submitted by: ansup babu kumaresh roy sadaseeb choudhury somdeep sen
DESCRIPTION
The Indian RTD tea and coffee industry stands at an estimated Rs 1,100 crore The market is expected to grow to a whopping Rs 2,250 crore by 2017 Factors triggering growth: - Improving disposable income - Changing life styles - Increasing influence of western culture - Younger population Top three players: Cafe Coffee Day, Barista and Costa Coffee The competition in the market is likely to heat up with the entry Starbucks Source: Zee BusinessTRANSCRIPT
Submitted BY: Ansup Babu
Kumaresh Roy Sadaseeb Choudhury
Somdeep Sen
MARKET RESEARCH REPORT
AGENDA About The Industry
Brief of the Company
Purpose of the study
Hypotheses
Methodology
Limitations
Analysis and Findings
SWOT Analysis
Conclusions
Annexure
ABOUT THE INDUSTRY The Indian RTD tea and coffee industry stands at an estimated Rs 1,100 crore
The market is expected to grow to a whopping Rs 2,250 crore by 2017
Factors triggering growth:
- Improving disposable income
- Changing life styles
- Increasing influence of western culture
- Younger population
Top three players: Cafe Coffee Day, Barista and Costa Coffee
The competition in the market is likely to heat up with the entry Starbucks
Source: Zee Business
BRIEF OF THE COMPANYYear of Establishment 1996
Founder V. G. Siddhartha
Revenue US$450 million (As on 2012)
No. of stores 1481
Products Food & Beverage
Price Differential Pricing Strategy
Distribution Strategically located at six verticals
Promotion Sponsorships, collaborations, sales promotion, Cafe Coffee Day Card
Other Merchandize Coffee Makers, Coffee Mugs, Men/Women T Shirts, etc.
Other Facts
Market Share: 60% (as on 2012)Follows Backward integrationDoesn’t go for franchisingDivision of the largest coffee conglomerate- ABCTL
Source: Wikipedia & Hindustan times
PURPOSE OF THE STUDY
To find out information about:
Consumer Profile
Brand Recall
Customer visit details
Customer Spending and consumption Pattern
Customer Satisfaction
HYPOTHESES Mean age of the CCD store traffic ranges from 25-35 years
Café Coffee Day is perceived as a place to hang out with friends
Convenience is one the most important factors influencing customer visits
Store Location Hazra: Near Asutosh college
Bhawanipur: Near Forum Camac Street Total Sample
Size
Sample Size Break up 20 15 15 50
Sample Size
Sampling Method
Convenience Sampling
Data Collection Method
• People visiting CCD was interviewed through questionnaires to collect the primary data
• Internet had been used to collect secondary data
METHODOLOGY
LIMITATIONS
The study has been conducted over a very short duration
Due to the short duration
-The sample size is very small
- Non Probabilistic method of sampling has been used
Hence the findings should be taken as indicative
ANALYSIS & FINDINGS
DEMOGRAPHICS
Mean age of the respondents: 26 years
52% of the respondents are female
50% of the respondents are students; rest are working professionals
All the respondents have household hold income of Rs. 28,000 or more per month
16-24 25-33 >33
10
20
30
40
50
46 44
10
Age (%)
60%
40%
Household income per month in Rs
28-34K >34K
BRAND RECALLRespondents (%) TOM Recall order
961. Café Coffee Day2. Barista3. Can't Say
41. Starbucks2. Café Coffee Day3. Barista
All the respondents mentioned Café Coffee Day as well as Barista
4% of the respondents mentioned Starbucks- the newest entrant in the Indian coffee retailing
PURPOSE OF VISIT
Student Working Professional
10
20
30
40
50
42 40
846
Purppose of visit(%)
To hang out with friends To consume food and hang out Others
Value df P Value
Pearson Chi-Square 3.691 2 0.158
82% of the respondents look at CCD as a place to hang out
As per Chi-Square value there is no association between occupation & purpose of visit
FREQUENCY OF VISIT
Students prefer to visit the outlets at least once a week
The ‘once in a two weeks’ bracket is popular among the working professionals
Student Working Professional0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
26
48
30
16
Once in a monthOnce in two Weeks>3 times in a week1-3times in a week
Occupation
Freq
uenc
y of
Visi
t %
PREFERRED DAYS OF VISIT
76% of the respondents prefer to visit the shop on weekdays
Student Working Professional
50
2624
Weekdays Weekends
Occupation
Pref
erre
d Da
ys (%
)
MOST FREQUENTLY VISITED BRAND
Brands Mean Degree of Frequency
Café Coffee Day 3.9 High
Barista 0.68 Least
Costa Coffee 0 -
Others 0 -
CCD has emerged as the most frequently visited brand
Only 42% of the people have visited Barista
None of the respondents have visited other competitor brand like Costa Coffee
FACTORS INFLUENCING VISIT
Convenience & quality of service at a coffee shop has emerged as the most important factors
It is a tribute to the strategically located outlets and highly skilled manpower of CCD
Factors Mean Score Degree of importance
Convenience 5.00 Most
Quality of Service 4.60 Most
Availability of preferred item(s) 4.06 High
Ambience 2.80 Moderate
PREFERRED ITEMS
Student Working Professional
10
20
30
40
50
8 6
6 6
36 38
Combo DealsFoodBeverages
Occupation
Pref
erre
d Ite
ms %
df P Value
Pearson Chi-Square 2 0.774
74% of the respondents have shown preference for combo deals
As per chi-square test, such preference is same across both set of occupations
SPENDING PATTERN
28-34K >35
20
40
60
2 4
54
20
4
16>200 (Rs)100-200(Rs)50-100(Rs)
Household income per month
Amou
nt S
pend
%
74% of the respondents prefer to spend Rs. 100-200 during their visit
CUSTOMER SATISFACTIONBarista Café Coffee Day
Factors Mean Satisfaction Level Mean Satisfaction Level
Quality of Items 4.4 Very High 4.4 Very High
Availability of preferred items 4.3 Very High 4.4 Very High
Service Delivery Time 4.0 Very High 4.4 Very High
Staff Behavior 4.4 Very High 4.3 Very High
Value for Money 2.0 Low 4.2 High
Store Ambience 4.4 Very High 4.1 High
Overall Infrastructure 4.3 Very High 4.3 Very High
•Customers are highly satisfied with the offerings of CCD & Barista
•Value for money is an emerged as a difference maker
•Customers perceive CCD has a quality brand that provides value for money
SWOT ANALYSISStrength
High degree of brand awareness Strong distribution network Cost reduction through backward integration Wide variety of product Excellent service Strong presence over the digital space
Weakness• Absence of franchising may deter expansion
activities
Opportunities High growth potential of the RTD market Merchandizing Tapping the smaller towns Focusing on the food segment Globalization
Threats•Presence of strong competition (direct & generic )•Entry of Starbucks
CONCLUSIONS High growth potential of he RTD tea and coffee market
Target Group: Youth in the middle and higher income
Perceived CCD as a place to hang out
Most frequent visitors: The 16-24 age bracket
Most important factor influencing visit: Convenience
Perceived as:
-Place to hang out
- Quality & value for money brand
ANNEXURE In cases where 5-point rating scale has been used, the interval for the range in
measuring the parameters has been calculated as : (5-1) / 5 = 0.8 , as below
Score Degree of
1 to 1.8 Least
1.81 to 2.6 Low
2.61 to 3.4 Average
3.41 to 4.2 High
Above 4.2 Most
THANK YOU