Brand Management

Report on

Submitted to:

Prof.(Dr.) PK Mohanty

Submitted by:

Tanumoy Mishra
(18A3HP602)
Introduction
Café Coffee Day, popularly known as CCD is an Indian Café chain, a part of Coffee Day Global
Limited, went on to become India’s favorite hangout for coffee and conversations. Since its
inception in 1996 in Brigade Road, Bangalore, CCD has strived hard to provide the best experience
to their guests and went on to become the third spot after home and office where people could
spend time.
CCD went on to become the largest organized café chain in India with over 1500 stores in India
and abroad by serving more than 1.8 billion cups of coffee in six countries annually. Most of its
coffee beans are grown in its own estates in Chikkamangluru. The company is vertically integrated
to reduce overheads and it provides more control on its operations. Moreover, CCD alos oversees
its own coffee machines and furniture of its outlets.

Customer Experience
Customer 1: I had my first date in CCD with my future wife. With relatives and family friends
all around the city, CCD was the best place to spark some romance between us. 5 years later I
got married. When I look back now, it was CCD where it all started.
Customer 2: 4 of my friends and I from college chalked out a start-up idea on a napkin which
got funded eventually. In fact our first meeting with the angel investor too happened in a CCD
outlet. Thanks to CCD, we would spend hours making our business plan. We are truly in debt to
CCD for proving not just good food and coffee but also Wi-Fi which fueled our dreams.

Q. 1
• Attempt to identify its sources of brand equity (brand building blocks and their sub-
dimension-CBBE).
• Asses the its level of brand awareness and its image among customers (Strength,
Favorability & Uniqueness).
• Find out the reasons for its resonance.
• Do you think every brand can achieve resonance with its customers?

CBBE model
Salience: CCD had positioned itself in a way that had made its customers recall and recognize
ther brand. Its strong presence and accessibility with bright coloured logo made it easy to identify.
As shown below 58 of 61 people who responded to my survey had heard of CCD and whopping
82% of people were aware of the tagline of CCD.
Performance: Due to its unique Indianized product offerings, CCD rated high in performance
in terms of Ambiance, Service, Offerings and Accessibility. I have used a likert scale to determine
the performance of CCD.
Imagery: As per the survey, 47.5% of people who look for leisure visit CCD followed by
quality and value for money respectively. This goes to show that CCD was successful in
positioning itself an affordable luxury.
Judgement: 42% of CCD goers associated CCD with quality followed by credibility and
consideration as shown below from the survey.

Feelings: 35 out of 61 people had rated CCD as a spot of social gathering. With warmth and
romantic being second and third respectively.
Resonance: As seen below, CCD could not attain resonance as around 80% of people would go
to some other coffee shop if CCD wasn’t nearby. However, 30 out of 61 people said that they
would recommend CCD to their friends.
No. According to be all brands cannot attain resonance as it may face decline before it reaches
that phase.
2. How the company (CCD) designed the marketing programs and efficiently utilized the
program multipliers to create the best brand value (Brand value Chain).
Before we understand how CCD created its brand value chain, let’s understand what is meant by
it. It is a structured approach on how to access the different sources and outcomes of a particular
brand equity and the methods and mannerism by which a particular brand creates brand value by
means of various marketing activities.
CCD had efficiently used its marketing programs to build its brand value. Firstly, the product
offering was quite unique with localization of taste as per Indian standards. Secondly, the slogan
of CCD, “A lot can happen over coffee” became an instant hit as it resonated with college going
youngsters who sought privacy from preying eyes. Thirdly, CCD trained their employees to be
friends with the customers and encouraged them to start a conversation with them. And finally,
the fact that customers could sit in CCD for hours and use their free Wi-Fi also proliferated
customer satisfaction.
Program multipliers used by CCD:
 Distinctiveness: CCD’s marketing programs were quite distinct in the early days as user could
use free internet if they purchased a cup of coffee. As time progressed, the loyalty program of
accumulating “beans” to redeem them later also went quite popular.
 Relevance: Since the customers could sit in any CCD outlet for hours with no one disturbing
them, it was quite relevant to youngsters seeking solace from family and relatives.
 Integrated: the marketing programs were well integrated as CCD tapped into the market with
changing trend, They were the first to introduce the free internet feature which was quite rare
those days. They introduced the loyalty program called Café Citizen Program which was later
discontinued. Later they brought in the CCD app which was the replacement of the citizen
program. This was introduced when the market saw a huge increase in smart phone and mobile
internet users. Also, they replaced the PCs with free Wi-Fi.
 Value: These marketing programs created value for the customers as they were mainly
youngsters and the prices were quite low as compared to its competitors. The loyalty programs
also created value for the customers especially those who are on tight budget as they could get
discount.
 Excellence: These marketing campaigns were designed to satisfy the highest standards. It also
reflected state of the art thinking and corporate wisdom. Hence were highly relevant and
unique.
3. How your preferred brand has done a great job with relationship marketing, permission
marketing, experiential marketing, or one-one marketing, brief your experience.

Relationship Marketing: Relationship Marketing is a subset of Customer Relationship

Management that mainly emphasizes on long term goals like customer loyalty, customer retention
and satisfaction rather than short term goals like customer acquisition and sales transactions.
CCD had introduced a loyalty program where a customer was automatically made member of Café
Citizens Programme by purchasing a minimum of Rs 100 on a single bill. This scheme was
applicable for one year where customers could avail a discount of 10% of food and beverages.
Also, CCD launched its mobile app in 2016 where customers could accumulate “beans” on every
purchase and redeem them subsequently. Thus, ensuring customer retention and loyalty.
Permission Marketing: When a customer explicitly agrees to receive marketing information
about any product or service offering of any company, it is known as permission marketing. The
most frequently used methods are opt-in email and text messages about any offering.
CCD utilized its mobile app to sign in user and made users agree to its terms and conditions while
signing up thus taking permission from the users for permission marketing.
One on One Marketing: In this marketing method, companies leverages its data analytics and
digital technology to deliver personalized offers and product offerings to current and prospective
customers.
After the launch of the app, CCD was able to target it’s customers through mobile phone and email
to announce any special offers and discounts that improved the bounce rate substantially.
Experiential Marketing: Also known as engagement marketing, is a marketing technique where
customers are directly immersed by engaging them in many ways as possible. This kind of
marketing centers around getting the consumer's experience with the brand and encourage them to
participate in brand experience and make it memorable for the customers.
CCD had carried out Latte Art Festival’ – where customers were served coffee topped with creative
latte art designs, special offers on Women’s Day. Also, CCD served coffee for Rs. 22 when their
first outlet in Brigade Road Bangalore turned 22.

4. For each of the four Ps, identify how your preferred brand has carried out different
marketing programs to retain its position in the market.
India’s leading coffee chain CCD has several products which appeal to the Indian growing middle
class it has a price which is very much affordable by all. The promotions are appealing and ease
of access for its numerous outlets which are still growing in number all across India. Let us have
a look.
Product: Café Coffee Day’s biggest challenge was to induce the idea of having expensive coffee
in predominantly tea drinking nation. Over the years CCD has successfully been able to position
itself as a go to place for youngsters and professionals alike. CCD’s unique product mix constitutes
offerings well-adjusted to Indian taste buds. Be it food or coffee, their products appeal primarily
to Indian coffee and snack lovers.

Most of the menu is highly Indianized; Samosa, Biryani, chicken Tikka Sandwich, Paneer Tikka
Sandwich are to name a few. Among beverages, Classic Capuccino, Frappe, Chocolate shake are
quite popular among the CCD goers. They also have a specialized summer menu mocktails like
watermelon, grapes, etc.
CCD also has coffee mugs, domestic coffee machines, coffee packets and funky stuff like t-shirts,
caps, badges, etc.
Price: Over the years, CCD has ensured that its cafes were reasonably priced and has successfully
maintained the big price gap between them and their competitors. This is the main reason why
CCD has been able to position itself as a comfortable luxury among the youth and has satisfied all
its customers. A typical CCD coffee ranges from Rs.45 to Rs.80. CCD has maintained its price
since its inception keeping in mind its target customers with only government regulations
contributing to its major price change.
Place:CCD started off from Brigade Road in Bangalore, a highly populated urbanized area. As
the traction increased, CCD targeted other urban area with large young populations. From Malls
to Educational Organizations, from gas stations to cinema halls, CCD opened outlets in multiple
cities simultaneously.

As the popularity of CCD grew, CCD adapted a strategy to open a outlet in every possible
location from where some business could be generated. Thus, CCD became highly accessible for
all especially in tier I cities.
Promotion: Historically, CCD mainly focused on targeted promotional activities rather than mass
media advertisement. Example: Café outlets would sell tickets for Rock/DJ concerts and create
contests in popular Television shows and brands that resonated with the youth. The winners were
given paid trips and merchandize. Further, CCD allowed popular Indian movies and serials to be
shot in their outlets.In the mid 2000’s they also tied up with Channel V’s Get Gorgeous contest.
They have tied up with Channel [V]’s Get Gorgeous contest. Along with that CCD was be seen in
movies like Khakhee (2005) and Mai Hoon Na (2003).
Also, CCD management ensured that the Café staff were “Friends” to its customers and start a
personal small talk rather than concentrating in their mundane routine jobs.In sales promotion,
CCD started off with special ‘Café Citizen Card’ for rewarding Café Coffee Day’s customers.
Later they scraped it with the introduction of CCD mobile app where users could accumulate beans
to redeem them in any CCD outlet.

5. Design marketing programs such as different marketing campaign activities for the
rural and urban areas for your respective preferred brand.
Rural Areas: Marketing programs are not applicable to CCD as the product offerings are not
meant for people with limited disposable income. Moreover, CCD is mainly focused on tier I and
some tier II cities and not beyond that.
Urban Areas:
 Developing new products: CCD could work with the R&D team to develop new products
to cater to the youth’s changing taste. Moreover, they could localize the products as per the
local taste buds. Example: Fish sandwich in Bengal and Dhokla in Gujrat.
 Celebrity endorsements: Young celebrities who resonate with the youth could be used to
attract the youth towards CCD. Crickets Hardik Pandya, Badminton player Sanya Nehwal
or athlete Dutee Chand if endorsed could appeal to the youth as a cool place to hang out.
 Events and Sponsorship: TV shows like MTV Roadies and Splitsvilla have a huge youth
fan following. CCd could leverage this as well. Moreover cricket is a religion in India and
if they could sponsor, it could be beneficial for CCD.

6. Let’s us consider your preferred brand what you have submitted earlier as a part of
assignment and plan for a survey tracking for the same preferred brand. (Branding Brief
8-1, page no. 287)
a. What might you do differently?
Since this survey is taken inside IMT Hyderabad, the age group and socio-economic status of
most people are quite similar. This survey could be taken outside the campus in a mall or near a
CCD outlet where I could interact with real customers visiting CCD.
b. What questions would you change or drop?
I could have dropped the last question which says:
 How would you feel if all CCD outlets shut down?
 c. What questions might you add?
The questions I might add are:
 Who do you think will survive to be the best coffee chain in India in the next 10
years?
 What new product offering do you think should CCD introduce to be the market
leader?

REFERENCES:
https://en.wikipedia.org/wiki/Caf%C3%A9_Coffee_Day
https://www.cafecoffeeday.com/about-us
https://www.scribd.com/presentation/105016068/Brand-Management-Cafe-Coffee-Day

http://www.simplynotes.in/mbabba/brand-resonance-pyramidstages-of-brand-development/