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Case Study on Cafe Coffee Day - Brand Strategy in India (PDF), Organized Retailing Case Studies
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Case Information:
Published: August 2008 Price: 5USD Case Code: CS012 Theme: CCD's Brand Management Strategy Organization: Cafe Coffee Day Pages: 9 Industry: Coffee Retailing Format: PDF File
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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, Affordability and Acceptability.- Bidisha Nagaraj, the Marketing president of Cafe Coffee Day Although demographically, a typical consumer would be male or female between 1529 years of age, belonging to middle or upper middle class, we call our consumers young 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 brands that are aspirational in nature. Sudipta Sen Gupta, Marketing head, Caf Coffee Day.
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Case Study on Cafe Coffee Day - Brand Strategy in India (PDF), Organized Retailing Case Studies
Green (around 75 cafs) and Mocha (around 25 cafs). The Indian organized sector has potential for around 5,000 cafs but fewer than 1,000 cafs exist currently.
Rotable Gazumping
Exhibit 1: Total number of stores/cafes of Caf Coffee Day and its competitors
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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 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). Highway Cafes: In 2004, CCD began cafes on highways. By 2009, the total number of Caf Coffee Day highway cafes rose to 30 owing to the overwhelming response it received from travellers. 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. Coffee consumption in India is growing at 6% per annum compared to the global 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 in the 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 170,000 coffee 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 Republic-based caf chain 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 AsiaPacific region. Cafe Market in India Coffee retailers cover only 170 cities out of 3,000 in India (early 2011 reports). In 2008, according to Technopak Advisors, the Indian food servcies market cafes, full-service restaurants, fast-food outlets/quickservice restaurants was estimated to be $6 billion (Rs 26,000 crore) with organized players taking 13% of the market. (By 2014 this number is expected to increase up to 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 is about Rs 600 crores. This is approximately 20% of the total domestic coffee consumption (Rs 3,000 crores). 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
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Case Study on Cafe Coffee Day - Brand Strategy in India (PDF), Organized Retailing Case Studies
World Caf to popularize its in-house coffee brand Bru (HULs only coffee brand sold only in India). CCD to double its human resources count: CCD has 6,500 employees (as per Feb 2011 figures) with each cafe requiring about 6 employees. CCD plans to double its employee count by 2013. Lavazza Espression store in India: In 2011, Lavazza, the Italian coffee brand opened its first signature coffee shop Lavazza Espression in New Delhi, India. CoffeeDay Wakecup: In January 2012, CCD launched its own brand of coffee maker called CoffeeDay Wakecup targeting all coffee lovers. The product will be marketed at its 1125 cafes and 900 Express outlets. Competitor Lavazza had launched its own portable coffee machines (Lavazza Blue 850) already but targeted the premium segment with the price being higher than CCDs machines. In February 2012, Caf Coffee Day announced plans to install interactive touchscreen tablets in 500 cafes across the country.
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