“CCD today has become the largest youth aggregator, and from a marketing standpoint, the success has come by focusing on the 3As: Accessibility, Affordability, and Acceptability.”– Bidisha Nagaraj, the Marketing president of Cafe Coffee Day.
Segmentation, targeting, positioning in the Marketing Strategy of Cafe Coffee Day –
Cafe Coffee Day segments its offerings across different conceptual outlets based on demographic factors and psychographics factors due to the fact that demographically the needs & wants to change to which available resources also plays a major role.
It targets youth in the middle and higher income namely students & working professionals.
Mission – “To be the best Cafe chain by offering a world-class coffee experience at affordable prices.”
Vision- “NOT Available”
Tagline-“A lot can happen over coffee”.
Competitive advantage in the Marketing Strategy of Cafe Coffee Day –
The vast range of food & beverages, strategically located outlets, reduction in prices, venturing out into tier-2 cities of India & foreign lands is some of the winning strategies which helped CCD to be ahead of its competitors. Its various subsidiaries like Coffee Day Fresh ‘n’ Ground, Coffee Day Square, Coffee Day Beverages etc. has helped the company to cater to customer growing needs and be competitively ahead at the same time.
BCG Matrix in the Marketing Strategy of Cafe Coffee Day –
Café Coffee Day flagship outlets are the question mark due to the fact that competitors like Starbucks, Barista, and Costa-Coffee are playing hard to capture the market. Also, relatively other player offerings are economical then CCD and due to its wrongly located outlets in some of the metros Cities Company is suffering from heavy loss.
Its other concept outlets like Coffee Day Fresh ‘n’ Ground, Coffee Day Square, Coffee Day Beverages etc. are also the question mark as these outlets are not able to attract targeted customers.
Distribution strategy in the Marketing Strategy of Cafe Coffee Day –
As of March 2015, there are 1530 outlets across 29 states of India. Cafe Coffee Day has also expanded outside India with its outlets in Austria (Vienna), Czech Republic, Dubai, Malaysia & Cairo, Egypt.
The Indian organized sector has a potential for around 5,000 cafés but fewer than 1,000 cafés exist currently.
Brand equity in the Marketing Strategy of Cafe Coffee Day –
Cafe Coffee day was named “most popular hangout joint amongst youth” at the 3rd Global Youth Marketing Forum in 2011. The Indian Hospitality Excellence Awards also named it “India’s most popular coffee joint” in 2011.
According to the Brand Trust Report 2012, Cafe Coffee Day was ranked 125th among India’s most trusted brands and subsequently, according to the Brand Trust Report 2013, Cafe Coffee Day was ranked 210th among India’s most trusted brands.
Competitive analysis in the Marketing Strategy of Cafe Coffee Day –
The entry of global players like Starbucks and Dunkin’ Doughnuts will expand the consumption level which will work in favor of all retail players but given the fact that CCD is now looking beyond just a mass market presence making a profit is becoming challenging for it. In fact, average realization per customer of CCD is much less than some of its competitors in the market space.
Market analysis in the Marketing Strategy of Cafe Coffee Day –
Coffee consumption in India is growing at 6% per annum compared to the global 2% plus. In India, the per capita consumption of coffee is around 85 grams while it is six kgs. in the US. Coffee bars have 5% penetration in India which itself portrays the opportunity lying ahead.
Customer analysis in the Marketing Strategy of Cafe Coffee Day –
The majority of CCD’s customers falls within the age group of 20-35 years. The group comprises of main college going students & young working professionals.