5
LIMITATIONS OF THE RESEARCH……………………………………………55
Chapter 6
CONCLUSIONS ………………………………………………………………………..56
LEARNINGS...........................................................................................................57
BIBLIOGRAPHY...................................................................................................59
ANNEXURE……………………………………………………………………………..60
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Chapter 1
INTRODUCTION
Coffee Bars IN INDIA

Coffee bars are the popular hangout destinations among the
masses all over the Delhi NCR. People belonging to all age groups,
particularly young girls and guys, consider the coffee bar as a
great place to make and meet friends and enjoy a cup of
recharging drinks.
In recent years, coffee bars have popped up in every location, and

have become a profitable business venture. Café coffee day, Costa
coffee and Barista (LAVAZZA) are some of the most frequently
visited coffee bars in India.
The menus of the coffee bars include an assorted selection of
coffees, teas, and cold drinks. But the menu focuses mainly on a
wide range of cool and hot exotic coffees. Among the exotic
selection of coffees available in coffee bars: lattes, cappuccinos,
and espresso. Other than the exotic coffees, the menus of coffee
bars also include an array of fresh juice and soft drinks. Some
coffee bars even serve alcoholic beverages like beer, whisky, rum
and wine.
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Coffee bars also serve delicacies for breakfast, lunch, and
sometimes even dinner. The menu mainly consists of freshly
prepared soups, hot and cold sandwiches, salads, and wraps. All
the coffee bars have a separate menu for children that primarily
encompass children’s favorite snacks and drinks.
Other than eating and drinking, coffee bars are also perfect places
to enjoy music, socializing and partying. Music gives the
atmosphere a relaxed feel. Today, music has become a vital
component in most of the coffee bars. Nowadays most coffee
bars have facilities to accommodate business meetings, parties,
and celebrations. Some coffee bars even have separate area for
children and facilities for Internet browsing.
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THE COMPANIES OVERVIEW:-
1. CAFÉ COFFEE DAY:-
Café Coffee Day (CCD) pioneered the café concept in India in

1996 by opening its first café at Brigade Road in Bangalore.
Today, more than a decade later, Café Coffee Day is the largest
organized retail café chain in India with cafes functioning in every
nook and corner of the country. Drawing inspiration from this
overwhelming success, Café Coffee Day today has cafes in
Vienna, Austria and Karachi. What‟s more, new cafes are planned
across Middle East, Eastern Europe, Eurasia, Egypt and South East
Asia in the near future.
Their Divisions
 Coffee Day Fresh „n Ground.

 Coffee Day Xpress.
 Coffee Day Take Away
 Coffee Day Exports
 Coffee Day Perfect
The company is founded in 1996 headquarters are at banglore.
It has 1016 number of location with a revenue of 45 million
US dollor. The company has 5000 employees strength.
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2. COSTA COFFEE:-
Costa Coffee is a coffee house company based in the United

Kingdom founded in 1971 by Italian brothers Sergio and
Bruno Costa, as a wholesale operation supplying
roasted coffee to caterers and specialist Italian coffee shops.
Since 1995 it has been a subsidiary of,
the Whitbread company, since when the company has
grown to over 1700 stores in the UK and abroad. The
company was founded in 1971. The company has revenue of
approx 360 million US dollor. The company has 25000
employees strength.
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3. BARISTA:-
Barista Lavazza is a chain of espresso bars in India.

Headquartered in Noida, Barista currently has espresso bars
across India, Sri Lanka, Bangladesh and the Middle East. It
was founded in 1997 by Amit Judge and was part of his
group of companies. He sold part of the equity to first Tata
Coffee. Then after he and Tata Coffee fell apart, Sterling
then bought over the firm. In 2007, Sterling divested all their
stake to Lavazza. Barista Lavazza is currently owned by
Lavazza, Italy’s largest coffee company. Coffee is supplied by
the Indian roaster Fresh and Honest, headquartered
in Chennai. The latter is also owned by Lavazza. As of 2009,
the chain has 200 stores in India, with an estimated annual
revenue of Rs 200 crores.
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Chapter 2
PROJECT DETAILS
This project was designed keeping in mind the prime criteria‟s as to the
reasons of how and why a market condition is actually analyzed. Analysis
could not be enumerated on the basis of anticipations, but real statistics.
Statistics is based on product acceptance in any market and that too on the
basis of certain segmentations. A product launched without a thorough
market research is sure to face a disaster. This project would actually help in
ascertaining certain facts which would help in understanding the actual
reasons of the product‟s upward or downward sales graph. The product
which sees it‟s consumer as a part of it‟s origin dictates consumer behavior,
and hence market research of the given product would even reveal as to how
a developed strategy would also yield avenues of a better sales graph. This
project speaks of the service provided and accepted service comfort. It
would also talk about the acclimatization of the services with the consumer.
OBJECTIVES
Our primary Objective is to research factors influencing the customers while

choosing different coffee bars in India. We primary focus on the buying
habits of the customers and selecting the drinks and other associated items
with drinks in coffee bars. We analyze the demographics, different age
groups and their purchasing decisions according to their taste.
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 To find out the preference of Alcoholic beverages among the customers
in coffee bars.
 To find out the most preferred Coffee Bar in the industry.
 To find the key factors for denial & acceptance of Coffee Bars services.
 To find the most effective personality for advertising Coffee Bars.
 To find preference among consumers of coffee bars over regular
bars/pubs.
 To find out consumer attitude towards the various factors of competitive
brands.
 To find the relativeness of footfall with expenditure.
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Chapter 3
RESEARCH METHODOLOGY
INTRODUCTION
This chapter aims at understanding the research methodology used in this
marketing research project, establishing a framework of evaluation of
primary and secondary research. The techniques and concepts used during
primary research in order to arrive at the findings have been explained which
are also dealt with and lead to a logical deduction towards the analysis and
results.
The methodology adopted to accomplish this project was in accordance with
the topic assigned. The study was based on data collected mainly from
primary as well as secondary sources. Descriptive research methodology
was adopted for the purpose of study.
RESEARCH PROBLEM
The main intention of the project was to understand factual benefits and
acceptance of various types of Liquor‟s in Coffee Shops (which is now
called as Coffee Bars). It was an attempt to put forth the fact that an
acceptance of such kind of service actually can change life. The objective
also speaks about preferably of alcohol in coffee bars, but also its
accessibility modes & availability among all sections of people.
RESEARCH DESIGN
The researchers propose to first conduct an intensive secondary research to
understand the full impact and implication of the industry, to critically
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review the industry norms and reports, on which certain issues shall be
selected, which the researchers feel remain unanswered or liable to change,
this shall be further taken up in the next stage of exploratory research where
focused group shall screen through. This stage shall help the researchers to
restrict and select only the important question and issue, which inhabit
growth and segmentation in the industry. These set of questions are then
proposed to be studied under a descriptive research setting finally leading to
formation of hypothesis and testing the same under causal research.
TYPES OF RESEARCH
On the basis of fundamental objectives of the research, marketing research
projects are classified into two branches:
 Exploratory Research
 Conclusive Research
Exploratory Research:
Exploratory research is conducted when one is seeking insights into the
general nature of a situation, the possible decision alternatives, and the
relevant variables that need to be considered. While conducting our study we
used exploratory research, which was flexible and was aimed at identifying
all the attributes a customer might look at the ambience & Quality for
deciding to dine out in a coffee bar. We have taken a review of the thoughts
of the people about ambience and screened some issues which we as
researchers felt needed more clarification or study. These specific topics
were then taken to a focus group. The focus groups were indented to reveal
some of the issues which can influence consumer behavior about the product
when he is seeing the advertisement.
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DESCRIPTIVE RESEARCH.
We used descriptive research technique in our project.
SAMPLING TYPE
The type of sampling used was non probabilistic convenience sampling.
SAMPLE SIZE
The sample size used for the analysis is 210
DATA USED FOR ANALYSIS
Primary Data : Collected by the means of questionnaires

Secondary Data : Already existing data is called secondary data. We
collected them by following method –
 Internet
 Books
 Newspapers
RESEARCH INSTRUMENT
Structured questionnaires comprising of close ended questions were used as
research instruments. The method adopted for developing the above
mentioned questionnaires followed the following sequential order:
1. Determining the objective of the project and specific data to be sought.

2. Determining the process of interviewing.
3. Scrutinizing the question content.
4. Setting the response format.
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5. Setting the wording of the questions.
6. Setting the questionnaire structure.
7. Pre-testing, revising, redesigning and final draft.
QUESTIONNAIRES
We did a descriptive analysis by constructing a well structured questionnaire
and collected the primary data. We personally went to the respondents and
requested them to provide us with the details for filling the questionnaire.
FEATURES OF THE QUESTIONNAIRE

 Well structured
 Closed ended questions
 Dichotomous, branching questions also used
 Likert scaling used in a few questions
PRE-TESTING THE QUESTIONNAIRE

Before implementing the questionnaires in the field, a pilot study was
conducted to avoid any ambiguous questions and to see the effectiveness of
the questionnaires. A pilot survey with 7 consumers was conducted. After
Pre-Testing it was found that, few questions were not apprehend able by the
respondents; these were accordingly redesigned and revised so as to make
them more understandable. Finally the questionnaires were printed and used
in collecting responses for the survey.
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SOFTWARE USED FOR DATA ANALYSIS
 SPSS 18.0
 Microsft Excel
 Microsoft Word
 Microsoft Powerpoint
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Chapter 4
ANALYSIS
Question :- How frequently you consume Tea/Coffee ?
Objective : - To find the average time spent by people on watching tv :

Frequently you consume Tea/Coffee (approximately)?
Cumulative
Frequency Percent Valid Percent Percent
Valid On a daily basis 144 68.6 68.6 68.6
Once a week 41 19.5 19.5 88.1
Once a month 19 9.0 9.0 97.1
Others 6 2.9 2.9 100.0
Total 210 100.0 100.0
Interpretation:- From the Analysis we have got that Maximum people

(52.86%) go to Coffee Shop once in a month and then 23.33 % people go to
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coffee shop once in two months or rarely. While most importantly 11.09%
people visit twice in a month, 9.08% go once in a week & 3% go twice a
week only (collectively these three adds up to 23%). So it can put up this
way that all that these 23% are the trendsetters for the industry.
Question :- What time of the Day people normally visit coffee bars?
Objective:- Here our objective was just to identify the maximum turnaround
time at a given coffee shop.
Time of the day
Cumulative
Valid Morning 11 5.2 5.2 5.2
Afternoon 69 32.9 32.9 38.1
Evening 90 42.9 42.9 81.0
Night 40 19.0 19.0 100.0
Total 210 100.0 100.0
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Interpretation:- As per the responses we got the 42.9% people visit in the
evening while 32.9% visit in the afternoon. So 75% of the business is done
between 12pm to 8pm, which are peak hours for the business and operations
must be handled effectively during these hours.
Question :- Whom do you consume in coffee shop?

Objective :- In this question we have tried to analyze which is the most
preferred drink in the café‟s
Interpretation: Here we have got to know most people prefer sipping up

Tea/Coffee at the coffee bar.
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Question:- How comfortable are they with alcohol served in coffee shop?
Objective:- Analysis:-
Interpretation: After Analysis We come to know that 45.71 % of people are

comfortable with alcohol now being served in coffee shops while 54.29%
people said that they did not like the idea of alcohol being served in coffee
shops.
Question:- What brings you to coffee bars? .
Objective:- We just wanted to see what are the prime reasons for the footfall
in coffee bars therefore we have taken responses for this question.
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Analysis
Interpretation:- We come to know that Maximum people come to

coffee bars for Food (35.4%) while 32.5% come for Pleasure
whereas 25.4% come for Client Meeting. This helped us in
knowing where company should lay its focus on to increase
footfall. For eg: Serving delicious authentic food, decent place to
sit, hygienic conditions etc.
Question:- What else do you consume along with your beverage?

Objective:- Here we tried to analyze which add-ons people most prefer to
have with their drink.
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Analysis:-
Interpretation :- As far as most preferred add-ons in coffee bars is concerned

consumers prefer starters the most with 37.14%. Then comes the mini meals
which accounts for 27.14% while bottled water is 18.10% and Deserts for
17.62 %. The company needs to regularly innovate or restructure its product
line in terms of food, deserts and other eatables as it can‟t do much with
bottled water or canned food.
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Question : - Believe that brand‟s sales are affected by advertisement,
celebrity endorsements, logos, product qualities, packaging designs &
others?
Objective :- To know that any medium of advertisement has any effect on
buying behavior of the consumer.
Analysis:-
Cumulative
Valid Yes 133 63.3 63.3 63.3
No 77 36.7 36.7 100.0
Total 210 100.0 100.0
Interpretations:
We can say that the highly advertised brands and services possess more
advantage in terms of awareness, visibility and likeability, status symbol etc.
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As in the research 133 persons (out of 210samples) have rated positive
impact on their buying behavior.
Question : - Rate the coffee shops on a scale of (1-5)under the factors of

Ambience, Price, Quality.
Objective : - To know that which coffee shop has the highest branding
power.
Analysis:-
Ambience Pricing Quality
Barista 3.09 3.15 3.13
Café Coffee Day 2.51 3.09 3.53
Costa Coffee 2.73 3.1 3.26
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Interpretation:- 1. From the above Analysis it is interpreted that the
„Ambience‟ of Café Coffee Day was highly encouraging than at the second
the „Ambience‟ of Costa Coffee was encouraging and the least is Barista.
2. In terms of „Price‟of Barista is comparatively higher than comes Costa
Coffee & at last Café Coffee Day.
3. At last „Quality‟ of Café Coffee Day is comparatively given more
preference than Costa Coffee and then Barista
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So we can infer that Café Coffee Day success lies in the fact that they
provide better ambience, better quality at comparatively lesser price which is
the key to their success.
QUESTION : AGE GROUP:

Objective: Here we just wanted to know that which age group of people
have answered our questionnaire.
ANALYSIS :
Age Group
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Cumulative
Valid Student 18-25 117 55.7 55.7 55.7
Professional 26-35 44 21.0 21.0 76.7
Parent 36-45 33 15.7 15.7 92.4
Aged 45 or more 16 7.6 7.6 100.0
Total 210 100.0 100.0
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CROSS TABULATION ANALYSIS:
Objective:-Which age groups mostly visit Coffee Shops?

Analysis:-
Prefer visiting coffee shops at times * Age Group Crosstabulation
Count
Age Group
18-25 26-35 36-45 45 or more Total
Prefer visiting coffee shops Yes 93 37 30 13 173

at times No 24 7 3 3 37
Total 117 44 33 16 210
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Interpretation: According to our Analysis students or college going people
of age group (18-25 years) mostly visit coffee shops next followed by
working professional of age group (25-36).
Objective:- Which age group consume what in coffee bar ? It will be desired
to focus on the needs of different age group at different locations?
Analysis:-
Age Group * Consume in coffee shop Crosstabulation
Count
Consume in coffee shop
Soft
Alcoholic Drinks/other
Tea/Coffee Drinks beverages Total
Age Group Student 18-25 85 16 16 117
Professional 26-35 32 8 4 44
Parent 36-45 24 5 4 33
Aged 45 or more 15 1 0 16
Total 156 30 24 210
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Interpretation:- Here we come to know that of all the 4 age groups
1. Students normally consumes more Tea/Coffee & equal

preference is given to Alcoholic Drinks and Softdrinks.
2. Working Professional consumes Tea/Coffee more than

alcoholic beverage followed by least consumption of softdrinks.
3. Parent and Aged people consume mostly Tea/Coffee.
32
Objective:-What brings different age group to coffee bars and at what time
of the day?
Analysis:-
Age Group * Brings them to Coffee Bars * Time of the day Crosstabulation
Count
Time of the day Brings them to Coffee Bars
Food Client Meeting Pleasure Dating Total
Morning Age Group Student 18-25 2 3 1 6
Professional 26-35 0 1 1 2
Parent 36-45 1 2 0 3
Total 3 6 2 11
Afternoon Age Group Student 18-25 16 13 11 2 42
Professional 26-35 5 4 6 2 17
Parent 36-45 3 1 2 0 6
Aged 45 or more 0 2 0 2 4
Total 24 20 19 6 69
Evening Age Group Student 18-25 19 11 17 3 50
Parent 36-45 8 3 2 2 15
Total 38 18 28 5 89
Night Age Group Student 18-25 6 2 8 3 19
Parent 36-45 1 2 6 0 9
Total 9 9 19 3 40
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34
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Interpretation:- From the analysis we come to know that every age group
Student, Professional, Parent & aged people come to coffee bars for varied
reasons which keeps changing during the time of the day.
.
OBJECTIVE : To find out the expenditure pattern of people on different

beverages available at coffee bars
Spend at Coffee Bars * Drink Beer Crosstabulation
Drink Beer
Yes No Total
Spend at Coffee Bars 0-500 Count 56 55 111
% within Drink Beer 51.9% 53.9% 52.9%
500-1000 Count 39 33 72
1000-1500 Count 10 10 20
1500 or more Count 3 4 7

Total Count 108 102 210
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Spend at Coffee Bars * Drink Whisky/Scotch/Vodka Crosstabulation
Drink Whisky/Scotch/Vodka
Yes No
Spend at Coffee Bars 0-500 Count 52 59
% within Drink 50.0% 55.7%

Whisky/Scotch/Vodka
500-1000 Count 35 37

Whisky/Scotch/Vodka
1000-1500 Count 12 8

Whisky/Scotch/Vodka
1500 or more Count 5 2

Whisky/Scotch/Vodka
Total Count 104 106
% within Drink 100.0% 100.0%

Whisky/Scotch/Vodka
37
Spend at Coffee Bars * Drink Whisky/Scotch/Vodka Crosstabulation
Total
Spend at Coffee Bars 0-500 Count 111
% within Drink 52.9%

Whisky/Scotch/Vodka
500-1000 Count 72

Whisky/Scotch/Vodka
1000-1500 Count 20
% within Drink 9.5%

Whisky/Scotch/Vodka
1500 or more Count 7
% within Drink 3.3%

Whisky/Scotch/Vodka
Total Count 210

Whisky/Scotch/Vodka
38
Spend at Coffee Bars * Drink Hot Beverages like Coffee,Tea Crosstabulation
Drink Hot Beverages like

Coffee,Tea
1 2
% within Drink Hot 52.7% 60.0%

Beverages like Coffee,Tea
500-1000 Count 71 1

1000-1500 Count 20 0
% within Drink Hot 9.8% .0%


Total Count 205 5

Spend at Coffee Bars * Drink Hot Beverages like Coffee,Tea Crosstabulation
Total
% within Drink Hot 52.9%

500-1000 Count 72

1000-1500 Count 20


Total Count 210

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Spend at Coffee Bars * Drink Cold Beverages like Cold Coffee, Shakes Crosstabulation
Drink Cold Beverages like Cold

Coffee, Shakes
1 2
% within Drink Cold 52.2% 80.0%

Beverages like Cold Coffee,
Shakes
500-1000 Count 71 1

Shakes
1000-1500 Count 20 0
% within Drink Cold 9.8% .0%

Shakes
40
% within Drink Cold 3.4% .0%
Shakes
Total Count 205 5

Shakes
Spend at Coffee Bars * Drink Cold Beverages like Cold Coffee, Shakes
Crosstabulation
Total
% within Drink Cold 52.9%

Shakes
500-1000 Count 72

Shakes
1000-1500 Count 20

Shakes

Shakes
Total Count 210

Shakes
41
Spend at Coffee Bars * Drink Other Refreshments like softdrinks, canned juices Crosstabulation
Drink Other Refreshments like

softdrinks, canned juices
Yes No
% within Drink Other 54.0% 52.4%

Refreshments like
500-1000 Count 22 50

Refreshments like
1000-1500 Count 4 16

Refreshments like
42

Refreshments like
Total Count 63 147

Refreshments like
Spend at Coffee Bars * Drink Other Refreshments like softdrinks, canned juices
Crosstabulation
Total
% within Drink Other 52.9%

Refreshments like
500-1000 Count 72

Refreshments like
1000-1500 Count 20

Refreshments like

Refreshments like
Total Count 210

Refreshments like
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OBJECTIVE:- To analyse the difference in the expenditure by
consumers at coffee bars & regular bars?
Analysis:-
44
Interpretation:-
Here we come to know that at both the coffee bars and regular bars the
expenditure pattern of the consumers after the alcohol is permitted in the
coffee shops.
45
Objective:-To determine frequency of visit and the expenditure relation in
coffee bars
Analysis:-
Frequency of visit before the introduction of alcohol (monthly) * Spend at Coffee Bars Crosstabulation
Spend at Coffee Bars
0-500 500-1000 1000-1500
Frequency of visit before the 0-1 Count 44 10 5

introduction of alcohol % within Frequency of visit 72.1% 16.4% 8.2%
(monthly) before the introduction of
alcohol (monthly)
% within Spend at Coffee 39.6% 13.9% 25.0%

Bars
2-3 Count 34 38 8
% within Frequency of visit 42.0% 46.9% 9.9%

before the introduction of
alcohol (monthly)

Bars
4-5 Count 24 14 4

alcohol (monthly)

Bars

alcohol (monthly)

Bars

alcohol (monthly)

Bars
46
Frequency of visit before the introduction of alcohol (monthly) * Spend at Coffee Bars
Crosstabulation
Spend at Coffee
Bars
1500 or more Total
Frequency of visit before the 0-1 Count 2 61

introduction of alcohol % within Frequency of visit 3.3% 100.0%
(monthly) before the introduction of
alcohol (monthly)
% within Spend at Coffee 28.6% 29.0%

Bars
2-3 Count 1 81
% within Frequency of visit 1.2% 100.0%

alcohol (monthly)

Bars
4-5 Count 4 46

alcohol (monthly)

Bars
% within Frequency of visit .0% 100.0%

alcohol (monthly)
% within Spend at Coffee .0% 10.5%

Bars
Total Count 7 210

alcohol (monthly)

Bars
47
Frequency of visit after the introduction of alcohol (monthly) * Spend at Coffee Bars Crosstabulation
Spend at Coffee Bars
0-500 500-1000 1000-1500
Frequency of visit after the 0-1 Count 47 8 5

introduction of alcohol % within Frequency of visit 75.8% 12.9% 8.1%
(monthly) after the introduction of
alcohol (monthly)

Bars
2-3 Count 34 32 7

after the introduction of
alcohol (monthly)

Bars
4-5 Count 24 25 4

alcohol (monthly)

Bars
48

alcohol (monthly)

Bars

alcohol (monthly)

Bars
Frequency of visit after the introduction of alcohol (monthly) * Spend at Coffee Bars
Crosstabulation
Spend at Coffee
Bars
1500 or more Total
Frequency of visit after the 0-1 Count 2 62

introduction of alcohol % within Frequency of visit 3.2% 100.0%
(monthly) after the introduction of
alcohol (monthly)

Bars
2-3 Count 2 75

alcohol (monthly)

Bars
4-5 Count 0 53
% within Frequency of visit .0% 100.0%

alcohol (monthly)
% within Spend at Coffee .0% 25.2%

Bars
49

alcohol (monthly)

Bars
Total Count 7 210

alcohol (monthly)

Bars
50
INDEPENDENT T TEST
Objective:- Do you think people prefer going to coffee bars over normal
bars or pubs?
Prefer Coffee Bars over Pubs
Cumulative
Valid Strongly Agree 16 7.6 7.6 7.6
Somewhat Agree 28 13.3 13.3 21.0
Neutral 23 11.0 11.0 31.9
Somewhat Disagree 67 31.9 31.9 63.8
Strongly Disagree 76 36.2 36.2 100.0
Total 210 100.0 100.0
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H0: There is no preference among Coffee Bars & Regular Pubs
H1: There is preference among Coffee Bars & Pubs
H0=H1 Null Hypothesis;
H0/=H1 Alternate Hypothesis
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Prefer Coffee Bars over Pubs 210 3.76 1.280 .088
One-Sample Test
Test Value = 3
95% Confidence Interval of the

Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
Prefer Coffee Bars over Pubs 8.570 209 .000 .757 .58 .93
Inference: Using the Likert Scale, the result shows with the one sample T
test the consumer prefer Regular Bars or Pubs over Coffee Bars with mean
difference (0.757).
We reject Null Hypothesis and accept Alternate Hypothesis i.e. H0/=H1.
52
CORRELATION
Objective: To find any significant relation between frequency of visit before

& after the introduction of alcohol and Expenditure in coffee bar.
Correlations
Frequency of Frequency of
visit before the visit after the
introduction of introduction of
alcohol alcohol Spend at
(monthly) (monthly) Bar/Club
**
Frequency of visit before the Pearson Correlation 1 .553 .127
introduction of alcohol Sig. (2-tailed) .000 .066
(monthly) N 210 210 210
** **
Frequency of visit after the Pearson Correlation .553 1 .391
introduction of alcohol Sig. (2-tailed) .000 .000
(monthly) N 210 210 210
**
Spend at Bar/Club Pearson Correlation .127 .391 1
Sig. (2-tailed) .066 .000
N 210 210 210
**. Correlation is significant at the 0.01 level (2-tailed).
Inference: There is significant relation between frequency of visit after the

introduction of alcohol and Expenditure from consumer in coffee bar.
53
FOCUS GROUP STUDY:
We have conducted a focus group study in which the group of 5-6 people
discussed about all the six advertisement. Here we have first shown them all
the 6 ads then the discussion was started and they have talked about various
things there should be in an advertisement which can affect their purchase
and they have also discussed about relatedness of advertisements with their
products.
In focus group study we have also made available to our initiator so he has
tried to talked about each and every point mentioned in our questionnaire.
 Which coffee shop you prefer to visit and reasons for it?
 What you order in coffee shop is premeditated or you get
influenced by the flaunting menus & promotional offers?
 Are you convinced with the fact of allowing alcohol in coffee
shops? Justify
 In a business like Coffee Bars do you think this a turning point for
the profit maximization perspective?
54
LIMITATIONS:
1) Lack of interest and enthusiastic responses may have allowed biases in
this report. Test of sampling error could not be done due to the absence of
data regarding the total population size. Correctness of this report is
restricted and limited by the degree of authenticity of data collected and
sincerity and honesty of respondents.
2) Some of the responded have not been going to the coffee shops or rarely
visit, so there responses are considered to be unfavorable then this may
affect the results of analysis.
3) The research is not conducted in rural and smaller areas.
4) The sample is only representative of the populations of Noida and Delhi.
5) Since the sample size is small, minor variations may be found in the
responses of consumers at large.
55
CONCLUSION & RECOMMENDATIONS
In India, café business needs to focus on its pricing strategies and

catering the local needs, increasing awareness about its products and
operations and thus expanding the market share. Further it also needs to
switch to non-high street areas. For expanding the Indian consumer
market, it can cash on the elements such as its “Big global brand
name”, diversified product mix, IT technology and ambience.
1. Majority of the consumers are not very much satisfied with the
processing quality of Costa Coffee Products and offerings and
believe that Costa offerings don’t render value for money.
2. Not many consumers are aware about the varied offerings of

liquor in coffee shops and thus café companies need to adopt
promotional activities to merchandise themselves as a brand.
Open individual stores in non-high street areas.
3. Taking over, merging, or forming strategic alliances with other

coffee companies.
4. Majority of consumers think that Coffee Shops outlets which serve

alcohol are less in number and not conveniently located as they
have presence only in the posh areas.
5. If Consumers have ranked Costa & Barista below its competitor

(Café Coffee Day) then is on the basis of Price, Product Quality and
quantity, Personal Likings and preferences and Location.
56
Expensive
Low
Quality High
Quality
Non - Expensive
6. Coffee Bars are usually perceived as a place for hangout.
7. The most selling products of Coffee Bars are Muffins and drinks
and in drinks the most selling variety is Cappuccino followed by
Café Latte.
8. The consumers are of age 18 to 35 or usually above 20.
9. There is no loyalty bonus for the employees.
10. Expanding Indian consumer market.
11. Market Development - Diversification of the company’s

branches from large super centered to local based sites.
57
12. Increasing awareness about its products and operations and
thus 7P’s of Service Industry.
58
BIBLIOGRAPHY
1. www.youtube.com
2. www.wikipedia.com
3. www.costacoffee.uk
4. www.cafecoffeeday.in
5. www.baristalavazza.com
6. www.marketingresearch.com
7. www.spss.com/info
8. www.imagesfood.com/news.aspx?id=1366andtopic=1
9. www.indiancoffee.org/newsview.php?newsid=64
10.www.costa.co.uk
59
ANNEXURE
 QUESTIONNAIRE

 Q1. How often do you dine in a restaurant?
(a) Daily
(b)Few times a week
(c) Once a week
(d)Twice a month
(e)Once a month
(f)Rarely
Q2. How frequently do you consume Tea/Coffee (approximately)?

{a} On a daily basis {b} Once a week {c}Once a month
{d}Other (please state):
 Q3. Do you prefer visiting coffee shops at times?
{a} Yes {b} No
 Q4. If yes, then how often do you visit coffee shops?
{a}Once a week
{b}Few times a week
{c} Once a month
{d}Twice a month
{e}Rarely
Q5. Which is your favorite coffee shop?

{a} Barista {b} Café Coffee Day {c} Costa Coffee
{d} Other
60
 Q6. Usually, at what time of the day do you visit a coffee shop?
{a} Morning {b} Noon {c} Night
{d}All Day
 Q7. Normally, what do you prefer consuming in coffee bars?
{a} Tea/Coffee {b} Alcoholic Drinks {c} Soft
Drinks/other beverages
 Q8.Are you comfortable with alcohol being served in coffee bars you usually
visit? {a} Yes
{b} No
 Q9.Do you think it is a good idea to allow alcohol in coffee bars?
{a} Yes {b} No
 Q10. What type of beverages you consume at coffee bars? (Check all that apply)
{a} Beer
{b} Whisky/ Scotch/Vodka
{c} Wine
{d} Hot Beverages like Coffee, Tea
{e} Cold Beverages like Cold Coffee, Shakes, Iced Tea
{f} Other Refreshments
 Q11. What brings you to coffee shop/ coffee bars?
{a} Food {b} Client Meeting {c} Pleasure
{d} Dating
 Q12. Do you think people prefer going to coffee bars over normal bars or pubs?
{a} Strongly Agree
{b} Somewhat Agree
{c} Neutral
{d} Somewhat Disagree
{e} Strongly Disagree
 Q13. What else do you consume along with your coffee/drink at the coffee bar?
{a} Starters {b} Aerated Water {c} Mini Meals
{d} Deserts
61
 Q14. On an average, how frequently you visit coffee bars per month?
(a) Before the introduction of alcoholic drinks-
{a} 0-1 {b} 2-3 {c} 4-5 {d}
6 or more
 (b) After the introduction of alcoholic drinks?
{a} 0-1 {b} 2-3 {c} 4-5 {d}
6 or more

 Q15. How much do you spend during your regular visit to a coffee bar?
{a} Rs.0- 500 (b) Rs. 500-1000 (c) Rs. 1000-1500
(d) Rs. 1500 or more
 Q16. How much do you spend, when you go to a bar/club?
{a} Rs.0- 500 (b) Rs 500-1000 (c) Rs 1000-1500
(d) Rs 1500 or more
 Q17. Do you think that you have increased your expenditure in coffee bars with
the introduction of alcoholic drinks?
{a}Yes {b} No
 Q18. Do you believe that the brand‟s sales are affected by advertisements,
celebrity endorsements, images, product qualities, package designs and other
factors?
{a}Yes {b} No
If so, which one of them is the most important to you?
……………………………………………………………..
Ambience Pricing Quality Friendliness Wi-Fi Availability of

of Staff Accessibilit Preferred Brands
y
Barista
62
Café Coffee Day
Costa Coffee
 Q19. On a scale of 1-5 (1 being the minimum & 5 being maximum), Please rate
the following factors in the specified coffee bar as they appear to you.

 Thank you for filling in this questionnaire. Your response is of great significance
to us.
 Name:-
 Gender-- (a) Male (b) Female
 Age Group (in years) -- (a) 18-25 (b) 26-35 (c) 36-45
(d) 45 or more
 Mobile No.-
63

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AMITY BUSINESS SCHOOL

Submitted to: Submitted by:

MBA class of 2012

I, hereby authorize the above students to conduct a research on “Effectiveness of

(Dr. S.K. Laroiya)

Dr. S.K. Laroiya

March 07, 2011

great learning experience.

who enriched us with their valuable inputs.

our questionnaire which ultimately formed the base of our project.

project completion in time and with efficiency.

In today’s world Coffee has become an indispensible part of our life.

Our project deals with understanding the motivational factors

In our project we have taken a sample of respondents from almost all

Coffee Bars IN INDIA

In recent years, coffee bars have popped up in every location, and

1. CAFÉ COFFEE DAY:-

Café Coffee Day (CCD) pioneered the café concept in India in

 Coffee Day Fresh „n Ground.

Costa Coffee is a coffee house company based in the United

Barista Lavazza is a chain of espresso bars in India.

Our primary Objective is to research factors influencing the customers while

DATA USED FOR ANALYSIS

Primary Data : Collected by the means of questionnaires

1. Determining the objective of the project and specific data to be sought.

FEATURES OF THE QUESTIONNAIRE

PRE-TESTING THE QUESTIONNAIRE

Objective : - To find the average time spent by people on watching tv :

Valid On a daily basis 144 68.6 68.6 68.6

Once a week 41 19.5 19.5 88.1

Once a month 19 9.0 9.0 97.1

Others 6 2.9 2.9 100.0

Total 210 100.0 100.0

Interpretation:- From the Analysis we have got that Maximum people

Time of the day

Valid Morning 11 5.2 5.2 5.2

Afternoon 69 32.9 32.9 38.1

Evening 90 42.9 42.9 81.0

Night 40 19.0 19.0 100.0

Total 210 100.0 100.0

Question :- Whom do you consume in coffee shop?

Interpretation: Here we have got to know most people prefer sipping up

Interpretation: After Analysis We come to know that 45.71 % of people are

Question:- What brings you to coffee bars? .

Interpretation:- We come to know that Maximum people come to

Question:- What else do you consume along with your beverage?

Interpretation :- As far as most preferred add-ons in coffee bars is concerned

Valid Yes 133 63.3 63.3 63.3

No 77 36.7 36.7 100.0

Total 210 100.0 100.0

Question : - Rate the coffee shops on a scale of (1-5)under the factors of

Ambience Pricing Quality

Barista 3.09 3.15 3.13

Café Coffee Day 2.51 3.09 3.53

Costa Coffee 2.73 3.1 3.26

QUESTION : AGE GROUP:

Valid Student 18-25 117 55.7 55.7 55.7

Professional 26-35 44 21.0 21.0 76.7

Parent 36-45 33 15.7 15.7 92.4

Aged 45 or more 16 7.6 7.6 100.0

Total 210 100.0 100.0

Objective:-Which age groups mostly visit Coffee Shops?