PRODUCT AND BRAND MANAGEMENT

Final Report

Submitted to: Prof. Jishnu Changkakoti

APO GROUP - 10

Manvi Gupta - 210103090

Mausam Kumar Khandelwal – 210103092
Naman Jindal - 210103103
Prateek Budhani - 210103116
Ronit Singh - 210103131
 Overview
Founded: 1996
Founder- V.G Siddhartha

Cafe Coffee Day, popularly known as CCD is a brand launched in the year 1996 by a renowned
businessman Late Mr. V.G Siddhartha. After the sudden demise of the founder, the issues
prevailing with the brand came into the picture.
There is a continuous drop in the number of outlets for CCD. More than 500 outlets have been
closed since April 2019. CCD had also closed all its international operations. CCD has been
losing its market share in the recent years
Siddhartha came from a family with a Coffee growing business. He inherited acres of coffee
farms in the Chikmanglur region and invested in more coffee farms. He wanted to reach out to
people to start drinking coffee with an experience.
Café Coffee Day Global Limited Company was founded in Bengaluru and was the first to
introduce coffee bar concept in India. It is the biggest maker of Arabica beans in Asia.

Tagline- “A lot can happen over a coffee”

Divisions-

● Coffee Day Fresh ‘n’ Ground

● Coffee Day Square
● Coffee Day Xpress
● Coffee Day Beverages
● Coffee Day exports
● Coffee Day perfect
● Coffee DayB2C Plant
Revenue in 2021 – 1024 Cr

MARKETING MIX
Product

Café Coffee Day's product mix includes a diverse selection of items majorly coffee and snacks.
Most foods, such as samosas, biryani, masala sandwiches, and tikka sandwiches, have been
adapted to appeal to Indian palates. Food and coffee, for example, also have a distinct Indian
flavour. In the summer, frappe, which combines coffee and ice cream, is the most popular item.
It is popular among the youth. In winters, It's cappuccino. T-shirts, hats, and other items are part
of their merchandising.

BEVERAGES FOOD ITEMS DESSERTS

Coffee Burgers Cakes

Tea Pizzas Pastries

 Shakes Rolls

Nutritional Drinks Wraps

Snacks

Cookies

Price

Knowing that most of its clients are between the ages of 15 to 35, Café Coffee Day has
attempted to devise a policy that will cater to all its customers from students to corporate
employees. A cup of coffee might cost anywhere between Rs.100 to Rs. 250.The brand also
offers its beverages in different sizes for consumers preference and prizes them accordingly.
They also keep options open for consumers to add certain items to their beverages at a certain
price. Café Coffee Day's price policy hasn't changed much since it originally entered the market.

Place

CCD has adopted the concept of putting a cafe in every available site where business may be
created. This is a critical aspect in deciding a retail chain's success. Café Coffee Day aims to
reach out to their customer base by opening shops in strategic locations. Their stores are mostly
found in markets, petrol stations, near colleges, among other places. They also have machines
setup in colleges and corporate offices.

Promotion

Café Coffee Day holds promotional events in locations where its target demographic is present.
CCD employs television ads and print advertisements, as well as co-branding in films and
television series. It also runs special sales promotion activities such as happy hours, deals, and
coupons.

People

“People are hired for what they know but fired for how they behave”.
Employees are trained to be customer friendly and are expected to maintain the highest standard
of hygiene and cleanliness. The staff is expected to wear uniforms and have decent
communication and people skills

Process
Most outlets have on counter order services. No stores have the option of valet parking

Physical Evidence
The outlet has wooden panels as interiors and follows a colour scheme of red and violet which
are the colours on its logo as well. Its logo is a dialogue box with Café Coffee Day written inside
the box and is displayed at pivotal locations in the store including cups, plates and uniform of the
staff present in stores.

SWOT ANALYSIS

Strengths
1. Products are of good quality and taste.

2. More than 40% of consumers are youths who are visiting CCD.

3.Self production of Coffee Beans.

4. It provides affordable products with comfort.

Weaknesses
1. CCD is losing its charm among the consumers due to influx of competitors like Costa Coffee
and Starbucks, who have raised the bar in the market.

2. Non standardization of stores due to inefficient franchise model.

3. Wrong location selection for stores.

4. Losing brand equity.

Opportunities
1. The large untapped market in smaller towns/cities.

2. Increase engagement activities in social media.

3. Tie with other companies for promotion.

Threats
1. Multiple available options lead to frequent brand switching.

2. Entry of foreign players leading to loss in market share.

COMPETITOR ANALYSIS

Costa Coffee
The coffee brand came into picture in 1971 in London. Costa Coffee is the second largest coffee
house chain across the globe. It takes pride in its ingredient mixture of robusta and arabica
beans. The brand segments its customer base on the basis of age group and income level. Age
groups help them identify the taste and the kind of product a consumer might end up purchasing
whereas the income level shows them the probability and capability of the product being
purchased by a particular consumer. It targets the premium segment and believe it to be the most
profitable one. The brand positions itself as serving the best quality coffee which can only be
made by them.

Product
Costa coffee has various products to offer in the food and beverage category which includes
beverages like hot chocolate, different types of cold and hot coffee along with iced drinks as
well. In the food category, costa coffee believes to provide snacks that people usually prefer to
eat with the beverages they have to offer like sandwiches, bagels, muffins etc.

Price
The brand believes in providing quality product to customers and prioritizes quality over price.
They have premium pricing with the belief that they will get repeat customers if the vale they
provide to them is satisfactory and justifies the price they charge for it.

Place
The presence of the coffee shops in India is relatively limited to the its presence in other
countries. The main reason is the premium pricing which only allows it to be significant in urban
Indian cities.
Promotion
Generally, stores are present in airports and malls. Promotion of the brand usually happens by
word-of-mouth marketing and recommendations; however, the brand also does advertisements
and OOH marketing to cater to a targeted market.

Starbucks
Starbucks first store opened in 1971 by its three cofounders who were coffee lovers. Currently,
it is the largest coffee chain in the world headquartered in Washington. Starbucks is a global
brand and has a diverse customer base. It has divided the market into various segments.
Demographically, it targets corporate employees and students, the age group it targets is mostly
22-60 years. It appeals to a certain set of consumers having a specific lifestyle. Starbucks

The brand positions itself as one of the best customer experience coffee shops and aims to
provide the best customer service.

Products
Starbucks promises to offer coffee as consumers like it and also provides the cup of coffee with
the name of the consumer on it. The products are coffee, tea, muffins, frappe etc. Some of the
products are offered seasonally and the coffee shop also offers the option of customization of the
product.

Prices
Starbucks follows premium pricing strategy and promotes its self as brand closely associated
with high social status. The high price is to induce the consumers in believing the product quality
they offer is also high. It justifies the price by promise of quality and customer service and
experience that consumers get at the store.

Place
It is the largest coffeehouse chain globally. In India we see starbucks outlets present at prominent
locations wherever the target audience is present. Starbucks also offers the option to make
purchase through their own e commerce site and is also listed on other delivery platforms.

Promotion
Starbucks uses most kind of promotional activities. It is active on all social media platforms and
regularly updates them with new products and schemes. They also have loyalty cards for
customers. Online advertisements on television as well as banners and posters on hoardings have
played a major role in making people aware about the brand.

Barista Lavazza
Barista Lavazza is a chain of coffee shops which is relatively recent and was founded in 2000 by
Pratha Duttagupta. With its headquarters in Delhi, India, the coffee joint banks that it provides
the best Italian and arabica coffee. The segment it looks to target is the middle or upper class
youth who look for places to hangout with a cup of coffee and supplementary snacking items
along with it. It positions itself as an original Indian brand.

Product
Like its competitors, it serves various types of coffees, deserts, smoothies and food items such as
pastas and rolls etc.

Price
The brand initially started with charging higher prices to its customers. But gradually with
increase in competition, they started to reduce the price so as they don’t lose customers to
competitors. Price reduction was not a big of a problem as they had achieved economies of scale
till that time.

Place
All outlets are owned by the company itself and none by the franchise. The outlets are placed
strategically at places where the footfall to such joints can be maximized like colleges, movie
theatres, corporate offices etc.

Promotion
To promote the brand, barista uses techniques such as customer loyalty cards by offering
incentives on repeat purchases. They also collaborate with other brands to promote themselves to
a new customer base.

Indirect Competitors
Dunkin Donuts
Dunkin Donuts is a food and beverage, coffeehouse industry that was established during the year

1950. It is an American multinational quick service restaurant chain and serves many food

products like baked foods, hot beverages, iced beverages, frozen beverages, donuts, sandwiches,

and soft drinks.

McDonald’s McCafe
McCafé is a popular coffee house food and beverage chain that is owned by McDonald. The

company was founded during the year 1993. The concept of McCafé was introduced to create an

atmosphere and foot-traffic for the McDonald’s store.

The company has opened about 1300 outlets across the globe, and it is quite popular. The

McCafé coffee house serves beverages and food items with specific flavors and unique taste.

Their beverages include a variety of hot and cold drinks that are delicious, smooth, and creamy.

Their food products include cakes and desserts. The company has its visibility worldwide.

Chaayos
New Delhi-based tea cafe Chaayos offers more than 25 varieties of tea with 12 add-ons, giving

its customers 12,000 ways of making their own tea. Chaayos has expanded to around 70 stores

across India with a presence in Mumbai, Delhi, Noida, Gurgaon, Ghaziabad, and Chandigarh.
 Analysis
CCD had been growing in terms of number of outlets from its inception till 2018. After that, the
outlets were forced to shut down due to accumulated losses and debt. The difference between the
number of outlets of various brands (direct and indirect competitors) as compared to CCD in the
year 2014 and 2016 is a significant one. This showed the domination in presence of the brand
and its availability at an arm’s length to the customers.
The reason for the decline in no. of outlets was that In 2019, The brand was found to be in huge
debt. The owner and founder had to sell major stakes to carry on with the business, but this
wasn’t enough, at the time, the Indian coffee exports had gone down and the coffee market in all
was at a decline in terms of price. In 2017, was the first time when Sidhartha’s office, house and
several locations of the brand including the head office was raided. 650 crore worth of hidden
income was found. All of this led to Sidhartha committing suicide in July, 2019. He left a letter
explaining the reasons for his actions.

This led to major liquidity crunch in the company and various outlets had to be shut to reduce
losses and repay debts. The pandemic worsened things for the company. With stores shut and
corporate offices closed, the huge no. of machines installed were not being used and therefore
there was no demand.

When all of this was happening with CCD, a major player globally named Starbucks was making
its presence in the Indian market. Costa coffee, the second largest brand globally also started to
gain the feel and sense of the Indian market. It started personalizing its outlets in different cities
according to the culture of the city. They did their research on the Indian consumer and were
aware that Indian had this will to westernize but in their own traditional Indian ways. Costa
coffee started increasing the no. of outlets it had in the country and planned to expand its
business to tier 2 and tier 3 as well. They also started roasting beans in South India itself.

Starbucks came into india by joining hands with tata coffee in 2012. Starbucks did wonders in
the market when it came to be. The main attraction to customers was the aesthetic beauty odf its
stores which were set up in prominent locations like Connaught Place, Delhi. The stores have
walls painted with different kinds of art, each having some significance. Starbucks also regularly
had campaigns and sales promotion offers where they offered products at a discounted price for
span of time. The experiments with its stores have paid off very well looking at its success in the
present day. The brand also thrives on having excellent customer relationships and values its
existing customers. They offer loyalty membership cards. Customer service has also been crucial
to the rise of the coffee house in India. The coffee house offers free Wi-Fi for customers so that
they can work while having coffee or scroll through their social media feed. Starbucks itself has
been highly active on all its social media platforms that has contributed towards its growth.
Regular posts and updates increased the visibility of the brand. All of this evident from the
growth of their stores in the Indian market
 CATEGORY ANALYSIS

Café Coffee Day comes under Food and Beverages segment. The revenue of the food and
beverages industry is expected to grow at a CAGR of 14.2% during 2020-2024 in India, leading
to a market volume of US $1,264 M by 2024. The Food and Beverages industry is driven by a
surging young population and growing urbanization. By 2030, India is expected to become the
5th largest consumer base in the world. 

The coffee market is highly unorganized. Multiple players are competing in this industry. But it
is expected to decline in the next 4-5 years. The industry is concentrated at the top and
fragmented at the bottom. 

The products sold by coffee shops have beverages and complimentary food items. The beverages
include tea, brewed coffee, espresso drinks (Café lattes, cappuccinos, etc.), cold blended
beverages, soft drinks, juices, bottled water, cold blended beverages. The food products segment
includes pastries, desserts, candy, sandwiches, bakery items, etc. The products like Café coffee
day are widely available in different segments, including fine dining, quick service restaurants,
Cafes, casual dining. 

As per UN reports, India is expected to surpass China and US in population size around 2022.
The Indian population is younger than most other Asian countries, with a median age of 28
years. The urban population is continuously increasing with approx—35% in urban areas. 

The target market for this category is 25 to 45 years, which will increase in the coming years.
This will lead to an increase in the complete pie of that segment. There is extreme competition in
this category due to high profit margin. The competition is there to acquire new consumers and
to get premium locations. 

In this category, there is the risk of substitute products. Coffee as a product can be easily
substituted by juice, water, sports drinks, beer, soda, etc. The substitutes are easily available and
are available at a lower price as well. The consumer has a limited budget to spend on the
products such as beer, coffee, juice, and hence companies must fight to gain a fraction of the
budget. 

The barrier of entry for the small players is very low. It is very easy to open a single small café.
But when it comes to specialty or big chain stores, their entry is not easy. The bigger chains have
a cost advantage because of economies of scale, which can disadvantage new entrants. The
companies in this category also do partnerships with large players like Pepsi, Coke, etc. 
The power of suppliers in this category is very low as the raw materials are easily available, and
the raw material cost is also low. In the case of CCD, they produce their own coffee beans,
which is another advantage for them.

In this category, the customers have the power to choose, and word of mouth possess an
important role in selected stores. The budget also has a role in the selection.
Driving Factors of the category:

One of the important drivers of this category is the growth of the companies in the form of
international and domestic expansion. The organized players in the category are planning and
expanding very rapidly to mark their presence or gain market share. The key channel used for
distribution is the company-operated stores, which are generally located in high traffic areas with
high visibility. The unorganized market is also increasing at a very fast rate in the cities
worldwide.

Product and service innovation is another factor that drives this category. The bigger players in
this category are continuously involved in innovation, be it product or service. Launching a new
drink every year to sustain or grow the consumer base is one example. Starbucks focused on
customer acceptance of the flow and how the product in the store fits the ergonomic flow. Some
players have also launched pre-paid cards, which reduces the transaction time and adds new
consumers via gift cards.

Collaboration and partnership are also important driving factor of this category. These
partnerships also help the brands in channel extension, geographic extension, and innovation. 
Technology is another factor driving this category. This adds to the quality and optimizes the
cost, which puts the player in a powerful position. The focus also helps to achieve the
standardization of offering, which is also an important factor to look upon.

Number of cities with Cafe Coffee Day outlets in India from financial year 2014 to 2021
 CONSUMER ANALYSIS

In order to recognize the marketing and positioning issues which are currently plaguing CCD, we
corroborated insights from everyday consumers through primary quantitative research. We
floated a questionnaire which probed the consumers regarding their choices and preferences.
This included asking whether they were regular coffee consumers, if they had been to CCD
before, and then further questions on their experience with CCD.

Demographics of respondents:

Age

2 1

14

30

15-17 18-24 25-30 30+

Insights from CCD customers:

83% of the respondents have been to CCD before, which shows us that the brand awareness is
extremely high. We have tried to incorporate a varied range of respondents according to different
demographics.
Amongst CCD’s customers, we can see that the majority of the customers belong to a segment
which sees coffee as a utility, not as a lifestyle statement, which is why 95% of the respondents
are not open to spending more than 500 rupees on CCD’s offerings. Even though we have
customers from high income groups, the brand equity of CCD is low, which is why CCD is not
seen as an aspirational brand for which customers pay premium prices.
As we can see, this rationale also holds true when we analyze premium segments where CCD’s
penetration is very less.

We can see that our customers base uses CCD uses primarily for food and beverages as a utility-
based brand, and for socializing. It is seen as a place with high functional value proposition
where people can meet, but not high aspirational value.
We can conclude that the main footfall for CCD has been coming through word-of-mouth
publicity, and that their marketing communications and campaigns have failed to make an impact
on the customers. They have failed to align their marketing strategies and communication
channels to the evolving customer touchpoints which is now moving to the digital space. This is
where they primarily where they need to focus on going ahead.

With the kind of product mix that CCD offers, majority of the consumers prefer to dine-in at
CCD outlets, which further highlights the need to improve their experiential value proposition
which includes – their overall sensory experience. Even though they are seen as a utility-based
chain, but they are in the experiential space, where they must aim to become a lifestyle brand.
CCD has overstretched its product width which is directly led to decline in quality of products.
They need to trim down on their offerings. This is directly led to CCD projecting an unclear
brand image in the market.

As
consumers are evolving, mid-range brands are declining as consumers see them as mass market
brands but with high prices which do not offer value for money – which is something verified by
our primary research where people think of CCD as overpriced.
Following were the reasons given by our respondents as to why CCD was not their preferred
café:

1. Ambience is not satisfactory enough.

2. They find CCD overpriced i.e. it is not value for money.
3. Limited options on the menu, and even the portion size is low.
4. Local based chains offer more sense of familiarity and more authentic flavors.
5. The cleanliness and standards have dropped or isn’t consistent. Doesn’t offer the best
experience.
6. Frequent problems with digital payments and staff service.
 BRAND POSITIONING

Previous Brand Positioning Statement-

To middle income and young individuals looking for a place to have a

cup of coffee, CCD is a good place to have coffee because it provides a
world class experience at affordable prices.

New brand Positioning Statement-

To hustlers looking for a place to interact and foster meaningful

experience, CCD is the place to have the best coffee and more because it
provides all your needs at your convenience anytime anywhere.

PRODUCT STRATEGY
 The changes need to be done in the menu of Café coffee day.

As seen in the current menu above, the products are divided into different categories,
such as Food for mood, hot classics, All time chillers. But, people who prefer coffee are
 more likely to look for the categories such as Cappuccino, Mocha, Americano, Expresso
etc. this would be easy for the customers to select their favourite coffee.

Also, there should be different variants under these categories as people prefer
customized coffees more than normal coffee. We can see this from the below Pyramid.

 From our Primary research, we found that 45% of the respondents rated the products In
the CCD outlets are of average quality. The reason behind this apart from the coffee
could be that CCD is providing different types of Snacks while they don’t have any
cooking facility pf their own. So, either they should start their own kitchen in the Café or
limit the products to the most favored by the consumers and provide them with a healthy
and preferred taste.
  To let the consumers, taste the new Snacks, there should be Combo offers available to let
the customers know that we have improved our Snacks range.
 Consumers currently are getting more and more fascinated towards the coffee culture;
CCD has an opportunity here to enter the market with various kinds of flavors of Instant
coffee. Currently, CCD sells limited products of Instant coffee, and therefore it should
extend the product range and market these products well to the consumers.

PRICING STRATEGY
The category in which Café coffee day lies is price sensitive. It is very important for the
companies to derive a price strategy to counter the competition. There is very low entry barrier in
the mentioned category which makes it difficult for the companies in the market. There are lot of
unorganized players competing in the market. In this category, Consumers switch very often.

Café coffee day has always been a place that offers more than just a cup of coffee. It is very
important for brands like Café coffee day to retain the customer and offer products with quality.

According to research, the people prefer Café coffee day for the ambiance, the service and the
product they offer. CCD follows differential pricing strategy in which the price changes
according to the location of the store. Another strategy which CCD follows is the bundle pricing
strategy in which the offerings are clubbed and then being offered at a discounted rate.
 The company can follow optional feature pricing where the price of add on are not included in
the total price. If a customer wants to have ice cream, they can have that at an additional cost.
This will lower down the price of the product and will offer more options to the consumers.

The company can also start loyalty programmes where the repeat customers can get something
free or can get a discount. They can also offer value cards to the consumers to reduce the
transaction time and increase customer satisfaction.

CCD can also launch complementary pricing strategy where they can charge lower for the
items that are common and are available at different brands or café and charge for the products
which are not easily available or are famous product of CCD.

PROMOTIONAL STRATEGY
Majority of CCD customers are between the ages of 15 and 30. As a result, in order to meet their
needs, they can maintain a high level of quality by using fine Arabica beans and brewing
methods similar to those used in Italy. Promoting itself as a social place will attract those who
enjoy socializing. Issuing a loyalty card as well as a gift card. It will offer discounts to customers
who buy from CCD on a regular basis. It should provide the best possible customer service. It
should aspire to be the best in providing an appropriate environment for coffee enthusiasts to
enjoy their time spent there.

Promoting its brand and introduce new items, including social media, TV commercials, and
advertisements. The combination of marketing media can make their brand distinctive, and its
consistency can distinguish it from other coffee brands, allowing them to stand out in the minds
of consumers.
CCD’s most essential marketing approach can be to rely on word-of-mouth advertising from its
customers, as CCD not only gives coffee but also an experience. In addition, as part of its new
product promotion strategy, the company can offer free samples to clients in order to obtain
feedback on the product and enhance buy intent. Using digital media to promote its campaigns
and keep in touch with its customers can also be used. Printing its brand on the mugs that
customers are given should also be used as a promotional strategy.

Other strategies that can be used-

Wall Branding- Wall branding are self-adhesive vinyl graphics that can be applied to most wall
surfaces that have been properly prepared. This will help to gain a new customer base.

Using the coasters, danglers, pillows, posters, saucer tags, standee, table mat, of the brand in
each outlet.

Facebook based promotion- CCD can invite its customers to interact with the brand through
facebook by contributing various thoughts, comments, anecdotes, and other information in an
open discussion forum. The brand can also use this to promote its events and other promotional
activities.

Instagram as a promotional tool- CCD can connect with its consumers and fans using
Instagram's photo-sharing platform. They can use the digital media channel for a variety of
initiatives, they can display images of renowned guests or celebrities who visit their stores, as
well as can design and display e-cards for festivals.

Twitter-based promotion- CCD can use the Twitter following as well. Customers' questions
can be answered by the brand on their site. Customers can also get an e-coupon for a new coffee
variety, and followers or customers can prepare their own customised coffee.

You-tube based promotion- Making good use of YouTube for marketing purposes. To engage
consumers, brand entrepreneurs share their ideas and success stories on a regular basis via short
video clips on the site can be used as a promotional strategy.
 FINANCIALS
Business Objective: CCD will continue its mission to be the best café chain by offering quality
coffee through its key strategic approach of affordability, accessibility, and amazing experience.

The India coffee retail chain market is expected to grow up to USD 855.0 million by 2025.

Marketing Objective: The target for CCD in the first year will be to attain an additional 2% of
market share reaching a total of 12% share of the Indian Coffee retail chain market. Also, at the
same time we aim to provide debt resolution for Yes Bank and Rabo Bank which would facilitate
the sale of vending business of CCD which would further help in reducing overall debt and
provide much needed boost.

The three-year target will be to attain a 16% market share in the Indian Coffee retail chain
market.

Sr. No. One Year

Particulars Three Year Target
Target
1. Sales Revenue (12% of 2022
1103 1681
market size)
2. Annual spending on TV
advertisement of 22 seconds, 20 20
5 times per day
3. Expenses on Billboards 10 15
4. Sales Promotion 250 180
5. Cost of Producing ad 3 5
6. Digital Promotion (YouTube, 20 30
 Instagram influencers,
Facebook, display & search
ads, and short video
platforms)
7. Print advertising (in youth
0.5 0.8
centric mediums)
8. COGS 1986 3027
9. Café maintenance and
renovation (572 outlets, 10 60 10
lakhs per outlet)
10. Gross Profit 868.5 1353

Explanation of above figures:

1. Based on a report by Statista, Indian Coffee retail café market is set to grow at a CAGR
of 6.9%, based on which we have calculated the market size. CCD holds 10% market,
based on which we have calculated its revenue.
2. Airing ads 5 times a day should be enough to ensure retention amongst our target
customers and based on charges (5000/sec) on Star Movies.
3. On it
4,5,6 – Referenced from industry standards.
7. Ads in newspapers like LiveMint, ET to cater to our target customers.
8. COGS forecasted from previous annual reports.
9. Since we plan on revamping our décor and outlets, we have taken an average cost of 10
lakhs per outlet.

RECOMMENDATIONS:
CCD has tried to reinvent itself as a brand and has been confident enough to face the storm. They
still believe that the brand holds values and will continue to keep the same brand name. The main
advantage for the company is that most of its competitors look to serve the premium segment,
but same is not the case with them. CCD today faces competition not only from large coffee
house chains but also QSR chains like McCafe and chaayos who are taking away the market
share in the industry.

1) Changes in the Menu

2) Enhance consumer experience
3) Improve the ambience of stores
4) Use social media to increase visibility
5) Introduce loyalty cards and customer benefit schemes
6) Introduce new auxiliaries under the brand with a fresh image
While CCD has taken steps to compete like introducing home delivery and tying up with third
part aggregators that deliver products to people. But they should also look for increasing footfall
in their stores as that will not have much fixed cost but will garner good results if pulled off.

The focus has shifted to providing the best possible experience they can. CCD launched its
application to track customer behavior, personalize offers and promotions, enable cashless
transactions through portals which should be continued and evolve. CCD also teamed with Free
charge in 2016 to enable cashless transactions at retail locations, allowing customers to pay with
their mobile numbers and complete the transaction within just 10 seconds. To increase
participation, CCD launched Café Concerts in 2016, focusing on live performances in
metropolitan cities. Cafe Concerts were very innovative at the time they were founded by CCD,
and they were very successful in attracting the youth. This type of sales promotion through
events is also very suitable for a brand that targets youth as it increases visibility in front of the
right audience. CCD prides on making their products affordable and accessible.

DISCUSSION GUIDE – CONSUMER

1. Getting to know Questions
i. Name
ii. Age
iii. Gender
iv. Monthly income
v. Occupation
vi. Which city are you from?
Regular coffee users or not?
Regular CCD customers? Why or why not?

2. Digging deeper questions

i. How often do you go out for coffee?
ii. What is your budget for your visits to coffee shops?
iii. What is your primary motive behind going to a coffee shop?
iv. How much time do you usually spend in a coffee shop?
v. How do you decide which coffee shop to visit?
vi. How many people do you prefer to accompany you to coffee visits?
vii. Is CCD your preferred coffee shop? If yes, why? If no, why?
viii. How did you come across CCD?
ix. How far is CCD located from your home?
x. Does CCD’s location attract you to CCD?
xi. What do you usually order in CCD?
xii. Do you prefer to dine-in at CCD or take away?
xiii. If CCD were to offer discounts, will you visit more often?
xiv. Which factor do you like the most about CCD? Food/Ambience/Crowd
xv. Which are the various coffee shops you have visited
xvi. Which factors do you bank on to decide which café to go to
xvii. How would you rate the cafes on ambience/taste/etc
xviii. Rank the importance of these factors
xix. How do you rate your current preferred café
xx. How do you like the food-snacks/quality/taste
xxi. Is food a factor for visiting CCD
xxii. Value for money – price vs portion size
xxiii. Ask broader questions*
3. Closing Remarks
i. Any suggestions to improve CCD’s market positioning?

References
1. https://www.ukessays.com/essays/marketing/market-segments-and-targeting-positioning-
marketing-essay.php
2. https://www.edrawmind.com/article/starbucks-market-segmentation-targeting-and-
positioning.html#:~:text=The%20market%20segmentation%20of
%20Starbucks,specifying%20a%20company's%20target%20market
3. https://www.ukessays.com/essays/marketing/an-analysis-of-costa-coffees-marketing-
marketing-essay.php
4. https://www.financialexpress.com/industry/whats-brewing-at-ccd/251755/
5. https://startuptalky.com/cafe-coffee-day-case-study/
#Mounting_Debts_and_Controversies
6. http://statista.com/
7. https://www.cafecoffeeday.com/about-us/range-of-outlets
8. https://www.financialexpress.com/industry/whats-brewing-at-ccd/251755/
9. https://www.cafecoffeeday.com/cafe-menu/whats-new
10. https://www.figlobal.com/content/dam/Informa/figlobal/india/en/2020/docs/HLN20FII-
GM-FoodBeverage_Market_Review_2020.pdf
11. https://www.statista.com/statistics/1031137/india-cafe-coffee-day-city-presence/
12. https://www.posist.com/restaurant-times/restro-gyaan/9-lesser-known-menu-pricing-
hacks-to-maximize-restaurant-profit.html
13. https://www.profitwell.com/recur/all/pricing-strategy-guide/
14. https://www.dartconsulting.co.in/market-news/growth-of-food-and-beverages-industry-
in-india-an-overview-about-the-opportunities-for-new-concepts-and-innovative-services-
2/
15. https://studiousguy.com/chaayos-business-model/#:~:text=Chaayos'%20marketing%20or
%20promotion%20strategy,to%20outlets%20or%20walk%2Dins