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Project Report On Caf

Coffee Day

A Project Report on Caf Coffee Day

PREFACE
Marketing strategies are methods followed by most successful and well known companies to
improve their scope in any market. It is a means by which we determine whether one company is
better than the other or not. Food chains are a growing industry in the modern world with an
increase in the number of working hours of the average working person. Hence, even food chains
need to improve their marketing strategies to appeal to the middle-class consumer.
The main aim of this project is to make the reader understand the various strategies followed by
food companies to improve their scope on the consumer and to add appeal to their brand as a
whole by being creative and unique. Here I am going to talk about the Caf Coffee Day as a
service industry. The Strengths, Weakness, Opportunity and Threats of Caf Coffee Day. The
Environment, Competitors etc of Caf Coffee Day. The service blue print of Caf Coffee Day.
The various techniques followed by Caf Coffee Day have been listed in this project in an easy
and understandable manner.
The contents of this project focus on the marketing strategies and techniques used by Caf
Coffee Day to make it such a global brand with universal appeal.

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A Project Report on Caf Coffee Day

TABLE OF CONTENTS
S. No.
1.

Contents
Executive Summary

2.
2.1
2.2
2.3
2.4
2.5

Industry analysis
Current trends in the industry
Roles of technology
Major players
Competition
Tangibility spectrum

6 -13
14
14
14 - 15
16 - 20
20

3.
3.1
3.2
3.3
3.4
3.6

Typical Service Offering


Customers expectations
Bundle of benefits
Typical service performance of firms
Services quality dimensions
Customers involvement in the service delivery

21
21 - 22
23 - 25
26
26 - 27
27

4.
4.1
4.2
4.3

Service Blueprint
Service encounters / moments of truth
Value of blueprinting
Learning form this exercise

28
29
29 - 31
31

5
5.1
5.2

Physical Evidence
Roles of servicescape play in this industry
Aspects of servicescape influencing the service delivery
process

32
32 33
33 34

6.
6.1
6.2
6.3
6.4
6.5
6.6
6.7
7.
7.1
7.2

Wild Card
Pricing
Promotion
Place
People
Process
Positioning
Distribution Process
Industry Section
SWOT Analysis
Porters Five Forces Model

35
35 - 37
37
38
38
38
39

8.

Conclusion and Recommendations

44

9.

Bibliography

45

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4-5

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40 41
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A Project Report on Caf Coffee Day


1. EXECUTIVE SUMMARY
ANALYSIS OF THE COFFEE BAR INDUSTRY
Coffee has been around in India since the 17th century. However, coffee drinking has
traditionally been largely restricted to domestic consumption, and mostly in the South Indian
states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee has been around in India
since the 17th century. However, coffee drinking has traditionally been largely restricted to
domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala
and Andhra Pradesh.
THE 7 PS OF MARKETING MIX
Product , price , place , promotion , process , people , physical evidence constitute the 7 Ps . All
the Ps are described in detail in the project.
SERVICE BLUEPRINT
Service blueprints need to describe time in a service. This includes the sequence of events of a
service experience, its durations and timings. A blueprint should graphically describe this time
element. A sequence of events - sometimes called use cases or flows - is relatively easy to
blueprint as it can be represented in a linear flow identifying user actions, service responses and
the touch points or interfaces that enable the service relationship. Sequences become challenged
when there are multiple options or directions and when the planned process goes awry.
SERVICES CAPE
Servicescape may be likened to 'landscape'. It includes facilities exterior (landscape, exterior
design, signage, parking, surrounding environment) and facilities interior (interior design &
decor, equipment, signage, layout, air quality, temperature and ambiance).

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A Project Report on Caf Coffee Day


Servicescape along with other tangibles like business cards, stationery, billing statements,
reports, employee dress, uniforms, brochures, web pages and virtual servicescape forms the
'Physical Evidence' in marketing of services.
Physical evidence consists of servicescape combined with the tangible elements, so servicescape
is a part of physical evidence.
SWOT Analysis
It tells about the strengths, weakness, opportunities and threats of the industry. The strengths and
weakness are internal and the opportunities and threats are external.
ANALYSIS OF CAF COFFEE DAY
Caf Coffee Day pioneered the caf concept in India in 1996 with the inauguration of its first
outlet in Bangalore. CCD saw the potential of the youth market and embarked on a dynamic
journey to become the largest organized retail caf chain with a distinct brand identity of its own.
Through the assignment, we would Study the marketing Mix adopted by caf mocha. Their
target audience and market positioning

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A Project Report on Caf Coffee Day


2. INDUSTRY ANALYSIS
In hospitality industry there is much kind of outlets like hotels and resorts, restaurants, bar,
coffee shop these are the place is serving food and beverage here I am going to give my research
about coffee shops which providing like hot and warm coffees and quick bites to the customers. I
did my research work on Indian coffee shop company who having more than 900 caf in 91
major cities in India and outside India.
The world coffee production in the coffee year 2016-10 is estimated to be 123.6 million bags
signifying a decline of over 4.5 million bags in the CY 2015-09 when production totaled at 128.2
million bags. This is revealed in a report of International Coffee Organization market report for
January 2010 excluding additional information that has to come from Colombia and Vietnam.
The ICO report also states of a significant fall in coffee production in Brazil - by about 14
percent besides production shortfall apprehended in countries like Cote d'Ivoire; Tanzania,
Uganda, Papua New Guinea, Vietnam, Mexico, El Salvador, Equador and Peru. The Colombian
production is unlikely to register worth mentioning increase. The over all world supply of coffee
is likely to be tight in 2010 due to low level of opening stocks as well.
Total world exports of coffee (2015 & 2016)
2015

2016

% Change

Colombian Milds

12219

9278

-24.07

Other Milds

22524

20861

-7.38

Brazilian Naturals

28724

30033

4.56

Robustas

34199

34518

0.93

Total

97666

94690

-3.05

Source: International Coffee Organization, Coffee Market report, January , 2010

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A Project Report on Caf Coffee Day


In the export front calendar 2016 closed with a decline of 3 percent at 94.7 million bags from
97.7 million bags in 2015. World consumption however is provisionally estimated at 130
million bags in 2015 from 128 million bags in 2007. Domestic consumption in exporting
countries was up at 36.7 million bags compared with 35.4 million bags in calendar 2007.
The Brazilian Coffee Industry Association expects 4.15 percent increase in world consumption
of coffee.
Indian Coffee Board puts country's coffee production at 2.90 tonne (Post monsoon estimation)
and 3.06 tonne (Post Blossom Estimation) respectively. For the present crop year beginning
October, the board has estimated an output of Arabica at 101,525 tonnes and Robusta 204,755
tonnes. Karnataka leads the country with 2.05 tonne (Post monsoon estimation) and 2.21 tonne
(Post Blossom Estimation) production followed by Kerala and Tamil Nadu. According to ICO
estimate, India produced over 3.1 million bags of 60 kgs each in 2016 compared with 3.3
million bags in 2007.Country's coffee exports during fiscal 2015-09 stood at 1.96 lakh tonne
signifying marked decline from 2.18 lakh tonne in 2007-08.
India's Coffee Production (In tonne)

State
Karnataka
Kerala
Tamilnadu
Non-traditional areas

2013

2014

2015

2016

206025

191575

183860

205700

59475

49000

57200

59250

18225

18100

16255

19350

4085

3175

4870

5185

190

150

115

115

288000

262000

262300

289600*

(Andhra Pradesh & Orissa)


North Eastern region
Total

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A Project Report on Caf Coffee Day


Post Monsoon estimates *
Source: Federal Ministry of Commerce, Government of India
India accounts for about 4.5 percent of world coffee production and the industry provides
employment to 6 lakh people. Among the coffee growing states, Karnataka accounts for 70
percent of country's total coffee production followed by Kerala (22 percent) and Tamil Nadu (7
percent). Europe accounts for about 70 percent of India's total coffee exports. Of this again, 70
percent is shipped via Suez Canal. Major Indian coffee importing countries include Italy,
Germany, Russian federation, Spain, Belgium, Slovenia, US, Japan, Greece, Netherlands and
France.

India's Exports of Coffee


Year

Quantity (In tonne)

Value ( In Rs crore)

2012

249029

2007.90

2013

218998

2046.29

2014

197171

2242.64

2015-16 (Upto March 8, 2016

181225

1944.98

Source: Federal Ministry of Commerce, Government of India

With a view to expand coffee cultivation, Coffee Board has been implementing developmental
programmes for coffee development in North Eastern Region and Non Traditional areas. During
11th Five Year Plan, Coffee Board has proposed to support coffee expansion programme taken
up by the Integrated Tribal Development Agency on 24000 ha. area in Andhra Pradesh and on
850 ha. area in North Eastern Region, which will facilitate export of coffee. As a part of export
promotion, the Coffees from different regions with their logos are promoted including the coffee
from the areas under Integrated Tribal Development Agency, as Araku Coffee. Constant
endeavour is being made by the Government to help the coffee growers to ease their bank debts.

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CAF COFFEE DAY


Indias favourite coffee shop, where the young at heart unwind.
Caf Coffee Day is a part of India's largest coffee conglomerate, Amalgamated Bean Coffee
Trading Company Ltd. (ABCTCL), the first to roll out the coffee bar concept in India with its
first caf in Bangalore. Its a Rs. 750 crore, ISO 9002 certified company. With Asias secondlargest network of coffee estates (10,500 acres) and 11,000 small growers, making its holder the
largest individual coffee plantation owner in Asia, this in addition to being India's only vertically
integrated coffee company. Coffee Day has a rich and abundant source of coffee. This coffee
goes all over the world to clients across the USA, Europe and Japan, making us one of the top
coffee exporters in the country.
We all know that Caf Coffee Day is one of the most popular hangout places. The coffee joint is
very famous among youngsters. Coffee is one of the favorite beverages and has become more
appealing because of its variety.
Coffee has been around in India since the 17th century. However, coffee drinking has
traditionally been largely restricted to domestic consumption, and mostly in the South Indian
states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Coffee has been around in India
since the 17th century. However, coffee drinking has traditionally been largely restricted to
domestic consumption, and mostly in the South Indian states of Tamil Nadu, Karnataka, Kerala
and Andhra Pradesh.
India ranks sixth as a producer of coffee in the world accounting for 4.5% of the global coffee
production. India has about 170,000 coffee farms cultivating around 900,000 acres of coffee
trees. India is the largest producer and consumer of milk in the world with 98% of milk being

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A Project Report on Caf Coffee Day


produced in rural India. Coffee consumption in India is growing at 6% per annum compared to
the global 2% plus.
Caf Coffee Days menu ranges from signature hot and cold coffees to several exotic
international coffees, tea, food, desserts and pastries. In addition, exciting merchandise such as
coffee powders, cookies, mugs, coffee filters, etc. is available at the cafs.
It was in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee
estates, which yielded rich coffee beans. Soon Amalgamated 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. Coffee Day's two curing works at Chikmagalur and Hassan cure over 70,000 tonnes of
coffee per annum, the largest in the country. Coffee Day has a well-equipped roasting unit
catering to the specific requirement of the consumers. The process is carried out under the
control of experienced personnel to meet highest quality standards. The most modern technology
available is used to maintain consistency and roast the coffee beans to the demanding
specifications of the discerning coffee consumers.
Caf Coffee Day (CCD) pioneered the caf concept in India in 1996 by opening its first caf at
Brigade Road in Bangalore. Today, more than a decade later, Caf Coffee Day is the largest
organized retail caf chain in India with cafes functioning in every nook and corner of the
country. Drawing inspiration from this overwhelming success, Caf Coffee Day today has cafes
in Vienna, Austria and Karachi. Whats more, new cafes are planned across Middle East, Eastern
Europe, Eurasia, Egypt and South East Asia in the near future.
In October 2016, CCD unveiled a new brand logo, a Dialogue Box, to weave the concept of
Power of Dialogue. In accordance with this new brand identity, CCD planned to give all its
existing outlets a new look by the end of 2016. Cafs would be redesigned to suit different
environments such as book, music garden and cyber cafes suitable for corporate offices,

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university campus or neighborhood. The change plan included new smart menu, furniture design,
among others.

VISION:
To be the only office for dialogue over a cup of coffee
MISSION:
To be the best Cafe chain by offering a world class coffee experience at affordable prices.
The offerings are designed in such a manner that one cannot be spelt without the other; there are
the hot coffee or cold coffee combinations with delectable desserts and special coffee and eats
combinations for even a group of four friends.
Coffee Day Comprises of the following Sub Brands
1. Coffee Day - Fresh & Ground
2. Caf Coffee Day
3. Coffee Day Vending
4. Coffee Day - Xpress
5. Coffee Day Exports
6. Coffee Day - Perfect
Pioneers of the Caf Concept in India with 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 i.e.; Coffee. Essentially a youth oriented brand with majority of
its customers falling in the 15-29 year age bracket .Each caf, depending upon its size attracts
between 400 and 800 customers daily. It is a place where customers come to rejuvenate
themselves and be themselves.
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Key Features

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.

Essentially a youth oriented brand with majority of its customers falling in the 15- 29
year age bracket

Each caf, 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:

1 . Affordable Price
2 . Coffee Winner of Platinum, Gold, Silver and Bronze medals at the India

Barista

Championship 2002

2.1 CURRENT TREND IN INDUSTRY


Growth of Caf Industry in India
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. 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.
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 cafs, to all sections of society.
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The drink has now become more of a concept than merely a drink itself. The last decade
witnesses the growth of numerous coffee pubs in the country. A number of coffee caf owners
tried to westernize the taste in contrast to the filter coffee.
Now, large retail chains like Qwikys, Barista, and Caf Coffee Day have opened up around the
country. The concept of a caf today is not merely about selling coffee, but about developing a
national brand. Retail cafs now form a multi-crore industry in the country, and have huge
potential for growth locally, and internationally.
The more than US $150 million organized coffee retail business in India is coming into its own,
fed by rising incomes and a fast-food sector that is growing at 40 per cent annually. Coffee
consumption has increased from 55,000 tons to 80,000 tons after decades of stagnation. Industry
sources say the niche coffee retail format is growing at 10-12 per cent a year, with branded
coffee accounting for 53 per cent of sales, unbranded 40 per cent and cafes 7 per cent.
MARKET SIZE IN US
Snapshot: Coffee Shop
Retail Sales Estimates Year End 2016 Coffee Cafes: (beverage retailers with seating) 1,250
locations averaging $550,000 in annual sales = $ 6.12 billion or adults who have visited a
coffeehouse in the past week:
Average weekly spending $5 or under: 41%
Rarely or never purchase food: 49%
Consume the beverage off-premises: 52%
Demographics
Seventy-seven percent of U.S. adults drink coffee daily, and gourmet coffee consumption has
risen in the past five years. According to Scarborough Research, a market research firm that
studies media, lifestyle, and shopping patterns in the United States, in October 2015, 12 percent
of adults have been to a coffee shop in the past month. Although popularity of coffee shops has
recently spread across the nation, the West coast has the most coffee shop patrons. The ideal
ratio of coffee shops to residents in a particular area is 1:10,000
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2.2 ROLE OF TECHNOLOGY


Technology plays a major role in Caf Coffee Day because all the work like billing, stock
maintenance, inventory control, etc is done with the help of computers.
For making the coffee and tea they require machines, which give an edge to the service provider
over local players like the small tea stall or coffee stall.

2.3 MAJOR PLAYERS IN THE INDUSTRY


Following are the major players in coffee shop industry:
A. Barista Lavazza
One of India's largest franchised chains of coffee bars, the Barista Lavazza coffee
company operates around 205 outlets across India 15 crme lounges and the rest
espresso coffee bars.
It plans to open 300 new stores over the next three years and has begun aggressively
marketing its products outside Indian borders into neighboring countries. Considered
the Starbucks of the East, Barista offers many of the same menu items like espresso,
lattes, cappuccino and various pastries, in addition to basic coffee. Despite being
Indian, Barista sticks closely to its Italian roots by serving Italian coffees exclusively.
B. Costa Coffee
British coffee retail chain Costa Coffee launched its outlet in New Delhi,
becoming the first international coffee chain to start operations in India in
September 2005.
The chain is currently operational with 36 outlets and expanding aggressively to
tap this potential market.
C. Caf Mocha
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It was started by a Mumbai based entrepreneur Riyaz Amlani, who has a long
experience in the hotels and restaurants business. This store is strikingly different
from others, they love being over-the-top and thus its a place that either you love
it too much or find it Over the top. Studying the marketing Mix adopted by caf
mocha. Owned by Impresario Entertainment & Hospitality Pvt. Ltd.
Mocha opened its doors at Churchgate (Mumbai) in December 2001
15 operational outlets across the country and its own central kitchen
Future plans for Singapore, Dubai and New York and Chicago.
Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with their multiproducts offering outlets like Reliance Timeout and Desi Caf respectively.

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2.4 COMPETITION
Barista is the major competitor
Barista coffee was establishes in 1999 with the aim of identifying growth opportunities in the
coffee business. Increasing disposable incomes and global trends in coffee indicate immense
growth potential in one particular segment.
More significantly, they believe they have been quick to spot a latent need waiting to be trapped:
Coffee lovers seek a complete experience. One that combines intelligent positioning with the
right product Mix and carefully designed cafs. In other words, customers seek an experiential
lifestyle brand. 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 is currently experiencing phenomenal growth.
With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth opportunities
in Asia, making it highly competitive international brand.

Marketing Mix
Price Mix
Barista has a Skim Pricing Policy. They began with a higher price, and skimmed the cream for
the market. With the sudden spurt of growth in number of outlets, came the benefits of
economies of scale. Because of this, they have been able to gradually lower their prices, and
appeal to different segments of their target market. Currently, their prices are the lowest they
have ever been, and they can competitively match their prices against Caf Coffee Days prices.
The prices are constantly changing though, and the last 1-year has seen 3 changes (mostly
reductions) in prices. This gradual price reduction meant that Barista could maintain its profitmaximization policy until it could earn large cost savings because of the benefits of high volume.
The main factors that affect their pricing are their cost of goods sold. The costs are quite high
because imports a majority of its products and product. Considering that Barista is trying to
target a market whose age range is between 18 and 60 years, a pricing policy appealing to this
segment is difficult. Extremely low prices act as a deterrent to some customers who might regard
it as an indicator or quality, while very high prices cannot be afforded by most of the youth. But
since Baristas current consumer profile is quite young, their prices are mostly inexpensive, and
at par with their competitors.
Process Mix
The order and delivery process at Barista is based on self- service, where a customer goes up to
the counter to place his order, and goes back to the counter to pick his delivery once it is
prepared.

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Product Mix
Coffees & Teas

Refreshing
Alternatives

Eatables

Coffee with Milk


Cappuccino
Caffe Mocha
Caffe Latte

Smoothies
Guava
Mango
Grape

Black Coffee
Espresso Italiano
EsperanoTM
Americano

Granitas
Blue Curacao
Lime Ice
Mixed Fruit Tango
Guava Crush
Milk Based

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

Dessert Coffees
Latte Bianco
Caffe Borgia
Cold Coffees
Brrrista
Brrrista Frappe
Brrrista Blast
Iced Caffe Mocha
Coffee Add-ons
Various Flavours
Chocolate Fudge
Whipped Cream
Espresso Shot
Ice Cream Scoop

Pastas

Strawberry Freeze
Mocha Freeze
Icepresso
Iced Tea

Tangy Tomato Pasta


Creamy Chicken Pastas

Lemon
Peach

Assam
English Breakfast
Darjeeling
Earl Grey
Desserts
Walnut Brownie
Mocha Excess
Chocolate Excess
Dark Temptation
Chocolate Mousse
Chocolate Chip Muffin
Almond Raisin Muffin
Apple Cake

Other Drinks
Ginger Fizz
Kinley Water

HOT TEA

People Mix
The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They
ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of
life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laidback feeling of the caf.
Promotion Mix
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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. 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.

a) Logo, Colors, Images:


Barista, since the beginning has looked to use colors in its caf interiors, logos and images; to
project a warm, earth glow, synonymous with coffee. Barista uses shades of Orange & Brown
to good effect to promote its laid- back atmosphere. The logo is a combination of Brown,
Orange and Light Yellow; with the word Barista written in an upward curve, and the word
Coffee underneath. A simple logo that perfectly expresses Baristas brand image: A traditional
caf for coffee lovers.
b) Dcor and Architecture:
Baristas internal dcor and architecture expresses the simplicity you would normally associate
with traditional cafs. The furniture is made of light shades of wood, and there are comfortable
sofas in bigger cafs. The walls are shades of orange, with various photographs of the love for
coffee spread around each outlet.
c) Literature:
The literature provided by Barista is indicative of its brand image. The menus, posters, pamphlets
are all traditionally designed, with a classic and simple look. One aspect of particular note is their
magazine, which is privately circulated in the cafs. The magazine encourages customers write,
draw, make etc anything creative; and this is then published in the magazine. The magazine not
only provides an avenue for advertising, but also an opportunity for Barista to express its brand
image Barista currently carries out mass promotion campaigns. This is mainly in the form of
promotions in the Press, TV and Radio Medias. At present, they do not rely heavily on
advertising, but rely more on sponsorships and strategic alliances with other corporations. Barista
also takes part in various sales promotion activities to help increase sales at their outlets.
d) Sponsorships:
Barista sponsors various events and festivals, which provides them valuable promotion directed
at strategic markets. The sponsorships are mainly in kind, although major events are sponsored in
cash also.
e) Sales Promotion:

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Barista uses a special Barista Coffee Card for its sales promotion activities. The Barista
Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven. It
is available to all Barista coffee regulars. No membership fees, no references required. Fill out
the card and you are a member. As a Coffee Card holder, you earn one stamp on the card every
time you purchase a beverage. Simply present the card to the cashier when you place your order
at any of their outlets. Once you have collected seven stamps, you can hand over the card to
receive your complimentary hot beverage. Barista hopes this card can help drive sales growth,
and increase customer retention
f) Collaborations:
Barista has entered into special collaborations and alliances with various partners for co marketing brands. For example, Barista entered into a deal with Leo Mattel toys to provide the
popular board game Scrabble at every Barista outlet across the country .This is an ideal alliance
for both the organizations, because it provides Leo Mattel with an important avenue for
promoting their product, and it provides Baristas customers an added attraction for spending
more time at Barista outlets .Barista has also entered into partnerships with various movies, for
promotions through Barista, and recently, they tied up with Star World for its Absolutely
Everybody campaign.
Place
This is a prime factor in determining the success of a retail chain. However, Barista Coffee has
adopted a top down approach, wherein they first identify the cities and then decide on precise
locations within its limits .While selecting a city Barista has devoted substantial management
time and effort in zeroing in on the cities where they are now situated. The selection of the cities
was based on the following criteria.

Sizeable population of executives, students and families in SEC A & Barista category.
High disposable income with people looking for new vistas in leisure and lifestyle
oriented concepts.
High level or organized retail activity.
Rapid socio- economic development.
Level of commercial importance (Industrial cities, state capitals etc.)
Number of educational establishments and opportunities available for employment.

On the basis of the above criteria, they had initially targeted cities like Delhi, Mumbai,
Bangalore, Chennai and Hyderabad. Chandigarh and Ludhiana were later added due to tie- ups
with Planet M and Ebony to set up store-in- stores at their outlets. They are also pursuing an
equally aggressive international business expansion strategy. They have over 50 overseas
locations presently under their consideration .They have already done their groundwork in terms
of getting brand and name registrations in over 30 of these locations.
To facilitate their global expansion, they plan to work with strategic partners, who share the same
vision of expanding and promoting the brand worldwide. Currently they have opened new outlets
in Sri Lanka and Dubai as a part of their international strategy.
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2.5TANGIBILITY SPECTRUM

3. TYPICAL SERVICE OFFERING


3.1 CUSTOMERS EXPECTATIONS
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When a customer visits a coffee shop they expect a good experience. They want the service
provider to provide them with the best services they have. From the chart given below we can
easily make out that the customers gives high preference to the quality of services and they give
least preference to the pricing. The major reason behind customer giving least preference to the
price is because they want a good experience which is beyond price.

From the above chart one can easily make out that 42% people consider the quality of
services offered by the coffe shop before going to it.
The next important factor considered by customer before choosing a coffee shop is the
ambience. They want the coffee shop to be a cool hangout place where they can hangout
with friends and do some combined studies

RATING TO CAF COFFEE DAY BY THE CUSTOMER ARE SHOWN IN


THE CHART BELOW

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A Project Report on Caf Coffee Day

From the chart above one can easily make out the following things regarding to Caf Coffee
Day:1. Customers grade Caf Coffee Day very good when it comes to ambience.
2. Customers grade Caf Coffee Day good when it comes to pricing.
3. Customers grade Caf Coffee Day very good when it comes to service offered.
4. Customers grade Caf Coffee Day very good when it comes to quality of product.
5. Customers grade Caf Coffee Day very good when it comes to Location.
Which simply proves that Caf Coffee Day is one of the best hangout place for the youth who
consider the factors mentioned above while selecting a Coffee Shop.

3.2 BUNDLE OF BENEFITS


Following are the benefits that a customer can get from Caf Coffee Day:
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1. Benefits through pricing of products
Considering that Cafe Coffee Day is trying to target a market whose age range is between
15 and 60 years, a pricing policy appealing to this segment is difficult. The pricing is
extremely low and act as a deterrent to some customers who might regard it as an
indicator or quality, while very high prices cannot be afforded by most of the youth. But
since Cafe Coffee Days current consumer profile is quite young, their prices are mostly
inexpensive, and at par with their competitors.
2. Benefits through different product line
They are Coffee Day's most unique aspect is that it grows the coffee it serves in its cafes.
Coffee Day has a well-equipped roasting unit catering to the specific requirement of the
consumers. The process is carried out under the control of experienced personnel to meet
highest quality standards. The most modern technology available is used to maintain
consistency and roast the coffee beans to the demanding specifications of the discerning
coffee consumers. The coffee beans are supplied to all the cafs from Chikmagalur. The
eatables at Caf Coffee Day are catered by different vendors: example: ice creams are
catered by Cream Bell, Milk by Amul and samosas by Patsiers Gallery. Caf Coffee Day
also sells merchandise through its stores. 5 per cent of the revenue comes from sale of
merchandise. Caf Coffee Day product Mix constitutes a wide range of products that
appeal primarily to Indian coffee and snack lovers. Products have a decided Indian taste
to it - be it food or coffee. Most of the eatables have been adopted to meet the Indian taste
buds like samosa, biryani, masala sandwich, tikka sandwich etc. Thus they have been
trying to capture the Indian taste along with classic coffee. The best selling item in
summer is frappe, which is coffee and ice cream blended together. The young people
favor it. In winter it is cappuccino. Their merchandising includes funky stuff like t-shirts,
caps etc.
Coffee and Tea
Hot Coffee
Espresso

Refreshing Alternatives
Granitas
Blood Orange

Eatables
Melting Moments
Banana n Walnut Cake

Espresso Americano

Cool Blue

Banana Chocolate Mousse

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A Project Report on Caf Coffee Day


Macchiato

Pineapple Crush

Banana Caramel pie

Cappuchino

Emerald Ice

Chocolate Doughnut

Caf Latte

Ruby Surprise

Cookies

Chococinno

Marble Cake

Caf Mocha

Pineapple Getaux

Irish Coffee
International Coffee
Colombian Juan Valdez

Smoothies
Mango Colada

Chocolate Cake
Ice Creams
Vanilla

Ethiopian Qahwah

Strawberry Colada

Chocolate

Kenyan Safari
Cold Coffee
Sweet Mint

Cremosas
Litchi

Seasons Best
Quick Bites
Samosa

Cold Sparkle

Ginger Spice

Puff

Brandied Banana

Pina Colada

Pizza

Tropical Iceberg

Croissant

Iced Eskimo

French Fries
Kathi Roll
Wraps
Biryani
Sandwiches
Kulcha
Burger
Pasta
Masala Sandwich

Coffee Add-Ons
Honey

Cool Refreshers
Fruit Juices

Flavoured Syrups

Mineral Water

Red Eye
Whipped Cream
Scoop pf Ice cream
Chocolate Sauce
Teas
Assam Tea
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Masala Chai
Lemon n Ice Tea
Kashmiri Qahwah
Apple n Cranberry ice tea

3. Benefits through Location


Cafe Coffee Day looks to cater to their target market with strategically located outlets.
Their outlets are generally located at High Street/ Family Entertainment Centers.
Considering their generic appeal, there are Cafe Coffee Day outlets in and around Malls,
Cinemas, Colleges, and Offices etc. This endorses their brand image of a caf that
appeals to coffee lovers of all ages.
4. Benefits through People
The people at Cafe Coffee Day are characteristically trained to be Pleasant, Polite and
Positive.

3.3 TYPICAL SERVICE PERFORMANCE OF FIRMS

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A Project Report on Caf Coffee Day

From the above chart one can easily make out that the major competitor to Caf Coffee Day is
Barista. Caf Coffee Day is facing huge competition from Barista as both of the service
providers are targeting the youth segement.

3.4 SERVICES QUALITY DIMENSIONS


Reliability
It is the ability to perform the promised service dependably and accurately. Each and every
coffee shop (local one or International brand) promises best taste in terms of Coffee. These
promises should me met accordingly in each and every aspect like quality & quantity.
Assurance
Assurance positioning would have to be backed up by evidence of the knowledge and
thoughtfulness of administrators, faculty and staff and their ability to inspire trust and
confidence.
It includes the knowledge and courtesy of employees and their ability to convey trust and
confidence. The employees at Caf Coffee Day are well trained to tackle problems without
causing harm to customers.
Tangibility

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It talks about the furniture, menus, the interiors etc i.e. Physical facilities, equipment &
appearance of personnel.
Empathy
Caring, individualized attention the firm provides to their customers. The mission of Caf
Coffee Day is To be the best Cafe chain by offering a world class coffee experience
at affordable prices. This statement proves that they want to serve the target market i.e. the
youth with full services that they want at an affordable price.
Responsiveness
Willingness to help customers and provide prompt service. Employees in Caf Coffee Day
are not quick to respond to the queries of their customer since the working staff is less in
number. But still they somehow manage to respond to customers as per their demand.

3.5 CUSTOMERS
DELIVERY

INVOLVEMENT

IN

THE

SERVICE

In Caf Coffee Day service Customer involvement in the service delivery does not exist as
everything is done by the staff. From taking the order till delivery of the order, whole process is
taken care by the staff.

4. SERVICE BLUEPRINT

4.1 SERVICE ENCOUNTERS / MOMENTS OF TRUTH


When the customer first enters the restaurant he can find AD posters on the front glass of
the Cafe Coffee Day.
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After entering into Cafe Coffee Day, customer is guided by an employee, where he is
provided with a menu card for the order. Here customer can feel the ambience and the
dcor of the restaurant. After giving an order to the employee, employee passes the order
to the front section of the kitchen. The employees in the front section would pass the
order to back-end kitchen where the order is prepaid. Parallely, employee would update
the billing machine. The prepaid order is then served to the customer.
After availing the services and the products of Cafe Coffee Day, customer would ask for
Bill. Employee would then give the updated bill to the customer.
Customer will pay the bill either through cash or through credit/debit card. After payment
is done the database of Cafe Coffee Day gets updated.
After payment of the bill the customer leaves the restaurant.

4.2 VALUE OF BLUEPRINTING

Following are the uses or advantages of having a blueprint for a service:


Providing a Platform for Innovation
First and foremost, service blueprinting provides a common platform for everyone customers,
employees, and managers to participate in the service innovation process. Blueprinting
provides a common point of discussion for new service development or service improvement (a
picture is worth a thousand words). The service blueprint gives employees an overview of the
entire service process so they can gain insight as to how their roles fit into the integrated whole.
This reinforces the notion that the total service is greater than the sum of its parts. This benefit of
a clearer organizational vision is realized by virtually every firm that utilizes blueprinting.
Recognizing Roles and Interdependencies
The process of blueprinting and the document itself generate insights into various role and
relational interdependencies throughout the entire organization. The customers actions and
interactions are highlighted, revealing points at which he or she experiences quality. The
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A Project Report on Caf Coffee Day


blueprint reveals all of the touch-points that are critical in meeting customer needs and helps in
identifying likely points of service failure.
Utilizing the visual language of service blueprints puts everyone involved in the service design
process on the same page, creating more communication efficiency and informational precision
during the typically fuzzy front end of the service development process.
Facilitating Both Strategic and Tactical Innovations
Service blueprints can be modified to suit any level of analysis desired. The methodology has
been used to improve macro- and micro-level processes, facilitate strategic and tactical decisionmaking, as well as design complex and simple services with high and low levels of divergence.
Managers at all levels respond favorably to service blueprinting when they are introduced to it in
workshops and seminars.
Transferring and Storing Innovation Knowledge
Service blueprints can be printed out or be stored electronically and made available to everyone
involved. Blueprints being developed can be posted on a collaborative website, providing all
participating parties with access to an editable form of the document. Suggestions and edits can
be posted, which can then be further discussed, blogged about, incorporated or nixed. In fact, a
great deal of the entire blueprinting process can be done remotely, or virtually.
Designing the Moments of Truth
Blueprinting promotes a conscious decision on what consumers see and which employees should
be in contact at each moment of truth.
In many services it is relatively easy to decide which elements of the service should be provided
in view of the customer and which elements should be performed behind the scenes, or
backstage. For instance, at a hotel, housekeeping may provide turn down service in the presence
of a customer, but the laundry is clearly a housekeeping activity best performed backstage.

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A Project Report on Caf Coffee Day


Clarifying Competitive Positioning
Service blueprinting allows firms to clarify competitive positioning by facilitating the
comparison of the desired service and actual service, or company and competitor processes.
Mapping dual processes for the identification of key service quality gaps is a highly useful
application of blueprinting. This is not surprising, given firms continuous efforts to position
their service offerings correctly in the highly competitive global marketplace.
Understanding the Ideal Service Experience
We also perceive service blueprinting as being applicable within the realm of market research in
understanding and designing ideal service experiences. For instance, brands undergoing
repositioning often seek information regarding customer perceptions of what an ideal brand
within a given product or service category would look like. Customers are asked to identify
where such a brand would be positioned along key attributes or dimensions. For services, it is
often useful to have customers identify the ideal service process for a given service category.
Service blueprinting can help market researchers overcome the limitations inherent in asking
customers to describe such a service by using words alone. The service blueprint can provide a
means for service brand managers and service designers to view and compare the customers
ideal service, the firms actual existing service, and any number of competitors service offerings.

4.3 LEARNING FORM THIS EXERCISE


This exercise has helped me to understand the whole process about how the work is carried in a
coffee service provider. I was able to understand the importance of service blueprint. Because of
this exercise I was able to understand the concept of service blueprint in detail.

5. PHYSICAL EVIDENCE
1. Dcor & Architecture
Caf Coffee Day had gone in for image change and revamping of interiors in the last quarter of
2001. Caf interiors have been given a whole, new look. In a change from the largely wood and
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A Project Report on Caf Coffee Day


granite based interiors, there is more of steel and lots more colour now. The young colours of
today, lime green, yellow, orange, and purple predominate. These colours are unified and used in
all the outlets and stores of Caf Coffee Day.

2. Literature
The literature provided by Caf Coffee Day is indicative of its youthful image. The menus,
posters, pamphlets are all designed to attract young and young at heart. They also have their
magazine called as Caf Beat, which is published monthly at their Bangalore head office and
distributed throughout the branches.

3. Dress Code
The dress code is black dress with the logo of Caf Coffee Day on one side. This is also is one of
the evidences.

5.1 ROLES OF SERVICESCAPE PLAY IN THIS INDUSTRY


The environment in which the service is assembled and in which the seller and customer
interact, combined with tangible commodities that facilitate performance or communication of
the service- Servicescape
By Booms and Bitner
A servicescape is not a passive setting & it plays an important role in service transactions. An
evaluation of the roles they have in service encounters will reveal how important it is to design
an appropriate servicescape.

Below diagram shows the importance of Servicescape / Physical Evidence in terms of coffee
retailing industry:

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From the chart given above one can easily make out the the following anayses:When it comes to giving highest priority, majority of the people would look for Quality,
ambience and physical evidence. Where as the other factors do not affect much.
Therefore it clearly proves that better services backed up by good servicescape is one of the
most important aspect in terms of attracting customers, when it comes to Coffee Retail
Industry or any fast food retailing business.

5.2 ASPECTS OF SERVICESCAPE INFLUENCING THE


SERVICE DELIVERY PROCESS
From customer Point of view:A. Exterior and Interior Design
B. Ambience
C. Food(quality, quantity & variety )

From the service providers point of view:-

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A Project Report on Caf Coffee Day


1. Logo, Colors, Images
Caf Coffee Day has used bright red and green colors in its logo. RED stands for leadership and
vitality. It also stands for passion ( for coffee). The WHITE SWIRL signifies purity of
purpose, invigorating properties of growing coffee. The GREEN stroke harks back to their coffee
growing heritage and the coffee plantations that they own. It signifies 125 years of coffee
growing heritage of this vertically integrated group. Caf is noticeably larger than the rest of the
text inside the logo box. This denotes that Caf Coffee Day pioneered the caf concept in India
way back in 1996. Caf Coffee Day would like to own the word caf in the minds of its
customers.
When one thinks of a caf its got to be Caf Coffee Day. The font used for Caf is called
SLURRY. The font looks as though the letters have congealed out of a liquid. It gives the
impression that the word is still forming itself and evolving into something new and something
better constantly. This is the characteristic of Caf Coffee Days customers and this is the
characteristic that the brand too wants to adopt. The upward SWIRL inside the logo box stands
for the invigorating and uplifting nature of coffee and the ambience at Caf Coffee Day.

2. Dcor & Architecture


Caf Coffee Day had gone in for image change and revamping of interiors in the last quarter of
2001. Caf interiors have been given a whole, new look. In a change from the largely wood and
granite based interiors, there is more of steel and lots more colour now. The young colours of
today, lime green, yellow, orange, and purple predominate. These colours are unified and used in
all the outlets and stores of Caf Coffee Day.

6. Wild Card
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6.1 Pricing
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.20 to Rs.200. 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 any thing else.

From the pie diagram above one can easily make out the consumer is ready to spend Rs . 100
200. So from this one can make out that Caf Coffee Day need to keep the prices low inorder to
cater the current segement.

6.2 Promotion
Caf Coffee Day does not believe in mass media promotions. But they are involved in all the
areas of serious consumer passion.

Through television

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Caf Coffee Day held a contest around a very popular programme on Zee English called
Friends. All the six lead characters are shown often visiting a coffee shop and a lot of youth like
watching the programme. That is why they had a contest running where customers could win
Friends' merchandise. The linkage was that it is a youth based programme and it had a coffee
house.
They have tied up with Channel [V]'s Get Gorgeous contest. The reason being that a lot of their
young consumers are interested in careers. Modeling is a career that a lot of youngsters are
interested in and this was an excellent platform. They have also done promotion for History
Channel, where they have run promotion for Hollywood Heroes. They had asked a few question
and a lucky winner won a trip to Hollywood.

Ticket sales

Caf Coffee Day is involved in ticket sales in quite a few events, Enrique being one of them.
They were involved in WWE, Elton John, and Bryan Adams ticket sales. These acts are very
much appreciated by their consumers. It helps both the organizers as well as Caf Coffee Day.
Organizers need to tell people where the tickets are available and single Caf Coffee Day logo
says it all. From Caf Coffee Days point of view, they always ask for a certain amount of tickets
around which they have a contest. Couples can win ticket for free. This in turn raises the
awareness level as cafe staff approaches the consumers to inform them about the contest. There
is not a better publicity mechanism then the person who is serving you telling you about the
same.

Association with movies

Caf coffee day has been associated with a pool of movies to broadcast it self .Its main intention
is to increase the visibility rate within the crowd who are a part of the audiences. They have been
a part of movies like:

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Bas Yun Hi
Khakee
Main Hoon Na
Kyun Ho Gaya Na
Mujhse Shaadi Karoge
Lucky
Socha Na Tha
And a lot of Telegu & Tamil movies

Sales Promotion

Caf coffee day has been a very promising initiator than compared to its competitors for sales
promotion like:
Giving away Gifts during occasions e.g. valentine day
Offering Coupons
Caf Citizen card which allows regular members to avail discounts upto 20% and become
a member after a purchase amount of upto 2000 Rs.
Sugar free campaign which was mainly done to spread awareness of staying healthy and
fit by using the sugar free sachets
Discounts during festive times to members

6.3 Place
Caf Coffee Day looks to cater to their target market with strategically located outlets. Their
outlets are generally located in High Street/ Family Entertainment Centers. Considering their
generic appeal, there are Barista outlets located in and around Malls, Cinemas, Colleges, Offices,
etc. This endorses their brand image of a caf that appeals to coffee lovers of all ages.

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A Project Report on Caf Coffee Day


6.4 People
People at Caf Coffee Day believe that People are hired for what they know but fired for how
they behave. Motivation and personal skill are laid emphasize upon.

6.5 Process
The order process at Caf Coffee Day is based on services, where the customer can read the
menu and order. Whereas they have a flexible delivery process, where the customer can go
directly and take what they have ordered for or the order is delivered on his table.

6.6 Positioning
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 of 3 or more. The prices here are perceived to
be reasonable and it is a place where customers come to rejuvenate themselves and be
themselves rather than a place to be seen at vis a vis other cafes.

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6.7 DISTRIBUTION PROCESS

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7. INDUSTRY SECTION
FUTURE PLANS:-

1. Serving to the Air Deccan Consumers in air.


2. Planning to open cafes in Middle East, Eastern Europe, Egypt and South East Asia in
coming month.

3. In June, 2010 Cafe Coffee Day chain acquired Emporio for Rs 15 crore. Emporio is a
Czech Republic-based caf chain present at 11 locations. CCD plans to co-brand the
chain as Caf Coffee Day Emporio and later transition it to Caf Coffee Day. CCD is also
present in Vienna. The company wants to expand in the East European region, West Asia
and the Asia-Pacific region.

4. Cafe Coffee Day has around 821 outlets in 115 cities in India. CCD plans to take the total
number of cafes to 1,000 by March 2010 and double it to 2,000 by 2014. In October
2016, CCD announced that it will increase its international presence from the current six
outlets in Vienna and Pakistan to a total of 50 stores across Europe and Middle East in
two years time.

7.1 SWOT ANALYSIS


Strengths

Products of extremely good quality and taste.

Its a youth oriented brand , hence huge potential since 40 % population is below 20

It produces/grows the coffee it serves hence reducing the cost.

USP of brand is its considered a highly affordable brand.

India's largest retail chain of cafes.

ISO 9002 certified company.

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Weakness

Weak brand image and lacks strength to maintain brand loyalty.

Poor ambience and decor. Caf Coffee Day outlet served prime space for advertising and
promotions.

Many of the Caf Coffee Day stores are incurring loses due to wrong site selection.

Opportunities

Coffee cafe industry is one of the fastest growing industries in Asia.

More people like to visit Caf Coffee Day for informal meetings.

Caf Coffee Day has gone international, and is planning to attract many new international
markets, hence gaining international recognition

Threats

Competition with other coffee cafes like Barista, Mochas.

International Brands like Gloria Jeans, Coffee Bean & Tea Leaf and Illy Caf.

Other hukka parlours are also gaining lot of attention and preferred by young generation to hang
around which in turn is attracting the market captivated by Caf Coffee Day.

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7.2 PORTERS FIVE FORCES MODEL
Threat of new entrants
Threat of new entrants is high. As more and more international brands are looking towards India
as the new target Market. E.g.:

Gloria Jeans

Star Bucks

Illy Caf

Coffee Bean

Bargaining power of customers


Bargaining power of customers is high as more and more Cafes are coming. So Caf Coffee Day
needs to keep the prices as per customers. The price should satisfy the customer and attract them.
Below mentioned are three factors to be considered:

Price comparison

Variety of products

Service provided

Bargaining power of Suppliers


Bargaining power of suppliers is very low as Caf Coffee Day manufactures its own coffee bean.
More over the food items they buy from local suppliers are easily available and they can easily
change the suppliers as and when they want. Below are few factors mentioned regarding the
bargaining power of suppliers:

Food items obtained from local suppliers

Follows backward integration

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A Project Report on Caf Coffee Day

Coffee beans from its base in Bangalore

Threat of substitutes
Threat from substitutes is very high. As there are Hukka Parlours, Other fruit juice joints are
becoming the new junction for youth. E.g.: Ice tea offered by Costa coffee
Coffee offered by other competitors
Cold drinks served in stadium
Competition within industry
Competition within the industry is very high. As there are number of old players like Barista,
Caf Mocha, and Minerva are well established players in the market. Barista is also targeting the
same market segment i.e.; youth.

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8. CONCLUSION AND RECOMMENDATIONS


From the project we can conclude the following: That Caf Coffee day is planning to go international.
The other major things regarding service marketing is that customers give top priority to
the quality of the services / products and ambience.
The major competitor of Caf Coffee Day is undoubtedly Barista as both of the service
providers cater to same market segment India as they find India new target market.

Recommendations:1. To improve the interiors and dcor.


2. To have more and more tie-ups.
3. Only 50 % or less than 50 % people find Caf Coffee Day quality of service, ambience,
pricing and location to be very good which proves that still Caf Coffee Day need to do lot of
homework in order to satisfy its customers.
4. It should introduce a feedback form system in order to know about the customers satisfaction
level.

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9. BIBLIOGRAPHY
Sites Referred:shttp://www.casestudyinc.com/coffee-day-brand-strategy-india
http://www.pr-inside.com/india-food-and-drink-report-q-r2164244.htm
http://en.wikipedia.org/wiki/Coffee
http://www.cafecoffeeday.com/
http://www.barista.co.in/users/index.aspx

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