Submitted BY:

Ansup Babu
Kumaresh Roy
Sadaseeb Choudhury
Somdeep Sen
 About The Industry

 Brief of the Company

 Purpose of the study

 Hypotheses

 Methodology

 Limitations

 Analysis and Findings

 SWOT Analysis

 Conclusions

 Annexure
 The Indian RTD tea and coffee industry stands at an estimated Rs 1,100 crore

 The market is expected to grow to a whopping Rs 2,250 crore by 2017

 Factors triggering growth:

- Improving disposable income

- Changing life styles

- Increasing influence of western culture

- Younger population

 Top three players: Cafe Coffee Day, Barista and Costa Coffee

 The competition in the market is likely to heat up with the entry Starbucks

Source: Zee Business

Year of Establishment 1996
Founder V. G. Siddhartha
Revenue US$450 million (As on 2012)
No. of stores 1481

Products Food & Beverage

Price Differential Pricing Strategy

Distribution Strategically located at six verticals

Promotion Sponsorships, collaborations, sales promotion, Cafe Coffee Day Card

Other Merchandize Coffee Makers, Coffee Mugs, Men/Women T Shirts, etc.

Market Share: 60% (as on 2012)

Follows Backward integration
Other Facts
Doesn’t go for franchising
Division of the largest coffee conglomerate- ABCTL

Source: Wikipedia & Hindustan times

To find out information about:

 Consumer Profile

 Brand Recall

 Customer visit details

 Customer Spending and consumption Pattern

 Customer Satisfaction
 Mean age of the CCD store traffic ranges from 25-35 years

 Café Coffee Day is perceived as a place to hang out with friends

 Convenience is one the most important factors influencing customer visits

 Hazra: Near Bhawanipur: Total Sample
Store Location Camac Street
Asutosh college Near Forum Size

Sample Size
20 15 15 50
Break up

Convenience Sampling

• People visiting CCD was interviewed through questionnaires to collect the primary data
• Internet had been used to collect secondary data
 The study has been conducted over a very short duration

 Due to the short duration

-The sample size is very small

- Non Probabilistic method of sampling has been used

Hence the findings should be taken as indicative

 Age (%) Household income per month in Rs
50
28-34K >34K
45

40

35

30
40%
25 46 44
20

15 60%
10
10
5

16-24 25-33 >33

 Mean age of the respondents: 26 years

 52% of the respondents are female

 50% of the respondents are students; rest are working professionals

 All the respondents have household hold income of Rs. 28,000 or more per month
 Respondents (%) TOM Recall order

1. Café Coffee Day

96 2. Barista
3. Can't Say

1. Starbucks
4 2. Café Coffee Day
3. Barista

 All the respondents mentioned Café Coffee Day as well as Barista

 4% of the respondents mentioned Starbucks- the newest entrant in the Indian coffee retailing
 Purppose of visit(%)
50
45 8 6
40 4
35
Value df P Value
30
25
20 42 40
15 Pearson Chi-
3.691 2 0.158
10 Square
5

Student Working Professional

To hang out with friends To consume food and hang out Others

 82% of the respondents look at CCD as a place to hang out

 As per Chi-Square value there is no association between occupation & purpose of visit
 100%

90%
16
80%

70%
Frequency of Visit %

60% Once in a month

48
50% Once in two Weeks
40%
30 >3 times in a week

30% 1-3times in a week

20%

10% 6
2
0%
Student Working Professional
Occupation

 Students prefer to visit the outlets at least once a week

 The ‘once in a two weeks’ bracket is popular among the working professionals
 Weekdays Weekends
50

Preferred Days (%)

26
24

Student Working Professional

Occupation

76% of the respondents prefer to visit the shop on weekdays

 Brands Mean Degree of Frequency

Café Coffee Day 3.9 High

Barista 0.68 Least

Costa Coffee 0 -

Others 0 -

 CCD has emerged as the most frequently visited brand

 Only 42% of the people have visited Barista

 None of the respondents have visited other competitor brand like Costa Coffee
 Factors Mean Score Degree of importance

Convenience 5.00 Most

Quality of Service 4.60 Most

Availability of preferred item(s) 4.06 High

Ambience 2.80 Moderate

 Convenience & quality of service at a coffee shop has emerged as the most important factors

 It is a tribute to the strategically located outlets and highly skilled manpower of CCD
 50
45
40
Preferred Items %

35 36 38
30 df P Value
25 Combo Deals
20 Food Pearson Chi-Square 2 0.774
15 6 Beverages
10 6
5 8 6

Student Working
Professional
Occupation

 74% of the respondents have shown preference for combo deals

 As per chi-square test, such preference is same across both set of occupations
 60 4

Amount Spend % 50

40
16 >200 (Rs)
30 54
100-200(Rs)
20 50-100(Rs)
20
10
2 4

28-34K >35
Household income per month

74% of the respondents prefer to spend Rs. 100-200 during their visit
 Barista Café Coffee Day

Factors Mean Satisfaction Level Mean Satisfaction Level

Quality of Items 4.4 Very High 4.4 Very High

Availability of preferred items 4.3 Very High 4.4 Very High
Service Delivery Time 4.0 Very High 4.4 Very High
Staff Behavior 4.4 Very High 4.3 Very High
Value for Money 2.0 Low 4.2 High
Store Ambience 4.4 Very High 4.1 High
Overall Infrastructure 4.3 Very High 4.3 Very High

•Customers are highly satisfied with the offerings of CCD & Barista
•Value for money is an emerged as a difference maker
•Customers perceive CCD has a quality brand that provides value for money
 Strength Weakness
 High degree of brand awareness • Absence of franchising may deter expansion
 Strong distribution network activities
 Cost reduction through backward integration
 Wide variety of product
 Excellent service
 Strong presence over the digital space

Opportunities Threats
 High growth potential of the RTD market •Presence of strong competition (direct & generic )
 Merchandizing •Entry of Starbucks
 Tapping the smaller towns
 Focusing on the food segment
 Globalization
 High growth potential of he RTD tea and coffee market

 Target Group: Youth in the middle and higher income

 Perceived CCD as a place to hang out

 Most frequent visitors: The 16-24 age bracket

 Most important factor influencing visit: Convenience

 Perceived as:

-Place to hang out

- Quality & value for money brand

 In cases where 5-point rating scale has been used, the interval for the range in

measuring the parameters has been calculated as : (5-1) / 5 = 0.8 , as below

Score Degree of

1 to 1.8 Least

1.81 to 2.6 Low

2.61 to 3.4 Average

3.41 to 4.2 High

Above 4.2 Most