Research Project on Launch of Café shop

Presented by:•Vaibhav S

Flow of the Presentation

• Introduction• Growth of Industry in India

• Major Players in India• Objective

• Methodology• Sample design and sample size

• Limitation• Research finding and analysis

• Recommendation

• Annexure 1- TOMA– Annexure 1.1-Consumption and ordering pattern– Annexure 1.2-Fequently visit of consumer in Coffee Shop

• Annexure 2- Opportunity Matrix• Annexure 3- Demographics related analysis

– Annexure 3.1-TOMA with Gender– Annexure 3.2-TOMA with Age Group– Annexure 3.3-TOMA with Occupation– Annexure 3.4-TOMA with Income

• Annexure 4- Spending behavior – Annexure 4.1-General Category– Annexure 4.2-Occupation Category

• Annexure 5- Preferences of coffee shop• Annexure 6- Deciding factors for visit

Annexure

Introduction

• Café industry is currently one of the biggest and fastest growing sector.

• Industry consist of:– Individual Café– Hotel Café– Retail Café

Growth of Café industry in India

• Coffee- first seat in South India.• In order to spread, coffee house emerged at various place.

Served in places for lawyers and the educated class to hold discussions.

• Raayars mess, Chennai established in 1940, oldest coffee houses in South India which servers first class filter coffee.

• Five star hotel started opening coffee shops which carted high end customers. The drink has now become more of a concept than merely a drink

Contd….

• Over a decade number of café owners tried to westernize the taste of coffee in contrast to the filter coffee.

• Large retail chain like Barista, Café coffee Day etc. opened, concept is not merely selling coffee but about developing the national brand.

• Coffee Market in India:– Branded coffee 53%– Unbranded 40%– Café 7%

Major Players of the Café Industry in India

• Café Coffee Day- CCD pioneered the café concept in India in 1996. The largest cafe retail chain in India, with 1000 cafes in 141 cities and many in its base, Bangalore

• Barista- Established in India in 1999. The chain has 200 stores in India

• Mocha- Opened in Mumbai in 2001. 20 units out of which 12 are franchised.

• Costa Coffee- UK based café chain, entered in India in 2005. Around 36 stores in India.

Objective

• Main ObjectiveFeasibility analysis for the launch of new coffee shop

• Sub-ObjectiveCustomer perception about the coffee.

Relative market share of existing coffee shop.To understand customer consumption pattern of the coffee.

Ordering pattern at coffee shop.Opportunity matrix.

Customer feedback and recommendation for positioning of the new brand.

Methodology

• The methods used for data collection were primary as well as secondary.

• Primary Data collection– Quantitative analysis- Stratified Random Sampling from different age

groups and different occupation.

• Secondary Data collection- Websites and even articles from newspapers available on the internet.

• The research design that was followed was of Exploratory and Descriptive Research.

Sample Design and Sample Size

• Sample Size: Quantitative data collected through survey varied from– Different Income Group– Different Age Group– Different Occupation

• Sample Size: 150 was drawn on the basis of those who avail the services of coffee shops.

• All the respondents are from Mumbai.

Limitation

• The survey done on the consumers are only from Mumbai, so the report does not show the preferences of the consumers all through out India.

• Findings of the data is restricted mostly to Central and Harbor Mumbai.

1. TOMA (Annexure 1)

Research Findings and Analysis

Coffee Shop Percent

CCD55.7

barista30.9

Costa Coffee10.1

others3.4

Total100.0

Consumption Percent

2-3 times50.0

0-1 times49.3

4-5 times.7

Total100.0

Consumption Pattern

Frequency Percent

coffee 136 90.7

cold drink/ milk shakes/ iced tea

7 4.7

snacks 4 2.7

tea 1 .7

others 1 .7

Total 149 99.3

Missing

System1 .7

Total 150 100.0

Ordering Pattern

• Annexure 1.1

• Annexure 1.2

Visit Frequency Percent

once in a month40 26.7

fortnightly39 26.0

2-3 times in a week38 25.3

once in a week29 19.3

never4 2.7

Total150 100.0

2. OPPORTUNITY MATRIX (Annexure 2)

Opportunity Matrix

Parameter Importance Satisfaction I-S Opportunity Lost matrix I+(I-S))

Offers 3.2 3.4467 0 3.2

Customer Service3.7667

3.3067 0.46 4.2267

Price3.68

3.0867 0.5933 4.2733

Quality 4.5267 3.82 0.7067 5.2334

Fragrance3.98

3.7733 0.2067 4.1867

Variety3.68

3.6133 0.0667 3.7467

Ambience4.08

3.72 0.36 4.44

Availability3.7

3.5267 0.1733 3.8733

Overall Service3.6067

3.5933 0.0134 3.6201

Location3.9333

3.6467 0.2866 4.2199

3. DEMOGRAPHICS RELATED ANALYSIS

• Gender (Annexure 3.1)

• Annexure 3.1

Gender

TotalMale Female

CCD Count 45 38 83

% within which brand name you recollect when we say Coffee Shop 54.2% 45.8% 100.0%

barista Count 11 35 46

% within which brand name you recollect when we say Coffee Shop 23.9% 76.1% 100.0%

Costa Coffee Count 15 0 15

% within which brand name you recollect when we say Coffee Shop 100.0% .0% 100.0%

others Count 2 3 5

% within which brand name you recollect when we say Coffee Shop 40.0% 60.0% 100.0%

• TOMA with age group (Annexure 3.2)

• Annexure 3.2

Age

less than 18 18-25 26-35 36-45 45 and above

CCD Count 4 48 25 5 1

% of Total 2.7% 32.2% 16.8% 3.4% .7%

barista Count 3 25 18 0 0

% of Total 2.0% 16.8% 12.1% .0% .0%

Costa Coffee Count 0 15 0 0 0

% of Total .0% 10.1% .0% .0% .0%

others Count 0 0 3 1 1

% of Total .0% .0% 2.0% .7% .7%

• TOMA with Occupation (Annexure 3.3)

• Annexure 3.2

Profession

Student HousewifeProfessional

s Business ServiceUnemploye

d

CCD Count 6 2 15 12 47 1

% of Total 4.0% 1.3% 10.1% 8.1% 31.5% .7%

barista Count 6 3 6 8 23 0

% of Total 4.0% 2.0% 4.0% 5.4% 15.4% .0%

Costa Coffee Count 0 0 0 5 10 0

% of Total .0% .0% .0% 3.4% 6.7% .0%

others Count 0 1 2 0 2 0

% of Total .0% .7% 1.3% .0% 1.3% .0%

• TOMA with Income Group (Annexure 3.4)

• Annexure 3.4

Monthly income

10,000-25,000 25,000-45,000 45,000-60,000more then

60,000

CCD Count 13 28 17 25

% of Total 8.7% 18.8% 11.4% 16.8%

barista Count 8 11 14 13

% of Total 5.4% 7.4% 9.4% 8.7%

Costa Coffee Count 4 11 0 0

% of Total 2.7% 7.4% .0% .0%

others Count 3 0 1 1

% of Total 2.0% .0% .7% .7%

4. SPENDING BEHAVIOUR

• General category (Annexure 4.1)

Frequency Percent

Valid 0-10037 24.7

100-20056 37.3

200-30046 30.7

300+11 7.3

Total150 100.0

• Occupation category (Annexure 4.2)

How much do you spend

Total0-100 100-200 200-300 300+

Percentage (%)

Profession

Count

Unemployed 0 1 0 0 1 0.67

Service 22 36 16 8 82 54.67

Business 0 3 20 2 25 16.67

Professionals 15 3 5 1 24 16

Housewife 0 5 1 0 6 4

Student 0 8 4 0 12 8

Total 37 56 46 11 150

5. Preference of Coffee Shop (Annexure 5)

Frequency Percent

Valid CCD 66 44.0

Barista 24 16.0

Mocha 4 2.7

Costa Coffee 9 6.0

others 2 1.3

Total 105 70.0

Missing System 45 30.0

Total 150 100.0

6. Criteria that affects the choice (Annexure 6)

Frequency Percent

Valid Environment65 43.3

Price40 26.7

Quality35 23.3

Service8 5.3

Total148 98.7

Missing System2 1.3

Total150 100.0

Recommendation• Ambience and Quality are the key parameter that affect the

choice of Coffee Shop. Where Ambience accounts for 4.44 and Quality accounts for 5.23 (Annexure 6).

• Most of the consumers only order coffee while they visit coffee shops, so awareness to be made about other beverages and snacks.(Annexure 1.1)

• Availability of snacks.• Right mix of advertisement.• Introduction of “Happy Hours” and privileged cards for regular

customers. • Tie-ups with companies for bulk offers on vouchers. (Annexure

4.2)

THANK YOU!!!!