Cafe Coffee Day STP Group 2 PGPPM

 

 

Café Coffee Day Outlet : Segmentation, Target & Positioning (Part 1) 

Group 2 Marketing for Public Services 

Café Coffee Day •

JP Nagar, Saraikki, Bangalore 

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AMITOSH GAUTAM RAHUL JAIPURIYAR PRAVEEN KATARAKI MOHD YASIR KHAN

1913006   1913007   1913009   1913010  

 

  Marketing Plan : Café Coffee Day 1.  Executive Summary

1.1. History of Café Coffee Day

Cafe Coffee Day  is a Coffee Chain which has its business based in Chikkamagaluru District, Karnataka, India. The Company has over 20000 Acres of its own estates and is one of major producer of Arabica beans in Asia with chief exports to Middle East, Europe and Japan. Founded in 1996 with its first outlet in Bengaluru, Karnataka, the company has rapidly expanded across various states/cities states/cities in India adding more stores with more than 1000 cafés open across the nation by 2011. Currently, it has the largest footprint in India in the Coffee Chain in 245 Cities. The Gross Revenue was Rs. 4331 Cr. In 2017-18 registering a growth of 21.93 % over last ye year. ar. With a quirky and refreshing tagline that says 'A lot can happen over coffee', Café Coffee Day touched the hearts of the Indian youth, assuring them that all they need is a cup of coffee and a peppy place to talk it all out! It is the largest coffee chain in India with 1722 Outlets, O utlets, 47,747 Coffee Vending Machines, 532 Express Kiosks. The entire Coffee Consumption Basket includes the following Divisions: Café Coffee Day Outlets  Coffee Day Beverages The Square Coffee Day Exports   Café Coffee Day Value Express  International Cafes   Coffee Day Fresh and Ground The Mission Statement is:“ To be the best Café Chain by offering a World Class Coffee Experience at affordable prices”  

 

 

 

 

 

 

The Outlet at JP Nagar, Saraikki Saraikki Bangalore opened in Jul 2015 and is one of the main outlets serving JP Nagar. This Marketing Marketing Plan has has been envisaged to analyze the performance of the outlet, outlet, expand and enhance its services and sales.

1.2 Marketing Mix Café Coffee Day Outlet at JP Nagar, Saraiki offers a variety of Coffee Drinks, Non-Coffee Drinks, Snacks, Desserts and Accompaniments. The outlet has a good range of products with variety which attracts coffee lovers. The outlet having competition from its rival Starbucks Outlet just 500m away has embarked an image in the minds of the consumer as an outlet offering a good range of Products, Price, Place and Promotion Promotion best suited to the taste and preferences of Indians.

a.  Products:  The Outlet’s Product Mix offers a wide range of beverages (coffee, tea, shakes, nutritional drinks etc;), food items (burgers, pizzas, rolls, wraps, snacks, munchies, cookies etc;), desserts (cakes, pastries) that appeal primarily to Young crowd. Most o off the eatables have been adopted to meet the Indian taste which the outlet has combined combined with classic coffee to make a sumptuous meal/snack.

 

b.  Price: The Price of the products (including services) are fairly priced for the upper and upper middle young individuals/families/corporates where the chain has largely benchmarked itself. This outlet is a retail outlet and is premium priced providing a competitive price. The Outlet has a Value based Pricing for by offering the items in different quantities like small, medium and large. Also by adding extra ingredients like chocolate sauce or extra cream CCD prices beverages at premium range. So the pricing strategies are not rigid and through its flexible and varied prices it caters to the customers in different segments like students and corporate employees.

c.  Place:  The Lounge is for niche/ corporate and young professional segments. This premium outlet is aimed at the coffee connoisseurs who love to pay premium for a great cup of coffee. It also has wide menu of food items of different cuisines. This outlet also has Wi-Fi, High Tables, Comfort Sofas attracting corporates. This outlet also has vivid décor with indoor and outdoor sofa/wooden chair seating for the young crowd. The Place has glass walls for an inviting ambience with soft illumination and extremely vivid menu style.

d.  Promotion: Café Coffee Day does promotions in wide variety of ways both ATL and BTL. This outlet has special feature of digital display and glows. It also does sales promotions like happy hours, combo deals and coupons.

e.  People: The Outlet has staff well conversant with the products and endure uniforms specially designed for them. Staff is courteous while taking Orders, Serving or Taking the bill and also customize customize orders as per needs/demands. There is no system of greeting the customer when they enter and leave the premises. They are trained to improve people skills and communication skills. Most of the employees speak English language along with the regional language of that region the operate.

 

f.

Process: The outlet has replicated the traditional processes of Café Coffee Day in place as it is a leading service brand. And done in an orderly fashion. The outlet has no process of order taking at the table so as to enhance customer satisfaction. There is no valet parking service. Process needs to be revisited and separately designed and integrated for great user experience. Mostly the outlet operates as a self-service counter.

g.  Physical Evidence: The Outlet creates a very appealing and beautiful ambience at its restaurants and uses different combinations of décor, colour and lighting at different places. The stores uses violet and red in its interiors with wooden panels and exclusive papering. Its logo has been prominently displayed at several places. It conveys its positioning as a place to sit and have a conversation with loved ones. It also sells mugs and cups with its name written on it and also have its merchandise.

 

 

2.  Market Segmentation 2.1. Market Situation Coffee Chain in India is growing g rowing at a face past rate r ate and specially in South India where the distribution is large compared to the other regions r egions of India.

Café Coffee Day is the largest coffee retail chain in the nation with as many as 08 outlets in JP Nagar, Bangalore Area.

 

 

2.2. Segmentation 2.2.1.  Geographic & Demographics  is located in JP Nagar Mainofstream area whose Population is 28508 The CCD outletFemale (Male : 14747, : 13761) in an area 1.79 sq.km. The location is one of the prime segment creators as it is on the main road (Near Dollars Colony) and provides good connectivity. The outlet competes with top quality café c afé outlets such as Starbucks in its vicinity apart from 07 other Café Coffee Day Outlets in the vicinity. Some 07 other restaurants are also serving coffee along with snack items and are also in the vicinity posing a tough competition to this outlet. This CCD Outlet has segmented coffee and other than coffee lovers in age group of 20-50. The consumers are male and

female with the age profile dominating in 20-50. Largely the segment consumers are corporates and salaried belonging to the Upper and Upper Middle Class. The consumer density profile is urban who like to visit the outlet with an average group size of 3-4. Young Couples and Working Professionals  also are a regular consumer of the outlet. This region has a cool climate very suited to the needs of coffee and with large no. of o f office conglomerates in the vicinity, the outlet is apt for suiting to the needs of the area.

2.2.2. 

Social and Education

The Outlet has Upper and Upper Middle Class segmented consumers who can afford affo rd the beverages and food and the average spent Per Person, Per Visit is Rs. 200-300 . The Working Salaried Class, College Students, Corporates are the major segments. The Outlet has a large proposition of its consumers from Graduate and above  background having rich value proposition

 

for get-together and business over Coffee. The Outlet is has also segmented a place for Smokers and Modern outlook consumers- Millennials with outdoor seating area. The Outlet is well segmented for all religious groups with attractive décor and comfort seating.

2.2.3.  Psychographic The Outlet believes in segmenting Outdoor Oriented Lifestyle segments  enjoying get-togethers and work over gatherings. Coffee augments their lifestyle with comfort ambience for work and discussions. The segment has includes liberal lifestyle consumers as it has smoking areas as well. The VALS framework applies to the outlet with mostly “Thinkers” (Reading Corner), “Achievers” and “Experiencers”  as the segmented consumers who have work and discussions over coffee and also those who have fun and enjoyment and enjoy cultivating warm relationships over coffee. Casual solitary/ private drinkers  are also a small segment as the outlet caters to the same through its high table seating.

2.2.4.  Behavioral and Usage The outlet has people who savor Coffee as benefit for their get together to gether times and business hours. Various benefits are associated with the class/segments who are patronizing the outlet        

Sense of Freedom Uplift your community Socialize Uplift your Creativity

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Share great coffee and passion Celebrate personal success and achievement Build a lasting Business

Other than above, certain specific benefits like Wi-Fi and Mobile Charging facility fac ility are functional usage benefits. Mode of Payments such as Paytm and other e-wallets provide a flexibility to the young/technology oriented consumers.

 

3.  Market Targeting After Identifying the Segments, an important aspect of marketing is to decide how and which ones to be targeted. This is basically identifying/aggregating a smaller and more defined target groups.

TARGET

Coffee lovers of age group above 50 who are Young at Heart

Target : Youth, specifically in the age range of 16 to 39 who are students, Entrepreneurs and working professionals

Coffee lovers of age group between 40 to 50 preferably Working professionals .

There are about 07 CCD outlets in JP Nagar, Bangalore and within 500 metre distance there is one Star Bucks Coffee Outlet. Having Star Bucks nearby which is a main competitor for CCD this outlet has to be more strategic in attracting attrac ting the target group. JP Nagar is one of the the most happening happening place in Bangalore bordered by by Jayanagara, Banashankari, Banneraghatta road and BTM Layout. It has transformed itself into an upmarket residential and commercial locality. From hotels, super speciality hospitals, commercial offices, art galleries, to cultural hubs and shopping, the area is padded with a lot of things. This CCD outlet like other CCD’s mainly targets youth in the middle and higher income groups like Students, working proffessionals and entrepreneurs. This outlet has provided a smoking space, Library, mobile and laptop charging point which clearly indicates that the target group is Youths, that is between the age group of 15 to 39.  

 

 

4.0 Market Positioning

Contemporary  

Caring

Thoughtful

No specific wait time, people can read

Exclusive lounges / smoking room

24x7 CCD Value Express Responsible, involved with local ethics

Glass walls, customer can see through the

Relaxing, rewarding moments Totally integrated system

availability availabilit y of space / festive decorations, etc

Rich sensory consumption

Fairly priced

CCD Brand Mantra Rich and rewarding Coffee experience

 

Friendly & convenient service

Healthy snacks/  juice options

novels, charging ports for laptops/mobiles

Fresh, highquality coffee Varied, exotic coffee drinks

Official RO Purified merchandise Water counter

experience

Young Vibrant and Eye-catchy colors

Attractive Logo

 

 

Marketing Memo

Coffee Lovers Takeaway  

Consumer Needs  Needs 

Café Coffee Day gives the richest possible sensory and ambience experience for

Desire for better coffee, better consumption experience and a wholesome satisfying snacking.

drinking coffee.

Consumer Insights  Insights 

Competitive Product Set  

Coffee and the drinking experience is

Local cuisine cafes, fast food chains and

often unsatisfying.

convenience shops

4.1 Positioning based on competitors CCD positions itself to fill the price gap between a local store and a five star hotel. The store’s price range is such that its products could be afforded by young people who just want to hangout from the nearby areas.

4.2 Positioning based on use situation EXPRESS Outlet positions CCD as an efficient coffee outlet catering ca tering to people on the go and are in a hurry. It I t serves piping hot coffee that lets you perk up, when you need a zing to life. Its brand positioning is such that it caters to efficient and energetic customers.

 

 

Determining Competitor Positioning: Starbucks, Barista Lavazza  

Market Capture with respect to competitors: Starbucks, Barista Lavazza, Local Cafes 

 

5.0 SWOT Analysis

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  Excellent Brand Communication 

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  Well Connected Location    Vibrant Décor & Comfort Seating – Youth Oriented Brand 

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  Extra Usage and Functional Areas for all Segment target

  Untrained/Weak

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Communication Staff  

  Missing Coffee Aroma in

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Ambience

  High Service Preparation Time   Less Sophistication    Losing charm due to nearby

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Starbucks

groups  

Medium Priced - Affordable     Creative Vivid Menu Card 

 

  Become a leader in the area for

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“Informal Gathering Point”

 

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  Direct and Indirect

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Competition from Starbucks One Stop Solution WiFi and Mobile Charging added

benefits 

and Local Restaurants 

  Loss of Customers due to

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  New Segment Target : Budget

health reasons 

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Menu for Students and Older

People and Young at heart.

  Health Conscious Segment –

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Snacks and Juices

  Cannibalising Brand due to

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proximity