NAME STD.

Roll No SUBJECT TOPIC

: Rahul Dedhia : TYBCOM : 513 : M.H.R.M. : CAF COFFEE DAY V/S BARISTA DIV :E

YEAR : 2011-12

COLLEGE : M.K.SANGHVI COLLEGE OF COMMERCE AND ECONOMICS

ACKNOWLEDGEMENT I owe a great many thanks to a great many people who helped and supported me during the writing of this book. My deepest thanks to Lecturer, RESHMI ACHYUTHAN the Guide of the project for guiding and correcting various documents of mine with attention and care. She has taken pain to go through the project and make necessary correction as and when needed. I would also thank my Institution and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.

INDEX

Sr. No. 1

PARTICULARS CAF COFFEE DAY

1.1 1.2 1.3 2 2.1 2.2 2.3 3 4 5

INTRODUCTION CORPORATE IMAGE MARKETING MIX BARISTA INTRODUCTION CORPORATE IMAGE MARKETING MIX MARKET SURVEY CONCLUSION BIBLIOGRAPHY

CAF COFFEE DAY

INTRODUCTION Caf Coffee Day is a venture of the AMALGAMETED BEAN COMPANY. It is a large organized retail cafe chain with its distinct brand identity of its own, offers a world class coffee experience to its customers at affordable prices. It has positioned itself as a place for hangout especially for the youngsters and for the informal meetings. With increasing demand of liquid coffee among public, since 1990s there has been a drastic increase in the number of coffee parlours, with Cafe coffee day opening its 100th outlet in Delhi. Coffee parlours have witnessed an increase in their customer base as in now, consumption of coffee being not restricted to the elite class only. The increase in the disposable income and the lifestyle are the two major factors contributing towards the visit of all people of all ages and classes visit coffee parlours, thus helping in the market penetration and expansion of outlets for CCD. Strategic alliances of Cafe Coffee day with brands like Garfield, Levis, Elle 18, etc that are youth centered helped CCD in increasing its sales at less cost and creating a youth oriented brand image. It is also giving the gift and the discount vouchers to the customers who are frequent visitors. CCD, with its first outlet in Bangalore basically had an urban market. People of all age groups visit it, but their main target is the youth. CCD has positioned itself as a place for having coffee and fun together at the same time.

CORPORATE IMAGE It was in the history of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans. It was then taken over by Bean Coffee Trading Company Limited, popularly known 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 growing areas of the country comprising over 48 agents and 50 collecting 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. Key Features y Pioneers of the Caf Concept in India with the its first Caf at Brigade Road, Bangalore in 1996. This Caf was opened as a Cyber Caf (first of its kind) but later, with the burst of cyber cafes it reverted to its core competency. Coffee. y Essentially a youth oriented brand with majority of its customers falling in the 15-29 year age bracket y Each caf, depending upon its size attracts between 400 and 800 customers daily.

y USP of the Brand:  Affordable Price  Coffee Winner of Platinum, Gold, Silver and Bronze medals at the India Barista Championship 2002

MARKETING MIX Product Mix Coffees & Teas Hot Coffee Espresso Espresso Americano Macchiato Cappuchino Caf Latte Chococinno Caf Mocha Irish Coffee Refreshing Alternatives Granitas Blood Orange Cool Blue Pineapple Crush Emerald Ice Ruby Surprise Eatables Melting Moments Banana n Walnut Cake Banana Chocolate Mousse Banana Caramel pie Chocolate Doughnut Cookies Marble Cake Pineapple Getaux Chocolate Cake Ice Creams Vanilla Chocolate Seasons Best Quick Bites Samosa Puff Pizza Croissant French Fries Kathi Roll Wraps

International Coffee Colombian Juan Valdez Ethiopian Qahwah Kenyan Safari Cold Coffee Sweet Mint Cold Sparkle Brandied Banana Tropical Iceberg Iced Eskimo

Smoothies Mango Colada Strawberry Colada Cremosas Litchi Ginger Spice Pina Colada

Biryani Sandwiches Kulcha Burger Pasta Masala Sandwich

Coffee Add-ons Cool Refreshers Honey Flavoured Fruit Juices Mineral Syrups Red Eye Water Whipped Cream Scoop pf Ice cream Chocolate Sauce Teas Assam Tea Masala Chai Lemon n Ice Tea Kashmiri Qahwah Apple n Cranberry ice tea

Positioning y Consumer Profile: Research shows that 37% of the customers are between 20 and 24years. 27% of the customers are between the age group of 25-29 years. 60% of the customers who visit the caf are male and 40% are female. 52% of customers who visit the cafes are students.18% of the customers visit the cafes daily while another 44% visit weekly. Each caf, depending upon its size attracts between 500 and 800 customers daily, mainly between 4pm and 7 pm. Customers describe Caf Coffee Day as the place they frequent most after home and workplace/college. It is a place where they meet friends and colleagues, in groups. The prices here are perceived to be reasonable and it is a place where customers come to meet themselves and be themselves rather than a place to be seen at other cafes.

y Brand Image: Caf Coffee Day is a regular meeting place for 15 to 29 years old, both male and female, who are waited on by friendly and informed staff, and are offered the best made coffee, hot or cold, beverages and food in an invigorating ambience. It is urban youngsters favorite hangout. Its customers are mostly young college students and young professionals. It is for those who are young or young at heart. Prices Considering that Caf Coffee Day knows its major customer lies in the bracket of 15- 29, it has tried to derive a policy whereby it can satisfy all its customers. The price for a cup of coffee ranges from Rs.30 to Rs.70. From the time it first started its operations, there has been only minor changes in the pricing policy of Caf Coffee Day. The changes have been more due to the government taxes than anything else. Places Caf Coffee Day outlets are spread across India. However, there are more number of outlets in the metros and towns. For e.g. In Mumbai, CCD have 138 outlets. In the past 12 months, Caf Coffee Day has also been on an aggressive drive to expand the number of cafs in the smaller towns across the country based on research and invitations received from these places to open more such cafes there. There will be an increased focus in cities having populations from as low as Five Lakh upwards. However, the focus has not been on just opening more cafs wherever there has-been an opportunity. Caf Coffee Day is already the largest and most wide spread retail chain of cafes in India.

Promotion In order to stay with the competition and to keep the audience interested, they undertake lot of promotion activities. CCD jointly organizes large number of promotions with the other companies serving the similar target audience. These cafes have emerged as a new media vehicle for reaching the right type of the customer.CCD gets in physical touch with audiences, target loyalty club members, or advertises in their newsletters.

BARISTA
INTRODUCTION Barista (which means bartender in English) is an Italian coffee chain shop. Barista traces its roots back to the old coffee houses in Italy- the hotbeds of poetry, love, music, writing, revolution, and of course, fine coffee.

Barista Coffee was established with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in this particular segment.

More significantly, they have been quick to spot a latent need waiting to be tapped: Coffee lovers seek a complete experience. One that combines intelligent positioning with the right product mix and carefully designed cafes. In other words, they seek an Experiential lifestyle brand".

As one might imagine, tapping into this need requires a company that can not only deliver great coffee and espresso bars, but one with the ability to scale up operations quickly. At Barista, they have gone to great lengths to establish this.

Barista started its operations with its first outlet at New Delhi in Feb 2000. The Company was promoted by Amit Judges Turner Morrison Group BARISTA Coffee Company Ltd - in which Tata Coffee Ltd holds 34.3 percent stake Ventured into India.

Barista Coffee Company Limited has been recently listed among the top 100 brands in India by Super Brands India; the Indian Division of the globally renowned Super brands ltd. Barista was selected out of 711 leading Indian brands across 98 categories. Barista has its operations spread over 153 outlets across India. At present, Barista had, he said, over 120 espresso bars and corners in the four metros and 14 cities of India, with 35 being added over the last 12 months, out of which 10 had been relocated. CORPORATE PROFILE Established in February 2000, Barista Lavazza is noted as a pioneer of Indian caf culture. The Barista Lavazza chain of espresso bars delivers a truly Italian coffee experience in warm, friendly and relaxed environment. It aims to provide a comfortable place for people to unwind over interesting conversations and a cup of coffee. Barista Lavazza consists of young adults, who are exposed to global lifestyles and appreciate the authentic flavours and tastes of coffee. At last count, the Barista Coffee Company Limited has over 200 Barista Lavazza Espresso Bars and Barista Lavazza Crmes in over 30 cities across India. Besides the Indian sub-continent, Barista Lavazza also has cafes in locations across Sri Lanka, Oman and the UAE. Barista is owned by Lavazza, Italy's largest coffee company. Lavazza, the sixth largest coffee roaster in the world, has a 46.5% share in the Italian retail market (value, source: Nielsen) and operates in over 80 countries in the Home and Away-from-Home sectors (Foodservice, Vending and Cafes). Key Features:
y y y y

Strong Web branding Web Customer acquisition High customer engagement on the website Edgy user experience in line with their youthful brand positioning

Most Admired Retail Leisure Chain 2011 - Awards for shoppers & Consumer Insights

Achievements: In a relatively short span of eight years, Barista Lavazza has managed to capture the loyalties of many a coffee lover. Its leadership position can be attributed to a remarkable expertise in specialty coffee coupled with a sound technical competence, an ever evolving retail experience, a rapidly growing distribution network and top end maintenance support. It has also created and nurtured a successful franchisee model for international markets. MARKETING-MIX Product Mix

Coffees & Teas

Coffee with Milk Cappuccino Caffe Mocha Caffe Latte

Refreshing Alternatives
Smoothies Guava Mango Grape

Eatables
Sandwiches Paneer Tikka Cheese & Tomato Chicken Tikka Smoked Chicken Rolls Kadhai Paneer Roll Chicken Masala Roll

Black Coffee Espresso Italiano EsperanoTM Americano

Granitas Blue Curacao Lime Ice Mixed Fruit Tango Guava Crush Milk Based Strawberry Freeze Mocha Freeze Icepresso Iced Tea Lemon Peach

Dessert Coffees Latte Bianco Caffe Borgia

Pastas Tangy Tomato Pasta Creamy Chicken Pasts Other Food BBQChicken Croissant

Cold Coffees BrrristaTM Brrrista FrappeTM Brrrista BlastTM Iced Caffe Mocha

Coffee Add-ons

Other Drinks

Desserts Walnut Brownie Mocha Excess Chocolate Excess Dark Temptation Chocolate Mousse Chocolate Chip Muffin Almond Raisin Muffin Apple Cake

Various Flavours Ginger Fizz Kinley Water Chocolate Fudge Whipped Cream Espresso Shot Ice Cream Scoop

Teas Assam English Breakfast Darjeeling Earl Grey

Positioning y Consumer Profile: According to research, over 65% of Baristas customers are in the 15- 30 age- group. The majority of these are students and young urban professionals. y Brand Image: Barista positions itself as a brand for anyone who loves coffee. Their products, services and outlets are more like the traditional European cafs, where people would meet for the love of coffee, and for an intellectual appealing time. They position their outlets as a place where the world meets, and they look to appeal to anyone in the 14- 60 age group that loves good coffee and looks for a nice quiet time.

Prices Barista holds the perception of being an expensive caf. However, Barista was the first organization to start the concept of the organized cafes in India. Initially Barista started with Skimmed pricing policy. Barista segmented the market according to the income and age.

Due to the entrance of new players, Barista was finding difficult to maintain the market share. First and foremost, Barista re-defined the target market customer. They even planned to change their tagline."Where the world meets And so when company looked at this positioning and they looked at the pricing - the strategy being that if we lower the pricing. Apart from this, Barista has also introduced new low-priced beverages. The officials say these price cuts have resulted in 15-per cent walk-ins at Baristas outlets during the last few months. Barista decided to alter their strategy in order to retain their market. After studying the market, Barista found that competitors were fighting against them against the pricing. They decided to reduce their pricing. It was not done from a perspective of acquisition. Places Barista started its first outlet at Bangalore and from there it has started spreading its wings especially after price reduction. Now they are even planning to focus on raising the bar of coffee experience. Barista already has presence in all the metros and has a presence in all the highly populated regions like Mumbai, Delhi, Bangalore and many more places. Barista is seeking to expand through the franchisee route model and plans to enter B-class towns in the country and middle-class localities in the metros such as North and East Delhi.

Promotion Barista did not initially believed in any kind of promotion but in order to keep their customers interested they started building the brand by communication both within the store as well as outside the store through mass media. It under takes various promotion activities during the festival or during occasions like Valentines Day. Barista has done advertising in almost all national newspapers. Barista has launched summer campaign through summer chillers, and was advertised through different channels.

MARKET SURVEY Survey Methodology A survey was conducted, consisting of a sample of randomly selected people, in the age group of 18-25. This survey aims to find out how Barista and Caf Coffee Days target market, rate their products and services.

% MARKET SHARE OF COMPETITORS

2 4 40 34 CCD MOCHA'S BARISTA QUICKY'S 20 GEORGIA

Comparative Rating: The survey also asked the customers to rate the following parameters on a scale of 1-5 (1 being the worst, 5 being the best), for both Barista and Caf Coffee Day: Sr. No. 1 2 3 4 5 6 7 8 Taste & Quality of products Prices of products Order/ Delivery time & Order/ Delivery process Performance of staff Ambience Availability of products Value for money of products Overall performance Particulars Overall CCD 3.5 4 4 3.5 3.5 4 3.5 3.5 Barista 4 3 4 4.5 4.5 4 3 4.5

CONCLUSION Caf Coffee Day CCD is at the heart of the cafe culture wave that has swept across metropolitan cities It has tremendous demand and following but it still needs to work on creating a strong brand image and customer loyalty, also there is a constant need to move and evolve for there is cut throat competition in this sector It has great potential to be one of the leading coffee shop brands in India and a brand to reckon.. Barista Barista has a strong and clear brand image. Their customers can easily identify and relate to the Barista brand. This helps increase and maintains brand loyalty. They need to work hard on improving their customer perception of being and expensive brand. Barista and Caf Coffee Day have almost identical pricing, but Barista is still perceived as the more expensive brand.

BIBLIOGRAPHY

http://www.linkedin.com/company/barista-coffee-company http://www.edynamic.net/home/baristalavazza.aspx http://www.barista.co.in/users/index.aspx http://www.scribd.com/doc/21657900/barista-vs-CCD http://www.authorstream.com/Presentation/BHAGYASHREEKEDIA-810198-ppt2-mail/ http://www.cafecoffeeday.com/