Cafe Coffee Day Marketing Strategy Case Study Solution

Headquartered in Bangalore, Karnataka Cafe Coffee Day is a subsidiary of Coffee Day Enterprises Limited. It is a perfect place for hanging out with friends and having a cup of coffee with them. Cafe Coffee Day is based in Chikmagalur.

It includes a factory that covers about 20000 acres. As per cafe coffee day global marketing strategy, it is the largest producer of Arabica bins in Asia and exports products to countries like Japan, Europe, and the United States of America.

The first Coffee Day outlet was opened on 11th July 1996 by the founder V.J Siddhartha. It gradually expanded it to other parts of India as well.

The mission of the Cafe Coffee Day

Coffee Day aspires to be the best Coffee chain offering a world-class Cup of coffee at affordable prices.

Cafe Coffee Day facts

• With an investment of 1.5 crores, V.J Siddhartha opened the first outlet One of the luxurious localities in Bangalore that’s Brigade City.
• With an investment of 10 billion the company logo, interior, and Layout of outlets got revamped in 2010.
• The current Logo indicated that the cafeteria was a place for hanging out with friends.
• Based on a business project on cafe coffee day, it serves 1.8 billion coffee cups in about 6 countries.
• Apart from India, Cafe Coffee day has outlets in countries like Austria, the Republic of Czechoslovakia, Malaysia, Egypt, and Nepal.

Competitive advantage in the marketing strategy of Cafe Coffee Day

Cafe Coffee Day serves a versatile range of coffee and other beverages. Indian coffee chain gained a competitive advantage due to a wide number of strategically placed outlets, reduction in price, and venturing 2-tier business in India and foreign countries.

These are marketing strategies that gave it a competitive edge over the rest of the Businesses in the industry.

CCD acquired brands like Coffee Day beverages, fresh N ground, Coffee Day square. Help the business to meet the evolving demands of the clients. It also helped CCD to stand apart from the competitors/

Market analysis in the marketing strategy of CCD

Coffee consumption in India is going at a rate of 6%, in comparison to that of the world that’s two-plus. Per capita consumption of coffee is 6 kg whereas that in India is 85 grams.

Based on cafe coffee day strategic analysis, Global coffee bars have a 5% penetration in India. It portrays the opportunity That is lying ahead of the business.

BCG Matrix in the marketing strategy of cafe Coffee Day

Cafe Coffee Day outlets have a question mark in the BCG Matrix as the competitors like Costa Coffee, Starbucks and Barista are trying to enter the market. Moreover, it is competitors are financially stronger than Cafe Coffee Day. The coffee chain is facing some financial losses, as it incorporates some of the wrongly placed outlets in Metropolitan cities of India.

Additionally, its concept outlets like Cafe Coffee Square, Coffee Day Beverages, and Fresh N Ground are not able to attract the intended audiences.

Brand equity in the marketing strategy of Cafe Coffee Day

CCD earned the recognition of being the most popular hangout destination of the youngsters, Global youth marketing forum, 2011.

It also won the hospitality excellence award for being the most popular Indian coffee joints.

As per the brand trust report, CCD was among India’s top 125 trusted brands.

Subsequently, it is the top 210 FMCG Brands in India.

Distribution in the marketing strategy of CCD

As for the café coffee day project reports, they have a total of 1530 in 29 states of India. As mentioned above, it extended its business to countries like Austria, Egypt (Cairo), Czech, and Dubai.

Marketing mix of Cafe Coffee Day

There is three marketing mix of Cafe coffee day and that is:

1. Price in the marketing mix

Supposing that cafe Coffee Day knows that customers belong to the age group of 15 to 24, it tries to keep the price of the beverages accordingly. The pricing strategy of café coffee day tries to satisfy the needs of the customers.

It sets the price of a coffee cup between 45 to 80. Starting from the first day that it opened the outlet in Bangalore, there have been minor changes in the pricing policy of CCD.

Changes in pricing policy have been due to the taxes imposed by the Indian government more than anything else.

2. Place in the marketing mix

There is no doubt that place is one of the driving factors in the success achieved by the Indian coffee retail businesses. Cafe Coffee Day has tried to open outlets in almost all the places where it finds some business opportunities.

The majority of the outlets are located in places like law colleges, petrol pumps, Entertainment centers, and High Streets.

3. Promotion in the marketing mix

It organized a promotional program around a popular show on Zee TV called Friends characters were often found visiting the coffee store.

It also collaborated with Channel V – a show called Get gorgeous.

Cafe Coffee Day also collaborated with other next-generation brands like Scooty, Levis, and Airtel (friends).

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