Monday, 11 June 2012

A lot can happen over coffee | Cafe Coffee Day | Vishal Verma – FT13488




Whether it’s a bunch of friends looking for a cool hangout junction or a couple looking to spend some quality time together away from the prying eyes of neighborhoods or just some coffee connoisseurs wanting to get their daily share of hit, CCD is what comes to anyone’s mind at the very first thought. So I thought why not study their Service offerings and gather keen insights into what goes inside into making this Coffee café a major hit among its target audience.


Some of the major data-points and findings that came across are detailed below.

Location   : It’s strategically located at the Mamallapuram bypass junction on the right hand side of the highway while going towards Great lakes. People coming from various directions (like those going from Chennai to Pondicherry and vice-versa, tourists visiting mamallapuram and its beaches and crowd from nearby colleges and some others treading the ECR) meet here. Thus it’s difficult to not notice the only CCD in this area which inturn become the target audience for this outlet.

Store-layout  & Design:






v  There is a big enough sitting area just as enter inside from the main door. There is also a different area ear marked for those coming in groups. Here it seems they’ve embedded a nice logic by using their astute observations over a period of time and so they’ve tweaked their store layout accordingly.
v  What came to light after talking with the store manager was that around 70% of the customers that arrive come either in pairs or as couples. Precisely because of this they’ve 13 setups of tables and cushioned chairs which makes up of approx. 60% of their sitting space. This ensures that they never run out of appropriate place for their chunk of customer base.
v  Separate Smokers zone – Many people wish to savor a smoke with a hot cappuccino and so they’ve a separate area just outside the store (it’s properly shaded and well lit-up during the night time) to cater to them.
v  Entertainment – There is a big plush LCD screen where they screen major sports events like IPL, Cricket series or major Football leagues. This keeps the sports enthusiasts glued to the tv, inturn increasing the time spent/customer inside the store and thus it helps them garner extra business by catering to this segment of the customers. Also to give the entire ambience a ‘Feel good factor’, a light music being played in the background can always be heard.


Product Mix and pricing :

Interesting details came across relating to their pricing strategy of their most selling product i.e. ‘Cappuccino’
Price of Cappuccino in Mamallapuram outlet – INR 63
Competitor’s price in Mayajaal (Barista) – INR 80
Price Differential
Price of Cappuccino in a Plush Chennai outlet – INR 70
Price of Cappuccino in a Mumbai outlet – INR 85
Price of Cappuccino in an Airport outlet – INR 120-125

Service menu and other products

v  Regular menu – Though it’s a regular menu you would find anywhere in any CCD outlet, but it’s pretty exhaustive and comprises of some of the best coffee-based products which CCD takes a pride ranging from the very favorite Cappuccino, Café Frappe to Devil’s own, Aztec and Ethiopian. They specifically ensure that any of these products tastes the very same as it may taste in any outlet say Mumbai or Delhi. They’ve perfected this art over a period of time and take special pride in this.

v  Peripheral products – There are thirst quenchers being branded as WTF (what the fun) which come in flavors of Must mango, tangy fusion and pome cherry fusion and it appears to be new entrant since it was being displayed on the reception-cum-service desk only for the past 1 month. For those looking to grab a light complimentary snack, they’ve Spicy nibbles and banana bites. Some more display products include In-house Coffee brands like Mysore Royal, Dark Forest, Arabican, Perfect and Charge which are marketed by Amalgamated holdings Ltd. For the cookies lovers they have them in some amazing mouth-watering flavors like Choco bliss, Dark Magic and Honey oatmeal.

As did Store manager opine, the entire idea of Food items and a range of peripheral products is to increase their channels of revenue. A rough estimate of their possible revenues from each product offering is given as below.




Customization :

v  They also believe in  tweaking their offerings so as to suit different set of customers. Since they get a lot of foreigners as visitors or tourists who like Black coffee in particular, they’ve intentionally made the formula to suit their palattes and have also taken care of the pricing accordingly.
v  In food items also you would find Veg. puffs for example made in south Indian style (like Chettinaad etc.) to cater to the local customers.



Customer Service:

They promote Self-service and also have interesting display messages to motivate people to get their orders themselves from the service desk.











USP of Café Coffee Day   :

Apparently their USP is to ‘Offer the best quality of Coffee-based products along with a lively ambience’ so as to help their customers unwind from their busy schedules so that they can take some time out to savour a cup of coffee along with their near and dear ones. In one line their famous marketing tagline sums it all up – ‘A lot can happen over Coffee’


By,
Vishal Verma
(FT13488)


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