Coffe Cafe Industry- Barista vs Cafe Coffee Day Essays

Coffe Cafe Industry- Barista vs Cafe Coffee Day Essays Coffe Cafe Industry- Barista vs Cafe Coffee Day Essay Coffe Cafe Industry- Barista vs Cafe Coffee Day Essay Scoop of Ice Cream ,Flavored Syrups ,Cold coffee, Iced Eskimo ,Arabian Heights ,Tropical Temptation, Tropical Iceberg ,Coffee on rocksMochachillo, Cappachillo,Vegan shake, Mango Frappe, Pineapple Frappe, Strawberry Frappe. At the third level, CCD while offering their product maintain its quality, (quality beans, hygiene drinks), service, taste etc. For service, It is always their endeavor that their employees grow to be skillful and competent mangers. Towards this ends, each of them is exposed to some specialized training programs in the areas of Food Beverages, Coffee, Customer service and Managerial skills They do a series of taste tests before the product is launched. They also adopt changes after the launch through a series of feedbacks. Since cafes are owned by them, they can do these dipstick studies at any time. For example, when they were launching a spinach sandwich, consumers said that they would prefer a spinach-cottage cheese combo and they improvised to deliver what the customers wanted. In order to promote Sugar Free, CCD launched a â€Å"Low calorie menu† in association with the former for the calorie conscious. Customers can also have an even more relaxed cafe experience by leisurely browsing through an interesting selection of books and periodicals while sipping their favorite coffee. At fourth level, the various formats (music-cafes, lounges, highway points, etc) adopted by CCD would give ample scope of recreation and entertainment to the consumers. At the fifth level stands the potential product, which encompasses all the possible augmentation and transformation the product or offering might undergoing future. A time would come when the cafe will eventually become a community hub, with even cafes such as pop music lovers cafes, an intellectuals-only cafe, and maybe even a communists cafe coming up soon. CONSISTENCY Consistency is often called Key to Branding, especially so in the franchising model that CCD follows wherein, with the purchase of franchising the brand CCD is also bought. To keep up with the brand image and consistency the daily operations are not handed over to the franchisee but kept with the company which indulges trained and efficient workforce in keeping with the set standards. The promotional activities (branding, marketing, and promotions) are also looked after by Amalgamated Bean Coffee Trading Co. Ltd. (ABC), owners of CCD. Quality control is another important factor in consistency, as the saying goes, â€Å"Nothing kills a product quicker than great marketing†. . This hurdle of standardizing the coffee being served has been overcome by installation of exclusive coffee vending machines, which have a pre-set mechanism to make coffee; just the coffee beans, milk and water needs to be added to a certain level which is again monitored by the machine. LEVERAGE On Price-being the cheapest organized cafe chain in India, gave a relative pricing leverage to CCD, which hit really well with the price conscious Indian consumers. Cafe Coffee Days vending machines have a special niche in the market compared to competitors because Cafe Coffee Day machines offer filter coffee unlike the instant coffee offered by competitors brands. Through in-house sourcing of coffee beans, they have leveraged on raw material procurement cost while brand expansion on foreign shores has helped the company in leveraging on the sky rocketing real estates’ prices in Indian metros. At the same time, its recent co-branding with Cadbury’s has helped leveraging on resources further. For many teenagers CCD has become an important part of their lives. They see it as an extension of their own personality and even when they grow older they would keep revisiting it to relive some of their cherished memories (it pays to catch them young! ); thereby leveraging on its association with youth. CCD team has made a commendable effort in leveraging the brand potential and the retail opportunity by introducing many brand extensions like mint, cookies, t-shirts, coffee mugs, etc. nd they even pioneered innovative concepts like jukebox and newsletter which were quite a hit among the youth. Cafe Coffee Day does not believe in mass media promotions. But they are involved in all the areas of serious consumer passion. Though CCD was the first to enter the coffee retailing business in India, it failed to leverage on the first mover advantage in terms of increasing the number of outlets. By 2002, Barista which entered the market in 2000 had 105 branches. CCD had only 50 branches. However, the situation has reversed in the current scenario. According to company sources, the reason for its slow growth was the time taken to complete the back-end operations of its retail outlets. INTEGRATION CCD has integrated all the components of the marketing mix for the overall enhancement of the experience offered to the customer. They have used the promotional strategy to their utmost advantage. First and foremost they have used it as a profit center and they have focused on co-branding thereby leveraging on the image and the brand of the cooperating company to their advantage and for roping in new customers who might not have otherwise visited had it not been for the promotional co-branding. They have used the loyalty scheme as a CRM tool for maximum customer retention. By leveraging on the place they reduce the energy cost and the psychological cost for the consumer thereby increasing the value delivered. By effectively blending the marketing mix they have created a strong brand equity for themselves. BARISTA VS CAFE COFFEE DAY – A COMPARATIVE STUDY Barista has experienced frequent changes in the management while CCD has not gone through any such second order changes in the management structure. The crowd coming into Barista can be divided into the corporate set (forming largest share), retired persons and senior citizens, families and college goers. On the same hand, CCD mainly targets the age group of 16-30 years. CCD has huge expansion plans to foray into the cities and towns in the country. It is planning to increase the number of outlets to 700 by the end of this year. The number of outlets of CCD is 435 compared to 160 outlets of Barista. Barista has not yet planned to go for huge expansion because of high real estate prices restricting them to a few outlets and focusing on the upper middle and higher income group. For example it has come up with new concepts of Barista Creme and Barista Espresso targeting the niche segment of true coffee lovers and offering a wider range of food and beverages, apart from luxurious comfort which will help them to increase the revenue contribution from food. CCD makes use of its own brand of coffee beans while Barista uses beans that are imported and roasted abroad. CCD has different private caterers in each city while Barista has a national caterer for the eateries available in each of their outlets. CCD generates revenue by having advertisements and promotion posters in their outlets while Barista does not do so. CCD has forayed into aviation hospitality, and the synergy with the low-cost airlines (SpiceJet) makes perfect sense for both parties involved. Barista on the other hand sco uts for premium tie-ups with MNCs (operating their cafeterias). Ambience and the settings (interiors) are contrasting for CCD and Barista. While the former is more relaxed and minimal, being pleasing at the same time; the latter has a more formal setting. As the two cafe houses target different set of consumers, the same is reflected in their pricing strategies and the tie-up partners they choose to associate with. CCD has a more reactive approach towards competition, as it opens an outlet wherever Barista does, hoping to lure Barista’s customers with a cheaper menu which has proven to be quite successful for CCD. REFERENCES retailindustry. com cafecoffeeday. com indiantelevision. com coffeeresearch. org indiacoffee. org barista. co. in thehindubusinessline. com/catalyst/2003/10/30/11hdline. htm brandintegrity. com/brandintegrityhomepage tatainvestment. com/0_media/news/media/index. htm coopdevelopmentcenter. coop/fairtrade/coffeecri