Detailed Case study on Café coffee day (CCD)
image credit - businesstoday.com
You must be familiar with café coffe day if you are a coffee lover . Recently the co – founder of the company , Siddhartha suicide due to immense pressure from his equity partner and money lenders .
You must be familiar with café coffe day if you are a coffee lover . Recently the co – founder of the company , Siddhartha suicide due to immense pressure from his equity partner and money lenders .
This
blogpost is dedicated to the biggest coffee chain of india , Café coffee day
and its origin .I have tried to curate all the information and am going to
provide a detailed case study .
How Café coffee day started
| image credit- yourstory |
You
must have ever visited CCD but I don’t think you are aware of the history of
CCD and how did it started . Well , it was VG Siddhartha from chikmangaluru who
introduced the trend of new beverage in india and transformed the beverage
Industry in India .
He
did his graduation from abroad and when he returned to India he was offered the
huge estate of coffee . His family owned these plantations from years and now
it was Siddhartha’s turn to hold this family offering . They had a business of
exporting these coffee to other countries but Siddhartha wanted to exercise his
new Idea of making these coffee reachable to Indians . This idea came into his
mind after meeting a german Businessman who was interested in buying his
quality rich coffee from him . He was inspired to hear the story of the initial
stages of company and how it started from 10ft shop in Hamburg.
Therefore
the first outlet of Café coffee day was introduced in 1996 with an investment
of 1.5 crore ! huge investment right ! It was opened at Brigade road , Banglore
, karnatka . After that there was no barrier to stop their growth.
This
was not easy at all ! They faced a lot of completion and difficulty . In a
country where people use to start their day with a sip of tea it was difficult
to bring the hangover of coffee among the tea lovers . Not only this but they
also have to compete with other brands like starbucks , barista and domestic
players .
How did CCD overcomed these challenges .
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| image credit - cafecoffeeday.com |
Makers
of CCD were quite innovative and could think well . They had choosen a series
of steps or concepts that ensured less rival with other and stand apart . They
adopted these series and named as 3 As . These A’s stand against for the
following things –
Affordability – a country
were even veggies are bought with immense negotiation , it was important for
CCD to make their dishes and coffees acceptable and affordable . They therefore
sold there coffee at a very affordable rate during there initial stages and was
the first choice for collage students .
Acceptabillity –CCD has served a lot to this country ,it act as
pulling factor to many freelancers and business deals. It is a place where
people just forget about all the futile thoughts and relax and unwind .
Marketing and advertising Startegy
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| Image credit - vcccircles.com |
CCD became more digital centric . They used digital
marketing for their promotion and youth was their target . There names where
rushed on social media . This came out to be very innovative idea . since each
and every person these days is using smartphones it came out to be successful .
They even organized a latte festival in which the coffee was presented with a
kind of art work that fascinates youth .
Information credit www.lapaas.com
STRENGTHS
* Good quality and tasty products
* Very High number of stores
* Huge brand equity among the youth
* Vertical integration
WEAKNESSES
* High pricing
* Wrong-site selection
* No strength to be recognized as a brand.
OPPORTUNITIES
* It turn out be one of the fastest-growing industry in Asia
* It was able to enter and attract international markets
* Rising income of people
* It turn out be one of the fastest-growing industry in Asia
* It was able to enter and attract international markets
* Rising income of people
THREATS
* Growing competition from global and local coffee chains
* Growing attrition rate
Business Expansion and Growth
VG
siddhratha who was afraid about the idea of selling 500 tones of coffee
ended up selling 6,500-7,000 tonnes of branded coffee, exports about 28,000
tonnes of coffee and sells another 2,000 tonnes locally each year and has a
curing capacity of 75,000 tonnes (largest in the country). Additionally, his
cafes attract at least 40,000 to 50,000 visitors per week.
The company started with
first store in Bengaluru 1996 is
presently operating more
than 1700 stores across 270 cities .
As of 2015; CCD makes
revenues worth $450
Million approx.,
employees 5000+ people, and has 1530
outlets across India,
Austria, Czech Republic, Dubai &
Karachi.
MILESTONES
AND AWARDS ACHIEVED
(Information Credit- www.lapaas.com)
1. Café Coffee Day won the “Times Food Award” under the category of “Best Coffee Bar” in 2007
2. Café Coffee Day won the Burrper’s Choice Award by users of
burrp.com in 2008.
3. Coffee Day Global won an award for “Retailer of the Year” by
Asia Retail Congress 2009
4. Café Coffee Day won the Indian Hospitality Excellence Award in 2010”
5. Café Coffee Day was ranked as 26th Most Trusted Service Brand in India and by Brand Equity (Economic Times) in 2012
6. Café Coffee Day won the Best Coffee Bar Award in 2012
7. Café Coffee Day was awarded “The NCPEDP – Shell Helen Keller Award 2013” by National Centre for Promotion of Employment for Disabled People.
8. Coffee Day Global got awarded for “Best Customer Service in Café Restaurant” by Star Retailer Awards 2013
9. Café Coffee Day won the Brand Excellence Award in the retail sector in 2013
10. Coffee Day Global was awarded the bronze prize by the Coffee Board of India for being the third-best exporter of green coffee in 2012
11. Coffee Day Global was awarded as “Retailer of the Year” for the retail excellence by ABP News in 2014
12. Café Coffee Day was ranked as 22nd Most Trusted Service Brand in India, as 27th Most Exciting Brand in India under the category of “Food Services” in Indian 2014
13. The Promoter, Mr. V G Siddhartha was awarded ‘ET Retail Hall of Fame’ for his contribution to the growth in the retail sector in 2014
4. Café Coffee Day won the Indian Hospitality Excellence Award in 2010”
5. Café Coffee Day was ranked as 26th Most Trusted Service Brand in India and by Brand Equity (Economic Times) in 2012
6. Café Coffee Day won the Best Coffee Bar Award in 2012
7. Café Coffee Day was awarded “The NCPEDP – Shell Helen Keller Award 2013” by National Centre for Promotion of Employment for Disabled People.
8. Coffee Day Global got awarded for “Best Customer Service in Café Restaurant” by Star Retailer Awards 2013
9. Café Coffee Day won the Brand Excellence Award in the retail sector in 2013
10. Coffee Day Global was awarded the bronze prize by the Coffee Board of India for being the third-best exporter of green coffee in 2012
11. Coffee Day Global was awarded as “Retailer of the Year” for the retail excellence by ABP News in 2014
12. Café Coffee Day was ranked as 22nd Most Trusted Service Brand in India, as 27th Most Exciting Brand in India under the category of “Food Services” in Indian 2014
13. The Promoter, Mr. V G Siddhartha was awarded ‘ET Retail Hall of Fame’ for his contribution to the growth in the retail sector in 2014
I
hope now you have an idea about its origin and how it functions. You may
comment down below and tell me something that I have missed .
