A PROJECT REPORT ON

Study the Impact on Retail

Indian Coffee Industry with the Advent of Coffee Shops.

(With Emphasis on Cafe Coffee Day)”

BY

Divya sharma

UNDER THE GUIDANCE OF

PROF. Parul gupta

SUBMITTED TO

“GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

THROUGH

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY

GREATER NOIDA-201306

(2008-2010)

1
 Acknowledgement

The project is the result of the efforts of many people. I would like to place on record
my sincere thanks to the various people for their assistance, guidance and co-operation
for the successful completion of this project.
First and Foremost, we owe our sincere thanks to army Institute of Management & technology
for all the support provided.
I also thank Prof. PARUL GUPTA, faculty guide, AIMT, GREATER NOIDA who has
sincerely supported me with the valuable insights into the completion of this project.

My overriding debts continue to the respondents without the time and sincere efforts of
whom the project would not have got its current shape. And last but not the least friends
and family members who have given us enough support, encouragement and blessings
without which the completion of this project was not possible.

2
 DECLARATION

I, Ms. DIVYA SHARMA do hereby declare that the project report titled “Study the Impact on
Retail Indian Coffee Industry with the Advent of Coffee Shops.(With Emphasis on Cafe
Coffee Day)” is a genuine research work undertaken by me and it has not been published
anywhere earlier.

Date:

Place

DIVYA SHARMA

AIMT, GREATER NOIDA

3
 EXECUTIVE SUMMARY

India has always been predominantly a Chai (Tea) drinking nation. However, there has
been a sudden change in this trend with coffee becoming more and more popular in
recent times especially among the younger population. The roadside Chai (Tea) thelas
(shops) outside colleges and offices have been replaced by hip coffee joints like Barista
and Café Coffee Day. The Chai (tea) that used to cost couple of rupees (5 cents) is
replaced by coffee costing something like Rs. 100.

India has now becoming one of the fastest growing coffee markets in the world.
According to Technopak Advisors, a global retail consultancy firm, the organized coffee
retail business in India is over Rs.8 billion ($17 million), and the potential for coffee
retail outlets are nearly 3,000

With the Indian middle class consumer ready to spend more and be a part of global
lifestyle and culture, coffee parlors in the country are on an expansion spree. From
small-sized coffee parlors to classy coffee lounges leading coffee retailers such as Café Coffee
Day, Barista, Costa Coffee and Coffee World have all been fighting hard to lure India’s growing
middle class.

Cafe culture is the latest trend to take the nation by storm. It joined the race simultaneous with
the satellite culture. Although not as big, the culture has nonetheless caught on the consumer
fancy and has spawned quite a few coffee chains. Amongst the big guns is Amalgamated Bean
Coffee Trading Company’s Cafe Coffee Day.
This study cannot be complete without looking at the ever changing habits and
preferences of consumers

The consumer profile in India especially is one with varied cultural and traditional
influences. In terms of coffee, southern India is supposed to be one of the major
consumers of same as compared to the Northern and other parts of India.

4
Filter coffee is the preferred drink in south while instant coffee in north. Price also plays
a major significant role in their purchase decision.

In this study i have looked at the consumer from the following aspects:
 Their Monthly disposable income
 Services offered to the consumer
 Quality of the Product
 Demographic segmentation of consumers
 Price
Consumer Perception towards such upcoming retail services in India is another
consideration.

Index

5
S. No. TOPIC PAGE

6
 Objective of the study 8
Section 1.LITERATURE RIVIEW
Indian coffee industry 10
About café coffee day 12
Positioning 14
Product analysis 17
Generic competition 18
Distribution strategy 19
Competitive strategy 20
Market expansion 21

Section 2.RESEARCH MEATHODLOGY

Sampling technique 22
Data collection 23
Sample size 25
Participants profile 26
Instrument 26
Statement validation 27
Section 3
Result and analysis 28
Section 4
Suggestions 40
Section 5
Conclusions 43
Section 6
References
45
Section 7
7
Appendix 47

8
 OBJECTIVE OF THE STUDY

The reason for selecting the brand ‘Cafe Coffee Day’ as the subject for research study
Was to understand how the various attributes present or absent, with respect to a product affects
the buying behavior of the consumers

The study was important to gain valuable insights into the behavioral patterns of the consumers
when it comes to buying a product which has a premium attached to it.
1. Is Price is the sole deciding factor while buying Coffee at Cafe Coffee Day.
2. Who are the loyal customers of Cafe Coffee Day.

It was also necessary to understand how people react to a product which has a snob value
attached to it and to understand the level of acceptability of a product when certain attributes are
available and when certain attributes are absent

The study was also undertaken to analyze whether there was any scope for improvement for the
subject under consideration and what can be done to improve its standing vis a vis its
competitors.

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 Section 1
Literature review

INDIAN COFFEE INDUSTRY

10
India ranks 5th among the top 10 countries of the world, accounting for 3 % of the total
world coffee production and exporting 80 % of the total produce.

It is also the 5th largest coffee producer. Being a traditional tea consuming country, the
average coffee consumption in India was quite low at 10 cups per person annually.
People in the Northern region preferred instant coffee in contrast to the people in the
south, who preferred traditional filter coffee.

Coffee, a household beverage confined to South India became quite popular in the late
1990s. The late 1990s saw the emergence of coffee chains. Moreover, there was a
transition from the conventional and out dated coffee house to a more sophisticated and
trendy coffee bars. In the late 1990s, non-traditional coffee retailing outlets like coffee
bar chains, coffee vending machines, and specialty coffee powder shops offered exciting growth
opportunities. They constituted 50 % of sales in the Indian Coffee Industry. The growth of these
specialty and gourmet coffee shops was a result of the economic and demographic changes,
higher disposable incomes, increasing number of working women, and increasing awareness and
exposure to global trends

Today's Coffee Drinker

Today's coffee drinker who visits the cafés is mainly the youth between the ages of 15
and 35. Students form a majority of the customer base for the cafés. Café Coffee Day
estimates that about 60% of the footfalls in its 300 plus outlets are those of students.
Barista estimates the same to be 40% in its outlets. Many of these youngsters consider a café as a
meeting place for discussing their projects or just interacting with other students rather than as a
place that just serves coffee. Many of these outlets have juke box music, wi-fi connections, and
even a cell phone charging station. It's a place where one can sit, talk, relax and incidentally
drink a cup of gourmet coffee with added flavors such as chocolate, caramel, and hazelnut.
Hence, many outlets serve more than just the various varieties of gourmet coffee. Since students
and youngsters in general prefer snacks rather than meals, cafés serve both Indian and
continental snacks. Costa Coffee as part of their menu is planning on introducing wraps and
actually adding an Indian flavor to suit the local palate.

11
Barista and Café Coffee Day have entrenched themselves into the minds of the consumer. They
have outlets at almost every street corner and concentrating more on areas, which are likely to be
visited by youngsters. It would be rather difficult to steal customers from the two leading chains
even though they might claim to offer a `smoother' blend. Pricing will be a major factor in this
regard. Starbucks and Barnie's might invite traffic into their outlets initially for the novelty
aspect but might not lead to a loyal customer base as consumers might realize that they are
paying a huge price for the `un-perceived' value of a `smoother' blend. Whether these foreign
players will really make inroads and what slice of the pie they will take is yet to be seen. It's
certainly worth the wait to see them make a mark in the mind of the consumer.

ABOUT CAFE COFFEE DAY

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 LOGO

Café Coffee Day is a chain of coffee shops in India. A division of Amalgamated Bean
Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Café Coffee Day. It
opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest café retail
chain in India - with 450 cafes across 69 cities in India.
The cafe chain has had much success riding, and to some extent creating, the cafe culture wave
that swept across metropolitan India following the BPO boom and the resultant increase in youth
spending power. With a hip, trendy image, the chain attracts a lot of young folk who work in
BPO businesses.
Its different divisions include: Coffee Day Fresh 'n' Ground (which owns 350 coffee bean
and powder retail outlets), Coffee Day Xpress (which owns 341 Coffee Day kiosks),
Coffee Day Takeaway (which owns 7000 vending machines), Coffee Day Exports and
Coffee Day Perfect (FMCG Packaged Coffee) division. It is now entering the European
market as well, making forays into Pakistan, Austria and Germany to set up cafes abroad.
One unique aspect of Café Coffee Day is that it grows the coffee it serves. The coffee
beans are produced in the golden soil of Chikmagalur.

Café Coffee Day has created its own identity. When one thinks of a café it’s got to be
Café Coffee Day. The font used for “Café” is called SLURRY. The upward swirl in the
logo depicts the freshness and the aroma it provides with every sip. It has emphasized
great attention in choosing the colours, which is young and vibrant.

The Tag line - “A LOT CAN HAPPEN” is aptly chosen for the brand whose major
objective is to cater the youth in the 15–29 year age bracket. The location chosen by Café Coffee
Day also ensures that people can rejuvenate and be themselves. It has a well equipped roasting
unit catering to the specific requirement of the consumers. There are Self service
counters/outlets, but table service is also provided.

13
Cafe Coffee Days after sales service team are well trained and certified to service a
wide range of manual, semi-auto to fully-auto Coffee machines and related equipments.

The vast knowledge and experience of Cafe Coffee Day Coffee team will enable them to serve
customers well. They have been able to secure a strong foothold in the marketplace by ensuring
customers are happy and need not look anywhere else for the best service and product range.
Customers have attested to the consistent flavors and aroma of premium quality Coffee and
comprehensive range of other products, made even better by prompt and friendly service.

Cafe Coffee Day Coffee Team is confident that being part of a global network which
will give them strength and diversity as they strive to improve to service customers
better.Café Coffee Day believes that - “People are hired for what they know but fired
for how they behave”.

POSITIONING

Café Coffee Day, at its inception in 1996 was the vanguard of a café culture
in India.

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At a time when the country was growing well economically and young India
enjoyed higher spending power, CCD as it is popularly known, started to set
up the first retail chain of coffee bars. It broke new ground in 1999 when the
entire market grew phenomenally with the entry of new players.
From the beginning, it positioned itself as being a coffee bar and has
maintained that positioning for a long time now. For a consumer, CCD
represents a “fun place” where one can go with a whole bunch of friends at
any time of the day and have a good time, over coffee.
In 2002, Café Coffee Day underwent a rebranding exercise through a change
in its logo. The earlier logo was a simple red square with a white streak
running across, and ‘Coffee Day’ written at the bottom. At this stage, CCD
was still perceived as a
South Indian coffee joint similar to the Coffee House in Kolkata, a place
where intellectuals meet and spend their time discussing issues. CCD saw a
latent market in youngsters, who were increasingly looking for a place to
spend time with friends and have fun. It then created an umbrella mother
brand, Coffee Day and four subbrands to represent the various activities. The
logo then incorporated red, white and green colours, a larger font and
emphasis on the word ‘Café’. According to the company, red signifies
leadership and passion and the white swirl stands for purity of purpose and
the feel of coffee. The new colour green endorsed the long heritage of CCD in
growing coffee.

ADVERTISING, SALES PROMOTION AND SEGMENTATION

15
STRATEGY

Café Coffee Day does not look at mass media as a viable area of advertising
or marketing spend. CCD is advertised through barter deals with other
brands for ground events

BELOW-THE-LINE ACTIVITIES

2003- Levi’s launched a new range of Low Rise jeans through a campaign
called ‘6” below’. CCD displayed POPs of Levi’s in all its outlets during the
campaign.
2004- The launch of Liril Orange soap by HLL was conducted in Café Coffee
Day.
2004- TVS Scooty tied up with CCD for events in the coffee bars and at
malls on Valentine’s Day in February.
2004- CCD was the official ground partner for the Channel V Get Gorgeous
contest

SALES PROMOTIONS

Merchandising- Every CCD stocks merchandise ranging from coffee mugs,

T-shirts, caps, bags, coffee filters, mints, different flavours of coffee powders,
tea and cream, wafers and biscotti’s. It also merchandises promotional
materials for other brands it associates with. When some brands are
conducting events for which passes are distributed or movie premiere tickets
are given out, CCD is an important hub for these activities as most of the
target market.

16
CCD’s Guide to Active Holidays- It is a travel guide focusing on adventure
sports and is available in the CCD outlets, for people seeking escapade from
monotonous life.
Café Beat- An in-house magazine which gives the entire low-down on
what’s happening in CCD outlets across the world. It describes experiences
of customers, celebrations in CCDs, and covers youth-centric topics like
movies, music, travel, lifestyle, e-dating, books and careers. Around 38% of
CCD
goers read Café Beat and some carry it back with them.
CCD has now tied up with WorldSpace and Microsense to provide satellite
connectivity in its outlets.

SEGMENTATION STRATEGY

Café Coffee Day has its main consumer base in the age group of 15-29
years. Its customers are mainly middle class and upper middle class youth
who are upwardly mobile. From the market, CCD seeks to target not just the
youth but anyone who is “young at heart”. More than 10% of their customers
are above 35 years of age. The evidence of the connect CCD has been able
to make, particularly among the youth, comes from the findings of Brand
Equity's Most Trusted Brands 2008 survey. In the food services category,
CCD ranks No 2, while McDonald’s stands at No. 3 and
Barista lags at No 5.

17
PRODUCT ANALYSIS

Café Coffee Day has different café formats across different cites. They can
be categorized into Music Cafés, Book Cafés, Highway cafés, Lounge cafés,
Garden cafés, and Cyber cafés. Every format has a different feel to it.
Also, Café Coffee Day changes or makes fresh additions to its menu from
time to time. This includes having specialty coffees from different countries,
exotic desserts and pina coladas. Since the target consumer is of an age
where one constantly seeks change, this makes sure that the consumer does
not get bored with a repetitive style and seeks new places to go to.
Café Coffee Day has changed its interiors twice since inception. First, during
its rebranding in 2002, where it brought in big photographic wall mounts of
coffee experiences, and yellow chairs and marble tables. In 2006, it again
changed its décor to cane chairs to give the outlets a more causal feel. Café
Coffee Day has hence constantly reinvented its look to keep up with the
ever-changing wants of its consumers.

Coffee Day Comprises of the following Sub Brands

Coffee Day - Fresh & Ground
Café Coffee Day
Coffee Day – Vending
Coffee Day - Xpress

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Coffee Day – Exports
Coffee Day – Perfect

GENERIC COMPETITION

DIRECT COMPETITORS:
Barista- This is the closest competitor to Café Coffee Day in the Indian market.
They target the same class of upwardly mobile youth and young professionals. But
Barista is often viewed as a place to unwind after a hard day’s work or an ideal
setting for some business meetings.
Café Mocha- This aims at providing a level of experience to the consumer which is
hard to imitate. Inspired by Morocco and Turkey, Mocha offers not just coffee but
also sheeshas from Egypt and gourmet desserts. Mocha calls itself ‘a coffee shop for
the soul’.
Qwicky- Based mainly in Bangalore, Qwicky has a strong local hold in South
India.

INDIRECT COMPETITORS:
Eateries like McDonald’s and Haldiram’s pose competition to CCD as they are
likely attractions for a consumer to be drawn to. A consumer can well contemplate
why he should spend around Rs. 45 on a coffee when he can get a burger and a
coffee for the same price at McDonald’s.
Local tea joints and coffee shops like Café Nescafe- They are smaller places but
nevertheless target the same set of consumers. Hence, CCD has to consider the
threat a shop like this could pose to it.

19
GLOBAL COMPETITORS:
Starbucks is planning to enter India shortly and would be stiff competition for
even an established brand like CCD.
Coffee bars in the market of the other country that Café Coffee Day is
entering is also be a factor CCD will have to plan for before entering a market

DISTRIBUTION STRATEGY

Today CCD has the largest network of cafes in India, with over 607 ‘Company
Owned Company Operated’ cafes across 98 cities. But they do not follow a
franchising strategy. The channel partner has no involvement in the daily
operational activities of the Café in the retail space. Neither would he have to invest
in operational capital equipment or branding or marketing and promotion of Café
Coffee Day.

20
COMPETITIVE STRATEGIES OF CAFÉ COFFEE DAY

Café Coffee Day which follows a backward integration of the value chain procures coffee beans from its
base in Bangalore. This gives it a high sense of quality assurance and guaranteed supply across its outlets
as the same raw material is used in all outlets. But Barista is a combination of imported coffee beans and
beans from Tata coffee. This is a relative disadvantage because if there is a discrepancy in the quality or
supply, Barista would have to consider alternatives and probably look for another supplier.
Similarly, the food items available in Café Coffee Day are obtained from local suppliers whereas
Barista’s food is catered by the Taj caterers. Café Coffee Day would hence, have a lower-cost advantage.
The brand strength of Café Coffee Day in comparison to Qwicky’s and Café Nescafe is far greater and
its reach is on a countrywide scale

21
Café Coffee Day has an advantage of top-of-mind recall for coffee-shop-goers in India, especially
because it set the café ball rolling in the country.

It is a place where a lot of young people can meet, chat, have fun and let
their hair down, rather than sit and sip a cup of coffee in prim and proper serenity.
This is one of the main factors for why it is chosen over places like Barista or Mocha.

Café Coffee Day uses special ‘Café Citizen Card’ for rewarding Café Coffee Day’s
customers. It is a loyalty program to gain new customers and retain the existing ones.
The Café Citizens Card entitles members to a 10% discount
on all food and beverage bills. The members also receive
surprise gifts, along with special offers and invitations from
Café Coffee Day from time- to- time

Section 2

Research methodology

22
 SAMPLING TECHNIQUE

The sampling technique applied was the stratified sampling technique. Target population was
first identified as students and working executives under the assumption that these segments
were among the most frequent users of the said product

Thus two mutually exclusive strata were formed. Next from each strata at random, respondents
were identified and questionnaires were distributed so that data can be collected. Also age –
group was one of the factors that would be considered for deciding the basis of collection of
information. Within stratified sampling, simple random sampling was used as questionnaires
were distributed at random to students and the working executives.

23
One of the shortfalls of the above technique would be that other consumers such as those
constituting a family have been completely ignored as only students and working people have
been considered. Had the above segment been included, my study would have been more
comprehensive and could have given us another dimension to look into.

DATA COLLECTION
Data was collected in the form of personal interview i.e. using the concept of mall
intercept. This method was selected, as it was the fastest way to collect data. If more
time was available then the respondents could have been targeted directly in the Coffee
shop at the appropriate time. Thus the primary data was collected through Surveys,
whereas the source for secondary data was the various websites.
SURVEY AREA
Since focus was only those Respondents who have visited Cafe Coffee Day, survey area would
be concentrated near Cafe Coffee Day outlets.

Chandigarh
Sector 11
Sector 35
Sector 28
Sector 10

24
DATA PROCESSING AND ANALYSIS
The statistical tools which will be used are as follows:

a) Graph and Frequencies

b) Any other tool based on the type of data collected

The questionnaire consisted of both open ended and close ended questions. Some sample
questions that were asked were:
a) Have you ever visited Cafe Coffee Day? (Y / N)

b) What do you like most about Cafe Coffee Day?

1) Ambience 2) Service 3) Coffee 4) Any other

25
SAMPLE SIZE
Took a pilot survey of 20 candidates and asked them, “What is the deciding factor while
buying Coffee at a Coffee Bar”. It was found that 75% of the sampled respondents in the pilot
test were affected by the price. Thus we took price as the parameter for evaluating perception of
Coffee bars.

P (estimated proportion of success) = 0.75

Q (estimated proportion of failure) = 0.25

The formula for estimating sample size in case of proportion is
N = (Z/E) 2 P * Q

Z (95% confidence level in standard error units) = 1.96

E (maximum allowance of error between true proportion and sample proportion)

= 0.10

26
N = (1.96/0.10)2 * .75 * .25 =72.03=72 (app.)

Therefore N = 72 (approx)

Thus our Sample Size will be 72 respondents

PARTICIPANT’S PROFILE

The consumer profile in India especially is one with varied cultural and traditional
influences. In terms of coffee, southern India is supposed to be one of the major
consumers of same as compared to the Northern and other parts of India.

Filter coffee is the preferred drink in south while instant coffee in north. Price also plays
a major significant role in their purchase decision.

In this study we have looked at the consumer from the following aspects:
 Their Monthly disposable income
 Services offered to the consumer
 Quality of the Product
 Demographic segmentation of consumers
 Price
Consumer Perception towards such upcoming retail services in India is another
consideration.

27
INSTRUMENT

The instrument used here is questionnaire. A questionnaire is a research instrument consisting of

a series of questions and other prompts for the purpose of gathering information from
respondents. Although they are often designed for statistical analysis of the responses, this is not
always the case. The questionnaire was invented by Sir Francis Galton.

To check the validity of statement

STATEMENT 1
To test which attribute plays the major role in drinking Coffee at Cafe Coffee Day
1. Price is the sole deciding factor while buying Coffee at Cafe Coffee Day
2. Price is not the sole deciding factor while buying Coffee at Cafe Coffee Day
STATEMENT 2
Testing the brand loyalty of the customers.
1. Students are not brand loyal to CAFE COFFEE DAY.
2.Students are brand loyal to CAFE COFFEE DAY.
Time spent at CAFE COFFEE DAY is directly related with amount spent

28
 Section 3

Results and analysis

29
ANALYSIS

30
 I. WHICH COFFEE BARS DO YOU VISIT V/S CATEGORY

From the table it was observed that 28% of the working respondents (i.e. 10 out of

31
 36 working respondents) only visited Cafe Coffee Day.

On the other hand only 16% student respondents (6 out of 36 student respondents)
went only to Cafe Coffee Day.

This table also highlighted a very important characteristic of student respondents,

i.e., student population are more prone to switching Brands as compared to,
Working class who tend to be more ‘Brand – Loyal’

I. HOW DID YOU COME TO KNOW ABOUT CAFE COFFEE DAY

Most of the respondents (31%) came to know about Cafe Coffee Day through
their peer group or word of mouth (13.8%), or because the Cafe was located in

32
 their area i.e. their vicinity (16.6%)

This shows that the circle of friends plays an important role in influencing the
decision of an individual to visit a Coffee Bar.

At the same time it also helps if the bar is located in your area of residence or
work – place

II. DOES COFFEE REMIND YOU OF CAFE COFFEE DAY

The above question was specifically put so that the brand recall value of the brand
‘Cafe Coffee Day’ could be tested.
Majority of the respondents (67.3%) did not associate Cafe Coffee Day with
Coffee.
This was identified as one of the problem areas. Possible solutions are suggested
in the recommendations that follow

33
 Does Coffee Remind You of CCD

70.00%

60.00%

50.00%

40.00% Does Coffee Remind You of CCD

30.00%

20.00%

10.00%

0.00%
NO YES

III. HOW FREQUENTLY DO THEY VISIT CAFE COFFEE DAY V/S

CATEGORY

34
Through this question an attempt was made to analyse who are the frequent
visitors to the Bar and accordingly a strategy could be devised to target the
audience.
The statistics revealed that students visit the bar more often than the working
executives while the execs visit the bar only once a while.

IV. HOW MUCH TIME DO YOU SPEND AT CAFE COFFEE DAY V/S ONE
TIME SPENDINGS AT CAFE COFFEE DAY

35
The objective of this question was to study whether the spending increased with
time.
It was observed that as the time spent at the bar increased, the tendency to spend
increased and this peaked for the category of people who spent around 1 – 2 hrs.
After this peak point the spending dropped.
Thus highlighting that people sitting for 1-2 hrs spend the most and after this
point their consumption level falls.

This proves our Hypothesis (“Time spent at CAFE COFFEE DAY is directly
related with spending”) false.
The maximum order that was booked was for the price range of Rs. 50 – Rs. 150.

V. CATEGORY V/S ONE TIME SPENDINGS AT CAFE COFFEE DAY

Through the table it was found that one time spending of students was more in the

36
 range of Rs.0- Rs.150.
Whereas working group are the ones who spent the most, their one time spending
ranged from Rs. 50 to Above Rs.250.
This also proves that working group is better source of income than student group,
one of the reasons being that working group has better purchasing power than
students.

VI. PERCEPTION ABOUT CAFE COFFEE DAY AS A PERFECT COFFEE

BAR

37
Majority of the respondents surveyed (about 62.5% ) felt that Cafe Coffee Day
was the perfect place to have Coffee.
This shows that Cafe Coffee Day has been successful to a considerable amount in
the minds of people. But they would need to work upon new strategies to keep
their position.

70

60

50

40
Series 3
30

20

10

0
no yes

VII. RATINGS OF CAFE COFFEE DAY ON VARIOUS PARAMETERS

From the below fig, it can be seen that ambience is highly valued at Cafe Coffee
Day by the consumers.

38
This also proves our hypothesis 1 that price is not the deciding factor to visit
CAFE COFFEE DAY.

VIII. CATEGORY WISE RANKING OF CAFE COFFEE DAY

It can be said after looking at fig below that working class ranked CAFE COFFEE

39
 DAY as a no1 Coffee shop
On the other hand the students have ranked café Coffee day as the no 1 brand and
Barista 2nd

It can also be verified from the above responses that working class are brand loyal
than the student class.

This also proves the hypothesis 2 “Students are not brand loyal”

40
 Section 4

SUGGESTIONS

SUGGESTIONS

41
As per the results obtained during the course of the project I came across the following set of
recommendations:-
The most obvious fact that came out from the project was price was one of the factors that
served as a hindrance not only to the students, but also to the working executives. Thus the most
likely solution to this problem would be nothing but decreasing the price but at the same time the
profitability of the joint should not be affected.
The next possible step that the Coffee – bar should take is to increase its awareness among its
target audience. This it can achieve by various means of advertising and that too keeping in mind
the specific categories of its consumers.
For e.g. it can target the students by sponsoring the cultural events that are organized in various
colleges.
Keeping in mind that a student cannot spend as much as a working executive does, special rates
can be introduced for the students.
Further more the joint can also toy with the idea of floating special membership cards for its
patrons so that they would get certain rebates and this would result into increase in the frequency
of their visits as this policy will encourage them to visit the joint.
New varieties of product should be introduced on an experimental basis.
Also to increase the reach of the consumers more and more outlets should be established.
The Coffee – bar can go in for competitive analysis to understand the competition and realize
its current standings.

42
 Section 5
CONCLUSION

CONCLUSION

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Coffee is a major commodity in developing country like India and liberalization of coffee market
has given rise to competition and to survive in this competitive market newer and newer
strategies are need to be formed to take the advantage of opportunities arising in this market.
Simultaneously financing also plays an important role in developing coffee market and coffee
export. More awareness among people is needed. Marketing needs to be done among all classes
of society. These coffeehouses are extremely important, because they provide international
visitors to the hotel with a universal drink- coffee.
The last, and the most organized sector in the coffee café industry, is the retail café chain. Off
late, these chains have become extremely popular and are growing at an ever-increasing pace.
These retail chains have work with an organized structure of man, material and money. The work
on developing a recognized brand consistent to all their outlets, which customers can easily
relate to, wherever they go. They provide customers with a standardized level of service and
quality at each of their outlets.

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 Chapter 6
REFERENCES

REFERNCES

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Aaker, David,” Building Strong Brands” ,The Free Press, Printed in the United
States Of America, Year 1996.

Aaker, David,” Strategic Brand Management” ,Prentice Hall, Printed in the

United States Of America, Year 1989.

Crainer,Stuart,” The Real Power Of Brands” ,PITMAN Publishing, Printed in

Great Britain, Year 1995.

Kothari,C.R.,” Research Methodology” ,WISHWA PRAKASHAN Publishing,

Printed in India,Bangalore, Year 1998.

Kotler,Philip,” Marketing Management,Ninth Edition” , Prentice Hall, Printed in

India, Year 1999.

Toshowe, Stanley, The Marketing Review – Café Retail, The India chapter,
Volume86,Number 336 ,Jan’2005,page-36.

www.cafecoffeeday.com - Search engines – Case Study

www.barista.co.in- Search engines – Case Study

www.google.com- Search engines

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 Section 7
APPENDIX

QUESTIONNAIRE

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[Information provided by the respondent will be kept fully confidential and will be used
only for the academic purpose.]

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