Cafe Coffee Day Brand Strategy in Indiahttp://www.scribd.com/doc/98978819/Case-Study-on-Cafe-Coffee-Day-Brand-Strategy-in-India-PDFOrganized-Retailing-Case-Studies Case Study Contents 1. Introduction2. CCD an established brand image in India3.

3. CCDs wide network the anytime, anywhere cafe4. Exhibit 1: Total number of stores/cafes of Caf Coffee Day and its competitors5. 1996 2008, CCDs first store launch to building a strong competitive advantage6. Innovative formats to woo new customers7. Reinforcing brand image with the cluster approach strategy 8. Company-owned stores instead of franchises to not dilute brand value9. Lower pricing and no-segmentation approach10. From a largely south Indian retail chain to a national brand11. Cobranding12. Reinvigorating the brand and taking it to the next level13. Projecting a feeling of togetherness14. Silent brew masters special employee program15. Background Note (History of Cafe Coffee Day)16. Caf Coffee Day Quick Facts17. Exhibit 2: Various store/caf formats of Caf Coffee Day 18. Exhibit 3: Different divisions of Caf Coffee Day 19. Exhibit 4: Brand Logo of CCD and its significance20. Exhibit 5: Sample Consumer profile by Age group at Caf Coffee Day Case Study Abstract This case study covers the following issues:Examine and analyze Cafe Coffee Days brand strategy in India, its success andfuture challenges Introduction CCD today has become the largest youth aggregator, and from a marketing stand point, the success has come by focusing on the 3As: Accessibility, Affordabilityand Acceptability . - Bidisha Nagaraj, the Marketing president of Cafe Coffee Day Although demographically, a typical consumer would be male or female between 15-29 years of age, belonging to middle or upper middle class, we call our consumersyoung or young at heart. We are about juke boxes, good and affordable coffee and food. The brand fit is with youth or the young at heart. So we often look out for brandsthat are aspirational in nature. Sudipta Sen Gupta, Marketing head, Caf Coffee Day. CCD an established brand image in India Cafe Coffee Day (CCD) has an established brand image in India and ranks No 2 in theBrand Equitys Most Trusted Brands 2008 survey

 in the food servicescategory. Rival Barista is at No 5. CCD has been able to make a connection with theIndian consumers, predominantly among the youth. CCD is the market leader in Indiaand was awarded the Exclusive Brand Retailer of the Year by ICICI Bank in itsRetail Excellence Awards 2005 for the organized retail sector. CCDs wide network the anytime, anywhere cafe CCD has been able to make its brand presence felt through the sheer number of stores.CCD has 620 cafes at present and it has ambitious plans to launch more than 900 cafes by the end of the current financial year. This means launching one store every other day which is not surprising from a company which launched a cafe (in 2005) in Vienna, thecoffee capital of the world. CCD also has three cafes in Vienna, and two in Karachi,Pakistan. Lagging behind CCD in the Indian market, Barista has about 200 cafs, Java Jan 8, 2010 Tags: C AFE C OFFEE D AY ,CCD,C OFFEE R ETAILING Business and Management Case Studies HOMECASE STUDIESARTICLESGLOSSARYABOUTFAQ Search

7/3/12Case Study on Cafe Coffee Day - Brand Strategy in India (PDF), Organized Retailing Case Studies2/3www.casestudyinc.com/coffee-day-brand-strategy-india GazumpingRotable Acqui-hirePeter PrincipleIngredient Brand Green (around 75 cafs) and Mocha (around 25 cafs). The Indian organized sector haspotential for around 5,000 cafs but fewer than 1,000 cafs exist currently. Exhibit 1: Total number of stores/cafes of Caf Coffee Day andits competitors Download case study pdf to read more Case Study Keywords Cafe Coffee Day, CCD, Amalgamated Bean Coffee Trading Company Ltd., ABCTCL, V GSiddhartha, Caf Beat, Brand Equitys Most Trusted Brands 2008 survey, BidishaNagaraj Marketing president, brand image, brand management, Exclusive BrandRetailer of the Year, Barista, Java Green, Mocha, company owned stores, national brand, south Indian retail chain, Chikmagalur, Co-branding, international brandconsultant Landor, Silent brew masters special employee program, a feeling of togetherness, Coffee Day Exports, Coffee Day Xpress, Coffee Day Take Away (coffee vending machines), Coffee Day Fresh n Ground (ground coffee retail outlets), CoffeeDay FMCG (packaged filter coffee powder) Case Updates/Snippets CCDs vision : To be the only office for dialogue over a cup of coffee CCDs Expansion Strategy : Cafe Coffee Day has around 821 outlets in 115 citiesin India. CCD plans to take the total number of cafes to 1,000 by March 2010 anddouble it to 2,000 by 2014. (Update: By Jan 2012, CCD had approx 1,200 cafes and900 Express outlets) In October 2009, CCD announced that it will increase itsinternational presence from the current six outlets in Vienna and Pakistan to a totalof 50 stores across Europe and Middle East in two years time. International coffee chains in India Recent entrants in the Indian marketinclude Gloria Jeans, Coffee Bean & Tea Leaf and Illy Caf. Operating Formats Caf Coffee Day operates in both regular (Coffee Day Square) and premium formats (Lounge). Highway Cafes

: In 2004, CCD began cafes on highways. By 2009, the totalnumber of Caf Coffee Day highway cafes rose to 30 owing to the overwhelmingresponse it received from travellers. CCDs new brand identity : In October 2009, CCD unveiled a new brand logo, aDialogue Box, to weave the concept of Power of Dialogue. In accordance with thisnew brand identity, CCD planned to give all its existing outlets a new look by the endof 2009. Cafs would be redesigned to suit different environments such as book,music garden and cyber cafes suitable for corporate offices, university campus orneighborhood. The change plan included new smart menu, furniture design, amongothers. Coffee consumption in India is growing at 6% per annum compared to theglobal 2% plus. In India, the per capita consumption of coffee is around 85 grams while it is six kgs in the US. Milk production in India India is the largest producer and consumer of milk inthe world with 98% of milk being produced in rural India. Coffee production in India India ranks sixth as a producer of coffee in the world accounting for 4.5% of the global coffee production. India has about 170,000coffee farms cultivating around 900,000 acres of coffee trees. CCDs International Expansion Strategy In June, 2010 Cafe Coffee Day chain acquired Emporio for Rs 15 crore. Emporio is a Czech Republicbased cafchain present at 11 locations. CCD plans to co-brand the chain as Caf Coffee Day Emporio and later transition it to Caf Coffee Day. CCD is also present in Vienna.The company wants to expand in the East European region, West Asia and the Asia-Pacific region. Cafe Market in India Coffee retailers cover only 170 cities out of 3,000 inIndia (early 2011 reports). In 2008, according to Technopak Advisors, the Indianfood servcies market cafes, full-service restaurants, fast-food outlets/quick-service restaurants was estimated to be $6 billion (Rs 26,000 crore) with organizedplayers taking 13% of the market. (By 2014 this number is expected to increase upto 27%.). According to Technopak Advisors, the caf market in India is estimated at$150 million (Rs 678 crore) and growing at 40 per cent over the last five years. Organized coffee market in India : The organized coffee market in India isabout Rs 600 crores. This is approximately 20% of the total domestic coffeeconsumption (Rs 3,000 crores).

New Entrants in Indian Coffee Cafe market : In early 2011, HindustanUnilever, the FMCG giant planned to open a cafe outlet in Mumbai named Bru

7/3/12Case Study on Cafe Coffee Day - Brand Strategy in India (PDF), Organized Retailing Case Studies3/3www.casestudyinc.com/coffee-day-brand-strategy-india World Caf to popularize its in-house coffee brand Bru (HULs only coffee brandsold only in India). CCD to double its human resources count : CCD has 6,500 employees (as perFeb 2011 figures) with each cafe requiring about 6 employees. CCD plans to doubleits employee count by 2013. Lavazza Espression store in India : In 2011, Lavazza, the Italian coffee brandopened its first signature coffee shop Lavazza Espression in New Delhi, India. CoffeeDay Wakecup : In January 2012, CCD launched its own brand of coffeemaker called CoffeeDay Wakecup targeting all coffee lovers. The product will bemarketed at its 1125 cafes and 900 Express outlets. Competitor Lavazza hadlaunched its own portable coffee machines (Lavazza Blue 850) already but targetedthe premium segment with the price being higher than CCDs machines.In February 2012, Caf Coffee Day announced plans to install interactivetouchscreen tablets in 500 cafes across the country