Submitted BY: Ansup Babu Kumaresh Roy Sadaseeb Choudhury Somdeep Sen

About The Industry Brief of the Company Purpose of the study Hypotheses Methodology Limitations Analysis and Findings SWOT Analysis Conclusions Annexure

The Indian RTD tea and coffee industry stands at an estimated Rs 1,100 crore The market is expected to grow to a whopping Rs 2,250 crore by 2017 Factors triggering growth: - Improving disposable income - Changing life styles - Increasing influence of western culture - Younger population Top three players: Cafe Coffee Day, Barista and Costa Coffee The competition in the market is likely to heat up with the entry Starbucks Source: Zee Business

Year of Establishment1996 FounderV. G. Siddhartha RevenueUS$450 million (As on 2012) No. of stores1481 ProductsFood & Beverage PriceDifferential Pricing Strategy DistributionStrategically located at six verticals PromotionSponsorships, collaborations, sales promotion, Cafe Coffee Day Card Other MerchandizeCoffee Makers, Coffee Mugs, Men/Women T Shirts, etc. Other Facts Market Share: 60% (as on 2012) Follows Backward integration Doesn’t go for franchising Division of the largest coffee conglomerate- ABCTL Source: Wikipedia & Hindustan times

To find out information about: Consumer Profile Brand Recall Customer visit details Customer Spending and consumption Pattern Customer Satisfaction

Mean age of the CCD store traffic ranges from years Café Coffee Day is perceived as a place to hang out with friends Convenience is one the most important factors influencing customer visits

Store Location Hazra: Near Asutosh college Bhawanipur: Near Forum Camac Street Total Sample Size Sample Size Break up Convenience Sampling People visiting CCD was interviewed through questionnaires to collect the primary data Internet had been used to collect secondary data

The study has been conducted over a very short duration Due to the short duration -The sample size is very small - Non Probabilistic method of sampling has been used Hence the findings should be taken as indicative

Mean age of the respondents: 26 years 52% of the respondents are female 50% of the respondents are students; rest are working professionals All the respondents have household hold income of Rs. 28,000 or more per month

Respondents (%)TOM Recall order 96 1.Café Coffee Day 2.Barista 3.Can't Say 4 1.Starbucks 2.Café Coffee Day 3.Barista All the respondents mentioned Café Coffee Day as well as Barista 4% of the respondents mentioned Starbucks- the newest entrant in the Indian coffee retailing

ValuedfP Value Pearson Chi- Square % of the respondents look at CCD as a place to hang out As per Chi-Square value there is no association between occupation & purpose of visit

Students prefer to visit the outlets at least once a week The ‘once in a two weeks’ bracket is popular among the working professionals

76% of the respondents prefer to visit the shop on weekdays

BrandsMeanDegree of Frequency Café Coffee Day3.9High Barista0.68Least Costa Coffee0- Others0- CCD has emerged as the most frequently visited brand Only 42% of the people have visited Barista None of the respondents have visited other competitor brand like Costa Coffee

Convenience & quality of service at a coffee shop has emerged as the most important factors It is a tribute to the strategically located outlets and highly skilled manpower of CCD FactorsMean ScoreDegree of importance Convenience5.00Most Quality of Service4.60Most Availability of preferred item(s)4.06High Ambience2.80Moderate

dfP Value Pearson Chi-Square % of the respondents have shown preference for combo deals As per chi-square test, such preference is same across both set of occupations

74% of the respondents prefer to spend Rs during their visit

BaristaCafé Coffee Day FactorsMeanSatisfaction LevelMeanSatisfaction Level Quality of Items4.4Very High4.4Very High Availability of preferred items4.3Very High4.4Very High Service Delivery Time4.0Very High4.4Very High Staff Behavior4.4Very High4.3Very High Value for Money2.0Low4.2High Store Ambience4.4Very High4.1High Overall Infrastructure4.3Very High4.3Very High Customers are highly satisfied with the offerings of CCD & Barista Value for money is an emerged as a difference maker Customers perceive CCD has a quality brand that provides value for money

Strength  High degree of brand awareness  Strong distribution network  Cost reduction through backward integration  Wide variety of product  Excellent service  Strong presence over the digital space Weakness Absence of franchising may deter expansion activities Opportunities  High growth potential of the RTD market  Merchandizing  Tapping the smaller towns  Focusing on the food segment  Globalization Threats Presence of strong competition (direct & generic ) Entry of Starbucks

High growth potential of he RTD tea and coffee market Target Group: Youth in the middle and higher income Perceived CCD as a place to hang out Most frequent visitors: The age bracket Most important factor influencing visit: Convenience Perceived as: -Place to hang out - Quality & value for money brand

In cases where 5-point rating scale has been used, the interval for the range in measuring the parameters has been calculated as : (5-1) / 5 = 0.8, as below ScoreDegree of 1 to 1.8Least 1.81 to 2.6Low 2.61 to 3.4Average 3.41 to 4.2High Above 4.2Most