CCD-BRAND ASSOCIATION

ANKUR KHANNA, PRABHJOT, PREETI

1

Key points
This case attempts to explore the dominant brand associations that CCD (Caf Coffee Day) can establish
for itself and could use them with the advantage of being a pioneering brand in bringing the concept of
cafes to India. CCDs brand strategy was to build a differentiation to distinct itself from its competitors.
The challenge was to develop the unique associations and communicate these to its consumers.
Key summary points
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 cities in India. CCD plans to take
the total number of cafes to 1,000 by March 2010 and double it to 2,000 by 2014. (Update: By Jan 2012,
CCD had approx 1,200 cafes and 900 Express outlets) In October 2009, CCD announced that it will increase
its international presence from the current six outlets in Vienna and Pakistan to a total of 50 stores across
Europe and Middle East in two years time.
International coffee chains in India: Recent entrants in the Indian market include 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).
CCDs new brand identity: In October 2009, CCD unveiled a new brand logo, a Dialogue Box, to weave the
concept of Power of Dialogue. In accordance with this new brand identity, CCD planned to give all its
existing outlets a new look by the end of 2009. Cafs would be redesigned to suit different environments
such as book, music garden and cyber cafes suitable for corporate offices, university campus or
neighborhood. The change plan included new smart menu, furniture design, among others.
New Entrants in Indian Coffee Cafe market: In early 2011, Hindustan Unilever, the FMCG giant planned
to open a cafe outlet in Mumbai named Bru World Cafto popularize its in-house coffee brand Bru (HULs
only coffee brand sold only in India). Lavazza Espression store in India: In 2011, Lavazza, the Italian coffee
brand opened its first signature coffee shop Lavazza Espression in New Delhi, India.
Question1. How would you analyse the various kind of associations that are associated with the three
categories of respondents provided in Exhibit 1, 2 and 3?
Answer1. The coffee brands have created a significant amount of awareness among the youth which is
depicted by their responses in the survey. There are different parameters like the quality of the product,
ambience, price, place, the overall user experience etc rated by the respondents. Respondents from all
the three exhibits agree that the brands are high in terms of associating it with the following:-
High Response:
Place for the young and highly inspirational customers
Hangout with their formal and informal friends
It has the lasting effect on customer
2

Quality Product
The three kinds of associations spell out their different results which is evident from the kind of
responses they have recorded.
However, there is a high association with the quality and ambience of the coffee place but still brands as
a product are not able to associate themselves with consumer.
Medium Association:
Brand makes one feel proud
Consuming these brands of coffee makes one feel refreshed and energized
One feels westernized while drinking the coffee associated with this brand of coffee
Brands guarantee satisfaction
Medium to Lower Association
Customers not loyal to the brand agrees with the quality and ambience but they think the product is
overrated.
Also they have rated the price parameter low whereas price in CCD is comparatively lower than
others.
Other Observations
The authenticity of the color has been given an average rating by the set of respondents where as a
high rating has been given by the loyal customers of CCD.
People loyal to CCD find it as an ideal place to hang out with their friends and have given them a high
rating. The coffee lovers loyal to Barista Lavassa have given the same an average rating.
Inference from the exhibits:
When we look at the non-loyal segment of the customers one who probably visited the caf once in a
while. They all have a tendency to feel that its an expensive affaire to go out and spend on coffee along
with they agree to the fact with very high average that its for young and highly aspirational customers.
The market environment is every changing and with increase in the dynamic demographics of tech savvy
people who like to sit in places with good ambience where they can sit and spend time with their friends.
On the other hand we have people who are loyal CCD customers they dont feel that its expensive or
overpriced. They are ready to shell out money for the experience which CCD is providing the aroma of the
coffee which lingers in the ambience is something they associate with feeling proud. The most important
association which the loyal CCD customers have is that of Memories which they have spent with their
friends and family while having a sip of coffee. A sense of professionalism & being sophisticated in
associated with people who are loyal to CCD. Lastly, when we talk about the customers who are loyal to
Barista we see some stark difference in terms of associations as they feel the quality of ingredient with
which they make their coffee is very high which makes them proud and adds to their snob value of having
coffee at a caf.

3

Associative network memory model CCD

Associative network memory model Barista


CCD
Sophisticate
d Image
Menories of
time spent
Quality time
spent
Not
expensive
Refreshed &
Energised
Barrista
Quality
Ingredient
Aroma &
Ambience
High &
More Elite
Reasonable
&
Affordable
Solitude
4

Question 2. What kind of consensus map would you construct from the analysis of the data that you
performed as part of your response to Q1?
Answer 2. Since all dimensions were tested across three different segments of consumers, it showed
different results leading to different kind of associations to the brand. Segments of consumers itself
means having formed categories based on the common needs and priorities that can be a result of
different traits or demographics.
CCD being a pioneering brand have an advantage in terms of brand associations that it can strengthen.
Also, out of four Ps of marketing mix, apart from product aspect, it is strong in terms of other elements.
In fact, it came out with its first advertisement only after a decade or so. It has developed itself a loyal
customer base who are price insensitive and ready to pay for having a sensorial experience because they
feel that its worth it. The aroma of the coffee which lingers in the ambience is something they associate
with feeling proud. The most important association which the loyal CCD customers have is memories
which they have spent with their friends and family while having spending a good time at the place.
Another thing to be noted here is that a sense of professionalism and being sophisticated is associated
with people who are loyal to CCD.
Non-loyal segment of consumers are price sensitive and as they have not yet established the association
with the brand and does not have the brand knowledge. Also they feel that the place is meant for young
and highly inspirational customers which is very generic.
Customers who are loyal to Barista are different in terms of associations as they feel the quality of
ingredient with which they make their coffee is very high which makes them proud and adds to their
prestige value or status symbol of having coffee at a caf that is having an excellent setting . Also they are
trying to have authentic flavors and tastes of coffee which they feel that the brand provides. The brand
image is very strong in terms of sophistication and global lifestyle. Again loyal customers are price sensitive
which is seen in the responses.
In order to build the brand equity, the work should be done on positive associations by the respective
brands. This can further build the brand image which can be differentiated from its competitors and must
always be distinctive. Both, brand awareness and brand image has to be there for brand knowledge.
Also it is very important to work not only on the brand associations but also on the strength of that
association i.e. how strong it is to the customers.
All these factors will lead to the brand equity and differentiation which is the sum total of customer
responses.



5

Q- What are inferences that you would draw from the consensus maps? How you approach the objectives
of strengthening Caf Coffee Days positioning using consensus maps?
Ans: The inferences drawn by comparing Exhibit 2 and Exhibit 3 i.e. loyal consumers of Caf Coffee day
and loyal consumers of Barista are:
Caf Coffee Day associations Barista Lavazzas association
An average of 3.66 consumers felt the aroma
pleasant
An average of 3.86 consumers felt its aroma
more pleasant
An average of 4.20 consumers felt that this
brand projects a sophisticated image.
Whereas an average of 4.26 consumers felt
Barista brand projects a sophisticated image
Only an average of 3.23 consumers feel proud
about drinking coffee in CCD
Whereas an average of 4.00 consumers feel
proud about drinking coffee
An average of 3.6 respondents felt its price
affordable and reasonable
An average of 3.74 respondents felt its price
affordable and reasonable
On an average 3.71 respondents felt the brand
to have authentic colour of coffee
Whereas an average of 4.17 respondents felt the
brand to have authentic colour of coffee
Only an average of 3.69 respondents felt
refreshed and energized after consuming it
Whereas an average of 4.03 fell respondents felt
refreshed and energized after consuming it
An average of 4.03 respondents fell that it uses
quality ingredients
Whereas an average of 4.23 respondents fell
that it uses quality ingredients
Only 3.91 respondents on an average fell that
the strength of this brand is appropriate and had
long lasting effect.
Whereas 4.17 respondents on an average fell
that the strength of this brand is appropriate and
had long lasting effect.
Only 3.89 respondents on an average felt it as a
quality coffee which guarantees them
satisfaction
4.11 respondents on an average felt it as a
quality coffee which guarantees them
satisfaction
Only 3.89 respondents on an average felt the
ambience super exciting.
Whereas 4.03 respondents on an average felt
the ambience super exciting.

So these difference in the responses clearly indicates that on some associations such as price, aroma,
coffee colour, ambience, long lasting fresh feelings etc. Barista scores higher compared to Caf Coffee Day
i.e. Barista is preferred over CCD based on these associations.
Now when we compare the association with three kinds of respondents such as Non- loyal respondents
of Caf Coffee Day, loyal consumers of Caf Coffee Day and loyal consumers of Barista Lavazza we infer
the following common associations.
Place for the young and highly inspirational customers
Hangout with their formal and informal friends
New life style: place to hangout, reminds them time they spend with their friends, good ambience-
interiors, lighting, dcor, etc. creates excitement
6

Quality Product
Lasting effect
We can say that brands are able to create an awareness, new life style and unique ambience but when it
comes to brand association there is still a lot of work to be done.
The consumers in general visit a coffee shop to hang-out with their friends and unwind themselves
to have a nice overall experience.
The coffee which is served well by the companies gives an up market feeling to the consumers.
Some even feel westernized by the whole experience.
The ambience and the rest of the surroundings at a coffee shop also forms a crucial part of the
customer's decision making process to visit or not to visit the same place again.
Office-goers and students go to a cafe to relax and spend hours on coffee and snacks. This explains
the changing lifestyles, growing disposable incomes, increasing urbanization and a high frequency
of get-togethers becoming a part of the lifestyle of countrys youth.
APPROACHES TO STRENGTHEN CCDs POSITION
Reposition CCD Lounges and CCD Squares and differentiate them as places for more mature,
intellectual conversations meant for professionals and elite crowds. To position them as premium
cafs, drop CCD from CCD Lounge and CCD Square to just The Lounge or The Square to
differentiate them from the usual CCDs. Other name suggestions can be Mugs Cafe and Brown
Chocs.

Offer more variety in the menu, especially with food items like Eggs Benedict, salads, Paninis etc.
to add to the sophisticated and intellectual image of the caf. Also, food offers higher margins in
profit and improves the bottom line.

The target segment of these cafs should be entertained properly. These are achievers who want
to assert their position by going to better cafes, professionals, and artists who want a more
sophisticated environment for intellectual conversations. Also, enhance the ambience by choice
of music, or with professional guitar players to add to the elite and sophisticated touch.

Maintain the customer experience across all chains of CCD as other coffee brands take great care
for consistency. One idea can be to get My Caf Coffee Day Moment framed photos with friends
at CCD. Also, CCD can combine coffee with youth and music to reach out to colleges and
emphasize the friendship theme as the ambience touch point.

From coupons to Loyalty cards for increasing consumption and footfalls, give more points and
more discounts as the customer swipes his card more. Also, leverage social media, which is a hit
among youngsters coming to CCD. Social media apps can help form a community of coffee lovers.