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Marketing Mix- Cafe Coffee Day

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Submitted By shilpadsouza31
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PRODUCT: As the name suggests, their primary product is coffee. Café Coffee Day (CCD) serves many different varieties of coffee. Adapting to the local hot climate, CCD has introduced the Tropical Iceberg, which has become one of their best-­‐selling coffees. There are also seasonal favorites such as Frappes in the summer and hot chocolate in the winter. Apart from this, they also have small snacks such as mini pizzas and burgers. They also have region specific food including biryani and sandwiches with Indian spices in the South and samosas in the North. They also have merchandise that caters to the younger generations. This includes caps, funky t-­‐shirts, etc. Apart from merchandise, they also sell coffee powder, filters, and machines. Not a brand just to be tied down by just coffee, they also sell tea bags in various flavors.

PRICE: As mentioned earlier in the SWOT analysis, a majority of the clientele that go to CCD lies in the age group of 15-­‐40. Therefore, they have a price that suits all kinds of pockets. The average price for a cup of coffee ranges between one to two dollars. Most of the menu items are within the five-­‐dollar range. The company follows a fair pricing policy and the prices have not fluctuated, other than due to government taxes. They also offer discounts on occasions and festivals as well as group discounts. This further reduction in price brings in more customers and benefits the company.

PROMOTION: CCD is ever involved in various sales promotions through various channels including: • Television – Various commercials are aired in between television shows. They have contests in relation to the show where viewers can win gift vouchers. • Radio – They have a very popular radio jingle containing their tag line, A lot can happen over coffee. • Outdoor Advertising – They have LCD monitors displaying their food products in prime locations in major cities. In smaller towns, they have large eye-­‐catching billboards. Of late, as they have opened outlets along highways, they have road signs providing the distance to the next outlet. This marketing strategy has proven to be beneficial as tired travelers and tourist vehicles all pit stop at these locations for refreshments. They also have advertisements on public buses with CCD vinyl. In major cities such as Mumbai, Bangalore, and Delhi, there are advertisements in the metro.

Homework #3 Product / Service Description according to the 4 P’s – Café Coffee Day Shilpa Isabella D’souza-1000534709



CCD has tie-­‐ups with many popular brands such as Levi’s, AirTel Telecom, etc. which are mainly to draw more attention from the youth. Apart from this, they also sponsor many popular concerts and events (such as award ceremonies), which have national exposure.

CCD also has a Café moment’s card that can be loaded and reloaded and used in the place of money. Depending on the amount, they offer bonus credit. On an individual’s birthday, they offer a free beverage of your choice if you hold this card. You can also choose between two beverages for every five times you swipe this card.

PLACE: CCD is located in prime and busy locations such as gas stations, shopping malls, theaters, crowded markets, and highway pit stops. As a large number of people visit these locations on a daily basis, all their outlets receive a healthy number of customers.

In terms of their supply chain their main provider of coffee is their own parent company (Amalgamated Bean Coffee Limited) that produce the coffee beans from over 10,000 acres of coffee estates along the Western Ghats area in Karnataka, India. The coffee is harvested, segregated (based on type), cured, roasted, and powdered in local factories and shipped to the outlets. Their tea products come from mainly Munnar, Kerala, which also undergoes similar processing. CCD also ties up with local vendors, bakeries, and confectionaries to provide snacks. The merchandising is outsourced to Freecultr-­‐ a popular brand that produces quirky designs. CCD first distributes all their products to major city outlets, and then redistributes them to their outlets in smaller cities and towns.

Print Media – They have their in-­‐house weekly city-­‐specific newspaper written by well-­‐known residents of that city. This attracts the attention of readers and also saves on purchasing magazines that would need to be purchased for coffee table reading. They also tie up with local vendors, using only recycled paper to print these newspapers. This reduces their costs further. Apart from this unique advertising scheme, they also have a lot of brochures that are inserted in daily newspapers, which are delivered to houses in a particular locality surrounding the outlet. On major festivals, they have full-­‐page promotional discounts in popular newspapers.

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