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CONTENTS
Chapter -1
Introduction
Objectives of the study
Scope of the study
Methodology
Limitations
Chapter 2
Industry Profile
Chapter 3
Company Profile
Chapter 4
Comparative Study
Chapter 5
Data Analysis and Interpretation
Chapter 6
Findings, Suggestions and Conclusion
Annexure
Questionnaire
Bibliography
ATNCC, Shimoga 1
Chapter -1
INTRODUCTION
Introduction
Objectives of the study
Scope of the study
Methodology
Limitations
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Introduction
The objective of the study is “To compare and study Barista & Café
and provide suggestions for such improvement”. The aim of this Thesis is
Barista and Café Coffee Day were chosen because of their identical
pattern of functioning and growth. They are the only two major players in
the national coffee café industry, and their customers consider both as
both Barista and Café Coffee Day. The data was collected based on
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information provided by customers visiting Barista and Café Coffee Day
outlets.
has been done so as to find out the areas of excellence and areas of
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OBJECTIVES OF THE STUDY:
Prices
Staff Service
Ambience
The research will help both Barista and Café Coffee Day in many
level. The study will reveal the customer preference towards Taste &
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Performance of staff, Ambience, Availability of products, Value for money
METHODOLOGY
the relevant primary data. The data was collected based on information
provided by the customers visiting Barista and Café Coffee Day outlets.
analysis has been done so as to find out the areas of excellence and areas
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CUSTOMER SURVEY
Survey Methodology
people. This survey aims to find out how Barista and Café Coffee Day’s
target market, rate their products and services. A copy of the customer
Characteristics of visit:
typical visit to a coffee shop. This includes their choice of coffee shop,
frequency of visits, time & money spent on a single visit, average group
Comparative Rating:
The survey also asked the customers to rate the following parameters on a
scale of 1-5 (1being the worst, 5 being the best), for both Barista and Café
Coffee Day:
2. Prices of products.
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3. Order/ Delivery time & Order/ Delivery process.
4. Performance of staff.
5. Ambience.
6. Availability of products.
8. Overall performance.
LIMITATIONS
o The sample size is not very large owing to time constraint. This
o Since the sample is based on cost and time basis the project is
and correctly.
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Chapter 2
Industry Profile
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Industry Profile
The Beginning:
It all began around 1000 A.D. when Arab traders began to cultivate coffee
beans in large plantations. They began to boil the beans creating a drink
they called ‘qahwa’ which translates to ‘that which prevents sleep’. The
drink became widely popular, and the need for coffee beans grew. The
brief timeline for the growth of coffee, cafés and everything related is
given below:
850: First known discovery of coffee berries. Legend of goat herder Kaldi
of Ethiopia, who notices goats are friskier after eating red barriers of a
local shrub. Experiments with the berries himself and begins to feel
happier.
1100s: The first coffee trees are cultivated on the Arabian Peninsula.
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1554: The first establishment in Constantinople soon becomes widely
1654: Coffee enters Europe through the port of Venice. The first Coffee
1652: The first coffee house opens in England. Coffee houses were called
coffee) because a person could visit a café to discuss current affairs and
social issues.
1688: The first Persian coffee house opens. The first coffee house opens
1695: The first sign of the French Revolution had its roots in Parisian
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1700s: The Dutch becomes the first to transport and cultivate coffee
1750: One of Europe’s first coffee houses, Café Greco opens in Rome. By
1885: A process of using natural gas and hot air becomes the most
1908: The invention of the world’s first drip coffeemaker. Melitta Bentz
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1933: Dr. Ernest Illy develops the first automatic espresso machine. There
1945: Achilles Gaggia perfects the espresso machine with a piston that
1980: coffee is now the world’s most popular beverage, which leads to a
boom in retail and hotel cafés. The American retail café Starbucks is born.
1990s: With the growth of the Internet, cyber cafés are born, providing
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The Coffee Café Industry
The Coffee Café industry is currently one of the biggest and fastest
Individual Cafés:
The main bulk of revenue is earned by small, individual cafés, run mostly
millions of such cafés around the world, and they provide customers with
The bulk of these cafés are mainly in Europe, where every little town or
village has local cafés, where people gather together for a conversation
These cafés set themselves apart from retail chain cafés and hotel cafés
cannot be emulated.
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Hotel Cafés:
Ever since the popularization of coffee, hotels all over the world started
opening 24-hour coffee shops where visitors to the hotel could walk in for
customer can walk into any major hotel in the world, and enter the
coffeehouse, and know what to expect. These cafés are not really major
The last, and the most organized sector in the coffee café industry, is the
retail café chain. Off late, these chains have become extremely popular
and are growing at an ever-increasing pace. These retail chains have work
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customers can easily relate to, wherever they go. They provide customers
Starbucks across the world and know exactly what to expect. The main
Hot beverages have always been a part of the tradition of India, especially
South India. Coffee took the first seat in South India when the traditional
Brahmin classes brought down the beverage from the ruling British
around the 1930s. During the early years the drink was confined only to
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though the tradition of serving filter coffee in the ‘davra- tumbler’
continues to this day. In order to spread the drink, coffee houses emerged
at various places in the country, which also served as the opposite places
for lawyers and the educated class to hold discussions ranging from
politics to cinema. It is also believed that many scripts and ideas for films
evolved here. One of the oldest coffee houses in South India is the
Raayars mess, Chennai, which serves first class filter coffee even today.
The mess was established in the 1940s and continues the tradition of
coffee but supplements it with tiffin also. The vintage location of the mess
attracts huge crowds even today early in the mornings, Coffee however
was not the only item on the menu. These places also served food and
The drink also became famous and as a result even five star hotels began
cashing in on it. Several hotels all over the country started opening coffee-
shops that catered to high- end customers. This showed the popularization
of coffee cafés, to all sections of society. The drink has now become
more of a concept than merely a drink itself. The last decade witnesses the
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growth of numerous coffee pubs in the country. A number of coffee café
Now, large retail chains like Barista and Café Coffee Day have opened up
around the country. The concept of a café today is not merely about
selling coffee, but about developing a national brand. Retail cafés now
form a multi- crore industry in the country, and have huge potential for
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Chapter 3
Company Profile
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Company Profile
Corporate Profile
few acres of coffee estates, which yielded rich coffee beans. Soon
as Coffee Day was formed. With a rich coffee growing tradition since
1875 behind it coupled with the opportunity that arose with the
deregulation of the coffee board in the early nineties, Coffee Day began
exporting coffee to the connoisseurs across USA, Europe & Japan. In the
calendar year 2000, Coffee Day exported more than 27000 tonnes of
coffee valued at US$ 60 m to these countries and, for the second time in
its short career of 7 years retained the position as the largest coffee
exporter of India.
Coffee Day has a wide and professional network in the major coffee
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depots. Coffee Day's two curing works at Chikmagalur and Hassan cure
over 70,000 tonnes of coffee per annum, the largest in the country.
requirement of the consumers. The process is carried out under the control
consumers.
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The Café Coffee Day
Logo
Café Coffee Day currently owns and operates 213 cafes in all major cities
in India. It is a part of India's largest coffee conglomerate named Coffee
Day, ISO 9002 certified company. Coffee Day's most unique aspect is that
it grows the coffee it serves.
Key Features
Pioneers of the Café Concept in India with its first Café at Brigade
Road, Bangalore in 1996. This Café was opened as a Cyber Café (first
of its kind) but later, with the burst of cyber cafes it reverted to its core
competency…. Coffee.
Essentially a youth oriented brand with majority of its customers
falling in the 15-29 year age bracket
Each café, depending upon its size attracts between 400 and 800
customers daily.
It is a place where customers come to rejuvenate themselves and be
themselves.
USP of the Brand:
Affordable Price
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CAFÉ COFFEE DAY
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by
opening its first café at Brigade Road in Bangalore. Till about the late
1990’s coffee drinking in India was restricted to the intellectual, the South
Indian traditionalist and the five star coffee shop visitor. As the pure (as
international markets grew, the need for a relaxed and fun “hangout” for
known as Coffee Day, a Rs. 300 crore ISO 9002 certified company.
Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd
largest in Asia, that is owned by a sister concern and from 11,000 small
Recognizing the potential that lay ahead on the horizon, Café Coffee Day
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chain with a distinct brand identity of its own. From a handful of cafés in
six cites in the first 5 years, CCD has become India’s largest and premier
retail chain of cafes with 552 cafes in 90 cities around the country.
With its roots in the golden soil of Chickmaglur, the home of some of the
best Indiann Coffees and with the vision of a true entrepreneur nurturing
it, Coffee Day has its business spanning the entire value chain of coffee
consumption in India.
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Our Mission, Vision and Values
We believe in a world of sustainable farming…
The mission of Coffee Day is to provide authentic, affordable coffee to
our customers. And, our vision is to be present in every space where
coffee can be an integral ingredient. We aim to be one of the top three
players, worldwide, in the coffee retail segment. That’s a dream we live
up to, and make real everyday…
Values and Principles The age-old Indian value system has its imprint on
Coffee Day’s value system too. Coffee Day promotes a healthy working
environment, which encourages and fosters a climate of openness, respect
and innovation, along with Integrity, Leadership, Ownership and Trust.
Integrity: Coffee Day respects honesty within and outside the company.
The Group practices ethical business principles in law and spirit, and
strive to bring the best to the consumer.
Leadership is the essence of Coffee Day’s growth. Through continuous
innovation, research, networking and collaboration, the Group strives to
excel and stay ahead of competition.
Ownership Coffee Day drives the sense of ownership for its employees,
providing opportunities for learning, knowledge enhancement and
continuous growth.
Trust A strong foundation of trust encourages our people to deliver their
best. This trust is also extended to reflect in our endearing relationship
with our loyal and growing clientele.
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In all we do, we strive for Respect, Innovation and Excellence…the fuel
that drives our growth.
All this just so that you can relax with that perfect cup secure in the
knowledge that the coffee in it comes from people who care about the
world.
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ORGNIZATIONAL CHART AND A CAREER GROWTH
HEAD - OPERATIONS
REDGIONAL MANAGER
CITY MANAGER
AREA MANAGER
CAFÉ INCHARGE
TEAM MEMBERS
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Different formats of café……..
Café Coffee Day has been experimenting with café formats for quite
Music Cafés provide customers with the choice of playing their favourite
music tracks on the Digital Audio Jukeboxes installed at the café! There
are around 85 cafes with such jukeboxes. 32 cafes also provide customers
with the visual treat of watching their favorite music videos by means of
Video Jukeboxes.
Book Cafés offer the perfect solution to people who think that the coffee
the traveler en route not only with good coffee and scrumptious snacks
amidst great ambience but also with clean restrooms to get rid of that
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Lounge cafés at Hauz Khas, Delhi and Southern Avenue,
style and luxury of a lounge with the lively ambience and comfort of a
café. With exquisite interiors, exotic menu and thematic music CCD
the latter through its team of hostesses who are poise and style incarnate
Garden cafés at M.G Rd, Bangalore and GKII, New Delhi combine the
Delhi combine the urge to surf, not to mention get connected through the
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CASE STUDY ON BARISTA
Corporate Profile
Barista coffee was establishes in 1999 with the aim of identifying growth
particular segment.
More significantly, they believe they have been quick to spot a latent need
combines intelligent positioning with the right product mix and carefully
brand”.
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As of today, Barista exists in over 22 cities, and operates over 140 outlets
nationally. In the last 2 years, Barista has opened over 100 outlets in the
country and with a new outlet opening nationally every 14 dates, Barista
international brand.
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HISTORY
time was right for the Indian consumer to experience a café that
provided a third space, away from work and home, where the guest
section of Turin for 26,000 Italian Lire, about US$ 20. In the early
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1900's, he invented the concept of the blend - a complex art of
and harmonious flavour in the cup. Before the turn of the century, the
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WORLDWIDE
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AWARDS
recognitions.
The Times Food Guide is a guide for food lovers across the country.
Catering Outlets’
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tribute to exceptional brands. Barista Lavazza has been awarded
Super bands for the second consecutive year. And we’re even more
chuffed about it this time because the new survey also included the
opinion of our consumers, along with the panel of judges. And it’s
them.
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apter 4
Comparative Study
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The first parameter that respondents were asked to rate was the taste and
the quality of the products available at both Barista and Café Coffee Day.
desserts. Finding out how customers feel about the taste and quality of
products offered, could help both these organizations improve their share,
4/5 3.5 / 5
vital that the taste and quality standards of their coffee are up to the mark,
are available, and a detailed list can be found in the product mix of both
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The Coffee at Café Coffee Day seems to have a slight edge over Barista.
This is quite an important fact, considering Café Coffee Day uses its own
A large chunk of Barista’s costs are tied up with importing Coffee Beans
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PARAMETER CAFÉ COFFEE DAY BARISTA
Other Drinks
3.5 / 5 4/5
INFERENCE: Though cafés main product is coffee, other drinks are also
very popular. Cafés need to focus on providing the right kind of drinks in
Ratings for the taste and quality of Other Drinks indicate an advantage for
Barista over Café Coffee Day, with ratings of 4/5 and 3.5/5 respectively.
Café Coffee Day should look at different ideas for improving in this area.
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PARAMETER CAFÉ COFFEE DAY BARISTA
Eatables
3.5 / 5 3.5 / 5
along with what they are drinking. This provides an opportunity for cafés
spite of the fact that Barista uses Taj as their national caterers, while Café
Café Coffee Day got a positive rating with respect to the variety of their
eatables (especially their Indian food), although the quality was often
inconsistent. While, respondents described Barista’s sandwiches as
“tasteless” and “sometimes stale”.
Overall, Barista did not live up to expectations considering they use the
Taj as their national caterers, while Café Coffee Day performed well in
spite of their seeming disadvantage of not having a nationally recognized
caterer.
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PARAMETER CAFÉ COFFEE DAY BARISTA
Desserts
4/5 4.5 / 5
café. The better the taste and the quality of the desserts, the higher the
paramount importance.
The Desserts category shows a lead for Barista over Café Coffee Day and
rating of 4/ 5, and this is one area where they need to really concentrate
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Customer’s perception of prices plays a very important role in a service
Pricing policy affects the cafés revenue directly. The higher the price, the
larger the profit margins, but the lower the price, the higher the market
share. In a retail café chain though, volumes are what count- that’s why
the more competitive the price is, the better for the firm.
The survey asked respondents to rate the prices of both the cafés on a
scale of 1-5, 1 being the cheapest, and 5 being most expensive. This
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PARAMETER CAFÉ COFFEE DAY BARISTA
Coffee
3/5 4/5
Café Coffee Day are within 8% of each other, and in some of the cases,
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Other Drinks
3/5 4/5
identical pattern to the ratings for Coffee. And in this case, all of Barista’s
Respondents may not be aware of this, because they gave Café Coffee
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PARAMETER CAFÉ COFFEE DAY BARISTA
Eatables
3/5 4/5
different, the prices for the common eatables are approximately the same
in both cafés.
Coffee Day’s 3/ 5. Again, if the actual prices are used, there is less than a
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PARAMETER CAFÉ COFFEE DAY BARISTA
Desserts
2.5 / 5 3.5 / 5
were more expensive at Barista, there isn’t a big difference shown in the
averagely affordable.
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The availability of products is essential to ensure customer order
him when and where he desires it. People visit cafés primarily because
they serve coffee and eatables. These are their basic products, without
which the café itself would cease to exist. That’s why it is essential for
cafés to make sure the food and drinks they have on their menu are
For the purpose of this survey, respondents were asked to rate the
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PARAMETER CAFÉ COFFEE DAY BARISTA
The Coffee of
Your Choice
4/5 4.5 / 5
milk- based coffee is always available, the flavored coffees, which are not
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PARAMETER CAFÉ COFFEE DAY BARISTA
The Drinks of
Your Choice
4/5 4/5
INFERENCE: The other drinks available at cafés like cool drinks, cold
coffees and ice teas; depend a lot on various artificial and fruit based
flavors/ syrups. These might not be available to the café due to seasonal
This shows that both Barista and Café Coffee Day make sure that the
various drinks they offer are almost always available to customer, despite
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PARAMETER CAFÉ COFFEE DAY BARISTA
The eatables/snacks
Of Your choice
4/5 4/5
They cannot be stored for very long, and because of that, supply must be
short and frequent, often causing demand supply gaps. Barista performed
above average with a 3.5/ 5 rating, and some respondents complained that
a lot of the eatables were often stale or unavailable. Café Coffee Day on
the other hand, did very well. The eatables they offer are almost always
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PARAMETER CAFÉ COFFEE DAY BARISTA
The Desserts of
Your Choice
4/5 4/5
are usually accompanied by a high profit margin. Both Barista and Café
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Chapter 5
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Data Analysis and Interpretation
Brand Awareness
TABLE – 1
No. of Percentage
Sl. No. Brand Awareness Respondents
1 Café Coffee Day 25 50
2 Barista 25 50
TOTAL 50 100
GRAPH – 1
INFERENCE: The graph shows the respondents brand awareness of the coffee
outlets. They both received an equal importance in the survey. 100% of the
respondents are aware of both the brands.
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TABLE - 2
Sl. No. Age Group No. of Respondents Percentage
1 Below 14 Yrs 2 4
2 15 - 18 Yrs 9 19
3 19 - 25 Yrs 24 48
4 25 & above 15 29
TOTAL 50 100
GRAPH - 2
INFERENCE: It can be observed that 48% of the visitors to coffee day’s are
between the age group of 19 - 25 yrs, 29% are above 25 yrs, and 19% are
between 15 – 18 yrs of age. Whereas just 4% of the visitors are below 14 yrs
who visit the coffee outlets.
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Preference of Coffee Shops
TABLE - 3
No. of
Sl. No. Preference of coffee shops Respondents Percentage
1 Café Coffee Day 26 51
2 Barista 24 49
Total 50 100
GRAPH - 3
INFERENCE: The Graph shows which coffee shop the respondents usually
preferred to visit. They both received almost an equal preference in the survey,
with 49% of the respondents choosing Barista and the remaining 51% choosing
Café Coffee Day, indicating there is no clear winner in terms of actual visits to
the outlets.
This can be analyzed in relation to the comparative rating respondents give both
outlets, to help us identify which areas both the chains are doing well in, where
they need to improve and where the opportunity for growth exists.
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Frequency of Visit
TABLE - 4
GRAPH - 4
INFERENCE: The Graph indicates how often the respondents visited a coffee
shop. Considering the age- group for the sample, it’s quite evident that they
have enough free time to visit cafés regularly. Out of those surveyed, 41% said
they visited a coffee shop 2-3 times a week, and 44% visited a coffee shop 2-3
times a month. This is great opportunity for Barista and Café Coffee Day to
attract regulars with loyalty programs.
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Spending Habits
TABLE - 5
No. of
Sl. No. Spending Habits Respondents Percentage
1 0-25 Rupees 0 0
2 25-75 Rupees 23 47
3 75-125 Rupees 21 42
4 Over 125 Rupees 6 11
TOTAL 50 100
GRAPH - 5
INFERENCE: The Graph illustrates how much money the respondents usually
spend at coffee shops. While the majority of respondents spent between Rs.25
& Rs.75, a high percentage also spent between Rs. 75 & Rs. 125. A low
percentage of groups spent over Rs.125.
Time They Spend in a Single Visit
TABLE – 6
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Sl. No. Length of visit No. of Respondents Percentage
1 Less than ½ hour 0 0
2 ½ - 1 hour 19 37
3 1 – 2 hours 24 48
4 Over 2 hours 7 15
TOTAL 50 100
GRAPH – 6
INFERENCE: The survey also asked the respondents how much time they
would usually spend on a single visit to a coffee shop. The Graph shows that
48% of them would spend between 1 hour and 2 hours, 37% would spend
between ½ hour to 1 hour, and 15% would spend over 2 hours.
TABLE - 7
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1 Alone 0 0
2 With 1 person 11 22
3 2 - 4 people 26 52
4 More than 4 people 13 26
TOTAL 50 100
GRAPH – 7
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Single Most Factor to Choose a Coffee Shop
TABLE - 8
INFERENCE: When asked about the most important factor that contributed to
their choice of coffee shop, 38% of respondents said it’s a place to spend time,
and 28% respondents selected taste of coffee/ food, and 22% the
ambience/experience. Only 12% of them choose value for money as their most
important factor. This would indicate a clear shift of consumer focus from price
factors to service factors.
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Most Effective Media to Reach the Audience
TABLE – 9
GRAPH – 9
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Chapter 6
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FINDINGS, SUGGESTIONS AND CONCLUSION
Café Coffee Day got a high rating in the market survey, for the Taste &
potential for them to attract customers, just based on the taste and quality
of products. This is also helped by the fact that they grow their own coffee
beans, and this provides an important base for future expansion and
growth.
worked extremely well so far, and Café Coffee Day got a high rating, both
for their prices and for their value for money, in the market survey.
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Strong youth orientation:
The Café Coffee Day brand is, and always has been, extremely youth-
oriented. In a country where over 40% of the population is under the age
of 20, there is huge potential for Café Coffee Day to become one of the
country’s largest youth brands. The untapped market share and potential
BARISTA
Barista has a strong and clear brand image. Their customers can easily
identify and relate to the Barista brand. This helps increase and maintain
brand loyalty.
Barista cafés have. Respondents to the survey, including those who chose
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Café Coffee Day as their choice of café, gave Barista a near perfect rating
Barista have worked hard on heir brand image and human resources, and
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SUGGESTIONS
Both Barista and Café Coffee Day have under performed or not lived up
improved upon, as that both can eliminate any disadvantage that may
follows:
The Café Coffee Day brand, although clearly a youth- oriented brand,
lacks the power and strength expected to maintain brand loyalty. The
brand doesn’t project a clear image to customers about what Café Coffee
Day is all about. This could prove as a deterrent during future national and
international expansion.
According to the market survey, Café Coffee Day’s staff received only an
average rating for their behavior and service. Café Coffee Day needs to
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work hard at this aspect, especially considering they are a service sector
The Ambience & Décor of Café Coffee Day outlets received a below-
respondents did not like the fact that Café Coffee Day outlets and
They felt as if the café’s had been hijacked just for advertising.
Barista
According to the market survey, other than their Dessert, Barista got only
an average rating for the taste & quality of their products. Considering
their strong brand image of being the coffee lover’s traditional café, they
Customer perceptions of Barista’s prices and value for money are quite
negative. Even though the prices of Barista and Café Coffee Day are
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3. Inconvenient delivery process:
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CONCLUSION
1) Café Coffee Day has done extremely well so far to project itself as an
affordable youth oriented brand. But there are still certain areas where
2) With regard to the physical evidence associated with the brand, Café
Barista. Café Coffee Day should clean up the décor at every outlet,
3) Café Coffee Day would do better to provide promotional space for its
4) Café Coffee Day looks at its current recruitment, selection and most
importantly, its current training policies. Customers are not happy with the
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behavior and service of the staff, and Café Coffee Day is lagging far
Barista
1) Barista has an extremely strong brand image, but they need to work
Barista and Café Coffee Day have almost identical pricing, but Barista is
Barista should carry out a promotion campaign to ensure that their target
market is well aware of their current low prices. This would help change
is that customers have very high expectations of the taste & quality of
products. Barista needs to work hard at this aspect, especially for coffee
3) Barista need to look at its coffee beans suppliers and coffee brewing
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This is especially important considering the international expansion
Barista is undertaking. Barista should also look at the Taj, their national
suppliers for eatables and desserts, and either improve the taste & quality
the coffee to the table. This may seem insignificant, but it can go a long
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QUESTIONNAIRE
Dear Sir/Madam,
be grateful if you can give your views to the following questions to make
1. Name: ________________________________
2. Profession: ________________________________
3. Age (yrs):
(10 - 14) (15 – 18)
(19 – 25) (25 & above)
4. Sex:
Male Female
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5. House Hold income level:
(12000 – 15000) pm (15001 – 25000) pm
(25001 – above) pm
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11.How many people do you usually go with?
Alone With 1 person
2-4 people More than 4 people
12.What is the single most important factor for you to choose a Coffee
Shop?
Taste of coffee/food People/ Service
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14.Please rate the following, according to your personal choice, for both
Barista and Café Coffee Day:
Coffee 1 2 3 4 5 1 2 3 4 5
Other Drinks 1 2 3 4 5 1 2 3 4 5
Eatables 1 2 3 4 5 1 2 3 4 5
Desserts 1 2 3 4 5 1 2 3 4 5
Your comments:
Coffee 1 2 3 4 5 1 2 3 4 5
Other Drinks 1 2 3 4 5 1 2 3 4 5
Eatables 1 2 3 4 5 1 2 3 4 5
Desserts 1 2 3 4 5 1 2 3 4 5
Your Comments:
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3) Availability: (How often are the following products available)
Your Comments:
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BIBLIOGRAPHY
Books
Name Author
Research Methodology Kothari C.R.
Marketing Management Kotler Philip
Websites
www.google.com
www.answer.com
www.barista.co.in
www.coffeeboard.org
www.cafecofeeday.com
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