You are on page 1of 6

The global economic downturn has initially created a negative impact in all over the world.

The economic downturn have mostly effected in United Kingdom and United States. As in result the companies of other countries which mainly get business from these countries were also affected by recession. According to the former finance mister of India Mr. P. Chidambaram that India was nowhere close to recession and was poised to record a healthy economic growth compared to other nations .Although the Indian companies which are having outsourcing business from the US they had to suffer for the economic downturn. The global economic downturn has also effected in the Hospitality industry. As in result it changed the consumer demand in this industry. Due to the economic downturn people are not spending money as they were before and they dont visit restaurants as they were before. The prices of raw materials are going high very frequently where as the source of income is same. The food which is used to be sold at Rs.200 now due to the high affordability of raw materials being sold at Rs 250 which is not accepted by the customers. In order to satisfy the customers the restaurant have decreased food portion by without increasing the price which help them to earn same profit. CCD which is also known as cafe coffee day is one of the popular restaurant in India. This is a place for the youngsters where they can hangout with their friends. This restaurant is highly accepted by the Indian food lovers. As India itself is very diverse in its nature, it reflects on the food lovers also. Caf Coffee Day is a place where customer gets value for money. Pricing has always being a sensitive factor for the Indian customer. Especially after recession it has become more sensitive among the customer. Now people are more conscious to spend money. In order to satisfy the customer in terms of pricing Caf Coffee Day serves Coffee ranges from Rs. 17 to Rs.95. In some outlets they have also provide 10% of discounts to the students because most of the students are depended on their family. According to the outlet manager of Gariahat Caf Coffee Day Kolkata People love to visit into our outlets because they gets good quality of product in reasonable price, and we have also observed that now a days people do not mind to spend Rs. 100 to 125 average on their food. In other

hand restaurant like Barista which used to be an expensive restaurant but now they have decreased their menu price in order to attract more customers. Their coffee ranges started with Rs. 49. Initially they have started with higher price of the product but now when they have realized they are not getting more customers compared to their competitors they have cut down their price. The price of the any product used to high in Barista is because the company imports majority of their product from outside. After the recession when the customers are not willing to spend money as they were before they have launched low price beverages and foods in order to attract customer. According to the Govind Apte.2004 Customers have limited budgets or funds availability, which reduces the purchases when the prices rise. The salt lake outlet of Barista situated at IT hub of the city. The people do not have sufficient time to eat in luxury but always want meals moneys worth. That is why now a days take away food is very popular which is much cheaper in price and this take away business helps normal customers to fill up their stomach at a very lower price. According to the author pricing is the most crucial and sensitive aspect for the customer. If the customer is not satisfied with pricing of the food the restaurant can not do better business. The recession has created a negative impact into the customers mind and as a result customers demands are changing. Now the customer expects good quality of food at lower price. If they are not satisfied then they would not further visit to the restaurant which would turn the restaurant in loss. Price is not only the important aspect; quality also plays a vital role. Quality helps to satisfy the customer, and when customers are satisfied then the organization earns more revenue. According to Garvin, D.1992, pg-126 Quality is an unusually slippery concept, easy to visualize and yet exasperatingly difficult to define.

According to the author quality is an intangible aspect, which can not be measured. The quality of the organization shows the firm growth and reputation of the outlet, so it seems easy to figure the quality concept but it is really difficult to describe quality, as it is intangible. Caf Coffee Day strongly believes in their service quality. According to CCD First impression is the last impression. According to the author Caf Coffee Day provides good type of service to their customers. They would not compromise with their service quality. There customers are satisfied with their service as 60 to 70 % of customers visits once in a week to their outlets. The service quality of Caf coffee day is focusing on the fast moving market and shows the variance of the services and tangible aspects. The quality checks are done very frequently as the service standards are measured before the product reaches the consumers. The Caf coffee day relies on the concept of cleanliness is next to Godliness, so the outlets are always clean offering hygiene for the consumers. The ambience joins along with the nature and quality of service offered to the consumers. The light vibrant colors attract more youngsters and generate profits for the outlets worldwide. According to the author service quality should not be compromised on as it is intangible and if a customer is not satisfied is lost for the outlets. The market nowadays is filled with competition and consumers would want to always have something different with exceeding service qualities (intangible). However Barista aims at darker shades and it offers games for the consumers like chess, word scramblers etc for the consumers to keep them busy and have a better meal. The music which is played in the outlets is soothing and is good for eating out for the customers. Where as in Mocha serve to the customers with warm and relaxed atmosphere. According to the author Mocha is just another home for the customer because of their service. Mochas services are casual and informal which gives a feel to the customers that they are at home. Every time the customer visits at Mocha they gained new experiences. In Mocha they serve food along with their lifestyle to the guest. According to Mocha A visit to Mocha is more of an experience. Its beyond just sipping delectable bites. Its about

taking time to savour the finer things in life. Thats why weve taken the time to select the fin est coffees from all over the world for you. According to the author marketing plays a vital role into Caf Coffee Days business strategies. They does lot of promotion in order to attract the customer. As Caf Coffee day mostly targets their market on the young generation, they also sells supportive product at reasonable price to attract more customer. The restaurant has also majorly targeted malls as because shopping malls are becoming a hangout place for the youngsters day by day. Recently they have launched Caf premier league which is a promotional contest and the winning participants would be getting free ticket passes of Indian Premier League matches. According to the author by doing this kind of promotional events Caf Coffee Day would be attracting the food lovers and the cricket lovers as well. Recently they have also tied up with Indian Premier League which would help the restaurant to earn more revenue. They also promote their brand into the social networking website such as face book, twitter and YouTube. The company had also done a customer loyalty program and they have observed that 60 70 % of customer very frequently visits into their outlets. The restaurant have also sponsors to the college annual fest, food festivals etc. The author also feels that their promotion creates a impact on the customer mind and force them to visit at their outlets. They have also targeted the multiplex movie hall such as Fame cinemas, Adlabs etc. By targeting this segments Cafe coffee Day would also attract the movie viewer in order to expand their business. According to the Caf Coffee Day president (marketing) Bidisha Nagaraj There three formats-movie, sports and books will attract all kind of customers. The average age of visitors to CCD currently ranges from 18 to 30. With the new formats, the company will cater to a varied customer base.(Source-www.drjamiepleasant.com)

In the other hand Barista is mostly targeting their market on 15 to 30 years of age and specially the students and the professionals. Recently Barista Lavazza launched cricket combos in their menu which offers variety of dishes at Rs. 109 onwards. According to the author in order to attracts the cricket viewers they have introduced combo meal at cheap price. People wont mind to spend 109 Rs. for a combo meal. In order to attract more customers barista does several activities during the festive or the occasion. During the Valentines Day they invent special menus for the couples which attracts more no of guest. Barista has in-house magazine Brew point which helps them to talk about their product and it would also help Barista to attract customer. They do sponsors for the various event and festivals to market their business. According to author barista mainly focuses on the young working professionals, students and family. By doing various promotions they reach their product to the customer. There festive menus help them to get more customer. In order to attract customer they also launched coffee blend with liquors which has already being accepted by the customers. According to author where as Mocha mainly focuses their market on artist and fashionable crowd. There hukkas are very popular among the youngsters. They display live hukka bars in weeding, birthday party (on request) which helps them earn more revenue. Because of their casual and trendy culture Mocha majorly do such kind of promotions which attracts the youth generation. They did musical talent hunt by Fever Fm in Delhi. This indicates they would also target the music freakers as well. They also promote their brand, new menus and information about them in Face book which is a social networking site.

Reference http://www.zeenews.com/business/economy/2008-1124/486100news.html (accessed on- 05.03.2010) http://www.scribd.com/suggested_users?from=download&next_url=http %3A%2F%2Fwww.scribd.com%2Fdocument_downloads %2F21657900%3Fextension%3Ddoc%26skip_interstitial %3Dtrue(accessed on 07.03.2010) http://www.indiaeatingout.com/2010/03/barista-lavazza-introducesmouth.html (accessed on- 07.03.2010) http://www.mocha.co.in/concept.html (accessed on -09.03.2010) http://www.cafecoffeeday.com/ (accessed on-09.03.2010) http://www.drjamiepleasant.com/linked/brandcase.pdf -18.03.2010) http://www.barista.co.in/users/index.aspx (accessed on- 20.03.2010) http://www.scribd.com/doc/27007610/Marketing-Mix-of-Ccd-Barista-ampMocha (accessed on -22.03.2010) http://www.barista.co.in/users/mediacoverage.aspx -22.03.2010) Apte, G. Services Marketing(2004), Oxford University, New Delhi, page no-130 Garvin, D. (1992), Operation Strategy, Text and Cases. Englewood Cliffs, Nj: Prentice Hall sited in Brown, S. Laming, R. Bessant, J. Jones, P. (2005), Strategic Operation Management, Elsevier ButterworthHeinemann, Burlington, second edition (accessed on (accessed on

You might also like