Service Characteristics of Café Coffee Day

Overview

Café Coffee Day is a division of India’s largest coffee chain conglomerate, Amalgamated Bean
Coffee Trading Company Ltd.(ABCTCL) popularly known as Caffee Day. This is a ISO 9002
certified company with a net value of 300 Crore. Its chief customers are in USA, Europe and
Japan, based in Chickmanglur, the home of some of best Indian Coffees, Coffee Day has its
business spanning the entire gamut of coffee consumption in India. Its different divisions
includes:
 Coffee Day Fresh and Ground (354 coffee bean and powder retail outlet)
 Coffee Day Xpress (341 Café Day Kiosk)
 Coffee Day Take away( 7000 vending machine)
 Coffee Day Exports
 Café Coffee Day
 Coffee Day Perfect (FMCG Package Coffee) division
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 by the five star coffee shop Visitor. As the
pure (as oppose to instant coffee) coffee café culture in neighboring international market grew,
the need for a relaxed and fun hangout for the emerging urban youth in the country was clearly
seen.
Recognizing the potential that lay ahead on the horizon, café Coffee Day embarked on a dynamic
journey to become a large organize retail café chain with a distinct brand identity of its own.

Service characteristics of café coffee day

Intangibility

Heterogeneous

Inseparability

Perish ability
7 P’s of service marketing

Product-
Café coffee day changes and make fresh additions to its menu from time to time. This includes
different Indian coffee varieties, specialty coffees from various countries, snacks, exotic desserts
as well as non-coffee beverages like shakes, granitas and coladas with continuous innovation in
recipes. Since the target consumers is of an age where one constantly seeks change, this make
sure that consumer does not get bored with a repetitive style and seeks new places to go to.

Price

Place
Café coffee Day is located in a prime visible place where there is a potential to reach the
potential targeted customer. As far as the location, the café coffee day outlets can be divided into
 Stand alone stores, for example- CCD in Zoo tiniali, Guwahati
 Mall stores, CCD in Hub Guwahati
 Airport Stores, CCD in Gopinath Bordoloi International Airport, Guwahati
 Collaboration stores, CCD in Ginger hotel, Guwahati and CCD in Pantaloon Guwahati
Café Coffee Day used to take the place in rent or collaborating with various individual or
organizations as a partner with sales sharing basis

Café coffee day has changed its interiors twice since inception. First during it’s rebranding in
2002, where it brought in big photographic wall mounts of coffee experiences, and yellow chairs
and marble tables, and secondly in 2006 it changed its décor to cane chairs to give the outlets a
more casual feel. Café Coffee day has hence constantly reinvented its look to keep up with the
ever changing wants of its consumers.
Promotion-

Café coffee day does not look at the mass media as a viable area of advertising or marketing
spend.CCD is advertised through a barter deals with other brands for ground events.
Below the line activity:
2003-Levi’s launched a new range of low rise geans through a campaign called “6’’
below” .CCD displays POPs of Levi’s in all its outlets during the campaign.
2004:The lounch of Liril orange soap by HUL was conducted in café coffee day.
2004:TVS Scooty tied up with CCD for events in the coffee bars and at malls on
valentines day in Feb.
2004:CCD was the official ground partner for the channel V Get Gorgeous Contest.
In Flim Advertisements
Some Telegu and Tamil films with prominent brand placements.
Hindi films – It started with “Bas Yun Hi!” and then conscious advertisement decisions were
made for “Khakee”, “Main Hoon Na”, “Kyun Ho Gaya Na”, “Mujhse Shaadi Karoge”.
All these movies were targeted at young movie- goers,Teenagers,and people looking for light
hearted entertatinments.

Sales Promotions:
Merchandising:
Every CCD stocks merchandise ranging from
 coffee mugs,
 T – shirts,
 Caps,
 Bags,
 Coffee Filters
 Mints,
 Different flavours of coffee powers,
 Tea and Cream,
 Wafers, and
 Biscottis
It also merchandises promotional material for other brands it associates with. When some brands
are conducting events for which passes are distributed or movie premier tickets are given out
,CCD is an important Hub for these activities.
CCD guide to active holidays:
It is a travel guide focusing on the adventure sports and is available in CCD outlets, people
seeking escaped from monotonous life.
Café Beat
An in house magazine which gives the entire low-down on what’s happening in CCD outlets
across the world. It describe the experience the selection of customers ,celebrations in CCDs and
covers the youth centric topics like movies, music, travel, lifestyle, e-dating, books and
careers .Around 38% of CCD goers read Café Beat and some carry it back with them.

People (motivation, training,

Process

Café Coffee day has the largest number of cafes in India, with over 640 ‘company owned,
company operated ‘outlets. Café Coffee day doesn’t follow franchisee strategy. The channel
partner has no involvement in daily operational activities of the café in the retail space, neither
have they to invest in the operational capital equipment nor branding nor marketing of Café
Coffee Day. CCD found more expensive to maintain on its own so they didn’t follow forward
integration and outsourced its distribution responsibility to third parties from 2003, as CCD has
expanded and continuously explored to smaller towns, it. Except coffee beans, most of the
products like sugar, paper cups and other raw materials are purchased from private players for
nationwide distribution. The perishable products are being purchased locally which reduces the
transportation cost.

Physical Evidence

Strategic aspect of service Marketing

STP Approach

Segmentation

Café coffee day has different café formats across different cities. It can be categorized into
 Music Café, for example- Café Coffee day In Hub, Bhangagarh, in Zoo tiniali etc
 Book Café
 Highway Café
 Lounge Café, for example- Dighalipukhri Cafe
 Garden Café
 Cyber Café
 Airport Cafe
Targeting

Café Coffee Day has its main

AGE PROFILE OF CUSTOMERS customer base in the group of 15-29
years. Its customers are mainly
middle class and upper middle class
15-19
24.8 20-24 youth who are upwardly mobile.
5.3 From the market CCD seeks to target
3.3 5.3 25-29
23.4 30-34 not just the youth but anyone who is
35-44
“young at heart”. More than 10%of
ABOVE 45
37.9 their customers are above 35 years
age. The evidence of the connect
CCD has been able to make
,particularly among the youth ,comes
from the findings of the Brand
Equity’s Most Trusted Brands 2008 survey. In the food service category, CCD ranks No 2 ,
while McDonald’s stands at No.3 and Barista lags at No 5.
The graph below indicates official figures for the type of the consumers of CCD. We can clearly
see that its most profitable segment is 20-24 age brackets. These customers can afford to visit
CCD on a regular basis and have a habit forming attitude towards CCD.

Positioning
From the beginning , Café Coffee Day has been positioned as a coffee bar. For a consumer,CCD
represents as a fun place.

“A lot can happen over coffee”

The statement above is the tagline of Café Coffee Day. It explains in a concise way how Café
Coffee Day is not just a place where one comes for a coffee.CCD positions itself as much more
than a conventional coffee shop. It is seen as a “fun place” where young stars come in groups
and have a good time over coffee.CCD hence perceive as a hang out zone, meeting place for
business purpose, enjoying one’s private time etc. CCD provides facilities like Wi-Fi and World
Space and other merchandise in order to pull in more customers.

“In sight, therefore in mind”

CCD has 640 cafes spread across 104 cities from Mumbai to Shillong and Vaishno Devi to
Kanyakumari. Its pan-India presence gives it a huge advantage over competitors. High visibility
is one of the more reasons for CCD to enjoy top of the mind recall and high number of loyal
customers

Customer relationship Management and data Mining