RESEARCH PROPOSAL ON SETTING UP

CAFÉ COFFEE DAY EXPRESS IN IBS BANGALORE

ORGANIZATION OVERVIEW

COMPANY PROFILE

Café Coffee Day is a division of India's largest coffee conglomerate, Amalgamated Bean Coffee
Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, A Rs. 750 crore ISO 9002
certified companies. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest
in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s
leading coffee exporters with clients across USA, Europe & Japan.

With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees
and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning the
entire value chain of coffee consumption in India.

Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at
Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to
the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure
(as opposed to instant coffee) coffee café culture in neighboring international markets grew, the
need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly
seen.

Recognizing the potential that lay ahead on the horizon, Café Coffee Day embarked on a
dynamic journey to become a large organized retail café chain with a distinct brand identity of its
own. From a handful of cafés in six cites in the first 5 years, CCD has become India’s largest and
premier retail chain of cafes with 821 cafes in 116 cities around the country.

Different divisions include:

Coffee Day Fresh n Ground (which owns 400 Coffee bean and powder retail outlets),

Coffee Day Xpress (which owns 895 Coffee Day Kiosk),

Coffee Day Take away (which owns 12000 Vending Machines),

Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division.
DIFFERENT CAFÉ FORMATS:

Music Cafés provide customers with the choice of playing their favorite music tracks on the
Digital Audio Jukeboxes installed at the café! There are around 85 cafes with such jukeboxes. 32
cafes also provide customers with the visual treat of watching their favorite music videos by
means of Video Jukeboxes.

Book Cafés offer the perfect solution to people who think that the coffee experience is
incomplete without browsing through the bestsellers or reading a classic. CCD’s book corners
accentuate the age-old combination of ‘coffee and books’. This exciting concept has been
successfully tested at 15 cafes in 12 cities across India and the numbers are set to grow
exponentially. CCD has tied up with English Book Depot; one of India’s leading book
distributors for placement and rotation of reading materials appealing to Café Coffee Day’s
discerning customers.

Highway cafés presents the traveler en route not only with good coffee and scrumptious snacks
amidst great ambience but also with clean restrooms to get rid of that weariness from the road!

Lounge cafés combine the style and luxury of a lounge with the lively ambience and comfort of
a café. With exquisite interiors, exotic menu and thematic music CCD Lounge offers a whole
new experience to the connoisseur while assisting the latter through its team of hostesses who are
poise and style incarnate and are looked upon as fashion icons.

Garden cafés combine the joy of rejuvenating amidst verdant landscapes and pots of coffee.

Cyber cafés combine the urge to surf, not to mention get connected through the internet while
enjoying perfectly brewed cups of coffees, both domestic as well as International blends!

PRODUCT OVERVIEW (Coffee Day Xpress)

• Cold coffees

• Hot coffee

• Iced teas

• Sandwiches

• Burgers

• Ice creams

• Milk shakes etc…

PROBLEM

PROBLEM BACKGROUND

The problems faced by setting up of a branded retail outlet like CCD express in a college are.

1. Competition form other competitors in like Nescafe and other unbranded canteen’s.

2. High input costs as compared to the competition from unbranded oferrers.

3. Relatively expensive offerings to the customers as compared with unbranded low-cost

competitors.

4. Target customer base is very small.

The factors to be considered while setting up the kiosk are:

a) Student Lifestyle (main factor)

b) Psychographic

c) Emerging Trends

d) Media Influence

e) Their likeness towards the products.

f) Lifestyle: A person’s pattern of living as expressed in his or her activities, interests, and
opinions.

BUISNESS RESEARCH PROBLEM

To analyze the consumption patterns of coffee within students and access the attitudes of

Students towards CCD. Then devise an effective targeting strategy towards students.

RESEARCH QUESTION / INFORMATION NEEDS

A) How many times do you consume coffee in a day

 B) Do you like going to CCD?

C) DO you think CCD provides Quality Products?

D) What is your average daily Expenditure on Coffee etc…?

E) Do you think CCD is EXPENSIVE?

F) Would you like to have a CCD in your college premises?

RESEARCH OBJECTIVE

To measure consumer attitudes and beliefs towards the CCD and its competitors. To know their
average daily expenditure on Coffee snacks etc. And asses future profitability of the CCD when
it opens up in the campus.

Hypotheses:

Hypothesis 1:

I expect to detect an interaction effect between the level of consumption of coffee and the
consumer emphasis on Quality. For high collectivism, I expect willingness to purchase coffee to
be higher for products with Quality emphasis than Price emphasis. For low collectivism, I expect
the reverse pattern.

Hypothesis 2:

It is also my prediction that there will be a small main effect of income and expenditure pattern
of the target consumer in general; high collectivism is associated with more willingness to
purchase with high income than low collectivism.

RESEARCH METHODOLOGY

The research methodology will be based on the qualitative analysis; the research would be
through questionnaires. This will be filled up by students who are the future target potential
customers for the café. The questionnaire is the best source which will provide us knowledge of
the attitudes and beliefs of the students.

Through the questionnaire we will be able to asses that the venture will be profitable or not. As
the source of information is primary it will be very reliable and will give an accurate outlook of
the student’s attitude to the proposer who would like to open up the café.

LIMITATION OF THE REPORT

It is very unlikely that the report would present an accurate detail of the consumption patterns of
coffee of the target base because the likeness of the youth changes very quickly these days. The
forecasting of the profitability the café in the future also cannot be totally relied upon because the
expenditure pattern of every student varies from time to time.

REFRENCES

http://www.cafecoffeeday.com/aboutus.htm

www.scribd.com/doc/4943160/CafA-Coffee-Day

http://en.wikipedia.org/wiki/Hypothesis