PROJECT REPORT

ON
CAFÉ COFFEE DAY

ADITI GUPTA (71)

KISHAN GUPTA (72)
VINITA HEMDEV (73)
MANOJ JAIN (74)
JUGAL JOSHI (75)
Acknowledgement
 Contents
Corporate Profile
Mission
Divisions
Key features
Menu
Online Sales
Competitors
7Ps of Marketing
Marketing strategy
Distribution Strategy
H.R. activities
Cost sheet
Analysis of the cost sheet
SWOT analysis
Some interesting facts
Recognitions & Rewards
Conclusion
 Corporate Profile
• Café Coffee Day (C.C.D.) is India’s largest coffee
conglomerate, the Amalgamated Bean Coffee Trading
Company Limited (ABCTCL). Popularly known as
Coffee Day was formed.
• Its origin lies in the golden soil of Chikmagalur that a
traditional family owned a few acres of coffee estates,
which yielded rich coffee beans.
• V.G.Siddhartha Hegde – Founder & Chairman of
Amalgamated Bean Coffee Trading Co.
• His family owns 10,000 acres of coffee plantation farms in
Karnataka.
• Venu Madhav – Head of Operations at C.C.D.
 Important Events
YEAR EVENTS
Since 1875 Rich coffee – growing tradition started
Early 1990s Opportunity arose with the deregulation of the coffee
board in Coffee Day began exporting coffee to the
connoisseurs across USA, Europe & Japan

1996 C.C.D. was first set-up at Brigade Road in Bangalore

2000 Exported more than 27000 tonnes of coffee valued at

US$ 60 m to countries like U.S.A., Europe & Japan
and, for the second time in its short career of 7 years
retained the position as the largest coffee exporter of
India.
 YEAR EVENTS

2002 C.C.D. owns & operates 213 cafes in all major cities
of India

2008 C.C.D. expanded to 595 cafes in 100 cities of India, 3 in

Vienna, 2 in Karachi & targets to expand till 950 cafes in
a year from 2008

2010 Earning revenue of US$45 million, jobs 5000

employees, owns 999 cafes in 135 cities
 Mission

To be the best Café chain by

offering a world class coffee
experience at affordable prices.
 Divisions of Coffee Day
• Coffee Day - Fresh & Ground
• Café Coffee Day
• Coffee Day – Vending
• Coffee Day - Xpress
• Coffee Day – Exports
• Coffee Day – Perfect
• Café Coffee Day is the part of India’s largest coffee
conglomerate named Coffee Day, Rs.200 crore ISO 9002
certified company.
 Key Features of C.C.D.
• Pioneers of the Café Concept in India with the its first Café at
Brigade Road, Bangalore in 1996. This Café was opened as a Cyber
Café (first of its kind) but later, with the burst of cyber cafes it
reverted to its core competency…. Coffee.
• • Essentially a youth oriented brand with majority of its customers
falling in the 15-29 year age bracket.
• • Each café, depending upon its size attracts between 400 and 800
customers daily.
• • It is a place where customers come to rejuvenate themselves and be
themselves.
• • USP of the Brand:
• Affordable Price.
• Coffee – Winner of Platinum, Gold, Silver and Bronze medals at the
India Barista Championship 2002.
Menu
Small Eats Big Eats
Chicken Burger
Veg Samosa
Chicken Salad
Sandwich
Chicken Hot Dog

Garden Salad
Sandwich
Choco Brownie
Spinach Corn
Sandwich

Choco Doughnut
Veg Burger

Cookies
Zingy Pizza
Sandwich
Mocha Muffin
Zingy Pizza
Sandwich
Sweet eats Sundae
Carrot Nut Cake Choc Hola

Chocolate Ice Cream

Choco Black Forest

Cookie Medley
Chocolate Fantasy

Dark-Passion
Mystery Mousse

Fruity Bliss
Sizzle Dazzle Brownie

Mocha Choco Delight

Vanilla Ice Cream

HOT COFFEE

HOT TEA
COLD COFFEE

CHOCO-LATTES
FROST TEA
FRUITEAZERS
 Online Sales
Online Sales by C.C.D. is also one of the revenue-
earning sources. Products are displayed on its website
www.cafecoffeeday.com .
 Customers may pay through VISA or Master Card or
PayPal. Following are the products that are displayed
on its website:

 Coffee Powder:
• Arabicaah Coffee powder---Rs.170
• Charge Coffee Powder---Rs.130
• Dark Forest Coffee Powder---Rs.150
• Perfect Coffee Powder---Rs.150
• Snacks:
• Potato Stix - Masala---Rs. 200
• Mints (Pack of 50)---Rs. 100
• Go Bar Caramel (Pack of 5)---Rs. 100

• Chocolates & Cookies:

• Dark Fantasy Chocolates (48gm)---Rs. 125
• Double Choco Chip Cookies (150gm)---Rs. 110
• Honey & Oat Meal Cookies(150gm)---Rs.110

• Others:
• C.C.D. Gift Voucher---Rs.1000
• C.C.D. Aura Candles---Rs. 150
• Happy Mugs (Multicolour)---Rs.125
• French Press Coffee Maker (Black)---Rs. 275
 Competitors
 Direct Competitors:
• Barista
• Cafe Mocha
• Costa Coffee
• The Coffee Bean & Tea Leaf
• Qwicky
• Baskin Robbins
• Juice Cafe
 Indirect Competitors:
• McDonald
• Haldiram
• Café Nescafe
 Global Competitors:
• Star Bucks
 7P’s of Marketing
Product:
• C.C.D. product mix constitutes a wide range of products that appeal primarily to
Indian coffee and snack lovers. Products have a decided Indian taste to it - be it
food or coffee. Most of the eatables have been adopted to meet the Indian taste
buds like samosa, biryani, masala sandwich, tikka sandwich etc. Thus they have
been trying to capture the Indian taste along with classic coffee.
• The best selling item in summer is frappe, which is coffee and ice cream blended
together. The young people favour it. In winter it is cappuccino. Their
merchandising includes funky stuff like t-shirts, caps etc.

Price:
• Considering that C.C.D. knows its major customer lies in the age bracket of 15-
29, it has tried to derive a policy whereby it can satisfy all its customers. The
price for a cup of coffee ranges from Rs.17 to Rs.54. From the time it first
started its operations, there has been only minor changes in the pricing policy of
C.C.D. The changes have been more due to the government taxes than any thing
else.
 Place:
• C.C.D. looks to cater to their target market with strategically located outlets.
• Their outlets are generally located in High Street/ Family Entertainment
Centres.
• Considering their generic appeal, there are Barista outlets located in and
around Malls, Cinemas, Colleges, Offices, etc. This endorses their brand
image of a café that appeals to coffee lovers of all ages.

 Promotion:
• C.C.D. does not believe in mass media promotions. But they are involved in
all the areas of serious consumer passion.

 Process:
• The order process at C.C.D. is based on self-service, where the customer
goes to the counter to place his order. Whereas they have a flexible delivery
process, where they wait for some time for the customer to pick up the order
but if the customer takes too long then the order is delivered on his table.
 People:
• People at C.C.D. believe that “People are hired for what they know but
fired for how they behave”. Motivation and personal skill are laid
emphasis upon.

 Physical Evidence:
Logo, Colours, Images:
• C.C.D. has used bright red and green colours in its logo. RED stands for
leadership and vitality. It also stands for passion (… for coffee). The
GREEN stroke harks back to their coffee growing heritage and the coffee
plantations that they own.
• Café is noticeably larger than the rest of the text inside the logo box. This
denotes that Café Coffee Day pioneered the café concept in India way
back in 1996. C.C.D. would like to own the word “café” in the minds of
its customers.

Old Logo New Logo

 Advertising Strategy
 C.C.D. does not look at mass media as a viable area of advertising. It
is done through following ways:
• Below-the-line activities as done by Levi, Liril soap (HUL), TVS
Scooty, Channel V Get Gorgeous contest.
• In-Film advertisement as in Telgu & Tamil films; Bollywood
movies(Bas Yu Hi, Khakee,Main Hoon Na, Kyun Ho Gaya Na,
Mujhse Shaadi Karogi); Silver Screen (Kahani Ghar Ghar Kii).
• Merchandising.
• Café Beat- an in-house magazine.
• Tie-up with World Space & Microsense to provide satellite
connectivity.
• C.C.D.’s guide to Active Holidays.
 Distribution Strategy
• Each outlet of C.C.D procures raw materials from near-by places but
coffee beans reach the outlets from Chikmagalur via head
distributor & local warehouse. Each outlet serves 400 -800
customers daily depending upon its size & location. This may be
shown as:
Chikmagalur

Bangalore (Head Distributor, New Delhi (Head Distributor,

South India) North India)

Local Warehouse Local Warehouse

Outlet Outlet Outlet Outlet Outlet

Outlet
 H.R. Activities
• With the boost in the number of their retail outlets, C.C.D. had to
concentrate on the quality and quantity of their human resource in
order to meet up with the set standards.
• They make sure that the employees all across the country are well
trained and provide consistent services at every outlet.

 Recruitment & Selection:

• Selection procedure for senior managers is long-drawn and rigorous
but on the other hand for shop floor workers it is simple and short.
• People at C.C.D. believe that “People are hired for what they know
but fired for how they behave”.
• Motivation and personal skill are laid emphasis upon.

 
 Particulars
Cost Sheet
Amount Amount
Opening Stock of Raw Material Nil  

Add: Purchase of Raw materials 2,80,000

Add: Purchase Expenses 12,300
Less: Closing stock of Raw Materials 34,000
Raw Materials Consumed 2,58,300
Direct Wages (Labour) 80,000
Work Manager's Salary 30,000
Direct Charges Nil
Prime cost (1)   3,68,300
Add: Over Heads 5,000  
Employee welfare 5,000
Repairs 20,000
Indirect Wages Supervisor Salary 9,500

Drawing Office Salary Nil

License Renewal 10,000
Factory Asset Depreciation Nil
Water Charges 8,000 49500
Works cost (2)   4,17,800
Add:- Administration Over Heads:-   
Office Rent 1,03,000
Asset Depreciation 3,000
WiFi 3,495
Insurance 950
Other Office Expenses 500
Cost of Service (3)   5,28,745
Add: Opening stock of Finished Goods ***  
Less: Closing stock of Finished Goods ***
Cost of Goods Sold   ***
Add:- Selling and Distribution OH:- 2,500  
Cost of Sales (5)   5,31,245
Profit (balancing figure)   268,755
Sales   800,000
 Analysis of Cost Sheet
• Assuming no opening stock at the starting of the Month as
it deals with perishable products.
• Raw Material cost account for 35% of the Sales is obtained
as fact.
• Closing stock at end of the month is Rs 34,000.
• Prime cost at the end of the month lies Rs 3,68,300.
• Total Overhead cost will come out to be Rs 49,500.
• Total Work Cost at the end of the month is Rs. 4,17,800.
• Administration Overhead at the end of the month including
(Office rent, Asset depreciation , Wi-Fi, Insurance & Other
Expenses) will come out to be Rs 1,10,945.
• Total cost of Service at the end of the month will be
Rs. 5,28,745.
• Selling & Distribution cost for the entire month is
calculated to be Rs 2,500.
• Total Cost of Sales at the end of the month will be
Rs 5,31,245.
• Total Sales for the entire month will come out to be
Rs 8,00,000.
• At the end of the month, net profit was calculated
to be Rs 2,68,755.
 SWOT Analysis
Strengths Weaknesses
•Products of extremely good quality and •Lacks strength to maintain brand loyalty.
taste. •Poor ambience and decor. CCD outlet
•Its a youth oriented brand. served prime space for advertising and
•It produces/grows the coffee it serves promotions.
hence reducing the cost. •Many of the CCD stores are incurring
•USP of brand is its considered a highly loses due to wrong site selection.
affordable brand.  
 
 

Opportunities Threats
•Coffee cafe industry is one of the fastest •Competition with other coffee cafes like
growing industry in Asia. Barista, Mochas, Qwicky.
•More people like to visit CCD for
informal meetings .
•Gaining international recognition.
 
 Some Interesting Facts
• All-Day Refresher, most selling product of C.C.D. whose
selling cost is Rs. 100 has a prime cost of just Rs. 20 & rest
all is profit to C.C.D.

• C.C.D. does not use sugar as raw material in any of its

preparations but uses milk cream & Sugar Free as raw
material.

• Ice-creams & other eatables are out-sourced from Amul &

local vendors of reputed brands.

• It is unique in its distribution way where coffee beans are

cultivated in its farms at Chikmagalur.
 Recognition & Rewards
 C.C.D. won 8 of 10 awards at India Barista Championship 2009.
The awards are:
1. Platinum Award.
2. Best Espresso.
3. Best Cappuccino – Felix Daniel Mathew, Manager Food &
Beverages, C.C.D., Bengaluru.
4. Most Promising Talent – Adwiti Tarkire (C.C.D., Trainer).
5. Silver Award – Sam Rozario (Asst. Manager, Level 1, C.C.D.,
Chennai).
6. Bronze Award.
7. Best Signature Beverage.
8. Best Barista Technique – Naveen Kumar CA(Trainee Area Manager).
 Bags the ‘Best Coffee Bar’ title for the 3rd consecutive year.
 Top honours at Coca Cola Golden Spoon Awards 2010.
 Conclusion
• C.C.D. is the fastest growing Café in the country.
• It is providing tough competition to its competitors
by satisfying its customers with great café
experience.
• “A lot can happen over coffee” message has
touched the hearts of youngsters who are the
largest consumers of C.C.D.