PROJECT REPORT ON EMPIRICAL STUDY ON CAFÉ COFFEE DAY, VIDYAVIHAR STATION FROM CONSUMER AND RETAIL PERSPECTIVE

Transcription

1 PROJECT REPORT ON EMPIRICAL STUDY ON CAFÉ COFFEE DAY, VIDYAVIHAR STATION FROM CONSUMER AND RETAIL PERSPECTIVE CARRIED OUT AT CAFÉ COFFEE DAY VIDYAVIHAR, MUMBAI SUBMITTED BY PALLAVI SRIVASTAVA ROLL NO 55 IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR MASTER IN MANAGEMENT STUDIES UNDER THE MENTORSHIP OF PROF. RAMKISHEN AND GUIDANCE OF PROF. BRAJESH BOLIA UNIVERSITY OF MUMBAI K.J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH VIDYANAGAR, VIDYAVIHAR (E), MUMBAI P a g e

2 DECLARATION Pallavi Srivastava, a student of MMS- Marketing, semester IV of University of Mumbai of batch at do hereby declare that this report entitled Empirical Study On Café Coffee Day, Vidyavihar Station From Consumer And Retail Perspective has been carried out by me during this semester under the mentorship of Prof.Ramkishen and under the guidance of Prof. Brajesh Bolia as per the norms prescribed by the University of Mumbai, and the same work has not been copied from any source directly without acknowledging for the part/ section that has been adopted from published/ non-published works. I further declare that the information presented in this project is true and original to the best of my knowledge. Date: Place: Mumbai PALLAVI SRIVASTAVA 2 P a g e

3 CERTIFICATE I PROF. RAMKISHEN, hereby certify that Miss. Pallavi srivastava studying in second year MMS- Marketing, batch at has completed the project Empirical Study On Café Coffee Day, Vidyavihar Station From Consumer And Retail Perspective under my guidance, as per the norms prescribed by the University of Mumbai, in the academic year I further certify that the information presented in this project is true and original to the best of my knowledge and belief. Date: Place: Mumbai PROF. RAMKISHEN 3 P a g e

4 CERTIFICATE I PROF. BRAJESH BOLIA, hereby certify that Miss. Pallavi srivastava studying in second year MMS- Marketing, batch at has completed the project Empirical Study On Café Coffee Day, Vidyavihar Station From Consumer And Retail Perspective under my guidance, as per the norms prescribed by the University of Mumbai, in the academic year I further certify that the information presented in this project is true and original to the best of my knowledge and belief. Date: Place: Mumbai PROF. BRAJESH BOLIA 4 P a g e

5 ACKNOWLEDGEMENT It is with a sense of gratitude, I acknowledge the efforts of entire hosts of well wishers who have in some way or other contributed in their own special ways to the success and completion of this project. I would like to thank my Project Mentor at Prof. Ramkishen who has been very helpful in the completion of this project. I sincerely express my thanks to my Project Guide Prof. Brajesh Bolia for his valuable guidance, intellectual suggestions and constant help in a lot of various ways during project course. Also, I express my sincere thanks Prof. Ralston for sharing his experience with Café Coffee Day as an employee. 5 P a g e

6 Table of Contents History... 7 Positioning... 7 Advertising, Sales Promotion and Segmentation Strategy... 8 Generic Competition Introduction Types of Location Catchment area Pricing Café moment Structure Expansion Strategy Vidyavihar, CCD (Meeting Point) Store Layout BCG matrix Customer Survey Detail Analysis of the Customer Survey Recommendations to improve the Vidyavihar, CCD References Appendix P a g e

7 History About Café Coffee Day Café Coffee Day is a division of India s largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day. This is a Rs. 300 crore ISO 9002 certified company. Its chief customers are in USA, Europe & Japan. Based in Chickmaglur, home of some of the best Indian Coffees, Coffee Day has its business spanning the entire gamut of coffee consumption in India. Its different divisions include: Coffee Day Fresh n Ground (354 Coffee bean and powder retail outlets) Coffee Day Xpress (341 Coffee Day Kiosk) Coffee Day Take away (7000 Vending Machines) Coffee Day Exports Café Coffee Day Coffee Day Perfect (FMCG Packaged Coffee) division Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Till about late 1990 s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five start coffee shop visitor. As the pure (as opposed to instant coffee) coffee café culture in neighboring international markets grew, the need for a relaxed and fun hangout for the emerging urban youth in the country was clearly seen. 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. Positioning Café Coffee Day, at its inception in 1996 was the vanguard of a café culture in India. At a time when the country was growing well economically and young India enjoyed higher spending power, CCD as it s 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. 7 P a g e

8 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 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 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 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 colors, a larger font 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 color green endorsed the long heritage of CCD in growing coffee. Advertising, Sales Promotion and Segmentation 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: 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 The launch of Liril Orange soap by HLL was conducted in Café Coffee Day TVS Scooty tied up with CCD for events in the coffee bars and at malls on Valentine s Day in February CCD was the official ground partner for the Channel V Get Gorgeous contest IN-FILM ADVERTISEMENTS: Some Telugu and Tamil films with prominent brand placement 8 P a g e

9 Hindi films- It started with Bas Yun Hi and then conscious advertisement decisions were made for Khakee, Main Hoon Na, Kyun Ho Gaya Na and Mujhse Shaadi Karoge Youtube ads- Sit down for love song All these movies were targeted at young movie-goers, teenagers and people looking for lighthearted entertainment. These are much the same kind of people who are likely to visit Café Coffee Day. SALES PROMOTIONS: Merchandising Every CCD stocks merchandise ranging from coffee mugs, T-shirts, caps, bags, coffee filters, mints, different flavors of coffee powders, tea and cream, wafers and biscuits. It also merchandises promotional materials for other brands it associates with 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% 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 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 survey. The most reputed media house in the country (The Economic Times) has brought the voice of the people! They say Cafe coffee day leads as far as trust is concerned. Cafe Coffee Day is much loved and trusted. Cafe Coffee Day has been ranked No.2 in Brand Equity, 9 P a g e

10 India's most trusted list of food services brands. Cafe Coffee is at position 29 in so far as service brands in general. Cafe Coffee Day is up four positions since 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 Indirect Competitors: Eateries like McDonald 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 Global Competitors: Starbucks would pose a stiff competition for even an established brand like CCD 10 P a g e

11 Introduction This project is to study the feasibility of CCD, Vidyavihar from both consumer and retail perspective. There are total all 3 CCDs in the vicinity which includes 2 CCDs in Ghatkopar East and one Shop-in-Shop CCD in Shoppers Stop, Chembur West. The study includes comparison of the Vidyavihar CCD with that of the other 3 CCDs. The objectives of the project are: i. To understand the current model used by CCD at Vidyavihar Station ii. Understand the customer and retail perspective of the outlet iii. Feasibility of the outlet in terms of location based on consumer survey iv. Suggest promotional strategies to improve the footfall based on consumer survey Types of Location The CCDs can be divided into 6 formats depending upon the area, place and types of customer it will serve. These 6 formats are as follows: 1. Stand Alone: This type of location is basically any stand-alone building that can be tucked away in a neighborhood location or right off a busy street. Depending on the landlord, there are generally no restrictions on how a retailer should operate his business. It will probably have an ample parking and the cost per square foot will be reasonable. Unlike the attached retail locations where customers may wander in because they were shopping nearby, the retailer of a free standing location has to work at marketing to get the customer inside. 2. Shop-in-Shop 11 P a g e

12 The shop in shop retail concept is where a brand owner or retailer takes space in another retailer s store and fits it out to provide selling space dedicated to that secondary company s products. Similarly, CCD has shop in shop format in Crossword to give the experience of a book café. This makes it a place where book lovers can go and have a sip of coffee in a peaceful and cozy ambience while reading their favorite genre of books. CCD is also there inside few Shopper s stop to change the shopping experience altogether. While the girls shop, guys can chill inside CCD and read Café Chronicle. 3. Corporate Format In this format CCDs are open inside a corporate campus or corporate offices. This is a very popular format as the corporate people can have small coffee meetings in CCD. This type of format is quite popular in metro cities and gaining popularity in tier 2 and tier 3 cities as well. 4. Travel Hubs The CCDs are open in travel hubs to make it convenient place for travelers to hang out while they wait for their transportation. These types of formats are usually seen on Airports, Petrol Pumps, Bus stands etc. The target group is travelers and tourists. And thus takeaway format also works here. 5. Highway Café Here the CCDs are placed on highway to attract the traffic on highway and people going through highways. Here the logo and the coffee fragrance plays the major role of attracting the customer. People halt to take a sip of coffee to remain awake while driving through a long route. 6. Airport Café 12 P a g e

13 Here the CCDs are placed inside the airport for passengers waiting for their flights. Catchment area During the location process, retailers are usually faced with the problem of defining the area they wish to move into. This is called the Catchment area. The term, catchment area, is borrowed from the geography and describes the sphere of influence around an area of interest or importance. For retail location strategy, the retail catchment area is the geographical area from which a store draws its customers. It can also refer to the shopping area of any retail outlet such as shopping malls, factory outlets or shopping centers. A retail catchment area is the sphere of influence around a retail attraction from which the retailers is likely to draw customers. In general, catchment areas are illustrated using maps which may be to scale or simply drawn as a representation of the actual area (fig). A typical catchment area map will show a main shopping center or store at the focus of the map, with other centers pinpointed to illustrate the pull of these attractions. The reason why other centers are shown is that these create a draw and can distort the potential of the main center as customers may go elsewhere. Pricing 13 P a g e

14 CCD follows Differentiated Pricing Strategy. CCDs have value proposition of all kinds equal to society, especially, when they open in mid-market. It is different for different outlets. The pricing depends on consumer potential and what are the input costs that go into running that store, including rentals. CCDs have different pricing across different retail points. Pricing in CCD is not determined by competition but by customers. CCDs have a good understanding of the cafe consumer which has been detailed into their business strategy including pricing. Prices also vary with rentals and demographics. The pricing of CCD is classified into following types: P0: This format of pricing is used in tier 3 or tier 4 areas. The items are cheaper than other formats. This is based on the income level of the catchment area. P1: This format of pricing is used in tier 2 or tier 3 areas. The items are cheaper than rest of the formats but higher than P0. P2: This format of pricing is used in tier 2 or tier 3 areas. The items are cheaper than rest of the formats but higher than P0 & P1 P3: This format of pricing is used in tier 2 or tier 1 areas. The items in menu are expensive than the other formats but less expensive as compared to P4, Lounge and Square formats. P4: This format of pricing is for plush areas where the income of catchment area is higher. Lounge: The lounge format has its own pricing format called the lounge format. It serves to premium customers at premium price. Square: The square format also uses its own premium format of pricing. This serves to elite class of the society. The pricing is based on the ambience and experience delivered. Café moment 14 P a g e

15 Cafe Coffee Day (CCD), launched 'Cafe Moments' - the very first pre-paid card usable at all CCD outlets. It is a tribute to coffee loyalists of the country. 'Cafe Moments' are prepaid cards designed to enable cashless transactions at all the CCD outlets. Customers can top-up their cards with denominations ranging from Rs. 100 to Rs on an ongoing basis, enabling ease of use on the purchase of food, beverages and merchandise at their favorite CCD outlets. What's more, the cards are designed to be a great gift item that can be given out to and family members at any occasion. Corporates can also use it as an ideal fun gift for their employees. The card takes away the hassle of carrying cash to CCD and allows you to completely focus on what you're there for -- enjoying the food, beverage and the company. With the ease of payment that comes with the card, it becomes a must-have for all the CCD frequenters. Structure The organizational structure of CCD is as given below: 15 P a g e

16 An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization s actions. The structure of Café Coffee Day is very systematic and well defined. The structure might change as per management s discretion. The level of responsibility and the number of stores under the person increases as he/she moves up the hierarchy. Expansion Strategy The different ways to expand the business are as follows: 1. Increase your sales and products in existing markets. This is obviously the easiest and most risk-free way to expand. This tactic may require a bigger location, different pricing strategies, new/improved marketing techniques - but it will be in a customer group with whom you already have a relationship. If you get off track, your present customers will let you know! 2. Introduce a New Product. You have a successful product/service that you have been offering for some time and have been collecting data, customer feedback and doing the tinkering on your newest product. This is a normal evolution in business, not just an expansion tactic. When 16 P a g e

17 positioned as adding value and being responsive to customer needs, this can be a relatively riskfree way to expand. 3. Develop a New Market Segment or Move into New Geography. Both of these areas require cost outlays and uncertainty. Moving your products into new categories or demographic segments requires market research, beta testing and new marketing strategies, i.e. a message for a 16-year old will differ that one for a 60-year old. Management of new remote locations may absorb significant time and attention. While the risks are more, the payoffs are large - and for most businesses looking to expand, these two methods of expansion are inevitable. 4. Start a Chain. A restaurant, retail or service business that's easily reproduced and can be run from a distance is all you need to launch a chain. But, you must be cognizant of what made the first location a success - was it location, your staff or you? If it is just you, then duplication is only possible through detailed operations plans and sharing staff between locations. You will need to duplicate the plan of your first location while meeting increased customer demands. Starting a chain gives your current staff a crack at "management" duties, training opportunities and an opportunity to expand their horizons. 5. Franchise or License. While it's a quick way to grow, a franchise agreement can cost (minimally) $100,000 to prepare. You will need to be a good teacher, be able to prepare the training manuals (preferably in more than one language), be very organized and willing to travel. Licensing can carry less risk, but demands giving up a certain amount of control. Licensing a patent, trademark or industrial design means that you sell manufacturing, distribution or production rights. 6. Join Forces / Strategic Alliance. A merger or acquisition combines the best of two companies, expands your customer base, increases intellectual capital and delivers operational efficiencies. The trick is finding the right partner. These partners may be new distributors, but be forewarned large retailers exact heavy performance expectations. Can you perform to the letter of your promise? Can you meet high standards of quality (ISO, or the like) and adapt your procedures to meet just-in-time delivery? Due diligence and strong contractual arrangements are essential here. 17 P a g e

18 7. Go Global. You can decide to go global in a number of ways. Growing markets, rising consumer spending, improved business climate--sometimes the only place to find these things is overseas. Doing business internationally can take the form of exporting, licensing, a joint venture or manufacturing, but whatever forms you choose, the basic business rules apply: assess customer demand, gain legal and accounting assistance, protect intellectual property and obey regulations. More difficult to understand than the regular business affairs may be the cultural nuances - ignore them at your peril. In some countries, particularly those in Asia, a local partner is virtually a requirement. Your first stop should be your target country's economic development agency, which can help marshal local resources to get you on your way, possibly with a small financial boost. Be patient. Growing your business globally can take more than one "sightseeing trip" to the region. Here are some steps in going global, from easiest to hardest. Café Coffee Day follows the expansion strategy mixed with penetration strategy to make sure that there is at least one CCD after very 5-10 minutes walk. This may seem like cannibalization to some strategists but end of the day makes it difficult for the potential entrants to enter the market. Thus the revenue of CCD increases tremendously. The same strategy they adopted in Vidyavihar and Ghatkopar area of Mumbai where they have total 4 CCDs. These CCDs are: 1. Meeting Point CCD, Vidyavihar Station 2. CCD, Vikrant Circle 3. CCD, Dosa Plaza 4. Shop in shop CCD inside Shopper s stop CCD is also expanding itself by going global. All this will lead CCD to compete with all the major players of coffee retail in the world. 18 P a g e

19 Vidyavihar, CCD (Meeting Point) Vidyavihar CCD is called the Meeting Point CCD. It is located outside the Vidyavihar East station. The area is crowded by auto rickshaw queues and people travelling by train to their offices and colleges. The place is near Somaiya Campus. The main reason to start Meeting Point CCD is due to the space constraints and also because of the type of the area which includes college students and corporate people. The Vidyavihar, CCD has competition not only from the indirect competitors like dominoes but also from other 2 CCDs in the vicinity. It needs to take care of all the sources of competition to sustain in market. Though it is situated at a place from where thousands of people pass through but the environment outside the store is not attractive enough to pull the crowd. This is one of the main reasons for the entire study. It is a unique case where location serves as both advantage and disadvantage. Store Layout The store is located very close to Vidyavihar station with area of the store as square feet. There is a sitting place for 21 people and total 8 tables in the CCD. There is one washroom inside the CCD for customers. There are total 3 air conditioner and 4 charging points. They play latest English music in the outlet. The employees are well dressed. There are usually 2 persons in the outlet. The store timing is 9 am 11 pm. This is the only CCD in the vicinity with Chicken items in the menu. This may be because it being the traveling hub might attract lot of travelers with its variety in the menu. It was also observed that the chairs were worn out and untidy and the outside environment is also not very pleasant with auto rickshaw queue and slum dwellings. 19 P a g e

20 All the merchandises were not available which gives a very wrong impression. There was no café chronicle newspaper kept in CCD. Café Chronicle is CCD s own newspaper. The store manager s ignorance can drastically affect the overall image of CCD brand. BCG matrix It is clearly visible that Vidyavihar CCD is seen as a Question mark on the BCG matrix. This is because of various factors put together. The factors considered for the decision making includes: 1. Location 20 P a g e

21 2. Catchment Area 3. Space availability 4. Product availability 5. Cleanliness 6. Footfalls Etc. Thus it is very important to take strict action to improve the Vidyavihar CCD to increase the revenue else it will eat the revenue of other beneficial CCD stores. The improvements can be in the areas of customer satisfaction, customer loyalty, space utilization, promotions, cleanliness, maintenance of the store etc. Customer Survey To understand what the existing customers feel about Vidyavihar CCD as compared to other coffee shops and other CCDs in that area, I conducted a small survey with sample size of 40 respondents. These 40 people had been chosen very wisely to get genuine and accurate response for the Meeting Point CCD, Vidyavihar. The customers were asked questions related to coffee shops and then were asked how they felt about CCD as a brand and how they see Meeting Point CCD, Vidyavihar. This questionnaire helped to understand where this CCD was lagging as compared to other CCD outlets. The questions asked were as followed 1. Name three coffee shops that you know 2. How often do you visit a Coffee Shop? 3. How much money do you spend at a Coffee Shop? 4. How many people do you go to a coffee place with? 5. Why do you go to a coffee shop? 6. What do you look for when you choose a coffee shop to go to? 21 P a g e

22 7. Why would you go to a Café Coffee Day? 8. What do you normally eat or drink in a Café Coffee Day? 9. Rate the following factors for Café Coffee Day, Vidyavihar station 10. Ambience of CCD, Vidyavihar 11. Are you aware of the different formats cafés CCD is coming up with? 12. Will you prefer Take Away format for CCD, Vidyavihar Station? 13. Do you think that CCD, Vidyavihar should come up with special students discount? 14. Would you increase your frequency of visit if special discounts are offered? 15. Do you have any suggestions to improve Café Coffee Day, Vidyavihar Station? Detail Analysis of the Customer Survey Sample Size: 40 people Age of the Respondents AGE OF THE RESPONDENTS 3% Age Number of respondents 22 YEARS 7 23 YEARS 4 24 YEARS 7 25 YEARS YEARS 8 27 YEARS 1 20% 33% 17% 17% 10% 22 YEARS 23 YEARS 24 YEARS 25 YEARS 26 YEARS 27 YEARS This clearly shows that coffee culture is popular mainly amongst people within the age group of years. 22 P a g e

23 Thus it becomes very important to plan the promotion and changes in the business strategies keeping in mind the target group the coffee house is catering to. From the graph we can observe that maximum respondents who visit coffee shops fall in the age group of years. This age group doesn t belong to the teenage group. It more mature, young and career oriented target group. Gender of the Respondents GENDER OF THE CUSTOMER VISITING COFFEE SHOP Gender Number of respondents MALE 23 FEMALE 17 MALE 43% FEMALE 57% From the pie chart we can see that 57% of the respondents visiting the Coffee Shops to spend some leisure time and have a good time are males and 43% are females. 23 P a g e

24 Frequency of Visit Frequency of Visit No. of Respondents 2-3 times a week 2 Once a week 4 Once in two weeks 12 Once a month 11 Very rarely 11 HOW OFTEN THE CUSTOMER VISITS COFFEE SHOP Very rarely Once a month Once in two weeks Once a week 2-3 times a week Number of Respondents From the graph we can conclude that maximum people visit coffee shops once in 2 weeks. 11 out of 40 visit coffee shops once in a month and 11 rarely visit coffee shops. Amount Spent By Respondents on Coffee Shops Amount Spent (in Rupees) No. of respondents Less than Greater than AMOUNT SPENT BY CUSTOMER (IN RUPEES) Less than Greater than 120 0% 10% 65% 25% 24 P a g e

25 From the graph we can conclude that 65% of the people spend more than Rs.120/- in a coffee shop. This makes it a very flourishing industry and has lot of scope. And it is very interesting to note that less than 1% of the people spend less than Rs.60/- in a coffee shop. Group Strength Visiting Coffee Shop Group Strength No of respondents Alone People People 4 More than 8 People STRENGTH OF THE GROUP VISITING COFFEE SHOP number of respondents From the graph we can see that maximum people visit coffee shop with 2-4 people group. And negligible number of people visit coffee shop alone or with more than 8 people. 25 P a g e

26 Reason for visiting the coffee shop No. of Reason for visit respondents Only to have coffee 2 To enjoy my private time 5 31 For group activities 1 Others 1 REASON FOR VISITING COFFEE SHOP NO OF RESPONDENTS The graph shows that maximum people visit Coffee Shop so that they can catch up with their buddies. Thus the main purpose of visiting coffee shop is to have a nice time with and colleagues. 26 P a g e

27 Reason for visiting Café Coffee Day Ranks CONVENIENCE/ ACCESSIBILITY AMBIENCE QUALITY OF FOOD PRICE SERVICE RANK RANK RANK RANK RANK The respondents were asked to Rank the factors like convenience/ accessibility, ambience, quality of food, price, service in the range of rank 1 rank 5 where rank 1 is of highest importance and rank 5 is of low importance. It was found that accessibility were of very important for the respondents. Service was second most important factor followed by Price. This helps us to conclude that location plays a very crucial role for CCD. The main reason for people visiting CCD is because it is accessible and is in the vicinity. 27 P a g e

28 Items usually consumed in Café Coffee Day WHAT PEOPLE CONSUME IN CCD Coffee Smoothies and similar drinks Desserts and confectionery Eatables like sandwich, samosas etc Coffee,desserts, confectionery & eatables Coffee and eatables Coffee,desserts, smoothies, confectionery & eatables 5% 5% 11% 10% 23% 28% 18% Type of Item No Of Respondents Coffee 11 Smoothies and similar drinks 7 Desserts and confectionery 9 Eatables like sandwich, samosas etc 4 Coffee, desserts, confectionery & eatables 2 Coffee and eatables 4 Coffee, desserts, smoothies, confectionery & eatables 3 28 P a g e

29 From the responses collected we can see that maximum number of people go to CCD for having Coffee, Dessert and confectionery. Factors important for the consumers in Vidyavihar Café Coffee Day FACTORS RATED FOR VIDYAVIHAR CCD Poor Average Satisfactory Good Excellent Staff behavior Value for money availability of preferred items delivery time quality of food drinks ambience quality of food Location Excellent Good Satisfactory Average Poor The factors that are rated good for vidyavihar café coffee day are quality of food drinks, staff behavior and value for money. Thus people find that vidyavihar CCD is the place where staff is well mannered and polite and the quality of drink is also up to the mark. 29 P a g e

30 Few people ranked the location and delivery time as poor. This shows that consumers are dissatisfied with the delivery time and it needs improvement. Awareness about different formats of Café Coffee Day Awareness No. of Respondents Yes 8 No 32 AWARENESS ABOUT DIFFERENT FORMATS OF CCD YES NO 20% 80% The above survey shows that 80% of the people despite visiting café coffee day are not aware about the different formats of it. It is very important to spread awareness about its various format to attract footfall. Interest in take away format for Vidyavihar CCD Interested In Take Away for Vidyavihar, CCD No. of Respondents Yes 24 No 16 INTERESTED IN TAKE AWAY FORMAT FOR VIDYAVIHAR CCD YES NO 40% 60% 30 P a g e

31 From the survey conducted we found that 60% of the people prefer take away format for the Vidyavihar CCD. This is because of its vicinity from the station. So it becomes easy for the students and other people to grab the parcel and catch the train, instead of sitting inside the café and having coffee. Special Discount Offer in Vidyavihar CCD Special Discounts should be given No. of Respondents Yes 38 No 2 SPECIAL DISCOUNT SHOULD BE GIVEN IN VIDYAVIHAR CCD YES NO 5% 95% From the responses collected we found that 95% of the respondents feel that special discounts should be given in Vidyavihar CCD to increase awareness and footfall. They feel its lagging from dominoes and other outlets nearby in terms of special offers. 31 P a g e

32 Recommendations to improve the Vidyavihar, CCD After conducting the detail consumer survey and retail visit to the four café coffee days nearby it was found that there are many ways in which we can improve the footfalls in Vidyavihar Station CCD. 1. Converting the format to Take Away: This will be a major and very bold decision for the company to take. The reason for suggesting this format is because the CCD is situated near Vidyavihar station. So the people who pass through this CCD are usually in a hurry and converting to take away can attract busy crowd. 2. Introducing Student Discount They can come up special offers for Students considering the fact that its near Somaiya Campus. This can increase the footfall to some extent and also increase the visibility of the Meeting Point CCD. 3. Introducing Café Coupon This will be a special coupon as shown below. This coupon will be valid for a month. This will ensure 4 visits by the customer in a month. On his first visit he will just be greeted and not get any free stuff but will have to pay for his food. At the time of billing the staff will stamp on Visit 1 to indicate the completion of first visit. During second visit the customer will get a Coffee Free! And a stamp of completion of the visit similarly for the other visits till he/she gets free samosas. 32 P a g e

33 4. Making good use of Café Moments Prepaid Card for Vidyavihar CCD 'Cafe Moments' are prepaid cards designed to enable cashless transactions at all the CCD outlets. Customers can top-up their cards with denominations ranging from Rs. 100 to Rs on an ongoing basis, enabling ease of use on the purchase of food, beverages and merchandise at their favorite CCD outlets. The suggestion is to give 10%-20% offs on bill only when the card is used in CCD Vidyavihar. This will give lot of visibility and increase the footfalls. This will also promote the Café Moments card. 5. Increasing the table space at Vidyavihar CCD There are total 21 chairs and 8 tables in Meeting point CCD. This makes it very congested and disturbing. The lack of sufficient space makes it very difficult for the staff to serve and customers to walk. So they should decrease the number of chairs and try to make it more spacious. 6. Introducing Happy Hours Meeting point CCD can improve the footfalls by introducing happy hours during day time to ensure that people visit CCD. 7. Sponsoring Events in colleges Since the Meeting point CCD is closer to Somaiya Campus they can win customers by sponsoring various management events like Melange, Nostalgia, Metamorph, National Retail Summit etc. This way they can conduct various competitions to promote the store. And can give away coupons that can be used only in Meeting Point CCD. 33 P a g e

34 References articles.economictimes.indiatimes.com retail.about.com Experience of Prof. Ralston, Ex-employee of CCD 34 P a g e

35 Appendix Questionnaire- CCD, Vidyavihar station Name: Age: Sex: Occupation: 1. Name three coffee shops that you know a. b. c. 2. How often do you visit a Coffee Shop? a. 2-3 times a week b. Once a week c. Once in two weeks d. Once a month e. Very rarely 3. How much money do you spend at a Coffee Shop? (in Rupees a. Less than 40 b c d. Greater than How many people do you go to a coffee place with? a. Alone b. 2-4 c. 4-8 d. More than 8 5. Why do you go to a coffee shop? a. Only to have coffee b. To enjoy my private time c. d. For group activities (group studies, presentations, meetings 6. What do you look for when you choose a coffee shop to go to? (Rank in order of preference 1- highest, 5-lowest a. accessibility b. Ambience c. Service d. Quality of food e. Price 35 P a g e

36 7. Why would you go to a Café Coffee Day? ( You can choose more than one a. accessibility b. Ambience c. Service d. Quality of food e. Others (please specify 8. What do you normally eat or drink in a Café Coffee Day? ( you can choose more than one a. Coffee b. Smoothies and similar drinks c. Desserts and confectionery d. Eatables like sandwich, samosas etc 9. Rate the following factors for Café Coffee Day, Vidyavihar station ( Tick the choice most applicable Excellent Good Average Satisfactory Poor Staff behavior Value for money Availability of preferred items Delivery time Quality of food drinks Ambience Quality of food Location 10. Ambience of CCD, Vidyavihar ( tick preference a. Comfort and feel relaxed / just comfortable/ congested b. Lighting and color bright / sufficient / dull c. Entertainment engaging / I don t mind it/ irritating d. Table space adequate / sufficient / not enough 11. Are you aware of the different formats cafés CCD is coming up with? a. Yes b. No 12. Will you prefer Take Away format for CCD, Vidyavihar Station? a. Yes b. No 13. Do you think that CCD, Vidyavihar should come up with special students discount? a. Yes b. No 14. Would you increase your frequency of visit if special discounts are offered? a. Yes b. No 15. Do you have any suggestions to improve Café Coffee Day, Vidyavihar Station? 36 P a g e

37 Responses Collected NAME AGE SEX OCCUPATION pallavi 25 FEMALE STUDENT Ruchira Parikh 25 FEMALE STUDENT Nikita Chitalia 23 FEMALE STUDENT Dhwani Vibhakar 22 FEMALE STUDENT Vibhav Shukla 27 MALE STUDENT Mridul Jain 25 FEMALE STUDENT anupama jain 25 FEMALE STUDENT Amit 23 MALE STUDENT Gautam Lulla 24 MALE STUDENT karan shah 26 MALE STUDENT hinal 22 FEMALE STUDENT jinang kothari 25 MALE STUDENT Pranav ved 24 MALE STUDENT DigZ 26 MALE STUDENT Ankit Bavishi 25 MALE STUDENT kanav karol 24 MALE STUDENT Delnaz Elavia 22 FEMALE STUDENT hardik p shah 25 MALE STUDENT Jiten Pujara 25 MALE STUDENT Rohan Nayak 26 MALE STUDENT Kritika goyal 22 FEMALE STUDENT Keith 26 MALE STUDENT Yashvardhan Chamaria :) :) :) 23 MALE STUDENT Neha Goyal 23 FEMALE STUDENT Jigar 26 MALE STUDENT aayushi 22 FEMALE STUDENT niyati 24 FEMALE STUDENT Tilottama Sanyal 26 FEMALE STUDENT varun jalan 24 MALE STUDENT nikesh shah 26 MALE STUDENT namrata 22 FEMALE STUDENT sunil rao 25 MALE STUDENT saurabh muley 24 MALE STUDENT bhavik solani 26 MALE STUDENT dewang doshi 25 MALE STUDENT karan karol 24 MALE STUDENT janeesha doshi 22 FEMALE STUDENT hardik mahesh shah 25 MALE STUDENT poorva mishra 25 FEMALE STUDENT poonam 25 FEMALE STUDENT 37 P a g e

38 Name 3 coffee shops that you know ccd, baristaa, mocha CCD, Barista, Costa coffee How often do you visit a Coffee Shop? 2-3 times a week Once a month How much money do you spend at a Coffee Shop? Greater than 120 '2-4 Greater than 120 '2-4 CCD,starbucks,barista Once a week '2-4 ccd, barista, costa Once in two Greater than coffee weeks 120 '2-4 CCD, Barista, Greater than Starbucks Once a month 120 '2-4 CCD, Barista, Coffee Greater than beans Very rarely 120 '2-4 CCD, Barista, Coffee Greater than beans Very rarely 120 '2-4 CCD, Mocha, barista Once a week '4-8 Barsita, CCD, Costa Coffee Once a month '2-4 starbucks,costa,barista,gloria Once in two Greater than jean,ccd weeks 120 '2-4 Once in two Greater than costa, starbucks, ccd weeks 120 '2-4 Once in two Greater than ccd, barista, starbucks weeks 120 '2-4 Star bucks, ccd, Greater than barista Very rarely 120 '2-4 starbucks, ccd, gloria Greater than jeans, Once a month 120 '2-4 CCD, Costa Coffee, Greater than Starbucks Once a month 120 '2-4 Barista,cafe coffee Once in two day,costa coffee weeks '2-4 Barista, Cafe coffee Once in two Greater than day, Gloria jeans weeks 120 '2-4 ccd, costa coffee, barista Very rarely '4-8 CCD, Barista, Mochas Once a month '2-4 Costa Cofee, CCD, Barista Very rarely '2-4 Starbucks, barista, Greater than cafe coffee day Once a month 120 '2-4 Cafe coffe day, barista, Costas coffee Very rarely '2-4 Barista, Cafe Coffee Day, Gloria Jeans Very rarely '2-4 How many people do you go to a coffee place with? Why do you go to a coffee shop? To enjoy my private time For group activities (group studies, presentations, meetings etc) To enjoy my private time To enjoy my private time Only to have coffee also when i dont have any other place to sit n talk :P :P 38 P a g e

39 Mocha, Latte & Capicunno Very rarely Greater than 120 '2-4 Barista, Cafe Coffee Greater than Day, Mocha Very rarely 120 '4-8 barista, CCD, Gloriajeans Once a week '2-4 barista, CCD, Gloriajeans Once a week '2-4 CCD, Barista, Once in two Greater than Starbucks weeks 120 '2-4 Barsita, CCD, Costa Coffee Once a month '2-4 starbucks,costa,barista,gloria Once in two Greater than jean,ccd weeks 120 '2-4 Once in two Greater than costa, starbucks, ccd weeks 120 '2-4 Once in two Greater than ccd, barista, starbucks weeks 120 '2-4 Star bucks, ccd, Greater than barista Very rarely 120 '2-4 starbucks, ccd, gloria Greater than jeans, Once a month 120 '2-4 CCD, Costa Coffee, Greater than Starbucks Once a month 120 '2-4 Barista,cafe coffee Once in two day,costa coffee weeks '2-4 Barista, Cafe coffee Once in two Greater than day, Gloria jeans weeks 120 '2-4 ccd, costa coffee, barista Very rarely ' times a Greater than ccd, baristaa, mocha week 120 '2-4 CCD, Barista, Costa Greater than coffee Once a month 120 '2-4 To enjoy my private time Only to have coffee To enjoy my private time 39 P a g e

40 What do you look for when you choose a coffee shop to go to? [a. accessibility] What do you look for when you choose a coffee shop to go to? [b. Ambience] What do you look for when you choose a coffee shop to go to? [c. Service] What do you look for when you choose a coffee shop to go to? [d. Quality of food] What do you look for when you choose a coffee shop to go to? [e. Price] P a g e

41 Why would you go to a Café Coffee Day? accessibility, Quality of food Ambience, Service accessibility, Ambience, Service accessibility, Quality of food accessibility, Ambience, Service, Quality of food accessibility accessibility Ambience accessibility, Service accessibility accessibility, Quality of food, value for money accessibility What do you normally eat or drink in a Café Coffee Day? Coffee, Eatables like sandwich, samosas etc Coffee Coffee, Desserts and confectionery Coffee, Smoothies and similar drinks, Desserts and confectionery, Eatables like sandwich, samosas etc Coffee Desserts and confectionery, Eatables like sandwich, samosas etc Desserts and confectionery, Eatables like sandwich, samosas etc Coffee Coffee Coffee, Smoothies and similar drinks, Desserts and confectionery, Eatables like sandwich, samosas etc Coffee, Desserts and confectionery, Eatables like sandwich, samosas etc Coffee, Desserts and confectionery 41 P a g e

42 accessibility accessibility accessibility accessibility accessibility accessibility, Service, Quality of food accessibility, Can spend more time there accessibility, Quality of food accessibility Price accessibility, Ambience Service, Reasonable accessibility, Price accessibility, Quality of food accessibility, Quality of food accessibility accessibility, Service accessibility Smoothies and similar drinks, Desserts and confectionery Coffee, Smoothies and similar drinks Coffee Smoothies and similar drinks Coffee, Smoothies and similar drinks Coffee, Desserts and confectionery Coffee, Desserts and confectionery Smoothies and similar drinks Coffee Smoothies and similar drinks Coffee Smoothies and similar drinks, Desserts and confectionery Coffee Coffee, Eatables like sandwich, samosas etc Coffee, Eatables like sandwich, samosas etc Coffee, Desserts and confectionery Coffee Coffee, Smoothies and similar drinks, Desserts and confectionery, Eatables like 42 P a g e

43 accessibility, Quality of food, value for money accessibility accessibility accessibility accessibility accessibility accessibility accessibility, Service, Quality of food accessibility, Quality of food Ambience, Service sandwich, samosas etc Coffee, Desserts and confectionery, Eatables like sandwich, samosas etc Coffee, Desserts and confectionery Smoothies and similar drinks, Desserts and confectionery Coffee, Smoothies and similar drinks Coffee Smoothies and similar drinks Coffee, Smoothies and similar drinks Coffee, Desserts and confectionery Coffee, Eatables like sandwich, samosas etc Coffee 43 P a g e

44 Rate the following factors for Café Coffee Day, Vidyavihar station [Staff behavior] Rate the following factors for Café Coffee Day, Vidyavihar station [Value for money] Rate the following factors for Café Coffee Day, Vidyavihar station [Availability of preferred items] Rate the following factors for Café Coffee Day, Vidyavihar station [Delivery time] Rate the following factors for Café Coffee Day, Vidyavihar station [Quality of food drinks] Satisfactory Average Poor Satisfactory Satisfactory Average Good Average Average Good Good Good Good Good Good Good Good Good Good Good Good Good Average Good Good Satisfactory Average Poor Poor Average Satisfactory Average Poor Poor Average Good Average Excellent Excellent Good Good Excellent Good Excellent Good Good Good Good Good Good Good Excellent Excellent Excellent Good Satisfactory Average Satisfactory Poor Average Good Average Good Good Good Excellent Average Average Average Excellent Good Good Good Good Good Satisfactory Average Average Average Average Average Good Average Average Good Good Good Good Good Good Poor Good Good Good Poor Good Excellent Average Average Average Average Good Average Average Average Poor Good Average Poor Poor Excellent Good Good Average Average Good Excellent Average Good Excellent Average Average Good Good Good Average Good Good Satisfactory Good Average Good Good Satisfactory Good Average Good Satisfactory Average Average Good Excellent Good Excellent Good Good Good Good Good Good Good Excellent Excellent Excellent Good Satisfactory Average Satisfactory Poor Average Good Average Good Good Good Excellent Average Average Average Excellent Good Good Good Good Good Satisfactory Average Average Average Average Average Good Average Average Good Good Good Good Good Good Satisfactory Average Poor Satisfactory Satisfactory Average Good Average Average Good 44 P a g e

45 Rate the following factors for Café Coffee Day, Vidyavihar station [Ambience] Rate the following factors for Café Coffee Day, Vidyavihar station [Quality of food] Rate the following factors for Café Coffee Day, Vidyavihar station [Location] Good Poor Good Average Average Average Good Good Average Good Good Satisfactory Average Good Average Average Average Good Average Average Good Average Average Excellent Good Good Good Average Average Satisfactory Excellent Excellent Excellent Satisfactory Average Good Average Good Poor Good Average Satisfactory Good Good Good Poor Satisfactory Poor Average Average Excellent Good Good Good Satisfactory Poor Poor Good Average Excellent Average Average Excellent Average Average Good Average Good Average Good Good Good Satisfactory Good Poor Satisfactory Good Good Satisfactory Good Good Satisfactory Satisfactory Average Good Good Good Average Average Satisfactory Excellent Excellent Excellent Satisfactory Average Good Average Good Poor Good Average Satisfactory Good Good Good Poor Satisfactory Poor Average Average Excellent Good Good Good Good Poor Good Average Average Average 45 P a g e

46 Comfort and feel at Vidyavihar, CCD Lighting and color at Vidyavihar, CCD Entertainment at Vidyavihar, CCD Table Space at Vidyavihar, CCD P a g e

47 Are you aware of the different formats cafés CCD is coming up with? Will you prefer "Take Away" format for CCD, Vidyavihar Station? Do you think that CCD, Vidyavihar should come up with special students discount? YES YES YES YES NO YES YES YES NO YES YES YES NO NO YES YES NO NO YES YES NO NO YES YES NO NO YES YES NO NO YES YES NO YES YES YES NO YES YES YES YES YES YES YES NO NO YES NO NO NO NO NO NO YES YES NO NO YES YES NO YES YES YES NO NO YES YES YES NO NO YES YES NO NO YES YES NO YES YES YES YES NO YES YES NO NO YES YES NO YES YES NO NO YES YES YES NO YES YES YES NO NO YES NO NO NO YES NO YES YES YES NO NO YES YES YES NO YES YES YES YES YES YES YES NO NO YES NO NO NO NO NO NO YES YES NO NO YES YES NO YES YES YES NO NO YES YES YES NO NO YES YES YES YES YES YES NO YES YES YES Would you increase your frequency of visit if special discounts are offered? 47 P a g e

48 Pictures of vidyavihar CCD 48 P a g e