Gagan Project
Gagan Project
Gagan Project
Executive Summary
Introduction:
About project:
Topic
“Customer Relation Management initiation to improve sales at Café Coffee Day”
The project also includes how to retain the existing customer. It has also seen
which activities inspire the customer to visit Café Coffee Day more often. The study was
made know whether customers are satisfied about Café Coffee Day or not. Because satisfied
customers will be the loyal customers. It has also seen which things are not going good for
further improvement.
Objective:
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Findings:
Students visit Café Coffee Day more
Age group between “20-25” visits Café Coffee Day more. They are the potential
customers.
39% of the respondents visit Café Coffee Day once in week and 37% of the
respondent visit café Coffee Day once in month.
57% of the respondent visit CCD refreshment Purpose
49% of the respondent feel coffee and Snacks influence them to visit CCD
63% of the respondent were not aware of the promotional activity Conducted by CCD
76.8% of the respondent would like to know about promotional activity.
77% of the respondent would like to be part of any future event in CCD
78% of the respondent Satisfied about service
66% of the respondent feel event conducted by CCD influence them to visit CCD
73% of the respondent feel Staff of CCD is friendly
36% of the respondent said promotional activity influences them, 34% said DJ shows
influences them.
Promo:
53.6% of the customer rated prom was good and 35.7% rated promo was
excellent.
89% of them expect more events in future.
96.4% of the respondent satisfied about promo.
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1. Organize at least few promotional activities in order to build good relation with
customer
2. Give advertisement about promotional activity
3. Maintain Customer data base.
4. Wish the regular customer for New Year or for any festivals through greeting card or
SMS or through gift. This will increase the loyalty of the customers.
5. Increase number of couches and place
6. Play the good music
7. Quick Service
8. To increase sales Café Coffee Day can also have corporate tie ups within the city.
9. Provide scratch card to the customers.
10. Identify the regular customer of the Café Coffee Day and provide them cards through
they can get some discount. Through this Café Coffee Day can retain their existing
customer.
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Table of Content
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Section -I
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Industry
Overview
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Introduction:
Coffee occupies the third slot after tea and milk in the domestic market. Non-drinkers and
occasional coffee drinkers, who account for 78% of the country's populace, are the prime
target for the Coffee Board and retail chains for promoting consumption.
According to the study done by the Gallup and Coffee Board, the top of mind recall for teas
in the country is 66% as against 22% for coffee. Speaking on opportunities for coffee
retailing in India, the country's coffee consumption topped 85,000 tonnes in 2006. Though
coffee has been in a commanding position in the southern states, tea also has an equal share.
There is a great scope for increasing coffee consumption amongst occasional drinkers and
non-drinkers.
Coffee has to compete with other beverages to get its share of throat. Marketers have to target
younger consumer, and come with new and appealing patterns. Coffee can be easily
associated with wellness, health and youth. The market potential is $100 million.
INDIA -- Domestic consumption of coffee shows a steady increase. This fact is happening in
the same time with the fast food segment growing at the rate of 40% every year. In the next
couple of years, coffee chains in India are expected to grow at an annual rate over 30%.
From being a traditional beverage consumed mainly in South India, coffee now has a
national presence, consumed in several forms and retail formats.
The results have been dramatic: domestic consumption of coffee last year increased by nearly
one-third, from 60,000 to 80,000 tons.
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Internationally, coffee sales are virtually stagnant, moving ahead at 0.5 per cent. According
to a research report by the United Nations Food and Agriculture Organisation, India's coffee
consumption has been chugging along at 2.2 per cent per annum.
With consumption pegged at 70,000 tonnes, branded coffee accounts for 53 per cent,
unbranded 40 per cent, with cafes constituting 7 per cent. Industry estimates peg the annual
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The Coffee Café industry is currently one of the biggest and fastest growing sectors in
business. The industry consists of a mix of individual cafés, hotel cafés and retail café chains.
India has always been predominantly a Chai (Tea) drinking nation. India is famous for
drinking tea .people in India irrespective of the Class, religion and place are fan of tea. Coffee
remain in a distinct position compared to tea. However in these days coffee consumption is
increasing in India. Indian coffee Board is promoting coffee and it seems that their
Coffee has been only moderately popular in some southern states, other than that it has been
Chai (Hindi term for Tea), Chahaa (Marathi term for Tea), cutting (Mumbai term for half tea
cup), maramari (another popular term from western India for tea) all the way!
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
The organized coffee retail business in India is over Rs.8 billion ($17 million), and the
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With the Indian middle class consumer ready to spend more and be a part of global lifestyle
From small-sized coffee parlours 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
Individual Cafés:
The main bulk of revenue is earned by small, individual cafés, run mostly by families and
friends. It is a relatively unorganized sector. There are millions of such cafés around the
The bulk of these cafés are mainly in Europe, where every little town or village has local
cafés, where people gather together for a conversation over coffee, or just to be alone with
their thoughts.
These cafés have been the birthplace and sanctuary for various creative minds,
revolutionaries and thinkers of our time. The most recent example is the author J.K. Rowling,
who has written most of the Harry Potter series of books, sitting at her local café.
These cafés set themselves apart from retail chain cafés and hotel cafés because they provide
Hotel Cafés:
Ever since the popularization of coffee, hotels all over the world started opening 24-hour
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coffee shops where visitors to the hotel could walk in for a cup of coffee and some food at
any time.
These coffeehouses are extremely important, because they provide international visitors to
the hotel with a universal drink- coffee. Any customer can walk into any major hotel in the
world, and enter the coffeehouse, and know what to expect. These cafés are not really major
players in the coffee café industry, but rather provide supplementary services to the hotel
industry.
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
The vintage location of the mess attracts huge crowds even today early in the mornings,
Coffee however was not the only item on the menu. These places also served food and other
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
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customers. This showed the popularization of coffee cafés, to all sections of society.
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 café
Now, large retail chains like Qwikys, Barista, and Café Coffee Day have opened up around
the country. The concept of a café today is not merely about selling coffee, but about
developing a national brand. Retail cafés now form a multi- crore industry in the country,
Major Competitors
As coffee culture gets bigger in India, a traditional tea drinking nation, domestic and
international chains are lining up big expansion plans to the tune of nearly Rs 325 crore in the
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Majors players like Barista, Costa Coffee, Cafe Coffee Day and Barnie's are already
working overtime to expand their presence in the country and implement product portfolio
overhauls. On the other hand, global player Starbucks Corporation is all set to make its
India debut in 2007.
All café chains, are looking to cash in on the booming coffee retail in India, which is
expected to grow at an annual rate of over 30 per cent in the next couple of years on the back
of patronage from the young population in the 18-25 age bracket with a growing disposable
income.
The latest to announce big plans for expansion in the Indian coffee retail market is UK-based
coffee shop chain Costa Coffee. The company is doing an investment of Rs 150 crore to set
up 300 outlets in the next five years. Costa is taking steps to widen its menu, including
addition of a range of wraps. It is also in the process of fine-tuning an India specific menu to
appeal to the local palate.
In the wake of increased competition, Barista, one of the first players, is making an
investment of Rs 50 crore this fiscal to add around 100 new stores. It plans to have a total of
250 outlets by end of this fiscal and take it beyond the metros to smaller cities.
US-based coffee store chain Barnie's had said it would invest Rs 75 crore while announcing
its foray in the Indian market. It will open 300 stores across the country in the next five years.
In the first year itself they are looking at setting up 25 stores in the country and the company
would open stores at Bangalore, Mumbai, Chandigarh, Jalandhar and Lucknow.
Another major player in the segment part of Amalgamated Bean Coffee Trading Company
Ltd, Café Coffee Day is looking at an investment of about Rs 35-50 lakh per outlet. Cafe
Coffee Day has already made plans to open toyal 500 outlets across India by 2007.
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While the existing players are looking at consolidating their businesses, US-based coffee
retail giant Starbucks Corporation is planning to enter India with its expected debut in 2007.
They are looking forward to offering the finest coffee in the world to customers in this
country within the next 18 months.
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Section –II
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Company
Profile
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Mr.V.G Siddhartha, Chairman CCD initiated his business interests in coffee by incorporating
Amalgamated Bean Coffee Trading Company Limited (ABCTCL) in the year 1994. From
Exports to commodity trading and building a brand, Coffee Day entered with ‘Fresh n
Ground’ and subsequently went up the value chain thereby revolutionizing the metropolis
with Cafes under the brand Café Coffee Day.
ABCTCL today is one of Asia’s top 500 companies and soon aims to be among the top 3
coffee retailing companies in the world. We are currently 400 cafes in India, Pakistan &
Austria (Vienna). ABCTCL also has an ambitious growth plan of opening 1000 cafes by
2010 making its presence across 80 Indian cities also establishing 50 cafes in 10 foreign
countries. Our customers have given us the thumbs up for our quality standards in Pakistan
and Austria and that motivated us to go to 10 countries where plans are currently being rolled
out. And is planning to open other Cafes in the Middle East, Eastern Europe, Eurasia, Egypt
and South East Asia in the coming months.
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. 300 crore
ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates,
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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.
Café coffee day I based in chickmaglur and has its business spanning the entire value chain
of coffee consumption in India.
It is a place where customers come and rejuvenate themselves. It is a meeting place for the
young at heart. In the cafes they sell Hot and Cold coffee as well a Food and Merchandise to
the customer.
Coffee Day Fresh n Ground: Which owns 354 Coffee bean and powder retail outlets
Major player in the most and ground filter coffee segment. It provides a unique assortment of
blend at affordable prices. The coffee is freshly ground in front of the customer and sold to
him.
Bridges the need gap between the leisurely cuppa and a bite at the café and a quick drink at a
vending point. In this segment you would notice kiosks strategically positioned, where
customer can not only drink a cup of coffee but also grab a quick bite on the move.
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To serve the man on the move, who though in a hurry doe not have to compromise on the
quality of coffee he drinks. Coffee Day has its vending machines placed in vendor outlets in
all major cities.
Currently export over 30000 tones of green coffee per annum, i.e. 15% of India’s coffee
exports. We have also ventured into specialty coffee exports.
For mass-in-home consumption segment where filter coffee is consumed everyday. The filter
coffee is sold in a packaged form to the consumer
Plantation:
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Our passion for coffee stems from the august heritage of coffee estates inherited by the
promoter's family. What started out with a small group of family-owned estates, gradually
grew as more and more estates were included to finally form Amalgamated Bean Coffee
Trading Co. Ltd.
The plantations nestled in Chikmagalur and Mudigere region of the Western Ghats, are
spread over 5000 acres of well-maintained estates upto 4500ft above sea level. This makes us
the second largest plantation company in the country.
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Café Coffee Day was named Food Services Retailer of the Year and Eclusive Brand
Retailer of the year at 1st ICICI Bank Retail Excellence Awards function in 2005.
Café Coffee Day was rated the No. 3 food services brand in Business World and Brand
Equity surveys in 2004
Café Coffee Day was ranked as the 3rd best Retail F & B chain in the Brand Equity
Survey in 2004.
Mr. V. G. Siddhartha, Chairman ( Amalgamated Bean Coffee Trading Company Limited)
received the “ Economic Times – Entrepreneur of the year 2003” award.
Café Coffee Day has had a hat trick victory in the India Barista Championship. For 3
years in a row 2002, 2003, 2004 ccd has won all the top award and its representative has
gone on to represent India at World Barit Championships, winning silver medal in 2002
and 5th place in 2004 for the country.
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About
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 neighbouring
international markets grew, the need for a relaxed and fun “hangout” for the emerging urban
youth in the country was clearly seen.
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. 300 crore
ISO 9002 certified company. 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.
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 552 cafes in 90 cities around the country.
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With its roots in the golden soil of Chickmaglur, the home of some of the best Indiann
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.
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Coffee Day Fresh n Ground (which owns 354 Coffee bean and powder retail outlets)
Coffee Day Xpress (which owns 341 Coffee Day Kiosk)
Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division.
Mission statement………
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Logo….
For a brand to stand out and be successful there has to be a personal commitment from staff
at all levels. The target customers must identify with it. It should be vibrant and have a “life”
of its own. Liveliness, growth, fun and passion depicts our brand, our customers, our staff and
our future – this is embodied in our design and colour.
Café store:
Café Coffee Day is India’s largest and
premier retail chain of cafes with 421 cafes in
75 cities around the country.
All major cities such as
Banglore – 83 cafes at present
Ahemedabad - 12 cafes
Chennai – 16 cafes
Goa – 7 cafes
Gurgaon – 9 cafes
Hyderabad – 22 cafes
Jaipur – 7 cafes
Kolkata – 15 cafes
Mumbai – 65 cafes
New Delhi – 50 cafes
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Puna – 20 cafes
Café Stores
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HEAD - OPERATIONS
REDGIONAL MANAGER
CITY MANAGER
AREA MANAGER
CAFÉ INCHARGE
TEAM MEMBERS
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Café Coffee Day has been experimenting with café formats for quite sometime, CCD has
ventured into the following formats:
Music Cafés provide customers with the choice of playing their favourite 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’.
Highway cafés on the Bangalore – Mysore highway and NH-8, 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 at Hauz Khas, Delhi and Southern Avenue, Kolkata(Southern Avenue) and
Hyderabad (Jubilee Hills) combines 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 at M.G Rd, Bangalore and GKII, New Delhi combine the joy of rejuvenating
amidst verdant landscapes and pots of coffee.
Cyber cafés at Brigade Rd, Bangalore, Airport, Bangalore and Airport, Delhi 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!
Sports café, singles café, fashion café are the upcoming café formats……………………
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Cake
Ice-Creams
Vanilla
Chocolate
Seasons Best
Quick Bites
Samosa
Puff
Pizza
Croissant
French Fries
Kathi Roll
Wraps
Biryani
Sandwiches
Burger
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Product Sources:
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 cafés from Chikmagalur.
The eatables at Café Coffee Day are catered by different vendors: example: ice
creams are catered by Cream Bell, Milk by Amul and samosa’s by Patsiers Gallery.
Café Coffee Day also sells merchandise through its stores. 5 per cent of the revenue
comes from sale of merchandise.
Quality standards:
Quality policy: “We are committed to quality and we shall strive continuously to
provide products, which consistently meet the needs of our customers and establish a
value-added relationship, ensuring total customer satisfaction.”
Café Coffee Day has a check on quality all the time and in several aspects. The
operational in-charge will go around checking business, record keeping, and service
and heck the feedback forms. The food in-charge will look at the way food is being
stored, coffee is being made, what is the time take to extract the coffee and so on.
Marketing person will go about checking displays, how the merchandise is displayed.
Café Beat
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Café Beat reaches more than a million smart, receptive and upwardly mobile youth of
India every month. It is one of the most widely read YOUTH magazines in the country
and is a part of one of the largest Indian retail youth brands - Café Coffee Day.
CAFÉ BEAT FACTFILE:
Available FREE of cost to customers for in-café reading. Many customers also carry
it away for their referrals.
38% of the customers at CCD read Cafe Beat (survey conducted in Aug.'04 in the 4
metros.). CCD gets around 3.9 million walk-ins in all its cafes per month.
Essentially a youth magazine covering topics like movies, music, travel, lifestyle, e-
dating, books, career etc. which interest the youth.
Displayed on magazine stands/counter at the cafes. The new issue is kept on the tables
during the first week for greater visibility.
Merchandising:
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Every one likes to cherish good times with a hope that they last forever. To
make this a reality merchandising started. At Café Coffee Day merchandise
started more as a sentimental thing than as revenue stream. They wanted to
reward coffee lovers and they started selling mugs. People wanted to wear something
that reminded them of the cafe so they designed T-shirts and sold thousands of those.
But soon it has become a serious business. 5 per cent of their revenue comes from
the merchandising. Café Coffee Day sells various young and trendy merchandise
through its stores:
S.No Particulars
Coffee Powder
1 Funky Caps @ Rs 60 onwards
21 Arabicaah @ Rs
Cool T-Shirts 65 229 onwards
@ Rs
32 Perfect
Bags @@ RsRs 55onwards
225
Coffee Filters @ Rs 120
43 Charge @ Rs 45
Coffee Filters @ Rs 120
54 Dark Forest 200gms @ Rs 125
Coffee Filters @ Rs 120
65 Dark Forest 500gms @ Rs 260
Customer Profile:
The café is a meeting place for 15-29 year olds, both male and female who are served
the best coffee by friendly and informed staff, in an uplifting and invigorating
ambience.
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Research shows that teen-agers form 25% of our customers while 38% of the
customers are between 20-24years and another 23% belong to the age group of 25-29
years.
18% of the customers visit the cafes daily while another 44% visit weekly.
Each café, depending upon its size attracts between 500 and 800 customers daily,
mainly between 4pm and 7 pm.
Customers describe Café 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; a place where they rejuvenate and are free to be themselves rather than a
place to be “seen at” vis a vis other cafes.
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People:
People at Café 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.
The company today has over 3500 employees. The basic criteria for selection of an
employee are he should be extremely creative and passionate. So the company has a
intensively growth oriented team with it.
Company is recognized as an equal opportunities employer. To provide individuals
with continual growth and prosperity is fundamental to the culture of our
organization, however our inner strength is derived from encouraging the
entrepreneurial spirit among our employees.
Job Rotation: Employees are rotated through the various sections at the café so that
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Café Culture
Along with the company’s fast paced growth, company provides ample growth
opportunities for those who would go that extra mile to deliver and contribute to their
success.
The company has an open door policy that allows every member of the team to access
the Management head regarding any proposals or problems.
The practices like Coffee Table encourage innovative thought pattern that habituate
growth and smart work in the day to day lives of employees. The company culture is a
reflection of the café culture which symbolizes team work and creative outlook on
life.
Strategy
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Café Coffee Day was among the first coffee cafés to start operations in India in
1996, but was the last to go national (end-2001).
Today, with 400 cafés in 75 cities, Café Coffee Day is the largest chain in the country.
Main strategy is
combination of affordable prices and product
attention to customer needs
a strong back-end support system.
India is largely a tea-drinking nation, and coffee has always been a fringe player.
While coffee cafés have existed in Europe since the 15th century, in India coffee
drinking was restricted to niche segments like intellectuals, the south Indian
traditionalist and the five-star coffee shop visitors till the late-1990s. This started
changing slowly after 2000 — and not because there were many café players in
India by then.
The direct causes for this change were probably the increasing spending power
among urban youth and the increasing exposure to global trends.
Hence, even as the first café was set up in Bangalore in 1996 — an idea that struck
our chairman V G Siddhartha, while on a visit to a coffee shop in Singapore — it
proved to be an idea whose time came only by the turn of the century. By then, most
other players had joined the bandwagon.
They have seen the hard days when every customer had to have every item on the
menu explained. That’s one reason they waited until 2000-01 to start expanding
nationally.
Supply chain
Another reason was that they wanted to put the back-end systems in place.
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Transporting fresh roasted coffee from their own estates in Chikmagalur to faraway
places like Mussourie in the north and Jamshedpur in the east —they are the only
national player present in both cities — was a logistical nightmare
If, in the thirst for growth, company did not pay attention to this aspect. Believed in
being more sure-footed.
From bean to cup company is into the coffee estate business for the past 125 years:
which means they do not look at the coffee chain business as a short-term business.
Company invested approximately Rs 1. 2 crore in r supply chain and chalked out what
is called a B2C (bean to cup) supply chain strategy.
The supply chain had to support the expansion plans of adding four to six new cafés
every month, which led us to adopt industry best practices and, in some cases,
develop our own modules.
The sourcing policy at these hubs included both local and centralized sourcing, based
on the volume lead time and value of the materials. We followed a continuous
replenishment policy by integrating vendors upstream. For items that had fluctuating
demand and large volumes, the inventory was managed by vendors.
developed internally.
Chikmagalur
Outlets Outlets
Outlets Outlets
Outlets Outlets
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At cafés, every coffee menu is combined with the right kind of eats, whether a dessert
or a snack. Menu changes occur once in four months to prevent food fatigue.
An important decision company took in their outlets was to provide table service and
not enforce self-service. The finding was that customers did not want their names to
be shouted out when their orders were ready.
Another advantage of table service is that they can engage customers in conversation
and persuade them to try more dishes on the menu. This is something that cannot be
done in a self-service set-up, when there are people queueing up, waiting to be served.
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We also give out customer feedback forms along with the bills. The filled forms are
collected from all regions and sent to the headquarters on a regular basis, to be read
and analyzed in detail. These forms also have an email id.
Customers who mail in with serious complaints receive a reply within 24 hours.
In fact, a large part of our success is due to stringent cost controls. We get coffee
beans cheap because we source from our own estates. Most IT solutions were also
designed in-house to keep costs low.
Company is extremely cost conscious, which they try to inculcate in their employees
as well. Traveling expenses and the use of cars and telephones is kept to a minimum.
And in many outlets, employees who serve customers do the housekeeping as well, so
that they need not need hire extra employees for that task.
They try to cut costs at every stage, without cutting corners. For instance, instead of
three hinges for the café doors, we use only two; and, instead of six screws in the
hinges, we use only four.
They also keep our costs low by sourcing furniture from overseas — compared to
India, east Asian countries and China are far ahead in terms of low-cost, quality
furniture. Imported furniture is about 25 per cent cheaper than Indian, custom-made
furniture. It’s not just furniture. Bangladesh and Sri Lanka produce better quality
crockery at similar prices.
Café Coffee Day has different food suppliers for different locations. Within one
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region, we may have as many as three suppliers if there are 40 or 50 cafés. That way,
one supplier can serve 15 to 20 cafés. It is too risky to depend on one supplier — if
something goes wrong, the food supply to all the cafés in a city can be affected.
Full of beans
Café Coffee Day generally believes in having clusters of cafés. Within the Mumbai
suburb of Bandra, for instance, we have six outlets.
At another location, too, CCD has six cafés within a span of half-a-kilometre. This
does result in a little cannibalization, but it also means that we blanket that area.
Importantly, none of these outlets is a franchise. A crucial part of the strategy is that
all outlets are company-owned. Even though self-owned cafés are more expensive in
the short term, a too-hasty switch to the franchisee model may cost the brand value.
Besides, self-owned cafés mean greater control on product quality, service and
training, which is critical for a relatively-young brand such as ours.
Another policy is that CCD do not advertise. They believe that they are not yet big
enough to justify mass advertising — on-site promotions and localised marketing
initiatives still do the trick for CCD. It is found that 85 per cent of the customers are
through word-of-mouth.
And even without advertising, last year 30 million people visited our cafés. This year,
we’ve hiked that target to 40 million.
Then, employee incentives at the cafés depend not only on sales, but also the profits.
Also, if a café does not deliver profits within six months of starting operations, they
close it. Over the years, we have closed 14 Café Coffee Days, while 153 are in
operation.
CCD is in the process of revamping our loyalty programme to make it dynamic and
attractive. Previously customers could get 10 per cent discount on purchases made at
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our outlet and the points accumulated could be encashed for prizes.
Café Coffee Day gives the market what it wants, not what it is
good at.
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Business association:
CCD has emerged as an interactive alternative media for brands to communicate with
the ‘young at heart’.
Other media, such as electronic, print and outdoor, offer brand communication
through visual and audio modes to a large section of the populace, both relevant and
irrelevant. Café Coffee Day offers a much more interactive, targeted communication,
sometimes adding even a taste dimension to a brand idea!
Various in-café collaterals used to impart visibility to a brand inside a café or to add
the element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets,
Brochures, Coasters, Drop boxes, Contest Forms, Stirrers, Standees etc.
Over the years, CCD has successfully promoted a number of brands/products/events
through various innovative tactics and promo ideas. Cashing in on its mass captive
audience, we at CCD have entered into tie-ups and promotions which are well knit
with our brand promise and which can be creatively used to woo the Indian Youth.
Our understanding with a known NGO Enable India gives us the opportunity to
employee hearing & speech impaired people. The company has also initiated a
VOCATIONAL TRAINING COLLEGE that recruits individuals from the less
fortunate, remote parts of the state and trains them in a state-of-the-art facility at
Chickmaglur. Here they learn about operations & customer service. The training also
includes on-the-job training after which the students are provided with full time
employment opportunities with Café Coffee Day.
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Section-III
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Project
Details
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Project Details
Customer retention
Under the present of competitive environment, the focus of the Organization is more
on customer retention than customer acquisition. Customer retention is the process of
keeping customer acquisition. Customer retention is the process of keeping customer
in the customer inventory for an Unending period by meeting the needs and exceeding
the expectations of those customers
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Need:
Objective:
Research Methodology
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Secondary Data:
The major source of secondary data is through internet .The information on
coffee industry and company profile of Café coffee Day is collected through internet.
Analysis
&
Interpretation
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Occupation:
Occupation of Respondent
Cumulative
Frequency Percent Valid Percent Percent
Valid Student 58 58.0 58.0 58.0
Working 33 33.0 33.0 91.0
Business 9 9.0 9.0 100.0
Total 100 100.0 100.0
70
60
58
50
40
30 33
20
Frequency
10
9
0
Student Working Business
Interpretation:
58% of the respondents are students.
33% of the respondents are working.
9% of the respondents are business.
Student Visit Café Coffee Day more than other.
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Gender:
GG
Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 56 56.0 56.0 56.0
Female 44 44.0 44.0 100.0
Total 100 100.0 100.0
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60
56
50
44
40
30
20
10
Frequency
0
Male Female
Interpretation:
56% of the respondents are Male.
44% of the respondents are Female.
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Age of Respondent
Cumulative
Frequency Percent Valid Percent Percent
Valid 15-20 15 15.0 15.0 15.0
20-25 57 57.0 57.0 72.0
25-30 21 21.0 21.0 93.0
30-35 6 6.0 6.0 99.0
35-40 1 1.0 1.0 100.0
Total 100 100.0 100.0
70
60
57
50
40
30
20 21
15
Frequency
10
6
0
15-20 20-25 25-30 30-35 35-40
Interpretation:
15% of the respondents are between the age group 15-20.
57% of the respondents are between the age group 20-25.
21% of the respondents are between the age group 25-30.
6% of the respondents are between the age group 30-35.
1% of the respondents are between the age group 35-40.
Age group” between” 20-25 visit Café Coffee day more other age group.
Cumulative
Frequency Percent Valid Percent Percent
Valid Every Day 5 5.0 5.0 5.0
Once in Week 39 39.0 39.0 44.0
Once in fortnight 19 19.0 19.0 63.0
Once in Month 37 37.0 37.0 100.0
Total 100 100.0 100.0
50
40
39
37
30
20
19
10
Frequency
5
0
Every Day Once in Week Once in fortnight Once in Month
Interpretation:
5% of the respondents visit Café Coffee Day every Day
39% of the respondents visit Café Coffee Day once in a Week
19% of respondent visit Café Coffee Day once in fortnight
37% of respondent visit Café Coffee Day once in Month.
Only 5% of the respondent Visit Café Coffee Day every day. So by using
Promotional Activities and CRM techniques Café Coffee Day can make them to
visit frequently.
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Cumulative
Frequency Percent Valid Percent Percent
Valid From Start 30 30.0 30.0 30.0
From 2 years 28 28.0 28.0 58.0
From a year 29 29.0 29.0 87.0
Recently 13 13.0 13.0 100.0
Total 100 100.0 100.0
40
30
30
29
28
20
13
10
Frequency
0
From Start From 2 years From a year Recently
Interpretation:
30% of the respondents are visiting café from start.
28% of the respondents are visiting café from last two year.
29% of the respondents are visiting café from a year.
13% of the respondents are visiting café from recently.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Refreshment 57 57.0 57.0 57.0
Light Snacks 20 20.0 20.0 77.0
Parties 12 12.0 12.0 89.0
Business meeting 5 5.0 5.0 94.0
Other 6 6.0 6.0 100.0
Total 100 100.0 100.0
60
57
50
40
30
20
20
Frequency
10 12
0 5 6
Refreshment Parties Other
Light Snacks Business meeting
Interpretation:
57% of the respondent visit café for refreshment purpose
20% of the respondent visit café for light snacks
12% of the respondent visit café for Parties
5% of the respondent visit café for Business meeting
6% of the respondent visit café for other reason ( hanging up with friends)
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Cumulative
Frequency Percent Valid Percent Percent
Valid Music 7 7.0 7.0 7.0
Service 8 8.0 8.0 15.0
Coffee & Snack 49 49.0 49.0 64.0
Price & Promo 1 1.0 1.0 65.0
Hospitality 2 2.0 2.0 67.0
Environment 33 33.0 33.0 100.0
Total 100 100.0 100.0
50
49
40
30 33
20
F re qu e n cy
10
7 8
0
Music Cof f ee & Snack Hospitality
Service Price & Promo Environment
Interpretation:
For 7% of the respondent music influences to come CCD
For 8% of the respondent service influences to come CCD
For 49% of the respondent coffee and snacks influences to come CCD
For 1% of the respondent price & promo influences to come CCD
For 2% of the respondent hospitality influences to Come CCD
For 33% of the respondent Environment influences to come CCD
This shows that promotional activities are not effective. To make them effective
company has to do some plan.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 37 37.0 37.0 37.0
No 63 63.0 63.0 100.0
Total 100 100.0 100.0
70
60 63
50
40
37
30
20
Frequency
10
0
Yes No
Interpretation:
37% of the respondents are aware about promotional activities
63% of the respondents are not aware about promotional activities.
This shows that promotional activities are not effective and advertisement is
less.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 53 53.0 76.8 76.8
No 16 16.0 23.2 100.0
Total 69 69.0 100.0
Missing System 31 31.0
Total 100 100.0
60
53
50
40
30
20
16
Frequency
10
0
Yes No
Interpretation:
76% of the respondents would like to know about promotional activities
34% of the respondents not like to know about promotional activities.
This shows that most of them are interest in promotional activities.
Would you like to celebrate your special moment at Café Coffee Day
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Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 84 84.0 84.0 84.0
No 16 16.0 16.0 100.0
Total 100 100.0 100.0
100
80 84
60
40
20
Frequency
16
0
Yes No
Interpretation:
84% of the respondents like to celebrate their special moments at CCD
16% of the respondents don’t like to celebrate their special movement at CCD.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 77 77.0 77.0 77.0
No 23 23.0 23.0 100.0
Total 100 100.0 100.0
100
80
77
60
40
20 23
Frequency
0
Yes No
Interpretation
77% of the respondents like to be part of the CCD event
33% of the respondents don’t like to be part of the CCD event
CCD has to see the advertisement should reach those 77% of the customer.
And conduct the events which should retain those customers.
Cumulative
Frequency Percent Valid Percent Percent
Valid Highly Satisfied 17 17.0 17.0 17.0
Satisfied 61 61.0 61.0 78.0
Nutral 17 17.0 17.0 95.0
not satisfied 4 4.0 4.0 99.0
Highly not Satisfied 1 1.0 1.0 100.0
Total 100 100.0 100.0
70
60 61
50
40
30
20
17 17
Frequency
10
0 4
Highly Satisfied Nutral Highly not Satisfied
Satisfied not satisfied
Interpretation:
17% of the respondents are highly satisfied about service
61% of the respondents are satisfied about service
17% of the respondents feel service is not good and not bad means ok .
4% of the respondents are not satisfied about service
Only 1% of the respondents are highly not satisfied about service.
This shows service at café coffee day is overall good
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Cumulative
Frequency Percent Valid Percent Percent
Valid Highly Satisfied 3 3.0 3.0 3.0
Satisfied 39 39.0 39.0 42.0
Nutral 48 48.0 48.0 90.0
not satisfied 10 10.0 10.0 100.0
Total 100 100.0 100.0
60
50
48
40
39
30
20
Frequency
10
10
0 3
Highly Satisfied Satisfied Nutral not satisfied
Interpretation
3% of the respondents are highly satisfied about price
39% of the respondents are satisfied about price
48% of the respondents feel price is neutral
10% of the respondents are not satisfied about price.
Cumulative
Frequency Percent Valid Percent Percent
Valid Highly Satisfied 10 10.0 10.0 10.0
Satisfied 16 16.0 16.0 26.0
Nutral 69 69.0 69.0 95.0
not satisfied 5 5.0 5.0 100.0
Total 100 100.0 100.0
80
69
60
40
20
Frequency
16
10
0 5
Highly Satisfied Satisfied Nutral not satisfied
Interpretation:
10% of the respondents are highly satisfied about promotional activity
16% of the respondents are satisfied about promotional activity
69% of the respondents feel promotional activities are neutrl
5% of the respondents are not satisfied about promotional activity
This shows promotional activities are not effective.
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 66 66.0 66.0 66.0
No 34 34.0 34.0 100.0
Total 100 100.0 100.0
70
66
60
50
40
34
30
20
Frequency
10
0
Yes No
Interpretation:
66% of the respondents said events conducted by CCD influences them to visit
CCD.
34% of the respondents said events conducted by CCD not influence them to
visit CCD.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Birthday Party 26 26.0 26.0 26.0
DJ Show 34 34.0 34.0 60.0
Promotional Activity 35 35.0 35.0 95.0
Foos Fest 5 5.0 5.0 100.0
Total 100 100.0 100.0
40
35
34
30
26
20
10
Frequency
0
Birthday Party DJ Show Promotional Activity Foos Fest
Interpretation:
For 26% respondents Birthday parties influences.
For 34% respondents DJ show influences.
For 35% respondents Promotional activity influences.
For 5% respondent Food Fest influences.
This shows promotional activity and DJ shows are more effective.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Friendly 62 62.0 62.0 62.0
Very Friendly 11 11.0 11.0 73.0
Rigid 18 18.0 18.0 91.0
Blank(No Reaction) 9 9.0 9.0 100.0
Total 100 100.0 100.0
70
60 62
50
40
30
20
18
Frequency
10 11
9
0
Friendly Very Friendly Rigid Blank(No Reaction)
Interpretation:
62% of the respondents feel staff of CCD is friendly
11% of the respondents feel staff of CCD is very friendly
18% of the respondents feel staff of CCD is Rigid
9% of the respondents feel staff of CCD is Blank.
This shows staff of café is good.
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Cross Tabs
Count
How often you visit CCD
Once in
Every Day Once in Week fortnight Once in Month Total
Age of 15-20 7 2 6 15
Respondent 20-25 2 20 7 28 57
25-30 3 10 6 2 21
30-35 1 4 1 6
35-40 1 1
Total 5 39 19 37 100
60
28
50
40
30
7
How often you visit
20 20 Once in Month
6
6 Once in fortnight
10 10
Once in Week
Count
7
4
0 3 Every Day
15-20 20-25 25-30 30-35 35-40
Age of Respondent
Interpretation:
From above cross tabs, it can be interpretated that different age group people visit
cafe Coffee Day more in once in week, once in fortnight, once in month. The major
percentage of the customer who visit Café Coffee Day are in the age group ranging
from 20-25. Major part of the customer visit Café Coffee Day once in Week and once
in Month. This may not workout for the company. Therefore company has to take
customer relation management initiative to retain the old customer and also acquiring
new customers.
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How often you visit CCD * What factors influences you to come CCD Crosstabulation
Count
What factors influences you to come CCD
Coffee & Price &
Music Service Snack Promo Hospitality Environment Total
How often Every Day 1 1 1 2 5
you visit Once in Week 4 21 1 13 39
CCD Once in fortnight 2 3 6 1 7 19
Once in Month 4 21 1 11 37
Total 7 8 49 1 2 33 100
50
40
13
11
What factors influen
30
Environment
21 21
Hospitality
20
7 Price & Promo
3
4 4
0 Music
Every Day Once in fortnight
Once in Week Once in Month
Interpretation :
According to above cross table 21 % of the respondent visit monthly & 21% of the
respondent visit once in week for the purpose of coffee and Snacks.
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Count
Are you aware of
promotional Activity
conducted by CCD
Yes No Total
Occupation of Student 26 32 58
Respondent Working 9 24 33
Business 2 7 9
Total 37 63 100
70
60
32
50
40
30 24
26
20
Are you aware of pro
10
No
Count
9 7
0 Yes
Student Working Business
Occupation of Respondent
Interpretation
According to above cross table awareness in each segment (student, working,
business) is less. Percentage of aware respondent is less compare to the not aware
respondents. To give awareness café has to give some advertisements ( in café). CCD
can maintain customer data base so that they can send message or they can give call to
the customer.
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Age of Respondent * Which of the following Activity woulf influence you to visit CCD
Crosstabulation
Count
Which of the following Activity woulf influence you to visit
CCD
Promotional
Birthday Party DJ Show Activity Foos Fest Total
Age of 15-20 3 8 4 15
Respondent 20-25 15 16 22 4 57
25-30 6 6 8 1 21
30-35 2 3 1 6
35-40 1 1
Total 26 34 35 5 100
60
50 22
40
30
16
Which of the followi
20
8 Foos Fest
4 15 Promotional Activity
10 6
8
Count
DJ Show
6 3
0 3 Birthday Party
15-20 20-25 25-30 30-35 35-40
Age of Respondent
Interpretation:
22% of the respondent between age group 20-25 said promotional activity
influence them to visit Café Coffee Day
8% of the respondent between age group 15-20 said DJ show influence them to
visit Café Coffee Day.
8% of the respondent between age group 25-30 said promotional activity
influence them to visit Café Coffee Day.
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About Promo
After analyzing the survey, it was very much clear that the customers were seemed to
be more influenced by promotional activities. According to the survey 35% of the
respondents feel promotional activity influence them visit t Café Coffee Day.
Therefore accordance to customer’s response, it was decided to implement a promo
for 2 days that is on Saturday and Sunday and to check out whether sales will
increase, for the customer satisfaction regarding Promo.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Just a casual visit 7 25.0 25.0 25.0
I visit on every weekend 7 25.0 25.0 50.0
Promowas the purpose 14 50.0 50.0 100.0
Total 28 100.0 100.0
14
14
12
10
7 7
6
4
Frequency
0
Just a casual visit Promow as the purpose
I visit on every w ee
Interpretation:
From the above graph it can be interpreted that the majority (14) of the respondent
agreed that Promo was the purpose of their visit to Café Coffee Day. This is good sign
for promo. This clearly indicates that given an opportunity, consumer are willing to
visit Café Coffee Day. This evidently proves that well designed promo can attract the
customer and also increase the sales
Thus Café Coffee Day must take an initiatives to organize such more promos to
attract and to retain the customer..
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Cumulative
Frequency Percent Valid Percent Percent
Valid Excellent 10 35.7 35.7 35.7
Good 15 53.6 53.6 89.3
Average 3 10.7 10.7 100.0
Total 28 100.0 100.0
15
14
12
10
10
4
Frequency
3
2
0
Excellent Good Average
Interpretation
The major pert of the respondents (15) said that promo was good. And to some
extent customer (10) said that it was excellent. There were very few people who felt
promo was good but rater as average. This shows promo had given positive impact on
customer
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Would you expect Café Coffee Day to organize such more promotion
in future?
Would you expect Cafe Coffee Day to organize such more Promos in
future
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 25 89.3 89.3 89.3
No 3 10.7 10.7 100.0
Total 28 100.0 100.0
30
25
20
10
Count
3
0
Yes No
Would you expect Cafe Coffee Day to organize such more Promos in future
Interpretation:
25 of the respondent said that promotional activity inspires them to visit
Café Coffee Day. When its crystal clear that promotional activity inspire people to
visit café coffee day, CCD must take opportunity to attract the customer through
promos which can build trust and good Customer Relation.
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Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 27 96.4 96.4 96.4
No 1 3.6 3.6 100.0
Total 28 100.0 100.0
27
20
10
Frequency
0
Yes No
Interpretation:
27 of the respondent were satisfied about promo that they were a part of promo.
Several consumers even suggested conducting more promos in future. This positive
outcome shows that consumer were highly satisfied.
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Findings:
Students visit Café Coffee Day more
Age group between “20-25” visits Café Coffee Day more. They are the
potential customers.
39% of the respondents visit Café Coffee Day once in week and 37% of the
respondent visit café Coffee Day once in month.
57% of the respondent visit CCD refreshment Purpose
49% of the respondent feel coffee and Snacks influence them to visit CCD
63% of the respondent were not aware of the promotional activity Conducted
by CCD
76.8% of the respondent would like to know about promotional activity.
77% of the respondent would like to be part of any future event in CCD
78% of the respondent Satisfied about service
66% of the respondent feel event conducted by CCD influence them to visit
CCD
73% of the respondent feel Staff of CCD is friendly
36% of the respondent said promotional activity influences them, 34% said DJ
shows influences them.
Promo:
53.6% of the customer rated prom was good and 35.7% rated promo was
excellent.
89% of them expect more events in future.
96.4% of the respondent satisfied about promo.
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Suggestions
&
Recommenda
tion
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Conclusion
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Conclusion
The study helped me gain valuable insight in understanding how Customer Relation
Management can help in increase sales .The project “Customer Relationship
Management initiatives to increase sales at Café Coffee Day” has been a knowledge
gaining experience. I have been able to understand that designing of promotional
activity is an art and it help the company to increase the sales.
Awareness about promotional activity is less .Though it has not been advertised at a
large on television , still has long way to go before it can catch up with its
competitors. I hope my work becomes useful for company.
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Limitation:
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Questionnaire
Personal Details:
Name:
Address:
Occupation:
a) Student b) Working
c) Business d) Housewife
Age:
Contact No:
2) From how long you have been visiting Café Coffee Day?
a) From initiation b) From two years
c) From year d) from recently
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d) Price
e)
Promotional
activity
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10) Which of the following activities would influence you to visit CCD?
a) Birthday party
b) DJ show
c) Promotional Activities
d) Food Fest
e) Any other
12) What is your opinion about the staff of Café Coffee Day?
a) Friendly b) very friendly
c) Rigid c) Blank
Also give your suggestion how you would like the team to treat you?
13) Would you like to be part of Pastry festival, if conducted by Café Coffee Day
in near future?
a) Yes b) No
Feedback form
Name__________________
Age___________________
Occupation______________
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Thank You
Bibliography
Reference Books:
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Website:
www.cafecoffeeday.com
www.google.com
www.coffeeindustry.com
www.wikipedia.com
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