The case study was a part of the curriculum of Brand & Product Management course at the University of Groningen in 2015.

1. Café Coffee Day case [Team 8.3]
Roel Hengeveld 1894137 | Frida N. Minhas 2818604 | Branisa Milosavljevic 2512874
Mariam Talakhadze 2818353 | Niek van de Ven 1967312

2. Table of contents
¤ Presentation
¤ Café Coffee Day
¤ Industry Trends
¤ Marketing Mix
¤ The Consumer
¤ Solution
¤ Problem Statement
¤ Brand Associations
¤ Re-positioning
¤ PoPs and PoDs
¤ Recommendations

3. Presentation – Café Coffee Day
“To be the best cafe chain by offering a world class coffee
experience at affordable prices”
¤ Started in 1996 in Bangalore
¤ Café Coffee Day is the market leader (60% market share)
¤ First of its kind, the pioneer
¤ Huge web presence and fan subscription
¤ 80% of visitors in 15 – 29 age group

4. Presentation – Industry Trends
¤ Potential for cafés opening up
¤ Changing lifestyles, growing disposable income,
¤ Get-together becoming part of a lifestyle, turning into
statement
¤ Growing urbanization
¤ Industry growing with 25-30% annually
¤ Competition is rising
¤ Barista Lavazza, Starbucks, Costa Coffee

5. Presentation – Marketing Mix
¤ Little competition at first meant not a highly differentiated
marketing mix
¤ Current brand strategy situation
¤ Marketing Mix
¤ Place is the major advantage over competition
¤ Edge on Pricing aspect due to ownership of estates
¤ Product is similar to competitors
¤ Promotion was not used the first decade

6. Presentation – The Consumer
Ideal demographics for café outlets & retail coffee chains
¤ Typical characteristics:
¤ Age group of 15 – 25 in the habit of eating out
¤ Average spending at coffee retail shops of 200 INR = €2.60
¤ Busy schedule supports coffee integration into the lifestyle
¤ Culture of get-together and hanging out

7. Solution – Problem Statement
¤ Problem lies with brand associations & positioning
¤ No clear focus
¤ Wanting to provide premium coffee cafés
¤ Lowering prices at the same time to satisfy a broad set of
customers
¤ It is important for Café Coffee day to clarify its positioning
and build brand associations in order to differentiate itself
from the competition

8. Solution – Brand Associations
Mean score per brand
Category Questions
included
Non-loyal CCD Barista Lavazza
Price 1, 7, 17 3.01 3.07 3.15
Place 24, 27, 29, 31 3.32 4.24 3.89
Customer 2, 3, 4, 8, 18,
19, 26, 32
3.34 3.67 3.38
Product 5, 20, 21, 22,
25, 28, 30
3.42 3.8 3.98
Brand 6, 11, 12, 13 3.39 3.63 3.53
Social 9, 14, 16, 23, 27 3.35 4.29 3.76
Relax 9, 10, 15, 31 3.45 4.21 3.79
Note: some questions are placed in 2 categories, in that case scores count for both
categories.

9. Solution – Brand Associations
¤ Questionnaire can be
divided into smaller set of
categories
¤ CCD’s critical associations
are Place, Social and
Relaxation
¤ CCD is a place to hang-
out and relax, either alone
or together, whilst
appreciating the interior
and atmosphere

10. Solution – Brand Associations
¤ Implications for Café Coffee Day
¤ Price is perceived better for Barista Lavazza, despite CCD
competitive pricing
¤ Possibly due to lack of promotional effort
¤ Differences in Place are not as high as expected
¤ Competition gaining up, point of importance because it
is a critical association
¤ Notable differences between loyal and non-loyal customers
¤ Also lack of promotion could be the cause for this

11. Solution – Re-positioning
¤ Important to identify themselves and the
competition in order to re-position
¤ Brand values
¤ Affordable coffee
¤ Quality experience
¤ Relaxing atmosphere
¤ Café Coffee Day has some critical
associations, these need to be used to
differentiate itself more from the
competitors
¤ Creating a Brand Mantra
¤ ‘Social Urban Relaxation’

12. Solution – Re-positioning
¤ Identifying target market
¤ Students & young, urban professionals
¤ Tech-savvy population, therefore using social media
campaigns is a good way to promote the brand

13. Solution – PODs & POPs
POD
¤ Place / Location
¤ 1350 locations
¤ Price / Value for Money
¤ 10500 acres of own
estates
¤ Promotion
¤ Strong web presence
POP
¤ [Category] Product
Offering
¤ [Competitive] Promotion
¤ [Correlational] Price vs.
Premium Cafes

14. Solution – Recommendations
¤ Invest in TV Advertising
¤ Invest in Social Media and
Viral Marketing
¤ New flavors and
assortment in product line
¤ Journey of the Coffee
Bean
¤ From soil to cup
¤ “Beanie” the coffee
bean
¤ Coffee Day Celebration
¤ Altering Furniture
¤ Loyalty Program
¤ VIP Tables

15. Thank You!
We are ready for your questions